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Kernel, the world's largest producer and exporter of sunflower oil, has announced the completion of the world's first commercial sale of sunflower oil carrying a verified reduced carbon footprint. The transaction, disclosed on Wednesday, September 2, included a climate premium paid by the buyer — a global multinational corporation pursuing a net-zero strategy.
Rather than purchasing carbon offsets on the open market, the buyer acquired a physical product grown with a measurably lower environmental impact from the outset. Kernel achieved the reduction directly during production and across every stage of the supply chain, an approach the company frames as a fundamental shift in how the edible oil value chain is decarbonized.
'This deal proves that we can not only implement relevant practices in production, but also confirm the result with calculations and convert it into commercial value. We are already working on scaling up the project to be able to offer such solutions to a larger number of clients and support their climate goals,' said Marta Trofimova, Head of Sustainability at Kernel.
The carbon footprint reduction is delivered across three key stages. At the field level, Kernel employs a system that calculates the carbon footprint of sunflower crops at the individual field scale, taking into account soil composition, weather conditions, crop rotation, and cultivation techniques. This allows the company to identify fields where sunflowers can be grown with the lowest climate impact, building low-carbon supply chains from the ground up.
In the second stage, Kernel ensures transparent traceability throughout the chain — from the lowest-carbon-footprint fields, through elevators, to the processing plant — confirming the specific origin of each batch and the corresponding volume of greenhouse gas emissions avoided. In the final stage, Kernel's processing plants run on electricity from renewable sources, further reducing atmospheric emissions.
The climate premium itself is calculated on the basis of verified emissions reductions and prevailing carbon market prices, reaching $100 or more per metric ton of CO2 equivalent. To automate calculations, maintain compliance with international standards, and scale up its offering, Kernel has partnered with US-based agricultural technology firm Regrow.
Kernel noted, however, that the global market for low-carbon agricultural products remains in its early stages of development.
The company is a heavyweight in the global oilseed trade. Kernel accounts for approximately 10% of global sunflower oil exports and is also a leading Ukrainian grain exporter and a major operator of agricultural logistics infrastructure. Founded in 1995, the company shipped 8 million tonnes (8.8 million tons) of agricultural products to international markets in financial year 2025. Its shares have been listed on the Warsaw Stock Exchange since November 2007.
Source: Kyiv Post