PARIS—One-third of all food produced in the world is never eaten, which has tremendous economic, social and environmental consequences. New research on behalf of Champions 12.3 finds that for every $1 companies invested to reduce food loss and waste, they saved $14 in operating costs—concrete evidence of the clear return on investment from food loss and waste reduction.
In a first-of-its kind analysis, The Business Case for Reducing Food Loss and Waste evaluated financial cost and benefit data for 1,200 sites across 700 companies in 17 countries, finding that nearly every site realized a positive return on their investment to reduce food waste. The types of investments companies made include: quantifying and monitoring food loss and waste, training staff on practices to reduce waste, changing food storage and handling processes, changing packaging to extend shelf-life, changing date labels, and other staff and technology investments.
The 14:1 return on investment comes from not buying food that would have been lost or wasted, increasing the share of food that is sold to customers, introducing new product lines made from food that otherwise would have been lost or wasted, reducing waste management costs and other savings.
Identify, Measure, Reduce
The Consumer Goods Forum is encouraged by the findings presented in the report as it has long stated that it makes business sense to identify, measure and reduce food waste from the supply chain—a stance solidified in 2015 with the CGF Food Waste Resolution.
The report recommends leaders from governments and business to take a “target, measure, act” approach to reduce the amount of food lost and wasted. First, every government and company should set a target to halve food loss and waste, in line with Target 12.3 of the Sustainable Development Goals. Second, governments and companies need to start measuring food loss and waste so they can identify hotspots and monitor progress over time. The recently launched Food Loss and Waste Accounting and Reporting Standard can help them do this. Third, leaders need to act, implementing programs and practices for reducing food loss and waste.
In line with the “target, measure, act” approach, the CGF will continue to collaborate and work with its partners and other key stakeholders to drive improvements in food loss and waste reduction. Additionally, the CGF will continue to provide vital implementation support for members committed to measuring and reporting on their food waste actions, such as the best practice sharing Food Waste Case Studies booklet.
