CSRD for the Food Industry: Scope 1, 2, and 3 Reporting Explained
The Corporate Sustainability Reporting Directive requires food industry companies operating in the EU to disclose Scope 1, 2, and 3 emissions as part of standardized sustainability reporting. For foodservice operators, caterers, and hotel groups, Scope 3 is rarely optional: when up to 95% of your emissions sit in your supply chain, it will almost always be material under CSRD's double materiality assessment. Klimato is built to make that data traceable, structured, and audit-ready.
What Is CSRD and How Does It Affect the Food Industry?
CSRD is the European Union’s framework for standardized sustainability reporting. It introduces stricter requirements for transparency, data quality, and third-party verification compared to previous regulations.
Under CSRD's double materiality assessment, food companies must evaluate both how climate change affects their business and how their operations affect the climate. For most food operators, Scope 3 Category 1—purchased ingredients—will be identified as a material impact area.
This means food businesses in scope need to:
• Collect ingredient-level or spend-based Scope 3 Category 1 data
• Disclose the methodology used and any assumptions made
• Set and track progress against reduction targets
• Report annually in a format consistent with the European Sustainability Reporting Standards (ESRS)
Scope 1, 2, and 3 Reporting Requirements Under CSRD
Under CSRD, food businesses must report Scope 1 (direct emissions), Scope 2 (purchased energy), and Scope 3 (value chain emissions including ingredients, suppliers, and logistics) in line with ESRS E1 standards. For most foodservice operators, Scope 3 will be the most material category.
• Scope 1: Direct emissions from owned or controlled sources
• Scope 2: Indirect emissions from purchased energy
• Scope 3: Value chain emissions, including food production, transport, packaging, and waste
For foodservice businesses, Scope 3 often represents the majority of total emissions. Ingredient sourcing, agricultural production, and supplier activity play a significant role in overall climate impact.
Why Scope 3 dominates emissions in the food industry
Unlike many sectors where emissions come primarily from facilities or energy use, food businesses operate within complex supply chains shaped by agriculture, land use, and logistics.
That means reporting under CSRD requires more than operational data. Companies need visibility into ingredients, procurement patterns, and supplier practices.
Many organizations use life cycle data and carbon footprint analysis to understand how sourcing decisions affect emissions across the value chain.
Turning CSRD reporting into a carbon accounting strategy
While CSRD is a regulatory requirement, many food businesses use it as a framework to strengthen long-term carbon accounting practices.
Key focus areas include:
• Standardizing emissions data across sites and suppliers
• Aligning procurement decisions with climate targets
• Integrating reporting into everyday operational workflows
• Preparing for science-based targets and future disclosures
Rather than treating reporting as a once-a-year exercise, organizations are embedding Scope 1–3 tracking into continuous decision-making.
How Klimato supports CSRD-aligned Scope 1–3 reporting
Klimato is designed for food businesses navigating corporate carbon accounting and CSRD requirements. By connecting procurement, recipe, and operational data, Klimato helps organizations track emissions across all three scopes.
Key capabilities include:
• Automatic Scope allocation across procurement and sales data
• Ingredient-level Scope 3 insights
• Supplier and menu comparisons
• Exportable reports designed for auditors and stakeholders
This approach allows sustainability teams to move from fragmented reporting toward structured, CSRD-ready carbon accounting.
Preparing for the future of food industry reporting
CSRD reflects a broader shift toward standardized climate disclosures. For food businesses, the focus is moving beyond isolated sustainability initiatives toward integrated reporting that connects sourcing, operations, and long-term strategy.
Organizations that build strong Scope 1–3 data foundations today are better positioned to adapt to future regulations, investor expectations, and procurement requirements across the food sector.
Whether your business is preparing for mandatory reporting or supporting clients that must comply, building clear visibility into food-related emissions is the first step.
FAQ about CSRD
What does CSRD require for Scope 1, 2, and 3 emissions reporting?
Under CSRD, companies must disclose greenhouse gas emissions across all three scopes in line with ESRS E1 standards. Scope 1 covers direct emissions from owned operations, Scope 2 covers purchased energy, and Scope 3 covers value chain emissions including suppliers, ingredients, logistics, and waste. Reporting must be traceable, methodology-transparent, and subject to third-party verification—the same level of rigor applied to financial disclosures.
How does CSRD apply to the food industry?
For food industry businesses, CSRD is particularly demanding because Scope 3 emissions—which the directive requires companies to assess for materiality—typically represent the vast majority of total climate impact. Ingredient sourcing, agricultural production, and supplier activity all fall within Scope 3. This means food companies cannot limit reporting to operational energy data alone; procurement and supply chain emissions are almost always material under CSRD's double materiality assessment.
When does CSRD reporting become mandatory for food businesses?
CSRD is being introduced in phases. Large listed EU companies were first in scope from financial year 2024. Large private EU companies follow from 2025, and listed SMEs from 2026. Non-EU companies with significant EU revenue or operations enter scope from 2028. Food businesses should also account for indirect pressure—corporate clients subject to CSRD are increasingly requesting verified emissions data from their suppliers ahead of their own reporting deadlines.
What is double materiality under CSRD and how does it affect food companies?
Double materiality requires companies to assess sustainability topics from two directions: how climate risks affect the business financially, and how the business's activities affect the climate. For food companies, this almost always makes Scope 3 food emissions material—both because supply chain disruption represents a genuine financial risk, and because ingredient sourcing is a significant source of environmental impact. Companies cannot exclude Scope 3 simply because it is complex to measure.
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Klimato helps food businesses simplify Scope 1–3 tracking, strengthen carbon accounting practices, and prepare for CSRD with confidence.
