Athian and Elanco Animal Health Team Up to Transform Food Production through Methane Reduction

Rhea-AI Summary

Athian announces the establishment of the first voluntary livestock carbon insetting marketplace, allowing farmers to monetize their greenhouse gas emission reductions. The marketplace will focus on reducing enteric methane emissions and improving feed utilization. Dairy farmers can implement sustainability interventions, measure their impact, and sell carbon credits. Companies in the dairy value chain can purchase these credits to contribute to their emissions reduction goals. The marketplace will expand to other livestock and poultry in the future.

Positive

• Farmers can monetize their greenhouse gas emission reductions through the livestock carbon insetting marketplace.
• Dairy farmers can implement sustainability interventions and sell carbon credits.
• Companies in the dairy value chain can purchase carbon credits to contribute to their emissions reduction goals.

Negative

• None.

CEOs speaking at Reuters Transform Food Today Announce the First-of-its-Kind Livestock Carbon Inset Market has First Carbon Credits Verified for Sale

GREENFIELD, Ind. & INDIANAPOLIS--(BUSINESS WIRE)-- Athian (athian.ai) announced today the establishment of the first-of-its-kind voluntary livestock carbon insetting marketplace, with the first accepted protocol aimed at reducing enteric methane emissions and improving feed utilization by using innovative feed management products from Elanco Animal Health (NYSE: ELAN). This new carbon marketplace creates an opportunity for farmers to monetize their greenhouse gas emission reductions.

Athian is verifying its first farms and creating, certifying and selling carbon credits within the dairy value chain. This means:

• Dairy farmers of all sizes now have the opportunity to implement on-farm sustainability interventions, measure the impact and participate in third-party verification for their greenhouse gas emissions reductions. The resulting carbon credits can be offered for sale in Athian’s livestock carbon insetting marketplace.
• Companies in the dairy value chain (such as consumer-packaged goods companies and food retailers) can then purchase those carbon credits as contributions towards achieving their Scope 3 emissions reduction goals.
• With the purchase of these credits, economic value is returned to the farmer via the sale while supporting the U.S. dairy industry progress towards their own environmental commitments of greenhouse gas neutrality by 2050.ⁱ
• Over the long term, this marketplace will expand to other livestock & poultry.

“Athian’s first carbon credits for dairy are an exciting and crucial step as they demonstrate the ability to tangibly quantify and verify greenhouse gas emissions reductions and create monetary value for farmers for their efforts,” said Paul Myer, CEO of Athian. “This marketplace, specifically designed for the animal protein industry, is different than traditional offsetting carbon marketplaces because it keeps the value—economic value as well as positive environmental value—in the animal protein value chain.”

Empowering Farmers with Economic Opportunities

Despite widespread awareness of carbon markets by farmers, only 3% of farmers are participating in these markets today, according to a recent survey cited by the U.S. Department of Agriculture (USDA).ⁱⁱ Creating an inset market model that works with recognized supply chain partners makes it easier for farmers to measure and implement rigorous verifications, will help break these barriers to entry and accelerate progress.

“As a co-creator and seed investor in Athian, we’re excited to see the company reach the milestones that will bring new value to farmers and help them advance toward climate-neutral farming,” said Jeff Simmons, President and CEO of Elanco Animal Health. “As a leader in animal health, we’ve focused first on delivering enteric methane reduction solutions to producers. If the entire U.S. dairy industry leveraged this intervention, it would avoid 4.7 million metric tons of CO2e emissions annually from enteric, feed and manure emissions. This is a game changer for value creation throughout the food chain, and it’s just the start. Environmental sustainability needs to be grounded in farmer profitability.”

Elanco also developed UpLook™, an insights-based engine designed to measure and monitor greenhouse gas emissions. The tool utilizes on-farm data and peer-reviewed science to identify key drivers of an operation’s carbon footprint and track the progress of their sustainability efforts. UpLook connects seamlessly to Athian’s cloud-based verification system to help farmers quantify their reduction efforts and certify carbon credits for sale.

Enabling The Value Chain to Achieve Sustainability Goals

Food companies and retailers have made public commitments to collectively reduce more than 100 million metric tons of greenhouse gas emissions by 2030. Despite the progress in corporate target-setting, the reduction of Scope 3 emissions, which typically come from the production of raw materials like milk, has been a significant challenge. The creation of Athian’s insetting livestock carbon credit marketplace provides companies in the animal protein value chain the opportunity to make meaningful progress toward their Scope 3 greenhouse gas reduction goals.

Athian and Elanco are participating in the Reuters Transform Food USA 2023 event on Thursday, November 2, 2023, to speak more about this transformation.

Enteric methane reduction carbon credits are now available for purchase through Athian’s insetting carbon marketplace. Visit www.athian.ai to learn more and connect directly with Athian.

Additional Resources:

https://www.athian.ai/knowledge-hub

ABOUT ELANCO

Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With nearly 70 years of animal health heritage, we are committed to helping our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose– all to advance the health of animals, people, the planet and our enterprise.

About Athian

Athian’s key mission is to help the beef and dairy value chains capture and claim carbon credits generated through on-farm sustainability efforts by aggregating, verifying, and certifying greenhouse gas (GHG) reductions, and monetizing those reductions for the producer through the sale of carbon insetting credits.

ⁱ https://www.usdairy.com/sustainability/environmental-sustainability
ⁱⁱ USDA Releases Assessment on Agriculture and Forestry in Carbon Markets | USDA

View source version on businesswire.com: https://www.businesswire.com/news/home/20231102251225/en/

Investor Contact: Katy Grissom (317) 273-9248 kathryn.grissom@elancoah.com

Media Contact: Season Solorio (765) 316-0233 season.solorio@elancoah.com

Athian Media Contact: Corey Scott (651) 262-3545 corey@athian.ai

Source: Elanco Animal Health Incorporated

FAQ

What is the main announcement in the press release?

The main announcement is the establishment of the first voluntary livestock carbon insetting marketplace by Athian.

What do dairy farmers have the opportunity to do?

Dairy farmers have the opportunity to implement sustainability interventions, measure their impact, and sell carbon credits.

Who can purchase the carbon credits?

Companies in the dairy value chain, such as consumer-packaged goods companies and food retailers, can purchase the carbon credits.

Will the marketplace expand to other livestock and poultry?

Yes, the marketplace will expand to other livestock and poultry in the future.

What percentage of farmers are currently participating in carbon markets?

According to a recent survey cited by the U.S. Department of Agriculture, only 3% of farmers are participating in carbon markets.