Climate already threatens agriculture, ports and even the internet, but adaptation projects are rare

Strengthen infrastructure against floods and storms, invest in more resistant agricultural seeds, improve water storage. These are some initiatives that could help companies protect themselves from climate change.

However, as highlighted by the IPCC (UN Intergovernmental Panel on Climate Change) in February, most global funding is being directed towards projects that aim to reduce carbon emissions, disregarding the importance of adaptation.

The market’s assessment of the seriousness of the climate issue can help to explain why the topic remains neglected.

In January of this year, a survey by the consultancy PwC showed that only 36% of Brazilian executives believe that climate change is a major threat to the growth of companies in the long term. Globally, the proportion is even lower: 33%.

Businesses fear global economic shocks and cyber attacks more than environmental events.

For André Ferretti, environmentalist and manager of the Boticário Group Foundation, there is still an immediate view of the private sector on the climate.

“It is necessary to think about a more distant future. There are trends of greater intensity and frequency in extreme weather events that can drastically affect the business, whether in relation to the operation, suppliers or employees”, he says.

This is also the opinion of Vanessa Pinsky, an ESG specialist and researcher at USP. In her view, understanding climate change as a major challenge for development is still incipient in Brazil.

“Companies assume targets for reducing carbon emissions, but do not include the climate in the organization’s risk matrix. This makes the demand for adaptation projects go far from the agenda of the boards of directors.”

ports are threatened

In some sectors, however, the problem is imminent. A study carried out by Antaq (National Waterway Transport Agency) showed that climate change is already threatening ports in Brazil.

The main risk is the windstorms, which already affect seven ports and could become a future problem for another nine facilities on the country’s coast. Storms, storm surges and rising sea levels are also a cause for concern.

“Impacts on port operations due to climate change are already a reality in Brazil, and, under current conditions, there is a tendency to worsen in this scenario”, the document states.

The study recalls that ports are responsible for 95% of the country’s foreign trade flow, moving around 14% of GDP.

Asked about the existence of initiatives to reduce the impact of gales, storms and storms, the Port of Santos – the largest in the country – said that it is participating in a new survey to analyze “potential risks of climate change”.

“Based on the information generated by the study, which is expected to be concluded by June this year, SPA [Santos Port Authority] will be able to assess present and future climate risks, so that it can include the climate variable in the decision of planning its investments and in the sustainability of port operations.”

Internet can also suffer from the weather

In 2018, the CDP (Carbon Disclosure Project) showed that 215 of the 500 largest companies in the world could lose around US$ 1 trillion (R$ 4.71 trillion) due to climate change.

One of the companies cited was Alphabet (which owns Google), which will likely have to deal with rising costs for cooling its data centers.

But heat isn’t the only threat to tech companies. In a 2018 article, researchers from the universities of Oregon and Wisconsin, in the United States, analyzed the vulnerability of the internet to climate risks.

Based on projections of sea level rise, the study assessed the amount and type of infrastructure that should be submerged over the next few years. The bottom line is that by 2033, more than 6,000 km of fiber cables could be underwater in the United States alone. As many data centers and telecommunications equipment are at risk of being surrounded by water.

THE Sheet looked to Google to understand if the company has initiatives to minimize the impacts that climate change can bring – or are already bringing – on business.

The company responded that it has nothing specific to share about climate adaptation and economic impact.

Agro will be more impacted

Brazilian agribusiness is one of the most affected by the effects of climate change. Higher temperatures already affect coffee and oranges, in addition to causing the death of birds, cattle and swine.

Crop failures add to the list of losses. In two years, Brazil should lose 41 million tons of grains due to events such as droughts, frosts and excessive rainfall.

THE Sheet reached out to leading companies in the industry to talk about extreme event protection initiatives.

In a statement, Cargill, a food production and processing multinational, said it had nothing in this specific profile, and reinforced its mitigation actions, such as using biomass to generate energy and reduce carbon emissions.

Bunge, a giant in the international trade of soy and other agricultural commodities, pointed out that it does not have cultivation areas and that its operation consists of the purchase and processing of grains.

“We have incorporated detailed details of aspects related to sustainability into our risk management process,” Bunge said in a statement. “Such a process includes risks arising from changes in weather patterns, water scarcity, deforestation, farmer productivity, increased taxation and regulation of GHG emissions, among others,” she added.

BRF, which owns brands such as Sadia and Perdigão, said it uses technology to map the origin of the grains and mentioned a commitment to reduce water consumption by 13% by 2025.

Among the meatpackers, JBS and Marfrig did not respond about their initiatives. Sought for comment on how it has dealt with climate risks, Minerva Foods said it would not participate in the report.

Adaptation starts to enter the radar

Some companies have incorporated climate adaptation into their sustainability strategies.

Neoenergia, in the electricity sector, is betting on the diversification of its portfolio on several fronts (wind, solar, hydroelectric and natural gas thermoelectric) to shield the business from problems such as drought.

“The topic is on the radar and we have carried out studies based on a climate risk assessment methodology to map adaptive planning, institutional and physical measures, in order to eliminate and minimize possible effects of changes resulting from climate change”, says Solange Ribeiro. , Deputy CEO of Neoenergia.

According to her, the company invested R$ 3.1 billion in the renewables segment in 2021, which represents an increase of 246% over the previous year. Of this total, R$ 2.8 billion was allocated to wind farms.

Another company that has been following the matter is Ambev. Extremely dependent on water, the company highlights its platforms for monitoring water consumption and setting goals to reduce consumption per liter of beer produced.

“We know that preparation, content and knowledge management make businesses more resilient and are part of the strategy for adapting to climate change”, says Karen Tanaka, sustainability manager at Ambev.

The executive says that the brewery seeks to diversify its suppliers of agricultural inputs in different geographic regions, which helps to reduce the risks of shortages due to extreme events.

Other programs are also part of Ambev’s strategy, such as regenerative agriculture initiatives and the preservation of watersheds and forests — which help both in climate mitigation and adaptation.

“From a broad diagnosis of each basin [hidrográfica]we gathered a series of partners and drew up a local plan with actions that include environmental education, ecological restoration, conservation practices and PES [Pagamento por Serviços Ambientais]”, he explains.