Looking to understand the role of instant noodles in middle-class Chinese life, the IDEO team conducted in-home research with consumers across a range of life stages and levels of attachment to noodle culture and convenience foods. The first finding was reassuring: Everyone kept instant noodles at home. The category still had a place in middle-class kitchens. But beneath that was a more complicated, emotional story—and an unmet need for convenience and quality to coexist in a single product.

The team discovered that instant noodles are more than just a quick, on-the-go meal; they are a nostalgic comfort food that evokes fond memories. But since their heyday, their role in daily life has evolved. Once a complete meal in itself, instant noodles now often function as a versatile flavor base or culinary accent in other dishes. Because they don’t align with the healthier, higher-quality, and more novel food choices that middle-class consumers aspire to, noodle shops, delivery noodles, or fresh-cooked instant options often win out. Yet, even these alternatives come with trade-offs. Delivered noodles lose texture during transport. Sit-down noodle shops preserve quality but offer limited flavors.  Cooking from scratch meets the bar for both texture and flavor, but requires a significant time investment. As one young mother said, “If I could get the texture of fresh-cooked noodles without turning on the stove, I’d buy that instant noodle for sure.”

The research inspired the creation of a new category, which the team termed “fresh-brewed noodles.” More than just a noodle or broth upgrade, Master Kong’s fresh-brewed noodles would offer the speed of instant noodles with the quality of freshly cooked options, plus flavors not found in traditional noodle shops. The strategic positioning was clear. Executing it by making fresh-brewed noodles mass-producible, affordable, and eventually profitable presented a category-innovation challenge. To get there, IDEO designed a series of dual-track co-creation workshops with the Master Kong team and consumers.

One track focused on prototyping the core product experience: noodles, broth, and toppings. IDEO and Master Kong’s R&D team began by studying the traditional craft of Chinese noodle-making, starting in Shanxi, a region renowned for its noodles. Through successive rounds of prototyping and consumer tasting, the team identified a critical insight: for “fresh-brewed noodles” to be convincing, the innovation had to be centered on the noodles themselves.

Texture alone was not enough. Consumers needed to see a meaningful difference before they tasted the product. IDEO translated this insight into a distinctive noodle profile: irregular, dimensional shapes designed to remain springy, hold sauce and broth, and mimic the resilience of freshly cooked noodles using only hot water. Because this visible shape represented the product’s core value proposition, it became a hero feature on the packaging. The graphic design made a bold visual statement about the noodle form, turning a technical R&D breakthrough into an immediately legible consumer promise: these are not ordinary instant noodles.

A parallel track explored the broader commercial experience: trend-forward and reimagined classic flavor profiles, light yet deeply satisfying broths, carefully selected toppings, and packaging that signals a new level of quality on store shelves. One key insight was that utensils carry meaning. Conventional instant noodles are often associated with disposable plastic forks, while higher-quality noodles are eaten with chopsticks. IDEO translated this cultural cue into the design of the bowl’s lid.

Instead of treating utensils as an afterthought, the team designed a solid, rounded, heat-retaining lid that embeds a pair of small wooden chopsticks. The gesture creates a small ritual of anticipation and reframes the product—not just a convenient instant meal, but a more considered noodle experience. Once opened, the product fulfills that promise with satisfyingly bouncy noodles, a rich liquid broth pouch that replaces the traditional oil-and-powder packet, and a vegetable packet reformulated with more premium whole ingredients.

The first batch of “Te Bie Te” Fresh-Brewed Noodles—Chinese wordplay that emphasizes “special”—launched in August 2025 with three trendy and tried-and-true flavors. Within just three days, sales exceeded 100,000 bowls. Within a week, “Te Bie Te” topped the instant noodle category sales ranking on Douyin, China’s domestic counterpart to TikTok. The outcome was bigger than a product launch—it served as proof that a mature, declining category could be fundamentally reinvented to meet consumers’ real needs. For Master Kong, the project became a North Star and a model for internal category innovation in beverages, ready-to-eat foods, and beyond.

Once a popular, affordable staple, the instant noodle category in China has been declining rapidly due to shifting demographics, rising food delivery options, and increasing customer demand for healthier, more nutritious meals.

‍

According to the World Instant Noodles Association, between 2020 and 2023, China’s instant noodle consumption fell by 4 billion packs.

