Going green: Industry making “major strides” in hitting sustainability targets

17 Oct 2022 --- As sustainability becomes increasingly embedded into F&B operations, manufacturers and brands are moving toward carbon zero targets, reducing greenhouse gasses (GHG) and implementing best practices into businesses more and more. It is integral to keep pace with growing global demand from consumers for food and beverage products and solutions that are good for health and also the planet.

Although green targets may have taken a back seat during difficult times of conflict, supply chain challenges and recovering from the COVID-19 pandemic, food companies insist they are as committed to improving sustainability as ever. 

Cargill and ADM speak to FoodIngredientsFirst about their mid-term sustainability targets.

“The events of recent years present new challenges, but our commitment to our sustainability targets remains unwavering. Every day, our teams are working to reduce emissions across our global supply chains and build sustainable practices into farming practices around the world,” explains Heather Tansey, VP of global sustainability at Cargill.

Cargill aims to reduce its absolute greenhouse gas emissions (GHG) by 10% by 2025 and 30% of its extended supply chain emissions per ton of product sold by 2030.

Similarly, ADM says it’s on track to meet sustainability targets. 

ADM highlights its goal to be deforestation-free by 2025 throughout all its supply chains.“We’re making major strides to reduce our GHG emissions through our Strive 35 plan. By 2035, we’re dedicated to reducing our absolute GHG emissions from our facilities (Scope 1) and from electricity from the grid (Scope 2) by 25% against a 2019 baseline,” underscores Michelle French, director of global sustainability programs at ADM. 

“As we continue to build upon Strive 35, we’ve also committed to reducing our Scope 3 absolute GHG emissions by 25% by 2035 against a 2019 baseline,” she continues.

Meanwhile, dairy cooperative Arla Foods announced earlier this month that it will motivate farmers to hit their 2030 sustainability goals through a €500 million (US$490 million) annual incentive program that rewards green practices. 

“Understanding the cow, precision feeding and best animal welfare practices” are key to improving yields, Peder Tuborgh, Arla’s CEO, explained as he recounted how in his native Denmark, half a million cows produce the same amount of milk as a million and a half did in 1963 when he was born.

Full emissions reduction, targeting Scope 3
Scope 3 refers to emissions associated with a company’s full supply chain.

“Our reduction efforts focus on five categories: purchased goods and services, fuel and energy-related emissions, upstream transportation and distribution, waste and the processing of sold products and goods,” explains French about ADM’s Scope 3 focus.

According to ADM, close collaboration with industry partners is key to achieving reduction along the chain. We can address “our customers’ emissions by working directly with growers to implement advanced agriculture practices that address water quality and soil health, reduce emissions and sequester carbon in the soil,” she continues.

ADM highlights its goal to be deforestation-free by 2025 throughout all its supply chains.

To target Scope 3 emissions, Cargill focuses on its most pollutant supply chains and regions.Vertical cocoa farming allows for improved yields, climate-resilient farming practices and greater productivity while using fewer resources.

Examples include the BeefUp Sustainability program, which aims to reduce emissions in the company’s North American beef supply chain by 30%, and commitment to supporting farmer-led adoption of regenerative agriculture practices across 10 million acres of farmland in North America. 

Cargill also supports farmer access to new carbon and ecosystem services markets. Through its RegenConnect program, they pay farmers for improved soil health and positive environmental outcomes, including payment per metric ton of carbon, sequestered.

Tracing the problem
ADM deems transparency at the “heart of our sustainability efforts.” As companies and consumers try to be aware of where ingredients come from and how they end up on the plate.

“In 2015, we developed a No Deforestation, No Peat and No Exploitation (NDPE) policy for our palm oil supply chains. Since then, we’ve actively taken steps to work directly with our palm oil stakeholders and suppliers to continue advancing our sustainability goals in this area,” continues French.

Regarding palm oil, ADM sources directly from 11 direct suppliers from 17 refineries and over 1,600 mills. Being able to track products back to the plantation of origin. 

“Risk assessments and action plans are also developed to improve traceability in high-risk areas, and our traceability data from each mill is verified by a third-party to ensure accuracy and increase transparency,” French continues. 

To reach their sustainability goals, Cargill allows customers to access details of crop growth and processing through digital platforms – CocoaWise, PalmWise and SoyaWise. A third party additionally verifies the data.

Restoring forests and palm oil sustainability
Cargill is working on initiatives to protect and regenerate the land and restore it. ADM, meanwhile, leverages its palm scorecard that provides transparency of its palm oil sourcing. 

Arla expects yields of cows to increase and not diminish as its farms delve into sustainability.“We’re working to restore altered land and protect biodiversity to create a forest-positive future. For example, in Côte d’Ivoire, we recently extended our agroforestry partnership with the PUR Projet. Through this partnership, Cargill helps fund the cost of tree seedlings and provides agroforestry expertise on the ground, encouraging cocoa farmers to implement agroforestry practices to regenerate the ecosystem they depend upon,” explains Tansey.

“It’s a program that’s having a clear impact. To date, we have helped more than 21,000 farmers implement agroforestry projects and planted more than 1.2 million multi-purpose shade trees. As these trees grow and develop, they have the potential to sequester up to 136,000 tons of CO2 by 2040,” he underscores.

ADM uses a third-party scorecard that proactively assesses and screens palm oil suppliers for them to align with the company’s standards.

“Monitoring and verification help us verify if suppliers’ management and control systems are suitable for sourcing palm oil responsibly through the Palm Supplier Scorecard, which ensures high-risk sourcing areas in the supply base are actively monitored.” 

The company also publishes semi-annual progress implementation reports on its palm oil action plan and updates of its mill lists and traceability information.

Vertical cocoa farming
Future projects such as Cargill’s Aerofarms will allow for improved yields, climate-resilient farming practices and greater productivity while using fewer resources. However, the company flags that it is not yet possible to supplement traditional cocoa productions with controlled environment ones.

“Conducting large-scale research in a fully controlled environment offers a unique opportunity to more rapidly advance our understanding of optimal cocoa production systems and improved cocoa varieties,” highlights Tansey. 

“While still in early stages, we believe this project will yield new insights into optimal cocoa production, leading to faster tree growth and higher yields, as well as speed development of varieties with enhanced disease and insect resistance or even help unlock the cocoa bean’s full flavor and color potential,” he concludes.

By Marc Cervera