Cutting Scope 3 Emissions by Reducing Supermarket Plastics

Research provided by DS Smith reveals that 51% of food and drink items in UK supermarkets are packaged in unnecessary plastic out of 1500 supermarkets.

This means that over half of all consumption products could be safely replaced with alternatives.

This directly impacts Scope 3, Category 1 emissions due to the association with purchased goods and services for retailers and food manufacturers.

Companies could significantly reduce their indirect emissions by switching to more sustainable packaging options

Key findings:

• 90% of ready meals and meal kits are wrapped in unnecessary plastic
• 89% of bread, rice, and cereals use avoidable plastic packaging
• 83% of dairy products and 80% of meat and fish are packaged in plastic that could be replaced

End-of-Life Treatment of Sold Products

The study estimates that unnecessary food and drink plastic packaging amounts to 29.8 billion avoidable items annually across the UK.

This has substantial implications for the Scope 3 emissions related to the end-of-life treatment of sold products, ticking the box of category 12.

Reducing unnecessary plastic packaging would decrease the emissions associated with waste disposal and recycling processes.

Recently, it has been found that 70% of food and drink items on UK shelves contain plastic, overtaking Spain (67%), Italy and Germany (66%), Poland (62%) and France (59%).

Transportation and Distribution

The excessive use of plastic packaging likely impacts transportation and distribution emissions.

DS Smith is pledging to produce lighter, more sustainable packaging alternatives to reduce fuel consumption and associated emissions in the supply chain:

• Partnerships with logistics providers: DS Smith is collaborating with transportation partners to implement more sustainable practices - this includes optimising routes, increasing truck-fill rates, and exploring alternative fuels
• Upstream transportation (Category 4): In 2022/23, this category accounted for approximately 377 Kt CO2e of DS Smith's Scope 3 emissions -This category covers the transportation of raw materials and other inputs to DS Smith's facilities.
• Downstream transportation (Category 9): This category contributed about 109 Kt CO2e to DS Smith's Scope 3 emissions in 2022/23 - It includes the transportation and distribution of products sold by DS Smith, where the company doesn't pay for the transportation.
• Optimisation strategies: DS Smith is focusing on increasing truck-fill rates, optimising mileage, and transitioning to low or zero-emission transportation fuel

These efforts aim to reduce emissions across both upstream and downstream logistics operations.

The company is improving its data collection and analysis for transportation-related emissions, enabling more targeted reduction strategies in the future.

Challenges and Opportunities

The research provided highlights several barriers to reducing plastic use:

• 40% of surveyed companies cite the cost of raw materials for alternative packaging as the biggest obstacle
• 39% fear consumer rejection of packaging changes
• 72% believe consumers would not want to pay extra for sustainable packaging

Addressing these challenges, presents opportunities for companies to innovate and reduce their Scope 3 emissions significantly.

DS Smith estimates that 84% of unnecessary plastic in the UK can be replaced or significantly reduced by fibre-based alternatives.

By focusing on these Scope 3 categories, companies in the food and beverage industry can make substantial progress in reducing their overall carbon footprint and meeting sustainability targets.

Categorical Improvements

Due to DS Smith's size, it is essential that they have a carbon-neutral and negative impact during production and across the supply chain.

The following categories collectively represent various stages in DS Smith's value chain where indirect emissions occur, highlighting areas for potential sustainability improvements: 

• Category 2: Capital Goods - Emissions from the producing capital goods purchased by DS Smith, such as machinery and equipment used in manufacturing processes.
• Category 3: Fuel- and Energy-Related Activities (not included in Scope 1 or 2) - Emissions related to the production and transportation of fuels and energy consumed by DS Smith, beyond what is captured in Scope 1 and 2.
• Category 5: Waste Generated in Operations - Emissions from the disposal and treatment of waste generated during DS Smith's operations, including packaging waste and other by-products.
• Category 6: Business Travel - Emissions resulting from business-related travel activities by DS Smith employees, including air travel, car rentals, and hotel stays.
• Category 9: Downstream Transportation and Distribution - Emissions associated with the transportation and distribution of products sold by DS Smith, where the company does not pay for transportation.
• Category 10: Processing of Sold Products - Emissions from the processing of intermediate products sold by DS Smith to other companies, which are then further processed before reaching end consumers.

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