Carbon Footprint of the Food Industry and ESG-Related Business Promotion

Abstract

The carbon emissions of the food industry account for a significant proportion of the overall carbon emissions. Figuring out the carbon footprint of the food industry is a great way to find out the reason for the large amount of carbon emissions. In this part, the paper selected several variations that may have some influence on carbon emissions and did some intensive studies to figure out which one is the major factor. By analyzing through life cycle assessment and regression by Random Forest, it was figured that fertilizer is the most influential factor in carbon emissions, and focusing more on the usage of compound fertilizer and decreasing the usage of other kinds of fertilizer can effectively reduce the carbon emissions. Then the paper tried to figure out whether the reduction is realistic, and the paper did research in the financial field. The paper did an ESG score ranking of the fertilizer company, cultivated the investment weight in the portfolio, and did a risk rating of them. The research adopted the Grey Forecasting Model and quadratic Optimization Formulation to process data. Through the simple study of the carbon footprint of fertilizers and an analysis of the investment ratio of investors, it is finally found that to economically promote and support the development of carbon-reducing compound fertilizers by business is essential. Besides, it coincides with investors’ interests.