The global food retail sector is failing to take substantial action against methane emissions, a key contributor to climate change. A report by The Changing Markets Foundation reveals that despite their influential position, major food retailers—ranging from Walmart to Carrefour—are not prioritizing methane reduction in their climate strategies. With animal agriculture accounting for nearly 60% of global methane emissions, the lack of specific reduction targets from leading supermarkets highlights a significant gap in sustainable supply chain management. This article explores why supermarkets must lead the charge in tackling methane emissions and how they can strengthen their sustainability strategies.
The Urgency of Addressing Methane Emissions
Methane, a greenhouse gas 80 times more potent than CO2 over the short term, poses a significant climate threat, especially in the food industry. Animal agriculture is responsible for the majority of methane emissions, primarily through enteric fermentation, manure management, and food waste. For food retailers, these emissions form a substantial part of their indirect (Scope 3) emissions, with meat and dairy products being the largest contributors.
Despite the severity of the issue, most global retailers have not implemented specific targets to reduce methane emissions. According to The Changing Markets Foundation’s report, of the 20 largest global food retailers, none had methane-specific reduction targets in place. This lack of commitment is particularly concerning given the mounting pressure from consumers, policymakers, and investors for companies to take more meaningful action on climate change.
A Missed Opportunity for Leadership
Retailers are in a unique position to influence the entire supply chain, from sourcing to consumer behavior. However, their failure to set clear methane reduction targets represents a missed opportunity to establish themselves as leaders in the transition to a sustainable food system. The report emphasizes that addressing methane emissions should not only be viewed as a climate risk mitigation strategy but also as a chance for retailers to innovate and enhance their sustainability credentials.
By publicly committing to methane reduction targets and reporting progress transparently, food retailers can drive significant change in the sector. The benefits of doing so go beyond environmental impact—retailers can enhance their brand reputation, build consumer trust, and align with the growing demand for sustainable products.
Leading Examples in the Industry
While the majority of global retailers are lagging, some companies are setting a positive example. European retailers such as Ahold Delhaize, Migros, and Sainsbury’s have set ambitious Scope 3 reduction targets, including methane. Ahold Delhaize, for instance, aims for a 37% reduction in Scope 3 emissions by 2030. These targets reflect a growing recognition among some retailers of the need to integrate sustainability deeply into their business models.
Moreover, retailers like Carrefour are taking proactive steps by setting plant-based sales targets as part of their corporate sustainability strategies. However, even these leaders face challenges in implementing comprehensive methane reduction plans across their entire supply chains. The success of these initiatives relies on clear targets, robust action plans, and an integrated approach that involves all stakeholders, from suppliers to consumers.
The Role of Senior Executives in Driving Change
A critical barrier to progress is the lack of accountability at the senior executive level. The report highlights that few retailers are linking executive compensation to the achievement of sustainability targets, including methane emissions reductions. Only Carrefour has set a specific plant-based sales target (€640 million by 2026), signaling a commitment to reducing emissions through dietary shifts. However, broader industry adoption of this model remains scarce.
To effectively address methane emissions, retailers must incentivize senior executives not only to set ambitious targets but also to take measurable action. This can be achieved by incorporating environmental performance metrics into executive compensation packages and establishing clear accountability frameworks. As the focus on sustainability intensifies, retailers must recognize that leadership on this issue is not optional—it is essential for long-term business viability.
Moving Forward: What Retailers Can Do Now
The report suggests several strategies for retailers to accelerate methane emissions reduction, including increasing plant-based protein offerings, incentivizing suppliers to adopt sustainable practices, and transparently reporting on methane emissions. Retailers should also explore innovative solutions in collaboration with technology providers and NGOs to reduce emissions across their supply chains. Furthermore, setting specific, science-based methane reduction targets and monitoring progress through regular reporting are key steps toward demonstrating commitment and driving meaningful change.
In addition, enhancing consumer engagement with sustainability initiatives can help retailers capitalize on the growing demand for environmentally friendly products. By promoting plant-based alternatives and sharing emissions data transparently, retailers can create a market for sustainable products while encouraging broader shifts in consumer behavior.
Conclusion
The findings from The Changing Markets Foundation’s report underscore a critical gap in the food retail sector’s approach to sustainability. While some retailers are beginning to take steps toward addressing methane emissions, the majority are falling short in setting measurable targets and creating action plans. For retailers to lead the way in the fight against climate change, they must prioritize methane reduction and integrate sustainability deeply into their operations. By setting ambitious, science-based targets, holding executives accountable, and transparently reporting progress, retailers can not only mitigate climate risks but also position themselves as leaders in the transition to a sustainable future. The time for action is now.