Reporting to ROI: Capturing Credit for On-Farm Agricultural Practices

November 12, 2024
Reporting to ROI: Capturing Credit for On-Farm Agricultural Practices

Food companies are increasingly expected to demonstrate the impact of their supply chain sustainability efforts, and bridging the gap between on-farm practices and corporate sustainability reporting is a critical challenge. HowGood’s Rachel Calomeni recently hosted Henry Fovargue, VP of Sustainability at Sysco, and Audrey Leduc, Director of Planet-Friendly Practices at McCain, to discuss the topic. 

Here’s a look at some key insights from the conversation, where they explored the value of quantifying sustainability practices, the barriers facing the food industry, and previewed HowGood’s new tool, FieldScope, which makes on-farm data more accessible for corporate reporting.

Farm-level data matters for corporate sustainability

As Henry notes, Sysco is among many companies navigating the pressures of sustainability reporting across regulatory frameworks and customer expectations. Consumers are increasingly looking for corporate commitments to sustainability, and companies need accurate data to prove their progress.

He explained, “Being able to quantify our efforts is critical. It allows us to show our progress toward climate targets, support customers with ambitious 2030 emissions goals, and meet our own 2030 targets. If we’re not counting and measuring, we can’t demonstrate progress. Quantification is crucial for passing this progress along to our customers so they can commercialize it and keep their teams engaged. Regenerative agriculture offers many stories, but it’s essential to measure these stories quantitatively as well.”

Measurement and transparency were also emphasized by Audrey, whose sustainability work at McCain includes working with about 300 North American potato growers and thousands globally, many of whom have been with McCain for over 20 years.

She shared, “We all recognize that “planet-friendly” food is essential today because the natural resources required for food systems are under severe pressure. The case for making food systems more sustainable and resilient has never been stronger. Sustainability is critical to McCain and to me personally, as our primary ingredient is the humble potato. We’ve committed to making 100% of our global acreage regenerative by 2030.”

“Customer expectations are evolving, and everyone is on their own sustainability journey, setting goals not only for themselves but also for their suppliers, including McCain,” states Audrey. “Sysco is a prime example – they encourage their suppliers to prioritize sustainability, and we benefit from this increased visibility, which helps us identify areas for carbon reduction. Consumer preferences are also shifting. Our consumers expect transparency, clarity on food labels, and information about sourcing. They want companies to act as responsible, modern corporate citizens. This expectation shapes our R&D and our business approach.”

Overcoming barriers: reflecting on-farm initiatives in corporate footprinting

Achieving these ambitious goals isn’t without challenges, as the disconnect between on-the-ground practices and scope 3 reporting continues to make accurate sustainability reporting a complex task.

Without transparent, farm-level data, many companies risk over- or underreporting their carbon footprint, affecting their ability to make informed reduction strategies. Henry spoke to this challenge, explaining Sysco’s efforts to work with suppliers to provide the right level of granularity: “Some suppliers are right there with us…scaling regenerative practices,” he shared, while “many of our suppliers don’t yet know what regenerative is today.” This wide range in supplier readiness means companies like Sysco play an essential role in educating and supporting suppliers on their journey.

Similarly, McCain’s “McCain Regenerative Agriculture Framework” supports growers by meeting them where they are. Developed in collaboration with scientists, academic organizations, and NGOs, the framework is built around six indicators of soil health, including crop diversity and minimizing soil disturbance. However, adopting new practices involves risk and cost. “McCain has really put money where our mouth is,” she said, explaining that the company established its “Farm of the Future” in New Brunswick, where new regenerative practices are tested for both efficiency and scalability.

FieldScope: A game-changer for farm-level data

To support companies like Sysco and McCain in overcoming these challenges, HowGood introduced FieldScope, a new tool designed to capture on-farm agricultural practice data and bring it seamlessly into corporate carbon accounting.

Developed in partnership with the Cool Farm Alliance, FieldScope enables companies to measure the specific carbon footprint of ingredients sourced from individual farms. As Nina DePalma, VP of Product at HowGood, explained in a live demo, the tool provides a direct link between on-farm practices and Scope 3 reporting.

“With FieldScope, we can now say, ‘wheat grown on this specific farm in Kansas has a lower carbon footprint than wheat grown on other farms in Kansas,’” Nina explained. This functionality allows companies to measure and quantify the benefits of regenerative practices and make informed decisions about their sourcing.

FieldScope also serves as a powerful ROI tool, enabling companies to track the financial impact of sustainable practices.

“This ability to account for farm-level impacts in corporate emissions provides businesses with the transparency they need to communicate their impact to customers,” Nina said, describing FieldScope as a bridge that helps companies demonstrate the ROI of their sustainability programs.

The future of sustainability reporting

Both Henry and Audrey expressed optimism about the potential for increased standardization and value chain collaboration. Henry shared that, “Hopefully over the next five years, we do see a transition to more automated reporting…[and] more on-farm measurement,” which would reduce the need for redundant data requests from suppliers and allow companies to focus on action.”

For McCain, Audrey emphasized that the ability to quantify decarbonization and translate it into financial terms will be the next big leap. “Customers are asking for the footprint of each SKU and ways to reduce it,” she noted, adding that the investment required for such transformations underscores the need for cross-industry collaboration.

She shared that, “McCain’s sustainability journey is very much a business decision. From our CEO and board down to our regional teams, sustainability is integrated into our operations. Our ROI is straightforward: agriculture is highly vulnerable to climate change, and without a robust sustainability plan, we won’t be able to secure long-term supply. Yes, consumer and customer demands drive this, but it’s also about future-proofing our business to ensure we can continue to thrive in the face of climate challenges. Regenerative agriculture isn’t a “nice-to-have”; it’s essential for the longevity of our business.”

Watch the webinar