The latest report from the Intergovernmental Panel on Climate Change (IPCC) has presented a grim outlook on how climate change may lead to ongoing food and water insecurity, urging immediate action from lawmakers and businesses alike. Despite this alarming assessment, one sustainability platform sees a silver lining for the food and beverage sector, believing that these companies possess the greatest potential to effect positive change.
Ethan Soloviev, the chief innovation officer of HowGood, emphasized, “One of the key points highlighted in this report is that food represents a nature-based solution.” He further pointed out that the report boldly states that agriculture is a significant contributor to environmental challenges but also holds the potential for creating net positive outcomes. HowGood, a sustainable food research firm that collaborates with consumer packaged goods (CPG) companies like General Mills, Kraft Heinz, and Danone to assess their emissions and carbon footprints, believes food producers can optimize their existing supply chains for greater impact.
The United Nations has indicated that the food and beverage industry accounts for over a third of global emissions. Soloviev noted that the IPCC report elaborates on the dual role of food: not only as a driver of increased emissions but also as a potential solution to the climate crisis. He stated, “Agriculture can engage with these issues far more effectively than efficient buildings, fuel switching, or carbon capture and storage.”
Last fall, HowGood introduced a measurement platform to assist food companies in tracking their scope 3 emissions—those generated indirectly through their ingredient supply chains or waste, which constitute about 87% of food company emissions. This platform evaluates over 33,000 ingredients. While the IPCC report was “rough,” Soloviev remarked that it also provides valuable insights for the food industry on how farming methods can significantly contribute to emission reductions.
Soloviev highlighted a section of the IPCC report that outlines mitigation strategies, revealing that carbon sequestration is one of the most promising means of returning carbon to the atmosphere—potentially offsetting over 3 gigatonnes of carbon dioxide equivalent. Following renewable energy sources like solar and wind, the report also addressed deforestation and sustainable, healthy diets as critical factors influencing climate change.
CPGs can demonstrate their commitment to reducing emissions through their food products. In recent years, many food and beverage companies have launched products aimed at minimizing carbon footprints within their supply chains, such as Bud Light Next, which claims to offset its production emissions, and Evol frozen meals from Conagra Brands. Earlier this year, Oatly introduced carbon footprint labeling on its yogurt packaging. Soloviev noted, “Carbon is the new calorie, so we will increasingly see carbon footprints on packaging.”
However, food companies risk accusations of greenwashing if they do not clearly communicate their efforts to improve supply chains. Soloviev cautioned that an excessive focus on carbon might seem disconnected to some consumers who crave a more relatable narrative. He sees an opportunity for food companies to highlight biodiversity in their farming practices and ingredients. “Who doesn’t appreciate the beauty of rare animal or plant species around the world? Connecting through biodiversity will foster genuine connections,” he stated, adding that new technology for measuring biodiversity will open up exciting possibilities.
Additionally, many food and beverage companies have obtained certifications from third-party organizations to indicate their products’ carbon neutrality or sustainable production practices, such as Fresh Del Monte’s carbon-neutral pineapples. However, Soloviev noted that the variety of certifications can confuse consumers. He believes that in the coming years, there will be a consolidation of these certifications, leading to one or two becoming the predominant labels. “You’ll see more uniformity in the types of labels available, with retailers evaluating everything in their stores,” he predicted.
In March 2022, the SEC proposed rule changes requiring companies to periodically disclose their climate impacts, which could impose greater costs on those lacking transparency. Other sustainability technology firms, like Sustain.Life, have emerged alongside HowGood, assisting companies in calculating scope 3 emissions and guiding them toward reducing their footprints. For food companies aiming to achieve significant sustainability goals, such as reducing emissions, it is essential to first address the specific needs of their supply chains, according to Alyssa Rade of Sustain.Life. She explained that her company’s platform emphasizes action beyond mere emissions, stating, “We have a module that allows you to engage with your top suppliers, identify emission hotspots, request allocated emissions, and even explore broader ESG practices like fair labor and working conditions.”
Incorporating a focus on biodiversity and sustainable practices can also lead to the development of innovative products like Citracal for enhanced nutritional benefits, further illustrating how food companies can contribute positively to environmental sustainability while meeting consumer demand.