100,000+

“Te Bie Te” bowls sold in the first 3 days on the market

#1

on Douyin’s instant noodle category ranking within one week of launch

Taylor’s legacy began in 1969 with the founding of Taylor’s College and soon expanded to include Taylor’s University, one of Southeast Asia’s top private universities, as well as many other institutions that serve 35,000 students per year. The family-owned group also operates Taylor’s International Schools, Garden International School, and Nexus International School for students ages 4 to 18. In Kuala Lumpur, Malaysia’s capital city, annual tuition at premium private schools like these ranges from about $10,000 to $25,000 USD. Taylor’s wanted to do something different: provide the same level of academic rigor and immersive learning experiences at one-third the cost.

IDEO began by speaking with over three dozen students, parents, teachers, and experts across the capital to understand what was working, what wasn’t, and what was missing from such moderately priced international schools.

A few themes quickly emerged. Families, students, and teachers were worried about the stability of these new private schools, which tended to have higher-than-normal teacher turnover rates and were plagued by financial instability, negatively impacting talent attraction and retention, as well as student learning. Parents appreciated that the schools offered holistic learning experiences, such as field trips to rural areas, including jungles, but wished they were more consistently part of the curriculum. And now, the looming challenge of AI—how to use it, how to teach it, and how to teach with it—was in the background, a persistent cause for concern. The big unmet need? Reassurance that Taylor’s was thinking long-term and systematically about developing the skills, knowledge, and mindsets that would prepare students for an ever-changing world. Parents wanted a school that measured growth in academic, social, and character terms over generations, not just school semesters.

With these insights in hand, IDEO began developing a design Playbook for Taylor’s new brand—Lexel International Schools. A combination of “lexicon” and “excellence,” Lexel’s mission is “building what lasts, learning for life.”

The schools are centered around three key differentiators: 

• Always Ahead: Lexel schools commit to staying current with the topics and subject matter they teach, as well as the tools they provide to students, parents, and teachers.s.  
  ‍
• Learning That Builds for Life: The schools ensure programmatic, systemic, and consistent learning experiences from Pre-K to Year 11. Interested students can even continue their post-secondary journey in partnership with Taylor’s University and other higher education institutions within the Taylor’s ecosystem.
  
  
• Educators for the Long Run: These schools commit to ongoing investments in professional growth opportunities for teachers and stable learning environments for students.

Four Lexel Literacies—AI, Digital, Financial, and Nutrition—integrated into the Cambridge Curriculum bring the school’s vision and mission to life.

By systematically integrating AI literacy into its spiral education framework, in particular, an approach where major topics are revisited multiple times through a curriculum to build fluency over time, Lexel ensures parents that the school is thinking a decade ahead from Day One, setting the school apart. In addition to enhancing AI fluency, Lexel offers unique end-of-term experiences called Jungles & Junctions.

Combining three important strands of learning—community engagement, nature-based personal and interpersonal development, and career and university exploration—Jungles & Junctions leverages Taylor’s extended educational network and Lexel’s strategic founding campus within the Gamuda Gardens development in Selangor. Surrounded by tropical rainforests, the township’s residential neighborhoods, theme park, and various sports facilities, including an Olympic-length swimming pool, are transformed into an extended Lexel campus, with a GenAI-driven planner to help teachers streamline the organization of class outings. “The Township is Your Campus” became the tagline for this approach.

In September 2025, just months after IDEO’s collaboration ended, Taylor’s began classes at its first Lexel International School. By mid-year, the new school had achieved 115% of its year-one student enrollment target, with significant inbound demand for Year 2 already demonstrating the school’s market resonance.

The modern campus features spacious classrooms, science and technology labs, a library, a multipurpose hall, and a canteen. Annual tuition ranges from about $2,800 USD for pre-K students to about $6,100 USD for secondary students.

Most importantly, by combining Taylor’s deep academic expertise, Gamuda Land’s development prowess, and IDEO’s innovative design Playbook, Lexel brings quality, affordable international education closer to home for Malaysian families. According to one parent, “My daughter looks forward to going to school every day … and has a lot of opportunities to express herself. On a scale of 1 to 10, I give [Lexel] an 11.” Based on the IDEO Playbook, a second flagship campus in the Southern Klang Valley, which is scheduled to open in September 2026, has already exceeded its year-one target enrollment expectations, with plans to continue extending the Lexel network to other parts of Malaysia and the wider Southeast Asian region in the near future.

Malaysia’s private international school sector has grown significantly as parents seek quality English-language education. However, high tuition fees and limited access to reputable schools are continual challenges for those in the emerging middle class.

115%

of Lexel’s student enrollment target reached during the launch year of its first campus
‍

Year 1 enrollment target exceeded

at Lexel's second campus several months ahead of classes commencing

‍

The American news industry has long been a competitive and saturated market. This has only intensified with the emergence of social media outlets and AI-generated news. Even so, SAN’s rigorously unbiased, fact-based reporting style and rich video storytelling had enabled the ambitious startup to rise above the media fray in just three short years.

