Impact and dependencies in the agri-food supply chain

In this article, Virginia Castellucci (Head of Sustainability, XNatura), Giorgio Puzzarini (Sustainability Specialist, XNatura), and guest speaker Maura Avallone (XFarm Technologies) explore how the XNatura platform helps companies manage nature-related risks, comply with CSRD and TNFD, and integrate nature data into site and portfolio decisions. XNatura is an integrated nature-tech platform supporting biodiversity, nature, and climate strategies through satellite imagery, bioacoustic sensors, and eDNA analysis. This article covers how to effectively assess and prioritize climate and environmental risks in agricultural sites, digitalization of field data ensuring compliance with TNFD and CSRD, and how to perform a scenario analysis. A real case from Gruppo Colussi, in collaboration with XFarm, is presented, showing how deployed IoT sensors on the fields monitor pollinators, providing valuable insights into the regenerative agricultural practices being implemented.

The agenda for today’s session includes the following. The presentation will begin with an introduction to XNatura, providing an overview of the company and its mission. This will be followed by coverage of the regulatory landscape impacting the sector. The risks associated with environmental impact in the industry will then be examined. A review of the main directives currently shaping the sector will follow. Afterward, a live demonstration of the platform will be provided. A case study developed in collaboration with the partner XFarm, focused on Gruppo Colussi, an Italian company in the agri-food sector, will then be presented. The last ten minutes of the session will be dedicated to a wrap-up and a Q&A session. Any questions arising during the webinar can be posted in the chat and will be addressed at the end.

XNatura is a leading environmental technology platform focused on monitoring nature and biodiversity through advanced technologies. The platform was awarded a €2 million fund from the European Union to develop Europe’s first biodiversity credits. It is supported by a team of 60 professionals and currently monitors over one million hectares worldwide. To enable this, more than 10,000 IoT devices have been deployed in the field for real-time monitoring. Institutional partners include the European Space Agency, which has contributed to the development of some of the technologies. XNatura collaborates with private companies, municipalities, and natural parks to advance its mission. It operates as the environmental intelligence division of 3Bee, a company founded in 2017 with a strong focus on nature regeneration. The monitoring approach combines remote sensing, ground-based sensors, lab analysis, and on-field surveys.

The agriculture and food sector represents a significant portion of the global economy, with a market value of around nine trillion dollars. It is also one of the most nature-dependent and climate-exposed sectors, making its transformation crucial for both environmental and economic resilience. Attention is increasingly turning to the entire value chain, as it plays a key role in supporting soil health, water efficiency, climate-smart practices, and overall ecosystem resilience. The sector is evolving rapidly, driven by innovation in areas such as urban farming, alternative proteins, regenerative agriculture, and agri-tech solutions. These emerging approaches are not only improving productivity and sustainability but are also fundamentally reshaping the global food system. Given its deep reliance on natural resources, the sector’s future is closely tied to the health of ecosystems, reinforcing the importance of nature-positive strategies in its ongoing transformation.

The agri-food sector has a huge impact on nature. To highlight this, here are some key numbers: the food system is responsible for about 34% of global greenhouse gas emissions. Agriculture is the primary driver of 86% of global deforestation. Additionally, 33% of soils worldwide are already degraded, and intensive farming has contributed to a 60% decline in vertebrate species populations. These are the impacts, but the sector also has strong dependencies on nature. In that regard, some numbers stand out as well: over 75% of the world’s food crops depend, at least in part, on animal pollination. One hectare of healthy soil can store up to 20,000 liters of water. And genetic diversity from wild crops contributes to 60% of the traits used in crop breeding programs. In short, the sector not only affects nature significantly: it also relies heavily on it.

The agri-food sector is exposed to a range of significant and increasing nature-related risks. Physical risks include drought, heat stress, extreme storms, flooding, wildfires, sea level rise, ocean acidification, and the spread of invasive species. In addition to these, transitional risks are also present, such as increasing carbon prices, stricter public policies, the emergence of less carbon-intensive technologies, changing market preferences, growing investor pressure, and reputational risks.

The agri-food sector not only impacts nature and depends heavily on it, but also faces numerous physical and transitional risks. As a result, the sector is increasingly subject to regulation, which is evolving rapidly and often targets the entire supply chain. In terms of global trends, a foundational milestone was the Convention on Biological Diversity (CBD) in 1992, where the importance of biodiversity for global food security was formally acknowledged. This was followed by the UN Agenda and the Sustainable Development Goals (SDGs), which established sustainability as a guiding principle for the agri-food sector - especially through SDG 2 (Zero Hunger) and SDG 13 (Climate Action). Additionally, the FAO has introduced guidelines on agroecology, promoting it as an integrated method for the sustainable transformation of agricultural systems. Collectively, these frameworks outline a comprehensive global direction for the sector.

