How to Stay Ahead of Climate Regulations: A 2025 Roadmap for Food Businesses

Staying ahead of climate regulations isn’t just about avoiding fines—it’s about future-proofing your business, protecting profit margins, and responding to a growing demand for sustainability from consumers, investors, and partners.

Why Climate Regulations Matter for Food Businesses

Food production accounts for more than 34% of global greenhouse gas (GHG) emissions. With such a significant environmental impact, the food industry is a major target for climate legislation worldwide. Governments, industry bodies, and consumers are increasingly holding food businesses accountable for their carbon footprints. Key drivers include:

• Regulatory Pressure: Stricter laws on sustainability reporting, such as the EU’s CSRD and the UK's Task Force on Climate-Related Financial Disclosures (TCFD), mean businesses must measure, disclose, and actively reduce emissions.
• Consumer Expectations: According to a report by NielsenIQ, 73% of consumers say they would change their consumption habits to reduce their environmental impact (NielsenIQ).
• Financial Incentives: According to the OECD, sustainable practices can lead to lower operating costs, better margins, and eligibility for green financing opportunities.

Inaction isn’t an option. Businesses that delay could face compliance penalties, reputational damage, and missed market opportunities.

The Complete Roadmap for Climate Regulation Compliance

1. Understand Your Scope 1, 2, and 3 Emissions

A complete understanding of your emissions profile is essential for regulatory compliance. The Greenhouse Gas Protocol offers a standardized framework for measuring emissions:

• Scope 1: Direct emissions from owned sources (e.g., company vehicles, on-site fuel combustion).
• Scope 2: Indirect emissions from purchased electricity, heat, or steam.
• Scope 3: All other indirect emissions from your value chain, such as suppliers, transportation, and waste. Scope 3 emissions typically represent the majority of a food business's carbon footprint—often 70% or more.

We recommend conducting a comprehensive emissions audit, with tools like the GHG Protocol’s Scope 3 Guidance and Klimato’s carbon footprint calculator simplifying the process.

2. Stay Informed About Upcoming Regulations

Several key regulations are set to reshape the food industry in 2025:

• Corporate Sustainability Reporting Directive (CSRD):
  Effective from 2025, this EU regulation will require companies to disclose detailed information on environmental impact, including Scope 1, 2, and 3 emissions. This affects businesses with operations in the EU or supply chains connected to EU markets.
• UK Streamlined Energy and Carbon Reporting (SECR):
  The SECR framework mandates that large UK companies report on energy use and carbon emissions annually.
• EU Green Claims Directive:
  This regulation targets misleading environmental claims and ensures that businesses providing sustainability claims can back them with evidence. Companies must verify their claims with recognized methodologies and avoid vague terms like "eco-friendly" unless substantiated.
• EU Deforestation-Free Regulation (EUDR):
  Starting in 2025, the EUDR requires businesses to prove that products such as coffee, cocoa, soy, and beef sold in the EU do not contribute to deforestation. This regulation affects food businesses with international supply chains and mandates traceability and due diligence reporting.

3. Invest in Digital Tools for Accurate Reporting

Manual emissions tracking is inefficient and prone to errors. Digital solutions such as Klimato can streamline data collection, automate calculations, and generate reports aligned with regulatory standards.

With Klimato, you get:

• Emissions tracking for each product, dish, or service.
• Reporting that meets the requirements of frameworks like the CSRD and SECR.
• Integration capabilities with procurement, inventory, and point-of-sale systems.

4. Engage Your Supply Chain to Address Scope 3 Emissions

Reducing Scope 3 emissions requires collaboration with suppliers, distributors, and logistics partners. This can be challenging, but it’s essential for meaningful reductions and regulatory compliance.

Strategies to reduce Scope 3 emissions include:

• Supplier transparency: Request data on suppliers' emissions and sustainability practices.
• Sustainable sourcing: Prioritize suppliers with low-carbon or no deforestation practices.
• Collaboration: Work with suppliers to set joint reduction targets and share best practices.

We recommend implementing a supplier engagement program and setting clear expectations for sustainability performance. The SBTi guide provides useful insights, as do our inhouse sustainability experts.

5. Communicate Transparently with Customers and Stakeholders

Transparency isn’t just about compliance—it’s a competitive advantage. Consumers, investors, and partners value businesses that openly share their sustainability efforts.

Ways to enhance transparency include:

• Carbon labeling: Display the carbon footprint of dishes on menus, providing context and educational information.
• Annual sustainability reports: Publish detailed reports that align with recognized frameworks.
• Content marketing: Share blog posts, social media updates, and case studies highlighting your sustainability journey.

Prepare Your Food Business for 2025 and Beyond

Climate regulations are evolving, but preparation today leads to resilience tomorrow. By understanding your emissions, staying informed, investing in the right tools, and engaging your stakeholders, you can turn climate compliance into a strategic advantage.

Ready to simplify your emissions tracking and reporting? Book a demo with Klimato and see how our platform can help you stay ahead of the curve.