Special report SBTi targets and Scope 3 emissions reduction
In the face of the climate emergency, the agri-food sector finds itself at the heart of a major challenge: to drastically reduce its greenhouse gas (GHG) emissions. With the Paris Agreements and the CSRD, regulatory pressure is intensifying, pushing players in the agricultural supply chain to act quickly.
According to the French Ministry of Agriculture, agriculture and the agrifood industry are among France's main greenhouse gas (GHG) emitters (along with transport and construction).
These emissions come from :
- Energy consumption in food processing, refrigeration and transport.
- Food waste, which generates methane emissions when it decomposes.
- Packaging that has a carbon footprint linked to its production and disposal.
In response, initiatives such as the Science Based Targets initiative (SBTi) and Scope-based emissions calculations have emerged, offering guides for measuring and reducing carbon impact.
According to a Deloitte study, on average, 90% of emissions from agribusinesses come from Scope 3, in particular upstream agriculture.
Three key factors are driving agri-food companies to better assess their GHG emissions, from agricultural production to distribution: regulatory pressure and the evolution of specifications towards greater sustainability, growing pressure from consumers and society, and the need to secure long-term supplies.
And you, cooperatives and agri-food companies, now have to juggle all these requirements and deal with an administrative complexity that can seem overwhelming!
So how do you navigate this regulatory jungle? Where do you start to produce and publish the required indicators?
In this article, we'll guide you through the intricacies of these new obligations and introduce you to the tools that can simplify the process.
CONTENTS
1. Understanding SBTi and Scope 3
a.1) Some of the measures required of companies by the SBTi
b) Greenhouse gas emissions in the agro-industry: focus on Scopes
c) Scope 3 in the agro-industry: challenges and solutions for reducing your emissions
2. Lack of reliable data, the main challenge for Scope 3
a) Scope 3 calculation methods
b) The limits of generic emission factors
c) Rely on specific, reliable data to calculate your Scope 3 emissions
d) Tackle Scope 3 challenges with MRV tools
3. MyEasyCarbon: a comprehensive MRV platform to help you reduce your greenhouse gas emissions.
a) Measure your greenhouse gas emissions precisely
c) Transparent and detailed reporting
a) Examples of companies that have implemented SBTi-compatible MRV tools
1. Understanding SBTi and Scope 3
+1.5°C is the rise in the earth's temperature that the signatories of the Paris Agreement pledged not to exceed by 2015. But this objective can only be achieved with the active participation of businesses in the fight against global warming.
The SBTi (Science Based Targets Initiative) was created to guide them towards "net zero emissions" based on scientific data.
What does this initiative involve? How can it help you move towards carbon neutrality? What criteria must you meet?
Here are our answers.
a) What is SBTi?
The SBTi, or Science Based Targets initiative, is an organization that helps companies set science-based targets for reducing greenhouse gas emissions.
Launched in June 2015, it proposes a methodology aligned with IPCC recommendations and provides guidelines, criteria and advice for reducing carbon footprints.
SBTi is supported by the Technical Advisory Group, a group of experts mainly from the field of corporate social responsibility. Methodologies are based on scientific research that provides concrete solutions for decarbonization.
As a certification body, SBTi awards carbon certifications to companies aligning their GHG reduction targets with a trajectory to limit global warming to 1.5°C, in line with the 2015 Paris Agreement.
Also known as the "Net Zero Standard for Business" or "iSBT" in French, SBTi is the result of collaboration between several institutions:
- CDP (formerly Carbon Disclosure Project)
- UN Global Compact
- WRI (World Resources Institute)
- WWF (World Wide Fund for Nature)
a.1) Some of the measures required of companies by the SBTi
Complete GHG inventory | Science-based target setting | Planning and implementation | Transparency and communication |
|---|---|---|---|
Complete inventory of their GHG emissions covering scopes 1, 2 and, if possible, scope 3 | Targets must be aligned with scenarios for limiting global warming to 1.5°C or 2°C, as recommended by the IPCC. | Develop and implement action plans to achieve their emission reduction targets | Communicate regularly on their GHG emissions and progress towards reduction targets |
Scope 1: Direct emissions from sources owned or controlled by the company | |||
Scope 2: Indirect emissions from the consumption of electricity, heat or steam | Companies must set short- and long-term emission reduction targets | These plans must include strategies for improving energy efficiency, adopting renewable energies and reducing emissions throughout the value chain. | Make public reports that comply with recognized standards, such as CDP and the Global Reporting Initiative (GRI) |
Scope 3: Other indirect emissions, such as those from the supply chain and business travel |
It should be noted that the SBTi-FLAG methodology sets decarbonization targets for companies that have an impact on land through their economic activities.
