Methodology For The Food And Agriculture Benchmark
Methodologyfor the Foodand AgricultureBenchmarkFebruary 2021
ForewordI first heard the term ‘food systems transformation’ during the EAT FoodWhen going through the 45 different indicators, which translate globalForum in 2018. Today, most of us working in the food and agricultureagendas into corporate action, you may have questions, commentsspace use the term on an almost daily basis. Even when confined toas well as suggestions on how these can be improved. We have heldour home offices, we are interacting with and impacting the systemsextensive expert and stakeholder consultations, and an open consul-around us. The food we eat connects us with the shopkeeper who soldtation period from December 2020 to January 2021, but welcomeit to us, the manufacturer who processed it, the trader who distributedinput throughout the year. The methodology is a key step in our five-it, the farmer who produced it, the seed company that provided theyear development road map, which aims to improve our indicators onfarmer with inputs and many more people along the value chain. Foodthe basis of continuous expert and stakeholder input. We only havesystems are an intricate web linking not only supply and demand butten years left to deliver the Sustainable Development Goals (SDGs)also supporting livelihoods and impacting ecosystems. Unfortunately,by mitigating climate change, bringing our food systems in balancethere are numerous systemic failures, including food waste, landwith our planet and our bodies, reducing inequality and improving thedegradation and social injustice. At the same time, we are seeing manyresilience of farmers. In 2021, the global community will be focused onpromising innovations, a renewed focus on quality instead of quantityfood systems, providing a unique opportunity to harness the effortsand the re-wilding of previous food deserts.that are already being made by many companies, share best practices,uncover bottlenecks and highlight solutions.It was during that same forum that I first met the World BenchmarkingAlliance (WBA) team, who were conducting a feasibility study at theWe will launch the first benchmark at the inaugural United Nationstime for an overarching food and agriculture benchmark. Three years(UN) Food Systems Summit later this year, providing an accountabilitylater, following research, scoping, consultations and individual expertmechanism to measure progress in the Decade of Action ahead.meetings with a diverse set of stakeholders, you are reading the finalSystemic change is not necessarily linear, neither is it without hurdles.methodology upon which the analysis for the first benchmark will beHowever, it is the only way we can ensure that we advance on multiplebased. Our goal has always been to be holistic and take a systemiclevels, not just in areas that deliver easy wins, by identifying oppor-approach. An extensive development phase was necessary to under-tunities across the board to achieve more healthy, sustainable andstand the business perspective as well as the scientific consequencesequitable food systems. We look forward to realising this goal togetherof our current food systems. We have strived to learn from, complementwith all of you!and align with existing frameworks and reporting initiatives, to referto science-based targets and limit additional reporting burdens forViktoria de Bourbon de Parmebenchmarked companies.Lead Food and Agriculture Transformation2
Table of contentsForeword2IntroductionAcknowledgementsFood and Agriculture Benchmark SummaryAbout the World Benchmarking AllianceWBA’s food and agriculture transformationFood and Agriculture Benchmark and spotlight benchmarksAccess to Seeds IndexSeafood Stewardship IndexFood and Agriculture BenchmarkThe food systems transformation agendaA value chain approachFrom company profiles to scorecardsA multi-stakeholder approach to benchmark developmentAlignment with existing frameworks and initiativesProcess and timelinePresentation of resultsUpdating methodologies over timeHow are companies assessed?Ensuring a meaningful assessmentApproach to scoringApproach to weightingIndicators for the Food and Agriculture BenchmarkA. Governance and strategyB. EnvironmentC. NutritionD. Social inclusionCore social indicatorsFood systems transformation-specific social inclusion indicatorsAnnexesAnnex 1: Review and consultationsAnnex 2: Indicator glossaryAnnex 3: WBA guiding principlesAnnex 4: ReferencesAnnex 5: 27283038424344494954545659
