Key terms explainer V2

The Sustainability Assessment of Foods and Diets (SAFAD) v1.99 database includes data on primary food production and transport (e.g. of animal feed), including inputs (e.g. seeds, fertilizer, energy) and outputs (e.g. emissions, pollution) from their source up to the farm gate. In the SAFAD database, some data is already provided on the impact level (e.g. GHG emissions are already given as carbon dioxide equivalent) and is used as is, while data that records inputs and outputs is combined with characterization factors from the ReCiPe 2016 LCIA to calculate impacts. For example, SAFAD gives data on nitrogen and phosphorus input to soil, and the phosphorus is translated into nitrogen-equivalent to calculate marine eutrophication impact.

The damage costs monetization approach, developed by CE Delft, calculates the costs of damage done to the environment or human health by agricultural production via two cost categories:

• Restoration costs (incurred to restore a system to its initial state or a defined target state; for example, afforestation after land use change)
• Compensation costs (incurred to reimburse society for the economic or non-economic burden of the environmental impact caused by production or consumption processes)

For the impacts considered in the True Costs of Food Database, the 2021 CE Delft monetization factors have been inflated to 2023 levels.

The rights-based monetization approach, developed by True Price, calculates the costs of impacts based on how they infringe on human rights, fundamental labour rights, and environmental rights. One or more of the following cost categories is used, depending on what is applicable to the impact being monetized:

• Restoration costs (for returning affected resources to a state comparable to the state they were in before they were negatively impacted; e.g. reforestation)
• Compensation costs (financially compensating affected people for harm they have experienced; for example, the harm of forced child labour)
• Prevention of re-occurrence costs (preventing future reoccurrences of a negative impact; e.g. by introducing regular human rights audits into a supply chain)
• Retribution costs (government fines or penalties for violating, e.g. environmental-protection laws)

For the impacts considered in the True Costs of Food Database, restoration costs are applied to GHG emissions, eutrophication, and water consumption, while compensation costs are applied to human health and ecotoxicity impacts.