Nestle, the world's largest food and beverage company, is responsible for brands like Toll House Chocolate Chips, Kit Kats, Nesquik, Cheerios, and Häagen-Dazs.
The company said in its disclosure that changes in extreme temperatures might favor the growth of raw materials like cocoa, sugar, and soy by increasing yield and extending their harvesting period.
Nestle also noted in its disclosure that northern Europe is expected to see sugar yield increases between 2021 and 2050, according to the Hadley Center for Climate Prediction and Research model.
But researchers think it's not that simple. Christian Bunn, a scientist at the International Center for Tropical Agriculture (CIAT), told Business Insider that increased temperatures and unreliable rainfall will reduce raw material quality for companies like Nestle.
"My take is that the companies underestimate the scale of the challenge," he said.