💡Find out more about SBTi Flag
b) Greenhouse gas emissions in the agro-industry: focus on Scopes
"Scopes" are categories used to classify a company's greenhouse gas (GHG) emissions according to their source. These categories are defined by the Greenhouse Gas Protocol (GHG Protocol), an international standard for GHG accounting and reporting.
An agri-food company's emissions fall into three categories:
Scope 1: Direct emissions | |
|---|---|
Stationary combustion | Emissions from fuels used for heating and industrial processes. Resulting from the combustion of fuels in stationary sources, such as boilers, furnaces, turbines, etc. |
Mobile combustion | Emissions from vehicles owned or controlled by the organization (e.g. freight, commercial/technical vehicles). |
Fugitive emissions | Greenhouse gas leaks from equipment such as refrigerators and air conditioners. These emissions result from intentional or unintentional releases. |
Process emissions | Emissions from industrial operations and on-site manufacturing processes |
Scope 2: Indirect energy emissions | |
|---|---|
Electricity | CO₂ emissions linked to electricity consumption. |
Heating | GHG emissions associated with heat purchased from centralized energy systems for heating facilities. These emissions depend on the fuels used by the heating supplier, such as gas or coal. |
Cooling | Indirect emissions resulting from energy purchased for the industrial or commercial cooling of facilities, particularly affecting food processing industries requiring strict thermal control. |
Steam | Emissions linked to steam produced off-site, then purchased for industrial processes requiring steam, common in food processing sectors. |
Other purchased sources | Includes other types of purchased energy, such as compressed air or hot water, depending on the company's specific processes. |
Scope 3: Other indirect emissions | |
|---|---|
Purchase of agricultural raw materials | Emissions associated with the production and transport of agricultural inputs (seeds, fertilizers, pesticides) |
Food supply chain | Emissions from the processing, transport and distribution of agricultural products |
Deforestation and land-use change | Emissions from deforestation and land conversion for agriculture |
Transport of agricultural products | CO₂ emissions related to the transport of agricultural products to markets or processing centers. |
Agricultural waste management | Emissions from crop residue and organic waste management |
Infographic explaining Scope 1, 2 and 3 emissions.
Scope 3 deserves particular attention in the agro-industry. It encompasses all indirect emissions not covered by Scopes 1 and 2, notably those linked to the production of agricultural inputs, transport and product use.
c) Scope 3 in the agro-industry: challenges and solutions for reducing your emissions
As agri-food company, Scope 3 represents your biggest challenge in terms of greenhouse gas (GHG) emissions. This scope, which encompasses all indirect emissions in your value chain, often accounts for almost 90% of your total carbon footprint. It's particularly important because it's linked to upstream agriculture, i.e. the farmers who supply you with your raw materials.
By taking control of your Scope 3, you're not only reducing your GHG emissions, you're also strengthening your company's resilience in the face of future climate and regulatory challenges, and encouraging your farmers to change their practices.
Why pay special attention to Scope 3?
Magnitude of impact
Scope 3 is the largest in terms of agro-industrial emissions.
Supply chain complexity
Your Scope 3 emissions come from many sources, often difficult to quantify.
Reduction potential
Scope 3 offers the greatest opportunities for reducing greenhouse gases (GHG).
Stakeholder requirements
Investors, customers and regulators expect you to act across your entire value chain.
👉 But simplifying data processing for Scope 3 remains essential to effectively measure, manage and reduce the agri-food sector's overall carbon footprint.
Would you like to find out more and talk to our experts?
2. Lack of reliable data, the main challenge for Scope 3
As you will have noticed, the pressure to comply is increasing, requiring you to monitor not only your direct (scope 1) and indirect (scope 2) emissions, but also all indirect emissions from your supply chain (scope 3).
