As a food & beverage company, the key part of Paulig’s emissions is related to the farming of the ingredients that are used in its products. Therefore, the updated climate targets have been set in line with the Forest, Land, and Agriculture (FLAG) methodology. FLAG emissions include emissions from land use change, land management (e.g. use of fuel and fertilizers at the farm) and biogenic removals such as forest restoration and soil carbon sequestration. Non-FLAG emissions mainly stem from the steps after the farm stage, e.g. use of energy for logistics and industrial production. More specifically, Paulig intends to reduce greenhouse gas emissions from its own operations (Scopes 1 and 2) by 65%, decrease FLAG-related emissions in its value chain (Scope 3) by 37%, and reduce non-FLAG value chain emissions by 51% compared to the 2018 baseline. These efforts will represent a 43% reduction across all scopes by 2030.
Transitioning further ahead to net-zero, Paulig aims to reduce emissions from its own operations and the non-FLAG part of its value chain by 90% by 2045, alongside a 72% cut in FLAG emissions. This will result in a 79% overall decrease in total emissions compared to 2018 levels.
“The distinction between FLAG and non-FLAG emissions enables us to set more precise, science-based reduction targets for different types of emissions. By focusing specifically on the most climate-intensive agricultural emissions at the farm level, we can ensure that our climate ambitions have a meaningful impact across our entire value chain,” says Kaisa Lipponen, SVP of Sustainability, HSE and Communications at Paulig.
Since its previous SBTi validation in 2020, Paulig’s business and operations have evolved significantly. The company has grown through acquisitions such as Liven, Panesar Foods, and Conimex. Each of these businesses has had its own sourcing practices, value chains, and environmental footprints that need to be addressed. “Our updated targets are slightly lower than before, but still ambitious: we are committed to the SBTi's targets to limit global temperature rise to 1.5°C. What has changed is that we now have a more accurate understanding of our emissions and the potential reduction measures based on the present structure of our business and operations” says Lipponen.
Growing sustainably while driving emission reductions across operations and supply chain
Since 2018, Paulig has already reduced greenhouse gas emissions from its own operations (Scopes 1 and 2) by 34%. This has been driven by actions such as increased use of renewable electricity, improved energy efficiency, the integration of biogas, and investments in heat recovery. The company has also cut value chain emissions (Scope 3) by 13%, resulting in a 14% overall reduction in total emissions. Only 2% of Paulig’s total carbon footprint originates from its own operations; the remaining 98% is primarily associated with the cultivation of crops such as wheat, corn and coffee, as well as packaging production. This highlights the necessity of reducing emissions throughout the entire value chain.
Despite increasing production volumes, emissions from our own operations and supply chain have decreased, showing that growth and sustainability can go hand in hand. “We have achieved significant reductions in emissions alongside business growth. We have strengthened our climate initiatives and adopting the FLAG methodology enables us to drive impactful reductions in our agricultural supply chains further. Our investments in renewable energy and energy efficiency, as well as our expanding and close collaboration with suppliers, demonstrate our firm commitment to meeting our ambitious 2030 and 2045 targets. SBTi validation provides a clear, science-based framework to guide our progress and ensure transparency,” says Salla Sulasuo, Paulig’s Director of Sustainability.
Looking to the future, Paulig is committed to further reducing operational emissions by expanding the use of renewable electricity, increasing the substitution of natural gas with biogas, and exploring initiatives to enhance energy efficiency and electrify baking and frying processes. Value chain reductions are driven primarily by the expansion of proven regenerative agricultural practices in our three largest raw materials: wheat, corn, and coffee. We are also doubling down on our actions with logistics and packaging partners focusing on increasing the use of renewable energy.
About Science Based Targets initiative
The Science Based Targets initiative is a collaboration between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. Science-based targets adopted by companies to reduce greenhouse gas (GHG) emissions are considered “science-based” if they are in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement, i.e. to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C.
About Paulig
Paulig is an international food and beverage company, growing a new, sustainable food culture – one that is good for both people and the planet. Paulig provides all tasty things: Tex Mex, Snacks, coffees, World Foods, and spices. The company's brands are Paulig, Santa Maria, Risenta, Poco Loco, Conimex and Zanuy. Paulig also has a successful Customer Brands business containing value brands, private labels and industrial products. In 2024, the company’s sales amounted to EUR 1.2 billion. Paulig was founded in 1876 and is 100% owned by the family of Paulig. The company has 2,400 passionate employees in 13 different countries working on our purpose For a life full of flavour.
