An Introduction to Assessing Climate Resilience in Smallholder Supply Chains
For companies sourcing from smallholders, evaluating resilience to climate change poses particular challenges. Smallholder sourcing entails working with many, diverse farmer communities around the globe, each with its own agricultural practices, cultural context, and risk exposure. Moreover, companies often lack fine-grain visibility into smallholder performance due to the length of their supply chains. Even companies closer to smallholder farmers may seek guidance on how to translate data on climate risk and smallholder performance into targeted action plans across their sourcing geographies.
The guide breaks down the complex concept of resilience into manageable themes and suggests a five-step process for applying these themes with particular suppliers – namely smallholder farmers and intermediary aggregators (e.g., farmer cooperatives, small private processors) –to better understand and manage climate risk:
Know your risk: Identifying threatened geographies and crops
Know your farmers: Identifying where risk sits in your supply chain
Know your resilience: Matching risk to resilience capacity
Know how to build resilience: Designing strategy or targeted interventions in response to diagnostic findings
Know your progress: Monitoring through continuous measurement
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