Aug 14, 2024

Sustainability Paradox: How Can a Dairy Farm Be a B Corp?

The certification of Europe's first dairy farm as a B Corp raises questions about the accreditation.

With a dairy farm in Europe recently receiving B Corp certification, it's important to take a closer look at what this really means. B Corp certification is meant to recognize companies that meet high standards of social and environmental performance, accountability, and transparency. But given the environmental footprint of dairy farming, it’s worth asking whether these operations truly fit within the core values that B Corp represents.

Understanding B Corp Certification

B Corporations, or B Corps, are companies that meet high standards of social and environmental performance, accountability, and transparency. Certified by the nonprofit B Lab, these businesses aim to balance profit with purpose. To achieve certification, a company must:

Prove Social and Environmental Impact: By completing a detailed assessment that measures how the company affects its workers, community, environment, and customers.
Commit to Legal Accountability: By adopting a corporate structure that requires them to consider all stakeholders, not just shareholders.
Be Transparent: By making their impact report publicly available on B Lab’s website.

Dairy milk far outweighs the CO2 emissions in comparison to plant-based milk alternatives. (c) Freedom Food Alliance 2024

The Environmental Impact of Dairy Farming

Dairy farming has long been rightfully scrutinized for its substantial environmental impact. The industry is a major contributor to greenhouse gas emissions, deforestation, river & water pollution, and soil degradation.

Greenhouse Gas Emissions: Dairy farms are significant sources of methane, a potent greenhouse gas. Methane emissions primarily result from enteric fermentation in cows and the management of manure. According to a frequently cited report by the Food and Agriculture Organization (FAO), livestock accounts for 14.5% of human-caused greenhouse gas emissions, with dairy farming being a considerable contributor.

Water Pollution: Manure management poses a severe threat to water quality. Large-scale dairy operations generate vast quantities of manure, which, when improperly managed, can contaminate local waterways with nitrogen and phosphorus. This leads to eutrophication, creating dead zones where aquatic life cannot survive‍.

Land and Water Usage: The dairy industry demands extensive land and water resources. It takes approximately 144 gallons of water to produce just one gallon of milk, with the majority used to grow feed for dairy cows‍.

The Case of More Holstein: Europe’s First B Corp Certified Dairy Farm

More Holstein, located in Valencia, Spain, recently became the first dairy farm in Europe to achieve B Corp certification. The farm has been working with Danone for years and has made several efforts to be more sustainable and socially responsible.

Environmental Efforts: The farm has installed solar panels, improved water usage, rotated crops to reduce soil usage, and enhanced soil fertilization, cutting CO2 emissions by 46,665 kg annually.
Biodiversity and Animal Welfare: The farm uses regenerative agriculture to boost soil health and biodiversity, and it holds a certification for high standards in animal welfare.
Community and Labor Rights: More Holstein employs nearly half its workforce locally and provides internships for over 300 students, which has earned them high marks in the B Corp assessment, particularly in the areas of community involvement and worker treatment.

The Paradox of Dairy Farms as B Corps

Given the environmental impact of dairy farming, the certification of a dairy farm as a B Corp seems paradoxical. The core values of the B Corp movement emphasize sustainability and minimizing environmental harm, yet dairy farming is inherently resource-intensive and environmentally damaging.

Methane Emissions: Efforts to mitigate methane emissions through dietary adjustments for cows or technological innovations are still in nascent stages and have not yet proven effective on a large scale‍.

Manure Management: While best practices for manure management exist, the reality is that many dairy operations struggle to manage waste sustainably, leading to frequent pollution incidents‍.

Resource Intensity: The incredible volume of water and land required for dairy farming conflicts with the principles of resource conservation that underpin B Corp certification ‍.

Several companies that have received B Corp certification have sparked debate over the standards and effectiveness of the certification process. One example is Nespresso, a subsidiary of Nestlé, which became a certified B Corp, leading to criticism due to concerns about its environmental practices and the social impacts of its supply chain. Critics pointed out that the certification overlooked the poverty-level incomes of farmers and the significant waste generated by its coffee capsules.

Another contentious certification was that of the mining industry, which B Lab has acknowledged has potential negative social and environmental impacts. Companies in this sector are required to meet additional standards to be eligible for B Corp certification. This highlights the challenges in certifying industries traditionally seen as environmentally harmful, raising questions about the rigor and consistency of the certification standards.

The inclusion of companies operating in tax havens and the fossil fuel industry has led to further scrutiny. The eligibility of these companies hinges on meeting specific risk management criteria, but their core business activities remain at odds with the foundational values of sustainability and transparency that B Corps are supposed to uphold.

These examples emphasizes the need for the B Corp movement to continuously evaluate and strengthen its certification criteria to ensure it remains aligned with its mission of promoting social and environmental good.

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Lessons from Jigsaw Farms: The Limits of Carbon Neutrality

The story of Jigsaw Farms, Australia’s best-known carbon-neutral farm, highlights the challenges of achieving and maintaining carbon neutrality in the agricultural sector. Initially successful in offsetting its emissions through tree planting and soil management, Jigsaw Farms eventually reached a point where its carbon sequestration efforts could no longer keep pace with its emissions.

Law of Diminishing Returns: As the trees planted for carbon sequestration matured, their ability to absorb CO2 diminished. Similarly, the soil reached a saturation point where it could no longer sequester additional carbon. This highlights the temporary nature of such offsetting measures and the ongoing challenge of methane emissions from livestock‍.

Broader Implications: The experience of Jigsaw Farms reflects the broader difficulties in decarbonizing the agricultural sector, particularly in industries like dairy and beef farming where methane emissions are significant. This raises questions about the long-term sustainability of current offsetting practices and the need for more comprehensive solutions‍.

Jigsaw Farms, Australia’s best-known carbon-neutral farm, become a point of question. Can farming animals ever be eco-friendly? (c) Freedom Food Alliance. All Rights Reserved.

Conclusion: A Call for Integrity in Certification

Certifying a dairy farm as a B Corp raises important questions about how well the B Corp movement’s values align with its certification practices. To maintain the credibility of this certification, it’s crucial that the standards remain rigorous, especially for industries with significant environmental impacts.

Here’s what we can do to navigate these challenges and promote genuinely sustainable practices:

Push for Stronger Standards: Advocate for tougher environmental criteria in the B Corp certification process to ensure that only truly sustainable practices are recognized.
Support Sustainable Alternatives: Promote plant-based alternatives to dairy, which have a much smaller environmental footprint and better align with the values of the B Corp movement.
Educate and Raise Awareness: Inform consumers and stakeholders about the environmental impacts of dairy farming and the importance of supporting businesses that are genuinely sustainable.
Advocate for Policy Change: Support policies that encourage sustainable farming practices and discourage environmentally harmful operations.

By upholding stringent certification standards and encouraging authentic sustainability, we can help create a food system that prioritizes the health of our planet and all its inhabitants.

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