How food retailers can contribute to net zero [Interview]

“Most retailers in the US and Europe have committed to net zero. The commitment has been through the Science Based Targets initiative (SBTi), in which companies can commit to a strategy of aiming for a maximum 1.5 or 2.0 degrees increase in global warming.”

“SBTi will hold companies accountable for delivering on the targets. The Science Based Targets’ process has five stages: committing, developing, submitting, communicating, and disclosing. Some retailers are at the first step of the process; others are more progressed. Ultimately, we expect most retailers to commit, submit and disclose.”

“Not really; if one has to speak of dissonance, it is the rate of change and implementation of the changes. Some retailers are at the early stage of their thinking, whereas others are more advanced. Another noteworthy point is that the rate of change in Europe is higher than in the US. Still, most larger retailers in the US have committed.”

“Retailers move at different paces, which has to do with the management of companies and how much of a priority net zero is to them. Net zero may have become a lower priority in the current high-inflation environment. We expect this topic to move up the agenda towards the back end of the decade. Many companies have set intermediate targets – mostly for 2030 – so there may be some pressure to achieve these.”

“The most important challenge is that, of all retailer emissions, on average 97% is scope 3 [in other words], the products that are sold. So, changing lighting or purchasing electric vehicles helps, but in the end, it does not move the needle. It is about changing practices upstream – whether it is packaging, farming, or producing, all can be done in a more environmentally friendly way.

“However, how can the industry change the practices of retailers’ suppliers? And who is going to pay for these investments?”

“Net zero is seen as beneficial to all. I am not convinced the consumer cares; as citizens they perhaps do, but when they enter the supermarket, other priorities, such as taste and price, matter more. Achieving net zero is a much longer commitment to satisfy demands by the aforementioned external and internal stakeholders.”

“It is only a part of the puzzle. Sustainability is broad and includes many topics, such as nutrition and waste. On the environmental side, we see increased attention to biodiversity and freshwater scarcity.”

“Net zero is a long way out and may never be achieved. It is going to be a long journey…”

“Priorities may lay elsewhere for some retailers. In dealing with the food inflation crisis, for example, I do not expect a lot of visible progress in the next 12 months. However, a lot of planning is done in the background, so suppliers should also prepare!”

“I expect initially there will be a focus on quick wins, such as changing packaging materials. However, more change is required to shift focus to the actual food and beverages. Reformulation of ingredients might be helpful. Ultimately, we believe that most change should happen at the farm level. Farming practices need to be changed to lower emissions.”

“If they have not familiarised themselves with the journey towards net zero, they should. Their stakeholders and clients will come to them with questions about their ingredients’ footprint and whether formulations can be changed for existing products. New products may require an additional layer of thinking in addition to a product’s taste, price and properties.”