Food and drink manufacturing sector net zero sector guide

This net zero guide is for small businesses in the food and drink manufacturing sector, including:

• owners
• managers
• employees

By reducing emissions in your sector, you can:

• demonstrate your commitment to sustainability
• save on energy costs
• attract new customers and investors

You can also use:

• Ambition 2030, Food and Drink Federation (FDF) and its supply chain partners’ strategic overview on how to reach Net Zero by 2040
• FDF’s Net Zero Handbook (PDF) to find out more on measuring emissions, setting targets, implementing actions and tracking and reporting

For other sectors, you can find help and advice on how to reduce emissions in our other net zero sector guides.

Understand your organisation’s emissions
Reduce emissions and costs in the media, arts and entertainment sector
Track and share your progress
Insights
Set up a strategy
Get finance and support

Understand your organisation’s emissions

1. Why you should act to reduce emissions

Climate change and the degradation of natural ecosystems are having widespread effects globally, presenting significant risks to food production and security.

As part of the food and drink manufacturing sector, small businesses have a vital role to play in addressing these urgent challenges and contributing to a sustainable future.

Measuring your greenhouse gas (GHG) emissions is an important step for managing costs and moving towards net zero. You can set targets and develop short and long-term plans if you know how much carbon your business produces.

Results from the UK Net Zero Business Census 2024 Report demonstrate that requirements to measure carbon emissions are cascading down through supply chains to affect small businesses:

46% of respondents had received customer or tender applications that required carbon footprint data in the last 12 months.
37% of these respondents were small businesses that fall outside of regulatory requirements like Streamlined Energy & Carbon Reporting (SECR) to report carbon emissions

Some large businesses and public sector organisations are helping suppliers to:

report their emissions, including support to prepare a Carbon Reduction Plan (CRP): a document that summarises current emissions and plans for reducing emissions, and a requirement when bidding for many public sector procurements
identify onsite energy reduction opportunities and improve GHG reporting

Find out more about how to become a ‘net-zero’ ready supplier.

2. How emissions are categorised

From farm to fork, the UK’s food and drink sector was responsible for 158 million tonnes of carbon emissions in 2019, according to FDF’s Net Zero Handbook. This equates to about 22% of the UK’s carbon footprint.

Breakdown of emissions in the UK food & drink sector, data from analysis by WRAP, 2020.

The GHG Protocol (Corporate Standard) is widely used to report carbon emissions to the government, suppliers and investors.

The protocol categorises a company’s emissions into direct and indirect emissions:

direct emissions from sources that your company owns and controls
indirect emissions from the company’s activities but occurring at sources owned or controlled by another company

Emissions are further divided into three scopes:

direct emissions are included in scope 1
indirect emissions are included in scope 2 and scope 3

You must measure at least Scopes 1 and 2 to comply with the GHG Protocol.

Scope 1 and 2 emissions

Scope 1 and 2 greenhouse gas (GHG) emissions include:

fuel burned on site for heating
vehicles or equipment using petrol or diesel that you own, or directly control in terms of operational use
refrigerant gases
electricity that is purchased or otherwise brought into the organisational boundary of the company:, emissions physically occur at the facility where electricity is generated
process emissions

Scope 3 emissions

Scope 3 emissions are all indirect emissions not included in Scope 2. These emissions occur both upstream (from the supply chain) and downstream of your organisation, for example, through customer use.

According to GOV.UK research, Scope 3 emissions can account for 80 to 95% of a company’s carbon footprint.

Scope 3 emissions come from 15 defined categories but not all categories are relevant or applicable for all organisations in the food and drink manufacturing sector:

Upstream

purchased goods and services
capital goods
fuel and energy-related activities not included in Scope 1 or Scope 2
upstream transportation and distribution*
waste generated in operations*
business travel, including accommodation*
employee commuting and working from home*
upstream leased assets

Downstream

transportation and distribution*
processing of sold products
use of sold products
end-of-life treatment of sold products
downstream leased assets
franchises

* Scope 3 emissions categories required alongside Scope 1 and Scope 2 emissions when producing a Carbon Reduction Plan

Use these guides to help you work out your Scope 3 emissions:

3. Use free tools to calculate your emissions

Collect data for a 12-month period for the main activities which release carbon emissions in your organisation.

These main activities may include:

electricity/gas use
waste disposal/recycling
business travel
owned or directly controlled vehicles
employee business travel
employee commuting

You can choose one of the free carbon calculators to help you calculate emissions in metric tonnes CO2 equivalent per year.