In the European Union, agriculture is guided by a dedicated and comprehensive strategy. At the core of this agenda is the Farm to Fork Strategy, which aims to build a fair, healthy, and environmentally friendly food system by addressing the entire value chain. This strategy, though ambitious, aligns with the EU’s broader goal of becoming the first climate-neutral continent. It is also closely tied to the EU Biodiversity Strategy for 2030, reinforcing environmental, social, and economic sustainability.

Supporting this vision is the Common Agricultural Policy (CAP), which seeks to align economic incentives with environmental objectives through the promotion of sustainable farming practices. Although the framework is complex, it brings together various key elements. On biodiversity protection, the main objective is to preserve habitats and species, ultimately aiming to halt biodiversity loss. This is supported through instruments like Natura 2000 funding and the Habitats Directive. For climate action, the sector contributes to the EU’s climate neutrality targets through initiatives such as carbon farming, renewable energy projects on farms, and precision agriculture. The overall strategy touches on multiple dimensions, environmental sustainability, economic viability, and rural development, and is backed by a variety of tools designed to help achieve these interconnected goals.

There is a strong emphasis on supply chain management. Two key regulatory frameworks are currently shaping how companies address ESG-related risks within the agrifood system: the EUDR and the CSDDD. The EUDR (EU Deforestation Regulation) requires companies placing certain commodities on the EU market to demonstrate that these products are not associated with deforestation or forest degradation. In addition, the CSDDD (Corporate Sustainability Due Diligence Directive), although not specific to the agrifood sector, imposes an obligation on companies to carry out due diligence across their entire supply chain. This includes identifying and addressing adverse impacts on human rights and the environment. To comply with these directives, companies are expected to implement traceability systems, ensure verification and legal compliance throughout their supply chains, conduct ongoing risk monitoring and mitigation, and integrate environmental and social criteria into procurement processes.

These two directives, which are highly relevant to supply chain management, are closely linked to the CSRD — another key piece of regulation. The CSRD (Corporate Sustainability Reporting Directive) requires companies to disclose information related to sustainability. While certain aspects have been modified under the Omnibus Directive, the CSRD remains in effect and continues to serve as the primary reference for nature-related reporting. Reporting under the CSRD is conducted using the ESRS (European Sustainability Reporting Standards), developed by the EU to provide a standardized framework, including specific standards for nature and biodiversity. These standards also introduce the concept of double materiality, which is particularly applicable to the agrifood sector. The sector both generates environmental impacts and is highly dependent on natural systems. Double materiality includes both impact materiality and financial materiality.

The Taskforce on Nature-related Financial Disclosures (TNFD) has developed specific guidelines for the food and agriculture sector. These guidelines focus on promoting sustainability by addressing critical environmental issues such as deforestation- and conversion-free sourcing, products originating from water-scarce areas, total spatial footprint, and changes in land, freshwater, and ocean use. Additionally, the TNFD suggests incorporating additional metrics to help businesses better assess and manage their environmental impacts.

The platform enables the mapping of supply chain fields using satellite imagery. It analyzes land use, detects biodiversity hotspots, and identifies areas at risk. The platform then evaluates nature-related impacts and dependencies. Through Assess, XNatura quantifies nature-related risks and opportunities by integrating key indicators, such as MSA (Mean Species Abundance) Land Use. This functionality will be demonstrated in the session. Finally, under Prepare, the platform supports target setting and generates compliance-ready reports, ensuring transparent and traceable sustainability reporting.

Once measurement is complete, the next step is Prioritize. This step is particularly critical for sensitive supply chains such as coffee or cocoa, where the risks associated with environmental degradation can have far-reaching impacts on both the ecosystem and supply chain stability. By leveraging GPS data across all supply chain locations, companies are able to identify and rank sites based on strategic goals. These goals may include targeting areas that require regeneration, those facing higher environmental risks, or those with significant biodiversity concerns. This prioritization ensures that efforts and resources are focused where they can have the greatest long-term impact, helping companies align their sustainability initiatives with environmental goals.

