Climate Change Adaptation - Insights from business perspective

1. Climate Change Adaptation
Insights from business perspective
Wolfgang Weinmann
CCXG Global Forum
OECD Centre , Paris, 18-19 March 2014

2. @Cafedirect_HQ
What will be covered
About Cafédirect
Understanding the problem & approach to cc
Why invest in cc adaptation
Interventions & investment
Learnings
Scaling up opps
What’s needed

3. @Cafedirect_HQ@Cafedirect_HQ
Mission
Cafédirect is an independent
coffee, tea and cocoa company.
We champion the work & passion
of smallholder growers, delivering
great tasting drinks to improve
livelihoods, whilst pioneering
better ways of doing business

4. @Cafedirect_HQ@Cafedirect_HQ
Approach to climate change challenge
Farm-to-cup carbon footprint along full supply chain
regardless of control or influence
Look into full picture: hence
consider adaptation as much
as mitigation on climate
change challenge
seek collaboration to tackle the issues: b2b, public-
private partnerships, engagement with end consumers
Integrated within overall business strategy, not a
separate add-on

5. @Cafedirect_HQ@Cafedirect_HQ
Why invest in climate change
Supply:
reinvest in our supply chain of vulnerable tea/ coffee/cocoa
communities to secure future quality & availability
Triple-bottom-impact:
High social- environmental impact investment
Env: improved agricultural practices; biodiversity enhancement;
natural resource protection & restoration; improved resilience
Social: reduced vulnerability levels of smallholder communities;
improved resilience
Story:
pioneering work = point-of-difference in the marketplace
Engages end consumers and customers alike with human side of
product

6. @Cafedirect_HQ@Cafedirect_HQ
Interventions & investment
4 countries / 4 smallholder coffee/tea organisations/21,000
farmers: risk-opportunity analysis methodology developed;
site-specific climate research & risk maps created;
adaptation strategies prioritised and implemented;
handbooks created; knowledge & information sharing
secured;
Type of adaptation interventions: updated agricultural
practices; diversification; new technology; natural resource
management; awareness raising;

7. @Cafedirect_HQ@Cafedirect_HQ
Interventions & investment
mixture of public – private funding:
Cafédirect, giz/ Germany,
smallholder organisations,
voluntary carbon market, access
to wider public/ private funding
for smallholders

8. @Cafedirect_HQ@Cafedirect_HQ
Results so far for Cafédirect
Supply side:
too early to tell….. adaptation measures on farm will take various years to
materialise in yield and quality improvement and/or security
Triple-bottom-impact:
Delivers big time on overall impact as a company: shareholders expect high
social- environmental impact next to commercial
Smallholder farmers much more aware of issues & increased capabilities to
adapt
Additional resources mobilised for smallholder communities
Story:
Coverage of work in major UK broadsheets, in trade publications and
environmental journals
Wide use of social media to spread the coverage of cc work

9. @Cafedirect_HQ@Cafedirect_HQ
Learnings
Farmers need to be in charge of process:
all about their individual strategies
Kayonza/ Uganda
CESMACH/ Mexico
Needs stronger impact data to know what works best/ roi on
adaptation side
Link up more with agricultural science community on this

10. @Cafedirect_HQ@Cafedirect_HQ
CESMACH/Mexico: solar dryers

11. @Cafedirect_HQ@Cafedirect_HQ
CESMACH/ Mexico:
coffee quality control
Rolando Roblero López
scored highest (84.5 SCAA)
on quality in his community-
he did use a solar dryer!

12. @Cafedirect_HQ@Cafedirect_HQ
Learnings
Conservation of genetic diversity / selection of resistant
plants
Financing of sustainable adaptation for agriculture – away
from ‘aid’-approach towards market oriented tools (carbon
trade; environmental services; etc.)
Conflicting cycles: short term business  long term cc

13. @Cafedirect_HQ@Cafedirect_HQ
Replication/ Scaling up
Risk-Opportunity-Analysis ROA methodology now used by
different stakeholders (RUTA/ Central America; giz/
Germany; smallholder organisations, Cafédirect Producers’
Foundation, etc.)
Adaptation initiatives rolled out to further 10 smallholder
organisations across East Africa (Kenya, Uganda, Tanzania)
and Latin America (Mexico, Haiti, Dom Rep), reaching ≈
55,000 farmers
Replication of ROA methodology, location specific
adaptation strategy design, enhancing farm resilience

14. @Cafedirect_HQ@Cafedirect_HQ
Wider scaling up opps
Full integration of cc adaptation into smallholder business
strategies, not in isolation
Access the voluntary carbon market: approach of linking
various communities is promising eg reforestation, energy
stoves, etc.
On-farm: more research/ tools on carbon capture available
eg soil, shade trees, biochar etc.
Intra supply chain approach: joining up on other end
Industry bodies could convince competing brands/
companies to collaborate on upstream supply chain work

15. @Cafedirect_HQ@Cafedirect_HQ
What is needed from business?
Complete re-think on how we measure success
importance of Integrated Accounting
Beyond a crisis mentality- be more proactive
More significant collaboration across & between business,
public sector and academia/ scientific community

16. @Cafedirect_HQ@Cafedirect_HQ
Kayonza/ Uganda project:
wetland protection and afforestation