Updated: March 4, 2025 by Michael Kahn. Published: March 4, 2025.
In the complex world of food production and distribution, Scope 3 Emissions are reshaping how companies approach sustainability. These indirect greenhouse gas emissions, occurring throughout a company’s value chain, have become a critical concern for food industry leaders as they strive to meet ambitious climate targets and respond to growing consumer demand for sustainable products.
Scope 3 emissions often account for the lion’s share of a company’s carbon footprint, particularly in the food sector. For food producers, these emissions stem from various sources, including raw material sourcing, feed production, transportation, and even consumer usage and waste.
As the urgency to address climate change intensifies, consumers are playing an increasingly pivotal role in pushing companies to prioritize Scope 3 emissions. These sustainability advocates, ranging from eco-conscious celebrities to dedicated environmental activists, are using their platforms to educate consumers and hold brands accountable for their entire carbon footprint.
According to the Climate Disclosure Project (CDP), the average company’s Scope 3 emissions are 5.5 times greater than their Scope 1 and 2 emissions combined (Source).
The food industry’s contribution to global greenhouse gas emissions is significant, with agriculture alone responsible for nearly 18% of global emissions (Source). This reality has pushed many food companies to take a hard look at their entire value chain and develop strategies to reduce their environmental impact, as discussed in Climate Day 2025 at Expo West.
Table of Contents
Key Differences Between Scope 1, Scope 2, and Scope 3 emissions:
| Aspect | Scope 1 | Scope 2 | Scope 3 |
|---|---|---|---|
| Definition | Direct emissions from sources owned or controlled by the company | Indirect emissions from purchased electricity, steam, heat, or cooling | All other indirect emissions in the value chain |
| Control | Direct control | Indirect control | Limited or no control |
| Examples | – Fuel combustion in company-owned vehicles – Emissions from on-site boilers and furnaces – Fugitive emissions from refrigeration leaks | – Electricity used in offices and facilities – Purchased heating or cooling for buildings | – Purchased goods and services – Business travel – Employee commuting – Waste disposal – Use of sold products |
| Measurement Complexity | Relatively straightforward | Moderately complex | Most complex and challenging |
| Typical Proportion of Total Emissions | Usually smallest | Generally moderate | Often the largest portion (up to 90%) |
| Reporting Requirements | Commonly required | Often required | Often voluntary, but increasingly important |
Corporate Climate Action in the Food Sector
Leading food companies are setting ambitious targets to address their Scope 3 emissions. For instance, United Natural Foods, Inc. (UNFI), one of North America’s largest food wholesalers, has committed to reduce its Scope 3 greenhouse gas emissions from purchased goods and services by 25% by 2030 (UNFI Source).
This target, along with others focused on transportation and operational emissions, has been validated by the Science Based Targets initiative (SBTi), demonstrating UNFI’s commitment to credible climate action.
Oatly, a prominent plant-based milk company, has set an intensity-based GHG emissions target to reduce its climate footprint per liter of product by 70% by 2029 (Oatly Sustainability Report). The company’s efforts extend beyond its direct operations, with Scope 3 emissions making up 93% of its total per-liter footprint in 2022.
The burden of addressing Scope 3 emissions in the food industry should not fall solely on farmers, who often operate on thin margins and face numerous challenges. Instead, companies like UNFI are recognizing the need for collaborative approaches that support farmers while working towards emissions reduction goals.
UNFI, a leader in North American wholesale and grocery distribution, has implemented several initiatives to address Scope 3 emissions without placing undue pressure on farmers.
UNFI created the Climate Action Hub to provide tools and resources for suppliers and partners to learn from experts and each other, fostering innovation and scaling climate solutions across the food system.
The UNFI Foundation provides grant funding to nonprofits working to create a more sustainable and equitable food system. UNFI is actively collaborating with suppliers to promote responsible business practices, including regenerative and organic farming.
These initiatives demonstrate a shift towards shared responsibility in addressing Scope 3 emissions. By providing resources, incentives, and support, companies like UNFI are helping farmers transition to more sustainable practices without bearing the full financial burden.
UNFI recognizes that approximately 90% of its carbon footprint comes from its value chain, specifically the goods and services purchased and distributed. This acknowledgment has led to a more holistic approach to emissions reduction, focusing on partnerships and collaboration rather than placing the onus solely on farmers.
Challenges in Scope 3 Engagement
Despite the growing recognition of Scope 3 emissions’ importance, addressing them presents significant challenges. Food producers often work with vast networks of suppliers, making data collection and reporting a complex task.