After prioritization, the next step is to set targets. This phase should only come after measuring and prioritizing, to ensure that the goals are feasible and grounded in real data. Setting targets without this foundation risks misalignment with actual environmental conditions or operational capacity. Targets can be defined by comparing performance with control areas, which is particularly effective when operating near high-biodiversity zones such as national or natural parks. Another approach is to benchmark against industry standards to align with best practices. Alternatively, targets can be guided by existing frameworks or regulations, such as the Half-Earth initiative, regenerate 30% of natural areas, or other nature restoration policies aimed at full ecosystem recovery.

Once targets are set, the next step is to act. The platform supports this phase by helping develop a tailored biodiversity action plan, as introduced earlier in the webinar. It also enables the creation of a broader biodiversity strategy aligned with the company’s overall goals. The final step is to disclose and track. With all data collected, measurement completed, priorities defined, and targets set, businesses can now report transparently to stakeholders. Several companies, many from the agri-food sector, have already adopted XNatura to support this process.

Upon accessing the platform, the overview section is displayed. The map shows all sites associated with the hypothetical company. By selecting a site, detailed location-specific information becomes available. Before focusing on individual sites, key data is presented: the company operates across 37 sites globally, covering a total of 41,000 hectares. The supply chain includes 30 distinct production processes, indicating a high level of operational diversity. This section provides an overview of impact, dependencies, and nature-related risks, which are crucial for the agri-food sector. It supports the identification of sites requiring immediate attention and informs decision-making, such as the potential relocation of operations when future climate conditions present significant threats. In this scenario, 25 out of 37 sites are exposed to hydrological risk, while 27 face above-average climate change impacts.

One of the most effective tools is the site matrix, which visualizes site-level trends and relationships between key indicators. By plotting parameters on the x- and y-axes, it becomes easy to identify patterns and correlations. In this example, we’ve selected the Mean Species Abundance (MSA) and pollinator abundance, both highly relevant for the agri-food sector being tied to the pollination service a critical ecosystem function. The graph reveals a clear correlation between these two indicators, offering insights into biodiversity health across sites. This type of visualization helps assess whether it’s appropriate to allocate more space for biodiversity or initiate regeneration efforts at specific locations. Other indicators, such as hydrogeological risk or flood exposure, can also be analyzed depending on your priorities. Each point on the graph represents an individual site, allowing for quick identification and selection once a priority site has been determined.

In the specific site view, the XNatura environmental platform immediately presents a map. This is intentional, as it aligns with the TNFD LEAP approach - Locate, Evaluate, Assess, Prepare - which, as previously discussed, ensures consistency with major international frameworks for nature-related risk management. On the map, the site perimeter is highlighted in pink, while the white boundary represents a 5x5 km control area. This visual setup makes it easy to analyze the site in context and its surrounding environment.

Different data layers can be activated to provide deeper insights. For example, the Land Cover layer shows land use across the area - which in this case is uniform and agricultural. When viewing the hydrogeological risk layer, it's clear there are no significant flood risks: the area is relatively flat, not near major rivers or mountains, with most of the zone rated at level 2 (low risk), and only a small section in the control area rated level 3. Below the map, geographical and contextual data are provided. The site is located in the São Paulo region of Brazil, and the panel includes information on biome typology, the production process, site activity, and regulatory context. All this content can be edited using AI assistance, reviewed by one of our nature strategists, or manually modified by the user to reflect specific operational needs.

The Highlights section provides a clear, structured overview of the site's environmental status, aligned with the ESRS framework. Key indicators such as E1, E2, E3, and E4, including biodiversity, are displayed in a user-friendly layout that supports CSRD compliance. Impacts and dependencies are shown in a simple, automatically generated table, with each item linked to site-specific production processes. In this example, where only mixed farming is present, data is sourced directly from the Encore database. The table is fully editable: if new observations arise - such as the appearance of invasive species - values like intensity or irremediability can be manually updated. An integrated AI assistant is available to support edits, and a strategist team can review changes to ensure alignment with field data and reporting standards.

The core section of the platform is represented by the environmental metrics. These consist of science-based, standardized, and comparable indicators that offer ready-to-use data for reporting purposes. As previously shown on the map, land use data is already available. Notably, the coverage of natural habitats within the site is very low, particularly when compared to the surrounding control area. The site registers a value of zero, while the more natural control area reaches a value of 95. In this specific context, the absence of nearby lakes, rivers, or seas renders certain distance-related indicators less relevant. Nonetheless, the stark contrast in natural habitat coverage remains a valuable signal for assessing the site's ecological integrity and for identifying areas with potential for biodiversity regeneration.

