Agricultural supply chain: how to simplify data processing to achieve SBTi targets and Scope 3 reductions?
MyEasyFarm
Regenerative Agriculture, Carbon & Precision Farming to help farmers & agrifood companies for agro-ecological transition
In regard of the climate emergency, the agri-food sector finds itself at the heart of a major challenge: to drastically reduce its greenhouse gas (GHG) emissions. With the Paris Agreements and the CSRD, regulatory pressure is intensifying, pushing players in the agricultural supply chain to act quickly.
According to the French Ministry of Agriculture, agriculture and the agrifood industry are among France's main greenhouse gas (GHG) emitters (along with transport and construction).
These emissions come from :
In response, initiatives such as the Science Based Targets initiative (SBTi) and Scope-based emissions calculations have emerged, offering guides for measuring and reducing carbon impact.
According to a Deloitte study, on average, 90% of emissions from agribusinesses come from Scope 3, in particular upstream agriculture.
Three key factors are driving agri-food companies to better assess their GHG emissions, from agricultural production to distribution: regulatory pressure and the evolution of specifications towards greater sustainability, growing pressure from consumers and society, and the need to secure long-term supplies.
1. Understanding SBTi and Scope 3
+1.5°C is the rise in the earth's temperature that the signatories of the Paris Agreement pledged not to exceed by 2015. But this objective can only be achieved with the active participation of businesses in the fight against global warming. The SBTi (Science Based Targets Initiative) was created to guide them towards "net zero emissions" based on scientific data.
What does this initiative involve? How can it help you move towards carbon neutrality? What criteria must you meet? Here are our answers.
a) What is SBTi?
The SBTi, or Science Based Targets initiative, is an organization that helps companies set science-based targets for reducing greenhouse gas emissions.
Launched in June 2015, it proposes a methodology aligned with IPCC recommendations and provides guidelines, criteria and advice for reducing carbon footprints.
SBTi is supported by the Technical Advisory Group, a group of experts mainly from the field of corporate social responsibility. Methodologies are based on scientific research that provides concrete solutions for decarbonization.
As a certification body, SBTi awards carbon certifications to companies aligning their GHG reduction targets with a trajectory to limit global warming to 1.5°C, in line with the 2015 Paris Agreement.
Also known as the "Net Zero Standard for Business", SBTi is the result of collaboration between several institutions:
It should be noted that the SBTi-FLAG methodology sets decarbonization targets for companies that have an impact on land through their economic activities.
💡Find out more about SBTi Flag
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b) Greenhouse gas emissions in the agro-industry: focus on Scopes
"Scopes" are categories used to classify a company's greenhouse gas (GHG) emissions according to their source. These categories are defined by the Greenhouse Gas Protocol (GHG Protocol), an international standard for GHG accounting and reporting.An agro-industrial company's emissions fall into three categories:
Scope 1: Direct emissions
Scope 2: Indirect energy emissions
Scope 3: Other indirect emissions
Scope 3 deserves particular attention in the agro-industry. It encompasses all indirect emissions not covered by Scopes 1 and 2, notably those linked to the production of agricultural inputs, transport and product use.
c) Scope 3 in the agro-industry: challenges and solutions for reducing your emissions
As agri-food company, Scope 3 represents your biggest challenge in terms of greenhouse gas (GHG) emissions. This scope, which encompasses all indirect emissions in your value chain, often accounts for almost 90% of your total carbon footprint. It's particularly important because it's linked to upstream agriculture, i.e. the farmers who supply you with your raw materials.
By taking control of your Scope 3, you're not only reducing your GHG emissions, you're also strengthening your company's resilience in the face of future climate and regulatory challenges, and encouraging your farmers to change their practices.
👉 But simplifying data processing forScope 3 remains essential to effectively measure, manage and reduce the agri-food sector's overall carbon footprint.
2. Lack of reliable data, the main challenge for Scope 3
As you will have noticed, the pressure to comply is increasing, requiring you to monitor not only your direct (scope 1) and indirect (scope 2) emissions, but also all indirect emissions from your supply chain (scope 3).
As we saw earlier, supply chain emissions are on average 11 times higher than a company's direct emissions, accounting for over 90% of total emissions. The challenge is therefore enormous!
To add even more complexity, you need to rely on external data, from your suppliers (= your farmers), who often have different standards and systems to your own. This is particularly true for companies that collect only one crop in a farm's entire rotation, such as beet or corn growers. These companies do not always have software deployed with farmers, who generally use a single software package for their entire rotation or farm. This situation limits data availability.
According to a survey carried out by SBTi, 85% of companies surveyed cited "access to reliable data as the main obstacle to developing a solid baseline". In particular, they find it difficult to obtain supplier-specific emissions indicators. If, by chance, such data is available, the emissions indicators provided by suppliers are often deemed unreliable.
And discover how MyEasyFarm can help you.