Cutting Scope 3 Emissions in Cacao Farming through Value Chain Interventions

Welcome to the second part of our series delving into value chain interventions in food and agriculture. Following on from our article on Row Crops, this post focuses on cacao farming and how food and agriculture companies can reduce their Scope 3 emissions when farming this essential ingredient in chocolate. 

Cacao beans are the dried and fully fermented seed of the cacao tree (also known as Theobroma cacao) and are native to the Amazon Rainforest. Most commonly, one kilogram of chocolate requires between 300-600 beans. With research showing that 8.13 billion kg of chocolate was consumed worldwide in 2022, we can estimate that well over 3 trillion cacao beans would be required to manufacture this amount.  

With such high figures involved and the long-lasting popularity of chocolate, it is no surprise that cacao is often farmed at an unsustainable rate. According to Inoqo, the production of just 1 kg of cacao beans can emit as much as 145 kg of CO2e in extreme cases. Meanwhile, in other regions emissions at farm level can be as low as 0.9 kg of CO2e. These numbers don’t take into account all Scope 3 emissions, meaning the overall number will be considerably higher. These statistics show that the way cacao is farmed has a major impact on emissions, highlighting the potential that value chain interventions can have to reduce emissions. 

 The leading country supplying cacao beans worldwide is Côte d'Ivoire, which has seen a 90% loss of rainforest area since the 1960’s, while further data shows that cacao farming was responsible for 1% of all forest loss worldwide between 1998 and 2008. 

What interventions can help reduce emissions in cacao farming? 

Keeping the above in mind, any action that can be taken to help reduce emissions in cacao farming can have a significant impact on the climate. In particular, these interventions would be significantly welcome in the “Cacao Belt”, which in addition to Côte d'Ivoire contains such countries as Brazil, Ecuador, Ghana, Indonesia, Mexico, Nigeria, Venezuela and more. With many of these countries having already seen significant impact from climate change, the significance of taking action becomes even stronger. 

There are numerous possible interventions when it comes to reducing emissions in cacao farming, three of which we will cover below.  

Agroforestry 

Agroforestry is a land-use system that combines trees, crops, and/or livestock to enhance productivity and sustainability. In cacao farming, agroforestry is particularly beneficial. Cacao trees, which grow well under forest canopies, benefit from shade trees that regulate temperature and improve soil health. These shade trees also reduce soil erosion and provide habitat for beneficial organisms that manage pests, leading to less waste through crop loss. Additionally, agroforestry can diversify farmers’ income through the cultivation of other tree species or crops alongside cacao.  

The agroforestry method helps to reduce Scope 3 emissions with enhanced soil health and greater carbon dioxide absorption, as well as improving the efficiency of the land. In addition, by boosting the income of the farmer, the financial risk of taking action on Scope 3 emissions is reduced, which ensures a positive impact across the entire value chain. 

Improved Water Management 

Improved water management enhances agricultural efficiency throughout the value chain by using water more effectively. Techniques like drip irrigation, rainwater harvesting, and soil moisture monitoring help optimize water use and reduce waste. By reducing water waste, less energy consumption is required, and the efficiency of the supply chain is boosted. Both of these outcomes can significantly reduce Scope 3 emissions across the supply chain.  

For cacao farming, these water management methods are essential. Drip irrigation delivers consistent moisture directly to cacao roots, boosting tree health and yields. Rainwater harvesting stores water for dry periods, reducing reliance on external sources. Soil moisture monitoring ensures precise watering, avoiding over or under-watering. These practices support cacao production while conserving water and promoting sustainability. 

Fertilizer Management  

Fertilizer management optimizes nutrient use in agriculture, improving crop yields and reducing environmental impact. Key practices include using eco-friendly fertilizers, applying them at the right time, and employing precision techniques to target specific crop needs. By reducing the amount of fertilizer required, less nitrous oxide is released and greenhouse gas emissions are cut. An additional benefit comes from reduced sales of fertilizer, cutting down on not only costs, but also emissions from the production and transport of this fertilizer. 

In cacao farming, effective fertilizer management is vital for healthy growth and high yields. Using a balanced mix of nutrients ensures cacao trees receive essential elements. Timing applications to match the growth stages of the trees enhances nutrient uptake and minimizes waste. Precision methods, such as soil testing and targeted applications, help avoid over-fertilization, which can lead to runoff and environmental harm. These practices boost cacao productivity while supporting sustainable farming. 

Credible reporting of cacao interventions 

To be able to credibly report and claim the climate impacts of an intervention in your value chain, your company should be able to demonstrate that the emission reductions are real and truly contributing to your organization’s climate targets. 

 
Challenges like limited traceability and many others increase the complexity of reporting emissions from agricultural interventions. SustainCERT verifies Scope 3 emission reductions and removals through our platform with in-built safeguards against double counting and over-counting. The resulting independent verification statement can feed into your company’s annual emissions reporting, aligned with GHG Protocol Scope 3 guidance. 

Address Scope 3 Emissions with Impact Units

Building collaboration with value chain partners can help decrease the needed resources to meet your company’s climate targets. Co-claiming climate outcomes with other companies active in the same value chain can incentivize co-investments into decarbonization. Effective supplier engagement is crucial to coordinate this process. 

Through SustainCERT’s innovative impact tracking platform, companies along a value chain can claim the same impacts, as long as they are placed at different impact layers. Impact layers refer to value chain stages ranging from raw materials, mid-product manufacturers, end-product manufacturers, and finally wholesalers/retailers where applicable. Impact Units, representing emission reductions and removals, can be transferred in the SustainCERT platform from actors in one impact layer to another, allowing companies to co-claim climate mitigation outcomes while avoiding double counting. 

Addressing Scope 3 emissions is a challenge for most industries, and cacao farming is no different. However, interventions like agroforestry, and improved water and fertilizer management, companies can get closer to achieving their climate targets.  With these practices taking some time to implement, action should be taken as soon as possible.  
 
This is part two of our series delving into value chain interventions in food and agriculture. Follow along to learn more about emission reductions in row crops, coffee, and dairy in the next instalments of the series. 
 
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