By design or default, climate and environmental change will be a transformational driver for the global economy and for businesses around the world in the coming decades. Climate-driven economic changes will also emanate from the response of governments and companies as they implement mitigation and adaptation measures to manage the physical and transition risks stemming from a warming climate. As businesses’ exposure to climate risks is expected to grow, supply chains will increasingly become the focus area for companies and their mitigation and adaptation efforts due to their relative impact on, and exposure to, climate change. However, misguided climate actions, known as maladaptation, could adversely affect workers, local enterprises and communities which together form the backbone of domestic and cross-border supply chains. On the other hand, companies with sustainable and long-term risk management strategies that integrate environmental, economic and social impact governance in their supply chains will be more resilient and better positioned to manage the climate change risks and the impacts that businesses will face to advance a just transition to net-zero and environmentally sustainable economies. The concept of just transition has increasingly gained traction among large companies looking to accelerate the adoption of environmentally and socially responsible business conduct throughout their business operations. At the same time, regulatory developments have recently begun to impose requirements on companies to tackle issues relating to climate change and labour and human rights, with implications for the supply chains of businesses. As industries shift towards a net-zero and climate-resilient economy, a just transition means promoting environmentally sustainable economies in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind. This entails companies embedding principles around social dialogue, labour rights and decent employment into climate risk management strategies to deliver shared benefits for business, workers and communities. Companies also need to engage with affected stakeholders to ensure the adequate management of the impact on the communities surrounding transition of their business operations. Moreover, an open and transparent dialogue will facilitate the inclusion of diverse perspectives, fostering trust and ensuring that the plan meets the various unique needs and aspirations of different stakeholders. The purpose of this business brief is to describe how companies can better manage the convergence of different climate risks that they are exposed to through their supply chains by placing just transition at the centre of their transition planning and risk management strategies and making it a key pillar of overall business management. It highlights recent examples of companies implementing policies and practices to manage the environmental and social impacts of their supply chains. The brief will also discuss the importance of multilateral frameworks, the role of governments and multi-stakeholder collaborations. Finally, the brief offers five recommendations for businesses to improve the sustainability and resilience of their supply chains through a just transition.