Supply chains tracking CO2 emissions will be required by law

August 1, 2016

The Agro-food sector is strongly threatened by the impact of the Climate Change and, on the other hand, the sector itself is causing a great deal of Greenhouse Gas (GHG) emissions. Even though there is a growing interest on the Climate Change related issues, there are currently, only a few agro-food sector companies in Italy which are actively carrying out programs or separate actions within their supply chains to compensate the GHG emissions. In fact, on this aspect, our country is behind others and should, adapt to the new requirements as soon as possible.

This graphic (click here to enlarge) shows that almost all the companies in the Agrifood business, considered in the CDP study on supply chain in 2015, are focused on reporting the emissions related to their direct activities (scope 1-2) however just a few are considering the emission associated with the supply chain (scope 3) where the emissions volumes are bigger. 

To track and quantify the CO2 emissions in line with the internationally recognized scientific principles is the first step to implement a credible emission reduction strategy for an agro-food supply chain as well as to meet the increasing demand for the sustainability raising from the market and the legislation. Such actions aim at reaching the entire neutralization of the climatic impacts of the supply chains. The latest legislative decrees promoting the virtuous and sustainable agro-food supply chains can be summarized as follows:

• The Carbon Footprint made for food-products is rewarded in public catering (Decreto Ministeriale sui Criteri Ambientali Minimi, July 2011, in force).

• Direct financial facilitations for the sustainable supply chains on the guarantee costs of the procurements (Article 19 of "Collegato Ambientale", December 2015).

• Through the PSR calls of the period 2014–2020, incentives are offered to the companies that have voluntary certifications such as traceability of the supply chain (ISO 22005), the product carbon footprint (CFP), ISO / TS 14067. Rewarded, in this context, also the products with Life Cycle Assessment (LCA) made with UNI EN ISO 14040: 2006 and 14044: 2006 as well as the products with "Environmental Footprint of Products" (PEF).

In other words, the decision to be in line with the global needs related to the Climate Change, can result strongly advantageous for the companies of the agro-food sectory as well as for the actors of the organized large-scale retail trade (Grande Distribuzione Organizzata, GDO). In many European countries large-scale retail sellers (GDO) have demonstrated an interest and real engagement regarding their suppliers by offering incentives for CO2 efficiency or other commitments against the Climate Change. 

It needs to be stressed that tracking of GHG emissions and compensating them is equally important and relevant for the supply chains which already have certifications like organic production, fair trade or the certification of Rainforest Alliance.

With the help of CarbonSink, highly specialized consultancy company focused on the development of sustainability strategies and compensation of CO2 emissions, the companies of the agro-food sector and fruit and vegetable producer, have the opportunity to align their activities with the new requirements and environmental standards.










A real case example from the agro-food sector is our client OrganicSur (F&F Group) led by Mr. Franco De Panfilis. This Italian company is a pioneer 

on the organic farming working for over 20 years with the organic production in the Southern parts of the World. OrganicSur (F&F Group) has commissioned CarbonSink to study their supply chains in South America. The first activity of CarbonSink has been to calculate the Carbon Footprint for the supply chain of the Fairtrade certificated organic bananas cultivated by APBOSMAN in the Piura Region in the Northern part of Peru. This is the first supply chain aiming at the neutralization of its GHG emission through the activities implemented within the supply chain. 

According to Andrea Maggiani, director of CarbonSink, the Paris Climate Agreement clearly showed that the private sector needs to adapt and contribute to the fight against Climate Change. Also in this light, the tracking, reduction and compensation the GHG emissions is a key requirement for successful competition in local, European and global markets.

Click here to download the brochure of CarbonSink.

For more information: 

Publication date: 7/29/2016


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