How Can You Drive Action against Climate Change?

Sustainability is not profitable and innovation is always hungry for investment. These are facts often included in business presentations at bakery events I’ve seen. The challenge facing the food industry though is to innovate for sustainable development. The reason why is an easy one in this equation: there is simply no other alternative. That makes it crucial, even at a time when COVID-19 has effectively brought to an abrupt stop everything considered baseline normal just six months ago. The question then becomes: how can the food industry achieve visible results that will prevent climate change, while having to upend its business models in some sectors (foodservice as a prime example)?

The deadline for the dreaded +1.5˚C increase in the global average temperature is 12 years and four months. The concentration of CO2​​​​ in our atmosphere, as of May 2020, is the highest it has been in human history – 416 parts per million, data from Conservation International shows. And that is while a global lockdown has been in effect. We have all seen the pollution clearing from China and Italy while the most strict isolation measures were active; the GIFs are mesmerizing. “At least there’s that,” we thought. Yes, it is an unprecedented pause giving the environment a literal breath of human-free fresh air. But there is hard work ahead, to see deep-orange pollution maps from NASA satellites go into the blue – and run sustainable, profitable bakeries.

Set a Goal

Companies are turning to the Science-based Targets Initiative to put in motion meaningful targets with the support of the latest in science. Yum has last year begun working to join the 915 companies taking action within this initiative. Yum’s Taco Bell, Pizza Hut and KFC would join McDonald’s, who has already set its targets in 2018, pledging to partner with franchisees to cut greenhouse gas emissions to restaurants and offices by 36% by 2030 (as against 2015 values). Through collaboration and partnership with suppliers and producers, McDonald’s also commits to a 31% reduction in emissions intensity (per metric ton of food and packaging) across our supply chain by 2030 from 2015 levels. Tate & Lyle also deserves a mention for having committed to set its own targets.

Nestlé, in turn, acknowledges that “We are running out of time to avoid the worst effects of global warming” and is setting a net-zero emission goal by 2050. It has laid out the path to achieving this goal: the company plans to speed up the launch of more products with a better environmental footprint, contributing to a balanced diet and including more plant-based options. Nestlé will also reformulate its products using more climate-friendly ingredients, and it is moving to alternative packaging materials. It will also work with farmers to restore land and limit greenhouse gas emissions and will step up efforts to protect forests by replanting trees and enhancing biodiversity. Inhouse, it will be using 100% renewable electricity in our factories, warehouses, logistics and offices. A third of Nestlé factories (143) are already using 100% renewable electricity.

Grupo Bimbo is also leading the way, long committed to working sustainably and is investing in technology and innovation to reduce its carbon footprint. For example, it has connected its Mexico operation to the Piedra Larga wind farm, which supplies renewable electrical energy to 55 facilities, 131 sales centers, 57 El Globo branches, 2 distribution centers and the corporate headquarters buildings. “Through the wind farm, we stop the production of 104,400 tons of CO2e,” they say. Bimbo’s fleet is also green, with more than 430 electric vehicles developed by its Moldex subsidiary. It also helped create the Mexican Alliance for Biodiversity and Business (AMEBIN), a space for dialog and action between the private sector and civil society organizations to contribute to the conservation, sustainable use and restoration of biodiversity in Mexico.

Steps

Making a business successful is a challenge in itself and environmentally-friendly are sometimes regarded as less competitive for it. It is an investment and it does require commitment; however, manufacturers are embarking on this journey not just from the standpoint of corporate social responsibility, but embedding it in actual business objectives. It involves changing the way we think about products, technologies and processes. On this journey, compliance with regulations can become an opportunity to innovate. Consumers are looking for healthy & fresh products, but packaged for their safety; these are all drivers for creative solutions. New business models can revamp a struggling foodservice provider, for instance. Sustainability presents itself across the supply chain.

The World Economic Forum points to three ways in which sustainable supply chains can build better, more resilient business post-COVID-19, that can serve as inspiration:

  1. Measure continuous improvement to help farmers and companies mitigate risks and build resilience;
  2. Be transparent and accountable;
  3. Share the benefits and the costs of sustainable production.

To make steps such as these evident, certification is key. To better encompass innovations in this field, the Rainforest Alliance has just announced a new program, for example, to replace the existing Rainforest Alliance and UTZ certification programs from mid-2021. The organization said on June 30 that it expects at least two million farmers around the world to use the new certification program to produce better crops, adapt to climate change, increase their productivity, and reduce costs. The key innovations of the new certification program include a climate-smart agriculture approach, improved data management (better analysis of risks and measurement of performance, new digital tools for farmers, and clearer performance insights for companies), and social and environmental requirements for supply chains – to name a few.

With a comprehensive toolkit like this, doing sustainability upgrades is hopefully becoming mainstream in the post-COVID-19 world. The time is now for innovation to really pay off.

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