North American coffee giants failing to cut methane – audit

No plans, no targets, no reductions: world’s biggest coffee houses largely ignoring their major source of climate emissions

Cafes should make vegan option cheaper than milk – NGO

North American coffee giants are failing to cut climate-critical methane emissions tied to the vast amounts of dairy products they serve, a detailed assessment has found.

Methane is 80 times more powerful than carbon dioxide, in the short term. Cutting it is seen as a quick win to help keep global heating below 1.5°C. Livestock is the largest human-driven source of methane emissions, with around 8% down to dairy alone.

The European non-profit Changing Markets Foundation scored Costa, Dunkin’, McCafé, Starbucks and Tim Hortons, the five largest coffee house chains globally, on their methane reduction goals, action plans, accounting and reporting. Four are North American while Costa, mostly known in Europe, is owned by Coca-Cola.

The results are stark. None of the firms has announced methane cuts. None has a methane, livestock or dairy reduction target, nor an associated action plan. They all came in the bottom nine in the ranking of 20 firms, which also included dairy producers and consumer goods companies. Dunkin’ came in last, scoring zero points.

Most global coffee chains are opaque about their dairy consumption, despite this being a major part of their climate impact, as acknowledged by Starbucks. Rough estimates suggest Starbucks US uses approximately 750 million liters of dairy milk annually, making dairy the largest single source of carbon emissions across its operations and supply chain.

Vast use of dairy and their popularity among consumers make coffee brands critical players in “the methane conversation” with a leading role to play in switching consumer behavior, Changing Markets said. It praised Dunkin’ and Starbucks for recent pledges to stop charging extra for plant-based milks and pointed to research showing that most people have tried plant-based milk in coffee shops. But brands should do much more to support an ongoing public shift towards plant milks [1], such as by making non-dairy milk the cheaper option, the group said.

Changing Markets CEO, Nusa Urbancic, said: “Cutting methane is our emergency brake on global heating. This is something coffee companies should appreciate, given that climate change is ‘coming for our lattes’ by making beans harder to grow. They can and should do more to promote plant-based milks, starting by making them cheaper than dairy. We hope our report will help them wake up and smell their own coffee.”

The ranking

Only two firms (Nestlé and Danone) claim to have actually reduced methane emissions. Most lack clear methane-related targets, credible action plans or even basic transparency on emissions. None of the firms, which dominate European and North American markets and together rake in over $420 billion annually, are pledging to reduce dairy product sales. Nearly all (18 of 20 firms) scored less than half the available points. Only six (Arla, Danone, DMK, General Mills, Bel and Saputo) track their methane emissions directly, while only four disclose them.

Danone came top of the table, but with just 59 out of 100 points. It stands out as the only firm with a methane-specific target and a plan to hit it. General Mills came next with 53.5 points, having published a climate target and plans but not one specific to methane. Nestlé and Arla Foods tied for third on 49 points. Nestlé was the only firm to explicitly support reduced public consumption of dairy, though shied away from cuts to dairy product sales.

Cutting methane could rapidly slow global heating, giving humanity more time to cut other greenhouse gases. At COP26 in Glasgow, 150 governments signed a Global Methane Pledge to slash emissions by 2030. Agriculture was a major focus, but relies on voluntary steps and incentives rather than enforceable targets. The pledge may miss its target unless the dairy sector gets serious about cutting methane, Changing Markets said.

At the 2023 UN Climate Conference, COP28, in Dubai, industry launched a Dairy Methane Action Alliance (DMAA). However, the Changing Markets audit found that the DMAA is making a marginal difference at best. The report found that members, of which Starbucks is the only coffee company, scored a little higher than non-members in all main areas of the survey. The DMAA focuses on transparency alone and, crucially, does not require members to set targets.

Industry lobbying has been a major barrier to progress. In both the US and EU, powerful meat and dairy interests have successfully blocked or weakened efforts to regulate agricultural methane. In the US, the Inflation Reduction Act directed $20 billion to cut methane in agriculture, but with weak enforcement rules. In the EU, farming interests have kept agricultural methane off the lawbooks. A 90% emissions reduction target for 2040 is already under attack with a carve out for farmers being considered by the unashamedly pro-business executive.

Industry favors technical fixes, such as feed additives and biogas, over binding regulation or systemic change. Big meat and dairy firms invest more in public relations than in actual climate solutions, Changing Markets has shown, resulting in ‘agricultural exceptionalism’, where the sector largely sets its own agenda and avoids the kinds of binding environmental obligations now common in energy and transport.

Nusa Urbancic added: “Our audit shows that fine words and voluntary actions by big dairy producers and users are little more than hot air. Governments must grab the bull by the horns and set science-based methane cuts for the agricultural sector.”

Companies must cut methane by at least 30% by 2030, Changing Markets said, as well as track the gas properly, report milk volumes. A simple step up for coffee houses would be to ensure plant milk is the same price or cheaper than dairy, it said. Consumers should favour more sustainable animal products and reduce their consumption, while pushing companies to improve.

Ends

Notes

The Changing Markets Foundation is a non-profit dedicated to exposing irresponsible corporate practices and driving sustainable market change. Their campaigns focus on holding companies accountable for environmental impacts and accelerating the transition to sustainable business models.

Running Latte: Slow Progress on Methane in the Dairy and Coffee Industry is available here: www.changingmarkets.org/campaigns/growing-the-good

[1] Around 15% of total milk dollar sales in 2023 were plant-based, while 2023 National Consumer Panel reported that 44% of US households now purchase plant-based milk. Nearly three quarters of British people surveyed had tried plant-based milk, but only a small fraction identify as vegan. One in four coffees sold by major chains in the UK is made with plant-based milk. The plant-based milk market is expected to grow at nearly three times the rate of dairy milk.