This disturbing trend is of great concern to all consumers of cocoa beans \u2013 notably, the major global chocolate conglomerates, who consume a majority of the world\u2019s cocoa bean consumption. These companies (Nestle, Hersheys, Mars, and Mondelez) earn billions of dollars in revenue selling processed chocolate products around the world \u2013 revenues which depend entirely on the availability of cocoa beans. Mondelez, for example, makes brands such as Cadbury\u2019s, Toblerone, and Milka, and has (like many of its peers) acknowledges the significant risk posed to their supply chain by climate change.<\/p>\n
Mondelez has chosen to combat this through a number of corporate initiatives intended to combat the impacts of climate change on cocoa Source: Mondelez International. http:\/\/www.mondelezinternational.com\/~\/media\/MondelezCorporate\/com\/uploads\/downloads\/sustainability_2020_goals.pdf, accessed 14 November 2017. <\/em><\/p>\n These goals all sound admirable and legitimate, but the question looms \u2013 is it enough? To combat a risk that can displace your entire business, is there such a thing as \u201cenough\u201d? Let\u2019s briefly compare Mondelez\u2019s sustainability plan to that of Mars \u2013 the world\u2019s largest chocolate manufacturer. Mars recently pledged a $1 billion investment to fight climate change \u2013 including cutting greenhouse gas emissions by 27% by 2025 and by 67% by 2050[6]<\/a><\/p>\n In the face of such bold moves, it appears clear that Mondelez is not doing enough to combat this critical risk. For example, they target a 15% reduction in carbon emissions by 2020 based on aligning with \u201ccurrent approaches to setting science-based targets to support the global effort to limit climate change to less than 2\u00ba <\/sup>C\u201d[7]<\/a> \u2013 but why not be a leader and beat these recommendations? In this regard, Mondelez is doing the bare minimum that is recommended by scientists, rather than taking a strong position to minimize their emissions as much as possible \u2013 which is their responsibility, due not only to their moral obligation but their dependence on cocoa production.<\/p>\n Mondelez states that they will train and coach farmers and distribute seedlings for trees to provide shade over crops (reducing the impact of droughts)[8]<\/a>\u2013 but provide no numbers on the scale or scope of this goal. They need to provide measurable plans which are not just cosmetic but create meaningful change on the ground.<\/p>\n However, other questions still remain \u2013 is Mondelez the correct party to do more on deforestation, or should that responsibility lie with the governments of countries which are major cocoa producers? Will shareholders support Mondelez increasing the amount of capital invested in sustainability, or will they prove unable to see the long-term necessity of these investments?<\/p>\n (740 words)<\/p>\n <\/p>\n [1]<\/a> Ashley Hutchins, Assessment of Climate Change Impacts on Cocoa Production and Approaches to Adaptation and Mitigation: A Contextual View of Ghana and Costa Rica. George Washington University Working Paper. https:\/\/elliott.gwu.edu\/sites\/elliott.gwu.edu\/files\/World%20Cocoa%20Foundation.pdf.<\/p>\n [2]<\/a> Peter L\u00e4derach, \u201cClimate change adaptation of coffee production in space and time\u201d, Climactic Change Magazine. March 2017, Volume 141, Issue 1, pp 47\u201362. https:\/\/link.springer.com\/article\/10.1007\/s10584-016-1788-9.<\/p>\n [3]<\/a> \u201cMondelez International Accelerates Action on Climate Change with New 2020 Global Sustainability Goal. October 21, 2015.http:\/\/ir.mondelezinternational.com\/releasedetail.cfm?ReleaseID=937669. Accessed 14 November 2017.<\/p>\n [4]<\/a>Mbalo Ndiaye, \u201cProtecting Forests and Combating Climate Change\u201d, Cocoa Life Blog, 14 June 2017. https:\/\/www.cocoalife.org\/progress\/protecting-forests-and-combating-climate-change. Accessed 14 Novermber 2017.<\/p>\n [5]<\/a> \u201cMondelez International Accelerates Action on Climate Change with New 2020 Global Sustainability Goal. October 21, 2015.http:\/\/ir.mondelezinternational.com\/releasedetail.cfm?ReleaseID=937669. Accessed 14 November 2017.<\/p>\n [6]<\/a> Natasha Bach,\u201cThe World\u2019s Largest Chocolate Maker is Committing $1 billion to Fight Climate Change,\u201d Fortune Magazine, September 6, 2017.hhttp:\/\/fortune.com\/2017\/09\/06\/mars-pledge-one-billion-fight-climate-change. Accessed 14 November 2017.<\/p>\n![\"\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/mond2.png\")
<\/a>production. The overarching umbrella of this initiative is their Sustainability 2020 Goals, a set of plans intended to (among other things), reduce absolute carbon dioxide emissions from manufacturing, and reduce deforestation in the agricultural supply chain[3]<\/a>. Within this initiative, perhaps the most important element is the \u201cCocoa Life\u201d program, which helps Mondelez cocoa farmers with sustainable farming practices. As part of this program, the company recently signed a Memorandum of Understanding with the government of Cote D\u2019Ivoire, working with the Ministry of Environment to prevent deforestation near cocoa farms, caused by farmers illegally expanding farms to combat falling yield. Mondelez will simultaneously help farmers increase productivity and train them in sustainable agricultural practices[4]<\/a>. Specifically, they are helping implement the U.N.\u2019s REDD+ (Reducing Emissions from Deforestation and Forest Degradation in Developing Countries) sustainable agriculture practices. Additionally, by 2020, Mondelez will reduce its carbon emissions from manufacturing by 15%, and reduce its water consumption by 10%[5]<\/a>.<\/p>\n![\"\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/m2-300x223.jpg\")
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