The scope 3 conundrum

ANDREW BAUER , HEAD OF FOOD

AND FOOTPRINT | SAC CONSULTING

The need for climate action is never far from the headlines. Whilst promising technological aids such as 3-NOP and green hydrogen are on the horizon, it is worth remembering that agriculture can be a mucky business and so can be reducing its emissions.

Making progress means embracing the challenges we face now, including those presented by our famous burping and farting cows.

The biggest gains are not to be found in technological silver bullets, but instead in improving efficiency through refining current methods and bringing once niche practices (e.g. regenerative agriculture) into the mainstream.

With over 190,00 farms across the UK, agriculture is a highly fragmented industry. Let me give you an example – processors and retailers will concern themselves with their own supply chains, however the beef supply chain illustrates why a narrow view of what matters can be problematic.

Most processors buy their beef from a small number of finishers (large farmers who buy cattle from lots of other typically smaller farmers (breeder stores) to prepare them for slaughter). Without the strong flow of data between the breeder stores and finishers (especially the kill sheets that provide key slaughter data) and a good understanding of the optimum cattle specification, inefficiencies are guaranteed. For example, the carbon footprint of beef from an animal slaughtered at 700 days is 30-40 percent higher than from one slaughtered at 520 days.

Despite the complexity and trade-offs, it is reassuring to see so many processors and retailers taking their Scope 3 emissions seriously. Motivations for this may vary. For some, it is meeting or getting ahead of consumer expectations. For others, it is ESG (environmental, social and governance) performance to keep investors on side and the supply chain resilient to increasing climate-driven pressures.

Case study – M&S

SAC Consulting helped M&S compare its Pathway Beef against standard UK breeder-finisher systems.

“The collaboration with SAC Consulting has proved crucial for the success of this project, as we want to ensure we are both facts based, and science led in our decision making.”

Steve McLean, M&S Head of Agriculture & Fisheries Sourcing

Whatever the motivation, there is a serious groundswell of interest and investment moving into agriculture.

With that in mind, we need to ensure the reach down into the supply chain – into famously independent, proud, and often family-run businesses – is done right and sensitively, with practical knowledge and pragmatism.

It means understanding the often hyper-local context. For example, why sowing clover on one farm would be advantageous but on another farm a few miles away it may be a fool’s errand. It means being sensitive to the significant practical and cognitive changes required to transition to a new normal.

We need to be much more accommodating, providing the necessary support to overcome challenges. We also need to consider the financial and time related obstacles this throws up, for what are by most other industry standards, small businesses, when subjected to a wide range of regulatory, market and environmental pressures.

It is essential to recognising that farmers are not passive in this process – they too want to chart a course to a positive and sustainable future.

Tackling agricultural emissions is daunting, but for all businesses large or small, it cannot be overlooked. Having worked with a wide range of food supply chain businesses to understand their agricultural Scope 3 and put in place practical measure to reduce them, my advice is not to let the perfect be the enemy of the good.

Start by accepting, accounting for, and acknowledging the limitations in your data. Do a broad scale analysis of your Scope 3 emissions, and once you have identified the greatest potential gains, do a more detailed carbon footprint in line with the regulations. Align your work with your available budget for action and ensure you have an appropriately grounded implementation plan.

Take your marketing team along with you, so they really understand what is happening and can accurately represent it. However, if you decide you need help from a consultancy, be sure they really understand the practical realities of agriculture as well as the theory of emissions modelling.

Case study – Angus Soft Fruits

Angus Soft Fruits worked with SAC Consulting to measure and reduce the greenhouse gas (GHG) emissions associated with the production, processing, transport, and packaging of berries in its global supply chain.

“The team at SAC Consulting have been really accommodating to tailor the support to our exact needs and create even more value within our emissions calculations with their expertise.”

Catherine Russell, Sustainability Manager, Angus Soft Fruits

The experienced team at SAC Consulting offers the breadth and depth of consultancy needed, to make informed and holistic decisions about supply chain sustainability. Our history and values give us invaluable on-the-ground experience of the unique purpose and needs of land-based or food and drink businesses.

We provide private, public and third sector customers an accessible and responsive, yet robust and comprehensive, blend of independent advice and practical services that draw on the cutting-edge knowledge of the wider SRUC. Please do get in touch if you would like to discuss your sustainability challenges.

Get in touch andrew.bauer@sac.co.uk