Companies Prep for Climate Change
Consumer goods manufacturers are factoring in climate change impact into how they do business.
Feb 27, 2019
BERLIN – More consumer goods companies are working to reduce their carbon footprint, meet the challenges of climate change on their supply chains, and show customers they care about the environment, The Associated Press reports. The nonprofit organization CDP surveyed 16 major companies on their response to global warming.
For example, AB InBev has been testing a barley variety that uses less water to grow, while Unilever has tinkered with detergent formulas to clean at lower “eco” temperature settings on washers. “We were surprised how much these companies were aligning themselves with changes in consumer preferences,” Carole Ferguson, who led the report, told the AP.
Other companies have started branching out into plant-based products, such as PepsiCo’s recent purchase of Health Warrior. These products and acquisitions contribute to the company’s overall “green” portfolio.
CDP also looked closely at how the surveyed companies were responding to climate change. “Climate change is going to be disruptive to revenues and costs,” Ferguson said. “What I would want to know as an investor is what kind of strategy they have going forward.”
Overall, the nonprofit discovered that European consumer goods companies are better prepared for climate change, such as France’s Danone and L’Oreal. CDP noted that the European Union had stricter regulations concerning waste and global warming, which might contribute to the better performance of those companies.
