Closing the loop: how food manufacturers can best reduce their emissions

With pressure from retailers for food manufacturers to optimise their environmental credentials, improving the sustainability of the supply chain can make a real difference – but what direction should they take?​

Demand for sustainable options can be felt throughout the supply chain – from consumers’ purchasing choices through to the government introducing new legislation. So, there’s no better time to examine how sustainability in the food manufacturing industry can play a part in addressing the climate crisis.

A key ingredient for decarbonisation​

The world of ‘carbon reduction’ is everchanging and it’s easy to get overwhelmed with all the jargon it can bring. As well as the upcoming 2030 Paris Agreement deadline to reduce carbon, there’s also net zero, decarbonisation and mitigating greenhouse gases to consider… to name a few.

However, the ‘Scope 3 emissions’ topic has come into the spotlight recently as the bigger picture of the ‘true price’ of food is taken into account. Scope 3 emissions, usually defined as ‘other indirect emissions’, are emissions from assets not owned or controlled by the reporting organisation, but indirectly from their value chains. For food manufacturers, this includes elements such as transportation, distribution, processing and the use of sold products, waste generated in operations, and fuel- and energy-related activities.

In particular, food manufacturers may already be feeling that pressure from the supermarkets they supply, which are both championing the need to record and analyse Scope 3 emissions and imposing carbon reductions on manufacturers, driven by consumer demand.

To understand why there is a pressing need to move to a circular economy, see the video below:​

Why the supply chain is the key​

At first glance, it might seem daunting. The food industry boasts a vast, varied supply chain but, by taking small, simple steps, food manufacturers can embark on a journey to close the loop.

1. Loop it back to ingredients sourcing​

Before fresh ingredients arrive on a typical assembly line, they have already started to accumulate emissions. Artificial fertilisers account for 3-4% of the world’s fossil fuel​ use; however, one alternative that can be used to grow crops and ingredients is digestate – a nutrient-rich organic by-product from the food waste recycling process. As well as reducing carbon emissions, this transformed waste helps to nourish soil, avoiding the need for artificial fertilisers and/or other soil improvers. Choosing growers that use biofertilisers is essential to contributing to a circular economy. It further contributes to a factory’s closed loop if the digestate used on that farm is produced from the factory’s food waste. Food manufacturers are advised to source partners like Olleco, which can offer a circular service, collecting food waste and providing expert advice on how to best use the output as part of a closed loop.

2. Waste not​

Waste generated in operations is one of the key pillars of measuring Scope 3 emissions, but it is often left to the bottom of the priority list. It’s a valuable resource and could be the key to standing out from the crowd. So, whoever a food manufacturer entrusts to deal with theirs could have a huge impact on emissions.

It has been illegal to discharge used cooking oil into drains for many years and it cannot be recycled into either the human or the animal food supply chains, due to the food safety risks they pose, so it will need to be collected by a trusted waste carrier. Used cooking oil is the most environmentally sustainable feedstock available to make biodiesel, so creating fuel is by far the most sustainable way to dispose of them. Using a national company that can leverage a haulier network to keep carbon miles to a minimum will have an impact on emissions and a closed loop could be created if that network (or the one used to distribute the final food product) is fuelled on biodiesel made from a food manufacturer’s used oils and fats. Food businesses should partner with circular economy specialists like Olleco, which understands creating a closed loop requires a tailored service to get the most value from waste streams.

3. Powering the circular economy at scale​

Biofuels made from used cooking oil can be used to make delivery fleets more sustainable with 89% carbon savings, according to Olleco’s own biodiesel produced, and combined heat and power units can provide renewable energy to manufacturing sites.

From fries to the skies, the mission to de-carbonise touches all aspects of our lives, now extending past road transport into aviation. Mandates on the use of sustainable aviation fuel (SAF) made from renewable sources such as used cooking oil and fats, come into effect from the 1^st​ of January 2025. From this date, airlines in the UK and EU are obligated to use 2% SAF in their operations as a measure to reduce their emissions. Meaning the commercial and environmental benefits, as well as the demand for these materials is going to increase.

As the UK-leading circular economy company, Olleco’s biorefinery operates to the very highest environmental standards. The biodiesel​ it produces is made even more sustainable because the refinery has an integral anaerobic digestion plant that generates the heat and power required to run it. Both are fed from different wastes collected from its customers which effectively creates a closed loop recycling process for those who provide it with both used cooking oil and food waste, and purchase the resulting biodiesel or biogas.

If Olleco collects used cooking oil from a food manufacturer and supplies the company with the resulting biodiesel, it creates a ‘closed loop’, bringing that business into the circular economy. Rob Kaluza head of national sales for Olleco, says: “With clear carbon reduction objectives and fast approaching timelines, we’re seeing a positive trend to an increased emphasis on circularity, our customers are focused on maximising the holistic benefits derived from their used cooking oil and food waste.”   

The opportunity to tell a circular story​

Reducing Scope 3 emissions makes good brand sense. Not only does it help a food manufacturing company stand out in any future tender process, but it gives a unique story to tell – an award-winning story. Olleco worked alongside world leaders McDonald’s and Arla Foods UK to create a mutually beneficial closed loop​ that came second at the prestigious Circulars Awards – an initiative of the World Economic Forum. So, making changes to reduce emissions is not only the right thing to do, but those further up the supply chain already expect this level of commitment to sustainability.

One size doesn’t fit all​

There is no single way that works for every manufacturer to improve their environmental impact. However, there are several ways in which food manufacturers can start to reduce emissions: low-carbon sourcing, increasing the share of recycled raw materials, engaging with suppliers on their green credentials, or moving the waste generated further up the waste hierarchy. Food manufacturers should work with their supply chains to understand where their emissions are coming from and engage with credible suppliers to take a holistic approach to their environmental footprint.

Creating a closed loop doesn’t have to cost the earth. For a dependable service you can count on, get in touch with Olleco today.

Book a consultation today.​