As concluded by the consortium partners on an initial exploratory assessment (Phase 1), RA may be best seen as an outcome-based approach instead of a practice-based approach, since practices do not always deliver the same outcomes as practices used in another context. This means that several practices (alone or in combination) may lead (or not) to the desired outcomes (or impacts). Those water-related outcomes rely heavily on local conditions, like climate and soil type, but also on management and time since implementation. On the other hand, while RA is limited to agronomic practices implemented at the farm level, the impacts would extend out of the limits of the farm, and therefore the impact assessment should be done at both farm and watershed levels, in order to understand better the water co-benefits of large-scale RA adoption. To do so, a two-fold monitoring protocol, by the combination of a set of reference farms (intensive monitoring) with the use of Nestlé’s Farm Assessment Tools (FAT) to collect data from multiple farmers was proposed. The combination of these two can be used to provide insight into impacts of the practices at the farm and watershed scale. However, the two-fold monitoring protocol proposed as a result of Phase 1 cannot be considered as an Impact Assessment Framework yet and further development is required. Up to this, the two-protocol has not been tested under real conditions, which is an essential step for its validation.
Aiming to develop and validate an Impact Assessment Framework to evaluate whether RA practices can lead to potential water co-benefits and how these benefits can be monitored, quantified and predicted in the long term, the following research questions for (Phase II of) the project have been identified:
1. What are the expected outcomes of RA at the farm scale in terms of water quantity and quality for selected commodities (i.e. dairy or coffee). Here, a differentiation will be made between:
a. Outcomes that can already be assessed based on existing evidence and literature.
b. Outcomes that need mid/long term validation, using a monitoring approach in selected reference farms , in combination with modeling tools.
2. How a reference farm would look like and what are the most relevant selection criteria (co-design process)?
3. What are the most relevant indicators to monitor and quantify and how those indicators should be measured (monitoring framework) at :
a. farm level (reference farms or early adopters)
b. watershed level (when a certain amount of adoption is reached)
4. Are the available modeling tools within the PPP capacities able to predict those impacts in the long term (including what if scenarios)? If not, what should be developed?
5. How can all this information be integrated into a water-specific Impact Assessment framework?

The motivation behind this project lies in addressing critical challenges related to water and agriculture. This project aims to understand and enhance the positive water-related effects of regenerative agriculture, contributing to sustainable food systems and water security.

Nestlé aims to achieve net zero emissions by 2050. As part of their strategy, they promote Regenerative Agriculture (RA) to reduce greenhouse gas emissions. RA not only minimizes environmental impact but also enhances ecosystem services and biodiversity. Despite RA’s benefits, its impact on the water cycle remains unclear. To address this, Nestlé and Wageningen Environmental and Research (WEnR) launched an initiative in 2022 to quantify the effects of regenerative agricultural practices on water systems. The explorative assessment conducted in 2022 revealed that RA significantly impacts the water cycle. However, quantifying these effects depends on local factors such as commodities, climate, and soil practices. To assess outcomes and measure water co-benefits, a clear Impact Assessment Framework is essential. This framework will help translate RA’s impact into quantifiable and verifiable water benefits. Beyond the farm level, RA’s impact on the water cycle should be evaluated at the watershed level. Considering heterogeneity and water-related risks is crucial when scaling up to multiple farms.
Nestlé and WEnR plan to continue their collaboration in Phase 2, further developing and testing the Impact Assessment Framework across various commodities and regions.

'- An initial scoping study was done (phase 1), concluding that:
a) RA may be best seen as an outcome-based approach instead of a practice-based approach. This means that several practices (alone or in combination) may lead to the desired outcomes (or impacts).
b) RA outcomes (or impacts) rely heavily on local conditions, like climate and soil type, but also on management practices and time since implementation (long term).
c) Although RA is limited to agronomic practices implemented at the farm level, the outcomes (or impacts) would
extend out of the limits of the farm (watershed level).
- Two value chains has been prioritise for testing the Impact Assessment Framework: coffee and diary. Several reference farms will be selected to represent different agroecological regions and production systems. For this, the project will collaborate with other existing initiatives of the consortium.
- A set of potential water related indicators has been already identified

Several international organisations are promoting the RA approach (and/or practices) as part of their strategies to improve the current food systems. RA should therefore be monitored, and their outputs quantified through the use of comprehensive frameworks to assess progress towards sustainability goals. Several frameworks and tools are already available or under development for doing so. However, most of them are mainly focused on assessing the impacts of RA on carbon sequestration or soil biodiversity, while water, an essential component for food production (and linked to the aforementioned mentioned topics) is usually missing or not properly evaluated. Only by using an Impact Assessment Framework which provide a good understanding of the main water-related risks existing locally will allow us to understand if the farming practices are sustainable in the long term. The framework would be also integrated with tools (models) able to predict what would be long term effects of RA practices on the water cycle and assess “what if” scenarios to design the best combination of practices to reach the desired outcomes.

The overall project strives to create synergies between existing Nestlé’s sustainability policies and work frames on Climate, Regenerative Agriculture, Responsible Sourcing and Water Stewardship (including access to water and sanitation for communities). By doing so, Nestlé aims to embed water stewardship within its value chain. Therefore, by quantifying the effects of the implementation of the RA practices on the water cycle through a verifiable and robust Impact Assessment Framework, Nestlé will be able to understand the long-term impact of their RA strategy on water and how it fits with their global sustainability goals.

The consortium agreement will enter into a cooperation agreement that meets the requirements of the regulation