FUTURE OF FOOD

TRUE COST ACCOUNTING FOR TRANSFORMATIVE CHANGE

LANDSCAPE and BROADER CONTEXT

April 2019

FOR INTERNAL USE ONLY

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INTRODUCTION To better understand the broader context of true cost accounting for food systems, we asked several colleagues to provide a list of true cost accounting (TCA) and impact valuation initiatives for food systems. Although not exhaustive, this list provides a useful overview of what is happening in the fields of TCA for food systems and impact valuation.

Over the past 20 years, the field has focussed on natural capital and has recently begun expanding to include social, cultural, and health impacts. TCA has been applied by food sector companies, civil society organizations, governments, policymakers, researchers, and donors interested in food systems issues during this time. The TEEBAgriFood Evaluation Framework builds on this extensive history to: a) provide a holistic analysis of all impacts, and b) focus specifically on food systems.

We invite you to contribute to this landscape assessment. Over the next year, the Global Alliance for the Future of Food is supporting an inventory and analysis of TCA for food system initiatives and studies that will result in a searchable database. This tool will support those applying TCA across food systems to better understand methodologies, approaches, and data. We recognize there is a long history of work on TCA across scales and sectors, and many communities of people are working to advance this field. At the Brussels convening, and after, there will be time for you to share any work you are aware of that should be included in this landscape assessment and inventory.

This landscape assessment is organized in the following categories:

Acknowledgements ....................................................................................................................................... 2

Global Alliance for the Future of Food Supported Initiatives and Partnerships ............................................ 3

True Cost Accounting for Food System Initiatives, and Initiatives Focused on Environmental, Social, and Health Impacts or Indicators ....................................................................................................... 5

Select Food Sector Company Applications of True Cost Accounting ............................................................. 8

Natural or Multi-capital Valuation Initiatives .............................................................................................. 11

Government or Intergovernmental Valuation Initiatives ............................................................................ 13

Research Initiatives ..................................................................................................................................... 15

Ecosystem Valuation Tools .......................................................................................................................... 16

Corporate, Finance, and Investor Sector Reporting Initiatives .................................................................... 17

Private Providers of True Cost Accounting or Impact Valuation.................................................................. 19

ACKNOWLEDGEMENTS We would like to acknowledge and thank the people that contributed to this landscape assessment: Lauren Baker, Global Alliance for the Future of Food; Tobias Bandel, Soil and More; Adrian De Groot Ruiz, Impact Institute; Steven Lord, Oxford University; Ruth Richardson, Global Alliance for the Future of Food; Laine Young, Wilfred Laurier Centre for Sustainable Food Systems.

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GLOBAL ALLIANCE FOR THE FUTURE OF FOOD SUPPORTED INITIATIVES AND PARTNERSHIPS

True Cost Accounting for Food Systems Community of Practice The purpose of the Community of Practice is to connect initiatives related to TCA in food and agriculture in order to encourage networking, learning, and collective action, and maximize positive impact.

Many groups and individuals are engaged in work relating to TCA for food systems, each approaching the issue from their own perspective. Although informal connections do exist among the actors involved, there are disparate key messages and few formalized mechanisms for collaboration, knowledge sharing, and supporting the overarching shared goal of transitioning to more sustainable food systems through bringing transparency and internalizing as-yet externalized costs of food/agriculture systems. To this end, the Global Alliance for the Future of Food has launched a Community of Practice of key actors in the area of TCA for food systems with a focus on: − Promoting dialogue and action to measure and reduce external costs; − Food and agriculture along entire value chains, from production to consumption; − All capitals, including natural, social/cultural, and human; − Multiple applications related to scale, geography, enterprise, etc.; and − Building a community of practitioners to advance and apply TCA for food systems.

True Cost Accounting for Food Systems Accelerator Through discussions with key stakeholders involved in these initiatives, the concept for a “True Cost Accounting for Food Systems Accelerator” has emerged to integrate and coordinate activities, facilitate analysis, support communities of practice, and develop an overarching narrative for work across TCA for food systems.

The goal of the Accelerator is to bring TCA to scale by creating a TCA for food systems knowledge hub that reviews, consolidates, operationalizes, and shares the results, learnings, and practical experience of individuals and organizations involved in TCA for food systems.

