Diminishing crop yields: <\/b><\/strong>Climate change has potential to reduce crop yields which will challenge Whole Foods to maintain its diverse range of quality products.\u00a0 With global temperatures predicted to potentially increase 3 degrees C by 2050, Whole Foods will face declining crop yields and reduced variety, particularly in products from areas most likely to be impacted such as South America [3].<\/p>\n Disrupted distribution: <\/b><\/strong>Whole Foods relies not only on its producers, but also on its distribution network to deliver its products from around the globe to its stores. With only 24% of its products sourced locally, the majority of products require a complex network of domestic and international producers and distributors [1].\u00a0 Flooding is one specific problem that damages roads and warehouses, creating backlogs and spoilage [5].\u00a0 In the US, where a majority of Whole Foods stores are located, extreme rain and floods will be further exacerbated by climate change, challenging Whole Foods\u2019 distributors to deliver its products as forecasted [6].<\/p>\n Costly regulation: <\/b><\/strong>With increasing scrutiny on food waste, the USDA and the Environmental Protection Agency (EPA) have called for a 50% reduction in U.S. food waste by 2030 [7]. \u00a0Additional costs could also impact several components of Whole Foods supply chain if a carbon tax were to be enacted as US states push for reform or impose higher oil and gas taxes [8].<\/p>\n What is Whole Foods currently doing to prepare for these climate change challenges?<\/i><\/em><\/p>\n Diversifying its producers: <\/b><\/strong>Recognizing the benefits of sourcing products from a diverse set of agricultural producers, Whole Foods has committed $20 million in low interest rate loans and mentorship programs to local producers.\u00a0 Aside from goodwill, this initiative expands the pipeline of products Whole Foods can access, which may mitigate overall declining crop yield by giving them access to a more diversified set of producers.<\/p>\n Optimized its supply chain management: <\/b><\/strong>Whole Foods is combating potential distribution disruptions by upgrading its supply chain management system to a \u201csingle-view\u201d cloud-based software, expected to save $300 million by 2017 [10]. \u00a0This system creates short term efficiencies and also helps Whole Foods better navigate climate change challenges to distribution, such as flooding, by increasing transparency through the entire supply chain (e.g., diminishing the bullwhip effect).<\/p>\n Reduced its food waste and fossil fuel reliance: <\/b><\/strong>Whole foods publicly states its commitment to aid in reducing food waste in line with the USDA\u2019s target by 2030 [7].\u00a0 Stores have developed a process for packaging, refrigerating and donating a wider range of foods, including items from their buffets stations. As an example, in the first half of 2016, stores in the Southeast U.S. donated more than 1.4 million pounds of food to Food Donation Connection [7].\u00a0 Turning to the sustainability of its energy needs, Whole Foods has purchased an increasing amount of energy from green energy sources, recently ranking #3 of the EPA\u2019s largest green power purchasers [11].<\/p>\n What more can Whole Foods do?\u00a0 <\/i><\/em><\/p>\n As the industry leader, Whole Foods Market is best positioned to set the standard of how natural and organic food producers should respond to climate change.\u00a0 However, as an organization, Whole Foods has not clearly articulated the urgency in tackling climate change.\u00a0 In fact, Whole Foods CEO, John Mackey, claimed as recently as 2013 that climate change is \u201cperfectly natural and not necessarily bad\u201d [12].<\/p>\n As a start, Whole Foods can more actively acknowledge the impacts of climate change and proudly communicate how their strategy incorporates the challenges they will face.\u00a0 One way to show this commitment could be joining the ranks of corporate giants such as General Mills and Starbucks in Ceres\u2019 Business for Innovative Climate & Energy Policy group that lobbies for policies that counter the risks posed by climate change [13].