The food industry is entering a new era of accountability. With the EU’s Corporate Sustainability Reporting Directive (CSRD), the Science-Based Targets initiative (SBTi), and the growing importance of Scope 3 emissions, sustainability reporting is becoming a defining aspect of business performance.
For food businesses, understanding how these frameworks connect is key—not just for compliance, but for driving real impact and building resilience in a changing market. Learn more in our comprehensive guide to food carbon footprint
What CSRD Means for Food Businesses
The Corporate Sustainability Reporting Directive (CSRD) is the EU’s new framework for sustainability reporting. It requires companies to disclose environmental, social, and governance (ESG) data with the same rigor as financial reporting.
In practice, this means that food businesses must report greenhouse gas (GHG) emissions across Scope 1, 2, and 3, in accordance with the European Sustainability Reporting Standards (ESRS). The goal is to standardize, compare, and audit sustainability reporting across the European Union.
CSRD first applies to large companies, but smaller listed entities will follow. Even businesses not legally required to report can utilize the voluntary ESRS standards or other recognized frameworks, such as GRI and CDP, to meet stakeholder expectations and prepare for future regulations.
Understanding Scope 1, 2, and 3 Emissions
To meet CSRD requirements or set SBTi targets, businesses need to understand the three scopes of emissions:
• Scope 1: Direct emissions from owned or controlled sources (such as vehicles or on-site fuel use).
• Scope 2: Indirect emissions from purchased energy like electricity, heating, or cooling.
• Scope 3: Emissions across the value chain — from ingredient sourcing to waste management.
For food and beverage companies, Scope 3 can account for up to 95% of total emissions. That’s where the most significant impact—and opportunity—lies.
Food production alone is responsible for around one-third of global greenhouse gas emissions. Most of these come from agriculture, land use, and supply chains, not transport—meaning that reducing food-related emissions requires visibility far beyond the kitchen.
If you're unfamiliar with these emission categories or want to explore them in depth, we’ve created a dedicated guide to Scope 1, 2, and 3 emissions tailored to the food industry.
The Role of SBTi in Food Emissions
The Science-Based Targets initiative (SBTi) provides a framework for companies to set and validate emissions reduction targets in line with climate science.
For food businesses, SBTi offers pathways tailored to agriculture, land use, and value chain emissions, giving companies a credible way to align their climate goals with the Paris Agreement’s 1.5°C target.
To set SBTi-aligned targets, accurate and comprehensive carbon data is essential. Klimato’s extensive database provides just that. With over 20,000 food-specific emission factors across more than 100 countries, along with detailed data for packaging, transport, energy, and all other relevant categories, Klimato enables businesses to track Scope 1, 2, and 3 emissions with the precision required for both CSRD compliance and SBTi reporting.
How CSRD, Scope 3, and SBTi Work Together
Each of these frameworks plays a different role in your sustainability strategy:
| Framework | What It Does | Why It Matters for Food Businesses |
| CSRD | Requires companies to disclose GHG emissions across all scopes under EU law. | Ensures standardized, transparent, and verifiable sustainability reporting. |
| Scope 3 | Covers value chain emissions—typically the largest share in food businesses. | Highlights where emission reductions can have the greatest impact. |
| SBTi | Validates and guides companies toward science-based reduction targets. | Adds credibility and structure to sustainability goals. |
Together, these frameworks create a clear path forward: report accurately, act strategically, and demonstrate measurable progress.
Benefits of Proactive Compliance
When a food-business treats compliance not simply as a cost centre but as a strategic asset, several business-benefits emerge:
1. Reduced risk & improved resilience
By getting ahead of regulatory requirements such as CSRD and digging into value-chain emissions (especially Scope 3), you minimize the risk of unexpected enforcement actions, contract losses or stranded assets. For example, CSRD will require more detailed climate disclosures under the European Sustainability Reporting Standards (ESRS), and even suppliers not yet in scope will increasingly be asked for verifiable data by their customers.
In practical terms: if you’ve already built the data-systems and supplier engagement needed for Scope 3, you avoid last-minute scramble, audit exposure and reputational hits.
2. Cost savings & operational efficiency
Measuring your emissions—especially in high-impact areas like ingredients, waste, packaging and logistics—often uncovers inefficiencies you wouldn’t otherwise see. In the food-industry, Scope 3 often represents ~95% of total emissions, making it a major lever for improvement.
By acting on that data you can optimize procurement (e.g., lower‐emission ingredients), reduce waste, improve logistics and thereby reduce cost. Switching from high-emission foods such as beef to lower-emission alternatives as a key margin opportunity.
Therefore: compliance measurement = data = operational insight = cost savings.