As opposed to considering singular homes for the Accelerator, TEEBAgriFood, and the TCA CoP, the main view is that a constellation approach would be strategic and beneficial. The idea would be to have the Food Systems Accelerator act as: − A central hub for the global TCA community, including practitioners, academicians, business leaders,

farmers, policymakers, and other relevant stakeholders; − A dynamic “repository” for general TCA studies and databases; − A dynamic “repository” for specific TEEBAgriFood studies and databases; − A forum for analysis, synthesis, learning, and improvement; and − A collective voice for the power and potential of TCA to transform global food systems.

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U.N. Environment TEEBAgriFood The TEEBAgriFood initiative seeks to provide a comprehensive economic evaluation of the “eco-agri-food systems” complex and to demonstrate that the economic environment in which farmers operate is distorted by significant externalities, both negative and positive, and a lack of awareness of dependency on natural, human, and social capital. TEEBAgriFood is hosted by U.N. Environment, funded primarily by the Global Alliance for the Future of Food and other institutional and government donors. It is led by an independent study leader and governed by a project steering committee comprising senior experts across agriculture, food, health, and ecosystem economics. TEEBAgrifood has released “Measuring What Matters in Agriculture and Food Systems: A Synthesis” and “Scientific and Economic Foundations Report.” The framework is being tested across a range of agricultural systems, practices, products, and policy scenarios against a comprehensive range of impacts and dependencies across food value chains.

TEEBAgriFood Applications The Global Alliance for the Future of Food has supported a number of applications of TEEBAgriFood, including three key studies: 1. “Application of the TEEBAgriFood Valuation Framework to Corn Systems in Minnesota, U.S.A.,” by

Harpinder Sandhu et al. 2. “A TEEBAgriFood Analysis of the Malawi Maize Agrifood System” by Stephanie White, Michigan State

University 3. “On-Farm Sustainability Metrics” by Patrick Holden and Adele Jones, Sustainable Food Trust

Food System Impact Valuation (FoodSIVI) Food System Impact Valuation (FoodSIVI) is an Oxford University–led initiative between academia, industry, and civil society to promote standardized and pre-competitive measurement and monetary valuation of environmental, social, and health impacts of food systems. FoodSIVI’s overall purpose is to work with other impact valuation and TCA initiatives and actors to enhance food systems so that they are more sustainable, resilient, and restorative and deliver better health outcomes. FoodSIVI aims to: 1) improve impact valuation methodologies and methods in order to operationalize the Natural and Social and Human Capital Protocols for food systems; 2) promote the development of standardized and comparable data, and convergence of current methods toward a common agreed approach; 3) promote the inclusion of, and undertake research in, environmental, health, and social data and its use in emerging food information and technology systems; and 4) initiate and promote uses of impact valuation for food system governance, regulation, public procurement, research, and consumer labelling through a wide and diverse network.

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TRUE COST ACCOUNTING FOR FOOD SYSTEM INITIATIVES, AND INITIATIVES FOCUSED ON ENVIRONMENTAL, SOCIAL, AND HEALTH IMPACTS OR INDICATORS

EAT-FOLU The Food and Land-Use Coalition, launched at the U.N. General Assembly, is comprised of over 30 organizations working toward the transformation of global food and land-use systems. This coalition is working on global and national science-based targets and pathways to meet these as a way of informing and engaging the private sector.

Fairtrade International Fairtrade International is working actively on true cost accounting. Since, 2015 it is measuring the social and environmental costs of banana production. In 2019, Fairtrade International published a global study on the external costs of banana production carried out by True Price and Trucost. The management of Fairtrade International has outlined steps to further improve its externalities. Fairtrade International has also developed with True Price a methodology to measure the actual income of small-holder farmers, in order to steer on a living income for farmers. It has been applied to amongst others cocoa and coffee farms. Fairtrade International has used the results, which shows significant under-earning under thousands of cocoa-farmers, to update its policies.

Hivos Hivos is a Dutch development aid organization that both financially and content-wise supports ecological and socioeconomic research, capacity building, and policy projects in the food and farming sector. Hivos commissioned a true cost assessment of Zambia’s maize sector comparing different farming systems. The report was completed by Hivos staff and Soil & More based on guidelines jointly developed by EY and Soil & More. The report was presented to representatives from the Dutch and Zambian government during a World Food Day event in The Netherlands in 2018.Hivos has also been working since 2014 on true pricing in rose farming in East Africa. It has conducted published research into environmental and social external costs throughout the supply chain and has focused on women rights and gender inequality. Hivos has worked with rose growers and retailers on improving their externalities and empower local experts to help them do true price calculations. Every year the progress is presented at the International Flower Trade Expo in Kenya.

IFOAM IFOAM organics is an international umbrella organization that connects diverse stakeholders contributing to organics across the globe. IFOAM’s work on Organics 3.0 makes the link between TCA and the organic sector. The document describes several ways that TCA can improve performance in the organic sector, such as enabling self-evaluation, possibility for incorporation into certification schemes, landscape-based applications, policy reform, the price of goods, and as a basis for blockchains and cryptocurrency development. IFOAM recommends that the organic sector take on TCA and partner with those already working on it.

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In a consultative process led by the Sustainable Organic Agriculture Action Network SOAAN, the organic movement developed the guidance paper “Full Cost Accounting to Transform Agriculture and Food Systems. It includes a succinct theory of change and a call to action how to support and make use of TCA.

Impact Institute The Impact Institute is a social enterprise. The mission of the Impact Institute is to empower organizations and individuals to realize the impact economy. The Impact Institute does this by creating a common language for impact through the publication of open source standards and by providing the tools, training, and services to implement those standards. The Impact Institute released the Framework for Impact Statements that intends to help organizations construct their own impact statements. The Framework provides a standardized framework to measure, value and report the impact of organizations, in analogy to the financial statements.

Public-Private Partnership on True and Fair Pricing of Products in Agriculture and Horticulture This project running from 2019-2022 has as central aim to develop and pilot test a scientifically founded and broadly accepted open methodology to calculate true prices and establish fair pricing practices. It was initiated by Wageningen University, True Price and Bionext and backed by a consortium of various banks, companies and civil society organizations. It is funded by the private sector and match-funded by the Dutch government. The initiative has started in the Netherlands, but it is open to participation of organizations worldwide. The target outcomes are (i) a tested open methodology to calculate true prices, (ii) a tested approach to establish fair pricing practices, (iii) consumer research into how such information can best be presented to consumers, (iv) case practices with companies and (v) scientific papers and other documentation for professionals to justify and communicate the results.

Sustainable Food Trust (SFT) The Sustainable Food Trust (SFT) is a U.K.-registered charity in response to the worsening human and environmental crises that are associated with the vast majority of today’s food and farming systems. TCA for food systems is one of SFT’s key issues. Work on TCA includes a report on the true cost of U.K. food using an on-farm assessment framework (and advocating harmonization of TCA methods for farm sustainability).

U.S. National Academies of Sciences, Engineering, and Medicine: Assessing Effects of the Food System The consensus study report “A Framework for Assessing Effects of the Food System” develops an analytical framework for assessing the effects associated with the ways in which food is grown, processed, distributed, marketed, retailed, and consumed in the United States. The framework allows users to recognize effects across the full food system, consider all domains and dimensions of effects, account for systems dynamics and complexities, and choose appropriate methods for analysis. This report provides example applications of the framework based on complex questions that are currently under debate: consumption of a healthy and safe diet, food security, animal welfare, and preserving the environment and its resources.

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WBCSD: FReSH True Cost of Food FReSH (Food Reform for Sustainability and Health) is one of the key initiatives of WBCSD’s effort to drive the transformation of food systems and to create a set of business solutions for industry change. It is a global partnership of over 40 businesses that brings a consumption lens and systemic approach across food systems to drive industry change. Aligning with science-based targets, the partnership works backward through the food chain to determine what levers businesses can pull to work toward food systems reform. FReSH’s True Cost of Food initiative seeks to identify the methodological and data gaps that need to be filled to make TCA more robust, consistent, and user friendly. It also explores what is required to establish true cost approaches in the business environment, moving TCA from corporate sustainability teams to the desks of CEOs and CFOs. These organizational dimensions are especially critical in making TCA a core tool of strategic business decision-making. https://www.wbcsd.org/Programs/Food-Land-Water/Food-Land-Use/FReSH/Resources/unpacking-the-value-of-the-food-system

World Resources Institute (WRI) The mission of the World Resource Institute (WRI) is to move human society to live in ways that protect Earth’s environment and its capacity to provide for the needs and aspirations of current and future generations. WRI focusses on seven global challenges including food. Reports include creating a sustainable food future (2018) and revaluing ecosystems with food examples (2015).

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SELECT FOOD SECTOR COMPANY APPLICATIONS OF TRUE COST ACCOUNTING

ABN AMRO ABN AMRO, one of the two leading Dutch banks, engaged early in the true cost discussion on the role banks play in reshaping financial markets. In order to test the available TCA approaches, ABN AMRO commissioned Soil & More to compile a true cost assessment of Dutch versus Spanish, and conventional versus organic, cauliflower systems. Natural capital risks were assessed based on FAO’s total cost accounting recommendations as well as the TCA guidelines jointly developed by EY and Soil & More. In addition, ABN AMRO has been measuring and valuing its own the impact since 2015 in various sectors, such as cocoa. In 2019, ABN AMRO published an Impact Report, containing an Integrated Profit & Loss of the entire bank, which includes an agricultural lending portfolio. This report was based on the Framework for Impact Statements of the Impact Institute. This impact report included an External Cost Statement, specifying the social and environmental costs attributable to the bank.

Allianz Allianz is among the top 10 global insurance companies. One of Allianz corporate insurance services is “business interruption.” In June 2018, Allianz published a report about the “business sector analysis of natural capital risk,” looking at others in the food and beverage industry. The report presents dependencies, risks, and mitigation options for the food and beverage industry and clearly articulates that intensive farming practices increase the natural capital risk from an insurance perspective, affecting a company’s insurance premium.

Alnatura Alnatura is one of Germany’s largest organic-only retailers and the number one German food brand. Alnatura products are also sold in selected retails chains across Europe. In 2015, Alnatura commissioned a TCA study on select dairy supply chains, mostly looking into natural capital aspects including indicative monetization. The study was compiled by Soil & More based on TCA recommendations from the FAO.

Ambootia Ambootia Tea Group is Darjeeling’s largest organic and biodynamic tea producer. In order to showcase the ecological and socioeconomic benefits of organic farming in Darjeeling to government officials and the Indian tea board, Ambootia used the true cost approach jointly developed by EY and Soil & More as well as the total cost accounting recommendations provided by the FAO.

Food, Farming, and Finance Pilot; Eosta; EY; Soil & More Eosta, an international distributor of fresh organic and fair fruits and vegetables, commissioned the “True Cost Accounting in Food, Farming, and Finance Pilot.” The report was produced with EY and Soil & More. Soil & More has the ambition to enable the transition to a food system that positively impacts ecological, social, and economic value creation, i.e., a system that creates true net value. Eosta is still active on TCA.

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Lebensbaum Lebensbaum is the market leader in Germany for organic teas and coffee. Lebensbaum commissioned a TCA study in 2017 to assess the monetary impact of natural capital and selected social capital aspects of its three main ingredients (coffee, herbal teas, and tea) as well as its processing facility.

The report was compiled by Soil & More based on FAO’s total cost accounting recommendations as well as the TCA guidelines jointly developed by EY and Soil & More. The study is public but not yet available online.

Quarta Vista (“Richtig Rechnen”/SAP) The project “QuartaVista” captures economic variables that take into account the three dimensions of society, nature, and knowledge in addition to financial profit. In this way, companies should be able to strategically align themselves with these and be managed accordingly. With this new understanding of the economy, modern companies — and the entire national economy — will ensure their success in the future. This project is co-coordinated by SAP, one of the world’s largest ERP software solutions, and Christian Hiss from “Richtig Rechnen.”

Royal DSM Royal DSM is a global company in Nutrition, Health and Sustainable Living. DSM does substantial research into the environmental and social effects of their products and participates in various coalitions such as the FReSH initiative of the WBCSD. In 2016, it published the results true value of Oatwell® in its annual report. Oatwell is an active ingredient made out of oats that can help reduce cholesterol and blood sugar levels. With True Price, DSM calculated various positive and negative externalities, including the environmental costs and health benefits for consumers and society.