IntroductionTo achieve key SDGs by 2030, we need to transform our food systemsOur methodologies and benchmarks serve as road maps for companies,from farm to fork. Doing so requires large-scale and fundamentalsetting out the steps they can take to meet the needs and expectationsaction led by those who drive environmental, health, social and eco-of their stakeholders. This methodology brings together the key topicsnomic pressures in the system. The Food and Agriculture Benchmarkand issues on which society expects companies to take action and iswill assess 350 of the most influential food and agriculture companiesthe result of extensive expert and stakeholder consultations over theon the key issues underpinning the food systems transformation agenda.past two years. The following pages describe the development processThe benchmark aims to stimulate companies to apply sustainablefor the methodology, indicators, approaches to scoring and weighting,business practices and address these issues throughout their operations,and a timeline for the benchmark.and to use their influence to encourage their partners along the valuechain to do the same.Similarly, the Access to Seeds Index and the Seafood StewardshipIndex will publish their methodologies in March 2021. AlignmentIn 2021, the global spotlight is on our food systems. All human lifebetween the three methodologies was sought where possible, notablydepends on them, feeding every mouth, impacting livelihoods, pro-on data collection and benchmark launches.viding millions of people with a job. At the same time, food systemsare highly fragile, impacting and being impacted by climate changeWe know that our current systems must change if we are to achieve aand environmental degradation, with grave implications for socialsustainable future for all, as envisaged by the SDGs, and it is clearequality, health, livelihoods, food security and nutrition. In many partsthat the private sector has a key role to play in this. The world needsof the world, the COVID-19 pandemic has laid bare these fragilitiescompanies to contribute to food systems transformation by takingand exacerbated their effects. The announcement of the inaugural UNcare of the environment, ensuring access to healthy diets and puttingFood Systems Summit later this year underscores the urgent need topeople at the heart of their business models and activities. By increasingtransform our food systems if we are to maximise the benefits of a foodtransparency and identifying leadership, the Food and Agriculturesystems approach across the entire 2030 agenda. In the third quarterBenchmark seeks to evaluate and drive improvement in the perfor-of 2021, WBA will present the first Food and Agriculture Bench-mance of the most influential global food and agriculture companiesmark, which will assess corporate sector contributions to the foodover time. The benchmark will be published regularly by WBA, ansystems transformation agenda. A baseline assessment of companyindependent organisation supported by public and private donors.commitments to key topics was presented on 16 December 2020, toFor more information about our funding partners see here.underline the importance of companies making commitments to andsetting targets in support of the 2030 agenda.4
AcknowledgementsThis methodology was not created in isolation, and WBA would like toacknowledge those who helped shape the model and initial indicatorlist. In particular, our thanks for contributions throughout the development of the methodology go to the Food Foundation and Fixing theBusiness of Food, a joint initiative by the Sustainable DevelopmentSolutions Network, Barilla Center for Food & Nutrition Foundation,Columbia Center on Sustainable Investment and Santa Chiara Lab –University of Siena. Moreover, we are grateful to the members of ourExpert Review Committee, and the organisations that support them,for their guidance and support.WBA is funded by a group of governments, foundations and philanthropic organisations that share our vision for the future. We wouldlike to thank them for their support, without which none of our workwould be possible. A full list of WBA’s funders is set out on the finalpage of this report.Our continually growing alliance of over 200 organisations representscivil society, business networks, financial institutions and multilateralorganisations, with SDG 17 (partnerships for the goals) at its core. WBAwould like to thank our Allies for the support and expertise they provide,and we look forward to continuing our collaboration throughout thedevelopment of the first Food and Agriculture Benchmark.5
Food and Agriculture BenchmarkSummaryFood and agriculture companies to drive foodsystems transformationNearly all food consumed around the world is produced by farmers andFood systems contribute to economic prosperity and human andand agriculture system and meeting global goals.supplied through agricultural value chains operated by the privatesector, putting business at the heart of transforming the global foodplanetary health. At the same time, approximately 3 billion peoplecannot afford a healthy diet, and more than 3 billion people suffer fromWBA’s Food and Agriculture Benchmark will assess 350 of the mostone or more manifestations of poor nutrition. The global populationinfluential food and agriculture companies on their contributionis predicted to reach 9.7 billion by 2050, up from about 7.8 billion atto the food systems transformation agenda. It