Financial Institutions

Reducing emissions: what happens beyond the farm gate

Are you a financial institution catering to the agricultural industry? Are you looking for innovative ways to support sustainable agriculture and maximise your business potential?

At Agrecalc, we understand the pain points you face in lending, insurance, mortgages, and other financial products specific to agriculture, especially in the light of today’s regulatory obligations, commitments and pledges by governments and the international community.

Those pledges revolve around emissions reduction plans across the value chain, including agriculture. 

With net-zero targets set across the board and the big push coming from the consumers for the producers to be more environmentally conscious and environmentally friendly, the waves are felt across the financial community as well. The investors simply want to invest in greener companies and businesses.


How can Agrecalc help with calculating emissions

Agrecalc is a Life-Cycle Analysis tool: that means it calculates emissions associated with the product from cradle to gate – from the birth of the product on the farm, all the way to its retailers. In the long run, it can help measure the impact of investments on agriculture. 

Agrecalc is a precise instrument that offers both breadth and depth of on-farm data, enabling users to identify hotspots and management practices that can deliver the biggest emission reductions. The software is regularly updated with the latest scientific research to ensure it provides accurate and up-to-date emissions factors. In addition, the team behind Agrecalc are always on hand to offer expert support and advice.

As such, Agrecalc Software-as-a-Service is a valuable tool for financial institutions that are working on finding new ways to incorporate carbon footprint calculations into financial products and services, and thus usher new options available to customers. 

Understanding emissions scopes

Organisations are increasingly measuring and monitoring reductions in GHG emissions as part of their road to net zero.

The IPCC Greenhouse Gas Protocol defines three scopes of emissions reductions to help focus net zero efforts.

Scope ’ GHG emissions are those from sources owned or controlled by the reporting entity and can include soil N2O from fertilisers and vehicles. Scope 2 GHG emissions are indirect, associated with the production of electricity, heat, or
steam purchased by the reporting entity.

Scope 3 encompasses all other indirect emissions – emissions that are beyond an organisation’s direct control but are emissions that the organisation is indirectly responsible for across its value or supply chain e.g. purchased goods such as milk bought from a farm by a cheese making company.

Mandatory reporting of Scope 3 emissions, along with Scope 1 and 2, is now required by The International Sustainability
Standards Board (ISSB). Many organisations around the world are using the ISSB standard to report and demonstrate their
commitments towards net zero to investors, customers and governments.

Scope 3 emissions from field-level agricultural production and land-use change account for more than 80% of all GHG
emissions from the global food supply chain and there is growing pressure to reduce GHG emissions from agriculture to
meet beyond-farm gate demands and commitments to meet net zero.
Reduced GHG emissions associated with soils, e.g. by altering manufactured fertiliser use, can be calculated and reported via Agrecalc. 

Empowering financial decisions with data

Financial institutions often struggle to access accurate and comprehensive data on the carbon footprint of agricultural operations. This lack of data hinders your ability to make informed decisions regarding lending, insurance, and investment in sustainable agriculture.

Agrecalc can provide financial institutions with precise and reliable reports, with detailed data on the carbon emissions of farming activities. Our advanced algorithms analyse various factors, such as crop type, livestock, fertiliser usage, and machinery, to calculate the carbon footprint of individual farms. This data empowers you to make informed decisions and offer customised financial solutions.

Overcoming the risk assessment challenge

Assessing the environmental risks associated with agricultural operations is a major challenge for financial institutions. Without a clear understanding of these risks, it becomes difficult to determine the eligibility of farmers for loans or insurance coverage.

With Agrecalc adhering to IPCC (2019) methodologies and PAS 2050:11 supply chain standards throughout, information gleaned from Carbon Audits can identify potential environmental vulnerabilities and highlight areas for improvement.

IPCC (2019) Tier I and II emission calculations are valid for all livestock and farm enterprise types, with calculations being updated to match the National GHG Inventory. The platform can extract large datasets securely and anonymously, enabling regional and country level analysis and insights.

This allows you as a financial institution to evaluate the sustainability practices in the agri-food supply chain and tailor their offerings accordingly.

Bypassing limited offering differentiation

You often struggle to differentiate your services and attract farmers seeking sustainable agriculture investments. Without a unique value proposition, you risk losing out on potential business opportunities.

Agrecalc offers financial institutions a distinct competitive advantage. By leveraging the available data, you can position yourself as a partner committed to sustainable agriculture. You can also develop specialised financial products that incentivise and reward farmers and food producers for adopting sustainable practices.

This not only attracts eco-conscious farmers but also positions your institution as a key player in driving environmental sustainability.

Aiding regulatory compliance

Meeting ever-evolving regulatory requirements is a significant challenge for financial institutions. The agricultural industry is no exception, with increasing scrutiny on carbon emissions and sustainability practices.

Agrecalc ensures that you stay compliant with emerging regulations, by providing accurate carbon footprint calculations, easily understandable from reports and dashboards. Our software enables you to demonstrate your commitment to regulatory compliance and align your services with evolving industry standards.

By empowering financial institutions with the calculations based on the latest available science, we enable you to invest in the growth and development of environmentally responsible farming practices.

Need expert guidance in decision making?

Contact us today to learn more how we can support your work.