General Mills Faces Setback in Supply Chain Sustainability Push

Food giant misses emission targets as supplier challenges mount

General Mills reported a 14% reduction in greenhouse gas emissions against its 2020 baseline in fiscal 2025. That figure represents a significant slowdown from the 19% reduction the company achieved in fiscal 2024. The American food manufacturer now faces growing pressure to meet its commitment of cutting total emissions by 30% before 2030.

The company released its 2026 Global Responsibility Report on 15 April 2025. Operational emissions actually increased by 3% year on year. Meanwhile, suppliers continue to generate two-thirds of the company’s total carbon footprint. This creates a fundamental challenge for businesses trying to decarbonize without direct control over their value chains.

For UK businesses watching multinational supply chain sustainability efforts, the General Mills experience offers important lessons. Supply chain emissions remain the hardest category to address. Furthermore, ambitious targets require sustained progress across multiple reporting periods. A single year of slower improvement can jeopardize long-term commitments.

Climate commitments aligned with science-based frameworks

General Mills committed to net-zero emissions by 2050. The company also pledged to reduce total greenhouse gas emissions by 30% by 2030, measured from a 2020 baseline. These targets align with guidance from the Science Based Targets Initiative, which helps companies set emissions reduction goals consistent with climate science.

Additionally, the company committed to eliminating deforestation across palm oil, cocoa, and fiber packaging by 31 December 2025. This deadline is now less than eight months away. Consequently, the company faces mounting pressure to verify its supply chain traceability and ensure compliance across thousands of suppliers.

The emissions reduction target covers all three scopes of carbon accounting. Scope 1 includes direct emissions from company-owned facilities. Scope 2 covers purchased electricity and heat. Scope 3 encompasses all other indirect emissions, including raw materials, transportation, and product disposal. For food manufacturers, Scope 3 typically dominates the total carbon footprint because agricultural production generates substantial emissions.

Fiscal 2025 results show uneven sustainability progress

The report revealed mixed outcomes across different environmental metrics. Total emissions fell to 14% below the 2020 baseline. However, this represents a deceleration compared to the previous year’s 19% reduction. Operational emissions increased by 3% during the period, largely because of electricity consumption at a newly acquired production facility.

On the positive side, 95% of packaging was designed to be recyclable or reusable. The company also achieved zero-waste-to-landfill status across all manufacturing facilities. Moreover, 99.6% of fiber packaging volume now comes from recycled materials, certified virgin materials, or virgin materials from countries with low deforestation risk.

Nevertheless, water usage per ton of finished product increased during the year. The company did not provide detailed explanations for this trend. Water efficiency matters particularly in regions facing scarcity or where abstraction costs are rising. For UK businesses monitoring environmental performance, water intensity remains an important indicator alongside carbon metrics.

Animal welfare presented another area of concern. Only 4% of the company’s broiler chicken volume met Global Animal Partnership standards by the end of fiscal 2025. This low compliance rate suggests significant work remains to align sourcing practices with welfare commitments. Such gaps can create reputational risks and complicate relationships with retailers who demand higher animal welfare standards.

Deforestation risks persist in commodity sourcing

Approximately 22% of emissions from ingredients and packaging originated from materials linked to deforestation. These materials include palm oil, cocoa, and fiber packaging. Deforestation contributes to climate change by releasing stored carbon and destroying ecosystems that absorb greenhouse gases.

General Mills reports that 99.6% of fiber packaging volume now meets traceability standards. However, the remaining 0.4% represents traceability gaps the company is working to close. Even small percentages can involve substantial volumes when applied to global manufacturing operations. For example, 0.4% of General Mills’ fiber packaging still equates to hundreds of tons of material with uncertain supply chain origins.

The company committed to eliminate deforestation from primary commodities by the end of 2025. Meeting this deadline requires comprehensive supply chain mapping and supplier verification. Many food companies struggle with traceability beyond their immediate suppliers, particularly for commodities that pass through multiple intermediaries before reaching manufacturers.