Calculating your carbon footprint will give you an emissions baseline. This baseline acts a reference point against which you can:

identify where your emission hotspots are
set targets, for example by scope and fuel type, including the year by which you hope to achieve net zero and interim milestones.
measure changes in your greenhouse gas (GHG) emissions going forward

Check Measure your carbon emissions so you can find more about:

what data you need to collect
how to quantify your emissions

You could also consider hiring a sustainability consultant to help you.

Reduce emissions and costs in the food and drink manufacturing sector

You can reduce emissions in the food and drink manufacturing by reviewing changes you can make in these key areas:

Ingredients

Resource efficiency

Energy

Transport

People

Ingredients

To reduce indirect or ‘supply chain’ emissions, you need to consider what happens before and after your business provides a service or makes a product.

1. Understand the carbon footprint of your products

To reduce indirect or ‘supply chain’ emissions, you need to consider what happens before your business makes food and drink products (upstream emissions).

Ingredients and imports are the largest (66%) source of emissions in the UK food and drink sector, according to the FDF Net Zero Handbook (PDF).

You need to understand your ingredients’ emissions and impacts from:

production of UK ingredients (agricultural emissions)
emissions embedded in imported ingredients
animal feed
finished goods (production, packaging and transport to the UK)

2. Work with suppliers to reduce emissions

Engaging your suppliers is one of the most effective ways to lower your carbon footprint, especially since the majority of emissions often come from the ingredients you buy.

3. Understand the emissions behind ingredients

Some ingredients tend to have a higher carbon footprint, particularly certain animal-based products like beef and lamb, due to methane emissions and land use.

Imported ingredients such as palm oil, soy, or cocoa can also contribute to deforestation if not sourced sustainably.

When making procurement decisions, consider prioritising ingredients that are:

certified sustainable
plant-based alternatives with lower environmental impacts

Consider sourcing

Sourcing locally can support regional economies and increase supply chain transparency, but it doesn’t always guarantee lower emissions. The mode and efficiency of transport often matter more than distance.

For example, shipping large quantities overseas by sea can sometimes result in lower emissions per unit than smaller deliveries by road or air over shorter distances.

Key factors to consider in ingredient transport include:

mode of transport: air freight has a much higher carbon footprint than shipping or rail
efficiency of logistics: consolidated deliveries and full loads reduce emissions per product
production practices: some ingredients produced farther away may have lower farming-related emissions

Local sourcing can play a role, but it should be part of a wider strategy that also includes sustainable farming, efficient logistics, and verified supplier credentials.

Support nature-friendly farming

How your ingredients are grown matters. Choose suppliers who consider their impact on biodiversity and ecosystems. Ask about:

Land use practices: Are they avoiding deforestation or using regenerative methods?
Impact on wildlife: Are they protecting local species and reducing harmful inputs like pesticides?
Habitat restoration: Are they restoring natural areas such as wetlands or forests?

Choosing suppliers that take nature into account can help:

future-proof your supply chain
support more resilient ecosystems
contribute to your net zero and sustainability goals

Factor in energy use and supplier operations

Go beyond the product – ask about how it was made. In your procurement process, consider suppliers that demonstrate:

low carbon initiatives
net zero targets
carbon tracking and reporting

Incorporate these responses into your supplier scoring or decision-making process.

Consider how the decisions you make may impact the sustainability of the goods and services being supplied to you, for example, materials and location.

Actively look for suppliers who:

have a track record of low carbon operations
have Science Based net zero or equivalent targets and/or are signed up to the SME Climate Commitment
have a net zero transition plan or decarbonisation roadmap
provide energy efficient goods and services
can track and report their carbon emissions to you
have low carbon product labels and certifications
are geographically close, where this reduces emissions meaningfully

You can also reduce upstream emissions by supporting your suppliers to cut their own carbon. Share guidance and direct your suppliers to how to become a ‘net-zero’ ready supplier so they can find out more about how to implement an effective carbon reduction strategy.

Check these resources to find out more on how to engage with your suppliers:

Find out more about sourcing sustainable commodities in FDF’s Ambition 2030: Pillar 2 – Nature restoration (PDF) and Pillar 3: Sustainable commodities (PDF).

3. Reformulate food and drink products to reduce emissions

You can also reduce emissions through ingredient substitutions and new product development.

Actions may include developing lower carbon recipes and innovating with:

plant-based ingredients
dairy alternatives
lower-GHG food ingredients

Introduce simple carbon key performance indicators (KPIs) to measure and track how you are decarbonising your ingredients.

Recipe reformulation can also help reduce food waste within own operations.

