As businesses strive to meet sustainability goals and reduce their carbon footprint, Environmental, Social, and Governance (ESG) factors have become key drivers of corporate strategy. While ESG reporting may seem like a concern primarily for large corporations and investors, it has growing implications for the agricultural sector as well. Farmers, ranchers, and agribusinesses are increasingly integral to companies' ESG efforts, particularly in meeting environmental targets through sustainable practices.

This publication provides a comprehensive overview of ESG principles and their influence on corporate decision-making, supply chain operations, and regulatory compliance. It delves into the significance of greenhouse gas emissions reporting, including the evolving legal landscape, such as California’s SB 253, which will require large companies to disclose emissions across their supply chains. Understanding these factors is essential for agricultural producers who supply raw materials to major food and agribusiness companies. As ESG expectations continue to evolve, staying informed is critical to navigating new opportunities and challenges in the marketplace.

Jordan Shockley | jordan.shockley@uky.edu

Tiffany Dowell Lashmet | Department of Agricultural Economics, Texas A&M AgriLife Extension

Casey Matzke | Department of Rangeland, Wildlife & Fisheries Management, Texas A&M AgriLife Extension