Nature is central to everything we produce, consume and ultimately depend on – whether it’s a supporting ecosystem, biodiversity, climate regulation or human health and wellbeing – its degradation poses a critical risk to the economy.
If your farm supplies products to European-owned businesses, or ones that substantially operate in the EU, such as retailers, wholesalers or food manufacturers, you may be impacted by the Corporate Sustainability Reporting Directive (CSRD) requirements. These businesses must account for emissions throughout their supply chains – including those from farms – meaning you may be required to provide detailed environmental data.
The UK is intending to implement it’s own response to CSRD, under requirements becoming known as Climate Related Financial Disclosure and Nature Related Financial Disclosure.
Hence, with these impending regulatory reporting requirements on the horizon, many businesses in the food supply chain are now implementing carbon and nature reporting programmes within their ESG policies.
Will farms really be affected by CSRD?
In short, yes. When food companies evaluate emissions from their supply chain, farms are at the top of their list of contributors, this means that the reporting elements that are needed to meet their own requirements, will have to come from you as a farmer as part of the supply chain.
If you’re providing food companies or other businesses with produce from your farm, you’re highly likely to become subjected to the same reporting requirements and frameworks.
It is recognised that approximately a quarter of global greenhouse emissions comes from food production, with 18% of that coming from the supply chain, 31% from livestock, 27% from crop production, and 24% from land use. Retailers, wholesalers, food processors and food manufacturers of certain sizes are expected to comply already within the CSRD framework. Auditors responsible for monitoring compliance may request data from farms from 2028 onwards for the 2026 trading year. The bottom line is, as a farmer, you must be getting ready to share relevant data relating to your farm’s environmental footprint, including the use of chemicals, fertilisers, water and energy.
Carbon reporting is no longer optional. Farmers must proactively prepare for these evolving requirements to ensure smooth compliance and maintain supplier relationships.
The experts at CSX have written a handy guide which provides essential tips for farmers to get ready for CSRD.
Digitalising your paper trail & preparing for compliance
One of the biggest challenges farmers are faced with is transitioning from traditional paper-based records to efficient digital reporting. To ensure compliance and ease the burden of data collection, you could:
- Adopt a digital solution that integrates seamlessly into farm operations, allowing you to track and report data in real time.
- Understand carbon sequestration in farming and explore how your farm’s practices impact sustainability efforts.
- Assess carbon payments to determine whether you can generate revenue through sustainable practices and carbon credits.
- Consult with CSX’s experts to simplify compliance, streamline reporting and leverage insights to help support farm efficiency.
- Request a full biodiversity and carbon assessment to understand your farm’s environmental footprint and identify areas for improvement.
How to sell carbon credits from your farm
As sustainability becomes a growing focus, many farmers are exploring the potential of carbon credits as an additional revenue stream. By implementing carbon sequestration practices you can generate carbon credits that can be sold to companies looking to offset their emissions.
In the early stages of these new requirements, it is important to consider though whether carbon, and indeed nature, value could also be added to agricultural produce. It may be that carbon being accounted for within a farms’ output can add value to that produce.
Understanding the carbon reporting process is essential in verifying these credits. Proper documentation and third-party verification ensure your farm’s carbon reductions are accurately accounted for and meet market requirements.
At CSX, we provide the tools and expertise to help farmers navigate this complex but rewarding process.
Plan, monitor, and track your farm's ecological interventions
Our innovative platform allows you to efficiently plan, monitor, and track ecological interventions while bringing your BNG and carbon offsets to market. Achieve transparency and long-term success with our cutting-edge system, designed to optimise both the environmental and financial value of your land.
Common challenges in farming and how to overcome them
While carbon reporting is becoming essential, many farmers face key challenges when getting started. Here are some common concerns and how to overcome them:
“I don’t know what data I need to collect.”
Focus on key environmental metrics such as fertiliser use, fuel consumption, soil health, sustainable land use and biodiversity. Digital tools, like those from CSX can simplify data tracking.
“I’m worried about the time and cost involved.”
A well-structured reporting system will reduce long-term administrative burdens. Digital solutions can automate data collection, save time and improve accuracy.
“What if I make a mistake reporting my carbon?”
Working with experts ensures compliance to help navigate the requirements confidently. Failure to report may affect your ability to work with retailers, wholesalers and others that require compliance.
Taking action and get reporting your carbon
By taking action now, you can:
- Improve transparency and trust in the supply chain.
- Gain access to new market opportunities, including sustainable farming incentives.
- Reduce the risk of non-compliance penalties and business disruptions.
Navigating this new landscape of compliance can be complex, but CSX offers tailored solutions to simplify the process. Explore our CSRD services or contact us to prepare your farm for the future.