Industry Focus — Agriculture & Food Industry

ESG for India's Agriculture & Food Industry

From soil carbon sequestration and water use efficiency in farming to food safety traceability, smallholder livelihoods and supply chain deforestation risk — we help agri-food companies build credible, investor-grade ESG programmes.

BRSR CoreGHG ProtocolSBTi FLAGFSSAI / ISO 22000EU EUDRRainforest Alliance

18%

of India's total GHG emissions from the agriculture sector

₹3.8L Cr

potential green and climate finance for Indian agri sector by 2030

89%

of Indian food exporters have no verified deforestation-risk supply chain data

EU EUDR

effective from Dec 2025 — blocking agri exports without supply chain traceability

Material Topics

What ESG topics are most material?

Based on SASB Industrials, GRI standards and our proprietary materiality database across 200+ clients.

L
Critical

Land Use, Deforestation & EU EUDR Compliance

EU Deforestation Regulation (EUDR) effective December 2025 blocks exports of soy, palm, cattle, coffee, cocoa, wood and rubber unless geolocation-traced supply chain data proves deforestation-free origin.

EU RegulatorsInvestorsBuyers
W
Critical

Water Use Efficiency & Agricultural Withdrawal

Indian agriculture accounts for 78% of freshwater withdrawal. BRSR Core mandates water intensity disclosure. Investors applying TCFD water risk frameworks are scrutinising basin-level withdrawal data for portfolio companies.

RegulatorsInvestorsCommunities
G
High

GHG Emissions — Agriculture, Forestry & Land Use

SBTi FLAG (Forest, Land & Agriculture) framework sets science-based targets specifically for land-use emissions — enteric fermentation, soil nitrous oxide and land conversion. Investors are beginning to price AFOLU risk.

InvestorsEU BuyersRegulators
S
High

Smallholder Livelihoods & Farmer Welfare

GRI 413 and BRSR Social require disclosure on community engagement, fair price mechanisms and smallholder training investment. Investors see smallholder dependency concentration as a supply chain resilience risk.

InvestorsFarmersRegulators
F
High

Food Safety, Traceability & Product Recalls

FSSAI and ISO 22000 compliance, batch-level traceability and crisis management capabilities directly impact ESG governance scores. Product recall events are treated as material governance failures by rating agencies.

FSSAIConsumersRating Agencies
A
Medium

Agrochemical Use & Soil Health Disclosure

Pesticide intensity, integrated pest management adoption and soil organic carbon baseline are increasingly required by EU buyers (Farm to Fork) and institutional investors in the food value chain.

EU BuyersInvestorsRegulators
Regulatory Landscape

Every regulation that applies to your operations

Framework

BRSR Core (SEBI)

Securities & Exchange Board of India

TypeMandatory
Scope

Listed agri and food companies in NIFTY 1000. GHG, water, social and governance KPIs assured.

Effective

FY 2023–24

Framework

EU Deforestation Regulation (EUDR)

European Commission

TypeMandatory
Scope

Exporters of soy, palm, cattle, coffee, cocoa, rubber, wood to EU. Geolocation traceability required.

Effective

Dec 2025

Framework

FSSAI Food Safety Standards

Food Safety & Standards Authority of India

TypeMandatory
Scope

All food processors, manufacturers and exporters. ISO 22000, HACCP and labelling compliance.

Effective

Active

Framework

SBTi FLAG Framework

Science Based Targets initiative

TypeVoluntary
Scope

Gold standard for science-based targets in land-use sectors. Required by CDP and institutional investors.

Effective

Investor-Driven

Framework

Pesticides Act 1968 & CIB Registration

Central Insecticides Board

TypeMandatory
Scope

Registration, manufacture and use of all pesticides. Residue limit compliance for export markets.

Effective

Active

Framework

NABARD Climate Finance Guidelines

NABARD / RBI

TypeVoluntary
Scope

Green and climate finance products for agri-value chain — blended finance, FPO green bonds.

Effective

Emerging

Framework

EU Farm to Fork Strategy

European Commission

TypeEmerging
Scope

Pesticide reduction targets and sustainability labelling requirements affecting Indian agri exporters.

Effective

2025–2027

Framework

SEBI ESG Rating for Agri

SEBI / ESG Rating Providers

TypeMandatory
Scope

ESG ratings for listed food companies used in institutional portfolio screening. Land use and water key factors.

Effective

2024 Active

Mandatory — legal obligation
Voluntary — investor / buyer expectation
Emerging — regulatory pipeline
Our Approach

How we work with agri-food companies

A four-phase programme built for the complexity of farm-to-fork supply chains — from field-level data collection to BRSR assured reporting and EUDR traceability system implementation.

01
Step-01

Farm-to-Fork ESG Baseline

Full supply chain mapping — from FPO and contract farmers through processing and export. BRSR Core gap analysis, EUDR commodity risk assessment and SBTi FLAG eligibility check.

