Scope 3 Emissions for Food Supply Chains: Farm to Retail Reporting

Whether you’re a farm-based producer, food processor, or branded supplier to retailers, Scope 3 emissions are now central to sustainability reporting. Some organisations report under CSRD directly; others use VSME voluntarily to respond to retailer and brand requests.

Either way, food supply chains have distinctive Scope 3 profiles—from agricultural methane and fertiliser use to cold chain logistics and retail distribution. This guide explains where food-related Scope 3 emissions typically sit, how small suppliers can calculate them proportionately, and how to report data that retailers can actually use.

Why Scope 3 Matters for Food Under CSRD

Under CSRD and ESRS E1, companies must disclose material greenhouse gas emissions across their value chains. For food, Scope 3 is often larger than Scopes 1 and 2 combined.

Retailers focus on Scope 3 because it:

• Represents upstream agricultural impacts
• Captures processing, packaging, and logistics
• Enables product-level and category-level analysis

Many food suppliers first encounter Scope 3 through customer questionnaires, as outlined in CSRD supplier requirements: what small businesses should expect in 2025.

Mapping the Food Supply Chain (Farm to Retail)

A practical Scope 3 approach starts with mapping activities rather than categories.

Typical stages include:

1. Primary production (farms, raw materials)
2. Processing and manufacturing
3. Packaging
4. Cold chain transport and storage
5. Distribution to retail

You do not need perfect boundaries at the start. A clear, consistent map is more important than completeness.

Upstream Agricultural Emissions

For many food products, agriculture is the largest Scope 3 source.

Common emission drivers include:

• Livestock methane (enteric fermentation, manure)
• Fertiliser-related N₂O emissions
• On-farm energy use

Small suppliers usually estimate these using standard emission factors applied to activity data (animals, fertiliser quantities, crop area). This approach aligns with accepted practice across EU food reporting and mirrors methods used in Scope 3 emissions for consumer goods suppliers.

Processing and Manufacturing Impacts

Processing emissions may sit in Scope 3 or Scopes 1–2 depending on ownership.

Where processing is outsourced, typical Scope 3 inputs include:

• Energy used by third-party processors
• Yield losses and by-products
• Cleaning and sanitation processes

Suppliers often use:

• Spend-based or output-based estimates
• Processor-provided averages
• Industry benchmarks

Clear explanations of assumptions are usually sufficient for retailer reporting.

Packaging and Materials

Packaging contributes to Scope 3 through material production and conversion.

Common approaches include:

• Weight of packaging by material (plastic, paper, glass, metal)
• Average emission factors per material
• Inclusion of secondary and tertiary packaging where relevant

This data often overlaps with waste and circular economy disclosures and can be reused across CSRD topics.

Cold Chain Logistics and Storage

Cold chain emissions are a food-specific hotspot that retailers pay close attention to.

Typical sources include:

• Refrigerated transport (diesel or electric)
• Cold storage and warehouses
• Refrigeration leakage (often qualitative at SME level)

Small suppliers usually estimate emissions using:

• Distance × weight calculations
• Average emission factors for refrigerated transport
• Energy consumption estimates for storage

Precision is not required initially. Consistent methodology matters more than detailed modelling.

Distribution to Retail

Downstream distribution often includes:

• Transport from factory or warehouse to distribution centres
• Last-mile delivery (where applicable)

If retailers control final distribution, suppliers typically:

• Report emissions up to the handover point
• Explain downstream assumptions clearly

Transparency about boundaries helps retailers integrate supplier data correctly.

Workforce Considerations in Scope 3

While Scope 3 is emissions-focused, CSRD also links value-chain emissions to people and practices.

Food retailers may ask:

• Where high-risk agricultural labour sits
• Whether suppliers understand social risks alongside emissions

You do not need to quantify social impacts within Scope 3 calculations. However, explaining workforce context alongside emissions strengthens overall disclosures.

Simplified Calculation Methods That Work

For small food suppliers, accepted approaches include:

• Activity-based estimates (kg product × factor)
• Spend-based estimates (where activity data is missing)
• Hybrid approaches using best available data

Spreadsheets are widely used and fully acceptable. Many suppliers also reuse energy calculations from Scope 1 & Scope 2 emissions for manufacturing: a small manufacturer’s guide where processing is in-house.

Reporting Scope 3 Data to Retailers

Retailers usually want:

• Clear explanation of methodology
• Emissions by major stage (farm, processing, logistics)
• Year-on-year consistency

They rarely expect:

• Full product carbon footprints
• Third-party verification from small suppliers

CSRD prioritises credible estimates and transparency, not perfection.

Frequently Asked Questions

Do small food producers need to calculate full Scope 3 emissions?

Only material categories are required. Most start with agriculture, packaging, and logistics, then expand over time as data improves.

How accurate do cold chain estimates need to be?

High-level estimates using standard factors are acceptable. Document assumptions and apply them consistently each year.

What if we rely on many small farms?

Using average emission factors per product or region is common practice. CSRD accepts aggregated estimates where primary data is impractical.

Can Scope 3 reporting be done without consultants?

Yes. Most food suppliers manage Scope 3 calculations with spreadsheets and public emission factors. Structure and documentation matter more than tools.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive
• Scope 3 – Indirect value-chain greenhouse gas emissions
• Cold chain – Temperature-controlled transport and storage
• Emission factor – Multiplier converting activity data into emissions
• Value-chain workers – People involved in upstream and downstream activities

Next Steps for Food Suppliers

Start by mapping your main supply chain stages and identifying the biggest emission drivers. Gather available activity data, apply recognised emission factors, and document assumptions clearly.

With a structured and proportionate approach, Scope 3 reporting becomes a practical way to meet retailer CSRD expectations—while building a clearer picture of emissions from farm to retail.