Food waste may not be the first thing you connect to a career in finance. But as a finance professional, your expertise could help solve one of the world’s most pressing environmental and social challenges.
In an episode of the Reshaping Finance podcast, Accounting for Food Waste: Reshaping Finance for a Sustainable Future, the idea of how management accountants can be a powerful, positive influence when it comes to tackling food waste and advancing sustainability is explored by Dr Leanne Keddie, Associate Professor of Accounting at the Sprott School of Business, Carleton University, in Ottawa, Ontario, Canada, and Dr Martin Farrar, Associate Technical Director Research & Development at the Association of International Certified Professional Accountants.
Food waste: A hidden problem in finance that you can solve
Every year, between 30% and 60% of food never makes it from farm or factory to fork, according to some estimates. This is an issue because food waste drains value from organisations and the economy, while exacerbating environmental issues such as greenhouse gas emissions and resource depletion.
As Keddie discussed in the podcast episode, food waste remains largely invisible in most financial reporting. Losses from spoilage, overproduction, or poor forecasting are often buried in a generic “shrink” category, mixed with theft, damage, and administrative errors.
In the absence of accurate data, organisations often underestimate both the financial impact and the environmental damage caused by food waste.
Finance professionals are the missing link in sustainability
Food waste presents a challenge for many organisations because effective solutions aren’t prioritised and the impact of food waste is often underestimated. Many organisations also lack systems to track waste.
The question is: Where do you, as a finance professional, fit into efforts to reduce food waste?
As a CGMA professional, you sit at the intersection of data, decision-making, and performance measurement within an organisation. With such a unique vantage point, you can:
- Identify where waste is happening in the business
- Make the case for tracking and reporting food waste separately
- Ensure new systems and standards are set up for measuring waste
- Influence business strategy to prioritise both profit and sustainability
Keddie noted that there are also emotional barriers to more accurate reporting on food waste: People may fear that highlighting waste reflects poorly on them and their organisation or worry about disrupting the status quo. This is where ethical leadership, a key pillar of the CGMA qualification, becomes essential.
Building accountability in organisations and systems increases awareness and encourages everyone to take responsibility for reducing waste.
Turning numbers into positive change
A career in finance is about using numbers to create meaningful, positive change. For food waste, that means making the invisible visible. Your work could:
- Break down “shrink” into specific categories so food waste is tracked
- Advocate for new reporting standards that require organisations to disclose not only how much they waste, but also what they are doing to prevent it
- Empower organisations to identify where they can save money and reduce their environmental impact
The CGMA Professional Qualification is designed to equip you with the skills and mindset to analyse complex problems, communicate clearly, and build accountability into business systems.
As a CGMA student, you will learn how to influence decision-makers and champion projects that align financial goals with social and environmental impact.
Technology: A vital part of your finance career
Technologies such as artificial intelligence and blockchain are enabling new avenues in sustainability accounting. As Keddie explained, tech tools can be used to track food across the supply chain in real time making waste visible at every stage, helping companies identify cost savings, and enabling innovative circular-economy models. For example, you could turn surplus food or brewery grains into animal feed or fertiliser.
But technology is only part of the picture. You are needed to connect the dots: integrating store-level accounting with big-picture sustainability targets; building networks across retailers, farms, and communities; and creating new systems for accountability and reporting.
Finance with purpose: Three actions you can take as an aspiring finance leader
You can start building the skills you need to create a more sustainable future.
- Get comfortable with data: Auditing “shrink” accounts to uncover hidden food waste is just the beginning. The CGMA Professional Qualification will enable you to analyse and interpret financial and nonfinancial data to create real value.
- Champion transparency: Advocate for separate tracking and reporting of food waste in any organisation you join. Your voice can help change reporting standards.
- Embrace new technologies: Explore how AI or blockchain could be used for increased supply chain transparency and efficiency. The CGMA syllabus will prepare you to work with these tools and apply them ethically.
The road to a meaningful finance career is about using your expertise to solve problems, advise leadership, and make a positive impact in your organisation and community.
Through the CGMA Professional Qualification, you develop the mindset, ethical insights, leadership skills, and technical abilities to advise on business decisions that consider both profit and planet.
Find out how the CGMA qualification can empower you to make a difference, and hear from CGMA professionals like Tapiwa Nyakudya, who shares her advice for future CGMA students.
