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Diving overview:
- Multinational food company Kellanova announced Wednesday that it has signed a regenerative agriculture deal with Varaha, Asia’s largest carbon project developer. It aims to reduce supply chain emissions for food manufacturers.
- Transaction between Kellanova — Formerly known as Kellogg’s. Before the multinational food company spins off in 2023, Varaha will help it adopt sustainable practices on 12,500 acres of maize farms in India and “sequester and reduce nearly 100,000 tons of carbon dioxide emissions” in its supply chain, according to a release sent to ESG Dive on Wednesday.
- The companies branded the deal as unique because it focuses on converting small-scale corn farms within a food brand’s supply chain rather than using the project as an offset mechanism.insertion.”
Dive Insights:
Kellanova has a science-based target initiative validation goal of achieving net zero greenhouse gas emissions by 2050, which includes a short-term goal to “improve the wellbeing of 250,000 people in (its) food value chain” by 2030.
The five-year agreement will help 5,000 small-scale farmers in Maharashtra, India, with land holdings of less than 10 hectares, or nearly 25 acres, transition to regenerative farming methods, including improved residue management and nitrogen use efficiency, solid bed planting and cover cropping, the press release said. The new practices are intended to improve soil health, reduce fertilizer use and improve crop yields.
“Our program with Varaha proves that climate action and farmer prosperity can go hand in hand,” said Shaughan Kennedy, vice president of supply chain for Asia Pacific, Middle East and Asia at Kellanova. “Consumers today expect the food they eat to be responsibly sourced, and this program sets a model for others in the industry to follow.”
deal comes later Kellanova has partnered with Indigo Ag and Walmart. Last month, it announced it would invest in converting Arkansas rice farmers who supply Walmart’s Great Value Brand to regenerative farming practices. Kellanova’s joint investment with Walmart comes after Indigo Ag and Walmart had already collaborated on the initiative for four years, according to a Nov. 24 announcement.
For Varaha, the deal came just weeks after the sustainable investment company was founded. Mirova invested $30 million. For the company to expand its regenerative agriculture practices. Varaha CEO Madhur Jain said in a press release that the Kellanova project will “combine powerful science, cutting-edge digital tools, and deep engagement with farmers to create measurable climate and livelihood impacts.”
Jainism We’ve talked about ESG dives before. He expects India to emerge as a key hub for decarbonization in the coming years, and the multinational food manufacturer said in a press release that the project “marks India as a key region for Kellanova’s global sustainability agenda.”
