  {"id":24480,"date":"2017-11-15T17:41:26","date_gmt":"2017-11-15T22:41:26","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/climate-change-food-security-and-general-mills\/"},"modified":"2017-11-15T17:41:26","modified_gmt":"2017-11-15T22:41:26","slug":"climate-change-food-security-and-general-mills","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/climate-change-food-security-and-general-mills\/","title":{"rendered":"Climate change, food security, and General Mills"},"content":{"rendered":"<p><strong>AN URGENT NEED<\/strong><\/p>\n<p>Climate change is arguably the most pressing issue of the 21<sup>st<\/sup> century. In particular, climate change will dramatically shift our global food equation. On the supply side, we can expect volatile and harsh weather conditions to threaten access to raw materials and disrupt supply chain deliveries. Today, global agriculture alone \u201cproduces up to 35% of the world\u2019s greenhouse gas emissions (and uses 70% of the water)\u201d [3]\u2014and it&#8217;s about to get worse.\u00a0The demand for \u201cagricultural products is estimated to increase by about 50% by 2030 as the global population increases\u201d [1] and an \u201cestimated 1.8B people are expected to join the global consuming class by 2025\u201d [2]. Going forward, it is likely that food manufacturers will face increasing pressures from all sides\u2014governments, regulatory bodies, and consumers\u2014to produce more food in a more sustainable way.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>CALL TO ACTION<\/strong><\/p>\n<p>In order to provide reliable, affordable access to high-quality ingredients over the next several decades, the food industry must evolve. Specifically, food manufacturers must transform their supply chains to be both sustainable <em>and<\/em> resilient. General Mills has set an industry-leading example of this.<\/p>\n<p>General Mills has committed to an ambitious goal of reducing 28% of its total greenhouse gas emissions by 2025 across its entire value chain, \u201cfrom farm to fork to landfill\u201d [4]. The company\u2019s long-term aspiration is to reduce total emissions up to 72% by 2050\u2014in line with global scientific consensus, as mandated by the Intergovernmental Panel on Climate Change [4]. This aspiration is particularly ambitious because General Mills intends to reduce emissions across the entire supply chain, <em>beyond its own direct operations. <\/em>In fact, \u201cnearly two-thirds of greenhouse gas emissions and 99% of water use occur outside General Mills\u2019 operations, primarily in agriculture\u201d [5]\u2014beyond the company\u2019s direct control and line of sight.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>WHAT\u2019S NEXT?<\/strong><\/p>\n<p>To achieve this, General Mills has committed to sourcing its top ten priority ingredients from sustainable, traceable sources by 2020. \u201cThese ingredients represent 50% of the company\u2019s total raw material purchases and have significant impact on its total environmental footprint\u201d [4]. Additionally, the company has conducted a global water risk assessment of its factories and pledged to \u201cdevelop a global freshwater stewardship program with public commitments, public education and advocacy, and funding for key watersheds\u201d [5].<\/p>\n<p>Given that the majority of General Mills\u2019 greenhouse gas emissions occurs upstream of its direct operations, the company must partner closely with suppliers and growers to implement sustainable farming and sourcing practices. Such practices include:<\/p>\n<ul>\n<li><strong>Expanding industry partnerships with organizations<\/strong>, such as Field to Market and the Innovation Center for U.S. Dairy, that provide farmers with tools, resources, and best practices [7]. These industry coalitions also help growers \u201cgather information about how their farming practices are impacting the environment\u201d and &#8220;give them access to data that can help guide everyday decisions\u201d related to soil and water management [5].<\/li>\n<li><strong>Focusing on supplier engagement across the value chain<\/strong>. General Mills rarely handles production agriculture directly, and thus needs to obtain supplier buy-in and align incentives across the value chain. To do this, General Mills has invested \u201cmore than $100 million in energy efficiency and clean energy\u201d [6].<\/li>\n<li><strong>Sourcing from an additional 250,000 organic acres by 2025<\/strong>. \u201cOrganic farming\u2019s focus on healthy soils can help sequester carbon, enable farms to have a higher tolerance to drought and heavy rains and promote biodiversity so the farm can continue to be more successful in adapting to changing climate conditions\u201d [7].