Dive Brief:
- About 92% of brands reporting to CDP, a global nonprofit that gathers data on environmental risk, noted risks to their business from the physical impacts of climate change, an increase from 84% of brands in 2012.
- While many of these companies have begun focusing on reducing carbon emissions within their internal operations, they have not been as quick to examine the emissions caused by the agricultural portion of their supply chains, where a majority of the emissions are taking place, according to the report.
- Despite these risks, "Only 22 of the 97 major food, beverage and tobacco brands that disclosed to CDP this year reported their indirect GHG emissions from agricultural production," according to The Guardian.
Dive Insight:
General Mills recently pledged a $100 million investment to reduce greenhouse gas emissions by 28% by 2025, not just in its internal operations, but "from farm to fork to landfill."
Companies are finding that environmental consequences of agricultural production emissions could relate to their future financial outputs.
"Diageo projects that changes in temperature could have negative financial implications on its agricultural supply chain," according to The Guardian. "This could force the company to spend up to $77m more in increased commodity costs and production disruption."