Decarbonizing grocery

• Europe has set targets for reducing GHG emissions to achieve net zero by 2050. 
• Internationally, Glasgow's UN Climate Change Conference had the first concrete methane reduction pledges.
• In New Zealand, the government plans to charge farmers for the methane emissions from the animals they keep.
• In the Netherlands, plans to slash emissions associated with livestock farming gave rise to nationwide protests by farmers.

Grocers can create transparency around current GHG emissions along the entire value chain.

• Scope 1. Direct emissions from grocers' operations.
• Scope 2. Emissions from the generation of electricity and heat that grocers purchase
• Scope 3. Emission from agriculture, food processing, waste, and transport upstream, as well as transportation, consumption, and waste downstream.

Scope 1 and 2 emissions account for about 7% of the total, while 93% of emissions are outside the grocer's direct control.

Energy consumption in stores can be reduced by 30–50 percent by modernising lighting, refrigeration, heating, ventila­tion, air condi­tioning, and cooling alone.

Saving energy in stores can fall into four categories:

1. net-zero stores
2. net-zero warehouses
3. net-zero fleets
4. sustainable manufacturing (for vertically integrated grocers)

Each category has levers that are less and more disruptive. A potentially powerful lever is redesigning the grocer's network of distribution centres to shorten routes. 

The bulk of grocery emissions occur during production and consumption.

The biggest challenges is the key role dairy and meat play in the Western diet. The global cattle population is among the top three for GHG-emissions.

1. Provide more sustainable options, including both branded and private-label (PL) products. Substituting beef with plant-based alternatives can lead to a 90 percent reduction in emissions. Additional assortment-related levers include refillable packaging, products sold without any packaging, and reduced package size.
2. Create transparency for consumers. all PL products in a grocer’s assortment should have labels specifying their impact on consumer health and the environment.
3. Collaborate with farmers.
4. Collaborate with small and medium-size suppliers
5. Set ambitious targets for major CPG companies.

Transforming the global food system will take many years. Grocers are well advised to embark on their decarbonization journeys today and position themselves at the forefront of the trans­formation by pursuing initiatives across three areas:

• Get the basics in place. Increase transparency around key sustaina­bility metrics and implement a scope 1 and 2 abatement strategy.
• Develop a compelling sustainability value proposition to consumers.
• Explore opportunities for disruptive business building.