(Credit: WWF)The World Wildlife Fund (WWF) has released a report exploring how food companies have implemented incentives to their suppliers, specifically farms, in order to lower Scope 3 emissions.
The report, Incentives at the Farm: How Companies Are Moving from Setting Climate Targets to Delivering on Them, describes the tactics used by companies towards reaching farm-relevant sustainability outcomes. Over 90 experts from corporations, industry associations, and civil society groups reported on tactics such as price premiums, financing, knowledge sharing, new products, and contracting.
Agricultural practices account for more than 70% of food-related emissions, so the industry serves as a crucial target as companies work to meet emissions reduction goals and climate targets.
“Farmer-focused incentives are a necessary tool for shifting behavior at the source of most food-related greenhouse gas emissions,” said Emily Moberg, WWF director of Scope 3 carbon measurement and mitigation, a co-author of the study for the Markets Institute at WWF. “With only seven harvests left in which to reach our 2030 climate goals, companies must deploy effective incentives and retire ineffective ones on a much broader, faster scale.”
More than 90% of emissions in the food sector are Scope 3, which means they originate from their supply chain. The global food system is also responsible for about a third of total global greenhouse gas emissions.
Accountability for reducing and reporting on Scope 3 emissions has increased as shareholders and governments set ambitious climate targets. As farmers already experience relatively thin profit margins, additional financial capital is needed as they transition to sustainable farming practices.
Incentives are implemented in order to allow farmers to turn to practices such as regenerative agriculture, carbon sequestration, and reducing water use, to name a few. The WWF report emphasizes the wide range of incentive programs that have been used.
“Developing and deploying incentives to address Scope 3 GHG emissions is no small feat, especially for the food sector,” said Katherine Devine, director of business case development at the Markets Institute and a co-author of the study. “With regional differences, crop and farmer diversity, thousands of products in some supply chains, and other challenges, there is no one-size-fits-all solution. We need to learn faster to address climate change’s existing and growing impacts.”
