About one-third of food produced globally (1.3 billion metric tonnes) is either lost or wasted. This results in an annual economic cost of approximately US $940 billion and significant greenhouse gas emissions. If this food waste were classified as a country, its carbon footprint would be one of the largest carbon emitters in the world. To address food waste problem, the Consumer Goods Forum (CGF) partnered with Capgemini to create and publish a comprehensive report entitled “Turning Waste into Value: A Blueprint for Collective Transformation of Food Waste”, which provides a framework for reducing waste and developing new business opportunities throughout the food value chain (FVC).

The report sets forth a comprehensive two-tiered approach for addressing food waste by offering both proactive prevention and creation of value options. It also suggests that organisations focus on preventing food waste by investing in improved production processes and developing better consumption behaviors as well as improved planning methods to improve the flow of raw materials through the FVC. Second, the letter encourages companies to develop new products and applications from food waste that cannot be prevented and create profit from the resulting new business.

Annabelle Souchon, Group CSR Manager, Bel, Co-chair CGF Food Waste Coalition of Action, said, “Helping consumers reduce household food waste starts with making it simple, practical, and rewarding. Brands have a real opportunity to turn expertise into everyday tips that make a difference. For example, Bel Group uses its iconic brands to inspire consumers to see leftovers as a creative resource, sharing simple recipes and tips to turn surplus food into delicious meals.”

In addition, this blueprint for transforming food waste includes an easy, actionable, three-stage playbook for helping companies to speed the actions they take to reduce their food waste. The three stages guide organisations, starting with developing a foundation of best practices, followed by addressing the most difficult waste streams by partnering with supply chain partners and ultimately engaging consumers more effectively on the path toward achieving these goals.

“Food loss is not an inevitable cost of doing business — it’s a solvable, system-wide challenge. Through the CGF Food Waste Coalition, we are proving that eliminating waste is not only possible, but a powerful catalyst for innovation and value creation", said Chris Franke, Senior Manager of Global Sustainability, Walmart, Co-chair CGF Food Waste Coalition of Action.

Industry Participation & Best Practices

The report contains many contributions from CGF Members, including Kraft Heinz, Bel Group, Tesco, Loblaw and Walmart. As highlighted throughout the report, average food waste among member companies is approximately 6.9 kg of food waste per tonne of product handled, while members also achieved double-digit percentage reductions of waste through specific initiatives. As an example of the relationship between food waste reduction and economic benefits, many of the same cases show that cost savings are an added benefit and that these same members produced lower levels of greenhouse gas emissions.

The examples listed above highlight how strategic thinking about food waste can provide measurable business advantages for CGF Members, while supporting sustainability goals. The Coalition believes that coordinated action is required among retailers, manufacturers, and partners throughout the food value chain in order to create system change.

Tools and Assistance for Implementation of Strategy

In addition to preventative measures, this blueprint offers various tools to evaluate and benchmark their performance as it relates to food waste, including a gap assessment method that allows businesses to evaluate their level of "maturity" in the following areas: forecasting, managing inventory, innovating packaging solutions, working in collaboration with suppliers, and engaging consumers.

This report takes a circular economy approach to define and understand the aforementioned tools and encourages participant companies to consider waste as an opportunity for innovation and competitive advantage, rather than just as a cost to minimise. Additionally, the report outlines that the ability to unlock this potential will require data, technology, and collaboration across a wide variety of operational environments.

Wider Context and Industry Importance

Food waste has become one of the most significant environmental, social and economic challenges in the world today. Along with contributing to global greenhouse gas emissions, food that is wasted represents inefficiencies in the production and distribution process that negatively affect both profit margins and use of natural resources. Moreover, the report from the CGF puts forth recommendations in this broader context and recommends that systemic change occurs at an industry level rather than solely at a company level.

The coalition members participating in the CGF’s Food Waste Coalition come from across the globe and from various sectors and industries; they have agreed collectively that to end food waste, we must work collaboratively across sectors.

By contributing to extended dialogues on sustainability, including how to enhance the robustness of supply chains and align business activities with the world’s environmental objectives, the coalition is helping to engage corporations in this area of sustainability.

Future Implications for Action

Turning Waste into Value indicates a renewed focus from the industry to move away from reactive waste management and towards proactive value creation. The combination of practical tools with strategic direction will provide the best advantage to the food industry through embedding sustainability at a deeper level within business operations than currently exists.

In the future, the degree of success for the framework will be determined by the degree to which it is widely implemented and how many measurable results coalitions and stakeholders in the food system are able to produce as a result of the implementation of this framework. Future monitoring and reporting on progress will likely impact future policy and corporate sustainability initiatives.

The publication of the report is an example of a growing interest among stakeholders in the consumer goods industry and among consumers regarding food waste, efficient use of resources, and reduced climate impact.