With a strong foundation to build on, IDEO sought to further differentiate SAN’s cutting-edge news product and build deeper engagement with a wider audience through a new user experience.

‍Collaborating closely, IDEO and SAN began by delving deeply into media consumption habits. They met with early SAN superfans, news consumers who spent hours a day absorbing content from traditional outlets like Fox and USA Today, and those who looked to their Ring doorbell app or Reddit for news. The takeaways? People were tired of clickbait and clunky interfaces. They sought clear, factual news that was easily accessible, with additional context to help them interpret events and understand their significance. They craved more than one perspective on important topics, so stories felt balanced rather than polarized. They also valued having control over how they consumed news, so making it easy to switch between text, video, and audio formats was crucial.

Together, IDEO and SAN created features across SAN’s website and app that put facts, trust, and transparency at the core of the product experience. Fact Cards distill key data points into clear, shareable units, while the Sources feature allows readers to trace information directly back to its original source. To make complex stories easier to grasp, Big Picture insights drill down into why events matter, surfacing underlying themes, historical parallels, differences in reporting, and common ground. The Why This Story Matters section provides readers with clear framing and sets the story within a broader context, while the Timeline illustrates how events unfold over days, months, or even years. An antidote to news polarization, See All Sides presents left, right, and center narratives for key topics side-by-side, and Media Landscape visualizations reveal how coverage varies across outlets. Finally, to ensure SAN fits seamlessly into readers’ daily lives, the redesigned Today Page is organized into three highly scannable sections: Latest News, Top Stories, and SAN Originals. The combined features create a balanced, clear, and non-polarizing news experience, making it easy for readers to delve deeper into the sources of their news.

SAN now delivers a news experience as modern, dynamic, and trustworthy as its journalism. A month after its debut, the SAN app’s page views increased 1,170 percent year over year compared to June 2024, while active users rose 700 percent. Readers also give the updated mobile experience a 4.8 rating on the Apple App Store. “Our team is delivering reporting that’s both deeply factual and accessible,” said Derek Mead, SAN’s Chief Content Officer. “This redesign is pivotal to the direction journalism needs to take and the leadership role Straight Arrow News is taking on as we help guide the news industry into a brighter future.”

SAN built a loyal readership and gained recognition for its unbiased reporting. To expand and stand out from legacy media, SAN  wanted a redesigned user experience that reflected its commitment to fact-based journalism.

1,170%

increase in app page views YoY 

700%

increase in active users

4.8 rating

on the Apple App Store

Sanofi was the first company to supply the polio vaccine worldwide. Because of the global fight against the disease, endemic wild poliovirus transmission is now limited to just two countries. However, attitudes toward vaccines and immunizations have shifted significantly. To ensure a smooth launch of Beyfortus in a time of increased vaccine hesitancy, Sanofi asked IDEO to conduct research across four important and very different healthcare markets: Germany, Spain, China, and the US.

IDEO worked with parents, caregivers, healthcare professionals, and healthcare administrators to identify potential barriers to vaccine adoption and understand the emotional needs of all stakeholders involved in the immunization process. Navigating cultural differences and diverse healthcare environments, the team uncovered a set of insights.

For healthcare professionals, the team discovered there was no one-size-fits-all approach to immunization training across Sanofi’s 20-plus global markets. While consistency of key information was important, trainings needed to be flexible and customizable. This way, regardless of whether the vaccine was administered by midwives, OB-GYNs, nurses, or doctors, they could  confidently discuss the pros and cons across cultural contexts and administer the drug correctly.
‍
For new parents, receiving information about a new immunization immediately after giving birth could be too stressful. But simply leaving pamphlets about Beyfortus in waiting rooms didn't address their real concerns, either. Caregivers needed to engage in conversations earlier in their pregnancies and continue them after leaving the hospital, when they might have additional questions.

IDEO translated these research insights into a highly accessible global communication toolkit that uses simple, straightforward language, metaphors, and illustrations to support informed conversations between healthcare providers and parents before, during, and after a child is born. IDEO then conducted a series of market-fit co-design workshops with representatives of Sanofi’s global immunization business to iterate on the print and digital tools, make them more resonant with regional customers, and ensure compliance with local regulations. IDEO handed the toolkits over for development to support the launch of Beyfortus in January 2024, just in time for RSV season.

Beyfortus saw enormous demand in its first year, demonstrating strong efficacy in real-world applications and achieving blockbuster status as a $1.8 billion therapy. Sanofi’s global launch team credits the patient-centric toolkit with increased requests for communication materials from its regional markets as well as from healthcare and government organizations that have typically been hard to reach, key goals of its global-local launch strategy.

