How Food Companies Prioritize Sustainability in Provider Selection
by Brian Everett, on Aug 8, 2025 12:33:29 PM
As consumer expectations rise and regulatory pressures mount, the transportation choices that food manufacturers and retailers make are no longer just about cost and speed—they’re about carbon. At a time when climate consciousness is reshaping every link in the supply chain, food companies are increasingly factoring sustainability—and specifically Scope 3 emissions—into how they select and manage carriers and logistics partners.
In fact, in a recent LinkedIn poll conducted by Food Shippers of America (FSA) approximately 35% of food shipper respondents say they consider sustainability goals and Scope 3 emissions when selecting their carriers and logistics providers. Another 6% say they somewhat factor this in and are starting to include in their selection process.
And momentum and interest in this area is growing. In fact, approximately 12% of participants in the FSA LinkedIn poll say they are planning to consider sustainability goals and Scope 3 emissions when selecting carriers and logistics providers.
Food Shippers Focus on Scope 3 Emissions
Scope 3 emissions, which include all indirect emissions that occur in a company’s value chain (outside of their own operations), often represent the largest share of a food company’s carbon footprint. For most, this includes transportation and distribution—a segment historically harder to measure and manage due to its dependency on third-party providers.
As a result, food companies are increasingly scrutinizing the environmental performance of their carriers. According to industry analysts, more food manufacturers are incorporating emissions reporting, fuel efficiency, and sustainability initiatives into their RFPs and ongoing contract reviews.
Scope 3 emissions involving transportation and distribution often represent the largest share of a food company’s carbon footprint.
Here are some examples of what FSA members have reported in their Scope 3 emissions:
Nestlé, a leading multinational food and drink processing conglomerate based in Switzerland:
- Scope 3 emissions: Approximately 95% of Nestlé’s total emissions are Scope 3
- Key contributors: Agriculture, ingredient sourcing, packaging, and logistics
- Goal: Achieve net-zero emissions by 2050
- Action: Nestlé is working with suppliers to reduce emissions intensity in farming, and it's piloting low-emission logistics solutions
- Read more about Nestle’s sustainability initiatives.
PepsiCo, a global leader in the food and beverage industry based in New York:
- Scope 3 emissions: Approximately 93% of PepsiCo’s carbon footprint is Scope 3
- Key contributors: Purchased goods and services (e.g., crops), transportation, and packaging
- Goal: Reduce Scope 3 emissions by 42% by 2030 (from a 2015 baseline)
- Action: Working with farmers to adopt regenerative practices and increasing use of electric vehicles in its logistics network
- Read more about PepsiCo’s sustainability initiatives.
Unilever is one of the world’s largest consumer goods companies in the categories of foods, ice cream, personal care, home care, and beauty and well-being:
- Scope 3 emissions: Over 65% of total emissions come from Scope 3 activities
- Key contributors: Raw materials, third-party manufacturing, and distribution
- Goal: Reduce absolute energy and industrial Scope 3 GHG emissions from purchased goods and services (associated with ingredients, packaging), upstream transport and distribution, energy and fuel-related activities, direct emissions from use of sold products (associated with HFC propellants), end-of-life treatment of sold products, and downstream leased assets (associated with ice cream retail cabinets) by 42% by 2030 (from a 2021 base year).
- Action: Engaging logistics partners to reduce transport emissions and sourcing materials with lower carbon intensity
- Read more about Unilever’s sustainability initiatives.
General Mills is one of the oldest and most-trusted food companies with products in 90% of American pantries:
- Scope 3 emissions: Approximately 92% of total emissions are Scope 3
- Key contributors: Agriculture and ingredient sourcing, transportation, and packaging
- Goal: Reduce Scope 3 emissions by 30% by 2030
- Action: Focusing on regenerative agriculture and partnering with logistics providers to track and lower transport emissions
- Read more about General Mills’ sustainability initiatives.
Kraft Heinz
- Scope 3 emissions: Approximately 95% of emissions are Scope 3
- Key contributors: Raw materials, packaging, and distribution
- Goal: Achieve net-zero by 2050, with interim target of 50% reduction for Scope 3 reductions by 2030
- Action: Reporting progress in its ESG updates and partnering with suppliers and transport providers on emissions transparency
- Read more about Kraft Heinz sustainability initiatives.
Redefining Partnerships
Rather than relying solely on price or service levels, sustainability is becoming a key metric for many food manufacturers, retailers and distributors. Logistics providers that invest in electric or alternative-fuel fleets, offer real-time emissions data, and align with science-based targets are gaining competitive advantage.
Electric Vehicles (EVs) have increasingly become a strategy in having a positive impact on Scope 3 emissions.
“We don’t just ask our carriers if they’re green—we ask how,” says a sustainability executive at a major U.S.-based packaged foods company. “Are they transitioning to low-emission trucks? Are they optimizing routes to reduce miles? Do they offer transparent Scope 3 tracking tools? These are non-negotiables now.”
A critical part of sustainable logistics is data transparency. Food shippers are looking for partners who can not only report emissions data, but also help analyze and reduce it over time. Some companies are leveraging logistics tech platforms or carbon accounting tools that aggregate fleet emissions data and benchmark performance across providers.
Collaborative initiatives, such as the EPA’s SmartWay program, also play a role. Many food manufacturers prefer carriers who are SmartWay-certified, demonstrating a proven commitment to energy efficiency and emissions reduction.
Innovation in Sustainable Freight
Carriers and logistics providers that bring innovation to the table—such as electric refrigerated trucks, low-emission last-mile solutions, or intermodal optimization—are better positioned to win business. In fact, some food companies now pilot new sustainability technologies with select logistics providers, offering them both funding and a path to long-term partnership.
As food companies move closer to achieving net-zero goals, pressure will only grow to reduce Scope 3 emissions. Carriers and 3PLs that cannot demonstrate measurable progress risk losing contracts to more environmentally forward competitors. At the same time, collaboration and transparency will remain central—sustainability in logistics isn’t just a checkbox, it’s a shared journey.
The bottom line? For food companies, selecting a logistics provider is no longer just about moving goods—it's about moving the needle on sustainability. Scope 3 emissions are a strategic priority, and transportation partners who can help reduce them are becoming indispensable players in the future of food supply chains.
Related Articles:
- PepsiCo: A Closer Look at ESG Supply Chain Priorities
- Mars Cuts Supply Chain Emissions by 16%
- Green Logistics and the Food Chain
- Food Brands Focus on Sustainability to Celebrate Earth Day
- Sysco Targets Transportation and Production Emissions in Sustainability Goals
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