As we saw earlier, supply chain emissions are on average 11 times higher than a company's direct emissions, accounting for over 90% of total emissions. The challenge is therefore enormous!
To add even more complexity, you need to rely on external data, from your suppliers (= your farmers), who often have different standards and systems to your own. This is particularly true for companies that collect only one crop in a farm's entire rotation, such as beet or corn growers. These companies don't always have software deployed with farmers, who generally use a single software package for their entire rotation or farm. This situation limits data availability.
According to a survey carried out by SBTi, 85% of companies surveyed cited "access to reliable data as the main obstacle to developing a solid baseline". In particular, they find it difficult to obtain supplier-specific emissions indicators. If, by chance, such data is available, the emissions indicators provided by suppliers are often deemed unreliable.
"The lack of reliable data to track progress is a major obstacle to achieving the goals set by SBTi.. "
Source: SBTi
👉 But if it's so complicated to obtain data, what indicators do agri-food companies use to assess their Scope 3 emissions? What calculation methods do they use?
GHG emissions agricultural supply chain MyEasyCarbon
a) Scope 3 calculation methods
Currently, agro-industrial companies use two main calculation methods to estimate their Scope 3 emissions:
The monetary method (TeqCO₂/€)
This approach uses emission factors expressed in CO₂ equivalent per monetary unit (TeqCO₂/€). It makes it possible to estimate greenhouse gas emissions based on financial expenditure linked to the purchase of goods or services.
❌ Main limitation: This approach lacks precision as it does not take into account the specificities of raw materials or agricultural practices. The generic data used, often taken from databases such as those of ADEME (Agence de l'Environnement et de la Maîtrise de l'Énergie), do not reflect the diversity of local practices or production conditions.
Volumetric method (TeqCO₂/T of material)
This approach evaluates CO₂ emissions per tonne of raw material used. It is based on emissions factors that quantify emissions according to the quantity of material processed or used in the supply chain.
✅ Advantage: More precise than the monetary method, this approach takes production volumes into account. It can integrate the impact of each raw material, its transformation and its end-of-life to calculate the overall carbon footprint.
❌ Limitation: Although improved, this method remains imperfect as it often uses generic emission factors. It requires more data to provide a result that is more faithful to reality. The use of generic data, while possible, reduces the accuracy of estimates.
b) The limits of generic emission factors
You may be tempted to use generic emission factors from the ADEME or Agribalyse databases. However, this approach has one major drawback.
These databases provide averages that do not reflect the diversity of farming practices specific to each farm or region. In the agri-food company sector, as you know, farming practices vary considerably from one farm to the next, depending on cultivation techniques, soil type, climate and crop varieties.
Scope 3 SBTi limits general emission factors - MyEasyCarbon
For this reason, generic data cannot be used to accurately measure actual emissions, or to identify the potential emissions gains from a change in farmers' practices. This is an obstacle if you want to encourage your farmers to adopt more sustainable practices.
c) Rely on specific, reliable data to calculate your Scope 3 emissions
As an agri-food company, improving the accuracy of your Scope 3 emissions calculations requires access to specific, reliable data. You need to better understand and measure agricultural practices throughout your value chain, from farms to processing plants.
The use of specific data will not only enable you to calculate your emissions with greater precision, but also to concretely assess the impact of the sustainable practices implemented by your farmers. You'll be able to quantify changes such as the reduction of chemical inputs, the optimization of crop rotations, or the adoption of agro-ecological techniques.
With this precise information at your disposal, you'll be able to make informed decisions to reduce your carbon footprint, effectively encourage your farmers/suppliers to adopt more sustainable practices, and communicate transparently on your environmental progress.
As you can see, to comply with SBTi or net-zero emissions targets, you'll need to carry out measurements based on specific, reliable data...
Yes, but how do you collect and process this data?
👉 The answer: MRV platforms!
d) Meeting Scope 3 challenges with MRV tools
MVR (Measurement, Verification and Reporting) tools are essential for cooperatives and agri-food companies wishing to track and report their greenhouse gas (GHG) emissions accurately and transparently. These tools enable emissions to be measured, the accuracy of the data to be verified, and progress in reducing emissions to be reported.