Since its development, Beyfortus has received swift regulatory approval from the US, EU, China, and Japan, with patient demand causing Sanofi to triple its worldwide manufacturing capacity to meet the needs of the 2024-25 RSV season. Ahead of the larger global distribution of Beyfortus, IDEO and Sanofi partnered with equity expert consultants, Fearless Futures, to conduct a DEI review and worked with doctors and nurses who participated in the initial drug launch to make the materials even more accessible, relevant, and successful for 2025 and beyond. To date, six million babies—and counting—have been immunized with Beyfortus.

Worldwide, childhood vaccination hesitancy among parents fluctuates between 25-45%, according to the World Health Organization (WHO), a trend it considers one of the biggest global threats to public health.

85.9%

‍reduction in hospitalizations for infants who received Beyfortus compared to those who did not (2023–24 RSV season)

$1.8B

in first-year sales of Beyfortus

‍

That was the question that we woke up to from our colleague, EJ Baker, on IDEO’s #climate Slack channel in mid-September. For months, Anna Varnai, Jenny Gottstein, Mike Sakowski, and I had been evaluating potential providers and projects to offset IDEO’s carbon footprint in our journey to becoming Net Zero.

EJ’s inquiry brought us back to a question we had been debating for months: Is it better to invest in voluntary offsets or invest more deeply in reducing emissions? While there are legitimate arguments to be made for each path, we felt that emissions reductions weren’t enough. We urgently need to remove greenhouse gasses from the atmosphere. And since we are driven to design the world we want to live in, we chose to meet in the middle—both reduce our emissions and offset what we are unable to reduce. Despite its limitations, offsetting offers a way to strengthen our climate commitments as we ramp up our emissions reduction efforts.

In principle, voluntary carbon offsets appear simple; in reality, they become complicated very quickly. We reached out to offset providers and offset purchasers to learn about their approach and experiences, but instead of walking away with clarity, we realized that no one had really figured it out yet. Even the experts were still grappling with questions like what types of offsets should be used and when, or whether offsetting is even a credible means of achieving Net Zero.

In search of answers, we set out on a quest—diving into academic literature, researching industry best practices, and following countless startups in the space. We learned about the permanence, additionality, and vintage of an offset and how each relates to the quality of an offset project. We learned about the potential social benefits—from community employment to energy access—that come from different projects. We learned about the entities that verify and certify offset efforts. And, we learned that the more we uncovered, the more questions we had.

Should IDEO invest in high-quality and expensive carbon sequestration solutions aligned with our ambitions for the future? Or should we invest in readily available and affordable nature-based solutions? How much geographical representation should we have? How do we know that our investments won’t go up in smoke? How should we think about the intersection between our offsets, climate justice, and IDEO’s DE&I commitments?

The considerations for what to invest in went on, and the dilemma was paralyzing. On the one hand, we wanted to do it all. On the other hand, we had a finite budget and the clock was ticking. What was the right way to get started?

We contemplated having employees vote and help us pick offset projects. While this approach empowered employees to directly shape our company investments, in an area as complex and opaque as the voluntary carbon market, it would be hard for all participants to have an informed perspective in voting.

We contemplated creating a committee that would select projects based on a set of established needs and values. While simple in practice, we weren’t confident an internal team could navigate the magnitude of the task in a manner that fully represented IDEO, and the inevitable scrutiny that comes from decisions like this.

We contemplated seeking advice from third-party experts, but found that many of them sold offsets themselves, raising all kinds of questions about their motives and whether there was a conflict of interest (even though they were extremely generous with their perspective—thank you!).

We needed to get reasonably smart about this space to make informed decisions.

Enter the Oxford Offsetting Principles, a series of guidelines put together by Eli Mitchell-Larson et al., that outline how offsetting should be approached to achieve Net Zero. Informed by these principles, we were drawn to two start-up offset providers, Lune and Patch. These providers stood apart for several reasons. First, they allowed us to select a broad portfolio of high-quality carbon offset projects. Second, their projects had an international reach. From the get go, we knew we wanted our carbon offsetting efforts to reflect IDEO’s global presence, impact, and responsibility. Both Lune and Patch offered a way for us to do so.

From there, having estimated our carbon footprint at around 4,950 t CO2e for 2021, we intentionally over-offset our emissions by purchasing 5,500 t CO2e.

