Executive Summary:
A leading Fortune 500 food company successfully implemented a carbon insetting strategy to reduce Scope 3 emissions by 25% by 2030, focusing on fertilizer and manure management in agriculture.
Developed the first-of-its-kind carbon insetting program targeting supply chain emissions reductions through improved fertilizer and manure management.
Partnered with 3Degrees to leverage expertise in GHG quantification, methodology development, and project management, ensuring alignment with industry standards.
Enabled credible Scope 3 emissions reductions and established a replicable framework for sustainable agriculture, benefiting farmers and paving the way for future opportunities.
Background
A Fortune 500 food company with business activities across manufacturing, retail (consumer packaged goods), and farming set a near-term emissions reduction target through the Science-Based Target Initiative (SBTi) with a goal to reduce its Scope 3 emissions by 25% by 2030.
Until recently, there have been limited pathways for food companies to invest in agriculture emissions reductions due to a myriad set of factors including regulatory uncertainty, lack of established standards and methodologies, and a limited supply of project opportunities. To address this challenge the company began developing an innovative carbon insetting program focused on fertilizer management in row crops and manure management in dairy. This initiative marked the first program of its kind for the company and offered a new approach to supply chain emissions reductions.
After launching this innovative program, the company recognized the need for a trusted advisor to guide them through the intricacies of carbon insetting while also developing a long-term strategy for success across their farms.
Solutions: Quantification, Methodology Development, and Reporting
Recognizing the need for specialized expertise, the company enlisted the help of 3Degrees to deliver on its insetting strategy. In response, 3Degrees provided end-to-end technical and project management services to deliver on the brand’s strategic goals. This included the approval of a tailored methodology to precisely quantify GHG reductions resulting from optimized fertilizer usage and the application of nitrogen inhibitors and stabilizers. This methodology utilized 3Degrees’ proprietary models to ensure an accurate assessment aligned with the project’s specific demands.
In addition to greenhouse gas quantification, 3Degrees managed the project development process including reporting, verification, and validation through SustainCERT’s value chain intervention framework, ensuring each step was aligned with broadly accepted insetting protocols and supply chain accounting standards. This comprehensive management equipped the brand with the tools needed to be successful, further strengthening its agricultural insetting initiative, while supporting future projects as the industry continues to develop.
Results and Future Opportunities
The success of the program opened the doors for the company to claim scope 3 emissions reductions in a defensible and credible manner, with proceeds channeled directly to the participating farmers. This not only incentivizes farmers but also provides a lower-risk, more accessible pathway to decarbonize their operations.
Leveraging both 3Degrees’ technical and administrative expertise, the program established a framework for developing and managing agriculture scope 3 emissions reduction projects that can now be replicated and implemented across the agriculture landscape, paving the way for future opportunities.
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