(502f) More Haste, Less Speed: Proportionate Supply Chain Risk Management for the Accelerating Hydrogen Economy

The long awaited acceleration of the hydrogen economy is dawning. It is viewed as a necessity in the race to decarbonize industry, heat and transport, amongst other key sectors. Existing hydrogen economy supply chains serving the current markets face the challenge of ramping up to meet future demand. Aside from hydrogen growth, many organizations are increasingly concerned about supply chain risk, not only the traditional supplier issues of late delivery and poor quality but also other risks with security, environmental, social and ethical impacts. Furthermore, hydrogen as an energy vector requires significant safety management to mitigate its potential to cause major accidents. The confluence of increasing demand, major accident hazards associated with hydrogen and concerns of supply chain risks present a significant challenge for those organizations in the hydrogen supply chain. When viewed through the lens of rapid demand acceleration, supply chain risks are magnified by the potential for short-cuts and risk taking. Such risks are exacerbated by the potential set-back in the global decarbonization goal, should a major accident be realized. Formal Supply Chain Risk Management (SCRM) techniques adopting a risk based approach are explored to help mitigate supply chain risks in a proportionate way, reducing supply chain vulnerability, ensuring continuity if risks occur and increasing value within the supply chain through improved performance. Crucial attributes of successful SCRM are considered to be: application of good governance, early supplier engagement, proportionate assurance levels based on risk, supply chain mapping, monitoring of risk events/risk event pre-cursors and risk register maintenance.