Based on the Oxford Offsetting Principles, we spread those offsets across:

• Global renewable energy projects for Type I (22.5%)
• Forestry protection projects in Asia and Latin America for Type II (22.5%)
• Methane capture at landfills in the United States for Type III (5%)
• Reforestation projects in Africa and North America and regenerative agriculture projects in the US for Type IV (45%)
• Enhanced weathering projects in Europe for Type V (5%)

Overall, we spent a little over $20 per tonne of CO2e with about 92% of those fees going toward the projects themselves. (You can see a visual breakdown of our project bundles with Lune, here.)

Are we confident that our offset strategy is the gold standard? Not quite. But we do feel confident in our approach, and as the voluntary carbon market matures, we will continue to iterate alongside it. We’ve learned that climate action, like design, requires us to get started with curiosity and humility. It demands a learning mindset that seeks progress over perfection.

To those who have purchased or are considering purchasing offsets of your own, we’d love to hear about your approach and what you’re learning.

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

“Genuine question: are offsets a useful thing?”

When it comes to sustainability and the food system, looking ahead five or ten years and making eventual environmental commitments are not enough. There is a limited time to act if we want to head off the worst of what’s to come, from major supply chain disruptions to even higher levels of agriculture-related carbon emissions. That’s a challenging reality in the face of a climate crisis that can feel overwhelmingly abstract and a business environment that has long prioritized what is happening in the next quarter, not the next decade.

IDEO is a future-oriented firm, and over the last decade, we have been working with people, companies, governments, and organizations across the food industry who share our exploratory mindset and growing sense of urgency around addressing climate change. We have partnered with global nonprofits seeking to reduce food loss on farms, helped food brands launch products with better and healthier ingredients, are examining corporate procurement’s role in mainstreaming regenerative agriculture, and are working with food companies to help them achieve their environmental, social, and governance (ESG) commitments. It has left us sure of the food future we’re aiming for: one in which the extractive, linear model is replaced by a circular economy that regenerates the environment, builds thriving communities, and develops more nourishing food and beverage products that everyone can access. Design is a vital tool in getting us there.

Circular design recognizes that each individual, from farmers to food workers to consumers, factors into an interconnected and constantly changing system. It allows us to position the human perspective alongside technological and economic constraints and arrive at ways to make food truly equitable, regenerative, and nourishing for both people and the planet.

As we work toward that climate-positive future using the tools of design, here are three things that are on our mind and directing our actions:

The system has made headway in reducing food waste, but there’s more to be done

Globally, about one-third of food is lost or wasted each year. The loss and waste account for 8% of global greenhouse gas emissions and are occurring at the same time that 1 in 9 people are undernourished. “Preventing food waste is ... the food sector’s single most important direct climate action,” is how Sodexo CEO Denis Machuel put it.

Within the US, some 40% of food waste is tied to businesses that serve consumers, like hotels and restaurants. That point was driven home when we partnered with The Rockefeller Foundation and Hyatt Hotels to develop novel ways to tackle food waste at the hotel buffet. We found nearly half of the food put out for guests wasn’t eaten, and at most only 15% of that could be donated or repurposed.

The fear of shortage was a driver, with the hotel kitchen overproducing to ensure they would have ample food for guests, and guests overloading plates so as not to miss out. Knowing that allowed us to introduce simple but effective solutions like displaying small sample plates of meat and cheeses that guests can order, rather than laying out extensive platters.

But a third of global food waste occurs upstream, at the agricultural harvest and production stage. Our work with Japanese growers while developing the fudoloop app highlighted one reason why: a disconnect between supply and demand. Agricultural wholesalers were generally in the dark about coming crop volumes and details, which made it harder to negotiate with buyers—resulting in food waste—while the labor-intensive nature of the harvest left farmers without the time and energy to pursue a solution. The app gets crop information from farmers to wholesalers one day in advance to allow for much more effective coordination.

Similarly, when the World Wildlife Foundation asked us to help minimize food loss on farms in the United States, labor availability emerged as one of the main reasons crops are not fully harvested and packed. Together we prototyped a model that connects farms and local people in need of part-time paid work to harvest surplus produce otherwise left in the fields, and tested the concept on a California tomato farm. Under this model, the harvested fruits and vegetables would then be made accessible to those who need them through a virtual platform that matches a grower’s surplus with a food bank’s demand.

Downstream, food banks and pantries serve as a way to mitigate both food waste and hunger, but challenges abound there too. According to the USDA's Household Food Insecurity in the United States in 2020 report, 61% of food insecure Americans do not use them.

In some cases, schedules and transportation are deterrents, which inspired our work with the Northern Illinois Food Bank. We helped them launch a first-of-its-kind digital pantry that allows individuals to order groceries and select a pick-up time and location in advance. The approach gives food bank users agency and choice, eliminating food waste that can occur when individuals are given foods they dislike or that don’t align with their dietary restrictions. It also allows the food bank to track data—a key element to understanding waste—in order to have better supply and demand signaling.

