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As the food and agriculture industry takes a closer inventory of its climate impact and companies start setting science-based targets, reducing Scope 3 emissions becomes top of mind. It’s where 80 to 90 percent of the industry’s climate footprint lies. But how do you transform today’s agricultural system to one that sequesters rather than emits carbon along with delivering other ecosystem benefits?
Redesigning financial incentives is one part of the answer. And that work doesn’t just lie in the hands of agricultural lenders and other financial institutions. Food companies can play an essential role in breaking down the barriers that prevent farmers from adopting practices such as cover cropping, reduced tillage and conservation strips.
To help companies get started, a working group at the industry collaborative Field to Market published a report last week. It looks at the intersection of corporate supply chains and farm finance, laying out the barriers and opportunities for financial innovation and providing examples for effective value-chain collaboration.