  {"id":14116,"date":"2016-11-04T18:01:28","date_gmt":"2016-11-04T22:01:28","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/a-melting-world-ben-jerrys-in-the-age-of-climate-change\/"},"modified":"2016-11-04T18:09:25","modified_gmt":"2016-11-04T22:09:25","slug":"a-melting-world-ben-jerrys-in-the-age-of-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-melting-world-ben-jerrys-in-the-age-of-climate-change\/","title":{"rendered":"A Melting World: Ben &amp; Jerry\u2019s in the Age of Climate Change"},"content":{"rendered":"<p><strong><em>Save Our Swirled<\/em><\/strong><\/p>\n<p><em>Half Baked<\/em>.\u00a0 <em>Cherry Garcia<\/em>.\u00a0 <em>Phish Food<\/em>.\u00a0 Are you hungry yet?\u00a0 For the last 38 years, Ben &amp; Jerry\u2019s has been known for its premium ice creams.\u00a0 It\u2019s also been a recognized early-mover in corporate social responsibility<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> with a mission statement incorporating sustainability.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/3partMissnBox2015-piechart.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-14035 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/3partMissnBox2015-piechart-300x300.png\" alt=\"3partmissnbox2015-piechart\" width=\"300\" height=\"300\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/3partMissnBox2015-piechart-300x300.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/3partMissnBox2015-piechart-150x150.png 150w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/3partMissnBox2015-piechart.png 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a><\/p>\n<p>Climate change has been one key focus area for the company in recent years.\u00a0 In fact, the company released a <em>Save Our Swirled<\/em> flavor and an advocacy campaign to inspire their fans to push for climate change action.<\/p>\n<p style=\"text-align: center\"><iframe loading=\"lazy\" title=\"Join The Climate Movement! | Ben &amp; Jerry&#039;s\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/UkdYxPFuG-k?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong><em>Is CSR the Only Reason Ben &amp; Jerry\u2019s Cares About Climate Change?<\/em><\/strong><\/p>\n<p><u>No.<\/u>\u00a0 As the ingredients in its ice cream are derived from agricultural sources, climate change threatens to disrupt the company\u2019s supply chain.<\/p>\n<p>Ben &amp; Jerry\u2019s has placed several flavors on its \u201cEndangered Pints List\u201d<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> because they rely upon ingredients such as cocoa and nuts that grow in areas threatened by climate change.\u00a0 For instance, the amount of land suitable for cocoa cultivation in Ghana and Cote d\u2019Ivoire (together representing 53% of world cocoa production) is expected to decrease meaningfully by 2050 due to rising temperatures and drought conditions:<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/suitability.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-14134 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/suitability-300x177.png\" alt=\"suitability\" width=\"347\" height=\"205\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/suitability-300x177.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/suitability-600x355.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/suitability.png 683w\" sizes=\"auto, (max-width: 347px) 100vw, 347px\" \/><\/a><a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/p>\n<p>Other ingredients are indirectly affected, such as dairy.\u00a0 In the US, rising temperatures are expected to drive increased heat stress among cows, lowering milk production by 6% by 2080 if all other factors in milk production stay equal.<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a> While this effect is relatively moderate, it is likely to affect the competitiveness of family farms, which lack sufficient capital to pursue breeding programs or other initiatives that could reduce the production losses.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> \u00a0As Ben &amp; Jerry\u2019s currently relies upon family farms for its milk<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a>, the company may eventually need to alter its supplier mix or pay more for their milk to continue sourcing from family farms.