› › The Role Of True Cost Accounting In Guiding Agrifood Businesses And Investments Towards Sustainability

The role of true cost accounting in guiding agrifood businesses and investments towards sustainability

Author : Food and Agriculture Organization of the United Nations

Publisher : Food & Agriculture Org.

Page : 66 pages

File Size : 14,48 MB

Release : 2023-11-06

Category : Social Science

ISBN : 9251382913

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Book Description

This background paper to The State of Food and Agriculture 2023 describes how true cost accounting (TCA) and the lessons learned from its application can inform efforts to develop a sound economic foundation for sustainability in business and finance in agrifood systems. It looks at the current state of TCA in the business and financial sector, giving examples of different initiatives and resources available that have contributed significantly to the development of knowledge and guidance for TCA application within the private and financial sectors in agrifood systems. The paper recognises the value of drawing on the extensive groundwork that has been conducted under various TCA initiatives to develop ready-reference databases and tools for the private sector. It also acknowledges that numerous gaps need to be filled to ensure the mainstreaming of TCA. These include gaps in the standardization of methods, including indicators, impact pathways and valuation factors. Research and guidance are needed to help businesses integrate capital accounting into corporate governance, strategy and performance models. Overcoming these barriers will require coordinated efforts by different actors in agrifood systems.The great challenges of our time call for a new economic foundation for sustainability. The momentum at the international level to reform business accounting and reporting standards can support a transformation towards sustainable agrifood systems. So far, the initial success of agrifood businesses in applying and integrating TCA into decision-making shows that, given the right enabling environment, businesses can contribute to building socially, environmentally and economically sustainable agrifood systems. To achieve this transformation, however, standard-setting is needed to create a level playing field.



Changing the equation: Leveraging true cost accounting to accelerate agri-food systems transformation

Author : Klaus, Lisa Maria

Publisher : Intl Food Policy Res Inst

Page : 44 pages

File Size : 37,38 MB

Release : 2024-11-13

Category : Political Science

ISBN :

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Book Description

The global agri-food system, from field to fork, is failing to nourish billions of people properly, is responsible for nearly a third of all greenhouse gas emissions and is a major driver of biodiversity loss. As it currently operates, this system imposes significant hidden costs on the environment, on the workers who produce ‘cheap’ food in dangerous or precarious conditions, consumers, and society as a whole. These hidden costs, or ‘externalities’, include water pollution remediation, social support for underpaid workers, and public health costs related to diet-related diseases, none of which are captured by traditional economic metrics. Externalities are prevalent in all sectors of the economy, not just agri-food systems, and are systematically ignored in conventional accounting and reporting systems. This omission leads to distorted market signals that encourage unsustainable business practices, the consequences of which are borne by society, particularly disadvantaged communities, and will weigh heavily on future generations while the polluters reap financial rewards. Addressing externalities is therefore essential to building an economic system that supports sustainable development.



The State of Food and Agriculture 2023

Author : Food and Agriculture Organization of the United Nations

Publisher : Food & Agriculture Org.

Page : 150 pages

File Size : 12,64 MB

Release : 2023-11-06

Category : Political Science

ISBN : 9251381674

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Book Description

Agrifood systems generate significant benefits to society, including the food that nourishes us and jobs and livelihoods for over a billion people. However, their negative impacts due to unsustainable business-as-usual activities and practices are contributing to climate change, natural resource degradation and the unaffordability of healthy diets. Addressing these negative impacts is challenging, because people, businesses, governments and other stakeholders lack a complete picture of how their activities affect economic, social and environmental sustainability when they make decisions on a day-to-day basis. The State of Food and Agriculture 2023 looks into the true cost of food for sustainable agrifood systems. The report introduces the concept of hidden environmental, health and social costs and benefits of agrifood systems and proposes an approach – true cost accounting (TCA) – to assess them. To operationalize the TCA approach, the report proposes a two-phase assessment process, first relying on national-level TCA assessments to raise awareness and then moving towards in-depth and targeted evaluations to prioritize solutions and guide transformative actions. It provides a first attempt at national-level assessments for 154 countries, suggesting that global hidden costs from agrifood systems amount to at least to 10 trillion 2020 PPP dollars. The estimates indicate that low-income countries bear the highest burden of the hidden costs of agrifood systems relative to national income. Despite the preliminary nature of these estimates, the analysis reveals the urgent need to factor hidden costs into decision-making for the transformation of agrifood systems. Innovations in research and data, alongside investments in data collection and capacity building, are needed to scale the application of TCA, especially in low- and middle-income countries, so that it can become a viable tool to inform decision- and policymaking in a transparent and consistent way.



