{"id":22255,"date":"2017-11-14T14:35:40","date_gmt":"2017-11-14T19:35:40","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/the-pinnacle-of-urgency-pinnacle-foods-efforts-at-addressing-climate-change\/"},"modified":"2017-11-14T14:35:40","modified_gmt":"2017-11-14T19:35:40","slug":"the-pinnacle-of-urgency-pinnacle-foods-efforts-at-addressing-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-pinnacle-of-urgency-pinnacle-foods-efforts-at-addressing-climate-change\/","title":{"rendered":"The Pinnacle of Urgency: Pinnacle Foods\u2019 Efforts at Addressing Climate Change"},"content":{"rendered":"

Pinnacle Foods, owner of Duncan Hines, Birds Eye, Aunt Jemima, and many other iconic food brands, relies on the quality and quantity of agricultural yield to produce and sell its countless food products. However, these critical raw ingredients that underpin Pinnacle Foods\u2019 business are in jeopardy. Studies estimate that climate change over the next 25 years will continue to put stress on the agriculture industry. Irregular and unpredictable precipitation patterns, extreme weather conditions,[1]<\/a> and changes in terrestrial and marine ecosystems, are expected to contribute to a continued decline in yield of major U.S. field crops by 2020.[2]<\/a> \u00a0As shown in Figure 1, studies suggest that even the \u201cbest\u201d case scenario of a slower to warm climate will result in crop yield declines across several types of crops.[3]<\/a><\/p>\n

Figure 1: <\/strong><\/p>\n

\"\"<\/a><\/p>\n

If Pinnacle Foods does not address these environmental issues, their business will be at risk.<\/p>\n

So what is the company doing? <\/strong><\/p>\n

Pinnacle Foods has adopted practices at several steps throughout the supply chain to mitigate its activities that negatively affect the environment (and in turn, its business). In particular, it is focused on the following five areas: electric usage, natural gas usage, greenhouse gas emissions, water usage, and solid waste to landfill.[4]<\/a><\/p>\n

The company has found ways to create efficiencies that reduce energy and natural gas usage and greenhouse gas emissions. For example, it partners with SmartWay, a U.S. Environmental Protection Agency to transport its freight in the most fuel-efficient way possible. This reduces CO2 emissions and oil usage and cuts company fuel costs.[5]<\/a><\/p>\n

Pinnacle Foods has also instituted new processes to conserve water, an increasingly scarce natural resource. For example, in Fennville, Michigan the team replaced water chutes previously used to transport apples throughout the plant with dry conveyors that accomplish the same task. This single change saves 4 million gallons of water each year.[6]<\/a> In addition, employees measure and record water usage at every manufacturing site.[7]<\/a> This process creates accountability for water usage and encourages new ideas for further usage reductions.<\/p>\n

To reduce waste, Pinnacle Foods tries to reuse and recycle materials that would otherwise be discarded. Through its packaging on brands such as Birds Eye, it uses the minimum amount of material possible to cover its products. It also employs text on the packaging to actively encourage consumers to recycle the waste.<\/p>\n

The company reinforces its internal focus on climate change by engaging with others who are similarly dedicated to the cause. For example, its Birds Eye brand ensures that ingredients are sustainably sourced. It partners with growers and farmers who optimize for nutrition and yield and minimize waste, while considering their impact on soil erosion, biodiversity, and energy use.[8]<\/a> This environmentally responsible behavior may incentivize growers to practice sustainable farming and, perhaps inadvertently, drive other companies to adopt similar behaviors to remain competitive.<\/p>\n

Concrete targets for 2020 hold the company responsible for making progress on its purported commitment to climate change mitigation. In fact, the company has already made significant strides, per Figure 2.[9]<\/a><\/p>\n

Figure 2:<\/strong><\/p>\n

\"\"<\/a><\/p>\n

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

As seen in Figure 2, Pinnacle Foods has made the least progress on reducing waste. I would recommend a reexamination of their production processes to uncover the most wasteful practices and then consider potential efficiencies. Solutions may include using the same type of packaging material across products or finding ways to reuse scrap in order to reduce the amount of material needed.<\/p>\n

Beyond their current internal initiatives, Pinnacle Foods should consider taking a public and industry-wide stance on climate change. Given its scale and influence, it could become a role model for companies strategizing about climate change mitigation. Together, companies can discover more creative environmentally friendly operating techniques. In addition, Pinnacle Foods should explore the emerging plant-based meat category, which requires fewer resources, including water, to produce. As the population in need of food grows and food yields shrink, this may be a mechanism to bridge that gap and strategically fulfill a market need.<\/p>\n

Food for Thought<\/strong><\/p>\n

At the beginning of 2016, Pinnacle Foods had already almost reached most of its 2020 targets. Were they aggressive and lofty enough? It might be time for the organization to reassess the positive progress it has made and push itself to achieve more for the sake of the environment. Doing so will not only benefit the environment, but the long-term viability of the Pinnacle Foods\u2019 business.<\/p>\n

Word Count: 797<\/p>\n

[1]<\/a> National Climate Assessment, U.S. Global Change Research Program, 2014, http:\/\/nca2014.globalchange.gov\/highlights\/report-findings\/agriculture#statement-16364, accessed November 2017.<\/p>\n

[2]<\/a> \u201cClimate Change and Agriculture in the United States: Effects and Adaptation,\u201d USDA Technical Bulletin 1935, http:\/\/www.usda.gov\/oce\/climate_change\/effects_2012\/CC%20and%20Agriculture%20Report%20(02-04-2013)b.pdf, accessed November 2017.<\/p>\n

[3]<\/a> The California Climate & Agriculture Network, \u201cClimate Change Impacts on Agriculture,\u201d http:\/\/calclimateag.org\/wp-content\/uploads\/2011\/09\/Impacts-fact-sheet.pdf<\/a>, accessed November 2017.<\/p>\n

[4]<\/a> \u201cSustainability,\u201d 2017, http:\/\/pinnaclefoods.com\/responsibility\/sustainability.html<\/a>, accessed November 2017.<\/p>\n

[5]<\/a> Ibid.<\/p>\n

[6]<\/a> Ibid.<\/p>\n

[7]<\/a> Ibid.<\/p>\n

[8]<\/a> \u201cOur Sustainability Standards,\u201d 2017, https:\/\/www.birdseye.co.uk\/forever-food-together\/our-sustainability-standards#HealthierMealChoices<\/a>, accessed November 2017.<\/p>\n

[9]<\/a> \u201cSustainability,\u201d 2017, http:\/\/pinnaclefoods.com\/responsibility\/sustainability.html<\/a>, accessed November 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"

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