Resource efficiency

Find ways to optimise decarbonisation and improve resource efficiency.

1. Manage general waste in the food and drink manufacturing sector

Like anything else, planning for how your waste will be disposed of and what ingredients you are using is best done right from the off in prep. Planning ahead about how you can prevent waste from being taken to landfill sites is key. Landfill waste takes longer to break down and creates more emissions.

You must separate your waste according to the Simpler Recycling requirements. Find guidance and tools:

Set up a waste management system to:

conduct a waste audit to identify the types and amounts of waste generated by the business to show opportunities for reduction
establish a system for monitoring and tracking waste generation
regularly review and make adjustments to waste reduction strategies

You should discuss with your waste collector to ensure the services you have in place meet the requirements.

Train your staff on your recycling plan. Monitor planning and ordering to avoid overstocking and wastage

Check your waste-related obligations and how to manage your waste.

2. Manage food waste in the food and drink manufacturing sector

Set a reduction target for your business. Measure and track your food waste and then start to track food waste across your supply chain.

Take steps to prevent food waste and then to reduce it by following WRAP’s food waste hierarchy:

prevent
recycle
recover
dispose

Figure 1 Food and drink waste hierarchy Wrap 2024

Find out more information and actions you can take in:

Food Waste Reduction Roadmap (PDF) developed in collaboration with Waste and Resources in Action (WRAP) and Institute of Grocery Distribution (IGD)
FDF Ambition 2030: Pillar 4 – Food Waste (PDF)

3. Reduce impacts from the use and disposal of your products (downstream emissions)

Most food is wasted in households, according to Wrap (PDF). You can take action to support behaviour change initiatives to reduce household waste.

Collaborate across your supply chain to raise consumer awareness about the consequences of food waste by:

promoting the waste hierarchy, for example, by supporting sustainability campaigns such as Love Food Hate Waste
adopting best practice guidance for product labelling and storage and embedding this in your in-house labelling guidelines to promote waste reduction
encouraging culinary habits such as diet decarbonisation and recycling leftovers

You can reduce downstream emissions by making products that take less energy to make, transport, consume and operate.

Develop and trial ideas around packaging, portion sizes, and on pack messaging to reduce food waste.

4. Use sustainable product packaging

Packaging plays a role in food waste. To tackle this, the UK government has brought in regulations such as the Plastic Packaging Tax and the sector has made progress towards the UK Plastic Pact 2025 – a voluntary initiative by WRAP.

The Government is also introducing the Collection and Packaging Reforms which have three central pillars:

Extended Producer Responsibility
Deposit Return Scheme
Simpler Recycling – an approach to waste collection and recycling applicable
to England

To prepare for the UK Plastics Tax and reforms to Producer Responsibility regulations, engage with packaging suppliers to find low carbon options that meet all regulatory requirements for food contact materials.

Use sustainable packaging such as:

plant-based packaging
edible packaging – made from seaweed extract
biodegradable plastic alternatives
plantable packaging which is made from seeds and can be buried in soil

Use packaging that is:

reusable, for example, pallets and protective blankets over plastic or cardboard boxes with bubble wrap
compact and optimised to minimise material use – oversized packaging is often filled with unnecessary air
standardised – consider using packaging made from a single material so that it can be sorted and recycled or repurposed
in bulk to avoid unnecessary individual wrapping of items

Set a company policy on packaging sustainability. Assign internal responsibility for packaging emissions.

Check these resources for more information:

FDF’s Ambition 2030: Pillar 5 – Packaging (PDF)
WRAP’s circular economy resources for advice on how to reduce unsustainable packaging system

5. Improve print sustainability

Go paperless and move to digital where possible to reduce the need to print.

Use responsibly sourced paper, PEFC / FSC certified paper, recycled and recyclable materials in the printing process including non-toxic and biodegradable inks. Print on both sides of the page.

6. Save water and reduce your carbon footprint

You can reduce water consumption, and also save money on your bills, by:

monitoring your water use
fixing leaks
installing low-flow fixtures and water-efficient facilities
recycling water (greywater recycling) or reusing rainwater (rainwater harvesting)

Find out more about how to lower bills and water use in Save water and reduce your carbon footprint.

7. Consider the natural environmental resources at your site

From 2024, small site developments must be ‘nature positive’, delivering a 10% benefit for nature. Developers must assess the type of habitat and its condition they plan to affect before submitting plans to the local planning authority, leaving nature more effectively in and around developments.

Find out more about your obligations on GOV.UK’s Understanding Biodiversity Net Gain (BNG).