UK businesses face similar challenges when managing deforestation risks. The Environment Act 2021 introduced requirements for large businesses to conduct due diligence on forest risk commodities. Therefore, companies importing soy, beef, cocoa, palm oil, and timber must demonstrate their supply chains do not contribute to illegal deforestation. Penalties for non-compliance can reach substantial amounts, making verification systems essential.

Supplier emissions dominate total carbon footprint

Suppliers generate two-thirds of General Mills’ greenhouse gas emissions. This concentration highlights the limits of internal operational improvements. A company can install renewable energy, improve efficiency, and optimize logistics. Yet these efforts address only one-third of the total footprint.

Reducing supplier emissions requires different approaches than operational improvements. Companies must engage suppliers on their own emissions reduction efforts. They may need to provide technical assistance or financial support. In some cases, switching to alternative suppliers with lower carbon intensity becomes necessary. However, changing suppliers can disrupt quality, increase costs, or create supply security risks.

For UK SMEs supplying larger businesses, these dynamics create both pressure and opportunity. More customers now request carbon data as part of procurement processes. Some buyers offer support for emissions measurement and reduction. Others simply shift purchasing to suppliers who can demonstrate lower carbon intensity. Consequently, suppliers who invest early in carbon management may gain competitive advantages in tender processes.

The carbon reporting and PPN 06/21 compliance framework requires central government suppliers to commit to net zero by 2050 and report emissions annually. Many private sector buyers now apply similar requirements. Therefore, understanding Scope 1, 2, and 3 emissions becomes increasingly important for businesses of all sizes.

Regenerative agriculture partnerships offer emission reduction pathway

Despite slower overall progress, General Mills advanced several notable sustainability initiatives. The company partnered with Ahold Delhaize USA to support regenerative farming practices across more than 70,000 acres of farmland. Regenerative agriculture focuses on soil health, biodiversity, and carbon sequestration rather than simply minimizing harm.

Additionally, General Mills is working with Euralis to transition 250 French farms to regenerative practices by 2027. These partnerships demonstrate how large food companies can influence agricultural practices across their supply base. However, scaling regenerative agriculture remains challenging because it requires changes to farming practices, may involve transition costs, and can take years to show measurable results.

The company also eliminated 63,000 pounds of plastic from frozen breakfast item case liners starting in December 2024. Plastic reduction addresses both carbon emissions and waste concerns. Furthermore, it responds to regulatory pressure as governments introduce taxes and restrictions on single-use plastics.

UK businesses can learn from these initiatives. Collaboration with suppliers on sustainability improvements often proves more effective than simply demanding compliance. Similarly, investing in supplier capability building can generate long-term benefits for both parties. Our sustainable procurement advisory services help businesses develop supplier engagement strategies that balance sustainability goals with commercial realities.

What the General Mills results reveal about corporate sustainability

Several key findings emerge from the fiscal 2025 performance:

• Total greenhouse gas emissions fell 14% against the 2020 baseline, down from 19% in fiscal 2024, putting the 2030 target of 30% reduction at risk without accelerated progress.
• Operational emissions increased 3% year on year, primarily because of electricity usage at an acquired production facility, demonstrating how business changes can reverse efficiency gains.
• Suppliers account for two-thirds of enterprise greenhouse gas emissions, making supplier engagement the critical factor in meeting climate commitments.
• Only 4% of broiler chicken volume met Global Animal Partnership welfare standards by the end of fiscal 2025, revealing significant implementation gaps between commitments and sourcing practices.
• Approximately 22% of ingredient and packaging emissions originated from deforestation-linked materials including palm oil, cocoa, and fiber packaging.
• The company achieved zero-waste-to-landfill status across all manufacturing facilities and designed 95% of packaging to be recyclable or reusable.
• Partnerships on regenerative agriculture now cover more than 70,000 acres in the United States and will expand to 250 farms in France by 2027.