Engaging suppliers, particularly those in developing regions, can be difficult due to resource constraints and varying levels of expertise in sustainable practices.
The food industry faces unique challenges related to land-use change, with deforestation for agricultural expansion contributing heavily to emissions. Technological gaps and the cost implications of sustainable transitions also pose barriers to rapid progress.
Strategies for Scope 3 Emission Reduction
To overcome these challenges, companies are adopting various strategies.
Collaboration Across the Supply Chain
Building strong partnerships with suppliers to promote sustainable practices is crucial. Companies like Chobani are investing in innovative projects, such as biogas digesters, to convert waste into renewable energy.
Adopting Digital Tools
Platforms like Opteinics enable food producers to measure, model, and optimize their environmental impact, providing actionable insights to identify emission hotspots.
Investing in Regenerative Agriculture
Practices such as cover cropping and reduced tillage can enhance soil health and sequester carbon, addressing emissions at the farm level.
Setting Science-Based Targets
Companies are aligning their goals with initiatives like the SBTi to ensure accountability and progress.
Consumer Education
Empowering consumers to make sustainable choices through transparent labeling and awareness campaigns can drive demand for low-emission products.
Transparency in reporting is a key indicator of a company’s commitment to addressing Scope 3 emissions. Consumers should look for brands that openly disclose their emissions data and, importantly, use primary data from their supply chain rather than relying solely on estimates.
As of 2022, 62% of food companies reporting to the Carbon Disclosure Project (CDP) included some form of primary data, signaling a positive trend in the industry.
Emission reduction efforts are another critical aspect to consider. Brands with clear, science-based targets for reducing Scope 3 emissions demonstrate a serious commitment to sustainability.
For instance, PepsiCo has set an ambitious goal to reduce its Scope 3 emissions by 40% by 2030. Regular progress updates towards these goals are essential, though consumers should be aware that some companies may initially report increases in Scope 3 emissions as they improve their measurement and reporting practices.
Supply chain engagement is a crucial component of addressing Scope 3 emissions. Companies like AB InBev are setting positive examples by actively collaborating with suppliers, such as engaging farmers to promote regenerative agriculture practices.
Consumers should also look for brands investing in innovative solutions, such as renewable energy projects or food waste reduction initiatives.
At the product level, some forward-thinking companies are providing direct information to consumers. Oatly, for example, has implemented carbon footprint labeling on its products, allowing consumers to understand the emissions associated with specific items.
Life cycle assessments, when available, can provide even more detailed insights into a product’s environmental impact.
Third-party verification adds credibility to a company’s claims. Consumers can look for brands that report to the CDP, which provides a standardized framework for emissions reporting. Additionally, targets validated by the Science-Based Targets initiative (SBTi) ensure alignment with the latest climate science.
Impact on Consumers and Value-Based Foods
The focus on Scope 3 emissions is reshaping consumer interactions with food products. Companies are increasingly providing transparency about their products’ environmental impact, enabling consumers to make informed choices.
For example, Oatly has implemented carbon footprint labeling on its products, allowing consumers to understand the emissions associated with their purchases.
This trend towards transparency is driving the growth of value-based foods – products that align with consumers’ environmental and ethical values.
As consumers become more aware of the environmental impact of their food choices, they are increasingly seeking out products with lower carbon footprints.
As regulatory pressures mount and consumer awareness grows, addressing Scope 3 emissions will become an industry standard rather than an exception. Companies that proactively tackle these challenges will likely gain a competitive advantage in an increasingly environmentally conscious market.
Guidehouse, a leading consultancy, emphasizes the importance of a holistic approach to Scope 3 emissions reduction. This includes not only setting ambitious targets but also implementing robust measurement systems, engaging suppliers, and innovating across the entire value chain.
Addressing Scope 3 emissions offers an opportunity for companies to demonstrate leadership in sustainability. By discussing these emissions, food companies can contribute to global climate goals, meet evolving consumer demands, and position themselves for long-term success in a carbon-constrained world.
- About the Author
- Latest Posts
I strive to paint vivid landscapes with my words, bringing the magic of far-off lands and enchanting aromas to life for my readers. Combine passion for exploration and the art of gastronomy in an unending ode to the senses. When I’m not traversing the globe, I find solace in the earth beneath my fingertips, tending to my garden and working on projects around my verdant oasis. MK Library serves as a beacon, guiding fellow travelers and homebodies alike to embrace sustainability, nurturing both our planet and our souls with purpose. Full Bio.
If you buy something from a MK Library link, I may earn a commission.
