Weekly Roundup - Cost of Climate Change, China´s EV Industry and Apple´s Strategic Shift

A study by researchers from Potsdam and Berlin, published in Nature, projects that climate change could cost the global economy $38 trillion annually by 2049, based on data analysis from over 1,600 regions over 40 years. This cost, which could range from $19 trillion to $59 trillion, is attributed to the impacts of temperature and rainfall changes on agriculture, labor productivity, and infrastructure. The study indicates that due to past emissions, a 19% income reduction in the global economy is already inevitable within the next 26 years, and costs could escalate with increased weather extremes. It highlights that the financial damages from inaction vastly exceed the $6 trillion required to meet the Paris Climate Agreement goals. The research emphasizes the disproportionate impact on tropical countries, which are less responsible for and less capable of adapting to climate change, underlining a significant equity issue. This situation complicates global negotiations, with poorer countries calling for wealthier nations to bear more adaptation costs. The upcoming COP29 summit in Baku, Azerbaijan, is expected to focus on climate financing, addressing these disparities. The study serves as a critical reminder of the economic and ethical imperatives for global action on climate change.

During his visit to China, German Chancellor Olaf Scholz expressed concerns about the overproduction of electric vehicles, mirroring U.S. Treasury Secretary Janet Yellen's earlier comments, while cautioning against protectionism amid the EU’s investigation into Chinese electric-car imports. Scholz emphasized the need for a balanced approach to address competitive challenges without resorting to protectionism, recognizing China's significant role in the global automotive market, especially for German companies like Volkswagen, BMW, and Mercedes-Benz. He highlighted the efficiency and innovation of China's EV industry, noting the strategic business practices and technological advancements of companies like BYD and CATL. Scholz's discussions with President Xi Jinping stressed the importance of cooperation and fair competition, underscoring the mutual benefits of engaging with China's rapidly evolving automotive sector.

Apple has shifted its strategic focus towards Southeast Asia, stepping away from its long-standing emphasis on China due to sales declines and supply chain risks. CEO Tim Cook's recent five-day tour of Vietnam, Indonesia, and Singapore marks an effort to explore new markets and diversify the company's supply chain. Southeast Asia, currently a small but rapidly growing part of the iPhone market, is seen as a high-end market with potential for future growth. Cook's visit highlighted manufacturing and investment opportunities, including increasing spending on Vietnamese suppliers, considering manufacturing facilities in Indonesia, and expanding Apple's campus in Singapore. This pivot towards Southeast Asia aims at reducing dependency on any single market or manufacturing hub, reflecting a broader trend among global companies towards supply chain diversification.

Read more on latest highlights

• GCC countries need to improve supply chain management to support industrial growth, says report
• Tesla laying off more than 10% of staff globally as sales fall
• Plastics industry heats world four times as much as air travel, report finds
• German economy brightening slightly, but in its fundamentals still weak
• Greek economy surges after decade of pain
• UK drug shortages swell amid Brexit supply woes, think-tank data shows
• Why the world of chocolate is in crisis
• Volkswagen to invest $210 mln in South African plant

Dive deep into research

"Hybrid machine learning-metaheuristic model for sustainable agri-food production and supply chain planning under water scarcity" by Mobina Mousapour Mamoudan, Ali Jafari, Zahra Mohammadnazari, Mohammad Mahdi Nasiri, Maziar Yazdani (2023)

"Towards a European supply chain for CO2capture, utilization, and storage by mineralization: Insights from cost-optimal design" by Hesam Ostovari, Luis Kuhrmann, Fabian Mayer, Hannah Minten, Andre Bardow (2023)

Events

DDX Innovation & UX Conference

When: 11. May 2024

Where: Munich, Germany

What: The DDX Innovation & UX Conference is a premier event that stands at the intersection of innovative technology and user experience design. This conference is a gathering spot for a diverse group of professionals ranging from designers and strategists to thinkers and entrepreneurs who are passionate about bridging the gap between cutting-edge technology and the core of what really matters: the people. The event promises a day filled with insights from global speakers representing big brands, growing startups, and innovative consultancies, all sharing their expertise and visions for the future of design and innovation.

DELIVER EUROPE

When: 05. - 06. June 2024

Where: Amsterdam, Netherlands

What: DELIVER Europe is a premier matchmaking event for the retail and commerce community, focusing on supply chain innovation. This event will feature over 1,000 top retail and commerce leaders engaging in curated 1-2-1 meetings, powered by a fully inclusive buyer programme designed to connect participants with innovative, sustainability-led solutions. With a content-led approach, DELIVER Europe promises insightful sessions from influential commerce leaders on topics like Tech Retail Revolution and Sustainability Spotlight, without 'pay to play' keynote sessions, ensuring authentic and valuable learning opportunities.

Electric & Hybrid Vehicle Technology Expo

When: 18. - 20. June 2024

Where: Stuttgart, Germany

What: Meet battery manufacturers, suppliers, engineers, thought leaders and decision-makers for a conference and battery tech expo focused on the latest developments in the advanced battery and automotive industries.