Climate Change Risks and Supply Chain Responsibility: How should companies respond when extreme weather affects small-scale producers in their supply chain?

Overview

What role can companies play in strengthening the capacity of small-scale producers in developing countries to adapt to climate change, and in doing so, make their global value chains more resilient? While some leading companies have made progress in taking greater responsibility for what happens throughout their supply chains, there has been little discussion about the threat that climate change poses to the livelihoods of small-scale producers. Through interviews with three companies: Starbucks, Marks & Spencer, and The Body Shop, the paper examines how smallholders involved in coffee production in Colombia, sesame in Nicaragua, and cotton in Pakistan have been affected by climate change and what it means for the companies’ businesses. From this research, Oxfam identifies key actions for companies to begin to address the challenges to small-scale producers, and raises questions for further discussion.