Strategic Intelligence: Net Zero Strategies in Agriculture (2024)

Strategic Intelligence: Net Zero Strategies in Agriculture (2024)

Summary

Why do agribusinesses need a net zero strategy?

Companies achieve net zero emissions by cutting greenhouse gas (GHG) emissions to as close to zero as possible, with any remaining emissions then “offset.” Agribusinesses are at risk of emissions pricing on fertilizer and shipping fuels and potential regulation on methane emissions. This report looks at three different net zero strategies for agribusinesses: regenerative agriculture, methane inhibitors, and precision agriculture. It also compares different agribusinesses' progress on emissions reduction and what targets they have all set.

Agribusinesses are introducing regenerative agriculture

By minimizing soil disturbance and agrochemical use, regenerative agriculture can help agribusinesses to reduce their emissions of the GHGs carbon dioxide and nitrous oxide. Regenerative practices are being adopted in some form and discussed by a large number agribusinesses.

Methane inhibitors are in the very early stages of development

The agriculture sector is the largest emitter of methane, a GHG with higher global warming potential than CO. While still in their infancy, methane-inhibiting technologies like alternative feeds and methane vaccines can help to mitigate the impact of livestock on the climate.

Equipment makers are investing in precision agriculture

By marrying together technologies like AI, variable rate application, and vertical farming, precision agriculture reduces the sector’s emissions by improving efficiency. It can help with both Scope 1 agrochemical emissions and Scope 3 land use-change emissions. Equipment manufacturer John Deere has invested heavily in precision agriculture.

Who is winning the race to net zero?

Emissions reporting among agribusinesses has improved significantly in recent years, with 65% of 20 selected agriculture companies reporting Scope 1, 2, and 3 emissions in 2023. Since 2021, Dupont, Barry Callebaut, and Bunge have made the biggest dents in their direct Scope 1 and 2 emissions.

Scope

• This report is a thematic brief, which identifies those companies most likely to succeed in a world filled with disruptive threats.
• Inside we predict how each theme will evolve and identify the leading and disrupting companies.
• This report covers the net zero theme, and the strategies agribusinesses are using to meet its challenge.

Reasons to Buy

• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• Develop and design your corporate strategies through an in-house expert analysis of a net zero by understanding the primary ways in which this theme is impacting the agricultural industry.
• Stay up to date on the industry’s major players and where they sit in the value chain.
• Identify emerging industry trends to gain a competitive advantage.