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How Food Companies Are Incentivizing Suppliers to Rein in GHGs

Sustainable Brands

Photo: Tom Grove

By Sustainable Brands Staff

A new report from WWF examines the efficacy of rewards for climate-smart on-farm practices in getting suppliers’ help in eliminating Scope 3 emissions.

Many food companies have begun looking to their supply chains for help in reaching their own emissions targets — offering incentives to their suppliers and, in particular, the farms with which they do business. A new study by the Markets Institute at World Wildlife Fund provides a landscape analysis of the types of incentive programs implemented by more than 20 companies across the industry.

With more than 70 percent of food-related GHG emissions stemming from agricultural practices, companies that have set ambitious climate targets are increasingly proposing programs designed to shift behavior on farms.

The report examines supplier-engagement efforts by companies including:

Straus Family Creamery — the company, which sources from 12 organic dairy farms in Marin and Sonoma Counties in Northern California, aims to have all of its purchased milk be climate positive by 2030 via a collaborative, carbon-neutral dairy-farming model that deploys a combination of interventions that it has piloted and refined locally: red seaweed feed additives, biodigester use, electrification of on-farm vehicles, and regenerative soil management.

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