The sector now has its own roadmap for decarbonisation. But will it drive change on the ground? David Burrows reports.
The Zero Carbon Forum (ZCF) yesterday launched its net-zero guide for the hospitality sector. This sets out how hotel groups, restaurant chains, breweries, pubs and catering companies can “quantify their carbon impact” and “define a pathway for net-zero”.
The 98 pages are easy to read, providing a good balance of data, discussion and deliverables. This is neatly broken up by sub-sector and actions across seven key areas: strategy and data, buildings, renewable energy, sourcing food and drinks, sourcing (other), transport and carbon removals. Here are 10 key takeaways.
1. Topline targets. The table on page 10 that displays key milestones across seven areas over the next 20 years is a good place to start. The headline targets are a 90% reduction in scope 1 and 2 emissions by 2030 and a 57% -78% cut in scope 3 emissions by 2040. It falls short of the British Retail Consortium (BRC) and Food and Drink Federation ambitions, both of which have targeted net-zero by 2040. The forum’s CEO Mark Chapman suggests we shouldn’t get too hung up on dates. “It’s a bit of a nonsense industries committing to dates – only individual companies can [do that],” he tells Footprint. Having spent nine months pulling all the data together, he insists this is “a fair set of ambitions for today”.
2. Total tonnage. Those hoping to find a ‘total emissions’ figure for the sector will be disappointed. This feels like a missed opportunity. WRAP had a punt as part of an impressive piece of work on food system emissions published earlier this month. But the forum’s ability to estimate a total figure should be greater than most given the granularity of the data from its 27 members. Without this total, the work arguably lacks the ‘size of the prize’ element that could spur action.
3. Carbon intensity. Instead, the roadmap offers up ‘intensity figures’ – tonnes of greenhouse gases per million pound of revenue (tCO2e/£m). An average pub (363.9tCO2e/£m) or restaurant (376.9tCO2e/£m) has a far lower intensity than a quick service restaurant (570.7tCO2e/£m) or hotel (579.1tCO2e/£m). Breweries have by far the largest intensities, generally (832.9tCO2e/£m), due to the complicated manufacturing process. Within those figures there will of course be considerable individual variation. A 300 year-old brewery will have a very different set of challenges and impacts to one built three years ago.
4. Scopes 1 and 2 – the (relatively) easy bit. Pathways to a 90% reduction in scope 1 and 2 emissions are laid out for each sub-sector. Each will have hotspots – and for most it is the switch to renewable energy that offers the biggest gains. ZCF’s 2025 target to reach 100% renewable electricity for direct operations is ambitious (the BRC is aiming for 2030). Members have already doubled the amount of renewables they buy to 20%. If all members moved to renewables it would save half a million tonnes of carbon. “I think buying brown energy for your brand is going to be pretty toxic going forward,” says Chapman. There are other hotspots, too. For pubs and restaurants it’s the switch from gas cooking and heating to electric (14.4% and 13.5% reduction respectively), while for hotels building control optimisation could reduce emissions by 12.3%. Hit the target and just 10% of emissions will need offsetting.
5. Scope 3 – the (much) harder bit. “We’ve got scopes 1 and 2 for 2030 and then there’s this big deep breath … supply chain … thousands of suppliers … oh, this is a bit difficult,” Chapman explains. “But it’s doable.” Scope 3 emissions are the big prize, accounting for 83% or more of the emissions across each sub sector, apart from hotels (61%). A series of graphics breaks down the main sources of all these emissions. Food waste will have to be reduced, menus will need to change and the supply chain must be decarbonised. By next year, supplier engagement plans will be in place (the forum is working on “consistent engagement” so suppliers are not being asked for slightly different data from several different customers). Come 2028, members will be prioritising those suppliers with science-based targets (SBTs). By 2035, 95% of suppliers will have verified emissions reduction plans in place. And by 2040, those supplying pubs, fast food chains and hotels will be net-zero.
6. Offset options. Still, the forum has predicted fairly heavy reliance on scope 3 offsets: from 22.3% in pubs to 39.8% in breweries. This certainly merits some further investigation. ZCF’s members will start thinking about “carbon removals” next year but the initial focus should be on “deep decarbonisation”. “Hospitality businesses should plan for substantially higher carbon offsetting prices in the future and therefore double down on efforts to reduce absolute emissions to near zero as a priority,” the roadmap warns.
7. Right here, right now. In the immediate future (2022), that means making the standard commitments other corporates are making – promising net-zero, joining RE100 (the global corporate renewable energy initiative) and setting science-based targets, for instance. Making those all-important baseline measurements is an early priority. Despite the myriad net-zero commitments, surprisingly few companies have done this. Consistency is key.
8. Footprint legwork. The target for public reporting of scope 1, 2 and 3 emissions is 2025. This is in line with the BRC’s plan, but feels late. The roadmap in fact notes how “leading companies will embrace transparency and use it to enhance their reputation and drive engagement with customers, investors and employees”. Some already are: Yum!’s total greenhouse gas emissions figure takes about two minutes to locate (36m tonnes CO2e in 2019; see page 30 of its 2020 citizenship report). Others are less transparent. Finding that data for McDonald’s takes around two hours, despite the chain having just announced a net-zero target (it’s two thirds of the way down this page and totals more than 54 million tonnes CO2e).
9. Fair carbon counting. There has been nervousness around the disclosure of footprints – Chapman likens using different approaches to “counting sales without a till system”. All members will therefore measure their emissions in the same way. Next year, a platform storing data to help visualise and track those footprints will come online. If the forum has standardised the approach to data measurement across all three scopes, there is no reason we shouldn’t see more data emerging. Diners and drinkers will increasingly demand it, while investors are already insisting on it. The roadmap makes several nods to the “reputational risk” of falling behind on net-zero; not to mention the “physical and transitional climate-related risks now and in the future. Setting a net zero strategy encourages businesses to explore their emissions impact and potential sources of climate-related risk across the value chain.”
10. Cash for carbon cuts. Still, budgets have shrunk on the back of the pandemic. The roadmap therefore provides a breakdown of the carbon reduction potential of 48 actions, as well as the challenges and costs in implementing them. From conducting life cycle assessments of packaging and switching refrigerants (both high costs) to zero deforestation in key commodity supply chains (medium cost) and menu changes (low cost). The involvement of CEOs and CFOs in the forum has been critical. Still, much of this remains a leap into the unknown. “Making a commitment to something that you haven’t fully costed out and you’re not quite sure how you’re going to do is [not the behaviour] of a listed company’s CEO,” says Chapman. Forum members should arguably be ahead of the game. Those not involved will be anxious they’re already being left behind. Will the roadmap put them off or stir them into action? This is an action-based sector and an action-based forum, Chapman says. “We’re beyond the slogans so let’s crack on.”
