Net zero: Syncing ambition with outcomes across the CPG value chain

MAKING NET ZERO A REALITY ACROSS THE FOOD AND BEVERAGE INDUSTRY

The global food system is a massive and intricate network that supports lives and livelihoods everywhere in the world. But its complexity and size also lead to an enormous burden on the environment. Food and beverage companies are responsible for approximately one third of global greenhouse gas emissions. The industry, then, must make substantial changes if it is to achieve the Paris Agreement goal of limiting the increase in the globe’s temperature to 1.5 degrees Celsius. This task will be impossible without significant work that spans the industry – including a step change in collaboration along every step of the value chain.

THE PROGRESS WE’VE MADE 

To determine the level of collaboration needed across the value chain for net zero to become a reality, AlixPartners conducted proprietary research into carbon reduction commitments made by 235 of the largest food and beverage companies in North America and EMEA. Companies came from all parts of the supply chain, including suppliers, manufacturers, and food retailers. We also reviewed financial indicators and conducted executive surveys with industry leaders to gain qualitative insight.

Nearly all companies among those we studied have set up programs with reduction commitments and targets. While there was only modest progress immediately following the Paris Agreement in 2015, many of the largest CPG companies were among the early movers and announced detailed plans as early as 2017 that committed them to reduce millions of metric tons of carbon emissions.

Download the full report to read more, here.