The sustainable investor for a changing world

Search for

Filter by

Asset class





From seed to supper – Solutions to mitigate food waste

Agne Rackauskaite

In this article:

    Making the food sector more efficient

    At every stage of its journey from farm or fishery to family dinner, a large slice of the food produced for human consumption is thrown away. The quantity and impact of food loss and waste has increased as populations grow, climate change drives supply chain disruptions and more resource-intensive foods are consumed.

    The production of food and drinks is ultimately responsible for about one-third of global greenhouse gas (GHG) emissions.1 In turn, it is estimated that food loss and waste accounts for 8% to 10% of GHG emissions worldwide.2

    Wasteful practices are ripe for disruption, especially since they carry such a high environmental – and financial – cost. In the US alone, the value of wasted food in 2019 totalled USD 285 billion.3

    We believe companies that can successfully mitigate food loss or waste with their products and services can offer compelling investment opportunities and play a material role in the transition to a more sustainable economy.

    Food waste – especially in the home

    The UN estimates that as much as 39% of the world’s food is lost or wasted and goes unconsumed.4

    Wasteful practices can occur at all stages of the food supply chain – in production, processing, retailing and in storage and transport – as well as in the hands of consumers. Household and retail food waste varies widely between countries, driven by factors including consumer behaviour, the structure of grocery markets and waste collection practices.

    Authoritative data is relatively limited, but figures published by the UN show the scale of food waste in homes worldwide alongside some successes by the retail sector in eliminating waste.5

    Exhibit 1 below compares annual food waste at the retail and consumer stages, per capita, for nine economies where the UN has a high degree of confidence in both datasets. Taking the example of the UK, households wasted fully 77kg per person in 2020 – that is the average weight of a British adult. The UK retail sector jettisoned only 4kg of food per person. This shows that good practices can significantly mitigate waste.

    Policy tailwinds behind food loss mitigation

    Recognising the financial and environmental costs that high levels of waste incur for society, many governments have targets to address the issue. The US, Japan and Australia are among those explicitly aiming to halve food loss by 2030. This aligns with a global target specified by the UN to realise Sustainable Development Goal 12 – to ensure sustainable consumption and production patterns.6

    Various governments have launched initiatives, and in some cases enacted legislation, to combat food waste. UK companies can now be fined up to GBP 10 000 for repeatedly failing to address food waste, for instance.7

    There have already been successes: in Denmark, the Stop Food Waste Campaign reduced household food waste by 24% per capita between 2013 and 2017 by reducing portion sizes and discounts that encouraged overbuying, and by encouraging diners to take home restaurant leftovers.8

    Pockets of innovation

    We believe food waste can be addressed in each part of the value chain. Companies are already mitigating waste, directly and indirectly, through their products and solutions.

    Direct mitigation involves limiting losses at any stage of the food production journey. For a seed manufacturer, mitigation could involve enhancing yields by improving disease resistance and adaptability. Seed companies can also reduce post-harvest losses by improving food products’ shelf lives and resistance to cracking. Using state-of-the-art technology and analytics, companies can help their agricultural customers target crop safety and resolve growth issues.

    Efficiencies can be found in food preparation too. Makers of commercial kitchen equipment and technology can directly reduce waste by improving the efficiency of professional kitchen operations which, by their large commercial nature, should be much less wasteful with ingredients and portion sizing than households.

    Companies that provide food products to consumers typically mitigate food loss indirectly by working to keep it out of landfills and incinerators. Restaurants, supermarkets and food delivery companies inevitably use less than 100% of the food they order or prepare. Some make effective use of the leftovers and peels by donating edible food to local charities and composting the rest or converting it to animal feed.

    Some of the leading home delivery companies have designed out waste by shortening supply chains relative to traditional grocers. These companies deliver portion-based meal kits directly to customers’ doorsteps, thereby reducing overbuying by consumers, controlling portion size and avoiding food wasting away on shop shelves. Researchers concluded that customers in Germany cut their food waste by 21% (by weight) versus traditional supermarket shopping, with 72% fewer food scraps.9

    Accelerating the transition

    Resource efficiency is a central pillar of the transition to a more sustainable global economy. Given the food sector’s vast environmental footprint, addressing wasteful practices can make a major contribution to meeting emission reduction targets and reducing the ecological impacts of agriculture.

    Meanwhile, we believe companies that tackle food waste and are transparent in their disclosures will

    better navigate evolving norms and laws that demand higher standards across developed markets.

    Combined with the enormous financial incentives to reduce costly waste, we see long-term investment opportunities where companies offer effective solutions to the challenge. Leaders whose products or services mitigate food waste and advance efficiencies should be well positioned to benefit from, and contribute to, the acceleration of the sustainable transition.


    1 P.R. Shukla, J. Skeg et al, 2019. Climate change and land: An IPCC special report

    2 United Nations Environment Programme, 2021: UNEP Food Waste Index Report 2021

    3 ReFED, What is Food Waste

    4 Champions 12.3. SDG Target 12.3 on Food Loss and Waste: 2021 Progress Report

    5 UNSDG, UNEP & WRAP (Waste and Resources Action Programme), 2021: UN Food Waste Index Report

    6 United States 2030 Food Loss and Waste Reduction Goal | US EPA

    7 UK Government. Action to reduce food waste announced. 2018

    8 Stop Wasting Food Movement, EU Fusion

    9 HelloFresh_Sustainability_Report_2021_Non_Financial_Report.pdf (


    Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
    Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund's) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.

    Related posts

    Thematic investing – Innovation, disruption and sustainability
    Portfolio perspectives | Video - 9:40 MIN

    Thematic investing – Innovation, disruption and sustainability

    In this Thematic Investing video, our experts discuss the potential of companies enabling or adopting innovative technologies and business models...

    Research paper - Investment frameworks for a net zero pathway
    Portfolio perspectives | White paper - 8 Min

    Research paper - Investment frameworks for a net zero pathway

    Our paper, “Aligning investments with the Paris Agreement – Frameworks  for a net zero pathway”, explores various strategies for institutional...

    Viewpoint highlights

    Subscribe to receive this week’s articles straight to your inbox.

    Please enter a valid email
    Please check the boxes below to subscribe


    Receive daily updates