Supermarkets Fail to Address Emissions from Dairy and Meat, Report Finds

A new report published by the Changing Markets Foundation and Mighty Earth, cited by FoodNavigator, concluded that supermarket chains are not doing enough to address emissions from dairy and meat production.

They Fail to Act

According to the report, major retailers, from Walmart to Carrefour, are in a unique position to influence change, yet most “fail” to implement measurable actions addressing emissions from animal agriculture.

“To make retail climate plans credible, retailers must adhere to science and set methane reduction targets of at least 30% by 2030 (from a 2020 baseline), supported by a comprehensive plan for the entire value chain,” the authors stated.

Of the top 20 global retailers, none had specific methane reduction targets, with US chains like Kroger and Albertsons being among the worst performers.

Methane Targets Missing

Food and agriculture are the largest contributors to methane emissions globally. In agriculture, the gas—which is 80 times more potent than CO2—primarily comes from enteric fermentation, manure management, and food waste in landfills. Animal agriculture alone accounts for nearly two-thirds (60%) of human-caused methane emissions, according to UN data.

For food retailers, methane forms nearly one-third of Scope 3 emissions (indirect emissions), with meat and dairy being the largest sources.

However, none of the 20 global supermarket chains examined in the report committed to a specific methane reduction target, nor did they share methane emissions specific to their meat and dairy products.

“It is surprising that none of the supermarkets among the top 20 food retailers had a specific methane reduction target, either for their private-label products or for their supply chain as a whole,” the report noted.

Addressing methane emissions isn’t just about mitigating climate risks; it’s also an opportunity for supermarkets to position themselves as leaders in the transition to a sustainable food system.

Supermarkets Must Take Action

“Setting specific methane reduction targets, publicly reporting progress, and investing in innovative solutions can help retailers meet the expectations of all stakeholders, including consumers, policymakers, and investors.”

Moreover, only six of the top 20 retailers had Scope 3 emissions targets in place. Dutch multinational Ahold Delhaize led the way with a 37% Scope 3 reduction target by 2030 (equivalent to 17.1 MtCO2e).

Migros, Rewe, Sainsbury’s, and Tesco had FLAG targets validated by SBTi and divided their Scope 3 emissions into FLAG and operational targets. These four retailers also set Scope 3 reduction targets of at least 50% by 2030.

In the US, Albertsons was the only retailer to mention a target beyond Scope 1 and 2, stating a 27% reduction in “downstream emissions from the use of goods sold by 2030,” the report noted.

Performance Scores of Supermarkets

Without methane reduction targets, the Changing Markets Foundation used other data such as the availability of protein alternatives, commitment details, action plans, strategies on food waste, landfill management, and emissions reporting to assess the top 20 major retail companies in 18 indicators.

A total of 100 points were available, with those scoring above 50 considered to perform adequately.

Only the British multinational Tesco managed to achieve this, securing 51 points. The top of the table was composed exclusively of European retailers, with UK (3) and German (4) chains dominant.

Lidl and Kaufland Schwarz Group ranked second with 35 points, followed by Switzerland's Migros with 34.5 points, France's Carrefour ranked fourth with 34, and Dutch multinational Ahold Delhaize came in fifth with 33 points. J Sainsbury’s (31), Aldi Sud (28), Asda (25), Rewe (22), and Edeka (19) completed the top 10.

Kroger and Walmart (both with 9.5/100 points, ranked 14th and 15th) had the highest scores among US retailers, while Costco (6/100), Publix (2.5/100), and Albertsons (0/100) were near the bottom. Apart from Albertsons, Spain's Mercadona was the only other retailer to score zero points.

Food Waste, the Highest-Scoring Category

The food waste category received the highest score, although it represents only a small part of the puzzle when it comes to methane emissions.

No US retailer earned full points in linking methane emissions from livestock to climate change: Publix, Walmart, and Albertsons performed the worst, with Walmart being the only retailer to mention methane in relation to food waste, according to the non-profit organization.

Costco made inferences about the role of protein diversification but did not inform stakeholders about the impact of livestock farming, the report states.

Better Performance in Germany

Meanwhile, all German retailers, plus Migros and Tesco, are addressing this issue with top actions.

Additionally, no US retailer earned full points for emissions reporting. Costco scored half a point for reporting on Scope 1, 2, and 3; Kroger did not report Scope 3; Walmart reported only an estimate for 90% of its Scope 3 emissions, and Albertsons “appears to send its emissions reports only to a non-profit organization that operates an environmental disclosure system,” the report states.

“The lack of full transparency among US retailers reflects a systemic gap in corporate climate regulation and the urgent need for a stronger framework in the US at a time when climate regulation is still lagging,” the authors said.

Measuring Methane Is a Challenge

Measuring methane is also a challenge for dairy and meat producers—Danone is the only dairy company globally to have set methane reduction targets backed by science so far. Others, such as Bel Group and Lactalis USA, disclose their methane emissions, the report notes.

Reducing Methane: It’s Not That Simple

Regarding how retailers could reduce methane emissions, the report suggests that chains could shift their protein offerings from animal-based to plant-based (at a 60% to 40% ratio, according to the EAT-Lancet report), and publish sales data for plant-based products to help more retailers understand the market potential for driving change.

However, there’s another important argument that is rarely discussed—rewarding senior executives not just for setting targets but for taking measurable action toward them.

In general, retailers do not incentivize senior directors for progress on methane emission reductions, the report concludes. Only Carrefour from France has set a sales target (640 million euros by 2026) as part of its corporate sustainability strategy.

“The lack of CEO and senior executive remuneration linked to successful progress on relevant climate goals suggests that companies are not placing enough emphasis on these or there is a lack of trust in the short-term targets and plans for which senior directors can be held accountable,” the authors stated.

Price Parity: An Area for Improvement

Price parity between dairy and meat alternatives with private-label products is another area that could be improved, the report notes. There is a lack of an affordable pricing policy, making it difficult for shoppers to understand the value proposition of alternative meat and dairy.

“Reducing the supply of meat and dairy to cut Scope 3 emissions should be a core strategy for every supermarket, and it is essential for those with a net-zero commitment. To do so, retailers need to focus on areas of their business that produce the largest but shortest-lived emissions and address methane emissions from meat and dairy.”

How Do Plant-Based Meat and Dairy Alternatives Perform in Retail?

Meat, fish, poultry, and dairy remain staple products in consumers’ diets in the UK. According to Kantar, nearly 99% of all consumers purchase meat, fish, and poultry (Kantar, 52 w/e 12 May 2024), while cow's milk dairy is purchased by 99.4% of shoppers (Nielsen, 52 w/e 13 July 2024).

Meanwhile, plant-based dairy makes up only 5.1% of the total dairy volume sold, with household penetration at just 69.7% for the 52 w/e 13 July and declining non-meat penetration (-3.1 ppt) to 40.7% (Kantar, 52 w/e 2004 August).

While plant-based dairy and meat volumes have grown faster than total meat and dairy, traditional products have still outperformed alternatives in terms of actual volume.

Price increases for plant-based products have not helped dairy alternatives either, with traditional dairy prices rising by only 1.7% in the 12 w/e 13 July 2024 (NIQ Homescan), compared to 3.8% for plant-based dairy alternatives.