Decarbonizing Supply Chains
Achieving emission reductions in Food and Agri supply chains by incentivizing partners to take action. We help corporates achieve, monitor, and verify the carbon reduction of their dairy suppliers to reduce their corporate Scope 3 emissions. Simultaneously, we provide these dairy producers with economic incentives to implement future-proof farming solutions.
What does it mean to decarbonize your supply chain?
As part of our Decarbonizing Supply Chain solution, dairy farmers implement low-carbon solutions, which are then measured, verified, and turned into “reduction units”: a carbon credit-like asset that Rabobank sells to supply chain partners of farmers. Farmers receive 75% of the proceeds from the sale of the units.
Farmers can generate these reduction units by implementing various agricultural practices, such as using reduced synthetic fertilizer rates or adding feed supplements to a cow’s diet to reduce their methane production.
What’s in it for the farmer?
Our program offers various benefits for the farmer, ranging from extra income and yield increase to a more sustainable business model.
Potential extra income through the sale of reduction units
You are expected to receive a fixed price per reduction unit, resulting in a potential upside based on implementation cost.
Improved soil health & fertility
By implementing our soil-based interventions as a means to reduce fertilizer rates, farmers can improve the health of their soil.
Reduced input costs
By decreasing fertilizer use, we can reduce the input cost for feed production.
Potential increased milk yield
By implementing offered interventions such as feed supplements, milk yield as well as the fat and protein percentage can increase.
More future-proof farming
By implementing cow-based and/or soil-based interventions, farmers can reduce emissions, making them ready for the future.
Local agronomic advisors
In addition to the above benefits, the Rabo Carbon Bank partners with local agronomic advisors to provide farmers with the right technical assistance to select and implement the most appropriate practices and remove the burden of data collection and monitoring.
What’s in it for the corporate?
Scope 3 emissions represent the largest percentage (>90%) of most Food & Agriculture companies' total emissions. Reduction units are a helpful instrument in addressing this huge challenge as they can be used towards Scope 3 accounting, unlike carbon credits. Using the decarbonizing supply chains program, a company in a dairy supply chain can ensure predictable costs and verified results for Scope 3 emissions reduction at scale.
Achieve Science-based results
We strive for accurate results based on scientifically proven methods. We follow the GHG Protocol, Value Chains Interventions Guidance, and Science-Based Targets initiative recommendations.
How it works
Frequent asked questions
Are you a Rabobank client in the dairy supply chain based in the US? Contact us to find out if you are eligible to participate in our pilots.