Do food and drink do enough to combat climate change?

Climate change has a negative impact on the industry. From floods to droughts, it causes a lot of damage. However, this industry is one of the main causes of climate change. Carbon emissions from agriculture and Food waste in factoriesThe United Nations has estimated that a third (or more) of human-caused emissions are linked to food and beverage production.

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Is the industry doing enough? What more can we do?

Are food and drink doing enough to stop climate change?

No. The industry simply wouldn't have as much impact as it does.

Richard Cope is a sustainability consultant and trends advisor for Mintel. He told FoodNavigator that the industry isn’t doing enough. Many brands are focusing on the low-hanging fruit, such as trying to make packaging more sustainable to attract consumers.

Additionally, efforts to improve packaging sustainability could create more problems than solutions.

Brands make big claims about a product’s packaging being made of paper and there’s a trend towards that material. Cope says it may not actually have the lowest environmental impact. Paper still contributes to land use through forest degradation.

Additionally, the industry misleads consumers by making claims that imply carbon neutral credentials when it actually offsets its carbon emissions.

Cope reports that 64% of consumers surveyed said they would prefer companies to reduce their carbon emissions rather than invest in offsetting schemes.

Brands would be wise to stop using carbon offsets as soon as possible, as the EU has started to crack down on carbon neutrality claims.

Cope says the European Union will ban carbon neutrality claims from 2026, if they are based on some level of offsetting. Brands must take responsibility for their emissions, reducing them where possible and using renewable energy to power electric distribution fleets and lighter, more sustainable packaging.

How can industry reduce its impact on the environment?

Sustainability in the food industry requires a more holistic view, encompassing all aspects of production.

Cope says brands need to consider where their products are sourced. They need to figure out their supply chain from the beginning. “They need to be accountable for it.”

The topic of responsible sourcing has become a major issue in the current climate, as the deadline for submitting the European Union Deforestation Regulation (EUDR)approach.

Cope adds that brands need to prioritize responsible sourcing. “But beyond that, we need to address all phases of the supply chain, including manufacturing and warehousing.”

How can we help food and beverage brands become more sustainable?

To bring about change in the industry, it is important to implement a coordinated approach rather than relying on each step to work alone.

Peter Wortsman is a partner at agri-food consultancy EFFP. He told FoodNavigator that “too many companies are trying to tackle sustainability challenges on their own.” To be successful and resilient, supply chains need to work more closely together.

Brands must also help their suppliers implement the necessary changes.

Wortsman says there is too much emphasis on measuring and reporting information, but not enough on engaging farmers to encourage them to change their farming practices where they have the most potential.

How can manufacturers help suppliers become more sustainable?

“First, there needs to be a greater awareness of the hazards in food and beverage supply chains,” Wortsman says. “The second is to view sustainability as a way to invest in a resilient and profitable future. Brands also need to build direct relationships with producers to help them transition to sustainable practices. This will result in less supply volatility.. »

This is not only a good idea, but it is essential to ensure future food security.

If food and beverage companies want to survive in the long term, sustainability must be a priority.

Consumers care about sustainability

While implementing sustainable business practices can increase costs for brands, consumers are increasingly concerned about climate change.

Mintel's Cope says "smart businesses" know this and don't pass the costs on to the consumer.

However, these increased costs are worth it in the end, as consumer confidence increases.

Cope says that while consumers may not be willing to pay a premium for sustainable brands right now, they will be more loyal to them. If you have two food brands that are both equally delicious, high-quality, and nutritious, but only one of them supports farmers and practices regenerative agriculture, then that’s going to be the difference maker. Brand reputation is one of the biggest reasons companies care about sustainability. “That’s the way the world works, and if you don’t do it, you’re going to get noticed.”

The costs may be higher, but the government is legislating to reward sustainable practices, so the decision made now could be more cost-effective over time.

Cope explains that it will cost money up front, but you will save a lot of money in the end. If I were a drinks company owner, I wouldn’t want to pay huge landfill taxes for packaging that can’t even be recycled. Nor would I want the EU to ban my carbon neutrality claims based on offsets. “The compliance and efficiency issues make perfect financial sense.”

It is also in a brand's interest, as it helps ensure future supplies.

Brands need to ensure they have enough coffee, cocoa and grains in the future. Cope says that to survive in the future, they will need to make their supply chains more sustainable.