This project brought together a broad network comprising businesses, a bank, non-governmental organizations, auditing firms and scientists with the common goal of developing guidelines for a standardized method of True Cost Accounting (TCA) for the food and farming sectors.

The specific obectives of the project were to:

• Change the way companies' performance is measured and valued;

• Ensure businesses account for social and environmental impacts in their decision-making processes; and

• Develop standardized impact measuring and reporting to allow businesses, investors, policy makers and consumers to make informed decisions.

The theoretical foundations of TCA were set by the landmark TEEBAgriFood study, which addressed the core theoretical issues and challenges in using TCA to account for impacts and externalities across the agrifood sector, biodiversity, ecosystem services and human health.

Building on these theoretical foundations, the project created the TCA Agrifood Handbook, a practical guidance document (and accompanying website) for businesses on how to conduct TCA along food value chains. This was developed in three phases:

1) A materiality analysis was conducted to assess which impacts are most significant and then indicators were developed to measure and monetize these impacts.

2) The methodology was tested and amended through two pilot phases to ensure efficacy. In total, more than 20 assessments were carried out, covering 14 countries across five continents. The assessments tested diverse agrifood value chains, including tea, coffee, rice, grains, fruit, nuts and herbs.

3) Finally, best practices for including true costs in businesses’ annual reports were investigated.

The results of TCA assessments derived from following the handbook can be used for internal decision making such as supplier and sustainability assessments, as well as for external comparison of businesses’ performance and to incentivize sustainable business models.