{"id":25196,"date":"2017-11-15T19:52:56","date_gmt":"2017-11-16T00:52:56","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/the-beef-with-beef\/"},"modified":"2017-11-15T19:52:56","modified_gmt":"2017-11-16T00:52:56","slug":"the-beef-with-beef","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-beef-with-beef\/","title":{"rendered":"The Beef with Beef"},"content":{"rendered":"

Is big beef its own worst enemy?\u00a0<\/u><\/strong><\/p>\n

The ingredient list for your average hamburger includes 15 gallons of water, 14 pounds of feed, and 65 square feet of land [1]. Beef is among the most resource-intensive foods out there (Exhibit A). As a result, the industry is subject to enormous risk due to climate change impacts across its supply chain. First, they must adapt to unpredictable availability and cost of feed and water. Second, they must prepare for flooding, drought, natural disasters, and resulting increases in livestock disease [2] (Exhibit B). As these resource constraints escalate, population growth and increasing meat consumption per capita are projected to drive a 73% increase in global meat consumption by 2050, further exacerbating these challenges [B].<\/p>\n

Mitigating climate change impacts is just one side of the equation. Animal agriculture globally accounts for 14.5% of GHG emissions \u2013 by some calculations, greater than the global transportation sector [9] (Exhibit B). Methane emissions from enteric fermentation (cow flatulence) are the main culprit (Exhibit C). Furthermore, cattle is one of four \u201cforest-risk commodities\u201d causing deforestation in the Amazon, producing 15% of global GHG emissions [3]. The result is not just a moral imperative to change \u2013 but also real economic consequences. Reputational pressure from end-consumers and regulatory changes like the Paris Agreement create substantial pay-offs for investments in sustainability [4].<\/p>\n

EXHIBIT A<\/strong><\/span> [5]
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EXHIBIT B<\/strong><\/span> [2]<\/p>\n

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

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

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EXHIBIT C<\/strong><\/span> [2]<\/p>\n

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Can \u201cbeef\u201d and \u201csustainability\u201d exist in the same sentence? JBS is giving it a try.<\/u><\/strong><\/p>\n

JBS, the world\u2019s largest global producer of beef, is vocal about their commitment to sustainability. They have made investments across the supply chain to both mitigate impacts and reduce their environmental footprint, receiving an \u201cA-\u201d sustainability score from Driving Sustainable Economies (CDP) [3]. Their corporate strategy highlights efforts devoted to the prioritization of sustainability initiatives \u2013 land management, water use, energy use, and waste are among the highest-priority areas [6].<\/p>\n

JBS regularly invests in operational improvements to optimize logistics, improve energy efficiency, increase use of renewable energy, and meet standards for waste disposal and wastewater treatment [7]. Through their Environmental Management System (EMS), they provide transparency to metrics such as emissions and water usage per output, allowing them to set targets, adjust procedures, and design projects to reach goals [7]. Finally, JBS is engaging the industry on these topics; they are members of the Global, US, Canadian, and Brazilian Roundtables for Sustainable Beef [7].<\/p>\n

Their \u2018Cattle Agreement\u2019 with Greenpeace commits to tracing cattle to prohibit sourcing from ranchers associated with deforestation. The \u2018New Field\u2019 Program in Brazil promotes sustainable ranching practices, and thus far has produced 5-10% emissions reductions and doubled productivity [3]. Finally, the Carbon Neutral Meat Program in Brazil will design a new livestock \u2013 forest integration model [3]. Highly publicized initiatives like these \u2013 which intend to improve efficiency and productivity while minimizing environmental impact \u2013 are central to their medium-term sustainability strategy.<\/p>\n

While JBS\u2019s investments in climate change mitigation appear substantial to date, recent scandals call their credibility into question. This May, an investigation uncovered that JBS Brazil has knowingly and regularly sourced cattle from illegally deforested land for many years [8].<\/p>\n

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If that\u2019s not enough\u2026 what is?\u00a0<\/u><\/strong><\/p>\n

As a global power-house with a diversified supply chain and ongoing investments in resource efficiency, JBS is well-positioned to weather the short- costs associated with climate change. That is, within the current industry context and business model. But the greatest risk to JBS \u2013 and their competitive set \u2013 is the mutual exclusivity of future beef production scaled to demand and the 2\u00b0C global warming \u201ctipping point.\u201d If the two cannot coexist, either: 1) economic forces will effectively destroy the industry, or 2) the planet will reach a point of catastrophic impact. JBS must move from incremental to transformational change to mitigate this risk. There are several actions JBS can take:<\/p>\n