This report introduces True Cost Accounting (TCA) as a comprehensive framework for assessing the hidden costs and benefits of agri-food systems. TCA represents a paradigm shift towards holistic decision-making, incorporating the full range of externalities beyond traditional economic measures. TCA is an essential approach for driving the transition to sustainability by addressing the externalities that contribute to today’s multiple, interconnected crises. The report outlines specific entry points for integrating TCA into decision-making by various stakeholder groups, including policymakers, investors, businesses, and consumers. These entry points include measures such as subsidies for organic farming and sustainable practices, taxes on harmful activities, the establishment of minimum standards for sustainable procurement, and mandatory reporting of externalities. Additionally, this report demonstrates how TCA can complement existing economic performance and accounting methods, providing a more complete assessment of business and economic success by considering all costs and benefits.
Lisa Klaus, Olivia Riemer, Alexander Müller
