How Food Retailers Are Tackling Their Carbon Footprint
Food retailers across the globe are committing to greenhouse gas (GHG) emissions reductions. These targets will have severe implications for the entire value chain.
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• Once the targets have been set, all kinds of stakeholders will demand transparency on progress. Food retailers will be under close scrutiny to meet their reduction targets.
• Retailers will not be able to meet any net-zero targets without their suppliers. On average, less than 5% of food retailers’ GHG emissions are under their direct influence. Scope 3 (value chain) emissions account for more than 95% of their total emissions.
• The vast majority of retailers’ Scope 3 emissions come from the products sold in their stores. Hence, many food retailers have started demanding that suppliers measure their footprint and set their own reduction strategies.
• Retailers aim to achieve their targets by requiring or incentivizing supplier to set their own reduction targets, but also by actively collaborating with suppliers and nudging consumers. All of these strategies have implications for food retail suppliers.