In 2021, Ceres benchmarked Food Emissions 50 companies on their greenhouse gas emissions disclosure and reduction targets. Though scope 3 emissions from supply chains represent 80% or more of food companies’ total emissions, in 2021, few companies were comprehensively including them in their disclosures and targets. Now, in 2024, over a third of the focus companies have disclosed these emissions and nearly half have set or committed to setting 1.5°C-aligned science-based emission reduction targets that include scope 3 emissions.
As more companies set targets to reduce their GHG emissions, it is critical that they disclose how they will transition their businesses to achieve these goals. Without climate transition plans that chart the actions companies will take to reduce their emissions, it is likely that companies will fall short of their goals. To this end, since 2023 Ceres has benchmarked Food Emissions 50 focus companies on whether they are disclosing key elements of climate transition plans. This assessment focuses on components of an effective GHG emissions reduction strategy specific to the food sector.
In the recently updated assessment, only the 30 companies that already had full emissions disclosure and targets were benchmarked in this assessment, as a transition plan without these key prerequisites would have no clear starting point and no clear destination. A company that only discloses scope 1 and 2 emissions would likely only have strategies to address those emissions, which represent a small fraction of the emissions in this sector. A company without any science-based targets can only disclose strategies that will be misaligned with a 1.5°C future.
Among the assessed companies several key trends are apparent.
A critical area where companies have an opportunity to act is in aligning their forward-looking business growth and innovation strategy with their GHG targets to ensure that the future growth of the company does not set the company behind on its emissions reduction targets. While more companies are now conducting climate scenario analysis to assess the potential risks and opportunities to their business in a transition to a 1.5°C scenario, companies are largely not making progress on taking actions to mitigate impacts and capitalize on opportunities related to this transition including by ensuring that future investments, including capital allocations and new acquisitions, will be aligned with their public emissions reduction goals.
As the majority of food companies’ emissions are scope 3, it comes as no surprise that many companies have ongoing efforts to engage their supply chain, but still there is opportunity for more targeted climate action. Now, 21 of the assessed companies, over half, clearly identify the key drivers of their scope 3 emissions from purchased goods and services. Without this information, there is no way of knowing whether the actions companies are taking are targeting the largest drivers of the company’s emissions footprint. And as companies disclose more of this information, they are also beginning to more clearly identify actions to reduce these emissions. Two companies now also have compressive commitments to achieve a deforestation and conversion free supply chain by 2025, and 12 others have committed to addressing deforestation and conversion by slightly later target dates or for portions of their supply chains. 23 companies are encouraging or requiring suppliers to take climate-related actions, and 22 are providing technical and/or financial assistance to agricultural producers in their supply chain to shift to lower emissions practices.
In 2023, Yum! Brands became the first company benchmarked by the initiative to quantify how it expects the actions they are implementing will lead to the emissions reductions needed to achieve their public commitments. Though data availability continues to be a challenge, forward-looking projections are critical for both internal and external stakeholders to understand what it will take for the company to achieve its goals, and what additional actions may be needed to address any gaps between the company’s current plans and the emissions reductions they need to achieve.
While there has been considerable progress since Food Emissions 50’s launch in 2021 and its subsequent updates, it is also clear that more is needed. As we near 2030, companies must demonstrate actions they are taking to rapidly reduce their emissions to stay on track, or in some cases get back on track, to achieving their goals.
To learn more, please visit the individual company scorecards below, and our assessment methodology for the Food Emissions 50 benchmark indicators.