In the microclimate section, data shows a notable temperature increase at the site over the past decade, estimated at approximately +0.35°C. Of particular importance are the future climate projections, which enable comparison across different IPCC scenarios. Although the projections show limited variation between scenarios, the overall outlook remains concerning, with continued warming expected. Precipitation trends also require close attention. Rainfall has already declined significantly and is projected to remain low, posing potential risks to agricultural productivity. This reduction in rainfall may lead to increased operational costs if intensified irrigation becomes necessary to maintain yields. On a more stable note, aridity levels currently appear unchanged, indicating that while environmental conditions are becoming more challenging, they have not yet reached extreme levels of dryness.

One of the most significant biodiversity metrics presented is the MSA (Mean Species Abundance). This indicator measures both the richness and distribution of species within a specific area, in comparison to a fully natural, undisturbed ecosystem. The MSA scale ranges from 0 to 100, where 100 represents pristine conditions and 0 corresponds to a fully human-altered habitat. In this case, the site records a very low MSA value of 10, indicating a severely degraded level of biodiversity. By contrast, the surrounding control area reaches a score of 73, suggesting a considerably healthier ecological condition. Even the industry benchmark surpasses the site’s performance, underlining the urgency for targeted biodiversity restoration efforts.

Improving the MSA has been identified during the prioritization phase as a key factor in enhancing pollination services, which are essential for site productivity. To assess potential improvements, the scenario analysis function within the platform is used. The process begins by defining specific targets. Once targets are set, conditions can be simulated to evaluate expected outcomes. In this example, a regeneration scenario for part of the field has been prepared to assess its effects on biodiversity and pollinator abundance. The simulation results immediately show a significant increase in MSA, indicating positive impacts from the proposed restoration measures.

Before analyzing metrics, the map view is used to select the Land Cover layer and visualize land use changes from the regeneration effort. In this scenario, part of the field was allocated to natural wastelands (shown in white), and natural buffer zones were added along the borders, including loamy, semi-natural areas within the durum wheat crop region. With this setup, the platform journey continues using the regenerated version of the site. While parameters like climate projections remain unchanged, the MSA shows significant improvement, reflecting better biodiversity conditions. This creates several practical opportunities. One example is the potential integration of honey production into the business model. The increased pollinator abundance could justify installing beehives or using pollination sensors to monitor ecosystem services. This type of analysis supports the identification of nature-positive strategies with environmental and economic value.

The risk section of the platform provides an overview of potential environmental threats. In our case, the data indicates a very low probability of high-intensity events occurring over the next two years at the site. However, historical records show that flood events have occurred in the region, which remains a consideration for long-term planning. The same applies to landslide and erosion risks, not currently significant, but still worth monitoring depending on future land use or weather patterns. Air quality data can be requested if needed, especially for crops sensitive to pollutants. As for soil temperature, current conditions are stable and not considered critical, but it’s something that can be tracked if high heat becomes a stress factor for specific crops. Light pollution is not relevant here, given the site’s distance from urban areas. Overall, while risk levels are low at present, the platform allows for ongoing monitoring and adaptation as needed.

The Scenario section allows for direct, structured, and visual comparison of all previously created scenarios. In this instance, two specific scenarios are compared: the initial intensive version and the extensive regeneration scenario previously explored. Clear differences are observable across several key indicators, including MSA, pollinator abundance, nectar potential, soil impermeability, and others. This side-by-side comparison facilitates the assessment of the ecological and functional impact of each land management approach, providing valuable insights for both environmental performance and business planning.

In this demo, no active IoT sensors are installed on the field, but a real case from a farm in Italy illustrates the process. On the map, Spectrum sensors are clearly visible. In the dedicated section, a complete record of detected pollinator clusters is available. Spectrum does not identify individual species but classifies pollinator clusters, which is sufficient for biodiversity monitoring. The emphasis is on abundance and richness, aligned with ecosystem service assessment rather than species-level taxonomy. A particularly valuable feature is the visualization of pollinator activity over time. In this case, the data represents one week of monitoring. Pollinator presence can be correlated with temperature and precipitation trends, providing insights into how environmental conditions affect pollinator behavior - an essential factor for ecological management and agricultural planning.

The platform offers the ability to automatically generate sustainability reports using AI. These reports are produced quickly and efficiently, while being reviewed by Nature Strategists to ensure alignment with specific user needs. This functionality is particularly useful when preparing data for disclosure, as the reports are fully aligned with CSRD requirements, follow ESRS standards, and are TNFD-compliant. It serves as a practical solution for streamlining sustainability reporting without compromising accuracy or quality.

