Dear John,
Today, Ceres released Feeding Ourselves Thirsty,a benchmarking report that ranks 40 of the largest global food companies based on their management of water risks in their operations and agricultural supply chains. And while companies are improving their performance year over year, the report shows that on the whole, the food sector is not doing enough to protect water supplies and mitigate growing risks. |
| The companies benchmarked include the largest players in the food and beverage industry and were analyzed against actions in four categories of water risk management.
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The top scoring companies, out of a possible score of 100, by industry were: Unilever (Packaged Food) up 14 points from 2017; Coca-Cola (Beverage) up 4 points from 2017; Olam (Agricultural Products) up 6 points from 2017 and Smithfield Foods (Meat) up 5 points from 2017. Mars, Inc. (Packaged Food) was the most improved company, increasing its score by 27 points since 2017.
But our analysis also found that, despite 77% of companies in the report specifically mentioning water as a risk factor in their financial filings, effective management of water risk still lags, with an average overall company score of only 38 out of 100. |
The food sector uses more than 70% of the world’s freshwater to grow crops, feed livestock, and process ingredients.
The U.N. projects that global demand for water will increase by 20-30% by 2050, and a recent MSCI analysis of food companies found that $415 billion in revenue may be at risk from lack of water availability—while $248 billion could be at risk from changing precipitation patterns affecting current crop production areas. These are stark figures that underscore the need for the food sector to be better stewards of our shared water resources.
You can learn more about water risks and the food sector, explore company scores and see industry progress at feedingourselvesthirsty.ceres.org.
Over the coming year, Ceres looks forward to engaging with the companies ranked in the report and their investors to drive positive change and lead us to a more sustainable water future. |
Onward!
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Kirsten James
Program Director, Water
Ceres | |
| P.S. Join us for a free webinar on December 10th that will bring together corporate and investor experts to discuss the implications of this analysis and the opportunities for food and beverage companies to create a water-smart future—from the boardroom to the farm.
Learn more and register today. |
