Business on the Edge 2024

Recommendations to build industry and societal resilience in the agriculture, food and beverages system The following recommendations give agriculture, food and beverages companies an array of solutions where they can take the lead and manage growing risks from climate hazards in agriculture, food and beverages supply chains: Integrate local business continuity and crisis management planning to mitigate exposure to extreme weather events –Develop five- and 10-year strategies for locations and commodities at high risk from climate hazards, including operational resilience and recovery planning at key processing and production facilities. –Invest in new agriculture techniques, climate- resilient crop variations, diversifying supply chains, securing physical infrastructure and mitigating water stress. Reinvent core products and packaging for flexible ingredient and raw material formulations –Rethink product design to allow for flexible sourcing of raw materials and new formulations to incorporate more resilient and climate- adapted ingredients. Engage with consumers to raise awareness and promote sustainable consumption preferences –Shape demand by engaging with consumers to create new markets for innovative, sustainable and climate-smart products at affordable price points. Collaborate across the value chain to improve productivity per hectare and water efficiency –Agriculture systems need investment in regenerative practices to increase capacity without consuming more land and to build long- term resilience to climate hazards. –Depending on the location and specific needs, these interventions could include topsoil regeneration, enhancing local biodiversity, intercropping and agroecology. –Additional practices like minimizing soil disturbance, rotational grazing and cover cropping are crucial to restoring soil structure and vitality. –By investing in regenerative methods, companies not only protect their supply chains but also enhance ecosystem services, sequester carbon and contribute to biodiversity conservation that builds societal resilience. –Business will need to work with local government and financial institutions to de-risk the transition of farming communities to new production methods. Adaptation case studies in the agriculture, food and beverages system FIGURE 14 Sources: Unilever , Cargill (press release), Cargill (website), Bayer , Louis Dreyfus Company. 1 Unilever Unilever expects typhoons and floods to disrupt operations, so they partnered with renewable energy developers to install solar plants at six Indian factories.2 Cargill Cargill is working to help scale and support farmer adoption of regenerative agriculture, with a vision of making regenerative agriculture common place across the company’s global supply chains. This includes a commitment to advancing regenerative agriculture practices across 10 million acres of North American agricultural land by 2030. Regenerative farming practices focus on building resilience and delivering positive outcomes such as improved soil health and water quality, enhanced biodiversity, and increased productivity.3 Bayer Bayer developed the Arize hybrid rice variety, which is disease-resistant, high-yielding, and more tolerant to salty water. This innovation helps farmers in Vietnam’s Mekong Delta protect their rice harvests from reduced rainfall and rising sea levels pushing saltwater further inland. They build strong partnerships with governments, foundations, institutes and NGOs to address rice production challenges with innovative and sustainable solutions. The company is also working on developing new parental lines with greater tolerance to extreme temperatures.4 Louis Dreyfus Company Louis Dreyfus Company (LDC) grants LDC Climate Resilience Prize of CHF 100,000 cash award for startups enhancing climate resilience in agriculture and food value chains. LDC aims to support sustainable solutions through its corporate venture capital program which invests in early-stage companies with transformative products and technologies. Business on the Edge: Building Industry Resilience to Climate Hazards 29