Big Food’s Net Zero Promises: Are They on Track?

The global food industry, a cornerstone of human civilization, is also a significant contributor to greenhouse gas emissions (GHG). From farm to fork, the processes involved in producing, processing, transporting, and consuming food release vast quantities of carbon dioxide, methane, and other harmful gases. With the growing urgency to combat climate change, many large food and beverage companies, often referred to as “Big Food,” have announced ambitious pledges to reach net-zero emissions. But are these promises translating into real action, and are they enough to meet global climate goals?

The Scope of the Challenge

The food system is responsible for approximately a third of global greenhouse gas emissions. This encompasses a complex web of activities, each with its own carbon footprint. To understand the challenge, it’s crucial to understand the concept of emissions scopes. The Greenhouse Gas Protocol categorizes emissions into three scopes:

• Scope 1 Emissions: These are direct emissions from sources owned or controlled by a company. Examples include emissions from company-owned vehicles or manufacturing facilities.
• Scope 2 Emissions: These are indirect emissions from the generation of purchased energy, such as electricity, steam, heating, and cooling.
• Scope 3 Emissions: These encompass all other indirect emissions that occur in a company’s value chain, both upstream (from suppliers) and downstream (from the use and disposal of products). Scope 3 emissions are often the most substantial for food companies, making them a critical focus for reduction efforts.

Food production has a substantial environmental impact. Activities such as deforestation for agriculture, fertilizer use, and livestock farming contribute significantly to emissions. The transportation of food products across vast distances also adds to the carbon footprint, while food waste generates methane, a potent greenhouse gas, as it decomposes in landfills. Furthermore, energy-intensive processes like food processing, refrigeration, and packaging all contribute to the industry’s overall emissions.

Big Food’s Net Zero Commitments

Many major food and beverage corporations have publicly committed to net-zero emissions targets, typically by 2050. Some have even set more ambitious interim goals. Here are a few examples of the pledges made by some of the biggest players in the industry:

• PepsiCo: Aims to cut absolute GHG emissions across its value chain by over 40% by 2030, including a 75% reduction in emissions from direct operations and to achieve net-zero emissions by 2040. These targets are based on a 2015 baseline.
• Mondelez: Committed to a 2050 net-zero emissions target across its full value chain in November 2021 and plans to set time-bound interim goals in line with limiting global warming to 1.5°C under the Paris Agreement.
• Kraft Heinz: Pledged to achieve net-zero GHG emissions across all three scopes by 2050, with a milestone target of a 50% reduction across all three scopes by 2030.
• Lindt & Sprüngli: Targets intermediate carbon reductions of 42% (Scopes 1 and 2) and 30.3% (Scope 3) by 2030 and reaching net-zero by 2050. The company notes that 95% of its emissions come from Scope 3 activities.
• JBS: Plans to invest over $1 billion in emission reduction projects over the next decade and eliminate deforestation from its supply chain by 2035. JBS also aims to cut its global Scope 1 and Scope 2 emission intensity by at least 30% by 2030 and use only renewable electricity in its facilities by 2040.

These are just a few examples, with many other companies, such as Unilever, Nestle, Danone, and McCain also having set net-zero targets. However, the devil is in the details, and setting ambitious goals is only the first step.

Challenges on the Road to Net Zero

Despite the commitments, the path to net-zero is fraught with challenges for the food industry. These challenges include:

• Complex Supply Chains: Food companies often have extensive and intricate supply chains that span across numerous countries and involve a vast network of suppliers. Scope 3 emissions, which originate from these supply chains, are difficult to measure, monitor, and control. Many companies have dozens of suppliers in different sectors that all must comply with renewable energy targets.
• Agriculture Emissions: A significant portion of the food industry’s emissions come from agricultural activities, including livestock farming and fertilizer use. Reducing emissions from these sources requires a fundamental shift in agricultural practices, which is difficult to implement rapidly. Methane emissions from livestock and nitrous oxide emissions from fertilizer application are particularly challenging to address.
• Energy Consumption: The food industry is energy-intensive, with substantial energy use in food processing, refrigeration, and transportation. Transitioning to renewable energy sources and optimizing energy efficiency are crucial but costly and complex.
• Food Waste: A significant amount of food is wasted at various stages of the supply chain, generating substantial emissions. Reducing food waste requires changes in consumer behavior and improvements in food storage, transportation, and processing.
• Technological Innovation: Achieving net-zero will require large-scale adoption of new technologies for food production, processing, and transportation. Innovation is also crucial for reducing emissions from agriculture, developing alternative proteins, and more sustainable packaging.

Strategies for Emission Reduction

Food companies are exploring various strategies to reduce emissions, including:

• Transitioning to Renewable Energy: Switching to renewable energy sources such as solar, wind, and biogas for their operations and encouraging suppliers to do the same.
• Improving Energy Efficiency: Implementing measures to optimize energy use in manufacturing, storage, and transportation, which may include utilizing heat recovery mechanisms.
• Low-Carbon Sourcing: Sourcing raw materials from suppliers who use sustainable and low-emission practices and increasing the share of recycled materials.
• Sustainable Agriculture Practices: Promoting regenerative farming practices that enhance soil health and sequester carbon, reducing the use of synthetic fertilizers and adopting more sustainable livestock management techniques.
• Reducing Food Waste: Implementing measures to reduce food waste throughout the supply chain, from production to consumption. This includes using innovative solutions such as utilizing by-products of food production for other uses.
• Carbon-Friendly Transportation: Transitioning to electric or hydrogen-powered vehicles for delivery and choosing the most efficient mode of transport for goods.
• Sustainable Packaging: Developing packaging materials that are recyclable, compostable, or made from renewable resources.
• Technological Innovation: Adopting and investing in new technologies that can reduce emissions throughout the food system, such as ultrasonic vacuum drying, smart storage units and blockchain traceability for supply chains.

Are Big Food Companies on Track?

While many Big Food companies have set ambitious targets and implemented some emission reduction measures, there are concerns about the pace and scale of their efforts. Some reports suggest that many companies are far behind schedule and are increasing emissions when they should be reducing them.

Furthermore, some companies rely heavily on offsetting emissions, rather than focusing on actual reductions. Offsetting can be controversial, as the projects used for offsetting may not always lead to the intended reduction in overall emissions. There are also concerns about the lack of transparency and verification in some offsetting schemes.

A major concern is that while many companies have set net-zero targets, they may not be aligning with the scientific targets needed to limit global warming to 1.5°C as set by the Paris Agreement. The Science Based Targets Initiative (SBTi) is a leading organization that helps companies align their emissions targets with climate science. While many companies have engaged with SBTi, some of their targets still do not align.

The Need for Systemic Change

Achieving a net-zero food system requires systemic change. This includes not just actions from food companies, but also changes in government policies, consumer behavior, and investment strategies.

Governments need to implement policies that support sustainable agriculture, promote renewable energy, and reduce food waste. Consumers need to adopt more sustainable diets, reduce their food waste, and support companies that are committed to sustainability. Investors need to channel capital towards companies that are actively reducing emissions and promoting sustainable practices.

Conclusion

The food industry has a critical role to play in addressing climate change. While many Big Food companies have made commitments to reach net-zero emissions, the challenge is immense, and progress is slow. Achieving a sustainable food system will require a fundamental transformation in how we produce, process, and consume food. It is imperative that companies, governments, and consumers work together to accelerate the transition to a more sustainable food future.