{"id":23046,"date":"2017-11-14T23:11:29","date_gmt":"2017-11-15T04:11:29","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/"},"modified":"2017-11-14T23:11:29","modified_gmt":"2017-11-15T04:11:29","slug":"starbucks-saving-our-coffee-from-the-threat-of-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/","title":{"rendered":"Starbucks: Saving Our Coffee from the Threat of Climate Change"},"content":{"rendered":"

What\u2019s the deal with climate change?<\/strong><\/p>\n

Coffee is a very fussy plant! In fact, the Arabica coffee varietal, which makes up about 70% of global coffee production, flourishes only in areas with a very narrow temperature range\u201464-70 degrees Fahrenheit to be exact\u2014and prefers an altitude of approximately 3,000 to 6,000 feet above sea level1<\/sup>. As little as one-half degree changes in temperature or changes in rainfall patterns to dramatically decrease harvest yields and overall product quality2<\/sup>. One-to-two degree rises in temperature are even more disastrous as coffee pests, such as coffee rust and coffee borer beetles, will run rampant and further diminish product yields2<\/sup>.<\/p>\n

 <\/p>\n

As of today, there are 27 million acres of land across the globe which are tenable for coffee farming; however, recent reports suggest that climate change is expected to cut this area in half by 2050, putting major pressure on global coffee supply2<\/sup>. Further, farmers in these coffee-growing countries lack the resources to adapt to issues caused by climate change on their own.\u00a0 Alarmingly, many are instead choosing to abandon coffee farming completely3<\/sup>.<\/p>\n

 <\/p>\n

As a result, many consider global climate change to be the most critical threat for the coffee industry in coming decades. As the global leader in coffee retail sales, Starbucks will be majorly impacted by the effects of climate change on coffee supply.<\/p>\n

 <\/p>\n

What\u2019s Starbucks doing about it?<\/strong><\/p>\n

Understanding the gravity of this risk to its business, Starbucks has put together a robust plan to address climate change. Exhibit 1 shows the typical coffee supply chain which consists of three phases: Cultivation\/Processing, Roasting\/Packaging, and Consumption4<\/sup>. Starbucks has established initiatives across these phases of its supply chain to both mitigate and adapt its business to the climate change challenge.<\/p>\n

 <\/p>\n

Exhbit A: Typical Coffee Supply Chain<\/strong>4<\/sup><\/p>\n

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

 <\/p>\n

In the short-term, Starbucks has introduced measures to mitigate its contributions to climate change by decreasing its carbon footprint, or the total set of greenhouse gas emissions created from the coffee lifecycle. Specifically, Starbucks has chosen to focus on the most carbon-intensive aspect of its supply chain, the Consumption phase, which typically amounts to approximately 46% of the total emissions generated throughout coffee\u2019s lifecycle (see Exhibit B6<\/sup>). Much of the carbon emissions generated in the Consumption phase are attributed to electricity usage associated with brewing coffee5<\/sup>. In response, Starbucks has implemented an initiative to reduce energy usage through the installation of Energy Management Systems in 6,000 of its stores6<\/sup>. Starbucks has also invested in Green-E certified Renewable Energy Certificates to both encourage the continued development of renewable energy sources and to offset 100% of its US and Canadian stores\u2019 fossil-fuel energy usage6<\/sup>.<\/p>\n

 <\/p>\n

Exhibit B: Typical Carbon Footprint per kg Coffee<\/strong>5<\/sup><\/p>\n

 <\/p>\n

\"\"<\/a>To address long-term effects of climate change, Starbucks has focused on the Cultivation\/Processing phase of its supply chain. Specifically, Starbucks has implemented a supplier relationship management system called Coffee and Farmer Equity (C.A.F.E.) Practices to help its farmers better adapt to issues caused by climate change. This program, in combination with building nine farmer support centers and financing $50 million in farmer loans, provides farmers with the guidance and resources to adapt their farms more proactively in the face of climate change7<\/sup>.<\/p>\n

 <\/p>\n

Beyond this, Starbucks has also started to advocate for clean energy policy, becoming a founding member of the Business for Innovative Climate and Energy Policy, with the goal to promote widespread adoption of clean energy usage6<\/sup>. Ultimately, changes that are implemented through clean energy policy adoption will help Starbucks by setting a higher standard for other companies, so other companies share the responsibility and costs associated with driving sustainable practices.<\/p>\n

