Decoupled sourcing – Nestlé and Barry Callebaut agroforestry partnership boosts resilience of Côte d’Ivoire’s chocolate industry BOX 13 Decoupled sourcing – Iowa Soybean Association’s outcome credits fund payments to US farmers for verified improvementsBOX 14 Decoupled sourcing – First Movers Coalition for Food’s breakthrough model for financing and collaborationBOX 15In Côte d’Ivoire, Nestlé and Barry Callebaut – two Swiss companies in the cocoa and chocolate supply chain – are partnering in a long-term, large- scale agroforestry project to diversify agricultural production, reduce fossil fuel inputs and costs, and sequester carbon, covering some 11,500 hectares and 6,000 farmers. The programme helps both buyers and suppliers to boost the resilience of their production and purchasing. The partnership, which aligns with the Science Based Targets initiative (SBTi) and SustainCERT verification, is expected to reduce and remove up to 1.3 million tonnes of CO2- equivalent over 25 years, certified by third-party verification systems.50 Importantly, the companies are able to claim these savings as reductions to their scope 3 footprint. In the US, the Iowa Soybean Association manages a soil and water outcomes fund (SWOF) that uses results-based financing and farmer support to expand regenerative practices. SWOF pays farmers directly (including some upfront payments) for verified improvements in water quality, carbon sequestration and soil health. These payments are funded through the sale of “outcome credits” – verified units of environmental improvement – to government and leading food companies, including PepsiCo and Cargill. SWOF also provides agronomic guidance and outcome modelling. This approach enables farmers to adopt more sustainable practices without financial risk or reliance on offtakers, while creating a transparent marketplace for environmental outcomes. Since its pilot in 2020, SWOF has expanded to over 250,000 acres across 19 US states, with participating farmers reporting strong satisfaction and measurable economic and environmental benefits, including reduced nutrient runoff, increased soil organic matter and additional carbon sequestered.51,52 The World Economic Forum, through its First Movers Coalition for Food initiative, has developed a breakthrough model for financing and collaboration to create a scalable system for supporting farmers. The model proposes that farmers receive upfront capital to fully cover transition costs, along with technical support and MRV services to implement and track verified ecosystem outcomes. Food companies, retailers and traders could create demand signals through long-term offtake commitments to purchase those outcomes. Under this model, transition costs would be shared across value chains, further motivating participation. Farmer-allied organizations – such as grower associations and cooperatives – could play a coordinating role, aggregating ecosystem outcomes and matching them with buyers so that supply aligns with demand, and managing the flow of financing. Financiers could provide an upfront loan to farmers that is repaid over time by system actors in return for deployed practices and verified outcomes. Since the publication of the Forum’s 2024 report, 100 Million Farmers: Breakthrough Models for Financing a Sustainability Transition, this model has continued to evolve within the FMC for Food’s North America row crops working group, with a subset now working towards launching a 2026 collaboration that would put it into practice.53 This initiative is instrumental in PepsiCo’s efforts to expand regenerative practices across an additional 240,000 acres of Saskatchewan and Manitoba farmland in Canada by the end of 2025. This will nearly double its footprint to more than 500,000 acres of farmland managed with practices that nurture nature and contribute to the long-term vitality of Canada’s farms.48,49 First Movers Coalition for Food: CEO Lessons for the Future of Food Procurement 16

First Movers Coalition for Food 2026