Significance Voluntary sustainability standards (VSS) may be an effective way to reduce the negative impacts of agriculture at regional to global scales. Here, we present an approach that highlights the potential of VSS to reduce some of the negative externalities associated with agriculture production. To illustrate this potential, we show that VSS could reduce the global environmental impacts from growing sugarcane. Further, most of this environmental benefit comes from targeting just 10% of production area. To realize these environmental gains, incentives for VSS adoption need to be sufficient to cover the costs of criteria compliance. Determining these costs and public and private-sector mechanisms for efficiently transferring VSS-adoption subsidies to farmers and millers are key future research needs.