4–6 Weeks
02
Step-02

GHG Inventory & SBTi FLAG Target-Setting

AFOLU emissions inventory covering enteric fermentation, soil N₂O, land conversion and energy use in processing — aligned to GHG Protocol and SBTi FLAG methodology. Deforestation-risk mapping to plot level.

8–12 Weeks
03
Step-03

EUDR Traceability & Farmer Engagement

Geolocation and plot-level traceability system implementation for EUDR-covered commodities. Smallholder ESG capacity building, fair-price mechanism design and agricultural good practice programmes.

Ongoing
04
Step-04

BRSR Assurance & Export Market Reporting

Annual BRSR Core assured disclosure with simultaneous output for CDP, Rainforest Alliance and EU buyer ESG questionnaires — from a single verified data infrastructure.

Annual Cycle

Typical ESG Maturity Uplift

EUDR Traceability94%
BRSR Core Score84%
Water Intensity Reduction↓28%
Farmer ESG Coverage72%
Deforestation-Free Supply Chain91%

Certifications We Deliver

ISO 22000FSSC 22000Rainforest AllianceSBTi FLAGBRSR AssuredEUDR Ready
Our Services

What we deliver for agriculture & food industry

Pulled from all three practice areas — Strategy & Advisory, Finance & Risk, and Governance & Social — filtered for agriculture & food industry priority.

Priority

EUDR Traceability System Implementation

Plot-level geolocation mapping, supply chain traceability platform deployment and EUDR due diligence statement preparation for soy, palm, cattle, coffee and cocoa exporters to the EU.

Priority

BRSR Core Assurance for Food Companies

End-to-end BRSR Core data collection, KPI calculation (water intensity, GHG, smallholder metrics), narrative drafting and third-party assurance for SEBI-listed agri companies.

SBTi FLAG GHG Inventory & Target-Setting

AFOLU emissions inventory (enteric fermentation, soil N₂O, land conversion) and SBTi FLAG-aligned science-based target development with investor-grade verification.

Smallholder Engagement & Livelihood Programme

FPO ESG capacity building, fair-price mechanism design, agricultural good practice training and social KPI data collection from smallholder farmer networks.

Water Audit & Irrigation Efficiency

Farm and processing facility water footprint assessment, irrigation efficiency benchmarking, basin-level water risk mapping and water stewardship programme design to AWS Standard.

Agri Climate Finance & Green Bond Structuring

NABARD green fund access, FPO green bond structuring and sustainability-linked credit facility design for climate-smart agriculture investments — with ESG KPI ratchets tied to verified outcomes.

ESG Benchmarking

Where do agriculture & food industry companies stand on key ESG metrics?

Agriculture & Food Sector ESG Performance Index

Supply Chain Traceability Depth
14%
84%
76%
Water Intensity Reporting Quality
22%
91%
82%
AFOLU GHG Inventory Coverage
8%
78%
69%
Smallholder ESG Data Coverage
6%
71%
63%
India Average
Global Best Practice
ESG Astraa Clients

EUDR is the most urgent export market risk

Indian exporters of soy, palm derivatives, coffee and spices without plot-level traceability by December 2025 face export suspension to EU markets. Preparation lead time is 9–12 months minimum.

SBTi FLAG targets unlock institutional capital

Agri companies with validated SBTi FLAG targets are accessing NABARD, IFC and DFI climate finance at 30–50 bps below market rates. The targets themselves are now a financial instrument.

Smallholder data is the data gap that matters most

Global commodity buyers and ESG investors are demanding plot-level social data — fair price, training hours, income levels. Companies relying on estimated averages are failing supplier ESG audits.

Water risk will define the next credit cycle

Lenders are beginning to apply basin-level water risk overlays to agri loan books. Companies in water-stressed basins without water stewardship programmes face increasing credit risk premiums from 2025.

Free Resource

Agri-Food ESG Readiness Guide for Indian Exporters & Processors

A practical guide to EUDR compliance, SBTi FLAG target-setting, BRSR Core disclosure and NABARD climate finance access — with an India-specific implementation timeline.

What's Inside

  • EUDR compliance checklist — commodity by commodity
  • SBTi FLAG methodology primer — what AFOLU emissions to measure
  • BRSR Core KPIs for agri-food — data collection templates
  • NABARD climate finance — eligibility and application guide
  • Smallholder ESG data collection toolkit — field-deployable templates

Agriculture & Food Industry Checklist

PDF Document

Key Areas Covered
Environment Social Governance

Get your Agri-Food ESG Assessment

Our agri-food ESG team will assess your EUDR exposure, BRSR Core gaps and SBTi FLAG eligibility — and give you a clear priority action plan within 2 weeks.

No commitment · EUDR & SBTi FLAG specialists · 2-week turnaround