{"id":21734,"date":"2023-07-31T13:00:00","date_gmt":"2023-07-31T11:00:00","guid":{"rendered":"https:\/\/www.rewe-group.com\/de\/?post_type=press_release&p=31739"},"modified":"2024-05-17T10:51:19","modified_gmt":"2024-05-17T08:51:19","slug":"environmental-costs-the-pioneering-europe-wide-study-based-on-pennys-true-costs-campaign-week","status":"publish","type":"press_release","link":"https:\/\/www.rewe-group.com\/en\/press-and-media\/newsroom\/press-releases\/environmental-costs-the-pioneering-europe-wide-study-based-on-pennys-true-costs-campaign-week\/","title":{"rendered":"Environmental costs: the pioneering, Europe-wide study based on PENNY\u2019s \u201ctrue costs\u201d campaign week"},"content":{"rendered":"\n
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All forms of production and consumption have repercussions for the environment. These as yet invisible environmental costs \u2013 the true costs \u2013 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 \u201ctrue costs\u201d. 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 \u201ctrue costs\u201d of nine selected products. PENNY will donate the difference between the current store price and the true cost. The scientists calculated the \u201ctrue costs\u201d 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\u2019s 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.<\/p>\n

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,<\/q> said Stefan G\u00f6rgens, COO PENNY, at today\u2019s digital press conference (31 July) to launch the campaign.<\/p>\n

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.<\/p>\n

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 \u2013 for consumers and producers alike.<\/q><\/p>\n

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,<\/q> adds Dr Amelie Michalke, sustainability scientist at the University of Greifswald.<\/p>\n <\/div>\n\n <\/div>\n<\/div>\n\n

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Surplus takings from the campaign and an additional 50,000 euros for the Future Farmer project<\/h2>\n

PENNY will donate its surplus revenue \u2013 the difference between the current store price and the true cost, to the Future Farmer project. This is a joint project run by PENNY and the dairy company Berchtesgadener Land that aims to help protect the climate and preserve family-run farms in the Alpine region. As part of the project, PENNY donates a proportion of its margin from the sale of all dairy produce from Berchtesgadener Land and the dairy company doubles this. This creates a funding pot of more than 350,000 euros each year, enabling grants of up to 10,000 euros to be awarded to farmers from the cooperative dairy who want to optimise the energy efficiency of their farms. Future Farmer was set up in October 2021.<\/p>\n <\/div>\n\n <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n

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Explanation of the four factors used in the calculations<\/h2>\n

Climate:<\/strong><\/p>\n

This includes all the agricultural emissions that damage the environment, such as the methane produced by cattle during digestion and the carbon dioxide produced when using diesel tractors.<\/p>\n

Water:<\/strong><\/p>\n

This includes all contaminants that negatively affect the quality of groundwater, other water sources and reservoirs, such as nitrogen from fertilisers that upsets the nutrient balance of the water. This causes the excessive growth of algae and aquatic plants and causes eutrophication, where other plants and organisms are deprived of oxygen and light. However, the consequences of pesticides entering the water are also measured under the \u201cwater\u201d heading.<\/p>\n

Soil:<\/strong><\/p>\n

This concerns land use for agricultural production. One example is the use of natural land for agricultural production. To produce plants for human or animal (fodder) use, an area\u2019s natural characteristics are altered so that it can be used as arable land.<\/p>\n

Health:<\/strong><\/p>\n

The production of food, as well as its consumption, has an impact on human health. Pesticide use releases poisonous substances that may lead to health issues, including cancer, for the people, particularly farmers, who come into contact with them. Other substances, such as the ammonia used in farming and in liquid manure, increase the production of particulate matter, which also has a negative impact on the human respiratory tract.<\/p>\n

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About true costs<\/h2>\n

Unlike current food prices, the true costs of food products also include the environmental and social costs incurred throughout supply chains during food production, also known as \u201cnegative externalities\u201d. They are caused by all food producers and are currently borne by society as a whole, albeit indirectly. This means, for example, that the real price consumers are paying for greenhouse gas emissions is climate change and its repercussions, or that their water bill includes the costs for treating drinking water that has been contaminated with fertilisers. True cost accounting not only calculates the price of a foodstuff based on its direct production costs but also expresses how the foodstuff impacts ecological or social systems in monetary terms. When this scientific method is applied to food prices, consumers see the actual price of their food \u2013 not just at the checkout, but everywhere else \u2013 and this helps them to understand what long-term effects individual products are having not just on their wallet, but on the health of the planet as well.<\/p>\n<\/div>\n <\/div>\n<\/div>\n<\/div>\n\n

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About PENNY<\/h2> <\/div>\n
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