ESG Reporting for Food Service: What You Need to Include

Environmental, Social, and Governance (ESG) reporting is no longer optional for serious hospitality businesses. Whether driven by investor requirements, client expectations, or incoming regulations, you need to be able to report credibly on your environmental performance.

Food waste is a key component. Here's what you need to know.

The Reporting Landscape

Several frameworks and requirements now apply to food service:

CSRD (Corporate Sustainability Reporting Directive): EU legislation requiring detailed sustainability reporting for large companies and their value chains.

SFDR (Sustainable Finance Disclosure Regulation): Affects investment reporting and therefore what data investors require from portfolio companies.

SECR (Streamlined Energy and Carbon Reporting): UK requirement for energy and emissions disclosure.

TCFD (Task Force on Climate-related Financial Disclosures): Voluntary but increasingly expected framework for climate risk and opportunity disclosure.

Plus sector-specific initiatives like the Sustainable Hospitality Alliance reporting framework.

What to Report on Food Waste

At minimum, credible food waste disclosure should include:

Quantitative metrics:

• Total food waste (tonnes or kg)
• Food waste per cover or per revenue
• Year-on-year change
• Waste breakdown by category (prep, plate, spoilage)

Context:

• Methodology used for measurement
• Scope (which operations, which waste streams)
• Targets and progress against them

Environmental translation:

• CO2e emissions from waste
• Other environmental impacts (water, land use) if tracked

Measurement Requirements

ESG auditors will scrutinise your methodology. Good practice includes:

Documented processes: Written procedures for waste measurement that staff follow consistently.

Verification: Some form of check on data accuracy—spot audits, technology verification, third-party review.

Completeness: Clear statement of what's included and excluded.

Consistency: Same methodology year-on-year to enable valid comparisons.

Manual estimates don't stand up to scrutiny. Increasingly, auditors expect systematic data collection—whether manual with rigorous protocols or technology-enabled.

Integrating with Scope 3 Reporting

Food waste affects Scope 3 emissions in two categories:

Category 1 (Purchased goods): The embedded emissions in food you bought but didn't use productively.

Category 5 (Waste): The disposal emissions from food waste.

Both require tracking by food category to calculate accurately. Generic "food waste" tonnage isn't enough—you need to know whether you're wasting beef (high emissions) or vegetables (low emissions).

This is where automated systems with food recognition capabilities become valuable—they capture the detail needed for accurate Scope 3 calculation.

Setting and Reporting Targets

Science-based targets have become the standard. For food waste, this typically means:

• SDG 12.3 alignment: Commit to halving food waste by 2030 against a baseline year
• Annual milestones: Interim targets showing the path to 2030
• Scope clarity: Which operations, which waste types

Report progress transparently:

• Actual performance vs target
• Explanation of significant variances
• Actions taken to address shortfalls
• Updated forward-looking plans

Best Practice Examples

Leading hospitality companies are reporting:

Hilton: Reports food waste per available room across managed properties, with regional breakdown and trend analysis.

Compass Group: Details waste reduction initiatives by sector, with quantified environmental impact.

Accor: Includes food waste in their Planet 21 reporting with clear methodology and third-party verification.

Study their reports for approaches that fit your scale.

Getting Audit-Ready

If you're preparing for ESG audit or enhanced disclosure:

1. Document everything: Methodology, data sources, calculations, assumptions
2. Build data trails: Ability to trace reported figures back to source
3. Test consistency: Ensure data reconciles across different reports
4. Prepare narratives: Be ready to explain the story behind the numbers
5. Address gaps: If you can't report something, have a plan to fill the gap

Talk to us about preparing your food waste data for ESG reporting requirements.