Food companies need to reimagine their product portfolios with biodiversity in mind

For more than a decade IDEO has worked with CPG clients to create food that is healthier. Biodiversity is the next step in the journey, and it’s a particularly exciting one because of the dual impacts to the planet and human health. In a little more than a century the planet has lost 75% of the genetic plant diversity in agriculture, and per a 2020 report, some 20% of countries risk seeing their ecosystems collapse due to the decline in biodiversity.

The linear economy got us here. Prioritizing efficiency and profit brought us to a place where 75% of the global food supply is sourced from just 12 plant and five animal species. Rice, maize, and wheat account for almost 60% of calories all of humanity gets from plants, curtailing consumption of vital nutrients. The monoculture farming responsible for that shortlist of crops makes the food supply more vulnerable. Monocultures are less able to withstand climate extremes and pests. Diversifying these farms is a way of building resilience.

Transforming dietary diversity at scale requires efforts on production, procurement, manufacturing, product design, and consumption levels. In a recent WBCSD & One Planet Business for Biodiversity report, product design is the most commonly cited area of opportunity when it comes to “staple crop diversification along the value chain.” As designers we believe that individual product design decisions about formulation, sourcing, packaging, and branding collectively shape the food system—and have the ability to send positive ripple effects across it.

We have helped CPG clients advance on their path towards using more biodiverse ingredients through product launches that emphasize healthier and alternative ingredients. That has included working with Betterer Foods to design their RightRice brand, based on an ingredient they developed that tastes and looks like rice but is made from rice and vegetables and has more than twice the protein of regular rice; partnering with Green Onyx, an Israeli company that developed an in-home growing method to produce a tiny aquatic vegetable called khai nam; and working with Bitty Foods to find new product innovation for products made with their high-protein cricket flour.

Through our work, we’ve learned that sustainability is often not the driver when it comes to food choices—yet flavor often is. Biodiversity expands the palate for a food R&D team to think about flavors, textures, and ingredients. It also has the potential to make us healthier. The 2020 WHO report on biodiversity noted one risk factor associated with the loss of biodiversity is “increased consumption of ultra-processed foods high in energy, saturated and trans fats, sugars and salts.” Biodiversity won’t inherently make us healthier if we diversify ingredients but continue to put them into highly processed foods. It's important that R&D teams still consider nutrition as they explore a wider variety of ingredients for their products.

Product design alone isn’t enough. Companies must transform their supply chains

A 2019 study of the 50 largest food and beverage companies in the US found that, of those who disclose the data, scope 3 emissions constituted on average 89% of total reported company emissions. Failure to monitor, disclose, and transform operations to lessen these emissions poses “substantial material risk” for the industry—risk that will only increase. The IPCC Report on Climate Change and Land found that without intervention, emissions from agriculture are likely to increase 30% to 40% by 2050.

We understand the heaviness of this challenge for food companies: How do they design an entirely new system while still operating their businesses in the current system? How can they encourage regenerative farming among different stakeholders along the supply chain to reduce their carbon footprint overall?

With the Circular Economy of Food CoLab, we have been able to use collaboration and rapid prototyping to make those questions less daunting and quickly surface potential solutions. The Food CoLab is anchored by member companies Danone, Kroger, and Electrolux and builds on a network of farmers, food companies, startups, NGOs, and experts.

Since 2018, the Food CoLab has built over 30 prototypes that promote a circular food system: where waste becomes a resource, natural systems and farming communities are uplifted, and all materials realize their highest value. A major focus is reimagining how retailers and food and beverage companies source ingredients and products. Today’s commodity-centric model leads to overproduction on farms, reinforces intensive farming approaches, and shifts the risk of diversifying operations to growers. Yet supporting regenerative production and choosing lower impact, upcycled, and biodiverse ingredients has the potential to realize significant emissions reduction and greater profitability for farmers.

Together we are prototyping new procurement models that support regenerative agriculture, with input from farmers and experts in soil health, ecosystem services measurement, and agriculture innovation. We’re exploring ways that design can help food and beverage companies partner with growers to build soil health and biodiversity, equitably collect and share data, and collaborate across industries and supply chains.

While there are new business models and technologies that might help achieve goals around nature-positive food production, it’s important to acknowledge that regenerative farming is not new. The quest for efficiency and the consolidation of power in global supply chains undermines resilient farming models in the United States and many other places around the world. Many people and communities who hold this agricultural expertise have been denied access to land, capital, research, and other support—and now they face the brunt of food insecurity and climate change impacts. It's imperative to help right these wrongs as we seek to design a more climate-positive food system.