aims to stimulatethe moment, but food systems are already operating beyond somecompanies to apply sustainable business practices and address keyplanetary boundaries. Agriculture and its associated land-use changestopics underpinning the food systems transformation agenda throug-are the biggest contributors to climate change, land degradation,hout their operations, and to use their influence to encourage theirdeforestation and biodiversity loss. The need for fundamental trans-partners along the value chain to do the same.formation of food systems has become undeniable.Food and agriculture is one of WBA’s seven systems transformations,NCIAL SYSTEMFINAthrough which a total of 2,000 of the most influential companies(the SDG2000) across key sectors and industries will be assessed inthe coming years.DECARBONISATION ANDENERGYA road map for corporate actionURBANFOOD AND AGRICULTURESOCIALThe benchmark methodology serves as a road map to guide sectorsthrough the transformation and allows companies in and outside ourscope, as well as other organisations, to apply the methodology. The2021 benchmark will assess companies using pre-defined indicatorsDIGITALCIRCULARin the four interlinked measurement areas of governance and strategy,environment, nutrition and social inclusion. Companies will only beassessed on indicators that are relevant to their business operations.6
Food and Agriculture BenchmarkSummaryScope of the benchmarkThe Food and Agriculture Benchmark is the first of its kind to assessAcross the food value chain, 350 keystone companies have beencompanies across the entirety of the food and agriculture system,selected for the benchmark, using four key criteria:from farm to fork.1 they dominate global production revenues and volumeswithin a particular sector;2 they control globally relevant segments of production;3 they connect ecosystems globally through subsidiaries;4 they influence global governance processes and s andcommoditiesAnimalproteinsAlignment with existing frameworks and initiativesFood and urants andfood serviceexpectations in order to speak a common language and avoid rein-Alignment with existing benchmarks, accountability mechanisms andventing the wheel. We will leverage and reuse data where possibleorganisations is critical for our work. Our methodology sets alignedand in collaboration with existing initiatives.7
Food and Agriculture BenchmarkSummaryWeighting and scoring approachGovernance and strategy: this area will assess the integrationof sustainable development objectives and targets into aThe three main measurement areas of environment, nutrition, andcompanies’ core strategy, business model and governancesocial inclusion will bear an equal weighting of 30% each. Within thestructure.social inclusion measurement area, the core social indicators accountfor 20% and the transformation-specific indicators a further 10%. ThisEnvironment: in this area, companies will be assessed on theirefforts regarding key issues of sustainable food production,including GHG emissions, food loss and waste, soil healthis combined with a weighting of 10% of the overarching governanceand strategy measurement area. A company’s overall score will beequal to the sum of the scores received for each measurement area.and plastics use.ationorm 0%fsnc1Tra pecifisNutrition: this area seeks to assess company performance10%towards achieving healthy and nutritious diets for all.companies have integrated a responsible approach to social issues into its business activities.%20Core socialSocial inclusion: this area will assess the extent to whichGovernanceandstrategy30%Social inclusionFollowing the first benchmark, and to reflect changing societal30%Environmentexpectations, the methodology will be reviewed, in consultationwith stakeholders and experts.30%Nutrition8
Food and Agriculture BenchmarktimelineDecember 2020:Publication of the DraftMethodology for the Foodand Agriculture Benchmark.The document outlines thedraft indicators and scoringand weighting approaches.Throughout the publicconsultation, stakeholdersprovided feedback throughonline webinars and inwritten form.December 2020(EAT@Home Sidesession):Publication of thebaseline assessment.June 2019(EAT Food Forum,Stockholm):Publication of the ScopingReport for the Food andAgriculture Benchmark.The assessment shines alight on company commitments toward key issuesunderpinning the foodsystems transformationagenda.The report provides anoutline of the selection ofthe 350 companies acrossthe food value chain thatwill be assessed throughthe benchmark.April-May 2021:October 2021:Data collection for the Foodand Agriculture Benchmark.Start of the methodologyreview process.Based on a prepopulatedquestionnaire, companieswill be given the opportunityto provide additional publicdata for the benchmark.Round tables, consultationsand expert sessions will beorganized to help review themethodology for the nextiteration of the benchmark.February 2021:Publication of theMethodology for theFood and AgricultureBenchmark.July 2020(High-Level PoliticalForum):Publication of theFramework for the Food andAgriculture Benchmark.Final overview ofindicators, approach toscoring and weightingand timeline for the 2021Food and AgricultureBenchmark.September 2021(United Nations FoodSystems Summit):Launch of the 2021Food and AgricultureBenchmark.Presenting key findingson main trends, leadingapproaches and notableconclusions, tied toindustry rankings andcompany scorecards.The framework translatesglobal agenda’s, such as theSDGs and Paris Agreement,into expectations andconcrete actions for theprivate sector.9
