Carbon accounting and good agricultural

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1 Carbon accounting and good agricultural management: Unilever and the Cool Farm Institute Emma Keller, Unilever GIZ, Kiev, Ukraine 25 th October 2012

2 Let s talk about 1. Unilever and carbon accounting 2. Sustainable sourcing ambitions 3. Challenges in agricultural carbon accounting 4. The Cool Farm Tool 5. Case studies: good management practices

3 UNILEVER AND CARBON ACCOUNTING

4 Company targets HELP 1 BILLION HALVE PEOPLE IMPROVE THEIR HEALTH & WELLBEING ENVIRONMENTAL FOOTPRINT OF OUR PRODUCTS SOURCE 100% OF AGRICULTURAL RAW MATERIALS SUSTAINABLY SEAC

5 Reducing our total value chain impacts GREENHOUSE GASES WATER WASTE OUR DIRECT 43% 75% 63% IMPACTS ARE CO 2 from energy use (kg/tonne production) Water use (m 3 /tonne production) Waste (kg/tonne production) RAW MATERIALS MANUFACTURE DISTRIBUTION / RETAIL CONSUMER USE DISPOSAL 26% 3% 2% 68% 1%

6 Upstream carbon accounting Source: Significant proportion of impact is in the upstream agricultural supply chain Previously omitted from corporate GHG inventories SEAC Own data for Life-cycle assessments? Source: www. Walkerscarbonfootprint.co.uk

7 Agriculture is important to Unilever 50% of our raw materials come from agriculture

8 Our top agricultural materials We source significant amounts of the worlds proportion of some key crops Target to ensure all are sourced sustainably

9 SUSTAINABLE SOURCING AMBITIONS

10 WHY DOES SUSTAINABLE SOURCING MATTER? High We have a big footprint in an area of limited control. High U nilever s Influence e Environ nmental Footprint Low Natural Transportation Manufacturing Product Resources Distribution Consumers Low SUPPLY CHAIN

11 Our definition of sustainable agriculture Sustainable agriculture aims to deliver (sufficient) raw materials from production systems that: High quality yields Optimal resource use Reduce environmental impact Contribute to better rural livelihoods AND help Unilever to reduce the footprint of our raw AND help Unilever to reduce the footprint of our raw materials (e.g. eliminate deforestation from our value chains)

12 Two options for implementation Certification In or out Do s and don ts Independent The seal is the story System costs Verification Measured improvement Action plans Unilever driven Tell your own stories Value chain investment *See latest version of scheme rules

13 Certification Recognise and acknowledge certain certification schemes Benchmark standards against our code Helps to avoid duplication of effort.

14 Self verification sustainable agriculture code Standard of Unilever sustainable agriculture Applicable to all our agricultural raw materials Used as a standard and to monitor suppliers progress towards sustainable agriculture.

15 Chapters of the SAC Continuous improvement Agrochemicals and fuels Waste Energy and Greenhouse gases Click on links for more information on scope and general content Soils Social and human capital Water Vl Value chain hi and dlocal l economy Biodiversity Animal welfare Training

16 CHALLENGES OF FARM GHG ACCOUNTING

17 Challenges at the farm level Robust Science and methodology Complexity, variability and uncertainty Data capture and distribution Practical farm level methods to combine management Practical farm-level methods to combine management and measurement

18 Where are the big uncertainties? Pre-farm Up to harvest Post harvest Machinery/equipment manufacture, fertiliser/pesticide production Machinery use CO2 emissions from soils Nitrous oxide, methane from soils Livestock emissions, e.g. enteric fermentation from cattle Manure management, compost Primary processing, e.g. drying, milling, chilling, storage Transportation Consumer use finished product production, package, cooking, waste disposal

19 Agricultural GHG Calculators Many agricultural GHG calculators exist Tool name Developer Country CALM Circle Squared Ltd UK Climate Yardstick CLM NL FarmGas Australian Farm Institute Australia Palm GHG (Henson and Chase) RSPO Global Dairy Footprinter Scottish Government Scotland GHG Farm Agriculture and Agri-foods Canada C-Plan See 360 Ltd UK DAYCENT Colorado University US Canada Cool Farm Tool UoA, Unilever, SFL Global RSB GHG Tool RSB Global

20 THE COOL FARM TOOL

21 The Cool Farm Tool Available for download: Farmer focused tier 2 tool for on-farm GHG balance Generic, globally applicable Practical and management focused offering decision support Allows exploration of mitigation options Data: farmers know and can complete on farm combined with robust empirical data models

22 Cool Farm Tool data inputs Farm energy Fertilizer emissions Livestock Sequestration Emissions from: o Electricity o Diesel used in GHG emissions arising from: o Fertilizer type emissions GHG emissions arising i from: GHG emissions sequestered from: oland L d Use changes field o Fertilizer o Feed omanagement o spraying nutrient/product o Manure changes o tillage ofertilizer application management otillage oharvesting rate o Livestock ocover C o Fertilizer management and cropping application method ocompost productive phases o Emissions related omanure Transport energy to natural microbial otrees T planted Emissions from: o Road conversion of N in the soil, in which N2O can be lost to o Rail the atmosphere. o Air o (Other agrichemicals o Ship included also pesticide applications)

23 Using the tool LCM 2011 Berlin 28 th 31 st August Emma Keller, University of Surrey and Unilever

24 Management (and mitigation) options Current Reduced N application Introduce no till Just converted from woodland LCM 2011 Berlin 28 th 31 st August Source: Jon Hillier s presentation

25 CASE STUDIES

26 Cool Farming options (GACA Global agricultural climate assessment) A number of companies and sponsors involved: Covering a range of farming systems and geographies: LCM 2011 Berlin 28 th 31 st August Source:

27 Project locations. Germany Canada Azerbaijan USA Jamaica India Guatemala Nicaragua Colombia Egypt Kenya Tanzania

28 What s unique about this project? Project arc spans from practical actions at field and farm level to creative supply chain solutions. 1 Project Jointly improved arcs from calculator practical that actions balances at pragmatism field & farm and level to influencing the policy framework. 2 precision, with high management sensitivity. Farmer focus: what can be done on this field, in this place. 3 Shared learning among a global consortium of food sector leaders 4 on the GHG mitigation potential of key agricultural systems.

29 Example Darjeeling/India Tea cooperatives: Current situation: 30-40% yield cuts in the last 5-10 years kg of pruning material annually left for aerobic decay 5-8 tons of cow manure per year left on pits for 1 year (+) and then used in vegetables The emissions were assessed and calculated with the CFT within 1 hour during an onsite visit the CFT model showed 30% emission reduction through composting due to increased SOM 1 year later production went up by 20% through making carbon dynamics easy and obvious, using local resources

30 Training Indian tea growers on using available biomass (manure & pruning) for composting 29/10/

31 CO2 Emission Sequestration 30% CO2 Reduction Improving water holding capacity by up to 40% after implementing composting 29/10/

32 Baselining tomato growers (California) Yields between tons per acre GHG footprints range between kg CO2e/ton product Similar emission hotspots

33 The Potato CFT in use Part of PepsiCo s s 50 in 5 initiative Trialled with over 60 farmers in UK and Europe Robust results comparable to other studies PepsiCo s Carbon Footprint calculations so far.

34 The ecool Farm Institute ue Collaborative independent not for profit organisation Mission: enable millions of growers globally to make more informed on farm decisions thatreduce their environmental impact. lf t l d t t t see: and contact us at info.coolfarmtool.com

35 Thank you Comments and questions? Contact: