Food companies are under increasing pressure to reduce the environmental footprint of their supply chain, which is frequently referred to as insetting. The objective of insetting is to reduce the GHG emissions from a company’s supply chain and customers. 19 Four programs have been developed to credit GHG reductions from the food supply chain: the International Platform for Insetting (IPI), Science Based Targets initiative (SBTi), Walmart’s Project Gigaton, and the Gold Standard’s Value Change Initiative (VCI). These programs are described below. International Platform for Insetting (IPI): In 2013, the IPI was founded and was officially launched in November 2015 during the international climate talks in Paris. There are currently nine companies using the IPI: H&M Group, Kering, L’Oréal, Pur Project, South Pole, Native, Ecosphere+, Climate Partner, and Conservation International. IPI’s definition of insetting goes beyond GHG reductions and includes the improvement of livelihoods and preservation of biodiversity. 20 Based on recent conversations with food and agriculture companies, at least one additional well-known international food company is currently evaluating joining IPI. In March 2022, IPI published a Practical Guide to Insetting , a 37-page document that “provides clear steps for corporate action on climate change and nature loss.” 21 The Guide provides general information to help corporations develop an insetting program. For example, in the chapter about internal insetting journeys, lesson four discusses developing systems that can track and consolidate the benefits of insetting. Among the tools referenced to collect data and quantify the climate benefits of projects is the Cool Farm Tool. The chapter on monitoring and reporting recommends projects look at the GHG Protocol on Removals and Land Use and SBTi’s for Nature framework. 22
SUPPLY CHAIN INSETTING PROGRAMS
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