The issue
In response to flat sales, and consumer, investor, and regulatory pressures, a food company wants to reduce their carbon footprint. They want to rebrand as a sustainable company, with new, low carbon footprint products that can be labeled and sold as low carbon.
Typical approach
Add a Chief Sustainability and Chief Innovation Officers to the executive team to provide the leadership to drive the transformation, new products and reduce their carbon footprint
Published objectives
Focus on scope 1 and 2 carbon sources, those under their direct control
Purchase carbon offsets
Progress is challenging to quantify as carbon is difficult to measure and verify
The solution
To reduce their carbon footprint the company must address more than scope 1 and 2 carbon sources and include scope 3 carbon. This carbon originates within their supply chain as raw materials are grown.
For a typical food company, more than 80% of their carbon footprint results from supply chain activities.
Partner with the farmers to grow climate smart commodities. Raw materials with attributes that reduce the carbon footprint, and are core ingredients for new product that can carry a low carbon label
Implement
Applies data and science to identify the linkages between the growing conditions such as field conditions, practices, inputs, timing, and storage with outcomes including carbon.
Using adopt, verify, and measure carbon
Pay farmers premium based on verification of a climate smart commodity
The linkages between growing conditions and outcomes are captured in a model that is used to:
Select fields with the highest probability of growing raw materials with the desired carbon footprint
Predict, Score, analyze performance
Identify field specific action to improve outcomes
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