Sekem Sekem is an Egyptian initiative encompassing farming and food as well as cotton-processing facilities and a school, kindergarten, medical centre, and university. Since its foundation back in 1977, Sekem strived to show the ecological and economic benefits of sustainable farming, being a role model for Egypt. In 2011 Sekem compiled a TCA-based strategy paper to model the national economic impact of a transition to 100% organic farming in Egypt. This first assessment was done jointly with Soil & More. It was updated in 2016.

Tony’s Chocolonely Tony Chocolonely is one of the largest Dutch chocolate companies. It actively manages the impact of its chocolate in various ways. Since 2013, it has also been calculating the true price of its chocolate, estimating the external costs of its production due to amongst others child labour, forced labour, underearning, deforestation, climate change and soil pollution. It has taken various steps to actually improve its external costs. Based on the estimate of the living income gap, it pays various millions of dollars extra to its farmers (on top of the market price and the fairtrade premium). In addition, it has put the climate change costs on its actual profit & loss. A 2018 study by True Price showed these measures have improved the true price of its chocolate.

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Van Vessem Bakery Chain Van Vessem is a Dutch SME that aims to improve the sustainability of the bread it sells to its retail customers. In 2018, it did a baseline analysis of the true price of its bread with True Price. Based on that, it developed a new bread ‘Haarlemmermeerbread’ with a different ingredient mix and production process that reduces the environmental costs of its bread production. This new bread has 50% less external costs than the average bread. This Haarlemmermeerbread is brought into production and is sold in its various bakeries.

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NATURAL OR MULTI-CAPITAL VALUATION INITIATIVES

EC Product and Organization Environmental Footprint A company wishing to market its product as environmentally friendly in several Member State markets faces a confusing range of choices of methods and initiatives. European Commission DG Environment has worked together with the European Commission’s Joint Research Centre (JRC IES) and other European Commission services toward the development of a harmonized methodology for the calculation of the environmental footprint of products (PEF) and organizations (OEF; including carbon). Several food products were piloted and weighting discussed.

ISO 14007/8 “ISO 14007 — Environmental management: Determining environmental costs and benefits” and “ISO 14008 — Monetary valuation of environmental impacts and related environmental aspects” provide a common framework, including established methods and common terms. The rationale for ISO to engage in this area is that there is already a strong trend in monetary assessments by government (i.e., the polluter pays principle), private sector (in reporting, risk assessment, etc.), and academia. Standards in environmental and monetary impact valuation are due in 2019.

Natural Capital Coalition Emerging from the TEEB work in 2012, the Natural Capital Coalition brings together global initiatives and promotes multi-stakeholder collaboration on approaches to natural capital. Their mission is to: 1) harmonize approaches to natural capital to scale solutions quickly; 2) promote behaviour shifts that focus on enhancing natural capital instead of depleting it; and 3) support the development of an enabling environment that aids natural capital thinking and integrates it into other initiatives. NCC produced the Natural Capital Protocol for business decision-making, with a Food & Beverage sector guide. Having identified data as a major gap to natural capital valuation, NCC is partnering with UNEP-WCMC.

Säid Business School Oxford In collaboration with the Mars Corporation, Säid Business School Oxford has developed the “Economics of Mutuality” to explore mutuality as a new principle for organizing business. Mutuality — a principle that emphasizes the fair distribution of the burdens and benefits of a firm’s activities — is seen as a promising new organizing value with the potential to strengthen relationships and improve sustainability. Mars Catalyst has conducted M&S case studies of ESG performance, the Responsible Business Forum, and social capital and agronomy.

Social & Human Capital Coalition (SHCC) Founded on the same principles as NCC, the Social & Human Capital Coalition (SHCC) is a global multistakeholder collaboration that brings together leading initiatives and organizations to help companies recognize, measure, and value the importance of people and communities. The “Social & Human Capital Protocol” has been released.

