How Leading Brands Are Cutting Supply Chain Emissions (and What You Can Learn)

How Leading Brands Are Cutting Supply Chain Emissions (and What You Can Learn)

OffsettingEducationInnovation

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Karbon-X

Karbon-X

For food and beverage companies, supply chain emissions represent both a challenge and an opportunity. With as much as 90% of total emissions coming from Scope 3 sources including agriculture, packaging, and transportation leading brands are focusing upstream and downstream to meet ambitious climate goals. Companies like Nestlé, Mars, and PepsiCo have emerged as industry leaders, developing innovative strategies to reduce emissions and improve environmental performance. While their scale is unique, their lessons are highly relevant for companies of all sizes. Here’s how they’re doing it, and what your company can learn.

Nestlé: Driving Change at the Agricultural Level

As one of the world’s largest food companies, Nestlé has prioritized emissions reductions in agriculture and raw material sourcing — which account for the majority of its carbon footprint.

Key initiatives include:

  1. Regenerative agriculture programs: Nestlé is working with thousands of farmers globally to promote practices such as cover cropping, reduced tillage, and integrated livestock management, all of which improve soil health and sequester carbon.

  2. Methane reduction efforts: The company is investing in strategies to reduce methane emissions from dairy farms, including new feed additives and manure management techniques.

  3. Sustainable packaging: Nestlé has committed to reducing virgin plastics use and increasing recyclable and reusable packaging across its product lines.

What you can learn:

Even smaller companies can explore regenerative sourcing, work with suppliers on lower-impact ingredients, and rethink packaging choices to reduce upstream emissions.

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Mars: Scaling Renewable Energy and Supplier Accountability

Mars, a privately held food giant, has set a science-based target to achieve net-zero greenhouse gas emissions across its full value chain by 2050.

Key initiatives include:

  1. Renewable energy transition: Mars has shifted the electricity needs of its direct operations to 100% renewable energy in several major markets, and it’s expanding those efforts globally.

  2. Supplier engagement: Mars is pushing accountability across its supplier base, requiring Scope 3 emissions data and reduction plans as part of its procurement process.

  3. Deforestation-free supply chains: The company is working to eliminate deforestation in critical commodities like cocoa, palm oil, and beef.

What you can learn:

Transitioning to renewable energy, engaging suppliers on emissions data, and embedding sustainability criteria into sourcing decisions are replicable steps for companies at many levels.

PepsiCo: Combining Technology and Collaboration

PepsiCo has developed a broad-based climate strategy that leverages technology, partnerships, and innovation across its supply chain.

Key initiatives include:

  1. Zero-emission delivery fleets: PepsiCo is piloting electric trucks and investing in alternative-fuel fleets to reduce transportation emissions.

  2. AI-powered logistics optimization: The company uses advanced analytics to reduce empty miles, improve delivery efficiency, and lower fuel consumption.

  3. Supplier Leadership on Climate Transition (Supplier LoCT): PepsiCo has launched a major program to help suppliers set climate targets, measure progress, and access tools and training.

What you can learn:

Exploring new technologies, improving logistics efficiency, and supporting suppliers with tools and training can deliver meaningful emissions reductions — even if your company’s fleet or network is smaller.

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Common Lessons Across All Leaders

While these companies differ in size, market, and strategy, several common themes emerge:

  1. Supplier engagement is non-negotiable. Suppliers need clear expectations, technical support, and accountability frameworks to deliver on climate goals.

  2. Data matters. Measuring and tracking emissions is critical to identifying hotspots, setting targets, and demonstrating progress.

  3. Innovation drives results. Whether through regenerative farming, renewable energy, or logistics software, innovation plays a key role in decarbonization.

  4. Transparency builds trust. Leading companies are increasingly open about their challenges, progress, and next steps, which strengthens relationships with customers, investors, and regulators.

How Mid-Market and Growing Brands Can Apply These Lessons

You don’t need a global footprint or billion-dollar budget to apply these strategies. Here’s how companies of all sizes can get started:

  1. Focus on your largest emissions sources — often packaging, transportation, and raw materials.

  2. Engage top suppliers and start a conversation about emissions measurement and improvement.

  3. Set realistic, measurable goals and track progress over time.

  4. Explore collaborations with industry peers, NGOs, or solution providers to share knowledge and resources.

  5. Use tools like the Food & Beverage Playbook to access proven frameworks, templates, and case examples.

Get the Full Guide: Food & Beverage Playbook

To help companies translate lessons from industry leaders into action, we’ve created the Food & Beverage Playbook — a free, practical resource.

Inside, you’ll find:

  1. A step-by-step roadmap for reducing supply chain emissions

  2. Supplier engagement templates and best practices

  3. Case studies from companies like Nestlé, Mars, and PepsiCo

  4. Actionable checklists to help you get started

Download the playbook now →

Equip your team with the insights and tools to accelerate progress on your emissions journey — no matter your company’s size or stage.

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