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Back in the fall, Starbucks made a significant announcement—and no, it wasn’t the launch of yet another pumpkin spice product.
The American coffee giant revealed that after a decade of research, they had successfully developed six coffee varieties specifically produced to resist the effects of climate change. Coffee beans, especially arabica (the most popular bean on the market, making up 70% of global production) are extremely sensitive to temperature changes, as well as other climate change-related impacts, including drought, freezing, and heavy rains. To ensure coffee production could withstand the impacts of a warming planet, Starbucks took a big swing, investing in the production of more resilient varieties. Now, they’re making the seeds available to farmers around the world for free, whether they sell to Starbucks or not.
With this recent success, Starbucks joins the ranks of companies taking a new approach to sustainability. While many global brands are already investing in climate change mitigation—reducing carbon emissions to slow the pace of global warming and decrease environmental impacts—it’s becoming clear that companies must also address the impacts of climate change happening now. It’s an approach known as climate adaptation.
The Intergovernmental Panel on Climate Change (IPCC) describes climate adaptation as “adjusting our behaviour and adapting our infrastructure” to address climate risks and hazards. As a result of climate change, the world is experiencing rising temperatures, higher sea levels, and an increase in extreme weather events and natural disasters, the effects of which are impacting people and the planet. Climate adaptation is the practice of identifying and addressing these risks, preparing for disruptions before they happen.
Not only are such evolutions essential for protecting supply chains and ensuring the long-term health of a brand (experts point out that making key investments now has the potential to protect companies from serious risks down the line), but climate adaptation is also projected to be a savvy investment. Bloomberg reports that the climate adaptation market could be worth up to $2 trillion in the next five years.
Such initiatives are popular with consumers and investors. Recent data shows that Gen Z and Millennials—the generations that currently represent 49% of the population—are the most likely to make purchase decisions based on personal, social, and environmental values, and the majority are willing to pay more for sustainable products.
There’s no doubt that rising global temperatures are having a significant impact on how we live, work, and do business. With climate change impacts growing, more global brands are investing in strategies to adapt their operations to the changing environment. And coffee beans are just the beginning.
So, what does it look like when brands evolve in response to climate change? We’re already seeing examples of companies investing in climate adaptation in response to rising global temperatures. Here are some of the key ways that brands are adapting to the changing realities.
The more information that can be gathered to support climate-risk decision making, the more prepared we can be to adapt. Businesses are playing a role in enhancing preparedness by doing what business does best—innovation. Small tech companies and large brands alike are investing in building the new digital tools, data services, software and hardware, and early warning systems to help communities prepare for extreme weather events and impacts.
As extreme heat and weather events become more common, it’s critical that infrastructure is built to withstand the impacts. Companies are responding by enhancing buildings, factories, and equipment to withstand storms, floods, and wildfires. They’re also implementing innovative approaches to managing heat, including cool roofs and new insulation systems that promise to be more energy efficient than using air conditioning alone.
As part of these efforts, companies are also collaborating with governments on essential infrastructure projects. For example, tech giant Meta has joined a multistakeholder effort to protect its community of Menlo Park California from the impacts of climate change, called the Strategy to Advance Flood Protection, Ecosystems, and Recreation along the San Francisco Bay (SAFER Bay) programme. The initiative is focused on building infrastructure such as sea walls to increase resilience to flooding and sea level rise.
Ensuring that crops are resilient to climate change is a serious concern for industries that rely on agriculture for raw materials or their end product. In addition to efforts from brands like Starbucks to develop more resilient crops, brands are investing in new solutions for weed and pest control, irrigation, and fertilization to prevent crop damage and loss amidst rising temperatures.
As the world confronts challenges resulting from climate change, brands are developing new products and solutions to address the changing realities.
An industry that is leading the way is insurance, where companies are developing products specifically designed to offset climate risk and enhance the resilience of communities. Recognizing greater demand for insurance services as extreme weather increases in frequency and severity, many have crafted modern solutions for risk transfer in collaboration with both the public and private sectors.
Some insurers are also offering specialized advisory services to manage clients’ exposure to climate risks and provide more effective responses to losses from climate change-related hazards. Because of their unique role, insurance brands have the potential to play a powerful part in supporting and strengthening the implementation of climate-resilient infrastructure and technology.
As the impacts of climate change grow, protecting clean water is expected to be essential. Recognizing the immediate and long-term risks of water shortages, many companies have begun spearheading water conservation projects to ensure a sustainable supply of fresh water globally.
These initiatives include longstanding methods such as flood control projects, rainwater harvesting, and more efficient irrigation techniques, but other brands are also investing in the development of new solutions such as cloud seeding and atmospheric water capture systems. Some innovative companies like the Dutch firm Elemental Watermakers are even working on lower-energy approaches to desalination, producing fresh water using a solar-powered reverse osmosis system.
It’s become clear that to address the impacts of climate change, everyone must be involved in driving solutions. Brands are already playing a key role in supporting climate adaptation initiatives, both at a micro level and a larger scale. Recognizing the profound impacts that rising temperatures are already having on the planet, investment in adaptation on top of existing climate change mitigation initiatives is quickly becoming the norm for brands in every industry.
We want to hear from you. What climate challenges is your industry facing? What steps is your brand taking to adapt to them and mitigate risk? Follow Kind Atom on LinkedIn to join the conversation.
