A number of fast food companies have committed themselves to an ambitious set of carbon goals for 2030. What implications does that have for producers?
According to Belinda Richardson, manager of U.S, sustainable sourcing for McDonald’s, it can mean profit opportunities.
In an effort to meet their carbon emissions goals, corporations like McDonald’s are developing projects that engage producers at the farm level. According to Richardson, participating in these projects gives local farmers a chance to tell the story of good land stewardship, and better yet, get paid for it.
“Sustainability is not a fad or a short-term trend for McDonald’s,” said Richardson. “McDonald’s is integrating sustainability into our way of doing business as part of a business resiliency strategy. Initiatives, like these climate programs with producers, support both a producer’s business resiliency strategy as well as our own.”
Richardson said that local farmers should consider carbon insets as opposed to the more commonly mentioned carbon offsets. The main difference between offsets and insets lies in the focus of the investment.
“If ranches are successful, we are successful,” she said. “The very same practices that will help improve operating at the ranch level are also the same practices that are going to help us as a corporation achieve those climate and resiliency goals.”
Belinda Richardson
With carbon offsetting, a producer is compensated for unavoidable emissions by funding equivalent carbon dioxide or greenhouse gases saving projects elsewhere. “Think of Apple or Microsoft paying a rancher to engage in certain practices,” Richardson said.
With carbon insetting projects, investments in emissions reductions are kept within a company’s own value chain. “This way, the carbon sequestration is kept in the agricultural industry,” she explained.
Common carbon insetting programs include:
- Reforestation and agroforestry – This is where farmers plant trees amid crops to create carbon sinks and promote biodiversity.
- Renewable energy projects – Producers tailor their efforts toward renewable energy sources within their own supply chain.
- Regenerative agriculture – By implementing farming practices that restore soil health farmers can help sequester carbon.
- Virtual operations for reduced travel emissions – Technological innovations can minimize the need for air travel and reduce travel-related carbon emissions.
- Circular economy practices – Recycling and reusing materials within the production process reduces both a farmer’s waste and carbon footprint.
- Sustainable supply chain practices – Businesses can participate in carbon insetting projects by adopting sustainable practices within their own supply chains, like sourcing materials responsibly and reducing waste.
“By focusing on reducing emissions within the supply chain,” Richardson explained, “companies can encourage suppliers to adopt greener practices, which can lead to a ripple effect of sustainability improvements across the industry, leading to more resilient and efficient supply chains, as suppliers innovate to meet these new standards.”
She pointed out that there are also brand and reputational benefits to engaging in carbon insetting. In contrast to a program that comes across as superficial and more concerned about “greenwashing” than actual environmental impact, a transparent strategy that shows a genuine commitment to sustainability can enhance a company’s reputation.
by Enrico Villamaino
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