Beyond compliance: A cross-case analysis of MNCs’ decarbonisation strategies in smallholder cocoa, coffee, and palm oil systems

This study examines the decarbonisation strategies of three multinational companies (MNCs) operating in global agri-food supply chains. Prior research suggests that, in the agri-food sector, most greenhouse gas emissions originate from on-farm activities and land-use change, making the reduction of upstream Scope 3 emissions a major challenge for MNCs. Smallholder farmers play a crucial role in this process, as they are both significant contributors to climate change and highly vulnerable to its impacts. This paper explores whether MNCs are primarily motivated by compliance with global climate targets or by genuine efforts to incorporate smallholders into their supply chains, aiming to promote better farming practices and improved livelihoods. The research draws on three detailed case studies of decarbonisation strategies from Mondelēz, Nespresso, and Unilever, focusing, respectively, on smallholder cocoa production in Côte d’Ivoire, coffee production in Uganda, and palm oil production in Indonesia. The study utilises documentary data from the MNCs spanning 2010 to 2025. The cross-case findings indicate that MNCs are prioritising upstream reductions of emissions, mainly through carbon sequestration. Encouraging climate-friendly farming practices among smallholders is also expected to help MNCs achieve their climate goals. However, initiatives aimed at improving smallholders’ livelihoods remain limited and have minimal impact on breaking the poverty cycle. The study expands existing research by shifting the focus from meeting global climate targets to addressing structural issues within global agri-food supply chains, including smallholders' socio-economic circumstances, unequal value-sharing, institutional conditions, and vulnerability to climate impacts.