Four companies across the organic dairy supply chain have joined forces to reduce greenhouse gas emissions at the farm level. Organic Valley, Stonyfield Organic, UNFI and Whole Foods Market are collaborating to launch Verified Impact Units, or VIUs, derived from carbon insetting across the U.S. organic dairy supply chain.
The initiative, built around Organic Valley’s Carbon Insetting Program, spans every link in the supply chain – from family farms to manufacturers to distributors to retailers.
What Is carbon insetting?
The program centers on a concept that distinguishes it from more common carbon offset strategies. Carbon insetting means investing directly in practices that reduce emissions and promote clean energy use on the farms that produce food, rather than purchasing offsets elsewhere. In practical terms, that means funding on-farm projects that lower the footprint of the products being sold.
On-farm practices supported by the program include solar panel installation to reduce reliance on fossil fuels, feed additives such as essential oils that help cows produce less methane, and manure management systems that further cut emissions.
“When we collaborate across the value chain, we unlock new ways to reduce emissions, meet climate goals, and support the people at the heart of it all – our farmers,” said Jessica Luhning, Organic Valley senior sustainability manager.
A model built for scale
The partners structured the program around VIUs — third-party-verified units that allow each company in the supply chain to claim a share of the emissions reductions generated at the farm level. The model ties distributors and retailers into measurable, transparently reported climate outcomes at the farm level, strengthening their roles in lower-impact, traceable food distribution for climate-conscious retailers and consumers.
UNFI, which distributes to more than 30,000 locations across North America, framed its participation around both climate and operational goals.
“By collaborating with Organic Valley, Whole Foods Market and Stonyfield Organic on this innovative Carbon Insetting Program, we’re working to create solutions that can help lower greenhouse gas emissions and build a more resilient supply chain, benefiting our customers, our suppliers, and the planet,” said Alisha Real, UNFI’s VP of sustainability and impact.
Stonyfield Organic Senior Director of Sustainability and Government Affairs Britt Lundgren pointed to the cross-sector nature of the effort as its defining feature.
“As food companies, we know that the greatest climate impact from our products happens at the farm. We are thrilled to be part of this pioneering collaboration where all of the companies involved – from the farm to manufacturing to distributor to retail – can come together to support farmers in taking action to reduce our shared impact,” Lundgren said. “Together, we’re proving that sustainability efforts can be collaborative and scalable and can help drive real, verified climate action on the farm.”
Whole Foods Market’s parent company, Amazon, also weighed in.
“This initiative represents an innovative new model for producing food that sees stakeholders from across the food system coming together to drive meaningful, measurable change,” said Caitlin Leibert, global head of sustainability at Amazon Worldwide Grocery. “It’s about rethinking how we care for the land and supporting the people behind our food — reflecting the collective effort of farmers, producers, retailers, and distributors who are helping us build a more resilient food system.”
Why it matters for independent retailers
The model has potential implications beyond the four companies involved. By creating a verified, tradable unit tied to farm-level emissions reductions, the program establishes a framework that other retailers and distributors could potentially adopt — giving independent grocers and regional chains a pathway to make credible sustainability claims tied to the products they carry, not just their own operations.
By the time a product reaches a local grocery store, multiple supply chain partners have played a role in bringing it there. The emissions generated at the farms producing the ingredients are part of the climate footprint of every company in that supply chain.
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