July & August 2025 ESMC Newsletter
From our CEO: Why Move to an Inventory-Based Accounting Approach?
Dear Members, Partners, and Friends,
In our last newsletter, we shared that ESMC is transitioning from intervention accounting to inventory accounting across our programs. That announcement may have felt technical at first glance; a shift in how carbon and other environmental outcomes are measured and recorded. But make no mistake: this is one of the most consequential steps in our evolution as a market consortium. It will shape how consumer packaged goods (CPGs) companies engage with us, how producers benefit from their stewardship, and how ESMC programs scale into the next decade.
For years, the carbon markets have debated two ways of measuring climate impacts in agriculture. Intervention accounting tracks the adoption of practices: cover crops, reduced tillage, or nutrient management, and assigns modeled emissions reductions to those interventions. It is straightforward, easier to start, and acceptable for encouraging early adoption.
But intervention accounting has limits. Buyers and regulators increasingly want measurable, verifiable outcomes rather than just evidence of practice change. That’s where inventory accounting comes in. Inventory accounting measures or models actual changes in carbon stocks and greenhouse gas emissions over time. In short, it reflects what is happening in the soil, the biomass, and the atmosphere, not just what was attempted through a practice.
For CPGs, this means credits and supply chain outcomes they can use with greater confidence in public reporting, sustainability disclosures, and regulatory filings. For producers, it means that their soil carbon gains and emissions reductions are captured as tangible, quantifiable results, not just a checkbox of practices.
Why It’s Important for CPGs
Consumer brands are under enormous pressure. Regulators, investors, and consumers are asking for transparency and rigor. The GHG Protocol Land Sector & Removals Guidance, the Science-Based Targets initiative FLAG sector rules, and the Integrity Council for the Voluntary Carbon Market are all tightening definitions of what counts. Intervention-only approaches will not withstand that scrutiny for long.
By shifting to inventory accounting, ESMC ensures that CPG partners can rely on outcomes that are auditable, registry-ready, and defensible in sustainability reports, ESG filings, and consumer claims. This is not about adding bureaucracy; it’s about aligning with the standards that global companies must already follow. With this shift, when a CPG reports on carbon reductions in its supply chain, it will be speaking the same language as auditors, regulators, and investors. That consistency is priceless.
Moreover, inventory accounting allows for stacking of benefits. Once you measure outcomes, you can track carbon, water, and biodiversity gains together. That enables CPGs to claim not only emissions reductions, but also water replenishment or biodiversity uplift; all increasingly important to brand identity and consumer trust.
Why It’s Important for Producers
For producers, the transition to inventory accounting means that the value of their stewardship is no longer tied only to whether they planted a cover crop, but to what actually happened in their fields. This matters because many producers already go above and beyond practice adoption. Inventory accounting captures those gains.
It also means that producers’ outcomes are translated into currency-grade environmental credits, units that can be monetized in both supply chain insets and the offset market. That opens new doors. Farmers and ranchers participating in ESMC programs will be able to access revenue streams that were not available before, because their results are verified at the level corporate buyers and financial institutions require.
Our Identity Remains the Same
Let me be clear: Our mission is still to serve producers, advance sustainable agriculture, and deliver real environmental outcomes. By adopting inventory accounting, we are ensuring producers’ outcomes are recognized in the most credible way, and making sure buyers can stand behind what they purchase.
Inventory accounting is more than an accounting method. It is a signal of maturity, credibility, and ambition. It is how ESMC steps confidently into the next chapter; one where producers are rewarded for measurable stewardship, where CPGs can report with confidence, and where together we shape a resilient, regenerative future.
Thank you for your partnership as we take this critical step forward.
Sincerely,
Ryan Tregaskes
Chief Executive Officer
Ecosystem Services Market Consortium
Welcoming United Soybean Board as a New ESMC Member
We are pleased to announce that the United Soybean Board (USB) recently joined ESMC as a legacy partner member. USB is a farmer-led organization that directs Soy Checkoff investments to build demand, drive on-farm resilience, and create value for U.S. soybean farmers through education, promotion, and research. USB’s sustainable production work focuses on addressing major yield threats, improving production practices and varieties, and identifying cost-saving opportunities to help farmers adapt to a changing world. Visit the USB website for more information; if your organization is interested in membership, please reach out to ESMC’s Manager for Member Engagement, Doug Adams.
