Sustainable food systems: Why early climate reporting builds brand trust
Sustainable food systems: Why early climate reporting builds brand trust
In the agri-food sector, climate transparency is rapidly becoming a standard expectation in procurement. Large retailers and food processors are increasingly asking suppliers to report greenhouse gas (GHG) emissions, set reduction targets and demonstrate a commitment to sustainability. These requirements are no longer limited to niche sustainability contracts, they are becoming embedded in mainstream procurement criteria.
This shift is driven by the growing importance of Scope 3 emissions, which typically account for the majority of a retailer’s carbon footprint. Retailers have realized that meaningful decarbonization depends on addressing these upstream emissions. As a result, suppliers are being asked to provide detailed climate data and take action to reduce their impact.
However, suppliers who act early gain a clear advantage. Those with verified emissions data and reduction plans are better positioned to meet buyer requirements, secure contracts, and build trust through transparency. In several cases, suppliers who had already begun reporting were able to respond quickly to buyer requests, strengthening procurement relationships and gaining a competitive edge. Conversely, companies that delayed action faced tight deadlines, higher costs, and even risked losing business.
Consider the example of a mid-sized food processor that began reporting its emissions voluntarily before any formal requests were made. By publishing annual climate data and setting clear reduction targets, the company positioned itself as a sustainability leader in its category. When major buyers later introduced stricter climate requirements, this supplier was already compliant, which not only secured existing contracts but also opened doors to new partnerships. The transparency demonstrated through early reporting became a talking point in marketing campaigns, reinforcing the brand’s image as responsible and forward-thinking. This proactive approach build trust with consumers who increasingly value sustainability in their purchasing decisions.
These discussions highlight an important point. Sustainability is no longer just a corporate responsibility, it has become a reputational necessity. When the societal costs of production make headlines, businesses without transparent climate reporting risk being seen as part of the problem. Those that disclose emissions and demonstrate credible reduction plans can position themselves as part of the solution.
At BDO, our Climate & Decarbonization team supports agri-food companies in this journey. We help businesses calculate Scope 1, 2, and 3 emissions, including FLAG emissions, using internationally recognized standards. We also assist with science-based targets, emissions reduction strategies and integrating climate data into procurement and stakeholder communications.
Whether you're a producer, processor, or distributor, proactive climate reporting is your opportunity to lead. Let’s work together to turn transparency into a strategic advantage.
Contact us
This shift is driven by the growing importance of Scope 3 emissions, which typically account for the majority of a retailer’s carbon footprint. Retailers have realized that meaningful decarbonization depends on addressing these upstream emissions. As a result, suppliers are being asked to provide detailed climate data and take action to reduce their impact.
Early movers gain procurement advantage
For suppliers, these requests can feel overwhelming, especially if climate reporting hasn’t yet started. Calculating and disclosing Scope 1, 2, and 3 emissions and setting reduction targets is complex and cannot be done overnight.However, suppliers who act early gain a clear advantage. Those with verified emissions data and reduction plans are better positioned to meet buyer requirements, secure contracts, and build trust through transparency. In several cases, suppliers who had already begun reporting were able to respond quickly to buyer requests, strengthening procurement relationships and gaining a competitive edge. Conversely, companies that delayed action faced tight deadlines, higher costs, and even risked losing business.
Climate transparency builds brand trust
Beyond procurement, proactive climate reporting enhances brand reputation. It signals accountability to stakeholders, investors, regulators, and consumers. In a sector where traceability and trust are essential, emissions transparency can differentiate a brand and foster loyalty.Consider the example of a mid-sized food processor that began reporting its emissions voluntarily before any formal requests were made. By publishing annual climate data and setting clear reduction targets, the company positioned itself as a sustainability leader in its category. When major buyers later introduced stricter climate requirements, this supplier was already compliant, which not only secured existing contracts but also opened doors to new partnerships. The transparency demonstrated through early reporting became a talking point in marketing campaigns, reinforcing the brand’s image as responsible and forward-thinking. This proactive approach build trust with consumers who increasingly value sustainability in their purchasing decisions.
Hidden costs driving transparency
This growing emphasis on transparency is echoed in broader industry discussions, such as Deloitte’s Hidden Bill analysis, which focused on the true societal costs embedded in food production, including climate, biodiversity, and water impacts. The report sparked widespread debate because it quantified what consumers rarely see, the societal costs behind everyday products.These discussions highlight an important point. Sustainability is no longer just a corporate responsibility, it has become a reputational necessity. When the societal costs of production make headlines, businesses without transparent climate reporting risk being seen as part of the problem. Those that disclose emissions and demonstrate credible reduction plans can position themselves as part of the solution.
Be ready before you're asked
Agri-food businesses should not wait for a buyer to request emissions data. By starting now, companies can build internal capacity, improve data quality, and position themselves as preferred suppliers. Early action reduces risk, opens doors, and strengthens long-term relationships.At BDO, our Climate & Decarbonization team supports agri-food companies in this journey. We help businesses calculate Scope 1, 2, and 3 emissions, including FLAG emissions, using internationally recognized standards. We also assist with science-based targets, emissions reduction strategies and integrating climate data into procurement and stakeholder communications.
Whether you're a producer, processor, or distributor, proactive climate reporting is your opportunity to lead. Let’s work together to turn transparency into a strategic advantage.
Contact us
