Los Angeles, CA – ProducePay, the agtech company on a mission to transform the global agricultural industry into a more predictable, connected and sustainable supply chain, has published its 2023 Impact Report. The report details the company’s comprehensive strategy to address the 40% food waste prevalent in the global fresh produce supply chain.
ProducePay’s inaugural Impact Report highlights the company’s action to achieve positive ESG (Environmental, Social, and Governance) outcomes, focusing on fostering stability and sustainability throughout the fresh produce supply chain. Central to this initiative are ProducePay’s Predictable Commerce Programs.
“We’ve long recognized the valid concerns surrounding the environmental and social impact of the global agricultural sector,” said Patrick McCullough, CEO of ProducePay. “This inaugural Impact Report has allowed us to measure, for the first time, the positive outcomes of our day-to-day activities, including reducing food waste, improving working conditions, fostering community development, and promoting sustainable farming practices.”
ProducePay’s Strategy for a More Sustainable Produce Supply Chain
The global fresh produce supply chain is often marked by inherent volatility, leading to speculation, inefficiencies, food waste, and financial instability for growers, marketers, and retailers alike. In response, ProducePay has developed a robust solution to combat food waste and reduce market volatility, aligning with several United Nations Sustainable Development Goals (SDGs).
“Our strategy is straightforward: by making commerce more predictable for growers, marketers, and retailers, we catalyze transformative change across the entire produce industry and positively impact millions of lives,” McCullough continued.
Measuring impact on its own operations and that of its global customer base, ProducePay’s impact strategy is built around three key pillars:
1. Enabling Sustainable Supply
ProducePay partners exclusively with farms that adhere to the highest environmental and social standards, in line with the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability. This ensures client compliance with environmental, employment, and safety policies within their network of growers. The company also develops Environmental and Social Action Plans (ESAPs) when growers show room for improvement.
2. Reducing Waste
By facilitating direct commerce, ProducePay eliminates unnecessary intermediaries, streamlines the supply chain, and significantly reduces greenhouse gas emissions. Their 2023 Table Grape Predictable Commerce Program achieved a 90% reduction in retail rejections, avoiding 393 tons of produce rejections – equivalent to 655,000 meals recovered.
3. Stabilizing Value
ProducePay enhances visibility and traceability throughout the supply chain while promoting leadership best practices. This pillar focuses on creating positive economic impacts by stabilizing price fluctuations and ensuring business practices are ethical, socially responsible, and environmentally friendly.
As part of its commitment to transparency, ProducePay will publish its corporate ESG targets in the 2024 Impact Report. Key figures from this year’s report include:
- Financing: Over $500 million provided to global farmers meeting the IFC performance standards.
- Emissions: Reported 1,574.51 tCO2e emissions, primarily from business travel and purchased goods and services.
“As we continue to innovate and drive sustainability, our focus remains on creating long-term value for all stakeholders. By addressing the root causes of market volatility and food waste, we’re not just building a more predictable supply chain—we’re contributing to a more sustainable future for global agriculture and securing the food supply for future generations” McCullough concluded.
To download the ProducePay 2023 Impact Report, please visit: https://producepay.com/sustainability-producepay/