<\/li>\n<\/ul>\n<p>I would make some additional recommendations to help General Mills achieve its ambitions. First, the company should establish a governance committee that sets policy targets and makes key investment decisions, with additional members embedded in the relevant business functions (e.g. procurement and supply chain management). Second, the company should develop and monitor robust performance metrics, and establish a mechanism for adjusting targets as climate science continues to evolve over the next 40 years. Third, downstream improvements can be made in packaging design and materials, which represent \u201c14% of total greenhouse gas emissions across the value chain\u201d [7]. General Mills should move towards low-impact, zero-waste packaging through packaging innovation, partnerships with more progressive suppliers, and truckload packing-efficiency optimization. Finally, General Mills should invest to close data and technology gaps at the farm level. Currently, there is a lack of granular data available at the farm level: most data measurement and analysis tools used in the field today are simplistic and lack the capabilities required to account for key differences in growing regions, farming methods, etc.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>FOOD FOR THOUGHT<\/strong><\/p>\n<p>In the interim, how should industry leaders like General Mills balance short-term financial performance versus long-term investments necessary for survival? What role should shareholders and consumers play? More broadly, should companies be held to the same standards as nations when it comes to compliance on climate change?<\/p>\n<p>(Word count: 798)<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Works Cited:<\/strong><\/span><\/p>\n<p>[1] Tim Wheeler and Joachim von Braun, \u201cClimate Change Impacts on Global Food Security,\u201d <em>Science <\/em>no. 341 (August 2, 2013): 508-513, http:\/\/science.sciencemag.org\/content\/341\/6145\/508.full, accessed November 2017.<\/p>\n<p>[2] Anne-Titia Bove and Steven Swartz, \u201cStarting at the source: Sustainability in supply chains,\u201d McKinsey, November 2010, <a href=\"https:\/\/www.mckinsey.com\/business-functions\/sustainability-and-resource-productivity\/our-insights\/starting-at-the-source-sustainability-in-supply-chains\">https:\/\/www.mckinsey.com\/business-functions\/sustainability-and-resource-productivity\/our-insights\/starting-at-the-source-sustainability-in-supply-chains<\/a>, accessed November 2011.<\/p>\n<p>[3] Andrew Winston, \u201cHow General Mills and Kellogg Are Tackling Greenhouse Gas Emissions,\u201d <em>Fortune, <\/em>June 1, 2016, <a href=\"https:\/\/hbr.org\/2016\/06\/how-general-mills-and-kellogg-are-tackling-greenhouse-gas-emissions\">https:\/\/hbr.org\/2016\/06\/how-general-mills-and-kellogg-are-tackling-greenhouse-gas-emissions<\/a>, accessed November 2017.<\/p>\n<p>[4] \u201cGeneral Mills announces new commitment on climate change,\u201d press release, August 30, 2015, on General Mills website, <a href=\"https:\/\/www.generalmills.com\/en\/News\/NewsReleases\/Library\/2015\/August\/Climate-Commitment\">https:\/\/www.generalmills.com\/en\/News\/NewsReleases\/Library\/2015\/August\/Climate-Commitment<\/a>, accessed November 2007.<\/p>\n<p>[5] Jerry Lynch, \u201cSupply Chain of the Future: An Inside View of General Mills\u2019 Commitment to Sustainable Sourcing,\u201d <em>CSR Wire<\/em>, April 8, 2014, <a href=\"http:\/\/www.csrwire.com\/blog\/posts\/1294-supply-chain-of-the-future-an-inside-view-of-general-mills-commitment-to-sustainable-sourcing\">http:\/\/www.csrwire.com\/blog\/posts\/1294-supply-chain-of-the-future-an-inside-view-of-general-mills-commitment-to-sustainable-sourcing<\/a>, accessed November 2017.<\/p>\n<p>[6] John Kell, \u201cGeneral Mills has big plans to go green,\u201d <em>Fortune, <\/em>August 31, 2015, <a href=\"http:\/\/fortune.com\/2015\/08\/31\/general-mills-going-green\/\">http:\/\/fortune.com\/2015\/08\/31\/general-mills-going-green\/<\/a>, accessed November 2017.<\/p>\n<p>[7] John Church, \u201cInside the General Mills roadmap to a sustainable food future,\u201d <em>The Guardian, <\/em>October 23, 2015, <a href=\"https:\/\/www.theguardian.com\/sustainable-business\/2015\/oct\/23\/general-mills-sustainable-supply-chain-un-climate-conference-paris\">https:\/\/www.theguardian.com\/sustainable-business\/2015\/oct\/23\/general-mills-sustainable-supply-chain-un-climate-conference-paris<\/a>, accessed November 2017.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the face of climate change, food manufacturers like General Mills must transform their supply chains. Our future and food security depends on it.<\/p>\n","protected":false},"author":10406,"featured_media":24481,"comment_status":"open","ping_status":"closed","template":"","categories":[3629,1224,1329],"class_list":["post-24480","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change-and-supply-chains","category-food-security","category-general-mills","hck-taxonomy-organization-general-mills","hck-taxonomy-industry-agriculture-and-agribusiness","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Climate change, food security, and General Mills - 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\/climate-change-food-security-and-general-mills\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Climate change, food security, and General Mills - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"In the face of climate change, food manufacturers like General Mills must transform their supply chains. 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