Transform agrifood systems, one contract at a time

We recognise the need to transform global agrifood systems to tackle climate change and nature loss. They account for roughly 30% of global greenhouse gas emissions and are a leading driver of nature loss, with most impacts occurring on-farm.

As the risks facing the food and agriculture sectors continue to grow, many forward-thinking companies have set ambitious climate and nature goals in transition plans and the focus is now on delivery. Legal contracts and processes equip companies to turn their commitments into action, and secure a resilient and prosperous future for business, people and the planet.

The Chancery Lane Project helps companies across the food and agriculture sectors harness their contracts to support more climate-aligned and nature-positive business practices.

Turn your climate and nature goals into action

The risks climate change and nature loss pose to business continuity in the food and agriculture sectors are perhaps most evident in the increasing crop failures, supply shortages and inflated food prices occurring globally. It’s no surprise that prudent companies have set plans and goals to protect and restore the climate and ecosystems they depend on to survive.

There are now a plethora of frameworks, tools and standards available to help companies operationalise their plans, for example, by setting science-based targets for emission reductions and removals relating to agriculture, land use change and land management using the SBTi FLAG Guidance.  

These commitments are great, but unless they are put on a legal footing, there’s little guarantee that they will be achieved. Our guides demonstrate how you can use governance and accountability mechanisms to align the board with climate goals and factor climate considerations into board decisions. They also show how you can integrate emissions-reduction targets and actions into contracts with your suppliers or partners.

Build transparent and resilient supply chains

For most companies in the food sector, the vast majority of their emissions are Scope 3 emissions occurring in their supply chain. Tackling this is a key challenge given the complex, global and opaque nature of many food supply chains.

Companies face growing pressure to improve transparency and sourcing practices to identify and reduce climate, nature and human rights impacts in their supply chain. This includes:

• increasing legislative and regulatory requirements (for example, in the EU Regulation on Deforestation-free Products, Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive),
• rising legal claims against food companies (such as Envol Vert et al. v. Casino), and
• changing stakeholder expectations, including investors, shareholders and customers.

Our guides outline how to request climate information in due diligence questionnaires and get information on contract emissions from suppliers, providing resources and support where necessary. Runa’s Clause and Antonio’s Clause illustrate how you can use contractual obligations to address key issues like food waste in supply contracts. These actions can help you with legal compliance and broader risk management and mitigation. 

Unlock collaboration and innovation 

Reducing and removing emissions and nature loss driven by agricultural production, land-use change, land management and supply chain activities are complex challenges that require significant collaboration and innovation across the whole food value chain. 

Longer-term supply contracts, price premiums and preferential financing rates are examples of mechanisms already used by companies downstream in the food value chain and financial institutions to incentivise and support farmers to transition to more regenerative farming practices.

Contracts can create the right frameworks for investment, research and development, data sharing, and fair allocation of costs, risks and benefits. When supported by robust stakeholder engagement processes, they can unlock collaboration and innovation and help scale solutions across agrifood systems.

Visit our new Food and Agriculture sector page today to find out more about our work and how we can help you.

Tell us how you’re already using your contracts to achieve your climate and nature goals by completing our impact survey here.