Author :

Publisher : Food & Agriculture Org.

Page : 171 pages

File Size : 18,28 MB

Release :

Category :

ISBN : 9251391408

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True Cost Accounting for Food

Author : Barbara Gemmill-Herren

Publisher : Routledge

Page : 248 pages

File Size : 22,82 MB

Release : 2021-06-22

Category : Business & Economics

ISBN : 1000389987

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Book Description

This book explains how True Cost Accounting is an effective tool we can use to address the pervasive imbalance in our food system. Calls are coming from all quarters that the food system is broken and needs a radical transformation. A system that feeds many yet continues to create both extreme hunger and diet-related diseases, and one which has significant environmental impacts, is not serving the world adequately. This volume argues that True Cost Accounting in our food system can create a framework for a systemic shift. What sounds on the surface like a practice relegated to accountants is ultimately a call for a new lens on the valuation of food and a new relationship with the food we eat, starting with the reform of a system out of balance. From the true cost of corn, rice and water, to incentives for soil health, the chapters economically compare conventional and regenerative, more equitable farming practices in and food system structures, including taking an unflinching look at the true cost of cheap labour. Overall, this volume points towards the potential for our food system to be more human-centred than profit-centred and one that has a more respectful relationship to the planet. It sets forth a path forward based on True Cost Accounting for food. This path seeks to fix our current food metrics, in policy and in practice, by applying a holistic lens that evaluates the actual costs and benefits of different food systems, and the impacts and dependencies between natural systems, human systems, agriculture and food systems. This volume is essential reading for professionals and policymakers involved in developing and reforming the food system, as well as students and scholars working on food policy, food systems and sustainability.



True cost accounting applications for agrifood systems policymakers

Author : Food and Agriculture Organization of the United Nations

Publisher : Food & Agriculture Org.

Page : 114 pages

File Size : 37,23 MB

Release : 2023-11-06

Category : Social Science

ISBN : 9251382824

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Book Description

This background paper to The State of Food and Agriculture 2023 introduces true cost accounting (TCA) as an approach to measure and value the costs and benefits generated by agrifood systems in order to facilitate improved decision-making. The paper is based on a systematic review of existing TCA approaches and of relevant case studies in agrifood systems. Guidance on conducting TCA is provided, especially in relation to data collection. The paper ends with a discussion on scaling and harmonizing TCA for agrifood systems transformation. Based on a systematic literature review, the paper describes seven TCA approaches and identifies nine case studies deemed most relevant to policymakers in agrifood systems. It then proceeds to describe the different stages and steps needed to undergo a TCA study, such as: setting the boundaries of their assessment; determining the materiality of indicators; and estimating data points that are not readily available. The latter is particularly important given that a lack of (robust) data at low cost is potentially the main barrier to applying and scaling up TCA, especially in middle- and low-income countries.Because a TCA study requires a substantial amount of data to be collected, it is important to start with the data that are available and use this to determine which data points are crucial to answering a given policy question, to then focus on refining the available data points and filling in missing data points that are essential to the analysis. Another important bottleneck to scaling up TCA is the issue of harmonization, which the paper argues is impeded by the number of approaches available. As future steps for scaling up TCA, harmonization by integrating methodologies and adopting shared principles, ideas and requirements, is thus recommended.