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WBCSD: Soft Commodities Forum The global demand for food — and soft commodities such as grains and oilseeds — continues to grow as the world’s population expands to an anticipated 9 billion people by 2050, accompanied by growth in incomes. These trends put pressure on land use and pose challenges to the sustainability of agricultural supply chains. The purpose of the Soft Commodities Forum is to advance collective action around shared sustainability challenges.

World Business Council for Sustainable Development: Impact Valuation Roundtable The Impact Valuation Roundtable is an informal group of over a dozen companies with the shared goal to build on and operationalize existing frameworks like the Natural and Social Capital Protocols. By sharing best practices and learnings, the group aims to: 1) facilitate uptake and implementation of available natural and social capital concepts; 2) identify benefits and limitations of techniques; and 3) achieve increased alignment on valuation techniques and data sources used.

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GOVERNMENT OR INTERGOVERNMENTAL VALUATION INITIATIVES

Governmental

Canada: Environmental Valuation Reference Inventory (EVRI) Environmental Valuation Reference Inventory (EVRI) is a comprehensive storehouse of over 2,000 international studies providing values, methodologies, techniques, and theories on environmental valuation.

Germany: Methodological Convention 3.0 Umwelt Bundesamt published the handbook “Methodological Convention 3.0 for the Assessment of Environmental Costs — Cost Rates.” In 2019 they plan to publish cost rates for certain damages to ecosystems, GHG in agriculture, nitrogen, and phosphorus.

Netherlands: Ministry of Economic Affairs Statistics Netherlands has compiled environmental accounts of the use of natural capital. This is collected in the Atlas Natural Capital and Environmental Prices Handbook. The Netherlands is also involved in TEEB.

U.K: Natural Capital Committee and Social Value Act U.K National Capital Committee provides advice to the government on the sustainable use of natural capital. Its remit also covers the benefits we derive from natural assets, such as food, recreation, clean water, hazard protection, and clean air. U.K non-financial prices handbook with supplements is included in The Green Book.

Intergovernmental

The Food and Agriculture Organization (FAO) The Food and Agriculture Organization (FAO) has developed the Sustainability Assessment of Food and Agriculture (SAFA) systems. This work includes the SAFA Guidelines that provide a holistic and inclusive framework for assessing sustainability performance in the food and agriculture sector, including crop and livestock production, forestry, and fisheries. At the request of SAFA practitioners, a series of other SAFA products has since been developed to support implementation of the guidelines. To date, the SAFA series now includes the SAFA Indicators document and also the SAFA Tool. SAFA Indicators outlines the protocols for setting assessment thresholds for the default indicators provided. The SAFA Tool is an easy-to-use software package that facilitates conducting a SAFA specifically at the supply chain level, while the SAFA Smallholders App is a simplified tool that allows assessment on Android cellphones and tablets for agricultural producers.

The FAO has also produced several reports: “Natural Capital Accounting” (2014) and “Methodology for Valuing Agriculture and the Wider Food System Related Costs of Health (MARCH)” (2017).

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Intergovernmental Panel on Climate Change / Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services The IPCC Working Group III 5th Assessment Report published a valuation of the social cost of carbon (see Section 3.9). The IPBES published an “Integrated Assessment and Valuation of Ecosystem Services: Guidelines and Experiences.”

International Union for Conservation of Nature (IUCN) The International Union for Conservation of Nature (IUCN) Netherlands commissioned the Bioscope Tool for estimates of biodiversity impact in supply chains.

United Nations: System of Environmental-Economic Accounting (SEEA) The System of Environmental-Economic Accounting (SEEA) is a national accounts framework that integrates economic and environmental data to provide a more comprehensive and multipurpose view of the interrelationships between the economy and the environment and the stocks and changes in stocks of environmental assets, as they bring benefits to humanity. “SEEA for Agriculture, Forestry, and Fisheries” (2012) integrates information on the environment and economic activities of agriculture, forestry, and fisheries using the structures and principles laid out in the SEEA Central Framework.

World Bank: Wealth Accounting and the Valuation of Ecosystem Services (WAVES) Wealth Accounting and the Valuation of Ecosystem Services (WAVES) is a World Bank–led global partnership that aims to promote sustainable development by ensuring that natural resources are mainstreamed in development planning and national economic accounts. By working with central banks and ministries of planning and finance across the world to integrate natural resources into development planning through NCA, it hopes to enable more informed decision-making that can ensure genuine green growth and long-term advances in wealth and human well-being.

