>

Search On This Site

Custom Search


It only takes a few moments to share an article, but the person on the other end who reads it might have his life changed forever
Subscribe via RSS



Contact Information: 
Submit: articles [ at ] investmentwatchblog [dot] com 
Advertising: ads [ at ] investmentwatchblog [dot] com 
General: admin [ at ] investmentwatchblog [dot] com

Water Risk in Supply Chains Draws Investor Scrutiny


Jonas Kron is worried about water. The investment adviser at Trillium Asset Management, a $900 million fund manager that focuses on environmentally sustainable investment, fears the world’s dwindling supply of fresh water is hurting the companies he has invested in. For most of the year, Kron has led a shareholder challenge to J. M. Smucker, the strawberry jam maker that also owns Folgers coffee. Kron says the company hasn’t demonstrated it’s prepared for the market changes that are sure to come as climate change reduces the size of the world’s coffee growing area. The conversation has been difficult in part because corporate leaders still seem unaware they need to factor water risk into their financial projections, says Kron. “We’re not talking about charity here,” says Kron. “These are investors seeking to have the company address the risks in its supply chain.”

Smucker’s says it’s hedging against potential increases in raw material prices, but Mother Nature, Kron points out, can defeat any hedge. “At a certain point, you need to deal with the fundamental, underlying fact that these are crops grown with soil, sunlight, and water, and you can’t escape the laws of nature.”

http://www.bloomberg.com/news/2012-01-10/water-risk-in-supply-chains-draws-investor-scrutiny.html

21 Total Views 1 Views Today
Did you already share this? No? Share it now: