General Mills Sustainability Progress Slows as Supply Chain Emissions Challenge 2030 Climate Goal

General Mills has reported a setback in its supply chain sustainability progress, with total value chain greenhouse gas emissions falling 14% in fiscal 2025 compared with its 2020 baseline. That was a weaker result than the 19% reduction reported in fiscal 2024, according to ESG Dive’s review of the company’s latest responsibility reporting.

The result matters because General Mills has committed to reducing its full value chain emissions by 30% by 2030 and reaching net-zero emissions by 2050. For a large food manufacturer, most climate impacts sit outside direct operations. General Mills says suppliers account for roughly two-thirds of its enterprise greenhouse gas emissions, making supplier engagement central to its decarbonization strategy.

The company’s 2026 Global Responsibility Report, released on April 15, covers fiscal 2025, which ran from May 27, 2024, to May 25, 2025. General Mills said it reduced total value chain emissions by 14% and Scope 1 and 2 emissions by 55% against its 2020 baseline.

Operational Emissions Remain Easier to Control than Supply Chain Emissions

The divergence between operational and value chain performance highlights a common challenge for consumer packaged goods companies. Direct emissions from owned facilities and purchased energy can often be addressed through energy efficiency, renewable electricity procurement and facility upgrades. Supply chain emissions, by contrast, depend on farms, packaging producers, logistics providers and commodity markets.

General Mills said its operational greenhouse gas emissions increased 3% year over year in fiscal 2025, partly because of additional electricity use at an acquired production facility. Even so, the company’s longer-term Scope 1 and 2 reduction remains significantly stronger than its value chain result.

For companies pursuing net-zero targets, the General Mills figures illustrate why Scope 3 emissions are increasingly becoming the main test of climate credibility. Food companies depend on agricultural inputs such as dairy, grains, cocoa, palm oil and packaging materials, all of which can carry emissions from land use change, fertilizer, livestock, processing and transport.

Waste and Packaging Show Stronger Progress

General Mills reported clearer progress in waste management. By the end of fiscal 2025, all 37 of its production facilities had reached zero-waste-to-landfill status, meaning waste was recycled, reused or recovered for energy rather than sent to landfill or incinerated without energy recovery.

The company recycled 90% of solid waste globally in fiscal 2025, up from 88% a year earlier. A further 8% was processed for energy recovery, while 2% was disposed of. ESG Dive reported that some facilities disposed of waste early in the fiscal year, but later put solutions in place and sustained zero-waste-to-landfill status.

Packaging also improved. General Mills said 95% of its packaging by weight was designed to be recyclable or reusable in fiscal 2025, up from 93% in fiscal 2024. The company has a goal of reaching 100% recyclable or reusable packaging by 2030.

The packaging mix remains relevant for investors and procurement teams. ESG Dive reported that 76% of General Mills packaging by weight is fiber, 9% plastic, 9% steel, 3% composite cans, 2% glass and 1% aluminum. The company is working on mono polyethylene plastic packaging, which can be recycled in the United States through retailer drop-off programs.

Deforestation-Linked Commodities Remain a Focus

A material part of General Mills’ supply chain climate impact comes from commodities associated with deforestation risk. The company reported that about 22% of its ingredient- and packaging-derived emissions in fiscal 2025 came from materials linked to deforestation risk, including palm oil, cocoa and fiber packaging made from pulp and paper.

By the end of calendar 2024, General Mills said it had purchased deforestation-free volumes for 96.8% of palm oil, 88% of cocoa and chocolate, and 99.6% of fiber packaging. These figures suggest progress, but also show that full coverage remains incomplete, particularly for cocoa and chocolate supply chains.

For food manufacturers, deforestation-free sourcing is increasingly linked to climate targets, regulatory exposure and market access. Companies with global supply chains face growing pressure to trace agricultural commodities, verify land use impacts and work with suppliers on production practices.

Regenerative Agriculture Expands, but Emissions Results Remain Uneven

General Mills said it had engaged more than 800,000 acres in regenerative agriculture programs by fiscal 2025, putting it more than three-quarters of the way toward its 2030 commitment.

The company has previously said its climate transition approach includes reducing dairy emissions, expanding regenerative agriculture, improving transportation, increasing renewable electricity and addressing packaging impacts. In 2024, Food Dive reported that General Mills planned to reduce dairy emissions by 40% by 2030 through measures including manure management, rotational grazing, feed optimization and cow health initiatives.

However, the latest emissions trend shows that program expansion does not automatically translate into steady annual reductions across the full value chain. Agricultural decarbonization can take time to measure, and results may be affected by product mix, sourcing volumes, commodity availability and supplier adoption.

Water Intensity and Animal Welfare Lag

Water performance was another area of weaker progress. General Mills’ production facilities used more gallons of water per ton of finished product in fiscal 2025 than in the prior year. ESG Dive reported that improvements in water use were offset by unfavorable product mix and volume changes. The company notes that production facilities account for about 2% of its water footprint, suggesting that broader agricultural water impacts remain important.

Animal welfare sourcing also remains a challenge. Only 4% of General Mills’ broiler chicken volume complied with Global Animal Partnership standards by the end of fiscal 2025. The company said broad changes in this area require industry alignment and supplier partnership.

The company also reported that 84% of global egg purchases for ice cream, baked goods and doughs came from cage-free or free-range hens. It said cost and availability prevented it from reaching its 100% target.

Practical Implications for Food and Consumer Goods Companies

General Mills’ latest results show that climate performance in the food sector depends heavily on supplier cooperation, agricultural practices and credible commodity traceability. Operational efficiency and renewable energy procurement remain important, but they are not sufficient for companies whose largest impacts sit upstream.

For suppliers, the message is also clear. Large food companies are likely to keep asking for emissions data, deforestation verification, lower-carbon agricultural practices and packaging improvements. Producers that can document lower-impact inputs may become more competitive as corporate climate targets move from broad commitments to procurement requirements.

For investors and sustainability teams, the General Mills update is a reminder to examine year-over-year progress alongside long-term targets. A company can make meaningful progress in waste or packaging while still facing difficulty on full value chain emissions. The key test over the next several years will be whether supply chain programs can deliver measurable reductions quickly enough to support the 2030 climate target.

Source: www.esgdive.com