<\/p>\n<p><strong><em>How is Ben &amp; Jerry\u2019s responding?<\/em><\/strong><\/p>\n<p><em>External actions: <\/em>As discussed above, the company has launched a global awareness-raising campaign against climate change.\u00a0 Their website also has a call to action for fans, asking them to sign a petition to pressure legislators to act on the issue and lobby for change alongside Ben &amp; Jerry\u2019s.<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a><\/p>\n<p><em>Internal actions: <\/em>Ben &amp; Jerry\u2019s recognizes that they can\u2019t just demand others to act to prevent climate change; they also need to control their own impact on the environment.\u00a0 The company has taken several measures to limit their negative externalities on the planet.\u00a0 For instance, in 2015 they strengthened their Caring Dairy program, which establishes some of the highest standards for the dairy industry.<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a>\u00a0 One such standard is that supplier farms must participate in an environmental monitoring program.<a href=\"#_ftn10\" name=\"_ftnref10\">[10]<\/a><\/p>\n<p><strong><em>So climate change is a clear-cut problem for Ben &amp; Jerry\u2019s, right?<\/em><\/strong><\/p>\n<p><u>Actually, it\u2019s not that simple<\/u>. \u00a0While Ben &amp; Jerry\u2019s is certainly taking a noble stance in the fight against climate change, they\u2019ve failed to acknowledge one salient issue: <strong>when it\u2019s hotter, people eat more ice cream.\u00a0 <\/strong><\/p>\n<p>Depending on the time of year, each incremental \u00b0C can translate to 5-10% of additional ice cream sales<a href=\"#_ftn11\" name=\"_ftnref11\">[11]<\/a>.\u00a0 \u00a0Climate change could actually present untapped profit <em>opportunities <\/em>for Ben &amp; Jerry\u2019s.<\/p>\n<p><strong><em>Is the company making the right move in pushing so hard against climate change, then?<\/em><\/strong><em>\u00a0 <\/em><\/p>\n<p>From a purely revenue and cost analysis, the answer depends on the expected cost to the company of supply chain disruptions vs. the margin uplift from a climate-driven ~10-20% increase in sales by 2050 (given that global temperatures are expected to increase by approximately 2\u00b0C if no additional mitigation efforts occur).<a href=\"#_ftn12\" name=\"_ftnref12\">[12]<\/a><\/p>\n<p>Yet even if those effects could be accurately quantified, there would still be further unknowns from just an economic standpoint.\u00a0 Specifically, demand for Ben &amp; Jerry\u2019s products may increase over time because of the positive PR from their sustainability mission.\u00a0 66% of global consumers say they are willing to pay more for products that come from companies that are committed to positive social and environmental impact, up from 50% in 2013<a href=\"#_ftn13\" name=\"_ftnref13\">[13]<\/a>.\u00a0\u00a0 If these trends continue, Ben &amp; Jerry\u2019s may improve their profitability more by staying true to their mission against climate change than by benefiting from its warming effects, but it\u2019s impossible to quantify all the relevant parts of the puzzle.<\/p>\n<p>But here\u2019s the thing: regardless of whether climate change could be profitable, it isn\u2019t going to matter to this values-driven company.\u00a0 <u>Ben &amp; Jerry\u2019s has considered sustainability a core value throughout its history, and it isn\u2019t about to stop now.<\/u>\u00a0 Enjoy your Chunky Monkey in good conscience!<\/p>\n<p>(784 words)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> (Murray, 2015)<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> (2014 Social &amp; Environmental Assessment Report, n.d.)<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> (Flavors We Could Lose to Climate Change, 2016)<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> (L\u00e4derach, Martinez-Valle, Schroth, &amp; Castro, 2013)<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> (Bauman, Mauger, Nennich, &amp; Salathe, 2014)<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> (Bloudoff-Indelicato, 2012)<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> (Stillman, 2016)<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> (Ben &amp; Jerry&#8217;s, n.d.)