As one of the world's largest casual dining companies with more than 1,450 restaurants in 21 countries, Bloomin' sources commodities that have high carbon footprints, including palm oil, soy, beef, and pulp/paper, which are leading drivers of deforestation globally.

Deforestation and agriculture contribute to climate change. According to the Intergovernmental Panel on Climate Change, agriculture, forestry, and other land use change is responsible for 23 percent of total net anthropogenic greenhouse gas emissions, nearly half of which is attributable to deforestation. Agricultural emissions are on track to contribute around 70 percent of the total allowable emissions by 2050. Deforestation also undermines ecosystem benefits critical to agriculture, including soil protection, pollination, and precipitation patterns.

Climate change presents significant risks to restaurant businesses and their supply chains. The 2018 National Climate Assessment found "climate change presents numerous challenges to sustaining and enhancing crop productivity, livestock health, and the economic vitality of rural communities," and rising temperatures are "the largest contributing factor to declines in the productivity of U.S. agriculture."

In its 2020 10-k, Bloomin' acknowledges that long-term changes in commodity prices could adversely affect financial results. According to research presented at an Agricultural and Applied Economic Association's Annual Meeting, climate change will increase world crop price volatility fivefold in the coming decades.

Companies associated with deforestation and with carbon-intensive supply chains may be impacted by regulation designed to mitigate climate change. The Principles for Responsible Investment identifies regulation of greenhouse gases as "inevitable."

Bloomin' risks falling behind competitors. Bloomin' does not recognize climate risk in its 2020 10-k nor does it disclose either its carbon or forest footprints. Bloomin's modest goal to reduce energy usage by 10 percent addresses only a small fraction of its total emissions and does not address supply chain emissions. Bloomin' does not have a policy to eliminate exposure to deforestation nor does it disclose the criteria of its sustainable sourcing policies.

By contrast, competitors including Chipotle, McDonald's, and Yum! Brands have adopted commitments to reduce emissions throughout their full value chains. (Bloomin' identifies growing competition from quick service and fast casual restaurants as a risk in its 2020 10-k.)

Failure to meet shifting consumer expectations and to keep pace with competitors may pose risks to Bloomin', including restricted market share, supply chain disruption, and loss of goodwill.