A myopic focus on risk mitigation will not win the war — the entire sector needs to go on the offensive so that true impact is made across the entire value system. Only then can achieving net zero carbon emissions by the sector become a reality.

The SPAR Group is unwavering in its commitment to reducing absolute carbon emissions from its operations, but the enormity of the challenge shifts the focus from the SPAR Group to strengthening the collective commitment across the industry, society, economy and value system. 

Everyone has a crucial role to play. SPAR is not under the illusion that it can achieve this alone. Even if SPAR meets its targets, real change will only occur if every person and organisation — and all of society — do their part.

There are far too many headlines about companies managing scope one and two emissions in their control and far too little about the need for broader collaboration to drive true sustainability in those areas outside their control.

The solution lies beyond dealing with in-house emissions to the real challenge of scope three indirect greenhouse gas emissions, which occur in the upstream and downstream activities of an organisation from sources that it does not control or own.  

To put this into perspective, a new McKinsey analysis of 40 of the world's largest grocers and their value chains reveals that, on average, scope one and two emissions account for only about 7% of the total. Meanwhile, approximately 93% of emissions lie outside grocers' direct control.

Currently, the food system accounts for more than 30% of global GHG emissions, and while grocers' direct contribution to these emissions is relatively low, the grocery sector has a unique opportunity to become the driving force for the decarbonisation of the entire food system.

Due to grocers' central position in the value chain, they can and must do everything possible to decarbonise the food system — from farmers and suppliers to intermediaries and consumers.

This will not only help in meeting decarbonisation targets but will also support suppliers in their efforts to decarbonise food production and enable consumers to make sustainable choices.

McKinsey's research highlights that one of the biggest challenges is the key role dairy and meat play in the Western diet. These products account for almost half of all product-related scope three emissions. From a value-chain perspective, two-thirds of all scope three emissions occur at the farming and food-processing stages, while one-third occur during consumption, primarily driven by refrigeration, cooking and waste disposal.

The SPAR Group is tackling these issues on multiple fronts. Its solutions include:

  • providing branded and private-label offerings
  • collaborating directly with farmers to support their efforts to reduce emissions in the supply chain
  • supporting the decarbonisation of supplier operations (including packaging and waste)
  • taking advantage of technology, and
  • raising sustainability awareness so consumers can make healthier, better choices.

The SPAR Group remains active in moves towards developing an industry-wide stakeholder initiative by the Consumer Goods Council of South Africa (CGCSA) to reduce carbon emissions and drive a circular economy.

The CGCSA has developed a Climate Change and Sustainability Roadmap, the purpose of which is a collective call to action for CGCSA members to respond to current and future climate change, environmental, social and governance (ESG) challenges facing South Africa's consumer goods sector.  

The SPAR Group has developed its own strategic climate change roadmap that identifies areas where it should: 

  • focus on reducing our greenhouse gas emissions 
  • respond to changing markets
  • invest in climate-resilient operations
  • facilitate climate-resilient supply chains
  • put the broader challenge into perspective, and
  • support the drive for more climate-resilient retailers in general. 

SPAR's strategy incorporates considerations that need to be taken into account given the need for a just transition to a better society and business landscape.

The SPAR Group's Rural Hub programme is an example of an attempt to develop a sustainable food value system. The Rural Hub supports marginal farmers who do not have the scale to supply commercial markets. By doing so, SPAR creates sustainable and inclusive agricultural networks in South Africa — a sector with low representation of young and black farmers.

While SPAR remains the Rural Hub farmers' primary customer, some of its produce is sold to aggregators, who then on-sell to other food retailers, and many grow private crops for their communities. It's a system that works, but the sustainability of the Rural Hub lies in continual system improvement.

Here is how SPAR is tackling this, based on the risks and challenges for the sector that it has highlighted:

  1. It is not a CSI project.
  2. It has a purpose — to create sustainable and inclusive agricultural systems in southern Africa.
  3. The SPAR Group guarantees a price to the farmers.
  4. The SPAR Group does not only sell the product to SPAR stores — it sells to the market and to the opposition.
  5. Grant funding is phased out of the business model.

So, while people keep hearing about carbon net zero by 2050, what are the chances of society really meeting the needed commitments?

These commitments include:

  • conversion to renewable energy sources
  • biodiversity protection
  • water protection
  • reduction in food waste
  • plastic removal
  • recycling
  • a circular economy, and
  • other environmental commitments. 

Once again, a single business that believes it will be able to meet the targets it sets while operating independently is living in a dream world. This is why SPAR proactively works with stakeholders to raise awareness about the risks and need for wider solutions, including how policy can be improved to support the needed changes.

No brand, no matter how powerful it may seem, can make true impact alone. Pursuing science-based targets in South African business without considering the societal importance of a just transition would lead to another failure. Society would emerge from one crisis only to leave more people behind.

It is time for businesses to roll up their collective sleeves and work harder together to get ahead of the climate change curve. If businesses don't, future generations will be left picking up the pieces — if indeed there is anything left to salvage.

For more information, visit www.spar.co.za. You can also follow the SPAR Group on Facebook.

*Image courtesy of contributor