If you're working on ESG reporting, you've probably discovered that Scope 3 emissions are both the largest category and the hardest to address. For hospitality businesses, food waste sits right in the middle of this challenge—and opportunity.
A Quick Scope 3 Refresher
The GHG Protocol divides emissions into three scopes:
Scope 1: Direct emissions from owned sources. Your gas ranges, delivery vehicles, refrigerant leaks.
Scope 2: Indirect emissions from purchased energy. Electricity to run your kitchen.
Scope 3: Everything else in your value chain. Purchased goods, waste disposal, business travel, employee commuting.
For most hospitality businesses, Scope 3 is 70-90% of total emissions. And within Scope 3, purchased goods (Category 1) is typically the largest bucket—dominated by food.
Where Food Waste Fits
Food waste impacts Scope 3 in two ways:
Embedded emissions. Every kg of food you buy carries the emissions from its production—farming, processing, transport. When you waste food, those emissions were released for nothing. The more you waste, the higher your effective Scope 3 per cover served.
Waste disposal emissions (Category 5). When food waste goes to landfill, it releases methane. This is a separate Scope 3 category from purchased goods. Reducing food waste directly reduces these disposal emissions.
The embedded emissions are usually much larger than disposal emissions. A kilo of beef carries 40+ kg CO2e from production; sending it to landfill adds maybe 0.7 kg CO2e. But both count.
Why Food Waste Is a Lever
Most Scope 3 advice focuses on "engage your suppliers" and "choose lower-carbon alternatives." These are valid but slow and often outside your direct control. Switching from beef to plant-based proteins requires changing customer preferences. Getting suppliers to measure and reduce their emissions requires industry coordination.
Food waste reduction is different:
- Immediate. Actions you take this month reduce emissions this month.
- Controllable. It's internal operations, not supplier negotiation.
- Measurable. Weight-based waste tracking converts directly to carbon impact.
- Financial upside. Unlike many sustainability investments, waste reduction saves money.
A 30% reduction in food waste can translate to 5-10% reduction in food-related Scope 3 emissions, depending on your waste composition. That's a meaningful contribution achievable within a year.
Reporting Food Waste in ESG Frameworks
Different ESG frameworks treat food waste differently:
SASB (Sustainability Accounting Standards Board): The restaurant industry standard (FB-RN-150a.1) specifically asks for food waste data. Hospitality companies using SASB should be tracking this.
GRI (Global Reporting Initiative): GRI 306 covers waste. Food waste should be disclosed as part of waste generation and diversion from disposal.
CDP: The climate change questionnaire includes Scope 3 emissions. Purchased goods and waste should both include food-related data.
TCFD: Climate-related financial disclosures increasingly expect Scope 3 measurement, including supply chain emissions where food sits.
The direction of travel is clear: food waste data is becoming expected, not optional, for sustainability reporting.
Calculating Carbon Impact from Waste Reduction
To claim carbon savings from waste reduction, you need:
Baseline waste composition. What you were wasting, by food category.
Current waste composition. What you're wasting now.
Emission factors. kg CO2e per kg for each food type.
The calculation:
Carbon reduction = (Baseline waste × emission factors) - (Current waste × emission factors)
Keep records of your methodology. Auditors and ESG raters will want to see how you calculated claims.
Integrating with Your ESG Strategy
Food waste shouldn't be a standalone initiative. Integrate it with broader ESG work:
Set targets aligned with external frameworks. SDG 12.3 (50% reduction by 2030) is the most common reference. Aligning your target with an external benchmark adds credibility.
Include waste in supplier conversations. If you're asking suppliers about their carbon intensity, ask about their waste too. Supply chain food loss is part of your Category 1 emissions.
Connect waste to other sustainability initiatives. Local sourcing, menu carbon labelling, plant-forward options all relate to food sustainability. Present them as a coherent program, not disconnected efforts.
Report transparently. Include methodology, assumptions, and limitations. Cherry-picked data without context damages credibility.
The ESG Opportunity
Investors, customers, and employees increasingly care about sustainability. Food waste is one of the most tangible sustainability stories a hospitality business can tell:
- Clear problem everyone understands
- Measurable progress you can demonstrate
- Financial benefit that proves commitment isn't just talk
It's much easier to explain "we reduced food waste by 40%, saving X tonnes of CO2" than abstract carbon accounting that no one can visualise.
Good ESG strategy requires actions that are good for the planet, good for the business, and explainable to stakeholders. Food waste reduction ticks all three boxes.
Get ESG Reporting Templates
For ready-to-use templates aligned with GRI, SASB, and Scope 3 requirements, download our free ESG Reporting Guide.
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