FLAG emissions along the supply chain

Customer: Lieken GmbH

Category: Food and Beverage Processing 

Date: December 2024

Customer Website

Lieken GmbH is a leading player in the German baked goods industry, with roots dating back to the 19th century. With well-known brands such as “Lieken Urkorn” and “Golden Toast”, the company offers a wide range of fresh baked goods that are popular in both the retail and food service sectors. Lieken pays particular attention to sustainability – from resource-saving production to cooperation with regional suppliers in order to minimize transport routes.

As part of its sustainability strategy, Lieken has been working with the DFGE – Institute for Energy, Ecology and Economy – for two years to calculate its corporate carbon footprint (CCF). For 2023, the focus for the first time was on FLAG (Forest, Land, and Agriculture) emissions resulting from the use of agricultural products. The SBTi provides FLAG guidelines that companies can use to set relevant targets and develop customized climate strategies. These FLAG emissions play a central role in the carbon footprint of companies, as the SBT (science-based targets) may have to be changed.

Andreas Hohlt

Head of QM & KVQP / Sustainability manager – Lieken Brot- und Backwaren GmbH

“The collaboration with DFGE has enabled us not only to precisely record our entire corporate carbon footprint, but also to transparently calculate the specific share of FLAG emissions. Especially as a company that relies heavily on agricultural products, it is crucial for us to understand the impact on the climate in detail and to be able to derive targeted measures. Thanks to DFGE’s expertise, we are able to pursue our sustainability goals in an even more focused and data-based manner.”

Challenges

Materiality of FLAG emissions for Lieken GmbH

As part of the second Corporate Carbon Footprint (CCF) survey project, Lieken GmbH was faced with a new challenge: the consideration of so-called FLAG (Forest, Land, and Agriculture) emissions. These emissions are primarily caused by the use of agricultural raw materials required for the production of baked goods. As one of the leading companies in the baked goods industry, Lieken relies heavily on agricultural products, so FLAG emissions have a significant impact on the company’s overall emissions balance.

Accurately recording these emissions was a challenging task. It was necessary to collect activity data from various sources that had not previously been in focus, such as information on land use, forestry and specific agricultural practices.

It was particularly challenging to collect data on land use changes (LUC) that can arise from the cultivation of raw materials, such as the conversion of forest areas to agricultural land. This data must not only be comprehensive, but also precise and country-specific, as the emission values depend heavily on the geographical conditions of the respective regions of origin.

The aim was to make the complex sources of emissions in Lieken’s supply chain transparent and to create a solid basis for measures to reduce emissions. This required close cooperation between Lieken and DFGE to ensure that all the necessary information was collected and processed correctly.

Solution

Detailed data collection as a starting point for complex calculations 

To overcome these challenges, Lieken GmbH relied on the experience and expertise of DFGE, which provided the company with intensive support in data collection. Together, a structured approach was developed to collect all the relevant data required to calculate the FLAG emissions. It was particularly important to collect detailed information on the raw materials purchased, especially their countries of origin and local agricultural practices. Geographical origin plays a crucial role in quantifying emissions, as factors such as land use changes or the use of fertilizers vary from country to country.

DFGE provided clear guidance on data collection and helped Lieken to identify and close data gaps. This included not only standard information on raw material purchasing, but also additional data on specific FLAG-related aspects that were necessary for a complete calculation.

One focus here was on determining the land use change (LUC) emissions that arise when forest or fallow land is converted into agricultural land. These LUC emissions were calculated with the help of detailed analyses of the raw material origin in order to accurately record the climate-relevant effects on the environment.

Thanks to the comprehensive support of DFGE, Lieken was able to create a solid database that made it possible to integrate the FLAG emissions into the overall corporate carbon footprint. This data-based approach forms the basis for future strategic decisions in procurement and production.

Result

Comprehensive findings on FLAG emissions along the Lieken GmbH supply chain 

The first-time inclusion of SBTi FLAG emissions in Lieken’s corporate carbon footprint provided valuable insights into the extent to which agricultural processes in the supply chain contribute to the company’s environmental footprint. The detailed data on the land use changes caused by the cultivation of raw materials was particularly revealing. These emissions account for a significant proportion of the company’s total greenhouse gas emissions, as the change from forest to agricultural land causes particularly high CO₂ emissions. Thanks to the detailed survey, Lieken has now been able to precisely track these emissions and integrate them into its sustainability strategy.

The insights gained help Lieken to make its supply chain even more sustainable. The company is now in a position to identify emission-intensive raw materials and suppliers and develop targeted measures to reduce emissions. This includes, for example, selecting raw materials from regions where there is less land use change or giving preference to sustainable and certified products. These measures not only contribute to reducing the corporate carbon footprint, but also strengthen Lieken’s position in an increasingly sustainability-oriented market.

In addition, the results of the FLAG emissions calculation are a valuable basis for communication with stakeholders. They enable a transparent presentation of Lieken’s efforts to minimize the environmental impact of its production processes. With this precise data, the company can clearly demonstrate both internally and externally what steps it is taking to achieve its sustainability goals.

Andreas Hohlt

Head of QM & KVQP / Sustainability manager – Lieken Brot- und Backwaren GmbH

“The collaboration with DFGE was a decisive step for us to record our corporate carbon footprint even more precisely and comprehensively. In particular, the first-time calculation of SBTi FLAG emissions has given us valuable insights into the impact of our agricultural and forestry supply chains. Thanks to DFGE’s support, we have not only been able to break down our CO₂ emissions in detail, but can now also develop targeted measures to achieve our environmental goals even more effectively.”
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