WARREN, N.J., Dec. 1, 2015 /PRNewswire/ -- Nearly two-thirds (61%) of clean tech companies experienced a supply chain disruption in the past three years, and in the vast majority of cases (84%) the event had a material impact on the bottom line, according to the 2015 Global Cleantech Risk Survey.
Seventy-five percent of the firms that source products from China had a supply chain disruption.
Conducted by the Chubb Group of Insurance Companies and Cleantech Group, the online survey of 300 clean tech executives worldwide also found that supply chain disruptions resulted in delayed deliveries (69%), erosion of profit margins (28%), brand/reputation damage (27%) and reduced revenue (26%).
"As our survey confirmed, clean tech companies continue to innovate and expand their global footprint to grow sales, reduce expenses and achieve other benefits – but sometimes without fully appreciating the potential risks," said Sheeraz Haji, chief executive officer, Cleantech Group.
Eighty percent of survey respondents either source or sell products in at least one country beyond their homeland; nearly one-half (40%) of them are doing so in China.
"Operating beyond borders can be tricky," noted Amy Ingram, vice president and worldwide clean tech manager for Chubb. "Clean tech companies should consider implementing greater measures to mitigate their vulnerability to supply chain disruptions."
Although clean tech companies employ a variety of supply chain risk mitigation practices, they put some of the best practices in place only infrequently. Only 23% track product shipments and even fewer purchase insurance (11%) and ensure that suppliers have business interruption plans (11%). In addition, 70% of clean tech companies do not have a written supply chain disruption plan.
Since 1882, members of the Chubb Group of Insurance Companies have provided property and casualty insurance products to customers around the globe. These products are offered through a worldwide network of independent agents and brokers. The Chubb Group of Insurance Companies is known for financial strength, underwriting and loss-control expertise, tailoring products for the needs of high-net-worth individuals and commercial customers in niche markets and select industry segments, and outstanding claim service.
The Chubb Group of Insurance Companies is the marketing term used to describe several separately incorporated insurance companies under the common ownership of The Chubb Corporation. The Chubb Corporation is listed on the New York Stock Exchange (NYSE: CB) and, together with its subsidiaries, employs approximately 10,000 people throughout North America, Europe, Latin America, Asia and Australia. For more information regarding The Chubb Corporation, including a listing of the insurers in the Chubb Group of Insurance Companies, visit www.chubb.com.
About Cleantech Group (CTG) CTG helps clients accelerate sustainable innovation. The company's i3 market intelligence platform, which tracks over $7 billion of deal flow annually across 24,000 clean tech companies, allows subscribers to find, vet, and connect with entrepreneurs—efficiently building an innovation pipeline. Cleantech Forums bring the i3 platform to life by convening thought leaders and innovators around diverse themes in innovation. CTG's Advisory Services leverage expertise in designing and executing corporate strategies for sustainable growth and innovation sourcing. Details at cleantech.com and i3connect.com.
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SOURCE Chubb Group of Insurance Companies