Krymsk, Russia (photo courtesy Ilya Schurov, Creative Commons)
As the death toll climbs to more than 171 people killed and greater than $30 million USD in damages from recent flooding in Russia, government experts are calling for investment to help monitor and better prepare for future floods.
People and their livelihoods are affected each year because of natural disaster. The urgent need to build resilience through investment in innovation and technology can help protect communities. Click for the Reuters or Washington Post articles about Russia’s flood.
During GAIN’s May Annual Meeting in Washington, D.C., Dan Bena, PepsiCo Senior Director of Sustainable Development, commented on the damage done during a past flood in Russia, which significantly affected PepsiCo.
“A single extreme weather event could result in financial losses to PepsiCo’s potato supply chain in the double-digit millions of dollars,” Bena said. “You multiply that by multiple occasions over the course of several years and it has a high impact. I would say that we really do try to approach risk balanced by opportunity.”
To advance future strategy, PepsiCo assessed its outlook to the year 2030 in an undertaking called the “Scenarios 2030 Project.”
“We were looking at the creation of scenarios both within environment and within health and nutrition for the business and the communities we serve,” he said. “Those risks were diverse and included things like social license to operate and grow, financial risks.”
The exercise marked the first time PepsiCo has reviewed its comprehensive outlook 20 years in the future. The conclusion led them to understand even more the importance of protecting water resources, securing the agricultural food chain and leveraging people at the base of the pyramid – “not as beneficiaries of philanthropy, but as legitimate consumers,” Bena said.
Russia in the GAIN Index
To help companies such as PepsiCo assess countries where their employees work, live and distribute product, the Global Adaptation Institute (GAIN) created the GAIN Index: a navigation tool for the private sector in adaptation investment. GAIN is focused on heightening the awareness of the urgent need to adapt to climate change, urbanization and population growth.
Visit gain.org for the latest news in adaptation and read about how the private sector is contributing to investments that will save lives and improve livelihoods around the world, while also developing potential business opportunities. See the Russian Federation profile in the GAIN Index here.