Once a company has pinpointed climate risk “hotspots” within sourcing regions, they can identify which suppliers are operating within those hotspots and how much supply comes from each of the climate risk zones (requiring incremental adaptation, systemic adaptation or transformational adaptation). For a full explanation please see photo below.
The chart below shows a simplified version of how companies may begin to identify focus areas based on climate risk and volume of supply. The selection of the focus area is an iterative process, requiring both climate data and knowledge of sourcing areas to identify priority populations. Other variables may be included to fit companies’ strategic needs.
|Country||Specific Location||Risk Zone||Field Intelligence||# Farmer Suppliers||% of supply|
|Honduras||Ocotopeque||Systemic/Transformational||Increased heat and decreased rainfall resulting in harder to manage pests and reduced yield||10.000||25%|