Taking a structured approach to dramatically reduce food loss and waste

Nearly 20% of food available to consumers worldwide is wasted, posing a significant challenge to sustainability. However, adopting a structured approach, as outlined in the upcoming ISO 20001 standard, can help businesses significantly reduce food loss and waste.

The UN Environment Programme (UNEP) estimates that one-fifth of all food is wasted globally - a sobering finding that underscores the urgent need for systemic change. According to the humanitarian charity organisation, Action Against Hunger, despite global food production being sufficient to feed the entire population, 733 million people still go hungry every day.

While businesses and organisations along the food supply chain may not be able to do much to mitigate hunger caused by war and natural disasters, they can make an impact on food loss and waste by adopting a structured approach to address the issue in their own operations and value chain. An approach of this nature is set out in the new ISO 20001 standard which is currently under development and anticipated to be released in 2027.

There is, however, a requirement already in use under FSSC 22000 Version 6. The FSSC 22000 guidance document on food loss and waste places the issue within the broader framework of UN Sustainable Development Goal (SDG) 12. It also cites multiple sources estimating that global food loss and waste exceeds USD 1 trillion annually, underscoring both the economic and sustainability challenges this topic presents. While the scale of the issue is evident, the industry requires more structured guidance to enable businesses to make a substantial impact in reducing food waste.

What is food loss and waste?

In order for businesses to effectively reduce or eliminate food loss and waste, it is firtsly crucial to distinguish between the two concepts.

Food loss occurs before food reaches the consumer and is caused by factors or inefficiencies during production, processing, storage, and distribution. Crucially, food loss can happen at any stage of the supply chain - whether it's crops left unharvested, produce lost during transport, or items deemed unsaleable due to visual imperfections like blemishes. Other factors include poor storage conditions, which may render food inedible, or low yields in processing, where production errors, scraps, or the undervaluation of reusable by-products contribute to unnecessary waste.

On the contrary, food waste refers to food that is perfectly suitable for human consumption but is deliberately discarded by retailers or consumers. This can be due to factors such as expiry dates, packaging or portion sizes, as well as inefficiencies in logistics, such as over-ordering by retailers or consumers choosing not to consume food they have purchased.

In DNV’s recent ViewPoint survey, our findings indicated that companies are actively working to reduce food waste through various strategies, including repurposing discarded food and produce for animal feed and pet food, donating to food banks, composting, and, where feasible, transforming surplus into other food products. From a sustainability standpoint, landfill disposal is the least desirable option. Encouragingly, the DNV survey reveals that only 12% of food waste ends up in landfill, highlighting a growing commitment to more sustainable waste management practices.

Structured approach to minimising food loss and waste

Most businesses involved in the food chain from farms to retailers and restaurants, have invested time and effort in implementing food safety management systems. In some cases, this may be to comply with local regulations, but in large part it is due to these systems being deemed a ticket-to-trade or the economic and reputational enhancement that comes from building trust with your consumers and patrons in relation to food safety performance.

As it stands, food loss and waste is not comprehensively addressed in the current food safety management system standard, although it is mentioned in the FSSC 22000. Food loss and waste are unlikely to become the focus of major regulation, though certain aspects - such as the setting of ‘use by’ dates to mitigate food safety risks - may be subject to regulatory oversight. While broader legislative measures remain limited, industry standards and sustainability initiatives continue to play a key role in addressing the issue.

The upcoming ISO 20001 standard employs the same High Level Structure (HLS) as most of its other standards and so will not be unfamiliar to companies already compliant with an ISO standard.

A food loss and waste management system can help companies by providing a structured framework to:

• Accurately identify and measure food loss and waste across the value chain
• Establish clear targets and objectives for reducing food loss and waste
• Adopt best practices and standardised procedures to minimise waste
• Continuously monitor progress and report on achievements, enhancing transparency and accountability
• Improve overall efficiency and reduce costs associated with food loss and waste
• Contribute to broader sustainability goals and improve ESG performance

Perhaps the most compelling insight from the ViewPoint surveys is the following: 32% of large companies and 35% of industry leaders believe that over 60% of food loss and waste could be avoided. An encouraging finding that signals that this growing awareness poses a significant opportunity for the industry to reduce waste on a substantial scale.

While the ISO 22001 standard currently provides guidance on identifying hotspots where food loss and waste occur, the upcoming ISO 20001 standard ais to build on this by introducing a proactive framework to help businesses effectively tackle food waste, benefiting both the organisation and the planet.