The health of the planet is a major concern, with issues such as climate change, deforestation, and biodiversity loss necessitating sophisticated industry action.
The decisions made today will have lasting consequences for ecosystems, climate stability, and societal wellbeing. In recent years, there has been a marked rise in public awareness regarding these environmental challenges. Consumers are now more conscious of the environmental impact of their choices, including the food they consume, and this awareness has led to a growing demand for sustainable practices across various industries.
Click on the video below hear how unlocking the value of sustainable protein production can be a business opportunity.
For companies operating within the animal feed and protein industry, this shift in public expectations represents both a strategic challenge and an opportunity. There is a clear imperative for businesses to adopt practices that reduce their environmental footprint, aligning with the values of an increasingly eco-conscious market.
This alignment is not solely a matter of public relations – it is a strategic business imperative. Tracking and mitigating the environmental impact of animal feed and protein production can result in more efficient operations, cost reductions, and an enhanced corporate reputation.
By integrating sustainability into core business strategy, companies can create a mutually reinforcing cycle where environmental stewardship and business performance are not only compatible but also synergistic, paving the way for a more sustainable and resilient future.
Tracking Scope 3 emissions
As awareness of the environmental impact of food production grows, stakeholders – from consumers to investors – are applying pressure on companies to address their ecological footprint. This scrutiny has led to a rise in regulatory frameworks and certification programs aimed at promoting sustainable sourcing and production, which necessitates sophisticated environmental footprinting.
Many companies are now expected to measure, report, and actively manage their environmental footprint. The target is often now looking at Scope 3 emissions, which refers to the indirect greenhouse gas emissions that occur throughout a company's value chain, both upstream and downstream.
For animal feed and animal protein producers, Scope 3 emissions cover a broad spectrum of activities, including sourcing raw materials, land use changes, feed production, transportation, farming practices, processing, and the end-use of their products. This includes emissions from growing feed crops, manufacturing feed ingredients, methane emissions from livestock, manure management, and the processing and distribution of animal protein products.
Complex challenges across supply chains
Environmental footprinting of the scale required to accurately track Scope 3 emissions is not an easy task. The work requires an ability to gather and monitor data from across the entire value chain, which includes collaborating across complex supply chains and having access to the necessary data. Access to the data can be one of the more complicated challenges to face, with suppliers and partners in the supply chain potentially hesitant to share detailed emissions data due to confidentiality concerns or a lack of incentive to do so.
Another complexity to navigate is the need not only to measure carbon output but other emissions, such as nitrogen, water use, biodiversity, land use and other factors. Being able to successfully gather accurate data on these emissions requires a variety of measurement tools and the means to ensure that quality data is produced.
The measurement of these emissions is more important than ever because regulation requires more detailed reporting and disclosure, alongside stricter environmental standards. In Europe, the Corporate Sustainability Reporting Directive (CSRD) represents a significantly broader scope of mandatory sustainability reporting. It will eventually apply to all EU-based large companies, as well as those that hold some activity within the economic region.
In addition to measurements on emissions, it will also require insights into employment practices, community engagement, and supply chain management – adding more pressure on the animal feed and protein industry to disclose sustainability information across a range of fronts.
Sustainability is an opportunity
As a result of these demands, companies need to find immediate solutions to get ahead of requirements. However, rather than simply being an added burden, the necessary collection of additional data provides an opportunity for forward-looking businesses to unlock value behind the insights delivered.
This is where an effective end-to-end LCA solution can help, by making footprinting across the whole value chain accessible, scalable, and cost-efficient. The technology allows for an accurate calculation of a producer’s environmental footprint, helping to make real sustainability improvements and unlock new value stream opportunities. Such a solution can also allow for the management of feed, farm and processing footprint in one place, across a range of animal feed and protein sources, from salmon in Norway to beef in Argentina.
An effective LCA platform enables the measurement and reporting of Scope 3 emissions, as well as allowing for the development of abatement strategies. It can also highlight farming best practices and identify hotspots within the business, whilst a lower footprint is also associated with more efficient farming.1 The reporting of emissions is also facilitated by providing a credible and transparent footprint report, which can be used to cope with new regulations that already exist and those that will be developed in the years to come.
On a consumer level, the ability to meet consumer demand for sustainably sourced foods allows for the ability to price at a premium for an environmentally conscious product. Being able to effectively signpost sustainable products, through labelling or marketing, is also another means to differentiate a company or product on the market, especially as consumers increasingly want to live more sustainably.2
At an operational level, the ability to gather sustainability insights and take action can allow access to green capital and carbon value. This means tapping into additional finance made available to those enterprises that are pursuing environmental, social, and governance (ESG) action, or monetising carbon credits from their sustainable operations.
dsm-firmenich has developed Sustell™, an industry-leading life cycle assessment platform, to help the industry utilise farm-level data to simplify the process of measuring, validating, and improving the environmental sustainability of animal protein. The tool allows for precise, tailored environmental footprinting across the animal protein value chain, unlocking the range of benefits that emerge from producing sustainable food products. With the aid of an LCD platform, it is possible to create an ecosystem that connects upstream data with the opportunities that exist at the downstream consumer level.
References
1. University of York. Food for thought: Global study shows environmentally-friendly farming can increase productivity. August 2018.
2. World Economic Forum. Consumers want sustainable options. What food producers, suppliers, and retailers can do now. January 2023.