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Center for Sustainable Business | Food and Agriculture Toolkit

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Return on Sustainability Investment™

Food and Agriculture Toolkit


Explore in-depth strategies, case studies, and monetization tools that quantify the benefits of sustainability across the food and agriculture value chain.

Grounded in the ROSI™ methodology developed by CSB, the unique framework helps sustainability and financial leaders understand and calculate where value exists within sustainability strategies across the food and agriculture value chain. Each individual strategy is equipped with practices across the supply chain, benefits corresponding to the defined mediating factors, and suggested monetization methods.


Monetization Tools

Download our excel-based models to understand and calculate the benefits of  the sustainability strategies:

Implementing Sustainable Sourcing

Food and Agriculture companies are investing in strategies to ensure sustainable sourcing of ingredients including setting sustainable sourcing requirements, requiring certifications, entering into supply chain sourcing projects and partnerships, and/or providing traceability and verification through audits.

Drawing on a collaboration with McCormick, CSB has developed a monetization tool for understanding how implementing a sustainable sourcing program can improve risk management

Drawing on a collaboration with Mars, CSB has developed a monetization tool for understanding how a sustainable sourcing program can reduce risk by way of improved supplier relations. 


Improving Soil Health

Food and agriculture supply chain participants are investing in strategies to improve land use and productivity through implementing soil health practices (conservation tillage, use of cover crops, crop rotations and nutrient management).

Drawing on a collaboration with Cargill, CSB’s model for soil health can be used to quantify financial benefits of implementing soil health practices on soybean to farmers.  While CSB’s model for non soil health practicing farmers is designed to provide farmers yet to begin practicing soil health, with a tool to get indicative estimates of the benefits they can expect by adopting soil health practices on their farm.


* The estimates of farmer benefits were based on a detailed, but small sample size (4 farmers in Iowa, Indiana, and Ohio), all values are however within the range of existing and available academic and non-academic studies about soil health. Users of this model must be aware that actual soil health benefits on their farm may differ significantly from this model based on contextual factors (e.g. farm characteristics, management decisions, soil types, climate, crop selection, state location, etc.)


Adopting Sustainable Packaging Solutions

Food and agriculture supply chains are innovating to reduce packaging and incorporating circularity principles across many parts of their value chain - from new packaging design and material substitution to creating infrastructure that supports take back programs.

Drawing on a collaboration with a food and beverage company, CSB has developed a monetization tool for understanding the benefits of increasing recyclable content in food packaging material. Through early innovation in packaging design, the company created business growth opportunities while potentially reducing risk for itself and its clients.


Explore the Strategies

Through our research we have used the Return on Sustainability Investment (ROSI™) Framework to develop tools that companies can use to explore how sustainability strategies may drive financial benefits.

Case Studies

HSBC funded three key ROSI projects to inform the food and agriculture framework. Case studies below demonstrate the strategies in action.
AB Inbev case study

AB InBev

Anheuser-Busch (AB) explored the benefits of ROSI's soil health strategy. Working with barley growers to accelerate the adoption of nutrient management practices on-farm improved operating efficiency, reduced Scope 3 carbon emissions, and enhanced brand value. ROSI results show benefits amounting to ~$40 million in 10-year NPV and an average annual operating income improvement of ~$7.5 million.

Hero

Hero Group

Hero Group explored the benefits of ROSI's biodiversity and ecosystem conservation strategy. Working with farmers to promote sustainable bee-friendly farming practices improved fruit pollination and yields, reduced input costs for growers and led to carbon sequestration benefits for achieving Scope 3 targets. A 10-year NPV of €3.6 million (before costs) was estimated with an average annual operating income impact of €650K.

Ingredion

Ingredion

Ingredion explored the benefits of ROSI's food waste strategy. Working with an affiliate corn grower to promoting the use of AflaPak™, an aflatoxin biocontrol product, to reduce on-farm waste in corn increased sellable yields for growers, lowered risk of supply disruption, and improved operational efficiency for the company.  The results showed the potential for a 9.3x return on investment to develop AflaPak™ and a 10-year NPV ~$15.5 million.

Thank You to our Sponsor, Company Partners, and Research Team

 

The framework was designed with the practical knowledge from ROSI collaborations. Inputs into the framework include HSBC-funded research projects, with partners AB InBevHero Group, and Ingredion as well as individually-funded ROSI projects with Applegate, Cargill, Investindustrial, Mars, and McCormick.

CSB contributors to the project include Tensie Whelan, Chisara Ehiemere, Elyse Douglas, Divya Chandra, Rithu RamanMaggie Paruta, and consulting support from Martin Delaroche. Lastly, we thank our student assistants Kathryn Danielsen (MBA '21)Alice Davison (MBA '24), and Stella Yao (MPA '21).