2025 PLP Report
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Governance and Approach
Planet
Communities
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Scaling Regenerative Agriculture Through Innovative Cross-Sector Partnership Fund
Across the food and beverage sector, companies are working to reduce Scope 3 emissions and strengthen supply chain resilience. Agriculture sits at the center of that challenge and that opportunity.
McCormick recently partnered with PepsiCo and the Soil and Water Outcomes Fund (SWOF) to scale regenerative agriculture across key U.S. sourcing regions. Organizations in SWOF aim to incentivize positive outcomes for water and soil health on agricultural land. The program uses a regional supply shed approach so that the private sector can credibly account for outcomes in complex commodity supply chains that span Minnesota, South Dakota, Wisconsin, and parts of northern Iowa.
First year results are in: the initiative supported nearly 100 farmers, abated approximately 50,000 MT of CO2e and enrolled close to 60,000 acres across the U.S. Midwest.
The outcome-based model of the program also was designed to help mitigate the risks and costs farmers face when adopting more sustainable practices. Participating farmers begin by sharing historical field data to establish a baseline, then commit to implementing at least one new conservation practice such as reduced tillage, cover cropping, or extended crop rotations. SWOF provides technical assistance, agronomic expertise, and on-the-ground monitoring and verification to ensure environmental outcomes are understood, measurable, and credible.
By pairing financial incentives with technical support, the program lowers barriers for farmers while accelerating progress towards climate goals. SWOF’s model is designed to reward the full environmental value of regenerative agriculture. Farmers are compensated not only for carbon outcomes, but also for measurable water quality improvements, helping incentivize the ecosystem benefits generated from climate-smart practices.
Collaboration has been essential to scaling this work. By identifying shared interests across internal and external stakeholders, the team built a model of partnership that others can adapt and replicate. As a result, we partnered with the United Nations Global Compact to position this initiative as a leading example of measurable and scalable business impact, with its approach and outcomes documented to inform and inspire similar efforts globally.
"McCormick will continue to build on this strategic supply chain partnership—collaborating with our customers and key suppliers to champion regenerative agriculture practices that secure the future of flavor for generations to come." Kathy Rostkowski, Chief Sustainability Officer.
As more organizations seek practical pathways to meet science-based climate targets, initiatives like this illustrate how outcome-based incentives and collaborative investment can drive meaningful progress, delivering climate benefits while supporting the long-term resilience of farmers and food systems.
“Industry partnerships lead to innovation, and we should all be supporting the farmers who are essential to keeping our supply chains running,” said Sustainability Project Manager, Anna Baron, who leads the project for McCormick.
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