Navigating four key product carbon footprint hotspots in FMCG

As the urgency of addressing climate change intensifies, businesses in the Fast-Moving Consumer Goods (FMCG) sector are increasingly recognising the importance of reducing their product carbon footprint. From sourcing raw material to transporting finished products, every stage of the product lifecycle offers opportunities to reduce emissions. By identifying and addressing key emission hotspots, FMCG companies can enhance their environmental sustainability, meet growing consumer demands, comply with regulations, and enhance market competitiveness.??

Understanding where emissions occur is crucial.

Let’s explore emission hotspots?and how businesses can take meaningful action.??

01. Seeds of change: How raw materials shape your product footprint??

Raw material sourcing is a significant emissions hotspot in the FMCG sector. The choice of materials and their origins significantly influence the overall carbon footprint of products. Engaging with suppliers who prioritise sustainable practices is a key enabler for businesses looking to reduce their environmental impact.?

The sustainability of raw materials depends on several factors, including:?

• The practices suppliers use to source and transport materials.?

• The use of materials that can be recycled, reused, or repurposed.?

• The consideration of renewable materials.?

Establishing transparent relationships with suppliers ensures your supply chain aligns with your sustainability goals. This transparency? reduces emissions and builds trust with consumers, who are conscious of a product’s carbon footprint and wider environmental impact of their purchases. Aligning values and maintaining transparent relationships across your supply chain supports emission reduction efforts beyond just the raw material, extending to transportation, electricity, and fuel. Improved dialogue within the supply chain can also lead to supplier-specific emissions data, helping to refine and enhance a product carbon footprint measurement.??

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02. Lean, green, manufacturing machine for emissions reductions?

The manufacturing process offers significant opportunities to reduce a products carbon footprint as these emission activities are often within direct control. By avoiding energy intensive processes and adopting renewable energy sources, businesses can lower their carbon footprint . Optimising process efficiencies can help avoid unnecessary waste and streamline production.??

Key strategies to explore include:?

• Upgrading to energy-efficient machinery.?

• Optimising production schedules to minimise waste.?

• Implementing robust monitoring systems to track energy use and identify areas for improvement.?

These efforts not only reduce emissions but also lead to significant cost savings, making them a win for both the environment and the bottom line.?

Speaking at a recent webinar on product carbon footprint hotspots, Toitū Science and Advisory experts commented, “Manufacturing is where we can make significant strides in reducing our carbon footprint. By adopting renewable energy and optimising your processes, we can create a more sustainable operation.”?

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03. Road to FMCG sustainability: logistics efficiencies?

The transportation of goods from production facilities to retail shelves or directly to consumers offers another opportunity for businesses to reduce their products emissions footprint.??

Optimising logistics by improving load efficiency, reducing travel distances, and using low-emission vehicles can make a big difference in cutting emissions. By also using advanced planning tools and digital solutions, transportation routes can become streamlined reducing the environmental impact and saving costs.??

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04. Think outside the box: unwrap sustainable packaging?

Another impactful area is the design phase. Product packaging is the first thing consumers see and plays a key role in showcasing sustainable commitments.??

There are various external influences on product packaging. Consumer preferences are shifting due to rising concerns of plastic waste, while governments are increasing regulations through importer restrictions and ‘polluter pays’ schemes. Retailers must also consider the packaging of the products they stock affecting market access. It’s important to consider these influences when designing your packaging.?

Innovative packaging solutions that minimise material use and enable sustainable disposal can greatly reduce emissions. Designing packaging for circularity—where materials can be reused or repurposed—further minimises environmental impact.??

Here are six considerations when looking at product design:??

• Designing packaging that reduces the amount of material required.??

• Managing waste disposal in product markets.?

• Impact on distribution efficiencies, including weight and size.?

• Sourcing packaging materials sustainably.??

• Implementing circular design for reuse and repurposing.??

• Ensuring usability and maintaining product quality for end consumers.??

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Collaborating for sustainability?

Collaborating with distribution partners and end consumers is crucial for identifying areas of improvement. Engaging with distribution partners helps achieve accurate forecasting and inventory management, reducing waste from unsold goods. Effective consumer communication is equally important. Educate customers on sustainable product usage to foster eco-friendly behaviours to strengthen commitment to sustainability. This can also turn consumers into active participants in the journey.?

Addressing these emission hotspots is a complex but essential task for FMCG businesses committed to reducing their product carbon footprint. By understanding the primary emission hotspots and implementing practical mitigation strategies, companies can make significant strides in reducing their carbon footprint. Third-party certification further enhances the credibility of these efforts, ensuring that businesses can confidently communicate their achievements to stakeholders.??

If you are looking to certify your product or organisation, talk to the Toitū Team today.?