Multinational corporations are beginning to take the economic consequences of climate change seriously.
Coca-Cola, a multinational corporation that has always prioritized economic efficiency, saw its fortunes change in 2004 when it lost its lucrative business license in India due to severe water shortages. Global droughts depleted the water resources needed for Coca-Cola's soft drink production, leading to escalating financial losses over the past decade. Today, Coca-Cola is forced to accept the view that climate change is a serious economic disruptor. "Increasing droughts, more unpredictable changes, and once-in-a-century floods every two years," says Jeffrey Seabright, Coca-Cola's Vice President of Environment and Water, listing recent climate issues. These problems have also disrupted the supply of sugarcane and sugar beets, as well as citrus fruits needed for juice production. "When we consider the most needed ingredients in our formulations, we see these events as threats to the company's normal operations." Coca-Cola's experience reflects a new trend in the perceptions of American business leaders and mainstream economists. Global warming is now seen as a destructive force that will lower GDP, increase food and commodity costs, disrupt supply chains, and exacerbate financial risks. Due to supply chain disruptions caused by extreme weather, Nike, a multinational corporation with over 700 factories in 49 countries worldwide, has publicly expressed its stance on global warming. In 2008, floods forced Nike to temporarily close four factories in Thailand. Because the production of sportswear relies on cotton, the company faced challenges in production.