A Practical Guide To Reducing Emissions In Your Food Supply Chain

A Practical Guide To Reducing Emissions In Your Food Supply Chain

InnovationCarbon SolutionsEducation

Author

Karbon-X

As climate expectations and regulations ramp up globally, food and beverage companies are feeling the pressure to reduce greenhouse gas emissions not just within their own operations, but across the entire supply chain. For many, supply chain (or “Scope 3”) emissions make up 70–90% of their total carbon footprint. The good news? This also means it’s where the biggest impact, and opportunity, lies.

Step 1: Understand Where Your Emissions Come From

Reducing emissions in your food supply chain doesn’t have to be overwhelming. It starts with understanding where your emissions come from, then making practical, prioritized changes that fit your business model.

You can’t reduce what you can’t see. The first step is mapping out your emissions hotspots. In the food industry, the biggest contributors usually include:

  1. Agricultural inputs (such as dairy, meat, palm oil, or soy)

  2. Packaging materials (plastics, aluminum, glass)

  3. Transportation and distribution (particularly long-haul or refrigerated freight)

  4. Retail and product use (especially refrigeration and energy use)

  5. Product end-of-life (like landfill waste or packaging disposal)

Even if you don’t have perfect data, start with estimates using spend-based methods or life cycle assessment (LCA) databases.

Step 2: Prioritize the Big Wins

Once you’ve identified your major emissions drivers, focus on the areas where change is feasible and impact is significant. For example:

  1. Switch to lower-carbon ingredients: Consider alternatives with lower emissions profiles, such as plant-based proteins or regenerative agriculture inputs.

  2. Redesign packaging: Use less material, recycled content, or materials with better end-of-life outcomes.

  3. Optimize logistics: Consolidate shipments, switch to rail or electric delivery where possible, and reduce cold chain energy waste.

  4. Improve waste management: Extend shelf life, reduce overproduction, and support consumer recycling.

You don’t have to overhaul everything at once. Small changes at scale can drive meaningful results, especially when they’re repeated across high-volume products or processes.

Step 3: Collaborate With Your Suppliers

Since so much of your footprint lies upstream, supplier collaboration is essential. Start by engaging your Tier 1 suppliers (those you buy directly from) and build relationships that allow for transparency and shared progress.

  1. Share your emissions goals and expectations early

  2. Provide templates or tools for emissions reporting

  3. Co-invest in solutions, such as equipment upgrades or regenerative practices

  4. Celebrate and reward supplier innovation

This isn’t just a compliance exercise, it’s a way to future-proof your sourcing relationships and build resilience across your value chain.

Step 4: Invest in Better Data and Systems

As regulations like the EU’s CSRD or the U.S. SEC Climate Disclosure Rule take effect, credible and auditable emissions data is becoming table stakes. Now is the time to build systems that allow you to measure, track, and report with confidence.

  1. Assign internal accountability across ESG, procurement, and operations

  2. Adopt standardized frameworks (like the GHG Protocol or Science Based Targets initiative)

  3. Use digital platforms or climate tech tools to automate data collection and analysis

You don’t need perfect data from day one, just a commitment to improving it over time.

Step 5: Set Targets and Monitor Progress

Reducing emissions isn’t a one-off project. It’s an ongoing process that requires clear goals, internal alignment, and regular check-ins.

Set targets that reflect your ambition but also your operational reality. These might include:

  1. A percentage reduction in supply chain emissions by 2030

  2. Emissions intensity metrics (e.g., CO₂e per ton of product or per $ revenue)

  3. Supplier engagement KPIs (e.g., % of suppliers reporting emissions data)

Even partial data, consistently tracked, can tell a powerful story, especially if you show year-over-year progress.

Turning Climate Action Into Business Advantage

Cutting emissions in your supply chain isn’t just about meeting compliance requirements , it’s a strategic opportunity. By taking action, companies can reduce long-term sourcing risks that come with climate-related disruptions, such as extreme weather, resource scarcity, or shifting agricultural yields. Emissions reduction efforts often go hand in hand with greater efficiency, which can lead to lower operational costs over time.

Beyond the operational benefits, sustainability is becoming a key differentiator in the market. Brands that demonstrate credible climate action are earning greater trust from climate-conscious consumers and standing out in increasingly competitive categories. Internally, these efforts can build stronger supplier relationships and improve cross-functional collaboration.

Externally, they can open the door to new business opportunities, especially with retailers, distributors, and partners who are now prioritizing ESG performance in their sourcing decisions.

Get the Full Guide: Food & Beverage Emissions Playbook

Ready to take the next step in reducing your supply chain emissions? We’ve created the Food & Beverage Emissions Playbook — a practical, free resource designed to help you move from insight to action.

Inside, you’ll find:

  1. A step-by-step framework for identifying and reducing emissions

  2. Supplier collaboration tools to support data collection and engagement

  3. Real-world examples from food brands leading the way on sustainability

  4. Clear, actionable guidance to help your team get started today

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