Assuring the Food Supply Chain in the Face of Climate Change: A Call to Action for Business Leaders

The global food system is facing an unprecedented challenge: climate change. The effects of a warming planet are already being felt in farmers' fields and throughout the intricate network of supply chains that bring food from farm to table. The situation is further complicated by the fact that conventional agricultural practices themselves contribute to greenhouse gas emissions, creating a dangerous feedback loop that threatens both food security and the long-term viability of businesses reliant on agriculture.

The urgency of this crisis cannot be overstated. It's no longer just an issue for sustainability professionals; it's a pressing concern for business leaders across the food supply chain. The stability of our food systems is intrinsically linked to the stability of our businesses, and climate change poses a direct threat to both. It's time for CEOs to step up and lead the charge in building a more resilient food system that can withstand the challenges of a changing climate.

The Path to Resilience: Addressing Scope 3 Emissions

The impact of climate change on land-based supply chains is far-reaching. Extreme weather events disrupt agricultural production, leading to spikes in commodity prices and food inflation. The agricultural sector is a major contributor to greenhouse gas emissions, and for many companies in the food and beverage industry, the majority of these emissions fall under Scope 3 - those generated by suppliers and growers.

Reducing Scope 3 emissions is not just an environmental imperative; it's also a strategic business decision. By mitigating these emissions, we can build resilience to climate change, stabilize supply chains, and manage business risk. The good news is that advancements in technology and data analytics are making it easier than ever to measure and manage Scope 3 emissions, providing companies with the visibility they need to take meaningful action.

A Holistic Approach to Climate Risk Mitigation

Addressing climate risk requires a comprehensive, company-wide strategy. CEOs must prioritize this work and ensure that sustainability is integrated into every aspect of the business. This involves three key steps:

1. Measure Emissions: The first step is to establish a reliable baseline of emissions. This requires accurate, dynamic data that captures the complexities of agricultural systems and their environmental impact. New technologies, such as satellite imagery and impact models, can provide unprecedented visibility into emissions across supply sheds, enabling companies to identify areas for improvement and track progress over time.
2. Manage Emissions: Once a baseline is established, companies can develop a plan to close the "Impact Gap" - the difference between their current emissions trajectory and their climate goals. This may involve working with suppliers to adopt more sustainable practices, investing in regenerative agriculture programs, or sourcing materials with lower emission profiles. The key is to focus on strategies that reduce the environmental impact per unit of product sourced, ensuring that sustainability and business growth go hand in hand.
3. Incentivise Transformation: Building resilience requires buy-in and action from across the organization. Sustainability expertise should be integrated into all business functions, from procurement and product development to marketing and risk management. Incentivizing top management with sustainability goals as key performance indicators (KPIs) can help ensure that progress is made and that resilience becomes a core part of the company's culture.

Collaboration and Partnership

Building a resilient food system is a collective effort. Companies must work closely with their partners across the supply chain to build trust, enable producers to adopt sustainable practices, and leverage technology to drive impact at scale. By collaborating and sharing knowledge, we can accelerate progress and create a more sustainable future for all.

The Next Generation of Business Transformation

Climate change is a defining challenge of our time, and the food industry has a critical role to play in addressing it. By taking a proactive and holistic approach to climate risk mitigation, business leaders can not only ensure the longevity of their companies but also contribute to a more stable and sustainable food system for future generations.

The path to resilience is clear: measure emissions, manage emissions, and incentivize transformation across the business. By embracing these principles and working together, we can build a food system that is not only resilient to climate change but also contributes to a healthier planet and a more prosperous future for all.