Full Cost Accounting

Author : Jan Bebbington

Publisher :

Page : 172 pages

File Size : 43,15 MB

Release : 2001-01-01

Category : Cost accounting

ISBN : 9781859083529

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Managing Healthy Livestock Production and Consumption

Author : Nadia El-Hage Scialabba

Publisher : Academic Press

Page : 277 pages

File Size : 26,87 MB

Release : 2021-12-02

Category : Technology & Engineering

ISBN : 0128230517

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Book Description

Managing Healthy Livestock Production and Consumption is a highly interdisciplinary resource based on scientific and empirical evidence. It is illustrated with best practices of low-input livestock systems from different continents and offers predictive modelling alternatives for a more resilient future. By addressing gaps of knowledge and presenting scientific perspective studies of livestock's impact on the environment and the global food supply up to 2050, this book is useful for those advocating for sustainable food systems. Existing evidence of the effects of livestock production on food quality and nutrition is reviewed. Livestock production and consumption is a highly diverse topic where current publications only include/focus a single aspect of the issues, for example, greenhouse gas emissions or health impacts, leading to unilateral decisions such as refraining from meat consumption. However, animals are necessary to soil fertility and ecosystems balance and a more realistic resource is necessary for researchers, scientists, and policy makers. This book clarifies perceptions by presenting sound scientific evidence across livestock landscapes for the scientific community to better appreciate the ecological web of life and the social web of community related to livestock production. An edited work written by globally diverse scientists and practitioners, including field workers, technicians, and policy makers, this is a valuable resource for researchers, teachers, and development agents working in the area of sustainable livestock production and consumption of animal source foods. National, international organizations, policy makers, and donors interested in sustainable development of the livestock sector will also find the information here practical and applicable. - Describes the public-health impacts of sustainable diets and livestock products - Presents the impacts of livestock production on the environment and food supply - Explores future scenarios (up to 2050) of low input livestock systems - Includes current case studies of low input livestock systems that offer potential for scaling-up and replication for sustainable livestock futures



Accounting for the hidden costs of agrifood systems in data-scarce contexts

Author : Food and Agriculture Organization of the United Nations

Publisher : Food & Agriculture Org.

Page : 62 pages

File Size : 19,15 MB

Release : 2023-11-06

Category : Social Science

ISBN : 9251382921

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Book Description

This background paper to The State of Food and Agriculture 2023 reviews the methods used, as well as the data required, to estimate the hidden environmental, social and health costs associated with agrifood systems. The studies analysed are based on the true cost accounting approach, which can facilitate improved decision-making by policymakers, businesses, farmers, investors and consumers. The reviewed studies demonstrate that hidden costs of agrifood systems are considerable, and that action is needed at global, national and local levels. To apply true cost accounting at the country level, the methods developed must be downscaled and the data limitations overcome. This review goes through each cost category – environmental, social and health – and proposes approaches to deal with them, with a focus on country-level estimates and analysis, especially in data-scarce countries. Where data are not available or time is limited, methods combining secondary data are suggested. In some cases, the suggestion is to collaborate with research centres.The paper further argues that, when addressing hidden costs in agrifood systems, trade-offs may arise, which may require the use of more complex tools, such as partial and general equilibrium models, to analyse their impacts on different areas. In general, the extent of the compromise will be minimized if there are at least as many policy instruments as there are objectives. For example, if a country seeks to restore fish stocks and address rural poverty, restricting catch alone could increase poverty in the artisanal fishing community. Adding income support, however, could allow both objectives to be met.



Sustainability in Agribusiness

Author : Maria Carmela Annosi

Publisher : Taylor & Francis

Page : 176 pages

File Size : 32,79 MB

Release : 2022-12-30

Category : Business & Economics

ISBN : 1000823199

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Book Description

Accomplishing sustainability in the agribusiness sector is a significant, yet time-sensitive, challenge, especially when balanced with the need to grow sufficient quantity and quality of food to keep the growing global population healthy. Through both quantitative and qualitative methods, this book explores the extent to which the agribusiness sector is already evolving to become sustainable and the ways in which innovation in the industry can help address sustainable development goals, particularly around zero hunger, gender equality, decent work, responsible consumption and production, and climate action. The contributors to this volume address the following key questions: What are the drivers and barriers for the agribusiness sector to become sustainable? Which business models best facilitate the implementation of sustainable goals? How can we measure the extent to which the agribusiness sector is becoming more sustainable? How can the agribusiness sector leverage recent technological advancements to achieve its sustainability goals? The analysis of the sustainability challenges for the sector ranges across various facets of the industry including employment, pre-production industries, agriculture, food processing, distribution, and trade. This book will be of significant interest to readers in agribusiness, innovation management, and sustainability.