Scope 3 land-based emissions

Accelerating emissions reductions and removals in agri-food value chains

The
challenge

The agriculture and food sector represents close to one-third of global emissions. Transforming this system from a net source of greenhouse gas (GHG) emissions to a net sink is essential to meeting the 1.5°C pathway set by the Paris Agreement. In addition to mitigation efforts, addressing land-based emissions and removals is critical for resilient and adaptive agri-food systems in response to the physical risks of climate change.

The majority of agri-food sector emissions are from on-farm activities and land-use change. As most companies in this sector do not directly own or manage land, these land-based emissions fall within the scope 3 emissions boundary and require value chain interventions. As a result, scope 3 interventions are a key mechanism for agri-food companies to achieve their climate goals through the implementation of GHG reduction or removal initiatives in company value chains.

 

The complex nature of agricultural value chains and land-based emissions accounting gives rise to specific considerations for corporates when implementing scope 3 programs.

Emissions from the
agri-food sector

The majority of emissions in agri-food value chains are from are from land-based activities: from on-farm and associated land use change. Emissions hotpots vary by value chain: there is variation in which activities contribute most, dependent on the crop, geography and farming practices.

The
business case

Why scope 3 land-based emissions is relevant for agri-food companies

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  • Climate risk and resilience: The agri-food sector is particularly vulnerable to climate change. Rising temperatures and shifting climate zones are diminishing suitable growing areas and disrupting food production, leading to unpredictable yields, lower crop quality, price volatility, logistics complexities and labor costs. The cost of inaction far exceeds the costs of transitioning to more climate-resilient, sustainable food systems.
  •  
  • Mobilizing financial capital: Capital markets are evolving to recognize and reward climate action. Access to capital increasingly depends on carbon accounting and climate risk management. Interest rates and credit facilities linked to carbon reduction targets are gaining popularity.
  • Making credible claims with stakeholders: Investors increasingly expect meaningful corporate disclosure of non-financial, climate-related information and transition plans. Customers are requiring more transparent scope 3 information from suppliers. Credible scope 3 action and claims can add value with consumers and avoid scrutiny and greenwashing.
 
 
  • Regulation: An increasing number of legislations require scope 3 disclosure requirements and target-setting as part of corporate climate transition plans and reporting. Forward thinking companies practice ‘smart compliance’ by looking ahead to voluntary frameworks that often inform mandatory legislations.

The
Solution

WBCSD aims to be a convenor, action platform and advocate for accelerating reductions and removals in agri-food value chains. We are focused on 3 key enablers:


Standards


Outcome needed:
Clear and usable guidelines for land-based emissions accounting.

Our priority:
Ensure carbon accounting standards and frameworks are robust, pragmatic and aligned with clear adoption pathways for business.


Monitoring, Reporting
& Verification (MRV)


Outcome needed:
Pragmatic accounting approaches for reductions and removals.

Our priority:
Sector-aligned data requirements and interoperable MRV systems to enable the adoption of standards and frameworks.


Financing


Outcome needed:
Producers are financially supported for farm-level practice change.

Our priority:
Drive consensus on financing models for collective value chain investment that prioritize equity of farmers in scope 3 interventions.

Latest
Resources

Scope 3 Navigator

Publication

Scope 3 Data and MRV Guidance for Agriculture and Food 

Scope 3 Navigator

Publication

Scope 3 Navigator for Agriculture and Food 

Publication

Financing mechanisms for land-based action

News
& insights

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WBCSD insights

Unlocking finance for food system transformation: why metrics matter

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