This year will replace carbon offsetting with a laser focus on reducing carbon emissions
In 2022, we looked at the importance of traceability, and companies demonstrating tangible actions to reduce their impact on the planet, from packaging to sourcing strategies.
60% of European consumers find ‘low carbon footprint’ product claims appealing
For 2023 there will be a laser focus on carbon emissions, as government legislation, consumer awareness and rising energy costs intersect to bring this trend to the fore. A growing number of consumers are developing ‘eco-anxiety’ and becoming increasingly conscious of their own contribution to climate change[10]. There is a rising sense of urgency in shifting to a low carbon economy, based on low carbon emissions, low pollution and low energy consumption. This is impacting individual lifestyle choices as consumers accept a greater level of personal responsibility to make carbon-conscious decisions. What was once dismissed as an eco-warrior niche is being brought to the global stage by policy-makers in the world’s largest economies.
Over 75% of European consumers are willing to pay more for sustainable products
The ambitious European Green Deal aims to develop the first climate neutral continent by 2050[11] while Biden’s Build Back Better programme is the “largest effort to combat climate change in American history”[12].
Conflict in Europe, while detrimental to energy security in the short-term may “kick net-zero transition efforts into a higher gear” suggest McKinsey[13].
Carbon Neutral: Between 2020-2022, there was an +89% increase in beverages carrying a carbon neutral claim [24]. Major brands in the tea and coffee space, such as Starbucks and Costa, have made public commitments in line with science-based targets (SBTi)[14] that focus on reducing emissions, not just off-setting.
Emission Pledges: Bold pledges made by brands are placing greater pressure on sourcing strategies and throughout their supply chains. For example, Starbucks have committed to reduce their direct emissions (scope 1, scope 2), as well as committing to halve indirect emissions (scope 3) by FY2030[15]. Similarly, Costa Coffee have committed to reduce direct GHG emissions 50% and reduce indirect by 50% per coffee serving by 2030[16].
The inclusion of third party emissions necessitates beverage suppliers also meeting science-based targets. This is easier for those with integrated supply chains and greater control over sourcing. Carbon is just one aspect of climate change regulation. There is growing recognition of the importance of nature-based solutions, encompassing water, waste, bio-diversity and resource management in the fight to reduce carbon emissions.
Turn over to see the launches for the latest trends >
Italian brand Lavazza launched its first-ever carbon neutral recyclable aluminium capsules in May 2022. The brand are also compensating their carbon emissions with selected offsetting projects like conservation[19].
NESCAFÉ have pledged $1bn to help coffee farmers transition to regenerative agriculture practices like planting carbon sequestering crops, increasing use of organic fertiliser and improving biodiversity[21].
Starbucks are trialling their new cup scheme whereby customers deposit £1 for a reusable takeaway cup. In a bid to reduce waste by 50% by 2030, Starbucks will roll out the scheme in 4,000 stores by 2025[20].
Numi Tea recently added carbon footprint labels to their packs. The labels breakdown each product's carbon emissions into four categories; ingredients, packaging, transport and preparation[22].
Carbon is just one aspect of climate change regulation. There is growing recognition of the importance of nature-based solutions, encompassing water, waste, bio-diversity and resource management in the fight to reduce carbon emissions.
This is an even greater challenge; while carbon is well understood, with established protocols and definitions, nature-based solutions are more complex, broader in scope and more difficult to measure.
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