Good for business, people, and the planet
- RIE Solutions
- Jan 29
- 5 min read
Do you enjoy starting your day with a delicious cup of coffee that smells intoxicating? If so, are you aware that in the not-too-distant future, drinking coffee may be a real luxury?
You see, a simple thing like your cup of coffee is vulnerable to climate change. Climate change impacts coffee production through shifting weather patterns, soil degradation, loss of pollinators, and increased mycotoxins. Experts warn that by 2050, Coffea Arabica, which makes up about 60% of the world’s coffee, could decline by nearly 80%. The people around the world who drink the two billion cups of coffee consumed every day could be in for a shock. Coffee producers, processors, retailers, traders, financiers, as well as your local coffee shop face a challenging future.
Of course, having access to coffee will be the least of our worries in the face of other challenges that we are likely to experience due to the climate crisis. Food shortages, loss of homes and lives, severe weather conditions, power cuts, and water shortages are just some of the potential outcomes.
Have you given much thought to climate change?
Besides the absence of coffee what else could be in store for you, your clients, and your business? Have you thought about the future risks? How will you mitigate these risks? Is there anything you and your business can do to address the climate change challenge?
It’s complicated. Just look at the recent report in The Guardian on BP abandoning their plan to significantly cut oil output by 2030. While it’s disappointing from a climate change perspective the BP shareholders and investors may have a different point of view. In July this year, the Institutional Investors Group on Climate Change (IIGCC) produced a report on the imperative of addressing methane emissions from fossil fuel operations saying “There is no version of a credible energy transition plan that does not drastically reduce methane emissions from fossil fuel operations by 2030.” So, how do you square that circle? The polluter pays principle if brought to bear globally on the likes of BP could impose a carbon price, a charge on their emissions, equivalent to the potential costs caused by future climate change. How does a potential carbon price affect investor sentiment and your advice to clients?
The stakes are high if not enough is done to mitigate climate change. A sombre list of the possible outcomes from climate change published by the United Nations include:
rising temperatures
more severe storms
increased droughts
warming oceans
loss of species and biodiversity
food insecurity
health risks
poverty, and displacement affecting ecosystems and human populations globally
With the global population expected to increase by a further two billion by 2050 and hundreds of millions of people already experiencing acute food shortages a global food crisis is a distinct possibility. A frightening prospect and not a great legacy to leave our children and future generations.
The good news
The good news is that you can play a crucial role in addressing climate change by:
how you do business
how you engage with your clients
how you respond and act
1. How you do business
Educate yourself and your team. Set up a group to look at opportunities for your business to be more sustainable e.g. remote working.
Reduce your carbon footprint and implement sustainable practices.
Question service and product providers and other suppliers on their green credentials and encourage them to adopt sustainable practices.
Question the status quo e.g. is profitability an appropriate measure of success when it doesn’t consider the cost to the environment.
Use an ethical bank for your business finance.
Focus on the Environmental, Social, and Governance (ESG) elements in financial decision-making to manage climate-related risks and opportunities.
Foster innovation and collaboration to drive sustainable growth. Collaborate with fintech businesses to leverage new technologies to improve efficiency, reduce costs, and enhance customer experiences while promoting sustainability.
Set and follow clear standards and expectations for ESG practices within your business.
Consider adopting the six UN Principles of Responsible Investment.
Consider the benefits of becoming a B Corporation and support other B Corporations when buying products and services.
2. How you engage with your clients
Educate your clients on the power of their investments to do good and leave a beautiful legacy.
Help your clients make informed decisions by introducing them to the world of sustainable, ethical, and values-based investment. Focus on investment opportunities that not only reduce emissions but also ensure social equity and inclusivity. Discuss the impact of climate change on the potential future of your clients. Alan Whittle of Unburdened Solutions and Rebecca Kowalski of Overstory Finance have created some useful resources to help. Their 10 short videos on Sustainable Finance can be a good starting point.
3. How you respond and act
Cultivate a mindset focused on what the Harvard Business Review calls the Triple Bottom Line: profit, people, and planet, where social and environmental impacts are measured.
Investigate the potential for positive change through sustainability initiatives without sacrificing financial success.
Be a role model
Act now
What can ‘I’ do?
Sticking with the coffee theme above, one simple thing that you could start with is to stop drinking coffee using disposable cups as they are a significant source of waste in the UK, with the country using around 2.5 billion of them each year. However, less than 1% of these cups are recycled, and the rest end up in landfill, producing over 152,000 tonnes of carbon dioxide annually, which is equivalent to the emissions of more than 33,000 cars.
But there are many other simple things that you can do to create a beautiful future for yourself and generations to come. Here are a few ideas:
💚 Grow your own organic food in whatever space you have. Start with something simple like a single tomato plant (it doesn’t have to be a food forest!). It’s a great family activity that kids love, which reconnects us with nature, the food we eat, and teaches vital skills.
💚 Stop food waste in your home (or at least limit it).
💚 Eat more fruits and vegetables and reduce your meat and dairy intake.
💚 Get involved with your community by planting trees, growing food on an allotment, cleaning up litter, helping with environmental awareness etc.
💚 Refuse, reduce, reuse, upcycle, recycle, repurpose.
💚 Be conscious of the amount of water you use.
💚 Read the labels and try to avoid buying products that are harmful to nature.
The most important thing that you can do is take action. Reflect on the information above, learn more, then act. Like Wangari Maathai’s hummingbird, just do the best you can.
Conclusion
It’s not just coffee. In recent years, the global financial landscape has witnessed a significant shift towards sustainable finance and investment principles, driven by a growing recognition of the urgent need to address pressing environmental and social challenges. Concepts such as decarbonisation, divestment, net-zero emissions targets, and biodiversity conservation have taken centre stage in discussions surrounding responsible investing.
You too can play your part in mitigating the climate crisis. Act today 🙏.
Check out these links below for further information and inspiration:
THE HUMMINGBIRD AND THE FOREST FIRE – WANGARI MAATHAI.
“I am doing the best I can”
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