About theWorld Benchmarking AllianceWBA is a diverse and growing group of organisations from acrossFIGURE 1: WBA's seven systems transformationsthe globe, motivated by the common ambition to create a world thatworks for all – as embodied by the SDGs. We share the vision thatachieving these goals requires a systems perspective, as the 17 SDGs areANCIAL SYSTEMFINinterlinked. We also agree that to accomplish systemic transformation,the private sector has a key role to play.DECARBONISATIONAND ENERGYWBA uses a systems approach to develop benchmarks, placing a strongemphasis on transforming the systems that have the greatest potentialto drive economic, environmental and social progress. Systems thinkinghelps us make better sense of the issues, as well as identify the mostinfluential companies in each system. By 2023, WBA will have benchmarked 2,000 companies – the SDG2000 – across seven systemsURBANtransformations that we believe are vital for putting our society, planetFOOD ANDAGRICULTURESOCIALand economy on a more sustainable and resilient path over the nextdecade and beyond (see Figure 1). Benchmarks will be produced forall seven systems, of which food and agriculture is one, with accompanying methodologies helping to support systems change.DIGITALCIRCULARSocial transformation sits at the core of our model because it represents topics such as human and labour rights that are fundamentalto achieving the SDGs, irrespective of the sector or transformation. Forthis reason, all SDG2000 companies will be assessed on these topics,including the companies in the Food and Agriculture Benchmark.10
WBA’s food and agriculturetransformationTransforming food systems requires action by all actors in the system.This includes policy, science, civil society and the corporate sector,which are interdependent and each play a crucial role in creating anenabling environment for each actor to take responsibility. The foodand agriculture sector spans many sub-sectors, industries and companies. In a corporate system that is so interwoven, business leadershipis vital to ensure that all companies play their part, acknowledgingtheir purpose and strengths within the value chain, if we are to achieveglobal access to healthy diets, a healthy planet and a system that leavesno one behind. Within WBA’s food and agriculture transformation, theFood and Agriculture Benchmark takes a broad value chain approach,whereby the complementary Access to Seeds Index and the SeafoodStewardship Index allow for an in-depth assessment of the seed andseafood industries, respectively.Food and Agriculture Benchmark and spotlightbenchmarksThe Food and Agriculture Benchmark takes a holistic approach to foodsystems transformation, assessing companies throughout the foodvalue chain on a broad set of indicators in four measurement areas:governance and strategy, environment, nutrition and social inclusion.As such, it seeks to assess the role and performance of companiesand industries and bring evidence to the table of companies showingleadership and stewardship and those that are lagging. The researchwill further show where each company in the food and agriculture valuechain stands today versus what action is required for the transformation we need.11
WBA’s food and agriculturetransformationWhere the Food and Agriculture Benchmark focuses on breadth inresults and to ensure clarity for the companies in the benchmarks.terms of company scope and indicators, it also acknowledges the needWBA will publish the first Food and Agriculture Benchmark, the thirdfor an in-depth understanding of the role of particular industries andAccess to Seeds Index and the second Seafood Stewardship Index inthe issues within the food value chain. This work is often undertaken bythe third quarter of 2021.our Allies, including the Access to Nutrition Index and Global Canopy’sForest 500. Additionally, WBA produces spotlight benchmarks, suchas the Corporate Human Rights Benchmark, the Access to Seeds IndexAccess to Seeds Indexand the Seafood Stewardship Index (see Figure 2). The last two spot-In regions where agricultural systems are dominated by smallholderlight benchmarks are developed under the umbrella of food andfarmers, access to the key inputs needed to produce more and betteragriculture transformation but operate in their respective industryfood is often lacking. Since its establishment in 2012, the Access toand stakeholder ecosystems. Alignment of methodologies is soughtSeeds Index has set out to increase transparency around the seedwhere needed and possible, to accommodate comparisons betweenindustry and encourage seed companies to improve access to seedsFIGURE 2: SCOPE OF WBA’S FOOD AND AGRICULTURE BENCHMARK AND SPOTLIGHT BENCHMARKSFOOD AND AGRICULTURE BENCHMARKAgriculturalinputsAccess toSeeds IndexAgriculturalproducts andcommoditiesAnimalproteinsFood and urants andfood serviceSeafoodStewardshipIndex12
