Preparing Agricultural and Vertical Farming Operations for New Sustainability Disclosures

Let’s be honest. For a long time, the story of a farm was told in bushels per acre, pounds of yield, and profit margins. But the narrative is shifting—fast. Now, investors, retailers, and consumers want to know the environmental and social story behind your lettuce, your strawberries, your wheat.

New sustainability disclosure frameworks are moving from the boardroom to the barn—and the grow room. For operators in both traditional agriculture and high-tech vertical farming, this isn’t just about paperwork. It’s about future-proofing your business. Here’s the deal: getting ready now can turn compliance from a cost into a genuine competitive edge.

Why the Sudden Spotlight on Farm-Level Data?

Well, it’s not so sudden. Pressure has been building for years. Think of it like a slow-rising water table. You might not notice it day-to-day, but suddenly, your foundation is damp. That pressure comes from a few key places:

• Regulatory Mandates: The EU’s CSRD (Corporate Sustainability Reporting Directive) and California’s SB 253 are two big ones. They require large companies to report emissions—and that includes their supply chains. If you sell to a major food brand, they’ll be knocking on your door for data.
• Investor & Banker Demand: Access to capital is increasingly tied to ESG (Environmental, Social, and Governance) performance. A loan or investment might hinge on your water efficiency or carbon footprint.
• Market Access: Major retailers are setting their own sustainability targets. To keep your product on the shelf, you’ll need to prove you’re part of the solution.

In fact, this shift is arguably more disruptive for agriculture than many other sectors. Your operation is literally at the ground level of climate impact and resource use.

The Unique Dual Challenge: Traditional Ag vs. Vertical Farms

Interestingly, preparing for sustainability disclosures looks different depending on your farm’s address. The pain points and opportunities aren’t the same.

For Traditional & Outdoor Agricultural Operations

Your world is defined by soil, weather, and vast landscapes. Your disclosure preparation often starts with historical data you might not have tracked centrally. Key focus areas will be:

• Scope 1 & 2 Emissions: Fuel for equipment, on-farm energy use, and methane from livestock.
• Soil Health & Carbon Sequestration: This is a huge one. Regenerative practices can be a major asset in your report. Can you quantify soil organic matter changes? Cover crop usage?
• Water Withdrawal & Quality: Irrigation volume, source, and nutrient runoff data.
• Land Use & Biodiversity: How does your operation impact local ecosystems?

For Controlled Environment & Vertical Farming Operations

You’ve built a climate in a box. Your challenges are high-tech, but your disclosures are, in some ways, more straightforward to measure—and more intense. Your energy use is your story.

• Energy Consumption (The Big One): Every kilowatt-hour for LEDs, HVAC, and automation matters. The source of that energy (grid mix vs. renewables) is critical.
• Water Circularity: Sure, you use less water. But can you prove the exact percentage recycled in your closed-loop system?
• Supply Chain for Inputs: The sustainability of your substrates, nutrients, and seed packets.
• Local Impact: How do you quantify the benefit of reduced food miles and fresher produce? This is your positive story to tell.

A Practical 5-Step Action Plan to Get Started

Okay, so where do you begin? It can feel overwhelming. Don’t try to boil the ocean. Start with these manageable steps.

1. Map Your “Sustainability Footprint” Boundaries

Decide what you’re responsible for. Is it just the land you own? Do you include inputs from your suppliers (Scope 3 upstream)? What about transportation after your product leaves the farm gate (Scope 3 downstream)? Draw the line somewhere reasonable to start.

2. Conduct a Data Availability Audit

Go on a scavenger hunt. Gather utility bills, fuel receipts, fertilizer purchase records, irrigation logs, and seed tags. You’ll likely find you have more data than you think—it’s just scattered. This audit reveals your gaps.

3. Prioritize Metrics That Matter Most

You can’t measure everything at once. Focus on the big-ticket items first. For most, that’s:

4. Embrace Low-Tech and High-Tech Tools

A simple spreadsheet is a perfectly fine starting point. But also, explore farm management software, IoT sensors for real-time energy/water tracking, and even satellite imagery for soil carbon estimates. The tech is getting more accessible every day.

5. Build a Narrative, Not Just a Spreadsheet

This is the human part. Your data tells a “what.” Your narrative explains the “why” and “how.” Are you a fifth-generation farm transitioning to no-till? A vertical farm powering its racks with a community solar project? That story creates trust and context around the numbers.

Turning Disclosure Burden into Business Value

Honestly, if you only see this as a compliance task, you’re missing the bigger picture. The process of gathering this data is incredibly revealing. It can spotlight inefficiencies you never noticed—a leaky irrigation line, an underperforming HVAC unit, an over-application of inputs.

That means cost savings. It also means you can authentically market your products to a growing segment of conscious consumers. And perhaps most importantly, it positions you as a forward-thinking partner to the big buyers who are desperately seeking sustainable supply chains.

Look, the fields of disclosure are being plowed, whether we’re ready or not. The question isn’t really if you’ll need to report, but when. Starting this journey now—even in small, deliberate steps—means you control the narrative. You get to tell the true story of your harvest: not just its weight, but its worth.

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Karen

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