Expanding to a Holistic Sustainability Framework

Carbon has been the go-to metric for measuring a company’s environmental footprint for years. However, this narrow focus can lead to unintended consequences, such as overlooking the social and ecological impacts of production. The concept of “carbon tunnel vision” highlights this risk, urging businesses to consider a wider range of metrics in their sustainability strategies. Furthermore, with regulations like the EU’s CSRD, EUDR, and CSDDD coming into play, companies need to start future-proofing their supply chains to comply with laws around deforestation, biodiversity, and water usage.

The future of sustainability requires a shift toward more comprehensive footprinting. As João explains, “When you optimize only for carbon, you can end up exacerbating other societal issues.” This holistic approach means accounting for human rights, biodiversity, labor practices, and the overall health of ecosystems alongside carbon.

Paulig, a leader in sustainable food production, exemplifies this strategy. Karin Jonsson, who leads sustainability efforts on the product level at Paulig, stresses the importance of moving beyond carbon to encompass multiple metrics that reflect the true impact of their products.

“Holistic footprinting is not only about going beyond carbon, but also beyond single products or product groups,” Karin explains. One part of Paulig’s ambitious sustainability program focuses on the full product portfolio, aiming to ensure that 70% of their net sales by 2030 come from products that enable both human and planetary health.

Karin underscores that holistic sustainability is not just about measuring emissions. It involves embedding sustainability into the very fabric of a company’s operations, with decisions grounded in science-based targets and substantial and relevant impacts across the entire value chain.

Tackling Fragmentation in Product Footprinting Efforts

For many companies, a major barrier to comprehensive sustainability reporting is the fragmentation of tools used to measure different impacts. Businesses often rely on separate systems for corporate and product footprinting, leading to inconsistencies in data and a lack of cohesion in their sustainability strategies.

An integrated approach to sustainability metrics, like the one Paulig adopted, ensures that companies can align their sustainability goals across multiple departments, from procurement to research and development. HowGood’s Latis platform, which Paulig uses, simplifies the process by creating a single source of truth for sustainability data and enabling the company to assess multiple metrics in one place.

“For us, HowGood’s platform has been a game-changer,” Karin notes. “It allows us to focus not just on carbon but on multiple metrics that matter to us, from human rights to biodiversity.” 

Redefining ROI in Sustainability

One of the key challenges in sustainability is measuring return on investment (ROI). Karin and Brian share that long-term viability needs to be a critical criteria in this assessment. 

Traditionally, companies have justified sustainability initiatives by their potential for financial returns, but this approach is increasingly being questioned. Karin shares that the pursuit of immediate ROI in sustainability can be misleading. “If we keep looking for a direct monetary return on every sustainability action, we’re going to miss the point,” she says. “Not all sustainability initiatives will lead to a quick profit, but we need to do them anyway to future-proof our business and benefit future generations.”

Paulig has embedded sustainability into its core business strategy, launching a climate fund to finance regenerative agriculture projects and other transformative actions. While these efforts may not yield immediate financial returns, they are essential for ensuring long-term business viability. “What’s the cost of inaction?” Karin asks, pointing out that failure to address sustainability now will come at a steep cost down the road.

Brian Nash, Vice President of Corporate Sustainability at Ingredion, echoes this sentiment while also realizing direct returns from automation. He highlights the cost-effectiveness of platforms like HowGood for scaling sustainability efforts. 

While traditional life cycle assessments can be prohibitively expensive – LCAs can cost $20,000 apiece, for only one product – automation allows companies to gather comprehensive data more affordably and at a larger scale.

“HowGood allows us to scale up our sustainability efforts at a fraction of the cost, and it’s much faster,” Brian says. “It’s not just about reducing carbon, it’s about making informed decisions that take into account water usage, labor practices, and more.”

Navigating Consumer and Regulatory Demands

The complexities of sustainability aren’t limited to internal metrics. External pressures from consumers and regulators are also driving change. Consumers are becoming more sophisticated in their expectations, demanding that products be not only low-carbon but also ethically sourced and socially responsible.

For example, Brian recounts a conversation with a beverage company seeking the lowest carbon footprint Stevia. Initially, the company was excited about sourcing Stevia from the region with the highest yields, but when they discovered labor risk concerns in the region, they quickly changed course. “The customer quickly realized that it’s not just about carbon,” Brian says. “They also needed to consider labor conditions and soil health.” Ingredion was able to present a 360-degree view at the sustainability impacts across metrics to allow for informed decision-making from their customers.

This shift reflects the broader trend of businesses needing to balance multiple sustainability factors. With platforms like HowGood, companies can manage the trade-offs that come with balancing carbon reduction, water conservation, ethical sourcing, and other sustainability goals. “HowGood helps us manage the trade-offs that come with sustainability,” Karin notes, highlighting the importance of having comprehensive data to guide these decisions.

The Path to Holistic Sustainability

The future of sustainability requires a holistic approach that goes beyond carbon footprinting to include a broader range of environmental and social metrics. By automating these processes, it’s possible to not only reduce costs but to also ensure they’re meeting the growing demands of consumers, investors, and regulators.

Tools like HowGood’s Latis platform are leading the way, helping companies like Paulig and Ingredion integrate sustainability into their operations in meaningful ways. As João puts it, “Sustainability is a team sport, and the more we can collaborate and share data, the better equipped we’ll be to tackle the complex challenges of our time.”

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