Stories
Dec 18
Carbon Insetting: Driving innovation within HelloFresh’s supply chain
Food production is responsible for almost a quarter of worldwide carbon emissions. At HelloFresh, we are committed to the UN’s Sustainable Development Goals and to our responsibility as a leader in the food industry to continue to drive innovation for sustainable progress in the environment.
Compared to a meal made with supermarket ingredients, a HelloFresh meal has 25 percent lower carbon emissions over the whole life cycle and we are exploring innovations that have the potential to further reduce our environmental impact and waste. This assessment also showed that ingredient production is by far the biggest contributor to our carbon footprint. In a strategic shift that prioritizes reducing Greenhouse gas emissions directly within our own supply chain, we are investing in Carbon Insetting projects with our suppliers across our markets in Europe, Australia, and New Zealand. Following our mission to decrease carbon dioxide throughout our entire value chain, investing into our food suppliers will enable us to significantly lower emissions of our own food solutions.
Why Carbon Insetting?
Carbon insetting offers one of the most innovative approaches to decarbonization in food production to-date due to its holistic and integrated long-term impact on direct business and internal operations. It is a proactive approach that invests in making HelloFresh’s own products, practices and supply chains more sustainable. The goal of insetting is avoiding, reducing or sequestering upstream or downstream carbon emissions. "Continuously lowering our carbon footprint is an integral part of our mission to become the most sustainable food solution at scale" says Tilman Eichstädt, COO Upstream at HelloFresh. "It allows us to invest directly in decarbonisation projects across our own value chain, creating a more sustainable food system and fostering positive impacts for the communities we work with.”
Some of the biggest benefits of insetting include enhanced transparency when it comes to the impact of our efforts: Investing in our own value chain allows us to take a closer look at the positive environmental and social effects of our producers. It enables direct improvement and optimization. Funding projects for emission reduction inside the company's direct sphere of influence also leads to an enhanced focus on carbon reduction: The direct reduction of emissions within our supply chain and industry leads to a more measurable and verifiable positive impact. Another benefit is the creation of longterm partnerships with stakeholders: By collaborating with suppliers on insetting projects, HelloFresh builds stronger, more resilient relationships with key partners in the food system.
Contributing to a more Sustainable Future
At HelloFresh, we are committed to actively exploring further opportunities to reduce emissions throughout our supply chain, all while delivering the freshest, most convenient meal solutions to our customers: After already making great improvements by expanding electrified last mile options and utilizing renewable energy, HelloFresh will further focus on a number of new initiatives, potentially reducing up to two thousand tons of CO2e in total. Initiatives will range from investing in nature-based solutions such as less carbon-intensive agricultural practices in beef, poultry and dairy, over regenerative agriculture in fresh produce to renewable energy as well as packaging with lower environmental footprint. For the first year, we will focus on projects in our international markets across Europe, Australia and New Zealand.
In order to determine which projects are most appropriate and beneficial for the local context, our sustainability managers had to identify the key areas within our supply chain where carbon insetting can have the most impact. This involves understanding specific challenges and closely engaging with stakeholders. Before implementation, we worked with local partners, suppliers and specialists on a project plan. This ensures that the initiatives deliver the intended benefits in the long run, which can have different timeframes. We will then closely monitor the benefits with our suppliers and partners and evaluate scaling them in the following years.
Insetting is best implemented after a company has taken steps to understand its carbon footprint and defined its decarbonization strategy across departments. HelloFresh has been optimizing energy efficiency and transitioning to renewable energy sources in the last years, and now, it is also engaging with upstream suppliers for ingredient emissions reductions.
This approach enables companies to extend their sustainability efforts beyond their core operations, making a broader impact on the environment and setting a positive example within their industry.
“At HelloFresh, we are committed to providing a more sustainable way to buy, prepare and enjoy food. We want to follow a highly holistic approach to decarbonize our supply chain: We have made great progress in reducing our plastic waste and in increasing our renewable energy for food production already, and we are now tackling our biggest challenge in the long run, which is lowering the carbon footprint of our ingredients” says Tilman Eichstädt.