A case study developed in collaboration with the partner XFarm is now presented, focusing on the company Colussi, which has demonstrated commitment to regenerative agriculture. The initiative was carried out jointly with XFarm and involved two model farms located in the Umbria region, covering a total area of approximately 300 hectares. The objective of the project was to explore and implement nature-positive practices aligned with the principles of regenerative agriculture, integrating both technological tools and field-based strategies to enhance environmental and operational outcomes. To provide further insight into the activities and results achieved during the collaboration, Maura will now join the stage and share additional details about the joint work and the key learnings that emerged throughout the process.

There is currently no single, universally accepted definition of regenerative agriculture. However, it is widely understood as a holistic approach that involves a set of practices aimed at building resilience at the farm level. Unlike conventional systems, regenerative agriculture focuses not just on maintaining, but on actively improving soil health, enhancing biodiversity, and strengthening ecosystem services, all while ensuring productivity and economic viability for farmers. At the core of this model is the soil, viewed not as an inert substrate, but as a living system that requires ongoing care, regeneration, and monitoring. Practices such as cover cropping, rotational grazing, crop rotation, and minimal tillage play a key role in improving soil structure and fertility, ultimately supporting more sustainable agricultural production.

XFarm Technologies supports farmers and companies such as Colussi in advancing more sustainable production and supply chains. This is achieved through the provision of a digital ecosystem designed to enhance farm management across multiple dimensions. A key strength lies in the ability to offer a fully integrated platform that brings together a wide range of tools in a single environment. Among these is an advanced Farm Management Information System, which centralizes farm data and supports agronomic decision-making through dedicated decision support systems. In addition to core management functionalities, the platform includes features specifically developed to address sustainability. The Sustainability Assessment Module enables automated reporting on four key environmental indicators. A dedicated module for regenerative agriculture is also available, allowing users to track farming practices, monitor soil metrics, and assess the environmental impact of those practices over time.

Colussi, a well-established food brand with a strong commitment to sustainability, is engaged in a pilot project aimed at supporting a regenerative transition within its supply chain. The initiative was developed in collaboration with the group and focuses on the implementation of regenerative practices across selected agricultural sites. Two model farms were chosen based on their readiness to adopt an experimental and forward-looking approach. These farms are now involved in a five-year pilot program designed to test, monitor, and scale regenerative agriculture methods within Colussi’s broader farming network.

The project currently covers a total area of 120 hectares, distributed across eight fields. From the very beginning, we carried out soil sampling and analysis to establish a baseline, measuring the initial levels of soil organic carbon. Over 50 soil samples were collected to ensure a reliable assessment at time zero. In collaboration with the two participating farms and a team of field agronomy experts, we also conducted a series of training sessions, both in-person and online, designed to work directly with the farmers in identifying and selecting a tailored set of regenerative practices to test within their specific operational and environmental contexts.

The adopted methodology is based on a bottom-up approach, aimed at actively involving farmers in the decision-making process regarding the selection of regenerative practices to be implemented. The project, both in collaboration with Colussi and in a broader context, prioritizes practical engagement over mere compliance or certification. The central focus is on understanding how regenerative agriculture can improve farmers’ resilience over time. The long-term objective is to scale this experience and extend the benefits of regenerative practices to other farms within the supply chain, contributing to a widespread transition toward more sustainable agriculture.

The approach is structured around two main pillars: soil management and functional biodiversity. In terms of soil management, the focus is on diagnostic monitoring and the implementation of best practices, supported by digital tools and agronomic expertise. Regarding biodiversity, the objective extends beyond species counting to understanding how biodiversity contributes to ecosystem services. This is where the collaboration with 3Bee plays a central role, becoming an integral part of the project’s development and implementation.

To conclude the Colussi case study, IoT sensors were deployed in the fields to monitor pollinator activity, generating valuable insights into the effectiveness of the regenerative agricultural practices in place. The data collected supports informed decision-making by assessing the impact of these practices on both biodiversity and farm productivity. For further details, the white paper related to this webinar is available for download on the official website. Additional white papers are also accessible, covering topics such as real estate, the energy sector, and a general overview of the platform.

From September 8th to 10th, the 3Bee | XNatura team will attend the Regenerative Agriculture Summit Europe in Amsterdam—an essential event for professionals interested in agriculture and regenerative practices. Later in September, the team will also join an energy-focused event in Zurich, presenting alongside the customer Cubico. While the event’s main focus is energy, it offers a valuable opportunity for networking and cross-sector dialogue. Finally, in early October, the 3Bee | XNatura team will be present at Economist Impact’s Fifth Annual Sustainability Week in Amsterdam. To stay informed about all updates and upcoming events, it is recommended to join the official Telegram channel.