Supply Shed: Achieving Credible Traceability in AgFood Value Chains

Episode 2 - Supply Shed: Achieving Credible Traceability in AgFood Value Chains

Limited traceability and a lack of supplier-specific information present significant challenges for AgFood companies seeking to reduce their Scope 3 emissions. Segregated supply chains, which enable physical traceability, remain the exception rather than the norm, yet they are favored by third-party certifiers such as SBTi. Additionally, dynamic farming systems—despite their substantial environmental benefits—pose difficulties when accounting for the impact of specific crops, even within a single supply chain.

This is where the concept of the Supply Shed comes in: a group of suppliers within a specifically defined market that provides similar goods and services and can be shown to fall within a company’s supply chain. This approach is designed to help corporate adopt a pragmatic strategy to reduce their Scope 3 emissions, enhance traceability, and enable co-investment and co-claiming, all while preparing for the more time-intensive and complex demands of a fully traceable supply chain approach.

Key questions we will address for AgFood companies:

•  What are the main traceability challenges for AgFood companies?
•  What is this Supply Shed approach and how can I use it?
•  Is a supply shed aligned with the "sourcing region" definition from the GHG protocol?
•  What are examples of adoption of the supply shed around the world?
•  How can we ensure effective farmer progress without direct supplier engagement?
•  What are the other benefits of a supply shed approach beyond what accounting rules might say?