Enhancing Environmental Performance in the Food Industry through Traceability and Standardization

Embracing environmental traceability, standardized metrics, and automation can significantly enhance environmental performance in the food industry

FREMONT, CA: As the demand for sustainable food grows, many companies face challenges in setting ambitious environmental goals due to the complexities of measuring and reporting their environmental performance. However, implementing environmental traceability, which involves tracking the environmental impact of a product throughout the supply chain, can streamline and improve this process.

A survey conducted among various food and drink companies revealed that 79 percent of firms struggle to measure and report their environmental performance along different supply chain stages. Obtaining data on carbon emissions related to purchased materials, transportation, distribution, and processing poses a significant challenge. Meeting the environmental data requirements of various stakeholders, including customers, regulators, and investors, involves labor-intensive data collection and reporting efforts. Implementing traceability enables food companies to enhance transparency and efficiency in environmental reporting. By tracking a product's environmental impact throughout its lifecycle, from production to distribution, companies can automate the exchange of environmental data using digital technologies. This reduces costs and amplifies the benefits of improving environmental performance.

Standardization of environmental metrics plays a crucial role in rigorously measuring performance. Currently, several standards are in use, making comparing environmental performance across food companies difficult. Researchers have developed standardized environmental metrics encompassing greenhouse gas emissions, air pollutants, water use, material efficiency, and waste to address this. These metrics provide a framework for measuring environmental impacts consistently and enable companies to demonstrate high environmental performance aligned with global sustainability goals, such as the United Nations Sustainable Development Goals.

Automating the exchange of environmental data among food companies is another crucial aspect. By adopting standardized environmental metrics, data can be represented using a unified data description language, such as Extensible Markup Language (XML). This allows companies to enter data once and automatically share it through digital platforms. Automation reduces the time and cost associated with data sharing, as the standardized XML format accommodates the data structure requirements of different stakeholders. Moreover, companies retain control over data ownership and confidentiality, as data sharing does not rely on a centralized platform.

To drive systemic changes, food companies should leverage existing networks within the food system to encourage collaborative environmental reporting. Consistent data reporting forms often encourage suppliers to share environmental data when faced with requests from multiple retailers and large manufacturers. A standardized reporting form would improve efficiency, reduce costs, and enhance data quality. This approach could create a domino effect, motivating all suppliers to report their environmental impacts to avoid losing customers.

Automation facilitates efficient data exchange, reducing time and cost while ensuring data ownership. Collaboration and standardization across the food supply chain can drive systemic changes and foster a culture of environmental responsibility. With these advancements, the food industry can embrace sustainability, meet consumer demands, and contribute to a more sustainable future.