WBA’s food and agriculturetransformationfor smallholder farmers. The index focuses on three main regions:Western and Central Africa, Eastern and Southern Africa, and Southand Southeast Asia. In particular, the index highlights the importanceof local and regional companies, alongside their global peers, in providing access to seeds for smallholder farmers, confirming that thesector is highly diverse and locally driven.Seafood Stewardship IndexSeafood has a crucial role for feeding and employing people allaround the world, especially in developing countries. Three billionpeople rely on seafood as an essential part of their diet. Seafood playsan important part in contributing to healthy and sustainable foodsystems, however the fisheries and aquaculture sectors face a numberof social and environmental challenges. In 2019, the first SeafoodStewardship Index was published. The index was developed to providemore clarity about the corporate performance of the largest globalseafood companies on specific issues. These include the protectionof human rights in fisheries, supply chain transparency, and illegal,unreported and unregulated fishing.13
Food and Agriculture BenchmarkThe food systems transformation agenda has been broken downcompanies spanning the entire value chain. The existing concept ofinto four interlinked measurement areas: governance and strategy,keystone actors was used to enhance accountability and determineenvironment, nutrition and social inclusion. Based on the topics inwhich companies in the food and agriculture system can drive businessthese areas, the benchmark will assess the contributions of the 350action where it matters the most. Keystone companies are globallycompanies in its scope. These measurement areas and key topics haveactive, have diversified businesses and operate in multiple food groupsbeen widely discussed with WBA Allies, stakeholders and the bench-and industries. The unique scale of our approach means that approxi-mark’s Expert Review Committee. As such, we aim to bring togethermately one third of these companies has never been benchmarkedexpectations and key frameworks on the food system transformationby other initiatives.agenda to provide clarity, consistency and guidance for all stakeholders. The benchmark also aligns with accountability mechanisms,The 350 companies in scope have been organised into six segments orclarifying activities, reporting and disclosure to help structure datasub-sectors (see Figure 3). These sub sectors are tied to the indicators,collection. This process enables longer term engagement with com-which conceptualise and place key topics along the value chain wherepanies, investors, policymakers and civil society through stakeholderthey are most materially relevant. The Food and Agriculture Bench-coalitions around the benchmark results.mark takes a food-centric approach. For this reason, commodities andindustries such as tobacco, cotton and forestry (and consequently,Scope of the Food and Agriculture Benchmarkleading companies within each) are not included, primarily becauseof a lack of alignment with and contribution to the nutrition measu-The Food and Agriculture Benchmark will assess 350 keystonerement area.FIGURE 3: THE FOOD AND AGRICULTURE VALUE CHAINAgriculturalinputsAgriculturalproducts andcommoditiesAnimalproteinsFood and urants andfood service14
Food and Agriculture BenchmarkThe food systems transformation agendaAs a result of stakeholder consultations and expert input on theFood systems contribute to economic prosperity, human health andstrategy, was added. This area confirms and reflects the need to assessplanetary health. Poor diets are the main contributor to the globalthe 350 companies on their corporate strategies and business modelsburden of disease. Approximately 3 billion people cannot afford afor sustainable development objectives and targets (see Figure 4).healthy diet, and more than 3 billion people suffer from one or moremanifestations of poor nutrition. The global population is predictedframework, a fourth overarching measurement area, governance andFIGURE 4: THE FOOD SYSTEMS TRANSFORMATION AGENDAto reach 9.7 billion by 2050, up from about 7.8 billion at the moment,but food systems are already operating beyond some planetaryGovernanceandstrategyboundaries. Agriculture and its associated land-use changes are thebiggest contributors to climate change, land degradation, deforestationand biodiversity loss. The need for fundamental transformation of foodsystems has