Role of environmental labelling as a lever for net zero

Food system emissions make up around 30% of total emissions from the UK. Having developed a Net Zero Transition Plan for the UK Food System, we know a system-wide approach to net zero is required and deep cuts will be needed to meet climate objectives. A core part of the plan is demand-side action, with population diet change highlighted as a key opportunity for emission reductions.

To drive action towards more sustainable diets, many interventions need to be coordinated, in the short and long term, across industry and government. Environmental labelling of food and drink products is one of many levers for population diet change towards net zero. The extent of influence product labelling can have is not yet verified, but it is a key touchpoint at the point of purchase in the context of the consumer journey.

Sign up to our newsletter and read our latest health and sustainability content for more from us on wider systems change and actions needed for net zero.

Towards a consistent and robust approach for environmental labelling

Following a proliferation of labelling schemes in the UK and globally, a consistent approach to environmental labelling across the whole UK food industry is critical to cut through the confusion of multiple schemes. That’s why we have been working with stakeholders across the food industry to develop a single consistent and robust approach to environmental labelling that aims to inform consumers about the environmental impact of food.

Environmental labelling at scale is yet to be tested in the UK market, and its overall effectiveness and impact on consumer behaviour will need to be assessed over the long term. So, our vision and planned work includes short-term actions to deliver a consistent approach alongside longer-term goals for population diet change in context of the wider system.

For example, we are working closely with Defra’s Food Data Transparency Partnership Eco-Working Group, the BRC Mondra Coalition and the Life Eco Food Choice project, and referring to other related work such as CLEAR to accelerate progress and ensure alignment of our work. And as we assess the effectiveness of environmental labelling as a lever for population diet change, we are actively considering broader system consequences and opportunities including for health outcomes and supply chain impacts.

Milestones and next steps for IGD

Since 2021, we have made significant progress towards developing a prototype Environmental Labelling Toolkit. The prototype will enable businesses to implement environmental labelling consistently for the purpose of piloting the approach. The full prototype Toolkit will be released in H2 2025 and so far, we have published:

• Best practice guidelines for the display and positioning of environmental labels.

• Best practice guidelines on how to communicate clearly to consumers about environmental labelling.

These reports provide technical guidance and have been co-created by independent technical consultants and experts from the food and consumer goods industry, including label design and packaging specialists. They are based on five phases of extensive consumer research and rigorous evidence built over a three-year period.

Our priorities ahead include:

• delivering best practice guidelines on generating environmental impact scores (expected completion in H2 2025)

• releasing the prototype Environmental Labelling Toolkit (H2 2025)

• piloting the prototype Environmental Labelling Toolkit in a practical, real-world setting to assess, for example, the impact on consumer behaviour, the operational feasibility of labelling, and any unintended outcomes (2026)

• supporting existing initiatives like Defra’s development of the mandatory methodology, EU LIFE and efforts to improve data by commercial providers (ongoing)

A note on environmental methodologies and data

To avoid duplication, we are looking to align our best-practice guidance for generating environmental impact scores with others who have made significant progress in determining a consistent product footprinting methodology for the food industry. For example, we will look to align with commercial providers whose methodologies are widely adopted by industry, and when available, we will align with government’s mandatory methodology.

To complement these pre-existing methodologies, we are developing an approach to convert their product footprints into A-E scores for a consumer-facing label. This includes:

• combining multiple environmental impact categories into a single A-E result

• developing an effective scoring system, to determine if a product is ‘high’ or ‘low’ impact

• establishing an approach to present the Red-Amber-Green (RAG) bandings and Functional units (e.g. per 100g or per portion)

The approach to RAG bandings will be a key deliverable for 2025, where so far we have worked with WRAP on a comprehensive literature review, data analysis, and engagement with stakeholders, and in 2025 we plan to test the approach with extensive real-world data.

The final approach will be guided by the following success criteria, and once complete, the findings will inform the prototype Environmental Labelling Toolkit to be tested.

• Relevance of the UK food market

• Minimising the risk of mislabelling

• Clear product differentiation across and within categories

• Simplicity for consumers and ease of understanding

• Compliance with latest green claims guidance

• The approach to be inclusive, scalable and pragmatic

• Immediate operational feasibility

• Be in line with planetary boundaries and consumer diet change needed to reach net zero

So what next, for the food industry?

So, there is a way to go to achieve climate targets and to prove environmental labelling as an effective lever to contribute to population diet change and the emission reductions needed. However, the prototype Environmental Labelling Toolkit, will provide a springboard for real world testing and for the first time, the opportunity to evidence the effectiveness of industry-wide and consistent environmental labelling in the UK.

To keep up to date, please sign up to our newsletter (includes sustainability and health insights).

Find all our latest content on sustainability (including previous work on labelling).

Find our specific research on diet shifts.

*Key date to note will be in the summer of 2025 with content around environmental labelling and Net Zero Transition Plan scheduled to be released.