How McCormick Cut GHG Emissions and Strengthened US Farmer Resilience

How cross-sector collaboration and outcome-based incentives helped scale regenerative agriculture across McCormick’s U.S. supply chain

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1. Company at a Glance

In this case study, we discover how McCormick, a global leader in flavor partnered with PepsiCo and the Soil and Water Outcomes Fund to scale regenerative agriculture across its U.S. supply chain. By offering outcome-based payments and technical support to farmers, the initiative helped overcome financial and operational barriers to adopting climate-smart practices. The program not only reduced greenhouse gas emissions and improved soil and water outcomes across thousands of acres, but also demonstrated the power of cross-sector collaboration to drive meaningful, measurable impact in supply chains.

Food & Beverage

Industry

United States

Headquarters

14,000+

Number of Employees

Operations in 29 countries with products sold across 150 countries and territories

Global Presence

2. The Challenge

McCormick operates in a sector that is fundamentally dependent on agriculture. Farmers, as stewards of the land, are at the center of its supply chain, and the company’s resilience is directly connected to theirs. However, agriculture faces increasing environmental pressures and systemic risks, from soil degradation to water scarcity. 

A critical barrier to advancing regenerative agriculture lies in the upfront investment required from farmers. Many producers lack the financial means to transition to climate-smart practices, even though these approaches can improve soil health, conserve water, reduce ecosystem disruption, and enhance farmer income. 

Recognizing this challenge, McCormick understood that supporting farmers in overcoming these barriers was essential not only to reduce emissions and protect ecosystems but also to safeguard the long-term sustainability of its supply chain and deliver on its climate commitments validated by the Science Based Targets initiative (SBTi).

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3. The Action

Implementing Regenerative Agriculture in Supply Chains to Help Achieve Climate Goals

1

Aligning Climate Goals Across the Value Chain

McCormick has made a strong commitment to climate action, publicly pledging to achieve net-zero emissions by 2050 with targets validated by the Science Based Targets initiative (SBTi). This ambition is a key building block of the company’s sustainability strategy and helps ensure that efforts across the value chain are aligned and focused on generating measurable, science-based impact.

2

Mapping the Supply Chain

To credibly account for environmental outcomes in commodity supply chains, McCormick applied SWOF’s “supply shed” methodology. This approach defines a geographic region that reflects sourcing areas for dairy, allowing for measurable sustainability outcomes even when direct traceability to individual farms is not possible. By targeting states like Minnesota, South Dakota, Wisconsin, and Iowa—and later expanding to the eastern U.S.—the program ensured that improvements were tied to McCormick’s actual sourcing footprint.

3

Partnering to Incentivize Regenerative Agriculture

Once these key regions were identified, McCormick engaged the Soil and Water Outcomes Fund (SWOF) as a contracted partner to implement a program that supports farmers adopting climate-smart practices. SWOF then reached out to local farmers, in McCormick’s supply sheds, who may be interested in adopting new conservation practices. 

 

Farmers provided initial information such as historical field data (3–5 years of crop rotation, planting dates, fertilization, and tillage practices), enabling accurate baseline assessments. SWOF offered not only financial incentives but also technical and agronomic support, including data assistance, one-on-one engagement, and on-site field verification through in-person visits to confirm conservation practices and capture on-site photos. 

 

Through this collaboration, U.S. farmers are incentivized to implement regenerative agriculture practices that improve soil health, conserve water, and reduce greenhouse gas (GHG) emissions. Farmers committed to adopting at least one new conservation practice beyond their baseline operations—such as reduced tillage, cover cropping, or extended crop rotation—ensuring that the program delivers measurable improvements in the carbon footprint of farming operations.

4

Ensuring Farmer Flexibility and Long-Term Participation

The program was designed with farmers’ needs in mind, offering one-year contracts and allowing participants to trial practices on a subset of their fields. This flexibility reduced adoption risks and encouraged ongoing participation. SWOF reports a re-enrollment rate above 90% across its programs, underscoring the value farmers see in continuing with climate-smart practices.

5

Strengthening Cross-Functional Collaboration Within McCormick

The project was led by McCormick’s Procurement team, with Sustainable Sourcing taking the lead on implementation. The Corporate Sustainability team also played a critical role by identifying the opportunity and acting as a bridge between commercial teams and technical experts working on sustainability. This cross-functional approach ensured both operational feasibility and alignment with McCormick’s broader climate commitments.

As an example of the technical and on-the-ground support provided by SWOF, see the profile of Field Program Representative Rachel Schuler, who works directly with farmers to identify and verify conservation practices: SWOF Profile – Rachel Schuler

 

4. Overcoming Barriers

1

Funding for Regenerative Programs:

Securing funding for regenerative programs proved challenging, as their importance is not yet widely recognized. To overcome this, the sustainability team developed the business case for these programs demonstrating how regenerative agriculture delivers numerous benefits to the business including resilient supply chains and strong customer partnerships. During the annual business planning process, McCormick earmarks funds to support decarbonization projects.

2

Farmer Engagement and Trust:

Building trust with farmers and ensuring they felt supported throughout the process was essential. Through its partnership with SWOF, McCormick supported farmers through a challenging economic environment, enabling them to adopt risky and at times more expensive farming practices.

3

Systemic Change in Supply Chains:

Transitioning entire supply chains toward regenerative practices is inherently complex. It demands more than financial incentives — it also requires sustained collaboration, technical assistance, and transparency to enable adoption at scale.

5. Impacts & Results

In its first year, McCormick’s funding supported more than 100 farmers in adopting regenerative agriculture practices across over 80,000 acres of farmland in the U.S. Midwest.

These efforts resulted in the abatement of more than 50,000 metric tons of greenhouse gas emissions.

A key internal outcome was showcasing the strategic value of collaborative partnerships to achieve shared sustainability goals.

The success of this initiative is opening the door to replicating similar programs with other customers and suppliers, allowing for cost-sharing while accelerating climate progress.

6. Key Lessons Learned

1

Find Common Ground to Drive Action

Identifying shared interests among internal and external stakeholders allowed the company to develop tangible initiatives and foster cross-functional collaboration. In this context, PepsiCo, a key McCormick customer with an existing relationship with SWOF — played an important role. Both companies shared the goal of lowering GHG emissions and had jointly prioritized reducing emissions and advancing regenerative agriculture.

2

Start Internal Engagement Early — But With a Clear Idea

Educating internal stakeholders early in the process can be critical, but it is important to present them with a clear, tangible idea. Engaging too early without structure may lead to skepticism and slow down progress.

3

Adopt an Agile Mindset

The development and implementation of such programs requires flexibility, persistence, and the ability to quickly adapt to challenges. Proposing fast alternatives was key to keeping momentum.

"McCormick will continue to build on this strategic supply chain partnership— collaborating with our customers and key suppliers to champion regenerative agriculture practices that secure the future of flavor for generations to come."

Lydia Perez Poole, Director, Global Sustainability

Recommended UN Global Compact resources to support your journey:

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Disclaimer: This case example is intended strictly for learning purposes and does not constitute an endorsement of the individual companies by the UN Global Compact.