Carbon Measurement Standards

GHG Protocol

The most widely used international accounting standard for quantifying and managing greenhouse gas emissions was established in 2001 through a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). Essential framework for food and beverage operations seeking credible emissions measurement.

Scope 1, 2, and 3 Definitions

Developed by the Greenhouse Gas (GHG) Protocol, these emission boundaries are particularly relevant for food and beverage operations:

Scope 1: Direct Operations Emissions

• Fuel burned in company delivery vehicles

• Natural gas used in commercial kitchens (ovens, grills, fryers)

• Refrigerant leaks from commercial refrigeration systems

• On-site food preparation and cooking processes

Scope 2: Purchased Energy Emissions

• Electricity powering kitchen equipment, refrigeration, and facilities

• Generated at power plants but enabled by your energy consumption choices

• Significant for food operations due to the high energy demands of commercial kitchens and cold storage

Scope 3: Value Chain Emissions

• Food and ingredient production, farming, and processing

• Transportation of supplies and ingredients

• Business travel and employee commuting

• Food waste disposal and packaging end-of-life

• Typically represents 80-90% of total emissions for food and beverage operations

Boundary Definitions

Upstream Emissions: Indirect greenhouse gas emissions in the supply chain feeding into food and beverage operations:

• Ingredient sourcing and farming practices

• Food processing and manufacturing

• Packaging production

• Transportation to distribution centres

Downstream Emissions Releases occurring after your direct operations in distribution and consumption:

• Customer transportation to venues

• Food consumption and preparation by end users

• Packaging, disposal, and waste management

• Franchise operations (where applicable)

Operational Boundaries: Emissions sources from operations counted in your GHG inventory based on defined control or ownership. For food and beverage operations, this includes:

• All kitchen and food preparation activities

• Refrigeration and cold storage systems

• On-site waste management

• Direct customer service operations

Organisational Boundaries: Entities whose emissions you account for when reporting total greenhouse gas outputs:

• Owned and operated locations

• Franchised operations (where you have operational control)

• Catering and off-site service operations

• Central commissary or production facilities

Consolidation Approaches

Equity Share Approach: Account for emissions in proportion to your ownership percentage in operations. Useful for joint ventures in food service or shared kitchen facilities.

Control Approach: Include 100% of emissions from operations you fully control, regardless of ownership share. Most common for food and beverage operators with multiple locations or franchise systems.

Carbon Accounting Fundamentals

Core Concepts

Carbon Footprint: Total greenhouse gas emissions from your food and beverage operation, including direct operations, energy use, and entire value chain impacts.

Carbon Accounting Systematic measurement and recording of greenhouse gas emissions across all aspects of food and beverage operations, from ingredient sourcing to waste disposal.

Carbon Credit Tradeable permits allow the emission of specific amounts of greenhouse gases. Food and beverage operations can purchase credits to offset unavoidable emissions.

Carbon Offset Compensating for emissions by funding equivalent reductions elsewhere, such as:

• Renewable energy projects

• Reforestation initiatives

• Methane capture from agricultural operations

• Energy efficiency programs in developing countries

Measurement Approaches

Conservative Approach Methodology, reducing the risk of underestimating emissions in carbon accounting. Essential for food and beverage operations to ensure credible sustainability claims.

Environmentally-Extended Input-Output (EEIO) uses economic transaction data to determine emissions by analysing spending patterns across supply chains. Particularly useful for food operations with complex ingredient sourcing.

Multi-Regional Input-Output (MRIO) tracks financial flows between industrial sectors in different economies to calculate embodied emissions in traded products. Critical for food and beverage operations with international supply chains.

Greenhouse Gas Types in Food & BeverageS

Primary Greenhouse Gases

Carbon Dioxide (CO2)

• Primary emission from fossil fuel combustion in kitchens and transportation

• Released through energy use in cooking, refrigeration, and facility operations

• The most significant greenhouse gas for most food and beverage operations

Methane (CH4)

• Significant in food and beverage through agricultural supply chains

• Released from livestock farming and rice production

• Natural gas leaks from kitchen equipment

• Food waste decomposition in landfills

• 84 times more potent than CO2 over a 20-year period

Nitrous Oxide (N2O)

• Released from agricultural fertilisers used in ingredient production

• Vehicle emissions from delivery and transportation

• Industrial food processing

Fluorinated Gases (F-gases)

• Used in commercial refrigeration systems

• Air conditioning for food service facilities

• Extremely potent greenhouse gases require careful management

Global Warming Potential (GWP)

Metric comparing heat-trapping effects of different gases to carbon dioxide, used to convert emissions to standardised CO2 equivalent (CO2e) values.

Example Calculation:

• 2 tons CH4 emissions × 84 GWP = 168 tons CO2e

• Essential for comparing different emission sources in food operations

Environmental Claims & Terminology

Sustainability Goals

Sustainability: Meeting current operational needs without compromising future generations' ability to meet their needs. For food and beverage operations, this means responsible sourcing, efficient operations, and minimal environmental impact.

Carbon Neutral: Achieving net-zero carbon emissions by calculating total greenhouse gas impacts and offsetting equivalent amounts through verified reduction projects. Starting point for many food and beverage sustainability commitments.

Climate Positive: Going beyond carbon neutrality to actively remove additional greenhouse gases from the atmosphere. Achieved through investments in direct air capture, reforestation, or regenerative agriculture practices.

Operational Strategies

Renewable Energy Energy from regenerating sources like solar, wind, and geothermal. Produces minimal greenhouse gases compared to fossil fuels. Increasingly viable for food and beverage operations through power purchase agreements and on-site installations.

Circular Economy is an Economic model focused on resource reuse, recycling, and waste reduction. For food operations, this includes:

• Composting food waste

• Reusable packaging systems

• Equipment lifecycle management

• Supply chain optimisation

Life Cycle Assessment (LCA) Comprehensive analysis of environmental impacts from cradle to grave, including:

• Ingredient sourcing and farming

• Food processing and packaging

• Transportation and distribution

• Consumption and disposal

Decarbonisation Process of reducing carbon emissions across all operations:

• Transitioning to renewable energy

• Improving energy efficiency

• Optimising transportation and logistics

• Implementing sustainable sourcing practices

Key Organisations & Standards

Standard-Setting Bodies

The Science-Based Targets initiative (SBTi) enables food and beverage companies to set emissions reduction goals aligned with climate science. Provides validation for corporate net-zero strategies.

CDP (formerly Carbon Disclosure Project) is a Global environmental reporting system where food and beverage companies disclose climate impacts and management strategies.

The Task Force on Climate-related Financial Disclosures (TCFD) Framework for climate risk reporting is increasingly relevant for food and beverage companies facing supply chain climate risks.

The Global Reporting Initiative (GRI) develops sustainability reporting standards that cover the economic, environmental, and social impacts specific to food and beverage operations.

Research Organisations

World Resources Institute (WRI) is a Global research organisation focused on sustainable resource usage, providing frameworks and tools for food system sustainability.

The World Business Council for Sustainable Development (WBCSD) is a CEO-led association of international companies that collaborate on sustainability, including many leaders from the food and beverage industry.

This guide provides the foundation for understanding carbon measurement in food and beverage operations. Foda Strategy applies these frameworks specifically to the unique challenges and opportunities in the food service and retail sectors.