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Carbon Neutral Approaches in the Food Supply Chain: A Sustainable Path Forward

Food & Beverages Processing

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May 2025

The food supply chain plays a crucial role in feeding the world, but it also leaves a substantial carbon footprint, significantly contributing to global greenhouse gas (GHG) emissions. From farm operations to packaging and distribution, each stage releases gases that accelerate climate change.

- Vithu Prabha¹ and Hrishikesh Sooryankandy²

Carbon Neutral Approaches in the Food Supply Chain: A Sustainable Path Forward

Among them, carbon dioxide (CO₂) from the use of fossil fuels drives long-term global warming, while methane (CH₄) from livestock and food waste traps heat far more effectively than CO₂, thereby intensifying the problem. Nitrous oxide (N₂O) from fertilizers not only contributes to warming but also depletes the ozone layer, and fluorinated gases from refrigeration have an even greater warming potential, lingering in the atmosphere for decades. A carbon-neutral approach offers a way forward—by reducing emissions, improving carbon sequestration, and offsetting unavoidable impacts, the food industry can transition toward sustainability. Implementing these solutions at every stage of the supply chain is not just an environmental necessity but a crucial step toward securing a more resilient food system for the future.

Carbon footprint of the food supply chain

The food industry is a major driver of climate change, contributing nearly one-third (26-34%) of global greenhouse gas (GHG) emissions. Each stage of the supply chain plays a role in this footprint, releasing emissions that could threaten future food security and ecosystem stability.

  • Agriculture (30-40%): Unsustainable farming practices contribute the largest share of food-related emissions. Synthetic fertilizers release 2.6 gigatons of CO₂-equivalent (GtCO₂e) annually, contributing to soil degradation and nitrous oxide (N₂O) emissions, which are 298 times more potent than CO₂ over 100 years.

  • Processing and storage (20-25%): Energy-intensive operations such as drying, milling, and refrigeration account for a significant carbon footprint. Refrigeration alone contributes to 5% of global emissions, while food packaging adds 3-5 metric tons of CO₂-equivalent (MtCO₂e) annually, depending on material choice.

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