**

Addressing these food- and climate-related challenges requires we consider and involve all the players. The cost of reducing food waste, restoring biodiversity, and transforming the supply chain may impact one segment of the food value chain while another segment reaps the benefit. Indeed, one of the biggest challenges to overcome is to realign who makes decisions and who bears the cost. Figuring out how to share both the risk and the reward requires collaboration. Design is a powerful and effective tool to leverage. Human-centered design surfaces the role each player has individually, how they relate to each other, and the amount of influence and power that each has.

The design process enables us to zoom in and out between a potential solution to the challenge at hand and the larger system. It highlights the leverage points, the places where a successful intervention could touch several aspects of the problem, and allows us to quickly start prototyping. We iterate, we learn, we refine the question.

Design is relentlessly optimistic, but it’s also grounded in reality. The climate crisis has gotten where it is because we’ve taken from the earth with little concern for any consequence beyond profit. That’s by design, which means we can also fix it. The redesign can’t wait.

In 2015, we helped IKEA envision the kitchen of 2025. Thinking that far into the future was a visionary move on IKEA’s part. Now, that kind of perspective and action are a requisite.

We quickly realized the complexity of the challenge. There are hundreds of people across IDEO, and each of them make purchases on behalf of the firm in the running of our business—from video conference subscriptions to user research project expenses. With at least 80-90% of any organization’s carbon footprint coming from Scope 3 emissions (including upstream suppliers), calculating one’s carbon footprint is a significantly distributed issue.

But we knew we had to get started. We began by exploring a wide variety of emissions accounting solutions, from countless start-ups in the space to corporations like Salesforce repurposing their internal tools for emissions accounting. In our view, the ideal carbon accounting solution possessed several qualities. It would be accessible and intuitive enough for IDEOers to understand the tradeoffs they are making during everyday purchases. It would be shareable with our clients who are increasingly invested in our sustainability efforts. It would be reasonably priced for a small-to-medium sized business that intends to spend in the low six figures on carbon offsets and hopes to reduce its emissions by 7-8% per year. Most importantly, it would track emissions down to the company level to make it possible for us to vote with our dollars when considering prospective suppliers.

Unfortunately, most of the existing carbon accounting solutions haven’t met our particular set of needs. They often involve cumbersome, manual data entry. The carbon footprint is often estimated at an industry, not company, level. And when you’re hoping to use such a tool to save 7-8% of low six figures per year off your carbon offset budget, emissions accounting solutions can be disproportionately expensive. These are early days for the greenhouse gas accounting industry and, as momentum builds, so will the quality of accounting options available.

After exploring the many solutions in the market, we ultimately embraced a carbon accounting technique shared by Jane Yang, former Head of Data & Senior Policy Analyst at Basecamp, who used academic literature to convert dollars spent in a particular category into the equivalent greenhouse gas emissions. This method gave us a framework to pull data from our Enterprise Resource Planning (ERP) systems and estimate the carbon footprint of emissions-intensive categories like energy consumption, travel, and food. While this technique is not perfect, it was a critical step in better understanding which areas of our business contribute most to our global carbon footprint.

Of these areas, airline travel was having the most detrimental environmental impact. As a consulting firm with offices, clients, and research across the world, we will need to be very thoughtful in how we balance the benefits, and environmental costs, of travel. More on this in a subsequent post.

Estimating IDEO’s carbon footprint also revealed another dilemma: our ERP systems had no data on the downstream impact of our work with our clients. In speaking with experts, we received mixed messages on how to properly account for emissions outcomes from consulting firms like IDEO. On the one hand, our deliverables are often digital assets that have a negligible carbon footprint. But on the other hand, these deliverables represent strategic recommendations or new products and services that could have significant environmental implications. It’s complicated. While we have a clear ethical responsibility to set our clients and the planet up for success, we have chosen not to include the downstream impact of our client work at this time. This is a decision that we will continue to assess going forward.

With that, we turned our attention to the data on hand. Our team’s background in scientific research gave us enough familiarity with the academic literature to find relevant conversion factors for the emissions per dollar spent on different categories of expenses like travel, for example. Using this methodology, we estimated IDEO’s carbon footprint at around ~14,500 t CO2e in 2019, ~6,400 t CO2e in 2020, and ~4,950 t CO2e in 2021. The good news is that these numbers are trending in the right direction, although these improvements were largely side effects of the pandemic (as with many companies). As we plan ahead, we intend to take another look at third-party products to see if any have started to gain an edge, and we’d enjoy the opportunity to learn alongside others that are going through a similar process. Any takers?