<\/p>\n<p><a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> (Ben &amp; Jerry&#8217;s, 2016)<\/p>\n<p><a href=\"#_ftnref10\" name=\"_ftn10\">[10]<\/a> (Ben &amp; Jerry&#8217;s, 2016)<\/p>\n<p><a href=\"#_ftnref11\" name=\"_ftn11\">[11]<\/a> (Cr\u00e9halet, Bertrand, &amp; Fortin, 2013)<\/p>\n<p><a href=\"#_ftnref12\" name=\"_ftn12\">[12]<\/a> (Henderson, Reinert, Dekhtyar, &amp; Migdal, 2016)<\/p>\n<p><a href=\"#_ftnref13\" name=\"_ftn13\">[13]<\/a> (Nielsen, 2015)<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Bibliography<\/span><\/p>\n<p><em>2014 Social &amp; Environmental Assessment Report<\/em>. (n.d.). Retrieved from Ben &amp; Jerry&#8217;s: http:\/\/www.benjerry.com\/about-us\/sear-reports\/2014-sear-report<\/p>\n<p>Bauman, Y., Mauger, G., Nennich, T., &amp; Salathe, E. (2014). Impacts of Climate Change on Milk Production in the United States. <em>The Professional Geographer<\/em>.<\/p>\n<p>Ben &amp; Jerry&#8217;s. (2016). <em>2015 SEAR Report<\/em>. Retrieved from Ben &amp; Jerry&#8217;s: http:\/\/www.benjerry.com\/about-us\/sear-reports\/2015-sear-report<\/p>\n<p>Ben &amp; Jerry&#8217;s. (2016). <em>Caring Dairy US Standards &#8211; 2016<\/em>. Retrieved from Ben &amp; Jerry&#8217;s: http:\/\/www.benjerry.com\/files\/live\/sites\/systemsite\/files\/our-values\/how-we-do-business\/caring-dairy-V2-standards-for-web-apr-13-2016.pdf<\/p>\n<p>Ben &amp; Jerry&#8217;s. (n.d.). <em>Climate Justice<\/em>. Retrieved from Ben &amp; Jerry&#8217;s: http:\/\/www.benjerry.com\/values\/issues-we-care-about\/climate-justice<\/p>\n<p>Bloudoff-Indelicato, M. (2012, August 6). <em>Rising Heat and Humidity Could Cut Dairy Production<\/em>. Retrieved from Accuweather: http:\/\/m.accuweather.com\/en\/outdoor-articles\/farming\/rising-heat-and-humidity-could\/69120<\/p>\n<p>Cr\u00e9halet, E., Bertrand, J.-L., &amp; Fortin, M. (2013). <em>Demystifying Climate Effects.<\/em> Kepler Cheuvreux.<\/p>\n<p><em>Flavors We Could Lose to Climate Change<\/em>. (2016, September 6). Retrieved from Ben &amp; Jerry&#8217;s: http:\/\/www.benjerry.com\/whats-new\/endangered-pints<\/p>\n<p>Henderson, R. M., Reinert, S. A., Dekhtyar, P., &amp; Migdal, A. (2016). <em>Climate Change in 2016: Implications for Business.<\/em> Cambridge: 性视界 Business School.<\/p>\n<p>L\u00e4derach, P., Martinez-Valle, A., Schroth, G., &amp; Castro, N. (2013). Predicting the future climatic suitability for cocoa farming of the world&#8217;s leading producer countries, Ghana and C\u00f4te d\u2019Ivoire. <em>Climatic Change<\/em>.<\/p>\n<p>Murray, J. H. (2015, June). Ben &amp; Jerry&#8217;s Struggles with Corporate Social Responsibility in an International Context. <em>Journal of Legal Studies Education<\/em>. Retrieved from http:\/\/dx.doi.org.ezp-prod1.hul.harvard.edu\/10.1111\/jlse.12029<\/p>\n<p>Nielsen. (2015, 11 5). <em>Green Generation: Millenials Say Sustainability is a Shopping Priority<\/em>. Retrieved from Nielsen: http:\/\/www.nielsen.com\/us\/en\/insights\/news\/2015\/green-generation-millennials-say-sustainability-is-a-shopping-priority.html<\/p>\n<p>Stillman, M. (2016, August). Visit to Ben &amp; Jerry&#8217;s Factory. Vermont, USA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ben &amp; Jerry\u2019s is actively speaking out to mitigate the impacts of climate change on its supply chain and our world.  But are these impacts truly all detrimental to the company?<\/p>\n","protected":false},"author":2098,"featured_media":14117,"comment_status":"open","ping_status":"closed","template":"","categories":[2000,2001],"class_list":["post-14116","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-ben-jerrys","category-ice-cream"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Melting World: Ben &amp; Jerry\u2019s in the Age of Climate Change - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-melting-world-ben-jerrys-in-the-age-of-climate-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Melting World: Ben &amp; Jerry\u2019s in the Age of Climate Change - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Ben &amp; Jerry\u2019s is actively speaking out to mitigate the impacts of climate change on its supply chain and our world. 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