What's Happening?
Agriculture is identified as the second-largest emitter of greenhouse gases, contributing significantly to global emissions. Despite feeding a growing population, the sector faces challenges in reducing
its carbon footprint. Smallholder farms, which produce a third of the world's food, emit lower emissions per hectare compared to large farms but are disproportionately affected by climate change. Agribusinesses are making commitments to reduce emissions in their supply chains, yet smallholders struggle with the necessary support to transition to low-emission agriculture. The report calls for agribusinesses to address Scope 3 emissions, which include indirect emissions from agricultural production and supply chain operations.
Why It's Important?
The focus on agribusiness emissions is crucial for global climate strategies. Addressing Scope 3 emissions is essential for reducing the agriculture sector's environmental impact. Agribusinesses play a pivotal role in shaping food systems and their emissions significantly affect climate change. By prioritizing Scope 3 emissions, companies can enhance their climate accountability and contribute to global efforts to achieve net-zero targets. This shift could lead to more sustainable agricultural practices and improved resilience against climate impacts.
What's Next?
Agribusinesses are encouraged to set ambitious Scope 3 targets and invest in sustainable practices. The Science Based Targets initiative provides guidance for companies to align their emissions reduction goals with climate science. Companies may face increased pressure from investors and regulators to disclose and act on their Scope 3 emissions. The transition to low-emission agriculture requires collaboration between agribusinesses, smallholder farmers, and policymakers to ensure equitable and effective solutions.
Beyond the Headlines
The emphasis on Scope 3 emissions highlights the need for systemic changes in agribusiness practices. Ethical considerations include the fair treatment of smallholder farmers and the equitable distribution of benefits from emission reduction efforts. The report suggests that addressing Scope 3 emissions can unlock climate finance opportunities and enhance market differentiation for companies committed to sustainability.