Join Us for Webinar on Re-grounding Climate Solutions: Focusing on Soil Carbon Removals in Agriculture
Agriculture is one of the few sectors capable of delivering true carbon removals through soil organic carbon (SOC) sequestration. As climate strategies increasingly focus on emissions reductions alone, the vital role of SOC is undervalued; threatening both climate resilience and agricultural progress.
Join us on September 23 at 1pm for a technical working group webinar where Dr. Rattan Lal of The Ohio State University will highlight the unique value of soil carbon in climate mitigation, ecosystem health, and farm productivity. He’ll explore how best management practices (BMPs) like cover cropping, reduced tillage, and nutrient management can drive both reductions and long-term removals and why it’s essential to keep SOC at the center of agricultural climate solutions.
The event will also address key questions such as:
- Why don’t BMPs show immediate results?
- Why might emissions still increase after BMP adoption?
- How do we maintain focus on soil carbon in evolving climate frameworks?
Creating More Equitable Carbon Market Opportunities
ESMC is partnering with Sustain Our Future Foundation on a quarterly webinar series, Land, Legacy & Opportunity, designed to reach underserved land stewards with ecosystem service market opportunities. The partners held the third installment of this series, Beyond Carbon Credits, earlier this month and featured toolkit demonstrations and expert insights from the National Indian Carbon Coalition and Celium Group (developers of ESMC’s Eco-Harvest Project Mapping Tool). Presenters highlighted opportunities to increase community-centered data collection and sharing practices while discussing ways to integrate non-Western systems of value into environmental commodities markets. The presentation recording is publicly available.
Recent News in Regenerative Ag
Join an Upcoming Reuters Webinar on Scaling Regenerative Agriculture: From Pilot to Practice
As climate pressures intensify, regenerative agriculture is gaining momentum as a solution that benefits both the planet and producers. But how do we move from promising pilot projects to widespread, supply chain-wide adoption? Join an August 26 webinar and learn more about topics including:
- From Pilot to Practice: How early regenerative initiatives are being scaled across supply chains
- Aligning Incentives: How companies are funding and supporting producers through the transition
- Measuring What Matters: Tools and frameworks for tracking soil health and climate outcomes
- Building Trust: How transparency and shared accountability are strengthening farm-to-shelf partnerships
Dairy Leaders Form Partnership to Increase Opportunities to Earn from Sustainability Practices
AgriNews (August 13)
The National Milk Producers Federation, California Dairies Inc. and Athian announced they have signed a memorandum of understanding to develop a “carbon intensity” protocol supported by the FARM Environmental Stewardship Program, which seeks to define, quantify and verify how production efficiencies and new practice adoption contribute to positive environmental outcomes. Read the full announcement.
3 Initiatives Boosting the Accuracy of Scope 3 Reporting in Food and Ag
Trellis (July 28)
The industry is moving away from crude estimates toward more precise measurements of upstream emissions. Read the full article.
Why Regenerative Farming Is the Latest Wellness Travel Trend
Vogue (July 21)
A growing number of travelers are starting to ask the same questions around work and wellness—and finding their answers in the soil. Farm hospitality, a modern evolution of agritourism where beauty, design, and land stewardship merge, suddenly feels more relevant than ever. Read the full article.
Carbon Credit Accuracy for Agricultural Markets Improved by New Baseline System Testing
Phys.Org (July 15)
New research from Michigan State University, led by agricultural systems scientist Bruno Basso, addresses a major problem in agricultural carbon markets: how to set an accurate starting point, or “baseline,” for measuring climate benefits. Most current systems use fixed baselines that don’t account for the soil carbon changes and emissions that would occur if business-as-usual practices were maintained on fields. The research, published in the journal Scientific Reports, covers 46 million hectares of cropland across the U.S. Midwest, provides carbon market stakeholders with a scalable, scientifically robust crediting framework. It offers both the investment-grade credibility and operational simplicity needed to expand regenerative agriculture. Read the full article.