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RESEARCH INITIATIVES

Food Climate Research Network: Plating Up Progress Plating Up Progress is a collaborative project to define usable metrics for assessing food industry progress in delivering sustainable and healthy diets. It will scope out the potential for developing a set of actionable, verifiable, and industry-relevant metrics that define sustainable and healthy eating patterns; and it will build a multistakeholder partnership to advance the uptake of these metrics by those assessing food industry performance.

Livestock, Environment, and People (LEAP) The LEAP program aims to understand the health, environmental, social, and economic effects of meat and dairy consumption to provide evidence and tools for decision makers to promote healthy and sustainable diets. Sponsored by Welcome Trust.

Schweisfurth Foundation and University of Augsburg, Germany Tollwood GmbH and scientists from the University of Augsburg compiled the study “How Much Is the Dish: Which Are the Real Costs of Food?” The study (commissioned by Schweisfurth Foundation) evaluates the external costs of German agriculture, looking specifically at nitrogen, greenhouse gas emissions, and energy consumption.

SUSFANS The EU ERC–sponsored project, “Sustainability Metrics for the EU Food System: A Review Across Economic, Environmental, and Social Considerations,” completed March 2019 with the objective to build the conceptual framework, evidence base, and analytical tools for underpinning EU-wide food policies. The focus in on food policy impacts on consumer diets and their implications for nutrition and public health in the EU; the environment; the competitiveness of the EU agri-food sectors; and global food and nutrition security.

Valuing Nature Network Valuing Nature Network is a five-year project that aims to better understand and represent the complexities of the natural environment in valuation analyses and decision-making. (Sponsored by NERC, BBSRC, ESRC, EPSRC, DEFRA.)

REFRESH A WP5 food waste life cycle costing. This EU ERC project is scheduled for completion June 2019.

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ECOSYSTEM VALUATION TOOLS

Cool Farm Tool, Cool Farm Alliance The Cool Farm Tool is an online greenhouse gas, water, and biodiversity calculator for farming (intended for calculation of flows but not impacts; impacts to be considered in later versions). Free for farmers.

Kings College, AmbioTEK, UNEP-WCMC: Co$ting Nature (version 3) Co$ting Nature is an open web-based tool for natural capital accounting and analyzing the ecosystem services provided by natural environments (i.e., nature’s benefits), identifying the beneficiaries of these services and assessing the impacts of human interventions.

LCA and LCIA Both Life Cycle Assessment (LCA) and Life Cycle Impact Assessment (LCIA) are substantial, developed, and largely standardized fields. Many open and closed data sources and platforms exist.

Stanford University Natural Capital Project Stanford University has developed this open suite of modelling tools to account for nature’s contributions to society so that leaders of countries, companies, communities, and organizations worldwide can make smarter decisions for a more sustainable future.

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CORPORATE, FINANCE, AND INVESTOR SECTOR REPORTING INITIATIVES

Accounting for Sustainability (A4S) Accounting for Sustainability (A4S) aims to inspire action by finance leaders to drive a fundamental shift toward resilient business models and a sustainable economy. Companies, investors, and governments are recognizing that long-term sustainable performance relies on an understanding of the interdependencies between financial, social, and environmental factors.

Carbon Disclosure Project (CDP) Carbon Disclosure Project (CDP) supports companies and cities to disclose the environmental impact of major corporations. It aims to make environmental reporting and risk management a business norm and to drive disclosure, insight, and action toward a sustainable economy. Provides occasional reports on food sector.

Carbon Tracker Carbon Tracker is an independent financial think tank that carries out in-depth analysis on the impact of the energy transition on capital markets and the potential investment in high-cost, carbon-intensive fossil fuels. Its team of financial market, energy, and legal experts apply ground-breaking research using leading industry databases to map both risk and opportunity for investors on the path to a low-carbon future.

Ceres Ceres is a sustainability non-profit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy.

