As China moves towards its "dual carbon" goals (peak carbon emissions by 2030 and achieve carbon neutrality by 2060), carbon neutrality in the food industry has emerged as a crucial aspect of corporate social responsibility. More and more food enterprises are deepening the development of carbon neutrality strategies and taking action. However, achieving carbon neutrality is not a task that can be accomplished by individual companies alone. The participation of relevant suppliers is equally critical as the selection of raw materials and packaging which has a direct impact on the environmental performance of products. This article delves deeply into the importance of carbon footprint in the food industry and the responsibilities of stakeholders in the supply chain, shedding light on how we can collaboratively drive progress towards a more sustainable and resilient future.
1. Building a low-carbon supply chain
In the face of an increasingly urgent environmental protection situation, reducing carbon emissions is a challenge that every industry must confront. With substantial carbon footprint, the food industry faces an inevitable mission of achieving carbon neutrality. Carbon neutrality is not only beneficial for food companies to enhance brand value, but also a significant leap forward, catalyzing the industry towards a more sustainable future. Several food giants in the industry, such as Yili, Mengniu, Danone, Genki Forest, and Nestle have actively launched zero-carbon or carbon-neutral products in the Chinese market.
Yili launched the first carbon neutral yogurt in the Chinese market
Realizing carbon neutrality of food products requires building a comprehensive low-carbon supply chain. The food industry's carbon footprint is jointly shaped by the players in the supply chain, including raw material suppliers, production enterprises, logistics companies, and retailers. In this process, raw material suppliers play a pivotal role in shaping the carbon footprint. The raw materials' source and production method directly determine the carbon footprint of the final food product.
To achieve carbon neutrality goals, the most practical and feasible way for end-product enterprises is to select suppliers that prioritize sustainable development. In practice, companies such as Yili, Mengniu and Nestle have committed to achieve carbon neutrality in the whole supply chain by 2050. Driven by this goal, enterprises are bound to demand certain requirements from all participants in the supply chain. For example, Yili requires all suppliers to declare carbon emission information and obtain zero-carbon certification. Yili has introduced a supplier classification system based on their capacity to achieve carbon neutrality. Suppliers who have set "carbon neutral" goals and have a clear roadmap for achieving them will be given priority for collaboration by Yili. Moreover, Yili and the suppliers will jointly produce "carbon neutral" products. These initiatives encourage every supply chain participant to attach great importance to their carbon footprint and adopt measures to reduce carbon emissions.
Nestle released its first carbon neutral organic infant formula in the Chinese market
In addition, from the regulatory perspective, as per Action Plan for Carbon Dioxide Peaking Before 2030, China will introduce a series of measures to establish a product carbon footprint system, including conducting research and development of key product carbon footprint standards and piloting carbon footprint evaluations. The implementation of these policies will help to drive the entire industry towards more sustainable development.
2. Evaluating product's carbon footprint
For every participant in the supply chain, it is essential to demonstrate their efforts and achievements in reducing carbon emissions. More and more suppliers are paying attention to their carbon footprint, by responding to downstream customer demands, voluntarily assuming social responsibility, as well as opening up to more opportunities.
Product's carbon footprint evaluation is the foundation of reducing product carbon emissions. By conducting comprehensive quantitative analysis of carbon emissions in every stage of product development, including raw material procurement, production, packaging, and transportation, companies can understand the carbon footprint of their products, identify key areas and directions to reduce carbon emissions, and develop corresponding carbon neutrality strategies. Besides, product carbon footprint evaluation provides companies with a means of communicating with consumers, enabling them to gain a greater understanding of a product's environmental performance and increasing their awareness and recognition of sustainable products. Moreover, carbon footprint evaluation has become a necessary step in the manufacturing of products with carbon labels.
Carbon Label in China
When conducting products carbon footprint evaluation, the most common approach is Life Cycle Assessment (LCA) specified in international standards such as ISO 14040 and ISO 14044. These standards should be strictly followed to ensure the scientific validity and comparability of the evaluation results. Meanwhile, it is necessary to consider the varying levels of consumer awareness and acceptance of carbon footprints in different markets and among different groups. The entire process mainly consists of six important steps.
Key Process of Carbon Footprint Evaluation
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