5 measures taken by retailers and brands to promote sustainable food production

Camille Basso
Camille Basso
January 23, 2024
10 min.
5 measures taken by retailers and brands to promote sustainable food production
SUMMARY

August 2, 2023 was Overshoot Day, the date on which humanity had consumed all the resources our planet can regenerate in one year. Ecology is a hot topic right now, and one of the main preoccupations of companies. That's why, at the beginning of the year, the Climate Action Network evaluated French food retailers1based on their ability to offer consumers sustainable food. Unfortunately, none of them scored above average. Similarly, the annual survey carried out by LSA and Univers Retail reveals that 55% of French people feel that supermarket companies are not sufficiently committed to the environment.2. And yet, for several years now, food industry players - brands and chains - have been working to enable their customers to choose a more environmentally-friendly diet.

1 - What place is given to local produce and plants?

To encourage sustainable eating, retailers are increasingly promoting products that have a reduced impact on the environment. Among these, several companies are focusing on short-distance or "local" foods. In stores and on drive-throughs, consumers can now find "Best of local", "Regional and local products" or "Product of the world and of our regions" inserts. What's more, certain chains such as Leclerc and Carrefour have been promoting local products for several years, with private labels such as "Nos régions ont du talent" (Our regions have talent).3 and "Reflets de France4

On the other hand, food retailers are now promoting plant-based alternatives to encourage their customers to consume fewer products derived from animal exploitation. Several of them have created their own ranges of plant-based products, such as Carrefour Veggie from the retailer of the same name, NAT&Vie from Leclerc and Vegan Deli from Monoprix. Likewise, a number of brands offering plant-based products are developing in France, and are gradually gaining a foothold with retailers.5. According to a recent report by Bloomberg Intelligence, this market is expected to reach $24.8 billion worldwide by 2030.6. For the environment, vegetable or meat-like alternatives are highly beneficial. It is estimated, for example, that a kilogram of plant-based meat requires 2.8 times less water and generates 12 times less CO2 than a kilogram of animal meat.7.

Vegan products Vegan Deli, NaT&Vie and Carrefour Veggie

2 - How to prioritize responsible sourcing?

Promoting local or plant-based products is not enough to ensure a sustainable diet. In fact, according to Réseau Action Climat, "only 13.5% of greenhouse gas emissions from French food consumption are attributable to food transport".8. In fact, retailers and brands are also committed to adopting more responsible sourcing initiatives. On their websites, they share their commitments in this area.

Sustainable agriculture

A number of companies are now turning to more environmentally-friendly agriculture. Examples include Système U, which favors "ecologically intensive agriculture", and Carrefour, which supports its partner producers in their efforts to preserve biodiversity through agro-ecology. For its part, Leclerc uses the HVE (Haute Valeur Environnementale) label on its private labels, and selects "products from farms that integrate greater respect for biodiversity and natural resources". Similarly, Intermarché fights against deforestation, preferring to source its products "from areas that have been deforested and/or converted".  

Fishing with biodiversity in mind

As over-consumption of fish is one of the main scourges affecting marine areas, the retail sector is also committed to more responsible fishing. Carrefour, for example, asserts that "100% [of its fish departments] are certified responsible by the MSC sustainable fishing and ASC responsible aquaculture systems". Similarly, Leclerc, in partnership with the Earthworm Foundation, has drawn up a list of "prohibited species and fishing zones, which are not allowed to be sold in our stores". 

Respect for animal welfare

While fishing is a major concern for retailers, many are more generally concerned with animal welfare. For example, Leclerc's "Marque Repère" brand includes only eggs "from cage-free hens". Similarly, Système U imposes on its producers "demanding specifications in favor of animals (elimination of antibiotic treatment, GMO-free feed, etc.)". Most other chains, such as Carrefour and Intermarché, have also adopted measures to promote animal welfare. 

Greener transport

Production is a key element in the supply chain, but transport and logistics are just as fundamental. That's why supermarket chains are also committed to equipping themselves with less-polluting vehicles. Since 2019, Carrefour has been promoting biomethane-powered trucks in particular. "Lower CO2 emissions, elimination of fine particles, limitation of noise pollution: the advantages of these vehicles are numerous, according to the company", explained Le Parisien9. The Groupement Les Mousquetaires, which includes Intermarché, has equipped itself with "liquefied natural gas engines for its semi-trailers" and a "fleet of trucks running on biogas in Paris".

Source : Système U, commitment to animal welfare

3 - What initiatives have been taken to avoid non-recyclable or single-use materials?

In supermarkets, companies have long favored non-recyclable or single-use materials (packaging, paper leaflets, etc.). However, most of these materials have little respect for the environment. The manufacture of plastic packaging, for example, generates 1,870 kilos per tonne of CO2 equivalent, while its incineration generates 2,384 kilos per tonne of CO2 equivalent.10.