Challenges facing UK businesses with supply chain emission targets

The General Mills experience illustrates difficulties that UK businesses increasingly face. Setting ambitious emissions targets proves easier than achieving them, particularly when most emissions sit outside direct operational control. Consequently, companies must develop sophisticated supplier engagement strategies rather than relying solely on internal improvements.

Measuring supply chain emissions creates its own challenges. Many suppliers lack emissions data or measurement systems. Consequently, buyers must either accept estimated data or invest in helping suppliers develop reporting capabilities. The latter approach takes time and resources but produces more accurate baselines for tracking progress.

Public sector suppliers face particularly stringent requirements. Procurement Policy Note 06/21 requires suppliers bidding for central government contracts above £5 million to publish a carbon reduction plan. This plan must cover the supplier’s UK operations and demonstrate commitment to net zero by 2050. Additionally, it must explain how the supplier will reduce emissions associated with the specific contract.

Private sector buyers increasingly adopt similar frameworks. Therefore, businesses without carbon reduction plans may find themselves excluded from tender opportunities. However, developing credible plans requires understanding emissions sources, setting realistic targets, and implementing actual reduction measures rather than simply documenting intentions.

The carbon reporting and ESG compliance requirements continue to expand. Large companies must report emissions under the Streamlined Energy and Carbon Reporting framework. Meanwhile, the proposed Sustainability Disclosure Requirements will extend reporting obligations to more businesses. Therefore, building carbon management capabilities now positions businesses for both current requirements and future expansion of regulations.

What businesses should consider about supply chain decarbonization

Companies evaluating their own emissions reduction strategies should draw several lessons from the General Mills results. First, consistent year-on-year progress requires sustained investment and attention. A single year of slower improvement can jeopardize longer-term targets, particularly when initial reductions often come from easier opportunities.

Second, acquisitions and business changes can disrupt emissions trajectories. The 3% increase in operational emissions at General Mills stemmed largely from an acquired facility. Therefore, businesses should integrate carbon assessment into merger and acquisition due diligence rather than treating emissions as an afterthought.

Third, supply chain emissions require different management approaches than operational emissions. Supplier engagement, collaborative improvement programs, and sometimes sourcing changes become necessary. These interventions demand more complex program management than installing solar panels or switching to renewable electricity contracts.

Fourth, multiple sustainability metrics often require simultaneous management. General Mills must address emissions, water usage, packaging, animal welfare, and deforestation. Focusing narrowly on carbon while neglecting other environmental and social factors creates reputational risks and may miss important stakeholder concerns.

Finally, transparency about challenges builds credibility more effectively than selective disclosure of positive results. General Mills reported both successes and setbacks. This balanced approach demonstrates serious engagement with sustainability challenges rather than treating reporting as a marketing exercise.

Businesses developing their own sustainability programs should establish realistic targets based on thorough emissions analysis. Subsequently, they should build supplier engagement into procurement processes and create internal accountability for progress. Our net zero advisory services help businesses develop pragmatic approaches that balance ambition with commercial realities.

Where to find additional information and guidance

The Procurement Policy Note 06/21 guidance from the Cabinet Office explains carbon reduction plan requirements for government suppliers. This resource includes templates and explanations of what constitutes an acceptable plan.

The Science Based Targets initiative provides frameworks for setting emissions reduction targets consistent with climate science. Their guidance helps businesses understand what levels of ambition align with limiting global temperature increases.

The Streamlined Energy and Carbon Reporting guidance from the Department for Energy Security and Net Zero explains current UK emissions reporting requirements for large businesses. This includes calculation methodologies and disclosure requirements.

For businesses concerned about deforestation risks, the Environment Act 2021 guidance on forest risk commodities outlines due diligence requirements and compliance timelines. These regulations apply to businesses above specified size thresholds that use or sell relevant commodities in the UK.

Finally, the General Mills Global Responsibility website provides access to the full 2026 report and previous years’ disclosures. Reviewing how large companies report sustainability performance can inform smaller businesses developing their own disclosure approaches.