The topline numbers for food loss and waste are well known: Nearly 40% of food produced globally is never eaten, accounting for 10% of all global greenhouse gas (GHG) emissions and around a quarter of all fresh water use. But there are hidden costs to FLW not accounted for under current models.

Work by The Consumer Goods Forum’s (CGF) Food Waste Coalition of Action and AlixPartners shows that retailers and consumer packaged goods (CPG) manufacturers dramatically underestimate the impact of FLW to their bottom lines—up to 6% of EBITDA for retailers and 24% of EBITDA for manufacturers.

These costs are set to grow. Companies will face a steep rise in costs as carbon abatement fees spike over the next 20 years. The broad under-measurement of cost means businesses are not fully resourcing food-waste reduction efforts and may be overlooking a critical element of a successful net zero carbon strategy. The FLW Capability Assessment developed with the Coalition aims to change this.