FAIRR FAIRR believes that intensive livestock production poses material risks to the global financial system and hinders sustainable development. Its mission is to build a global network of investors who are focussed and engaged on the risks and opportunities linked to intensive livestock production. The Coller FAIRR Protein Producer Index assesses the largest global animal protein companies on critical environmental, social, and governance issues.

Global Reporting Initiative (GRI) Global reporting Initiative (GRI) is an international independent standards organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption.

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International Integrated Reporting Council (IIRC) International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession, and NGOs. The coalition is promoting communication about value creation as the next step in the evolution of corporate reporting.

Natural Capital Finance Alliance (NCFA) The Natural Capital Finance Alliance (NCFA) and its Secretariat was originally formed to support the signatories of the Natural Capital Declaration (NCD), which was launched at the Rio+20 conference in 2012. The declaration has been signed by the CEOs of more than 40 financial institutions from around the world. It formalizes their commitment to the integration of natural capital considerations into financial sector reporting. The Secretariat is led by the U.N. Environment Finance Initiative in Geneva and Global Canopy in Oxford, which together helped to create the Alliance. Creates guidance examples and tools for finance sector (e.g., ENCORE).

Sustainability Accounting Standards Board (SASB) The mission of the Sustainability Accounting Standards Board (SASB) is to establish and maintain disclosure standards on sustainability matters that facilitate communication by companies to investors of decision-useful information. Includes food and beverage sector standards.

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PRIVATE PROVIDERS OF TRUE COST ACCOUNTING OR IMPACT VALUATION

EcoMetrics: Restore the Earth The closed EcoMetrics method monitors, tracks, and collects data on a specific project, accounting for the environmental, social, and economic value created for funders and community stakeholders. It captures the full value of the project in a monetized form and can be integrated with IIRC reporting.

EVT: Earth Economics Earth Economics assists organizations in making decisions in investment and policy that prioritize the value of nature through healthy ecosystems and resilient communities. The organization provides closed ecosystem services valuation.

GIST Advisory I P&L GIST Advisory provides sustainability consultancy services to enable governments, corporations, civil society organizations, banks, and financial institutions to discover, measure, value, and manage their impacts on natural, social, and human capital.

Soil & More Impacts BV Soil & More is a consulting firm that provides services related to natural soil fertility management as well as impact assessment, including TCA. Soil & More has been involved in various, mostly private sector, initiatives related to TCA, focusing mainly on the natural capital risks and benefits at farming level. Soil & More closely cooperates with financial auditors (EY), banks (ABN AMRO, GLS, Triodos), and NGOs (FAO, GAFF, HIVOS, IFOAM).

Standard & Poor’s Financial Services Being one of the world’s leading rating agencies, Standard & Poor’s published a report in November 2017 on how environmental and climate risks and opportunities factor into global corporate ratings. They assessed 22 different sectors, including agribusiness and commodity foods.

The Sustainability Consortium The Sustainability Consortium (TSC) is a global non-profit organization working to transform the consumer goods industry by partnering with leading companies to define, develop, and deliver more sustainable products. TSC creates change through the implementation of a science-based, metrics-driven approach. Commissioned by Walmart. Closed methodology. Includes food and beverage working group.

Total Value Analysis EY Total Value aims to measure and value the most material aspects of value creation, which are usually hidden or go unmeasured. Total Value analysis shows how decisions affect the impacts for its stakeholders and society at large.

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TruCost TruCost, part of S&P Global, assesses risks relating to climate change, natural resource constraints, and broader environmental, social, and governance factors. TruCost created the first environmental profit and loss account with Puma. They are involved in TEEB AgriFood studies and commission evaluations of food sector companies.

True Price True Price is a social enterprise with the mission to realize sustainable products that are affordable to all by enabling consumers to see and voluntarily pay the true price of products they buy. True Price applies tested methodologies for impact measurement and valuation to calculate the external costs throughout the supply chain. This is a standardised 3-step process, which is applicable across all sectors and regions. True Price has led studies for a number of companies including Royal DSM, ABN AMRO, Tony’s Chocolonely and Van Vessem as well as non-profit organizations such as Fairtrade international, IDH and Solidaridad.

BASF: Value to Society BASF developed a new method with external experts to perform the first monetary assessment of the economic, ecological, and social impacts of its business activities along the value chain: the “Value to Society” approach.