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Despite widespread recognition of climate-change risks, most companies are at
the early stages of developing strategies that explicitly address CSA. Interviews
revealed most companies address select pillars of CSA but rarely all three in a cohesive manner. For example, corporate sourcing and sustainability programs usually
seek to increase productivity (the first pillar of CSA) via training, inputs, credit and
efforts to strengthen community-level institutions. Multinational companies often
have policies focused on reducing greenhouse gas emissions (the second pillar) in
facilities under their direct control. Yet companies rarely reported efforts related to
adaptation (the third pillar), in large part because adaptation action requires climate
data that is more detailed than what is commonly available (Private Sector
Consultation 2018).
Most companies interviewed explained that, as they make their first steps toward
deepening their engagement in CSA, they would like the research community to
clarify the key differences between CSA practices and long-promoted “good agricultural practices”. All companies interviewed positioned their interest in CSA as an
extension of both ongoing risk-management practice and sustainability programs
focused on socio-economic development, environmental conservation and supply
security through good agricultural practices. The companies seek to make their
existing efforts more climate-smart rather than implementing new, isolated programs (Private Sector Consultation 2018).
The companies also expressed interest in particular types of data that would help
inform their climate strategy. With some exceptions, most companies sought (i)
granular (i.e., generally subnational) climate-risk data to diagnose and monitor their
supply-chain and operational risks; (ii) guidance on specific, practical technologies
to build resilience; (iii) more robust quantification of the economic impacts of climate change across producing regions; and (iv) risk projections for companion and/
or alternative crops in regions facing diversification or transition. The companies
called for this information to be more accessible: They would like researchers to
provide more user-friendly data, such as brief fact sheets available through a central
portal rather than academic papers housed behind a paywall (Private Sector
Consultation 2018).
What does climate action in the supply chain look like?
Some food and beverage companies are already moving from risk assessment
to action. The trader Olam, for example, committed to buy climate-smart
cocoa, which secured market access for farmers, and to pay premiums for
Rainforest Alliance-certified cocoa. Similarly, coffee companies like Coop
Coffee, JDE, Keurig Green Mountain, Lavazza and Nestlé are promoting
CSA across their supply chains through training programs such as the
Initiative for Coffee & Climate from the NGO Hanns R. Neumann Stiftung,
or finance initiatives like the Coffee Farmer Resilience Initiative and the Rust
Relief Fund.
19 One Size Does Not Fit All: Private-Sector Perspectives on Climate Change…
Despite widespread recognition of climate-change risks, most companies are at
the early stages of developing strategies that explicitly address CSA. Interviews
revealed most companies address select pillars of CSA but rarely all three in a cohesive manner. For example, corporate sourcing and sustainability programs usually
seek to increase productivity (the first pillar of CSA) via training, inputs, credit and
efforts to strengthen community-level institutions. Multinational companies often
have policies focused on reducing greenhouse gas emissions (the second pillar) in
facilities under their direct control. Yet companies rarely reported efforts related to
adaptation (the third pillar), in large part because adaptation action requires climate
data that is more detailed than what is commonly available (Private Sector
Consultation 2018).
Most companies interviewed explained that, as they make their first steps toward
deepening their engagement in CSA, they would like the research community to
clarify the key differences between CSA practices and long-promoted “good agricultural practices”. All companies interviewed positioned their interest in CSA as an
extension of both ongoing risk-management practice and sustainability programs
focused on socio-economic development, environmental conservation and supply
security through good agricultural practices. The companies seek to make their
existing efforts more climate-smart rather than implementing new, isolated programs (Private Sector Consultation 2018).
The companies also expressed interest in particular types of data that would help
inform their climate strategy. With some exceptions, most companies sought (i)
granular (i.e., generally subnational) climate-risk data to diagnose and monitor their
supply-chain and operational risks; (ii) guidance on specific, practical technologies
to build resilience; (iii) more robust quantification of the economic impacts of climate change across producing regions; and (iv) risk projections for companion and/
or alternative crops in regions facing diversification or transition. The companies
called for this information to be more accessible: They would like researchers to
provide more user-friendly data, such as brief fact sheets available through a central
portal rather than academic papers housed behind a paywall (Private Sector
Consultation 2018).
What does climate action in the supply chain look like?
Some food and beverage companies are already moving from risk assessment
to action. The trader Olam, for example, committed to buy climate-smart
cocoa, which secured market access for farmers, and to pay premiums for
Rainforest Alliance-certified cocoa. Similarly, coffee companies like Coop
Coffee, JDE, Keurig Green Mountain, Lavazza and Nestlé are promoting
CSA across their supply chains through training programs such as the
Initiative for Coffee & Climate from the NGO Hanns R. Neumann Stiftung,
or finance initiatives like the Coffee Farmer Resilience Initiative and the Rust
Relief Fund.
19 One Size Does Not Fit All: Private-Sector Perspectives on Climate Change…