Accelerating decarbonisation across the farming supply chain
- July 04, 2025
- Case studies
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Source:
©2025 This case is extracted from mentioned sources by GoCrackIt and this is used as the basis for learning, class discussion & education rather than to illustrate either effective or ineffective handling of any entity/ management. This case can not be copied and circulated without the explicit permission of GoCrackIt.
Problem:
AGCO Corporation is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology. It operates manufacturing sites across Europe, Asia, South America, and the US, selling under the Fendt, Massey Ferguson, and Valtra brands. The global company is on a mission to revolutionize farming and significantly cut down its environmental footprint, with ambitious goals to slash its Scope 1 and 2 emissions 55 percent by 2033 and 90 percent by 2050.
However, achieving these goals presents significant challenges. The agricultural sector, while crucial to global food production, is a major contributor to greenhouse gas emissions. AGCO must balance the need for decarbonization with maintaining operational efficiency, cost-effectiveness, and product innovation. AGCO faces key questions: How can it streamline carbon accounting to track emissions more efficiently? What tools and strategies can help automate the identification of cost-effective decarbonization measures?
Solution:
To enhance its decarbonization efforts, AGCO implemented an AI-powered carbon accounting system integrated with its existing cloud solutions platform. This system leverages machine learning, advanced analytics, and automation to process vast amounts of emissions data efficiently. By converting raw data from multiple enterprise resource planning (ERP) systems into structured insights, the technology provides AGCO with an accurate, granular carbon baseline, significantly reducing manual effort and improving data consistency.
A key feature of this system is its ability to generate marginal abatement cost curves (MACCs) with unprecedented speed and precision. These curves compare the cost and emissions impact of different decarbonization strategies, enabling AGCO to identify the most cost-effective initiatives. Additionally, a user-friendly web interface allows executives to access real-time emissions data, track progress, and make informed decisions about sustainability investments.
Impact: A More Strategic and Efficient Decarbonization Process
By leveraging AI-powered automation, AGCO has significantly improved emissions tracking, reducing the time required for insights from eight weeks to just one. The system has helped identify a 10% cost reduction in achieving decarbonization targets while enhancing transparency and decision-making. These innovations position AGCO as a leader in sustainable agriculture, accelerating its transition to a low-carbon future.
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