Sustainability in confectionery: Six ways to drive a greener future

Mondelēz’s State of Snacking Report 2024​​ found that more than two-thirds of snacking consumers purposefully choose brands that align with their values, with consumers increasingly prioritizing ethical brands.

With this shift, confectionery manufacturers and brands are innovating along sourcing, production, packaging, and waste management lines, viewing such changes as essential to meet both regulatory requirements and consumer expectations.

Key sustainability driversWe track six key sustainability targeted developments that are shaping the industry’s future:

1. Eliminating harmful chemicals​There is a growing emphasis on sustainable packaging, particularly concerning the removal of PFAS chemicals. PFAS, or per- and polyfluoroalkyl substances, encompass a wide range of synthetic chemicals. In Europe, these substances are regulated under the EU’s Persistent Organic Pollutants (POPs) Regulation. Some PFAS are currently under review, while others have been given harmonized classification and labelling under the Classification, Labelling and Packaging (CLP) Regulation.

In recent years, several US states, including New York, California, and Washington, have enacted laws regulating PFAS in food packaging. Aron Potash, a partner at US legal titan, Latham & Watkins, in Los Angeles and a member of the firm’s Environment, Land, and Resources practice, notes that “such regulation includes a ban on the use of PFAS in some jurisdictions.”

In May 2024, the US Environmental Protection Agency (EPA) designated certain PFAS as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

2. Managing Carbon Footprints​The confectionery industry, like many others, faces increasing pressure to minimize the climate impact of its production processes.

“The confectionery manufacturing process is often energy-intensive, prompting many manufacturers to actively seek ways to reduce the associated carbon emissions,” says Potash.

Leading manufacturers such as Mars, Hershey, and Mondelēz have made commitments to reduce their emissions, including setting “net zero” targets using renewable energy and other strategies.

In a 3-2 majority vote, the US Securities and Exchange Commission (SEC) recently adopted new rules requiring public companies to disclose comprehensive climate-related information in their business documents and submit these details to the SEC. Additionally, California’s Climate Corporate Data Accountability Act (SB253) mandates that companies operating in the state with annual revenues exceeding $1bn must report their greenhouse gas (GHG) emissions each year.

Manufacturers are also encouraging their suppliers to reduce carbon emissions. This includes adopting practices like growing cacao using regenerative agricultural methods, a strategy known as insetting​​. Companies often supplement these efforts by purchasing carbon offsets from other firms actively reducing their emissions.

“The development of carbon emission measurement methodologies and the requirement for businesses to report their emissions are becoming more stringent,” comments Rebecca Kaya, a regulatory specialist at Ashbury, a global food regulatory consultancy.

3. Combating Greenwashing​Green claims are increasingly scrutinized, highlighting the need for robust and universally accepted methodologies to assess the environmental impacts of food production, according to Kaya.

According to the UN, greenwashing promotes false solutions to the climate crisis that distract from and delay concrete and credible action. Photo credit: GettyImages/bodo23Labelling policies related to production methods are also evolving, though varying schemes can complicate this area, she notes. Additionally, efforts to minimize food waste, such as moving away from ‘Use by’ labels, are gaining traction.

A significant focus on deforestation is pushing manufacturers and brands to ensure transparency and traceability across their supply chains. The EU Deforestation Regulation (EUDR), which mandates that companies ensure their products are not associated with deforestation, is driving a substantial shift towards more sustainable sourcing practices.

Initiatives like the EUDR are vital for supporting sustainability policies. Ultimately, Kaya emphasizes that these policies and regulations will be crucial for addressing the environmental and societal challenges of the future.

4. Building Sustainable Food Systems​Sustainable food systems are becoming increasingly prominent, exemplified by the Republic of Ireland’s pledge to establish a sustainable food system by 2050.

The EU’s Farm to Fork Strategy is another key initiative in this area. This strategy aims to transform food systems to be fair, healthy, and environmentally friendly. It seeks to reduce the environmental and climate footprint of the food system, enhance the resilience of food supply chains, and ensure that all EU citizens have access to healthy and sustainable diets.

5. Enhancing Worker Safety​Worker safety, particularly in relation to reducing heat stress, has become a significant concern. Earlier this month, the US Occupational Safety and Health Administration (OSHA) proposed its first federal standard mandating that employers implement programs to evaluate and manage heat-related health hazards in the workplace.

Potash notes that for confectionery and other manufacturers, this proposed rule, if finalized, could necessitate changes in practices to comply with the new regulations. Several states have also recently enacted similar laws aimed at protecting workers from heat stress.

6. Driving innovation in packaging  ​There is an urgent need for innovation in packaging to ensure that all confectionery packaging becomes recyclable within proposed timelines.

Key priorities include developing degradable packaging materials and eliminating substances of concern from recycled plastics. “Packaging recovery is becoming increasingly critical,” says Kaya, “with individual producers striving to recapture waste packaging to maintain accurate data on waste recovery.”

In a unified effort to combat plastic pollution, 175 countries have committed to developing a legally binding agreement by 2024. This global stance underscores the necessity for enhanced traceability and transparency in raw materials and packaging data. As a result, advanced software solutions that seamlessly integrate with existing Food Business Operator (FBO) data systems are emerging.

“One of the major challenges facing the industry is the collection of product data to meet the growing demands for reporting and supply chain transparency,” Kaya explains.

She highlights that the complexity of global supply chains and the varying standards and maturity across different regions make data collection a significant hurdle.

Down the road ​By 2030, sustainable policies will increasingly address the needs of the planet and the emerging Gen Alpha consumer group.

Kaya predicts a shift towards holistic food system regulation, emphasizing environmental and social impacts over traditional food information. Brands will use QR codes to provide detailed data off-pack. Stricter oversight of environmental claims and stronger animal welfare rules for products of animal origin are expected. Additionally, there will be a focus on promoting domestic sustainable food production for food security.

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