{"id":12289,"date":"2016-11-04T16:18:19","date_gmt":"2016-11-04T20:18:19","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/can-clif-bar-sustain-its-reputation-of-sustainability-in-the-face-of-climate-change\/"},"modified":"2016-11-04T16:18:19","modified_gmt":"2016-11-04T20:18:19","slug":"can-clif-bar-sustain-its-reputation-of-sustainability-in-the-face-of-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-clif-bar-sustain-its-reputation-of-sustainability-in-the-face-of-climate-change\/","title":{"rendered":"Can Clif Bar sustain its reputation of sustainability in the face of climate change?"},"content":{"rendered":"

In 1992, Gary Erikson founded Clif Bar & Company after identifying that he could produce a better energy bar than those on the market. He has since positioned the organization as a \u201cproactive\u201d leader in the food industry\u2019s movement towards environmental sustainability. [1] From providing stipends to employees who commute by bicycle to investing $10M in organic farming research, Clif Bar is acutely aware of climate change. [2] As environmental pressures mount, can Clif Bar sustain its value proposition and business model? Further, even though Clif Bar has led the way for some of its peers, what more can it do to reduce climate change\u2019s impact?<\/p>\n

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The food and beverage sector is considered \u201cperhaps the most exposed of all sectors to changes in the environment.\u201d [3] Our planet\u2019s food supply is dependent on agriculture, which is predicated on adequate water supply, limited extreme weather events, and stable temperatures. [4] As the environmental effects brought on by climate change impact the type and quality of food available, Clif Bar will be forced to make decisions balancing its position as a leader in sustainability with its ability to maintain the quality and cost of its product.<\/p>\n

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Sourcing Challenges<\/strong><\/p>\n

Certified by the FDA in 2003, Clif Bar uses only organic ingredients. Although the term \u201corganic\u201d has several interpretations, it has three primary principles: no synthetics; no Genetically Modified Organisms (\u201cGMOs\u201d); and limited pesticides. [5] These principles are not hard and fast rules and are often bent when the environmental good outweighs the bad (natural pesticides, for example). It is unknown, however, how these regulations and principles will evolve to reflect our planet\u2019s changing resources. Additionally, in the face of decreasing yields, increasing pests, and diminishing nutritional value, the temptation of farmers to use GMOs and pesticides will likely increase, which may impact Clif Bar\u2019s supply chain. [6] Clif Bar will need to incentivize its suppliers in order to maintain its integrity, manifested in its commitment to Clif Bar\u2019s organic status.<\/p>\n

Further, dwindling crops may threaten the recipe Gary Erikson deliberately crafted to meet his own demand as a cyclist and scaled to meet the tastes of millions of consumers. Clif Bar may need to adapt this recipe to reflect a crop mix that is more sustainable. If ingredients (such as nuts and fruit) become scarce, they may become too expensive for Clif Bar to offer at an attractive price point. Alternatively, if ingredients divert a disproportionate amount of water or other resources, Clif Bar may risk its reputation by continuing to include them. The availability and resource intensiveness of ingredients will cause Clif Bar management to strike a balance between its brand commitment to the environment and its product design.<\/p>\n

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Manufacturing Progress<\/strong><\/p>\n

In addition to its responsibility to source ingredients, Clif Bar is a manufacturer with several facilities across the US. In recent years, Clif Bar has made its manufacturing practices more green. For example, in 2015, the organization opened a manufacturing plant in Idaho committed to using 20% less energy than other bakeries through features like more efficient refrigeration. [7] Further, almost all Clif Bar products use recyclable packaging, and the organization has recently cut the amount of packaging material per bar by 10%, as demonstrated in Figure 1. [8]<\/p>\n

Figure 1:<\/strong><\/p>\n

\"clif-bar\"<\/a><\/p>\n

Manufacturing Opportunities<\/strong><\/p>\n

Even though Clif Bar has been proactive thus far, I recommend the organization do more\u00a0to reduce the environmental impact of its manufacturing practices :<\/p>\n