Scope 3 baseline: Taking meaningful action requires farm-level data.
Key takeaways.
Establishing an organizational Scope 3 baseline is essential for understanding operations, setting reduction targets, driving emission reductions and tracking progress.
To drive a meaningful impact at the farm level, the Scope 3 baseline needs to be rooted in farm-level primary data.
Collecting farm-level information from as many farmers as possible, rather than detailed information from only a few, ensures baseline actionability and operational feasibility.
Digital tools that simplify data entry for farmers are critical for scaling data collection.
Access to farm-level data can open up collaborative opportunities with other companies in the value chain.
Introduction.
Establishing organizational emission baselines across all scopes (Scopes 1-3) forms the foundation for reduction targets and sustainability strategies.
For agri-food companies, the Scope 3 baseline is particularly significant.
Scope 3 emissions, primarily generated by suppliers and farmers during agricultural processes, typically account for 70-90% of an agri-food company's total environmental footprint.
Addressing the source of these emissions presents a substantial opportunity to drive large-scale emissions reductions while also understanding and addressing broader impacts on nature, including biodiversity.
A comprehensive understanding of current Scope 3 upstream emissions provides a reliable starting point for taking action and measuring progress. Think of the baseline as the “control group” in a scientific study; it’s the benchmark that allows for analyzing the impact of interventions.
The Greenhouse Gas Protocol provides clear guidance on setting a Scope 3 baseline*. It also advises companies to establish a policy for recalculating the baseline if significant changes occur.
*Please note that while the term "Baseline" is commonly used in the industry, and it’s used throughout this text, both the Greenhouse Gas Protocol and SBTi use the term "Base year" to refer to the same idea.
In their guidance, "Baseline" is used to describe a reference scenario in a project-based context, representing what would have happened without the intervention. See more details here.
Why data granularity matters.
An effective Scope 3 baseline needs to be actionable which makes data granularity a critical consideration in baseline calculations.
Relying on secondary data, such as national averages or generic emission factors, lacks the specificity needed for actionable transition plans. Secondary data reflects regional averages and proxies and disregards the “ground truths” – the unique conditions and practices used by each farmer who supplies the commodity.
Put into another context: very few businesses would base significant investment decisions on industry average cost data. Similarly, Scope 3 baseline calculations and effective decision-making driving emissions reductions will require more granular, site-specific data.
Farm-level primary data captures the essential nuances in practices used by individual farmers, such as crop rotations, soil type and tilling practices, all of which directly correlate with emission levels.
To drive meaningful Scope 3 reductions, the baseline needs to be rooted in farm-level primary data and tied to the volumes of sourced commodities.
When the baseline is based on actual data from farmers in the value chain, it also creates a solid foundation for supporting these farmers in transitioning to more sustainable practices.
However, collecting data at this level of detail can be challenging, especially if the value chain involves hundreds or thousands of farmers, spanning regions, countries, or even continents.
Achieving success requires close collaboration with local suppliers and farmers, as well as a scalable digital system for data collection, management, harmonization and emissions quantification.
“Go broad” in data gathering.
When collecting farm-level information, it’s important to balance the data accuracy with speed and feasibility.
Aiming for a textbook-perfect baseline dataset by asking all farmers for highly detailed information about their practices can lead to low response rates and a narrow snapshot of a few farmers that can’t be extrapolated into an accurate baseline, eventually delaying transition plans.
To accelerate the transition, companies should consider collecting the highest impact farm-level data points from as many farmers as possible.
Capturing farm-level details – such as yields, field boundaries, crop rotations, soil types and fertilizer application rates – across a broad base provides a solid foundation for an actionable Scope 3 baseline.
Simplifying the reporting process to make it streamlined and intuitive for farmers to provide this information will further boost response rates and increase baseline accuracy.
The Improvin’ Operating System facilitates data collection for agri-food companies and simplifies data entry for farmers.
The system connects sourcing contracts to large-scale modeled data and utilizes existing information on agricultural practices from e.g. farm management systems.
The streamlined data and engaging reporting experience ensure that key farming practices can be captured from an optimal number of farmers. The data granularity can be adjusted based on the company’s ambition and regional needs, while still ensuring an actionable baseline.
Farmers also receive feedback on their performance, including comparisons to industry averages and visualizations of where their crops end up in the value chain. These feedback loops help farmers recognize the value of the reporting process.
Once the broad base of farm-level data is established, the precision can be further enhanced by inviting selected farmers to provide more in-depth information about their practices.
Fostering collaboration across the food chain.
Establishing a baseline with farm-level data does more than support corporative sustainability goals; it can also foster collaboration across the food value chain and beyond.
When companies connected or adjacent to the same value chain all have access to granular farm-level data, it elevates the discussions around agricultural sustainability and opens up new avenues for collaboration.
In practice, this could mean joint initiatives, innovations, and investments to support farmers.
By working together, agri-food companies and connected industries can implement impactful, farmer-centered decarbonization projects, benefiting all stakeholders and accelerating the transition to more sustainable food production.
Summary.
Establishing a Scope 3 emissions baseline requires a broad foundation of actionable, farm-level data that reflects the actual agricultural practices of the farmers supplying the commodities.
Utilizing farm-level primary data to establish a representative baseline enables agri-food organizations to drive impactful upstream Scope 3 emissions reductions and fosters collaboration across the value chain. Smart digital systems enable companies to gather and harmonize farm-level data at a global scale.
By balancing data granularity with practical scalability and by simplifying reporting processes for farmers, agri-food companies can lay the groundwork for actionable, measurable sustainability initiatives that drive tangible field-level impact
