(Credit: Pixabay)A new reporting tool will help the food industry measure and report on their Scope 3 greenhouse gas emissions produced from the agricultural supply chain.
The Scope 3 emissions reporting feature from research company HowGood pulls data from its software-as-a-service platform that has impact analysis on more than 33,000 ingredients from across eight ESG metrics. HowGood says it will help consumer packaged goods brands and food service companies meet the increasing demands of ESG reporting.
The database is designed specifically for food companies and the Scope 3 tool uses specific ingredient data sets including crop- and location-based emission factors and analyzes information such as specific growing factors. The reporting tool uses emission information from a database of more than 600 vetted sources, including lifecycle assessment research, peer-reviewed environmental impact studies, commercial databases, and government and non-government publications.
The tool is designed specifically for the food industry and does not rely on traditional Scope 3 tracking methods, such as international average emissions data or a spend-based method. HowGood says that will help companies get a more accurate look at the impact of their operations. More accurate data will also help them measure and manage their results over time, the company says.
The food industry accounts for nearly a quarter of the world’s emissions. Most of that comes from crop production, land use, and supply chains. HowGood says 87% of a food company’s greenhouse gas emissions are in the Scope 3 category.
Food companies are increasingly addressing those impacts. Aramark says it will cut emissions associated with the food it provides in the United States by 25% by 2030 in part by identifying the emissions produced by each dish. Nestlé says Scope 3 emissions account for 95% of its total emissions and it is tackling them by improving supplier data and monitoring and using a science-based methodology for calculating emissions.
Scope 3 reporting platforms are also becoming more common, especially with more regulations such as the Security and Exchange Commission’s proposed disclosure rules. This year Sphera has added a life cycle assessment automation software to its ESG offerings, which include addressing Scope 3 emissions. Ndustrial also expanded the capabilities of its energy software to automate the reporting of Scope 3 emissions.
HowGood says its tool is intended for companies that have made public carbon reduction targets or set internal carbon goals. The reporting system will focus on purchased goods and services and upstream transportation and distribution for its initial release.
The company says those categories account for more than 70% of an operation’s total emissions, and they are also the most difficult to measure and manage. HowGood says that when using only global averages, Scope 3 information especially can be inaccurate.
The Scope 3 reporting tool is built on the GHG Protocol’s Product Standard and Corporate Value Chain Standard. It is also CDP and GRI-compliant.
The reporting capabilities are available now for consumer packaged goods brands and food service companies. The offering will expand to retailers and suppliers during the first quarter of 2023.
“There is mounting pressure from regulatory bodies and consumers alike for food companies to reduce their carbon emissions, and yet few tools are available to accurately measure the most impactful parts of the agricultural supply chain,” says HowGood CEO Alexander Gillett. “It’s critical for food brands to be able to quickly and easily identify their most problematic ingredients so that they can actually improve their footprint – and then communicate about those improvements downstream to retailers and consumers.”