This is why retailers and brands are gradually adopting more environmentally-friendly solutions to replace them. Cora, Leclerc, Intermarché, Carrefour and Auchan11have reduced or completely eliminated their paper leaflets since the beginning of the year. When it comes to packaging, retailers have also opted for sustainable alternatives. While disposable plastic bags have been banned in France since 201712retailers have taken advantage of this to expand their bulk sections and offer consumers the option of using their own containers. 

As far as food brands are concerned, the fight against single-use or non-recyclable packaging has long been underway. However, some initiatives stand out from the rest. This is the case, for example, of Nespresso France, the first subsidiary of the group -along with Switzerland- to launch pods made from compostable paper pulp.13. Similarly, the giant Coca-Cola France is aiming for 100% recycled plastic bottles by 2030, thanks to its partnership with Plastipak14. As well as being beneficial for the environment, these measures respond to new consumer expectations. According to an Eviosys survey, 83% of French people say they are concerned about the environment. In addition, 59% say they are prepared to pay more for more sustainable packaging.15.

Finally, mass retailers are increasingly promoting bulk packaging, which avoids over-packaging and the use of single-use plastics. By 2030, the AGEC law stipulates that bulk packaging will account for at least 20% of sales area for all stores of at least 400m2. While this represents a challenge for some companies, in the face of inflation and falling sales volumes, others have already given great importance to bulk in their stores. This is particularly true of Carrefour, for whom bulk products already account for 14% of sales area.16

4 - How can stores also contribute to the ecological transition?

From foodstuffs to packaging and promotion, the food industry is mobilizing to promote more responsible consumption. However, they also need to be concerned about the environmental impact of their stores, and how to reduce it. 

Energy-efficient alternatives

One of the main concerns of companies is the lighting of their sales outlets, which is becoming increasingly energy-efficient. The Intermarché and Carrefour banners, for example, have chosen to equip themselves with LEDs and connected lighting management systems, in order to reduce the energy consumption of some of their stores and shopping centers by almost 75%.17. In the same way, they are working with other major retailers to reduce their water consumption18.

Collaboration with experts in the field

Other brands also rely on environmental organizations. Recently, a number of supermarket chains have turned to the "Enseigne Responsable" and "Commerçant Responsable" labels from the Collectif Génération Responsable. The collective evaluates companies according to several criteria "in terms of the environment, employee relations, customer relations and the integration of the outlet into its territory".19. In fact, around a hundred Intermarché stores have been awarded the "Commerçant Responsable" label. Meanwhile, several Casino, Netto, Picard and Nespresso outlets have been awarded the "Enseigne Responsable" label.

Responsible sign" and "Responsible retailer" labels

5 - How can we develop transparency on environmental impact?

As we have seen, the mass retail sector is increasingly committed to promoting sustainable food. Nevertheless, it is important for retailers to communicate with their customers about these initiatives and their environmental impact. On their websites, companies present their commitments to making retail more respectful of the planet. But some stand out for their transparency on their environmental footprint. This is particularly true of Carrefour, which, since July 2023, has been displaying on its Drive site the volume of CO2 generated by all orders.20. A world first in the food sector, the company relies on Ademe's Agribalyse database. "Eventually, we'd like to integrate the kilos of CO2 emitted for each item directly into the product data sheets, so that our buyers can make informed choices when filling their baskets", assures Carine Kraus, Carrefour's Executive Director of Commitment. For their part, several food brands are also committed to greater transparency on the origin, production, packaging and transport of their products, through the "Major Brands Commit" initiative.21.

6 - What government measures will also encourage sustainable food?

While mass retail players are mobilizing for sustainable food, the French government is also implementing measures to ensure it. Since January 2017, the Ministry of Ecological Transition and Territorial Cohesion has notably had the use of disposable plastic bags banned in stores through the AGEC law. Promulgated in 2020, this 130-article measure aims to reduce waste and move towards a circular economy22. It focuses on five key areas: getting rid of disposable plastic, better informing consumers, combating waste and promoting solidarity-based reuse, taking action against programmed obsolescence and better production. In 2023, one of the articles of the AGEC law put an end to the use of disposable crockery in establishments serving meals consumed on site. Similarly, since August 1, 2023, sales receipts are no longer mandatory in sales outlets and establishments open to the public. Also, since 2021, the government has been experimenting with an Eco-score, i.e. a display of the environmental impact of products, directly on their packaging.23. Similar to the Nutri-score, this evaluation system aims to encourage consumers to consume in a more responsible and sustainable way. 

Conclusion

Although supermarket chains and brands, as well as the government, are becoming increasingly involved in helping consumers to adopt a sustainable diet, the climate emergency is such that some measures do not seem sufficient to offset the environmental impact of companies. For example, the AGEC law accelerates the environmental transition of companies towards a sustainable economy, but its objectives extend over several years, and the absence of corrective measures and concrete obligations considerably slows down its impact. In an article in Les Echos, Pierre-Yves Pasquier notes that "70% of companies are unaware of the AGEC law, which aims to profoundly transform our linear economy [...] and its application is still too little deployed".24.

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