Energy

Buildings: Improve energy management

1. Audit your energy consumption

Do an assessment in your building to see if energy is being used efficiently.

Speak to your building manager or landlord about common services if you share the building with other tenants. Suggest shared audits to find quick energy-saving wins.

You may wish to contract an energy auditor to do this for you. Your energy audit should be done to one of two standards: BS EN 16247 or ISO 50002.

2. Monitor energy consumption data

Follow these steps to check your energy consumption:

Check how much your consumption varies on a daily, weekly or monthly basis – do variances make sense?
Check for a high overnight baseload if you can review half-hourly consumption. Can equipment be switched off overnight to reduce out-of-hours demand?
Speak to your supplier, they may be able to share insights into your data and suggest ways that you can reduce your consumption.

Installing energy sensors like sub-meters can help you track and manage your energy use to improve efficiency.

3. Identify the end uses of energy

Identify the different end uses in your building and check they are operating efficiently. This might help you spot:

lighting issues
excessive use in heating, ventilation, air conditioning (HVAC) units or chillers
outdated equipment and machinery

Consider whether you can:

reduce the number of end uses
change the amount of time they’re used for
reduce consumption

You can use the new Energy and Decarbonisation PAS standard to help you improve your energy efficiency. The standard provides a structured approach to assess your energy use and reduce carbon emissions.

Based on your findings from an audit, you might want to consider setting an energy strategy for your business.

Find out more about developing an energy strategy from the Carbon Trust.

Buildings: Improve energy efficiency

1. Optimise the use of existing equipment

Optimise the use of existing equipment, or consider replacing energy-intensive equipment with energy-efficient alternatives.

This might include installing:

LED lighting to replace older fluorescent lighting
upgrading to a more efficient boiler
variable speed drives (VSDs) to reduce energy and save costs on pumps and fans
induction hobs in your kitchen area
smart ventilation in kitchens
good quality storage equipment to make sure ingredients have the best chance of staying fresher for longer

Only replace equipment at the end of its useful life. Replacing equipment before the end of its lifespan could end up having a higher carbon footprint overall.

Maintain and regularly service equipment to ensure it:

operates at peak efficiency, prolonging its lifespan
reduces waste from early replacement

As part of predictive maintenance, use Artificial Intelligence (AI), Machine Learning (ML), and tools such as the Internet of Things (IoT) to reduce energy and emissions.

Push for modern, high-efficiency equipment in procurement discussions with facility owners.

Consider installing a Building Management System (BMS), or optimising your current system, to ensure the run times of main building services closely match the building occupancy.

Review temperature set points, ensure systems aren’t conflicting, for example, heating is not ‘on’ at the same time as cooling.

Check planning permission guidelines before you make any structural changes to the property.

Find out about more energy efficient measures in commercial building and home energy use.

2. Review and maintain your refrigeration system

Install fixed point refrigerant leak detection systems to minimise fugitive emissions (gas or vapour leaks or discharges). Use low global warming potential (GWP) refrigerants and passive cooling.

Decarbonise energy use

1. Electrify building services

To reduce greenhouse gas emissions the main action you can take is to reduce the direct burning of fossil fuels.

Replacing existing gas or oil boilers and heating systems with electric options like heat pumps can help.

You can apply for GOV.UK grants to help replace fossil fuel heating with a heat pump. Flexible, low-cost tariffs can also reduce running costs.

Learn more about air and ground source heat pumps and how to get one.

If your building has a diesel back-up generator, consider switching to an electric alternative, like battery storage.

2. Install renewable technologies

Installing solar panels or a wind turbine can reduce your energy bills in the long term as well as your reliance on the grid. If you don’t own your site, work with facility owners to explore on-site renewable options.

Check our resources to:

decide if solar panels are right for your business
find out how to generate energy with a wind turbine

Integrate battery storage systems to manage energy supply during downtime or intermittencies in renewable energy generation. This will ensure a continuous supply of green energy.

Find out if qualify for a business rate exemption if you install renewable energy measures on-site at your business.

3. Switch to a renewable energy tariff

Switching from a default mains electricity supply to a ‘green tariff’ can further reduce your greenhouse gas emissions.

100% renewable electricity supplies will be supported by Renewable Energy Guarantee of Origin (REGO) certificates (in the UK), which you can receive from your supplier annually to demonstrate that you’ve purchased electricity from renewable sources.

Speak to your supplier to see whether they offer renewable tariffs, or have a look at other suppliers who offer a variety of tariffs.

Find out more about how to buy your electricity from renewable sources.

4. Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a UK government initiative that mainly applies to large businesses. However, some small businesses may still need to comply, for example, if they are part of a larger corporate group that meets the qualification criteria.

You’ll need to carry out an energy audit every four years to assess energy use and identify efficiency improvements if your business is affected.

Check GOV.UK guidance to find out if ESOS applies to you and what steps to take.

Decarbonise process heat

Take steps to reduce carbon emissions from process heat by:

using motors of correct size
using high efficiency motors
installing variable speed drives

Consider options for electrifying heat generation.

Learn more about decarbonising heat in FDF’s Decarbonisation of heat across the food and drink manufacturing sector.

Find out more about how to:

Transport

1. Reduce the impact of transport

Over a quarter of the UK’s carbon emissions are caused by transport.

You can take these steps to minimise carbon emissions:

improve delivery routes to minimise travel distances
using electric vehicles (see below) where possible
encouraging the use of efficient driving techniques to minimise fuel consumption
using appropriate delivery vehicles to maximise fill ratios

2. Implement a Green Employee Travel Policy

A Green Employee Travel Policy prioritises low-carbon travel options by encouraging employees to choose sustainable transportation, accommodation and travel practices, including:

using trains not planes in the UK, and Europe wherever possible
promoting walking, cycling, or public transport for short to medium distance
prioritising electric or hybrid vehicles for car rental
promoting carpooling and ride-sharing services for ground transportation
using video-conferencing for meetings, including online staff onboarding to train your team and short interviews with contributors
partnering with travel agencies that have expertise in sustainable travel

Find out more about how to:

3. Switch to electric vehicles

Consider replacing older vehicles with electric, hybrid, or other energy-efficient vehicles.

Switching to electric vehicles means you would be exempt from road tax, congestion charges and parking fees in certain areas.

You can also claim ‘enhanced capital allowances’ (a type of first year allowances) for:

electric cars
cars with zero CO2 emissions (new and unused)

Find out about how to install an electric vehicle (EV) charging infrastructure.

People

1. Get your staff engaged in your carbon reduction plan

You can create an energy management role or groups so you can make energy savings:

a business priority
part of your business long-term

Get your team involved in carbon reduction measures such as:

a ‘switch off policy’ in staff areas: turning off and unplugging devices and lights when they’re not being used can make a difference
a cycle-to-work initiative
encouraging the use of public transport
engaging them on recycling initiatives

Offer training sessions on sustainable practices, including:

energy and water conservation
waste management
use of green products
reducing food waste (PDF)

Use video-conferencing for meetings, including online staff onboarding to train your team.

Find out more about:

2. Promote sustainability

Create a sustainability strategy that incorporates ESG goals within your Operations such as on:

reducing emissions
protecting biodiversity
promoting responsible sourcing

Engage with local communities and stakeholders to support environmental restoration and rehabilitation efforts. This could include:

reforesting areas
promoting wildlife conservation

More resources will become available on the FDF website for the Nature Restoration pillar of Ambition 2030. This will include a Nature handbook for Food and drink manufacturers to be launched in Summer 2025.

Track and share your progress

1. Make a public commitment to achieve net zero by 2050 or earlier

You can sign up to the SME Climate Commitment. To align with the SME Climate Commitment, businesses need to commit to:

cutting Scope 1 and 2 greenhouse gas emissions by at least 50% by 2030 using 2019 or later as the base year
reaching net zero by 2050 or sooner

All businesses making the SME Climate Commitment should also aim to halve their most material Scope 3 emissions by 2030.

For small businesses, the most significant scope 3 emissions often come from purchased goods and services.

2. Monitor and report your emissions data

After you have made a public commitment to reduce your emissions, you should regularly monitor and report your emissions data against your established baseline.

The SME Climate Commitment offers the SME Reporting Tool for small businesses and institutions. This helps create annual sustainability reports and track their reduction efforts.

Show what your company is doing to meet its targets and the impact of your initiatives on your company’s emissions.

You can share:

your annual reports on your website
add reported data into annual business reports
directly distribute reports to customers, funders and suppliers

Check how to track and share your progress.

Insights

Find out what other businesses are doing to reduce emissions and cut costs in our case studies.

For example, discover how Cooper King Distillery and Dark Woods Coffee made cost savings from reducing energy use and using circular economy principles.

You can also find more case studies and sector initiatives in FDF’s Net Zero Handbook (PDF), and members’ stories in FDF’s Ambition 2030.

Find out about the latest thinking in our thought leadership articles.

Join webinars and events to gain insights into what other small businesses are doing to get to net zero.