Transparency Pays Off: How Sustainability Practices Can Drive Profitability in Food Businesses

As consumers demand transparency and sustainability, food businesses that rise to the challenge can unlock significant profitability. But how can practices like carbon footprint tracking, climate labeling, and transparent reporting impact your bottom line? Let’s break it down step by step.

Step 1: Measure What Matters

You can’t improve what you don’t measure. By calculating the carbon footprint of your menu items or food production processes, you gain actionable insights into where emissions—and costs—are concentrated. According to the Carbon Trust, businesses that monitor their carbon emissions can reduce operating costs by up to 20% through energy efficiency and process optimization.

Take Sodexo’s canteen at Cytiva, which worked with Klimato to measure and track the climate impact of its meals. By leveraging carbon footprint data, they identified opportunities to optimize their menu offerings, aligning their climate targets with operational efficiencies. Tools like a carbon footprint calculator empower businesses to identify similar opportunities for improvement.

Step 2: Communicate Transparently with Climate Labels

Once you’ve measured your impact, the next step is to communicate it effectively. Research from the Harvard Business Review reveals that 65% of consumers prioritize sustainability when making purchasing decisions, yet only about 26% actually do so. Climate labels are an excellent way to provide this transparency, allowing customers to make informed choices.

For example, Voco Hotels implemented Klimato’s carbon labels across their event menus, giving clients visibility into the climate impact of their food choices. This transparency not only strengthened customer trust but also highlighted their commitment to sustainability. The result? Enhanced guest satisfaction and differentiation from competitors.

Step 3: Optimize Your Menu and Operations for Profitability

Sustainability and profitability go hand in hand. Optimizing menus to include more plant-based dishes can significantly reduce costs while aligning with environmental goals. According to WRAP UK, plant-based proteins can cost up to 50% less than animal-based proteins, depending on sourcing.

Churchill College, who worked with Klimato to reduce the climate impact of their catering, optimized their menu by offering more low-emission meals. This strategy not only cut emissions by 55% but also aligned with consumer demand for climate-friendly dining options, creating a win-win for profitability and sustainability.

Step 4: Leverage Sustainability for Marketing and Branding

Authenticity is non-negotiable in today’s market. A Nielsen report revealed that products marketed as sustainable grow 5.6 times faster than those that aren’t. Transparent sustainability practices aren’t just operational tools—they’re powerful marketing assets.

Flora Food Group used sustainability as a central part of their branding strategy. By showcasing their collaboration with Klimato and their commitment to carbon labeling, they demonstrated leadership in climate-conscious food production, which resonated strongly with their customers and business partners.

Step 5: Track ROI and Iterate

Sustainability isn’t a one-off effort—it’s an ongoing journey. Businesses that track their progress and refine strategies based on measurable results see the greatest long-term impact. Advanced reporting tools enable businesses to monitor progress and uncover insights, such as the correlation between offering low-emission meals and improving profit margins.

Sodexo’s restaurant at AstraZeneca achieved a 66% reduction in emissions by tracking climate data and iterating their menu strategies. This progress not only advanced their sustainability goals but also demonstrated to stakeholders the value of their efforts, strengthening their market position.

Take the First Step

Transparency and sustainability aren’t just about doing the right thing—they’re about doing the smart thing for your business. From cutting costs to building customer trust, the benefits of embracing sustainability practices are clear.

Ready to drive profitability through sustainability? Start by calculating your carbon footprint with Klimato’s carbon footprint calculator and take the first step toward a greener, more profitable future.