All forms of production and consumption have repercussions for the environment. These as yet invisible environmental costs – the true costs – inevitably arise throughout supply chains but are not or are only partially reflected in the sales price of the products, services and food, without transparency as to whether, when, how, where and by whom they are offset. In partnership with the Nuremberg Institute of Technology and the University of Greifswald, PENNY wants to create the basis for a broader discussion around food prices through its Europe-wide, week-long groundbreaking campaign on these “true costs”. We also want to show customers a range of actions they can take based on scientific data. Between 31 July and 5 August, all 2,150 PENNY stores will charge the “true costs” of nine selected products. PENNY will donate the difference between the current store price and the true cost. The scientists calculated the “true costs” of a selection of conventional and organically produced private-label products, and a vegan product, by including in the sales price the soil, climate, water and health impacts arising from the supply chains. Based on these calculations, Professor Tobias Gaugler and Dr Amelie Michalke’s team concluded that the extent to which the sales price of food reflects the true cost varies according to the production methods. The average environmental impact cost of the organic foods surveyed is 1.15 euros. This compares to 1.57 euros for conventional products and just 14 cents for the vegan Food for Future schnitzel. (www.penny.de/wahrekosten and www.wahre-preise.de). Back in 2020, PENNY broke new ground by unveiling the true cost of products in eye-catching fashion when it opened its sustainability store in Berlin.
We can see that many of our customers are struggling with the continuing high cost of food. However, we must face up to the uncomfortable truth that the price of our food does not reflect the environmental costs that arise along the supply chain. We want to raise awareness of these through our national campaign on the true cost of food. Alongside the Nuremberg Institute of Technology and the University of Greifswald, we also want to offer solutions. To this end, we are providing the scientists with extensive data. This is the first time that such a broad approach to this issue has been taken anywhere in Europe. The scientific teams and PENNY are really putting in the groundwork here,
said Stefan Görgens, COO PENNY, at today’s digital press conference (31 July) to launch the campaign.
PENNY recognises the need to further intensify efforts to make food production more sustainable and thus reduce the environmental impact costs. One of the main challenges is to ensure that everyone can continue to afford high-quality food. This is where a broader societal discussion is required; something which PENNY, as an individual company in the competitive market, cannot initiate on its own.
Professor Tobias Gaugler from Nuremberg Institute of Technology adds: We are receiving extensive data from the campaign week but also from comparative weeks, as well as socio-demographic information. This will certainly provide us with valuable insights into purchasing behaviour and consumer acceptance of the issue, enabling us to give recommendations to the various parties involved. These will primarily shape meaningful policies designed to contribute to the sustainable transformation of the food sector – for consumers and producers alike.
It is not a question of immediately introducing true-cost pricing for all food. There is no comprehensive scientific basis for this and we also lack the answers to key questions of social justice. We are hoping to give a major boost to a different and fairer way of discussing and thinking about food prices,
adds Dr Amelie Michalke, sustainability scientist at the University of Greifswald.
