True Cost Accounting

Blockchain pricing tool for a more sustainable food industry
What does a food product really cost? If all aspects of impact on the UN 17 Sustainable Development Goals relating to production, transportation, and consumption is included, the price might vary from what expect. New prototype aims to create a more sustainable food industry.
What: A prototype of a new tool for pricing of fast-moving consumer goods such as food, that includes the total sum of externalities (impact) such as ecological footprint, social considerations based on indicators from the UN 17 Sustainable Development Goals. The prototype uses blockchain technology to collect all data relating to product costs from the entire value chain and integrates Life Cycle Analysis as a method.

Who: The prototype was initiated at the AMB17ION-seminar in 2017 by a working group consisting of Jakob Raffn (Ph.D., University of Aarhus,  WiciLCA), Michael Zwicky Hauschild (DTU), Mikkel Klougard (Velux Foundations), Thomas Roland (COOP) and Chora Connection. Experts were invited to participate in several Chora Connection facilitated Q5 workshops as to contribute to the development of the prototype.

Goals: To create a sustainability pricing tool to be used in the food industry, as to promote a more sustainable industry and more conscious consumer behavior, by considering all aspects of the production and consumption impact on climate and the UN 17 Sustainable Development Goals.

Role: Chora Connection facilitated the prototype by hosting Q5 seminars and workshops throughout 2017, where experts and key actors developed the prototype.

Results: The initial phase of the prototype is complete. An extended working group decided to further develop the prototype by testing a version at the Isle of Samsø.

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True Cost Accounting is the process by which the full costs and benefits of different food and farming systems are identified, quantified and made transparent with the aim of ensuring that in the future these are fully reflected in the cost of production for farmers, including the prices they receive for their product and the affordability of food for consumers and in relation to their impacts on the environment and public health for society as a whole –Lexicon of Food