These platforms offer a reliable and robust solution for the massive processing of information, responding to the need to obtain numerical rather than declarative data for Scope 3 emissions monitoring.
Using an MRV tool enables a large amount of data to be processed quickly and efficiently, much faster than if this were done manually.
👉 Being able to retrieve this digital data from your suppliers ensures accurate and efficient management of GHG emissions from the entire supply chain.
Would you like to find out more and talk to our experts?
3. MyEasyCarbon: a comprehensive MRV platform to help you reduce your greenhouse gas emissions.
MyEasyCarbon is the MRV platform specialized in the agricultural sector. It has been designed to help cooperatives and businesses in the agri-food sector track, analyze and reduce GHG emissions across the supply chain in an efficient and transparent way to meet SBTI and Scope 3 targets.
SBTi Scope 3 agriculture MyEasyCarbon
👉 You are committed to a CSR approach and want to verify and measure your actions to reduce GHG emissions throughout your value chain, here's how MyEasyCarbon can help:
a) Measure your greenhouse gas emissions precisely
Collect data automatically
As an expert in farm data management, the platform integrates various data collection systems to measure GHG emissions directly from different sources:
- Land management software for farmers
- Satellite data (detection of main and intermediate crops, biomass estimation, etc.)
- Soil databases
- Weather data
- Agricultural machinery
- Open source databases...
This approach guarantees optimum precision and reduces the risk of human error. The platform is capable of collecting data from farm machinery, sensors or satellites, in addition to data aggregated by the farmers themselves.
Correct your actions at the end of each campaign
Once the assessment of the campaign has been carried out, the farmer can test different simulations of changes in practices on his farm. He can then see the impact of these changes on carbon storage and GHG emissions.
On the scale of a cooperative or agri-food industry, the combined results of all farmers are produced as the data is completed.
Scope 3 GHG calculation SBTi MyEasyCarbon
b) Check your data thoroughly
Comply with international standards
MyEasyCarbon complies with international standards (ISO 14064 and the GHG Protocol), guaranteeing that the verified data is reliable and recognized worldwide.
Get detailed reports
Would SBTi like to check the accuracy of your reports? No problem, the platform facilitates the audit process, providing tools and detailed reports to prove the accuracy of reported data.
c) Transparent and detailed reporting
Customize your reports
MyEasyCarbon generates customized reports tailored to your company's specific needs, including detailed analysis of Scope 3 emissions by source.
Comply with regulations
Strengthen your credibility by complying with regulatory reporting requirements with complete transparency.
Provide reliable digital data
By providing numerical rather than declarative data, MyEasyCarbon gives you greater accuracy and reliability in tracking Scope 3 emissions.
d) Efficient data management
Make massive data processing easy
MyEasyCarbon is capable of handling large quantities of data, allowing you to process them quickly and efficiently, far beyond the capabilities of manual methods.
Connect to your farm systems
The platform is interoperable and compatible with your farm's application environment (farm machinery, traceability software, farm data).
Track your progress
MyEasyCarbon enables you to track your own and your farmers' progress in reducing emissions, making it easier for you to reach the targets set by initiatives such as SBTi.
Data management and tracking with MyEasyCarbon
4. Our customers say it best
a) Examples of companies that have implemented SBTi-compatible MRV tools
Cristal Union
The cooperative is carrying out a major decarbonization project across the entire company perimeter on scope 1-2-3.
To respond to scope 3 (which concerns farmers), Cristal Union would like to accurately assess farmers' practices and the storage of carbon in the soil.
MyEasyCarbon is much more than a simple MRV tool; it's an effective solution for managing and reducing GHG emissions. By combining accurate measurement, rigorous verification and transparent reporting, MyEasyCarbon helps you not only to comply with standards and regulations, but also to play an active role in the fight against climate change.
The platform integrates seamlessly into your practices, simplifying the processing of mass agricultural data to meet SBTI and Scope 3 targets. You too can reduce your emissions while optimizing your processes.
👉 So, ready to transform your agricultural supply chain? Find out how MyEasyCarbon can help you achieve your climate goals today.
Would you like to find out more and talk to our experts?
To find out more, take a look at all the use cases for MyEasyCarbon solutions on our website.
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