A recent analysis by Ceres of major North American food companies has shed light on the industry’s strides toward a net-zero emissions economy. The food sector, responsible for a third of global greenhouse gas emissions, shows signs of progress through the Food Emissions 50 initiative.
The latest benchmark reveals that a majority of the companies involved have taken significant steps by reporting their supply chain emissions and setting reduction targets, foundational actions for an effective climate transition plan.
Launched in 2021, the Food Emissions 50 initiative has seen an increase in companies disclosing Scope 3 emissions and setting science-based targets aligned with a 1.5-degree Celsius climate goal. This shift indicates a growing recognition within the sector of the need for transparency and ambitious action to combat climate change.
However, despite these advances, Ceres emphasizes the urgency for more comprehensive measures.
“It is encouraging to see that the food sector is making progress, but more urgent and ambitious action is needed, and investors will be looking for companies to address the large gaps that remain,” said program director of food and forests, Meryl Richards. “As more companies set targets to reduce their emissions, it is critical that they also disclose how they will transition their businesses to align with a net zero future.
“Without climate transition plans that chart the actions companies will take to reduce their emissions, it is likely that companies will fall short of their goals.”
Ceres: Trends in climate transition plans
The benchmark report highlights the progress in transition planning within the food sector, noting an uptick in companies like Yum! Brands that have published quantifiable plans detailing the actions they will take across their operations and supply chain to meet emissions targets. This trend is driven by increasing awareness of climate risks, regulatory changes, consumer demand for sustainable products, and investor pressures.
Innovation and strategy for growth emerge as pivotal areas. The report calls for companies to leverage both traditional agricultural practices and new technologies to mitigate on-farm emissions significantly.
However, it also points out that food companies need to intensify efforts in assessing and acting on the risks and opportunities presented by a transition to a 1.5 C scenario, especially in mitigating supply chain emissions, which constitute a substantial portion of the sector’s overall emissions.
The analysis also underscores a lag in action among food retailers compared to producers, with a minority disclosing emissions and setting reduction targets. Yet, there are signs of progress, with some retailers, including Costco, beginning to report on their climate transition efforts.
Food Emissions 50 serves as part of Ceres’ Ambition 2030, a plan to decarbonize six of the top-emitting sectors for a climate-resilient economy. The full results can be found here.