 <\/p>\n

Will Starbucks\u2019s plan be enough?<\/strong><\/p>\n

While Starbucks has done much already to address its risks associated with climate change, it could do more. In the short-term, Starbucks could more aggressively address challenges in the Cultivation\/Processing phase of its supply chain through vertical integration. By acquiring and operating its own coffee farms, Starbucks would have more control to implement best practices and would be nimbler to adapt to climate issues as they come. In the long-term, Starbucks could better address challenges associated with the fragile nature of the coffee plant itself. By investing in product innovation, such as creating new varietals of coffee that are less fragile in the face of changing weather conditions and pests, Starbucks could better position its business in the continued challenge of changing weather patterns.<\/p>\n

 <\/p>\n

Reflecting on Starbucks\u2019s plan regarding climate change, I wonder about the transportation aspects of Starbucks\u2019s supply chain: should Starbucks look closer at its logistics departments? Exhibit B gives us an idea of how carbon intensive this part of the process can be for the industry in general, but I wonder if Starbucks has opportunity to improve in this aspect of its supply chain through closer examination.<\/p>\n

 <\/p>\n

Word Count: 790<\/p>\n

 <\/p>\n

 <\/p>\n

    \n
  1. James Freeman, et al., The Blue Bottle Craft of Coffee. <\/em>2012. <\/em> 14.<\/li>\n
  2. The Climate Institute, \u201cA Brewing Storm: The climate change risks to coffee,\u201d http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_2408 2016_web.pdf. September 2016<\/li>\n
  3. NPR, \u201cCoffee and Climate Change: In Brazil, a Disaster is Brewing,\u201d October 12, 2016.<\/li>\n
  4. Melissa Murphy, et al., \u201cThe Coffee Bean: A Value Chain and Sustainability Initiatives Analysis, 2017. https:\/\/global.business.uconn.edu\/wp-content\/uploads\/sites\/1931\/ 2017\/01\/The-Coffee-Bean.pdf<\/li>\n
  5. Business Association of Latin American Studies, \u201cCarbon Footprint Across the Coffee Supply Chain: The Case of Costa Rican Coffee.\u201d 2012.<\/li>\n
  6. Starbucks, \u201cGreener Energy.\u201d 2017. https:\/\/www.starbucks.com\/responsibility\/ environment\/water-and-energy<\/li>\n
  7. Starbucks, \u201cEthical Sourcing: Coffee.\u201d 2017. https:\/\/www.starbucks.com\/responsibility\/ sourcing\/coffee<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Starbucks is leading the way in addressing the impact of climate change on the coffee industry, but will it be enough to save our morning cup o' Joe?<\/p>\n","protected":false},"author":10274,"featured_media":23053,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,614,612,17],"class_list":["post-23046","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-coffee","category-starbucks","category-supply-chain","hck-taxonomy-organization-starbucks","hck-taxonomy-industry-food-and-beverage","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nStarbucks: Saving Our Coffee from the Threat 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\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Starbucks: Saving Our Coffee from the Threat of Climate Change - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Starbucks is leading the way in addressing the impact of climate change on the coffee industry, but will it be enough to save our morning cup o' Joe?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/images.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"277\" \/>\n\t<meta property=\"og:image:height\" content=\"182\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/\",\"name\":\"Starbucks: Saving Our Coffee from the Threat of Climate Change - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/images.jpg\",\"datePublished\":\"2017-11-15T04:11:29+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/images.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/images.jpg\",\"width\":277,\"height\":182},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Starbucks: Saving Our Coffee from the Threat of Climate Change\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Starbucks: Saving Our Coffee from the Threat of Climate Change - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/","og_locale":"en_US","og_type":"article","og_title":"Starbucks: Saving Our Coffee from the Threat of Climate Change - Technology and Operations Management","og_description":"Starbucks is leading the way in addressing the impact of climate change on the coffee industry, but will it be enough to save our morning cup o' Joe?","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/","og_site_name":"Technology and Operations Management","og_image":[{"width":277,"height":182,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/images.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/","name":"Starbucks: Saving Our Coffee from the Threat of Climate Change - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/images.jpg","datePublished":"2017-11-15T04:11:29+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/images.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/images.jpg","width":277,"height":182},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/starbucks-saving-our-coffee-from-the-threat-of-climate-change\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Starbucks: Saving Our Coffee from the Threat of Climate Change"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/23046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/10274"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=23046"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/23046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media\/23053"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=23046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=23046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}