The Scottish Government commissioned LUC to assess the influence of the private sector on driving climate action in Scottish agriculture.

The project aimed to identify the current and anticipated requirements placed on farmers by the supply chain, and the effectiveness of these actions in reducing emissions.

The project identified a growing focus on farm-level emissions reductions across the agricultural supply chain.

Retailers, processors, and financial institutions are placing increasing pressure on farmers to measure their carbon footprint and implement mitigation strategies.

While some support is offered, the long-term expectation is that climate action will become a requirement for doing business.

LUC's research examined the specific requirements placed on farmers by different sectors within the supply chain.

The project identified variations in the level of pressure and support offered, with the dairy and malting barley sectors leading the way in terms of contractual obligations and incentives.

The project predicts that market pressures for decarbonisation will continue to intensify across all agricultural sectors.

Consumers' growing demand for low-carbon food will be a key driver, alongside regulatory and financial pressures on supply chain actors.

As a result, farmers can expect to see more stringent requirements and potentially price penalties for non-compliance with emissions reduction targets.