The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

As sustainability regulations become more stringent, investor expectations continue to rise and global consumer awareness grows, the UK's food and drink industry is under increasing pressure to accurately disclose and reduce its carbon emissions. In this shifting landscape, procurement plays a crucial role in driving meaningful decarbonisation efforts. Here, Mauro Cozzi, CEO and founder of Emitwise, shares his insights on how businesses can leverage procurement strategies to navigate these challenges and accelerate their sustainability goals.

A significant challenge lies in managing Scope 3 emissions, the indirect emissions occurring throughout the entire value chain, from suppliers to end consumers. For food and drink businesses, Scope 3 emissions can account for up to 95% of their total carbon footprint, underscoring the critical importance of addressing them effectively.

Given these challenges, procurement becomes a critical starting point for companies striving to reduce their carbon footprint and achieve sustainability goals. By prioritising sustainable suppliers and working toward a more precise Scope 3 emissions measurement, companies can embed environmental responsibility throughout their value chain, enabling accurate carbon tracking and reducing Scope 3 emissions from the ground up.

Understanding the regulatory landscape for Scope 3 emissions

Global regulatory shifts are driving the need for precise and verifiable carbon emissions data. The UK's commitment to achieving net-zero emissions by 2050 has led to increased scrutiny of all sectors, with the food and drink industry being a significant focus due to its substantial contribution to national emissions. According to Too Good to Go, food waste is responsible for 10% of global greenhouse gas emissions and utilises 25% of all freshwater resources.

This means relying on estimates or partial data is no longer viable, making accurate Scope 3 data essential for market competitiveness and compliance.

Navigating transparency challenges in supply chains

Complex supply chains and data inconsistencies make achieving transparency difficult. Traditional estimation methods often inflate carbon footprints, hindering informed decision-making. In fact, recent research conducted with procurement leaders revealed that 33.3% identified data accuracy as a primary challenge in measuring Scope 3 emissions.

Four key methods can be used to calculate Scope 3 emissions:

1. Spend-based: This method uses procurement spending data but risks inflating emissions by increasing the emissions count every time spend increases, regardless of actual emissions.

   
   

2. Average data: This approach bases calculations on the volume of goods or services consumed. Although more accurate than spend-based data, it lacks the specificity needed to account for supply chain nuances.

   
   

3. Supplier-specific data: This method leverages primary data directly from suppliers, enabling companies to calculate product-specific emissions but requiring strong supplier engagement.

   
   

4. Hybrid methods: Combining primary and secondary data, hybrid methods strike a balance between accuracy and feasibility by using supplier-specific data where possible and complementing it with industry averages.

To increase data accuracy, businesses must move towards incorporating primary data from suppliers within their reporting practices. This approach is labour-intensive, requiring specialised skills, strong supplier relationships and likely the support of carbon management specialists. However, in the long run, it enables companies to gain a more accurate picture of supply chain emissions, strengthening both decision-making and resilience.

Building supplier partnerships for sustainable impact

For companies to effectively manage and reduce Scope 3 emissions, sustainability considerations must be embedded into all procurement decision-making processes, from supplier selection to contract catalogues. Prioritising suppliers who are making tangible progress on their sustainability agenda and can provide accurate emissions data helps reduce overall emissions and fosters stronger, collaborative relationships.

Suppliers can be segmented based on their data maturity and emissions capabilities:

High-maturity suppliers:

• Can provide verified emissions data across Scopes 1, 2 and 3

• Often have product carbon footprints (PCF) available
  

Medium-maturity suppliers:

• Have some emissions data but may lack completeness, verification or Scope 3 insights

• May need help aligning with standard reporting methodologies or implementing best practices.

• Likely have begun carbon reduction initiatives but require further support to scale them.

Low-maturity suppliers:

• Have little or no emissions tracking experience and may rely on default industry averages instead of actual data.

• Lack internal expertise, resources or technology to measure emissions effectively.

• Often benefit from educational resources, tailored training sessions or incremental steps towards transparency.

This segmentation helps companies target resources effectively, focusing advanced data requests on capable suppliers while educating and supporting others to build a collective momentum towards emissions reduction through training and development sessions.

Leveraging collaborative industry initiatives

To accelerate progress, companies should leverage sector and cross-industry collaborations that standardise Scope 3 data practices. For example, the Waste and Resources Action Programme (WRAP) has developed the Scope 3 GHG Measurement and Reporting Protocols for Food and Drink, providing a consistent methodology for businesses to measure and track progress in reducing supply chain greenhouse gas emissions.

These initiatives are crucial for Scope 3 reporting, as they simplify the process, alleviate supplier burden and allow procurement teams to manage emissions data with greater efficiency. By working within industry frameworks, companies can ensure consistency, improve data quality, and drive systemic changes that align with global sustainability goals.

The long-term benefits of sustainable procurement

Embedding Scope 3 data practices in procurement not only improves regulatory compliance but also strengthens supplier relationships, mitigates climate-related risks and enhances the company’s resilience in a changing regulatory environment.

As organisations and industries increasingly rely on primary data to meet their emissions goals, sustainable procurement practices position companies to lead the transition to a low-carbon economy, benefiting both the planet and long-term business performance.

By using procurement as a key carbon management tool, businesses can drive tangible changes in their supply chains, create accountability across suppliers and ensure that their sustainability efforts are built on accurate, actionable data.