How Food Producers Use Carbon Footprint Calculation to Grow Revenue

The food industry accounts for 34% of global emissions and now faces immense pressure to lower that figure. As this consumer and regulatory-led demand ripples through the supply chain, food businesses are forced to confront the environmental impact of their dishes. 

That’s where carbon footprint analysis tools come in. 

While some producers might see carbon footprint data collection and verification as a costly burden, others are using innovative new technology to turn it into an opportunity for growth. How are innovative food producers using carbon footprint calculation to grow revenue, strengthen their brand, and satisfy clients?

Consumer and Customer Pressure: The Demand for Transparency

Regardless of where you sit in the supply chain, monitoring changes in consumer demand is always critical. And consumers have spoken: they want a more sustainable, transparent food system.

In a recent UK study, 78% of consumers said buying food with a low environmental impact was important – and a study by BCG suggests these are more than idle words: food sustainability was the category where respondents showed the most significant interest and follow-through compared to other product categories.

What’s more, they’re increasingly valuing transparency. In the same way that customers have come to appreciate nutritional and calorie numbers on their food, they’re keen to make more informed choices on sustainability. A recent Mastercard survey showed that more than half of their 4000 respondents would prioritize brands that revealed their carbon footprints.

In short, consumers are using their wallets to vote for transparency—and food producers might want to listen.

Regulations on the Horizon

In addition to consumer demand, food producers face increasing regulatory pressure. The Paris Agreement was signed, and while there’s no definitive date yet, regulation on carbon footprint reporting for food is coming. The Corporate Sustainability Reporting Directive (CSRD) mandates extensive climate-related disclosures in the European Union, including Scope 1, 2, and 3 greenhouse gas emissions. These disclosures must be audited by independent third parties, adding another layer of scrutiny. 

Similar initiatives are being developed all over the world.

The International Sustainability Standards Board (ISSB) is also developing global sustainability disclosure standards that aim to harmonize reporting requirements worldwide. 

Beyond the CSRD and ISSB, food producers must also navigate a complex regulatory environment. Some of the other key regulations that will have a direct impact on the industry include:

• EU green claims regulations: these mandate that companies must substantiate any sustainability claims with robust data. Proposed in 2023, it’s a set of rules aimed at combating greenwashing and ensuring that environmental claims made by companies are trustworthy, accurate, and comparable. For food producers, this means ensuring that verified data back their carbon footprint claims.
• Product Environmental Footprint (PEF) methodology: an EU initiative that offers guidelines on measuring and communicating the environmental performance of products, including food. It supports producers in calculating the carbon impact of their products accurately, making it a key consideration for emissions reporting.
• UK Food Strategy and SECR: In the UK, the Streamlined Energy and Carbon Reporting (SECR) scheme and the UK Food Strategy require food producers to report their energy usage and emissions, particularly if they are large businesses.

As regulatory scrutiny increases, food producers need accurate, verified carbon data to stay compliant.

Turning to Technology

Food producers are solving these challenges in one of two ways: establishing dedicated in-house teams or turning to innovative technology such as Klimato. With Klimato, food producers have a user-friendly, affordable, and verified way of demonstrating the carbon footprint data of their products.

However, many food producers are using solutions like Klimato as an opportunity to grow their revenue.

Not only are they doing that by deepening client relationships through accurate, accredited carbon data on demand, but they’re also tapping into a community of potential clients by joining our database. The Klimato database has hundreds of restaurants, hotels, contract caterers, universities and schools. In other words, a whole host of potential customers and partners.

On top of that, food producers such as Flora Food Group are also using Klimato’s carbon labeling solution to make their products stand out in a crowded and competitive landscape. According to PwC's 2024 Voice of the Consumer Survey, 80% of consumers were willing to pay more for sustainably produced or sourced goods, with an average premium of 9.7% – despite the current cost-of-living crisis.

These figures show just how much the modern customer values transparency and sustainably – highlighting a considerable source of potential revenue growth.

By offering people exactly what they’re asking for – transparent evidence of sustainability – Flora Food Group and similarly-minded food producers show that they’re listening and can build early brand momentum and revenue growth in an increasingly competitive market.

The Takeaway

The writing's on the wall – or rather, on the menu. Consumers demand sustainable choices and transparent practices, while regulatory bodies are poised to enforce them. Food producers can no longer afford to view carbon footprint analysis as a burden.

Instead, it's an opportunity to grow revenue, build trust, and strengthen customer relationships. By embracing tools like Klimato, producers can turn this challenge into a competitive advantage, proving that sustainability and profitability can indeed go hand in hand. 

The future of food lies in transparency and responsibility, and those who adapt first will reap the rewards. Speaking of rewards, food producers now get 50% off their first 24-month contract with Klimato! To learn more, book a free demo today.