Reduce the Supply Chain Carbon Footprint

Although the majority of food production-related GHG emissions occur before food even hits grocery store shelves, these emissions are included within the retailer’s Scope 3, or indirect, emissions – and retailers can leverage their position as the nexus of the food system to work with suppliers, producers, and vendors to reduce the GHG emissions associated with producing food and getting it to markets. There are a number of starting places.

Although the majority of food production-related GHG emissions occur before food even hits grocery store shelves, these emissions are included within the retailer’s Scope 3, or indirect, emissions – and retailers can leverage their position as the nexus of the food system to work with suppliers, producers, and vendors to reduce the GHG emissions associated with producing food and getting it to markets. There are a number of starting places.

Although the majority of food production-related GHG emissions occur before food even hits grocery store shelves, these emissions are included within the retailer’s Scope 3, or indirect, emissions – and retailers can leverage their position as the nexus of the food system to work with suppliers, producers, and vendors to reduce the GHG emissions associated with producing food and getting it to markets. There are a number of starting places.

Retailers can work with their suppliers to share GHG reduction goals, targeting all supply chains or specific high-impact ones. Walmart founded its Project Gigaton in 2019 with the goal of eliminating one billion metric tons (a gigaton) of GHGs from its global value chain by 2030. To date, it has signed up over 3,169 suppliers to the project across its supply chain, offering guidance in setting emissions reduction targets and developing a tool for suppliers to calculate the greenhouse gas impact of their initiatives and share their progress. Costco has also launched a 4-year plan to reduce emissions, including from among its produce, textile, and paper product suppliers. Kroger uses Supplier Hub, a vendor management system that enables it to collect and maintain information on supplier conformance to company commitments.

Freight transportation to get food to market accounts for 6% of food-related emissions. Underutilized freight vehicles waste fuel, and vehicles returning empty waste even more. Optimizing freight transportation routes and logistics can help to reduce GHG emissions from fossil fuel combustion. Optimizing transportation networks can also help prevent food waste, which is responsible for about 6% to 8% of human-caused GHG emissions. FAO estimates that around 14% of the world’s food loss occurs after harvest and before retail, making optimizing transportation networks and schedules key to preventing spoilage and waste. Retailers can participate in the EPA SmartWay program to benchmark their transportation efficiency and find resources to improve their performance. Other emerging technologies like hydrogen cell trucks and electric trucks also offer pathways to zero emissions from freight transport.

A 2015 study by the Global Food Cold Chain Council (GFCCC) found that the expansion of the cold chain – the network of refrigerated freight vehicles and warehouses that fresh produce and refrigerated and frozen products pass through between production and retail – could actually reduce the GHG emissions associated with food waste by more than 50%. However, this reduction may not offset the carbon footprint of the energy used for refrigeration. It also may not address the effects of the hydrofluorocarbon (HFC) refrigerants that are often used to keep warehouses and vehicles cold, which are powerful greenhouse gases that contribute to global warming when they are leaked from refrigeration equipment. Retailers can work to reduce the global warming impact of their cold chains by improving energy efficiency in warehouses and converting to low-GWP or natural refrigerants. They could also go even further by converting warehouses to renewable energy sources.

Another source of GHG emissions associated with food supply chains is plastic packaging. According to the Climate Collaborative, packaging accounts for about 5% of the energy used in the life cycle of a food product, making it a significant source of GHG emissions. Retailers can work with suppliers to reduce plastic CPG packaging or convert to easier-to-recover alternatives that can then be recycled.

Finally, retailers can promote lower-carbon products to customers. These may include in-season, local produce that requires less refrigeration and fewer transportation miles to get to store shelves, thus producing fewer GHG emissions. Retailers may also consider highlighting lower-carbon plant-based alternatives to meat products. The methane gas produced during livestock and fish production is a powerful greenhouse gas and makes up 30% of food-related emissions.