{"id":12980,"date":"2016-11-04T17:16:28","date_gmt":"2016-11-04T21:16:28","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/from-cocoa-beans-to-coffee-berries-how-nestle-is-preparing-for-climate-change\/"},"modified":"2016-11-04T17:16:28","modified_gmt":"2016-11-04T21:16:28","slug":"from-cocoa-beans-to-coffee-berries-how-nestle-is-preparing-for-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/from-cocoa-beans-to-coffee-berries-how-nestle-is-preparing-for-climate-change\/","title":{"rendered":"From Cocoa Beans to Coffee Berries: How Nestl\u00e9 is Preparing for Climate Change"},"content":{"rendered":"

From Cocoa Beans to Coffee Berries: How Nestl<\/strong>\u00e9<\/strong> is Preparing for Climate Change<\/strong><\/p>\n

\u201cGood Food, Good Life\u201d is Nestl\u00e9\u2019s promise to its customers, yet that promise may soon be challenged by the adverse impacts of climate change on this Swiss conglomerate\u2019s suppliers. \u00a0<\/strong><\/p>\n

Less Land + Greater Demand = Supply Chain Problems<\/strong><\/p>\n

Lagunes and Sud-Comoe in Ivory Coast, two key areas of cocoa production, are projected to be unsuitable for production by 2050[1]<\/a>; climate change is also expected to halve the areas of land suitable for coffee production within this same timeframe.[2]<\/a> As the world\u2019s leading global food and beverage company, and as a purchaser of 10%+ of the world\u2019s coffee and cocoa stock,[3]<\/a>,[4]<\/a>,[5]<\/a><\/sup> Nestl\u00e9\u2019s supply chain is highly susceptible to the impacts of climate change. From greenhouse gas emissions to water usage, Nestl\u00e9\u2019s expansive product lines touch every aspect of climate change.<\/p>\n

Cocoa and coffee are just two out of dozens if not hundreds of commodities Nestl\u00e9 sources from local suppliers. In agriculture, production tends to be concentrated among a few countries, as often crops require very specific environmental conditions. Ivory Coast and Ghana collectively produce over half of the world\u2019s cocoa crop, while Brazil and Vietnam combine to represent half of the world\u2019s coffee crop.[6]<\/a> Tropical areas such as these regions are particularly susceptible to climate change, as a positive feedback loop has led to increased sensitivity to carbon release per degree increase in temperature.[7]<\/a> With each degree increase in average tropical temperature, rainforests are releasing two billion additional tons of carbon per year when compared to the 1960s or 1970s[8]<\/a>, roughly the same amount of carbon absorbed by the entire Amazon rain forest each year.[9]<\/a> The concentration of production areas and increased impacts of climate change in tropical regions poses serious risks for Nestl\u00e9, particularly as the global population continues to increase, inherently building demand for agricultural commodity products.<\/p>\n

Nestl\u00e9\u2019s Mitigation & Adaptation Efforts:<\/strong><\/p>\n