3. Competitive differentiation & growth opportunities
When you can demonstrate credible climate data and transparent reporting, you position your brand as forward-looking. That can help you win business—whether that’s clients, contracts, retail buyers, food-service partners or even investors. Sustainable practices can drive profitability because consumers increasingly demand transparency and sustainability.
For food-businesses working in larger supply-chains (especially European ones) this becomes a barrier to entry: if they cannot deliver verified climate-data, they risk losing tenders or being excluded as a supplier. Starting early gives you a market advantage.
4. Access to greener capital & favourable terms
Investors and lenders are increasingly screening companies for ESG resilience. Businesses that can show robust emissions-tracking, target-setting (e.g., via SBTi) and disclosure are seen as lower risk and more future-ready. Complying for regulatory reasons also supports easier access to capital and better terms.
Thus: when you align compliance with a sound data-and-reporting infrastructure, you unlock potential financial upside.
5. Building brand trust & stakeholder loyalty
Beyond customers, your stakeholders (employees, buyers, LOIs, partners, public) are paying attention. Being able to demonstrate you’re ahead of the curve on reporting and carbon-management creates trust. Carbon labels, transparency and sustainability practices boost brand value and loyalty. In turn, that supports recruitment/retention of talent, stronger partnerships and higher-value contracts.
How Klimato Supports CSRD and SBTi Alignment
Klimato’s food emissions solution is built for precision, transparency, and compliance. Our Scope 1, 2, and 3 calculations adhere to the GHG Protocol, utilizing a database accredited by IVL and WRI.
Klimato makes it easy to manage sustainability data without getting overwhelmed by spreadsheets. Our platform helps food businesses:
• Track Scope 1, 2, and 3 emissions to stay compliant and cut impact
• Generate CSRD-ready reports aligned with ESRS and GHG Protocol
• Export SBTi-compatible data for validated target setting
• Communicate impact through carbon labels and climate-smart menus
For companies not yet required to report under CSRD, Klimato can also help disclose emissions through voluntary ESRS, GRI, or CDP standards, ensuring you stay ahead of regulatory and market expectations.
FAQ: CSRD, SBTi, and Scope 3 for Food Businesses
Q: What is the difference between SBTi and CSRD?
A: CSRD is a mandatory reporting framework from the EU. It requires companies to disclose their environmental impact—including Scope 1, 2, and 3 emissions—in line with the ESRS and with the same rigor as financial reporting. SBTi, on the other hand, is a voluntary target-setting framework. It gives companies science-based pathways to reduce emissions in line with the Paris Agreement.
Think of it this way: CSRD tells you what to report. SBTi shows you how to reduce it.
Q: How do I collect Scope 3 data?
A: Collecting Scope 3 data means gathering information from across your entire value chain. For food businesses, this includes:
• Emission factors for ingredients
• Supplier data on farming practices and sourcing
• Packaging materials and volumes
• Transport and logistics information
• Waste generation and disposal
• Energy use at partner facilities
Most food businesses use a combination of supplier questionnaires, procurement data, LCA databases, and digital tools like Klimato to ensure accuracy and consistency. The key is to build a process that’s repeatable, verifiable, and aligned with the GHG Protocol.
Q: What are Scope 3 emissions in the food industry?
A: Scope 3 emissions are all indirect emissions across your value chain—and in the food industry, they’re usually the biggest share. They cover everything from agricultural production and land use to packaging, logistics, and end-of-life waste. For many food businesses, Scope 3 can represent up to 95% of total emissions, making it the most important category to understand and manage.
Q: What is CO₂ in the food industry?
A: In the food industry, CO₂ refers to the greenhouse gas emissions released throughout the lifecycle of producing, transporting, preparing, and disposing of food. This includes agricultural emissions like methane and nitrous oxide, which are often converted into CO₂-equivalents (CO₂e) so they can be measured consistently. When we talk about “CO₂ in the food industry,” we’re really talking about the total climate impact of food production, from farm to fork.
Q: Do small food businesses need to report under CSRD?
A: Most small food businesses aren’t legally required to report under CSRD today, but many will still feel the pressure. Large customers and retail buyers increasingly demand verified emissions data from their suppliers. If you can’t provide it, you risk losing tenders and being excluded from supply chains. Preparing early is the safest way to stay competitive, even if the law doesn’t apply yet.
Q: What’s included in Scope 3 emissions?
A: Scope 3 includes 15 categories defined by the GHG Protocol, and food businesses typically work with the ones most relevant to their supply chain. These include purchased goods and ingredients, packaging materials, farming and land-use emissions, upstream and downstream transport, waste from food production and operations, and use and end-of-life treatment of sold products. Because Scope 3 is so broad, having a structured, data-driven approach is essential for accurate reporting and meaningful reduction efforts.
UNLOCK YOUR POTENTIAL
Ready to turn sustainability into a
growth driver?
Book a demo with Klimato and see how our tools can help your catering business win.
