Every type of business activity has an impact on the environment to some rate. This also applies to the agricultural sector. But it is often difficult to assess the direct impacts of production process. One of the mechanisms for understanding and measuring them is to calculate the carbon footprint – the greenhouse gas emissions that are caused along the entire path of a particular production or service.
Greenhouse gas emissions in agricultural production arise from technological operations, fuel consumption, post-harvest processing, energy consumption for drying and transportation of products. In addition, part of the greenhouse gas (GHG) emissions occur in the process of production the inputs and resources that are subsequently used in agriculture. This includes emissions from the production of fertilizers, pesticides, seed, etc.
Agriculture has a special place in terms of climate impact as an industry that sequesters greenhouse gases, in particular CO2, in the biomass of crops, and, subject to appropriate technologies, can also sequester carbon dioxide into soil organic matter carbon and soil humus.
The calculation of greenhouse gas (GHG) emissions and carbon footprint can have positive aspects, for example, analysis of the full technological cycle, allowing to identify critical control points and develop mechanisms for optimizing GHG emissions; justified implementation of innovations to limit GHG emissions; development of mechanisms for indirectly influencing the reduction of emissions from production.
Public opinion has been formed that both governments and businesses should be responsible for positive changes in the intentions to reduce GHG emissions as one of the main factors of environmental impact and climate change.
At the same time, economic mechanisms are also used to regulate GHG emissions: more and more companies are required to pay for each ton of CO2-equivalent emissions.
Therefore, monitoring and reducing GHG emissions is now becoming not only an obligation but also a potential competitive advantage for businesses.
In particular, the European Union has implemented the Non-Financial Reporting Directive (NFRD), which requires companies to include non-financial indicators in their annual reports or in separate documents starting in 2018, including information on environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption and anti-bribery, and diversity on company boards. This directive applies to public companies with more than 500 employees in the EU. This includes listed companies, banks, insurance companies and other public organizations. It recommends the use of international standards such as the UN Global Compact, OECD Guidelines, ISO 2600 or the Global Reporting Initiative (GRI).
In connection with the adoption of the European Green Deal, the Non-Financial Reporting Directive was revised as part of a strategy to strengthen the framework for sustainable investment. Mandatory EU sustainability reporting standards on environmental, social and governance aspects to be developed by the European Financial Reporting Advisory Group (EFRAG) were introduced. It also introduced a two-pronged reporting obligation for companies: that is, companies must report (1) information necessary to understand how sustainability issues affect them, and (2) information necessary to understand the impact they have on people and the environment. https://finance.ec.europa.eu/publications/commission-guidelines-non-financial-reporting_en
The first step in reducing the negative impact on the climate and the environment is to understand the impact of a particular process and/or technology. In this regard, it is necessary to choose a standard for calculating GHG emissions, according to which the company will account for, define boundaries and collect data, as well as identify emission factors in order to express the final results in terms of CO2-equivalents.
The 14064 series of international environmental standards defines principles and requirements at the organization level for the quantification and reporting of greenhouse gas emissions and removals. ISO 14064-1 includes requirements for the design, development, management, reporting, and verification of an organization’s greenhouse gas emissions; ISO 14064-2 specifies principles and requirements and provides project-level guidance for quantifying, monitoring, and reporting activities to reduce greenhouse gas emissions or improve their removal; ISO 14064-3 provides requirements and guidance for validating and verifying GHG emission claims and calculations.
There are a number of methodologies that are recommended for use in carbon footprint calculating. The Greenhouse Gas Protocol provides the most widely used standards for companies to account for GHGs https://ghgprotocol.org/.
The methodology of life-cycle assessment, a methodology for assessing the environmental impact of all stages of the life cycle of a commercial product, process or service, has also become widespread https://www.eea.europa.eu/help/glossary/eea-glossary/life-cycle-assessment
After the calculations are made, it will be possible to understand at what stages and in what processes it is possible to develop plans and measures to reduce GHG emissions, and to set specific goals for reducing the environmental impact of agricultural production.