<\/p>\n Whole Foods should also commit to change with specific, transparent targets rather than general commitments with no concrete plans.\u00a0 For example, there are no clear plans or forecasts for how specific product lines will change due to diminished crop yields.\u00a0 There are no deadlines for transitioning out of plant products.\u00a0 Furthermore, stores have no targets to attain environmental targets [14]<\/p>\n While some action has been taken since John Mackey\u2019s comments in 2013, Whole Foods must remain wholly committed to taking a leadership role in preparing for and mitigating climate change.<\/p>\n Word count: 790<\/p>\n [1] Whole Foods Market, 2015 Annual Report, http:\/\/s21.q4cdn.com\/118642233\/files\/doc_financials\/2015\/Annual\/2015-WFM-Annual-Report.pdf<\/a>, accessed November 2016.<\/p>\n [2] Bloomberg, \u201cWhole Foods Is Ready to Convince You That It Can Do Cheaper,\u201d May 2016, http:\/\/www.bloomberg.com\/news\/articles\/2016-05-18\/whole-foods-seeks-to-shed-whole-paycheck-rap-with-new-format<\/a>, accessed November 2016.<\/p>\n [3] United Nations Subsidiary Body for Scientific and Technological Advice, \u201cClimate adaptation and agriculture: Solutions to successful national adoption plans,\u201d June 2014, https:\/\/cgspace.cgiar.org\/rest\/bitstreams\/32118\/retrieve<\/a>, accessed November 2016.<\/p>\n [4] Earth Island Journal. \u201cClimate Change Poses Serious Threats to Food Distribution,\u201d March 2015, http:\/\/www.earthisland.org\/journal\/index.php\/elist\/eListRead\/climate_change_poses_serious_threats_to_food_distribution\/<\/a>, accessed November 2016.<\/p>\n [5] Food and Agricultural Organization of the United Nations, \u201cImpacts of Climate Change on Food Security,\u201d 2012, http:\/\/www.fao.org\/elearning\/course\/FCC\/EN\/pdf\/learnernotes0854.pdf<\/a>, accessed November 2016.<\/p>\n [6] Climate Signals, \u201cExtreme rain and floods are consistent with climate change trends,\u201d August 2016, http:\/\/www.climatesignals.org\/headlines\/events\/gulf-storm-august-2016<\/a>, accessed November 2016.<\/p>\n [7] Whole Foods Market Whole Story, \u201cNew approaches to ending food waste,\u201d June 2016, http:\/\/www.wholefoodsmarket.com\/blog\/new-approaches-ending-food-waste<\/a>, accessed November 2016.<\/p>\n [8] Washington Post, \u201cThese could be the first US states to tax carbon \u2013 and give their residents a nice paycheck,\u201d November 2015, https:\/\/www.washingtonpost.com\/news\/energy-environment\/wp\/2015\/11\/10\/these-could-be-the-first-u-s-states-to-tax-carbon-and-give-their-residents-a-nice-paycheck\/<\/a>, accessed November 2016.<\/p>\n [9] Whole Foods Newsroom, \u201cWhole Foods Market reaches $20 million in loans to budding businesses nationwide,\u201d June 2016, http:\/\/media.wholefoodsmarket.com\/news\/whole-foods-market-reaches-20-million-in-loans-to-budding-businesses-nation<\/a>, accessed November 2016.<\/p>\n [10] Diginomica, \u201cWhole Foods is replacing up to 90% of its systems \u2013 strong focus on cloud and data,\u201d June 2016, http:\/\/diginomica.com\/2016\/06\/24\/whole-foods-is-replacing-up-to-90-of-its-systems-strong-focus-on-cloud-and-data\/<\/a>, accessed November 2016.<\/p>\n [11] Environmental Protection Agency, \u201cWhole Foods Market Partners with EPA to Fight Climate Change,\u201d April 2010, https:\/\/yosemite.epa.gov\/opa\/admpress.nsf\/0\/1E2B428CE68825F985257711006A0D4A<\/a>, accessed November 2016.<\/p>\n [12] The Guardian. \u201cWhole Foods CEO: ‘climate change is not necessarily bad,’ https:\/\/www.theguardian.com\/environment\/2013\/jan\/18\/whole-foods-ceo-climate-change-bad<\/a>, accessed November 2016.<\/p>\n [13] Ceres, \u201cBICEP Companies Commit to Climate Action, 2016, https:\/\/www.ceres.org\/bicep<\/a>, accessed November 2016.<\/p>\n![\"climate_and_crop_yields_2\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/climate_and_crop_yields_2.jpg\")
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