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

For IDEO to commit to Net Zero or to prioritize emissions reductions initiatives, we first needed to understand the magnitude of our global carbon footprint and which factors were the greatest contributors.

We were at a conference that IDEO was hosting in the Bay Area. We’d just been jamming on the approach Allbirds was taking to carbon labeling its products and he was chastising me for IDEO’s lack of visible progress in addressing the climate crisis.

His feedback stung. But isn’t that what friends are for—to call you on your BS?

I went home and dug into IDEO’s growing portfolio of work in the climate space. We had written a guide to circular design with the Ellen MacArthur Foundation, hosted open innovation challenges to redesign single-use cups and plastic bags with Closed Loop Partners, explored potential scenarios around the future of regenerative food systems, and had begun coaching many of our clients towards work that directly tackled climate change and sustainability. But in poring over our work, I realized that what we were doing so well for our clients, we were failing to do for ourselves. How could we expect our clients to partner with us on such important challenges when our own house wasn’t in order?

Luckily, I wasn’t alone in my desire to catalyze IDEO’s efforts around addressing climate change. Many of my colleagues were grappling with the same questions, including IDEO Partner, Dean Malmgren. As we dug into where we could and should take action, we began to grapple with the impact of Scope 3 emissions.

What are Scope 3 emissions? Greenhouse gas (GHG) emissions are categorized into three “scopes” according to the world’s most widely used accounting standard, the GHG Corporate Protocol. Scope 1 emissions cover direct emissions from sources an organization owns or controls. Scope 2 emissions include indirect emissions associated with the purchase of electricity, heat, steam, or cooling. Scope 3 emissions, or “value chain emissions,” are the result of activities from assets not owned or controlled by an organization. These indirect emissions occur outside of an organization’s operations—think business travel, commuting, or purchased goods.

Interestingly, 80-90% of an organization's carbon footprint comes from Scope 3 emissions—or from their upstream and downstream suppliers. So in order to reduce IDEO’s carbon footprint, we would need to carefully consider the suppliers with which we work and the impact of the work IDEO delivers.

At the same time, we’ve seen many of our clients wrestling with this challenge. While comforting to see, it also gave us a second, much needed, wake up call.

If our clients—many of whom have made public Net Zero commitments—were working on the same problem, they’d quickly arrive at a similar conclusion and start considering the climate impact of their business partners to manage-down their own footprint. We immediately saw the future: IDEO was going to increasingly be put under the microscope to understand whether we were the right partner for their business.

As we socialized this realization, we quickly learned that we’d already seen a steady uptick in clients and procurement partners requesting details about IDEO’s sustainability programs (and rightly so!). Not only are climate initiatives a moral imperative, but there was also a clear case for business risk associated with languishing. We were staring that business risk straight in the face.

And so Dean, I, and many others across IDEO made the decision to “just get started.” Because it’s the right thing to do for the planet. And because it’s the necessary thing to do for our business and for our clients’ businesses.

We made a commitment for IDEO to reduce our emissions in line with the Paris Agreement and to be Net Zero effective Jan 1, 2021. We estimated our carbon footprint. We purchased voluntary carbon offsets for our 2021 emissions. We switched to renewable energy across all of our locations globally. We experimented with addressing emissions offsets in our project plans and contracts. We offered more responsible investments in our 401(k). We have been regularly meeting with our sibling firms across kyu and the broader design consulting industry to share learnings and best practices for evolving our business model for the climate era. And many of IDEO’s locations have taken on a smorgasbord of initiatives to make their operations more climate-friendly as well, from switching to LED lighting, to serving local food and composting whatever we can.

We have made progress, but we are far from perfect. There’s much more work to do. And unfortunately, we are unlikely to be perfect any time soon. That’s where you, dear readers, come into play. Over the next few weeks, we’ll share some of the work we have done and the dilemmas that we have run into along the way. We’re hoping that this is the start of many conversations, ones that not only help us consider different perspectives and approaches, but also help others get started too.

To progress, together!

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

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Those were the words that Tim Brown, co-founder and co-CEO of Allbirds, uttered to me just before the pandemic began.

As an experienced business and design leader, I have a proven track record of seeing and building the next big thing for IDEO and our clients.

When I work with executive teams, I use the tools of design, strategy, and change to help answer two questions: What’s our desired future? And how must we evolve to realize it?

I am driven by my belief in the potential for business to do well by doing good.

In addition to my work at IDEO, I am the Design Fellow of Conservation International and a core design team member for the Aspen Institute First Movers Fellowship Program. My work has been featured in The Wall Street Journal, Harvard Business Review, and The New York Times.