{"id":14154,"date":"2016-11-04T18:05:17","date_gmt":"2016-11-04T22:05:17","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/coffee-hotter-is-better-right\/"},"modified":"2016-11-04T18:10:40","modified_gmt":"2016-11-04T22:10:40","slug":"coffee-hotter-is-better-right","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/coffee-hotter-is-better-right\/","title":{"rendered":"Coffee: Hotter is Better, Right?"},"content":{"rendered":"

Over two billion cups of coffee are consumed each day1<\/sup>, and a large proportion of those cups are purchased at Starbucks. As the world\u2019s largest consumer of coffee beans, Starbucks will be directly impacted by the effects of climate change on its primary input: coffee beans.<\/p>\n

How will climate change affect Starbucks?<\/em><\/strong><\/p>\n

Coffee plants, from which beans are harvested, thrive in moderate and stable environments with a precise combination of temperature and precipitation, a very particular climate only found in a few locations around the globe.2<\/sup> These areas are commonly found in tropical highlands near the equator known as the Bean Belt. These areas, however, are extremely vulnerable to climate change which is raising global temperatures, making weather patterns unstable leading to periods of long droughts punctuated by intense rainfall, and the proliferation of pests and plant diseases that feed on coffee beans.<\/p>\n

Unfortunately, these conditions have already affected global coffee production. For example, coffee harvests in Central America dropped 20% in 2013 after an onset of Coffee Leaf Rust, a fungus that blocks sunlight to leaves and kills coffee plants.3<\/sup> Similarly, the Coffee Bean Borer is a major pest that causes crop damage totaling USD $500 million annually and further reduces bean supply.4<\/sup> The Borer also reproduces faster in the warmer and higher altitude climates where Arabica coffee is produced. Changing weather patterns have also contributed to overall declines in global coffee production. For example, droughts in Brazil destroyed one third of coffee crops in 2014.5<\/sup> In Tanzania, coffee production has declined 50% since the 1960\u2019s and is projected to reach critically low levels in 2060.6<\/sup><\/p>\n

The continuation of climate change and these resulting trends will inevitably reduce the supply of coffee beans which is causing concern for coffee bean consumers. Jim Hanna, Starbucks\u2019 Sustainability Director, has acknowledged: \u201cWhat we are really seeing as a company as we look 10, 20, 30 years down the road \u2013 if conditions continue as they are \u2013 is a potentially significant risk to our supply chain, which is the Arabica coffee bean.\u201d7<\/sup><\/p>\n

How is Starbucks dealing with climate change?<\/em><\/strong><\/p>\n

Starbucks has been responding to climate change since 2004 with one primary initiative aimed at climate adaption and mitigation efforts. The company has opened seven farmer support centers staffed with agronomists and sustainability experts who work with coffee farming communities to improve coffee quality and yields.8<\/sup> In 2013, Starbucks purchased a coffee farm in Costa Rica which it turned into a laboratory for testing coffee-growing practices and developing plants that can thrive in warmer temperatures.9<\/sup> To combat pests and plant disease, the company distributed coffee plants bred to be rust-resistant to farmers in Mexico. It even openly shares its formula for breeding the plants.10<\/sup><\/p>\n

Externally, Starbucks has generated awareness about and engaged in addressing the effects of climate change. The company has partnered with other businesses and organizations to promote climate-smart agricultural practices and was a founding member of Business for Innovative Climate and Energy Policy, a social project advocating stronger climate change and clean energy policies in the United States.11<\/sup><\/p>\n

What else can be done?<\/em><\/strong><\/p>\n

While Starbucks has been addressing climate change for over a decade with commendable success, the company itself continues to be part of the problem. Starbucks greenhouse gas emissions have risen each of the last three years. While the company has made changes to improve its energy efficiency, a recent business decision to offer heated food has led to more energy consumption by refrigerator and oven appliances, offsetting a portion of the gains realized from its sustainability efforts. While it may prove difficult to reduce energy consumption of necessary appliances and equipment, Starbucks could revisit its store design to shift toward more energy efficient lighting and design, modify store entrances and drive-through windows to reduce heat entrance\/escape, and utilize recycled paper products. As part of its \u201cMy Starbucks Idea\u201d initiative, the company could create a contest soliciting ideas for the most effective ways to reduce carbon emissions. Together with consumers, the company may be able to reduce coffee cup consumption by encouraging recycling or incentivizing customers to bring their own reusable coffee containers.<\/p>\n

As global temperatures rise and climates continue to change, Starbucks will likely have to change as well. Whether it is a supply chain shift, innovation of new products, or reframing customer\u2019s product expectations, something will likely have to change. And Starbucks will likely lead the way. I guess when it comes to coffee, perhaps hotter isn\u2019t necessarily better.<\/p>\n

Word Count (741)<\/p>\n

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[1] The Climate Institute Report: A Brewing Storm: The Climate Change Risks to Coffee, \u00a0http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a><\/p>\n

[2] New York Times, \u201cClimate Change Threatens World\u2019s Coffee Supply, Report Says\u201d, http:\/\/www.nytimes.com\/2016\/09\/23\/science\/climate-change-threatens-worlds-coffee-supply-report-says.html?_r=0<\/a><\/p>\n

[3] BBC News, \u201cCoffee in Crisis: The Bitter End of Our Favorite Drink?, http:\/\/www.bbc.com\/future\/story\/20150728-coffee-the-bitter-end-of-our-favourite-drink<\/a><\/p>\n

[4] The Climate Institute Report: A Brewing Storm: The Climate Change Risks to Coffee, \u00a0http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a><\/p>\n

[5] The Climate Institute Report: A Brewing Storm: The Climate Change Risks to Coffee, \u00a0http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a><\/p>\n

[6] Coffea Arabica:<\/em> Yields Decline in Tanzania Due to Climate Change: Global implications,<\/p>\n

http:\/\/www.sciencedirect.com\/science\/article\/pii\/S0168192315000830<\/a><\/p>\n

[7] The Guardian, \u201cStarbucks Concerned World Coffee Supply is Threatened by Climate Change\u201d, https:\/\/www.theguardian.com\/business\/2011\/oct\/13\/starbucks-coffee-climate-change-threat<\/a><\/p>\n

[8] Starbucks Website, http:\/\/www.starbucks.com\/responsibility\/environment\/climate-change<\/a><\/p>\n

[9] MIT\u2019s Technology Review, \u201cStarbucks Responds to Climate Change, with Mixed Results\u201d, https:\/\/www.technologyreview.com\/s\/601404\/starbucks-responds-to-climate-change-with-mixed-results\/<\/a><\/p>\n

[10] MIT\u2019s Technology Review, \u201cStarbucks Responds to Climate Change, with Mixed Results\u201d, https:\/\/www.technologyreview.com\/s\/601404\/starbucks-responds-to-climate-change-with-mixed-results\/<\/a><\/p>\n

[11] Starbucks Website, http:\/\/www.starbucks.com\/responsibility\/environment\/climate-change<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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