Why Scope 3 Emissions Matter

The global food system accounts for roughly one-third of all greenhouse gas emissions. While grocery retailers directly control about 7 percent of these emissions (Scope 1 and 2), the vast majority come from Scope 3 sources across their value chains.

These indirect emissions include everything from raw material sourcing, food processing, and packaging production to transport, storage, and end-of-life treatment. They are difficult to measure but essential to understand. Without addressing Scope 3, companies risk missing the full picture of their climate impact and may overlook opportunities for significant progress.

Tackling Scope 3 emissions brings multiple benefits. It gives companies a more complete view of their environmental footprint. Limiting attention to direct emissions can create blind spots that underestimate a business’s true climate contribution. For many organisations, the greatest emissions and the best opportunities for cost reduction are found in the supply chain. Measuring Scope 3 enables retailers to identify emission hotspots, assess energy and resource risks, and better understand which suppliers are leading or lagging on sustainability performance.

The Challenge for Retailers

Taking responsibility across the value chain is not straightforward. Accurately assessing environmental impact at the product level requires detailed data collection and supply chain mapping. This process is resource intensive and technically complex. Many organisations still rely on broad category-level data, which lacks the granularity needed to monitor or verify the impact of specific changes such as ingredient swaps or process improvements.

Leveraging Innovation to Drive Impact

To drive more precise climate action, innovative sustainability solutions like inoqo’s Product Climate Footprint (PCF) Assessment are becoming essential. Unlike traditional tools that rely on broad category-level estimates, inoqo solution provides a highly scalable and product-specific approach—empowering retailers to measure and manage the climate impact of their entire assortment with confidence. 

Built on a proprietary Life Cycle Inventory (LCI) database and aligned with IPCC and EU PEF guidelines, inoqo’s methodology covers over 160 crops, more than 100 farming processes, and emissions data from over 200 territories. With 193,000 ingredients and country-specific emission factors, it delivers consistent, science-based results and supports secure, transparent sharing of primary data. This level of detail enables clearer identification of emissions hotspots, stronger supplier engagement, and meaningful assessment of changes.

Enabling Change Through the Value Chain

Driving meaningful climate action beyond a retailer’s own operations requires deep collaboration across the entire supply chain. Strong, trust-based partnerships with suppliers are essential. Retailers can play a catalytic role by encouraging suppliers to share emissions data, transition to renewable energy, and adopt more sustainable practices. These efforts not only reduce emissions but also contribute to building more resilient, future-proof value chains.

Transparency is equally important on the consumer side. By leveraging granular emissions data to provide product-level climate scores or similar indicators, retailers can empower customers to make informed, low-impact choices—supporting the growing demand for accountability and sustainability in food systems.

Next Steps

Earth Day 2025 reminds us that climate responsibility extends far beyond our direct operations. For food and grocery retailers and F&B brands, the path forward is clear:

• Prioritise Scope 3 emissions in sustainability strategies to address the full impact.
• Invest in methodologies that enable product-level assessments.
• Engage suppliers to adopt renewable energy and share transparent emissions data.
• Empower consumers through clear communication of environmental impacts.

Our power lies in action. By taking responsibility across the entire value chain, grocery retailers have a unique opportunity to drive meaningful change—supporting the planet while accelerating the shift to a cleaner, more resilient economy. inoqo’s platform delivers the insights needed to make smarter procurement choices, target decarbonization where it matters most, and engage suppliers in collaborative, data-driven improvement efforts. With the right insights and partnerships, climate leadership becomes not just possible, but practical. 

Reach out to us at hello@inoqo.com to explore how we can guide your business towards a low-impact future.

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