Every year, World Environment Day reminds us of the vital role of nature and ecosystems in our lives. This occasion provides an ideal opportunity for companies worldwide to renew their commitment to sustainability by driving positive change and protecting the environment.
Its 2024 theme, #GenerationRestoration, highlights the importance of land restoration, combating desertification and strengthening drought resilience in countering the negative impacts of humankind on planetary health. As key users of land, fast-moving consumer goods (FMCG) companies are in the spotlight this year. The agriculture and food sectors are responsible for more than one-third of global greenhouse gas (GHG) emissions, 70 percent of which come from land use.
Luckily, industry players are increasingly realising their responsibility to reduce environmental impact and adopt climate-friendly practices. Businesses are starting to take tangible steps to make this happen. With a growing number of consumers voting with their wallets or at least expecting robust actions from brand owners, this makes sense from economic and environmental perspectives.
According to a Kantar survey, one out of every five dollars spent on FMCG products comes from an environmentally conscious consumer. In fact, the study found that sustainability could bring $382 billion to FMCG brands.
Hopefully, this will be another rationale for FMCG companies of all sizes pursuing ambitious sustainability initiatives. For instance, solar panels are in the pipeline for 11 out of 26 IFFCO manufacturing units in scope. In Ghana, the company piloted an innovative solution that turns food waste into energy, which helps reduce GHG emissions by a minimum of 70 percent compared to conventional fuels.
Launching green products
The company has also launched a plant-based meat alternative brand. With growing awareness, plant-based diets, whose environmental footprint is 14 times lower than meat-based ones, are witnessing a rise in popularity. FMCG companies are instrumental in catering to this new demand by providing a wide variety of sustainably sourced, produced and packaged foods, driving the shift to plant-based diets. This shift also presents a substantial economic opportunity. The plant-based meat and dairy products market in the Middle East and Africa region is expected to exceed $300 million this year.
Reducing food waste
However, energy generation is not the only contributor to GHG emissions in the FMCG sector. Food waste deposited in landfills emits methane while it decomposes. So-called landfill gas accounts for around 10 percent of global anthropogenic methane emissions. This can be prevented by reducing food loss and waste, composting, and other methods with additional environmental benefits, such as transforming waste into a natural fertiliser. This fertiliser, whether for gardens or potted plants, improves soil health and increases its productivity in an environmentally friendly way.
How individuals can help
Individuals can also do their part for sustainability by following the principle of the three Cs – compost, conserve, cultivate – with composting at home or in their communities becoming more accessible by the year. Companies such as The Waste Lab in the UAE now offer home composting services, including supplying compost bins to pick up the final product once it is ready. Meanwhile, The Sustainable City in Dubai has launched a communal composting program that enables residents to collect their food leftovers and turn them into compost, which is then used to fertilise the neighbourhood’s gardens.
Another significant initiative is Ne’ma – the UAE National Food Loss and Waste Initiative, which aims to reduce food waste by 50 percent by 2030. Ne’ma is part of the UAE’s commitment to the United Nations’ Sustainable Development Goal (SDG) 12.3.
By embracing sustainable principles across their operations and supply chains, and motivating consumers to lead an eco-friendly lifestyle, FMCG companies are playing a key role in preserving a healthy planet for future generations. In addition, every professional, consumer and individual holds significant power to drive change through their choices. We all “vote” with our selections of products and brands. Key areas where we can make a difference in our daily lives include: energy use, such as overall consumption and hot water usage; diet by reducing animal proteins on our plates and opting for diverse, locally sourced ingredients; and commuting patterns. This involves walking, cycling, using public transport or carpooling instead of driving alone. To further enhance our impact, one can explore the 60 actions recommended by WWF.
Dina Epifanova is Global Head of Sustainability at IFFCO Group.
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