From farm to fork: Decarbonising the food supply chain

Food production is responsible for over a quarter (26%) of global greenhouse gas emissions.

While this figure may seem alarming, it’s important to remember that food and drink are essential to human existence. Unlike air travel or the latest smartphone, we cannot simply do without them.

This article explores the key players involved in food production and the strategies available for decarbonisation in the food industry. Understanding the SBTi’s FLAG (Forest, Land and Agriculture) target-setting guidance can further clarify the complexities of emissions in the food supply chain.

Understanding food production emissions

To effectively reduce emissions, it is essential to first understand where and how they are generated. Here’s a brief overview:

• Agricultural practices: The cultivation of crops for human consumption and animal feed, along with livestock domestication, accounts for over 50% of emissions in the agricultural sector. 
• Land use change (LUC): Nearly a quarter of total emissions stem from land use changes, primarily due to deforestation for livestock feed and agricultural products. 
• Processing and distribution: The remaining emissions arise from the processing of agricultural products, transportation, packaging, and trade.

The FLAG framework outlines how food production, land use changes, and agricultural practices contribute to greenhouse gas emissions, with agricultural practices alone accounting for over 50% of emissions in the sector.

Strategies for emissions reductions

So, how can we reduce carbon emissions while maintaining a safe, healthy, and tasty food supply? By applying the FLAG principles, stakeholders can identify key areas for improvement, making food production more sustainable and aligned with climate goals. The food industry consists of three main levels of value creation: farmers, food retailers, and producers, each with unique strategies to tackle climate change.

Farmers

Farmers play a pivotal role in the supply chain, as most emissions originate on farms and can be significantly influenced by their practices. Collaboration with producers can improve soil cultivation, fertilisation, and crop protection. In dairy farming, methane-reducing feed additives and reduced tillage practices help lower carbon footprints and support long-term net zero goals.

Switching to green electricity and electrifying farm machinery are also crucial for cutting emissions. However, carbon-saving measures often bring higher costs, making fair farmer compensation essential. Political support is key; a Potsdam Institute study suggests that a climate tax on food could reduce agricultural emissions in Germany while maintaining social equity.

Food retailers

To begin their climate journey, retailers need a comprehensive carbon footprint to ensure transparency in their own and their supply chain’s emissions. Due to frequent product trading, food retailers often have substantial footprints, particularly in scope 3, requiring close collaboration with purchasing teams and carbon accounting providers.

The EU’s Corporate Sustainability Reporting Directive (CSRD) will soon mandate annual carbon footprint calculations and disclosures for many food retailers. Most European retailers have already set science-based targets aligned with the Science Based Targets initiative (SBTi), which outlines industry-specific pathways for emissions reduction.

Retailers need to set ambitious 5–10-year goals, with a recommended commitment to net zero emissions by 2050. Integrating supply chain emissions (scope 3) is critical, necessitating collaboration with suppliers to drive reductions.

Key strategies for emission reductions include improving store and logistics efficiency with low-emission heating and cooling, using green electricity, and electrifying transportation. Reducing upstream emissions at the producer level is also vital for achieving climate targets.

Producers

Producers, like retailers, need transparency in their emissions through comprehensive carbon footprints. This in-depth analysis identifies hotspots and informs reduction strategies.

While producers can start by addressing emissions in their own production and logistics, scope 3 emissions from purchased agricultural products typically account for the largest share. For example, in the dairy sector, purchased milk is a primary contributor, along with ingredients like sugar and cocoa.

Regional sourcing can reduce transportation emissions, but impacts need careful evaluation—heated greenhouses in Germany, for instance, may have a larger carbon footprint than open-field cultivation in southern Europe, even with transport.

For meat and dairy producers, transitioning to lower-emission, plant-based alternatives offers a key opportunity, driven by evolving consumer preferences.

Driving climate action from farm to fork

ClimatePartner supports the food industry in achieving sustainability goals through tailored solutions. For food retailers, we provide consulting to develop and validate science-based targets, ensuring a clear decarbonisation roadmap. For producers, we leverage detailed activity data to assess emissions, considering critical factors such as energy consumption, the sourcing and cultivation methods of ingredients, and transportation routes.

Are you interested in climate action in the food supply chain?

Please reach out!