become undeniable. Food systems transformation tiesSocialinclusionin these interconnected aspects of human and environmental healthand livelihoods and links to key global agendas, including the SDGsand Paris Agreement.Food systemstransformationEnvironmentThe methodology aims to translate the food systems transformationagenda into a recipe for change for the private sector. It provides aNutritionroad map for business toward a sustainable future in which no oneis left behind. The first step was the development and publication ofthe framework in July 2020, which set out the critical areas and topicswhere private sector action is needed and where companies must stepup their efforts to collectively transform the system. It presented theWBA has translated the topics in the framework into indicators onthree interlinked areas of the food systems transformation: environment,which the companies in the benchmark will be assessed. An overviewnutrition and social inclusion.of the indicators outlined in this document is shown in Figure 5.15
Food and Agriculture BenchmarkFIGURE 5: OVERVIEW OF INDICATORS IN THE FOUR MEASUREMENT AREASCore social indicatorsD1 Commitment to respect humanrightsD2 Commitment to respect the humanrights of workersD3 Identifying human rights risks andimpactsTransformation-specific social inclusion indicatorsD19 Child labourD20 Forced labourD21 Living wageD22 Healthy and safety of vulnerable groupsD23 Farmer and fisher productivity and resilienceD24 Land rightsD4 Assessing human rights risks andD5 Integrating and acting on humanD6 Engagement with affected andpotentially affected stakeholdersD8 Grievance mechanisms for externalCoresocialD12 Collective bargaining fundamentalssustainable developmentA3 Stakeholder engagementEnvironment indicatorsScope 1 to 2 greenhouse gas emissionsecosystemsB4 Sustainable fishing and aquacultureindividuals and communitiesD11 Working hours fundamentalsA2 Governance and accountability forB3 Protection of terrestrial naturalGovernanceandstrategyD7 Grievance mechanisms for workersSustainable development strategyB2 Scope 3 greenhouse gas emissionsationormfsnificTra specrights risks and impactsD10 Living wage fundamentalsA1B1impactsD9 Health and safety fundamentalsGovernance and strategy indicatorsB5 Protein diversificationB6 Soil health and agrobiodiversityB7 Fertiliser and pesticide useB8 Water useB9 Food loss and wasteSocial inclusionB10 Plastic use and packaging wasteB11 Animal welfareB12 Antibiotic use and growth promotingD13 Workforce diversity disclosureEnvironmentfundamentalssubstancesD14 Gender equality and women’sNutrition indicatorsempowerment fundamentalsD15 Personal data protectionfundamentalsD16 Responsible tax fundamentalsD17 Anti-bribery and anti-corruptionfundamentalsD18 Responsible lobbying and politicalengagement fundamentalsC1NutritionAvailability of healthy foodsC2 Accessibility and affordability ofhealthy foodsC3 Clear and transparent labellingC4 Responsible marketingC5 Workforce nutritionC6 Food safety16
Food and Agriculture BenchmarkA value chain approachFrom company profiles to scorecardsThe research community is clear that a transformation to a healthy,In July 2020, WBA published profiles for the 350 companies in thesustainable and inclusive food systems needs to encompass how wescope of the benchmark. These profiles, accessible on the WBA website,produce food, the livelihoods of people in the food industry and whatdetail companies’ core businesses, products and brands, and provide anwe actually eat. This makes food systems transformation a value chainoverview of general company information. The profiles are based onchallenge that requires action from farm to fork. Companies throughoutpublicly available company data, complemented by widely acceptedthe value chain have a role to play, both individually and collectively.and publicly available third-party sources. During the developmentAll companies in the scope of the benchmark are globally active,of these profiles, companies were invited to verify their profile andhave diversified businesses and operate in multiple food groups andprovide feedback.industries, making them keystone companies in the system.The profiles were updated following the baseline assessment, conIn contrast to many existing benchmarks and indices, which often focusducted in the third quarter of 2020, which evaluated the extent to whichon one industry or one topic, WBA’s Food and Agriculture Benchmarkcompanies have publicly disclosed commitments on key topics under-goes for breadth and scale rather than providing a deep dive intopinning the food systems transformation agend
WBA's Food and Agriculture Benchmark will assess 350 of the most influential food and agriculture companies on their contribution to the food systems transformation agenda. It aims to stimulate companies to apply sustainable business practices and address key topics underpinning the food systems transformation agenda throug-
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