How German supermarkets can hit climate targets and save money
In our new report, released today, we reveal the most cost-effective suite of measures German food retailers can employ to meet their climate targets.
Our first-of-its-kind analysis concludes that by shifting 30 per cent of their meat and milk offering to plant-based products by 2030, alongside some changes to farming practices and initiatives around food loss and waste (FLW), Germany’s supermarkets can actually save money in their pursuit of emissions reductions.
The analysis is based on new research from environmental consultancy Quantis, also released today: Biggest Bang for the Buck: Cost Effective Pathways to Climate Targets in German Food Retail.
The research examined the cost and emissions reduction potential of 27 separate interventions in three strategic areas:
A shift to plant-rich food systems.
Improved sustainable agricultural practices.
Reduced food loss and waste (FLW).
Based on this research, and a calculation of the total emissions reduction needed by the German food retail sector by 2030 based on current commitments, Madre Brava selected nine measures which would meet those commitments in the most cost-effective way.
The basket of measures selected would reduce emissions by 24.4 MtCO2e by 2030, marginally above the 24.12 MtCO2e needed, with savings of €2.5bn.
By far the most cost effective measure, with a saving of €156 per tonne of CO2 reduced, was an ambitious but realistic rebalancing of proteins towards more plants and less meat and milk. The rebalancing strategy was the only one of the three strategies which saved, rather than cost retailers money overall.
Florian Wall, Madre Brava’s Senior Associate in Germany, said: “The Big 4 - Edeka, Rewe, Lidl and Aldi - account for 75% of the market in our country. Shifts from these retailers will have a huge impact on the sector’s emissions as a whole, and help drive our food system towards greater sustainability.
“Our analysis is good news for them. It gives them the clearest picture yet of how to meet their emissions reduction targets and the basket of measures we have selected will not only allow them to reduce emissions but also save money.”
Alongside the environmental and economic benefits of the recommended measures, credible plans to match supermarkets’ climate ambitions are increasingly necessary due to voluntary and regulatory requirements such as Science Based Target initiative commitments and the EU’s Corporate Sustainability Reporting Directive.
“We urge retailers to read this analysis, and the underlying research. There are significant opportunities for them, and their consumers, in applying its findings.”
Read our analysis:
Read the Quantis research:
