As organizations around the world work together to develop and implement solutions to meet global greenhouse gas (GHG) reduction goals, companies with complex and emissions-intensive supply chains—particularly in the food and beverage industry—often face challenges due to limited levers and resources available to effectively manage their scope 3 emissions.
To address this challenge, supply chain interventions and carbon insetting are implemented to empower upstream suppliers to deliver products with reduced emissions intensity, enabling these companies to achieve both their short- and long-term scope 3 goals more effectively.
What are Supply Chain Reductions (SCRs)?
Sometimes referred to as carbon insetting, SCRs provide a uniquely simplified and de-risked solution for achieving an organization’s scope 3 goals.
In practical terms, reducing emissions within the value chain involves identifying the key sources of greenhouse gas emissions in the production, transportation, and delivery of goods. For example, within the food and beverage industry, this could include emissions from row crop production, livestock management, transportation, and processing activities.
By partnering directly with suppliers, 3Degrees delivers verified emission reductions associated with goods in your supply chain, such as milk, corn, or beef—measurable and certifiable decreases in greenhouse gas emissions that are validated by third-party organizations.
What programs are available to generate SCRs?
The first Supply Chain Reduction programs developed by 3Degrees are uniquely designed for companies with North American agricultural supply chains. Supported by a network of co-development partners including farmers, agricultural NGOs, and agricultural technology companies, 3Degrees currently offers over 200 million tons (of CO2e) of agricultural supply chain reduction opportunities.
The Agriculture Supply Chain Reduction program suite includes:
- Fertilizer Manufacturing
Fertilizer production contributes 1-2% of global GHG emissions, largely due to nitric acid manufacturing—a key component in the most widely used fertilizer in the U.S. Our Fertilizer Manufacturing program targets these emissions by installing nitrous oxide capture technology at the point of production, significantly reducing this potent greenhouse gas.
Available in most U.S. states and applicable to most crops, the program aligns with rigorous verification standards from Climate Action Reserve or SustainCERT.
- Nitrogen Management
Agricultural soils are responsible for 78% of nitrous oxide emissions in the U.S., representing about 5% of total GHG emissions in a 100-year time frame. The primary source of these emissions is the use of synthetic fertilizers. Our Nitrogen Management program targets these emissions by implementing enhanced efficiency fertilizers and advanced nitrogen management techniques, guided by the 4R principles (Right Source, Right Rate, Right Time, and Right Place).
This program is available in most commodity crop supply sheds, including cotton and livestock feed production.The projects are verified according to recognized standards developed by the Climate Action Reserve, Verified Carbon Standard, or the Government of Alberta.
- Manure Management
Agriculture contributes nearly 40% of human-caused methane emissions, with livestock and manure management being major sources. Our Manure Management program targets these emissions by installing advanced manure management technologies, such as vermifiltration, chemical solids separation, cap and flair systems, and biodigesters. Since 2009, 3Degrees has led the way in developing over 33% of all issued manure carbon credits, establishing a strong track record in this area.
This program is available primarily in U.S. dairy supply sheds, with limited availability in beef and swine production. Projects are verified according to industry standards including Climate Action Reserve, California Air Resource Board, or Verified Carbon Standard.
- Enteric Fermentation
Methane emissions from enteric fermentation represent over a quarter of all agricultural GHG emissions. The Enteric Fermentation program introduces innovative feed additives, which have been shown to drastically reduce methane emissions from cattle. This emerging solution offers food and beverage companies a forward-thinking approach to reduce their environmental impact while supporting and accelerating the development of critical agriculture practices.
Given the emerging nature of this industry, 3Degrees directly manages the development of all credits associated with these projects. The projects are verified with the Verified Carbon Standard.
- Agriculture Removals
This program focuses on a range of carbon dioxide removal projects involving agricultural lands, with a focus on biochar projects. Biochar is a carbon-rich material derived from biomass feedstocks, and is applied to farm fields as an agricultural input. Unlike typical biomass that decomposes and releases carbon back into the atmosphere, biochar stabilizes this carbon, preventing its release and contributing to long-term carbon sequestration.
Biochar projects under this program are capable of storing carbon for 100 to 10,000 years, whereas many soil carbon projects commit to storing carbon for over 20 years.
These projects are verified under rigorous standards, ensuring their integrity and effectiveness, and are verified with the Verified Carbon Standard, Puro.earth, Verified Carbon Standard, or the Climate Action Reserve.
Choosing the right program(s)
There are two primary steps to getting started with an SCR. The first is to choose the programs that meet your goals. Some organizations might focus on a single program (for example manure management) while others may find value in integrating multiple SCR programs to maximize their product’s carbon intensity reduction. Factors like price, farmer benefits, and volumetric requirements, often guide this decision.
The second step is to associate the program within your supply chain so your organization can report reduced emission intensity products – what we call the 3Degrees Supply Chain Reduction Standard. This process includes confirming project activities are within your scope 3 boundaries, defining supply sheds, and updating emission factors with the volume of impacted goods.
Collaborating with a 3Degrees program director ensures you build a portfolio tailored to your organization’s unique needs and reporting requirements
Why Food Companies are Investing in Scope 3 Reductions
- Advancing Science-Based Targets (SBTi) Commitments:
By investing in SCRs, food companies make significant strides toward their SBTi goals, addressing the critical emissions generated throughout their supply chains. These actions not only demonstrate leadership in sustainability but also meet the growing demands of eco-conscious consumers and stakeholders. - Enhancing Supply Chain Resilience:
Climate change poses substantial risks to the agriculture supply chain, from extreme weather events to changing growing seasons. SCRs help companies fortify their supply chains against these risks while staying ahead of evolving regulations, ensuring long-term sustainability and stability. - Strengthening Stakeholder Relationships:
Investing in SCRs builds stronger relationships with suppliers, customers, employees, and investors. This leads to more sustainable and transparent supply chains, enhancing trust and loyalty across the board.
Ready to get started?
With over 20 years of expertise in agriculture carbon project development, 3Degrees is your trusted partner for Supply Chain Reduction projects. We help your suppliers deliver products with reduced emissions intensity, enabling you to make tangible progress toward your sustainability goals.
Implementing SCRs not only reduces your greenhouse gas emissions but also strengthens your position in the market, helping you meet regulatory requirements, align with industry guidance, and stay ahead of market trends.
Contact us today to explore how SCRs can drive meaningful impact within your supply chain.
