5 simple steps to drive sustainability and ESG within your agri-food business

Client feedback seems to be consistent when thinking about sustainability in the Agri-Food sector, namely it can often be overwhelming for businesses just setting out on this journey, especially when implementing new practices for the first time. This is put down to sustainability affecting many parts of the business and numerous stakeholders, which in turn leads to a wide range of possible actions that can be taken. This complexity can create inertia and hinder progress.

However, strong progress and execution on sustainability can bring many business benefits from improved resilience (e.g. supply chain risk mitigation, regulatory changes) and operational cost savings (e.g. energy efficiency, waste reduction) to creating a competitive edge. For some, the sustainability credentials of their business have become a key non-price lever to win new business in the sector.

With this in mind, we have outlined 5 simple steps that leadership teams could take to drive this agenda forward within their own organisation. Each of these steps has been inspired by those business we work closely with, and we consider to be market leaders in sustainability.

As the old proverb states, “a journey of a thousand miles begins with a single step” and this is no different for those starting out on their own sustainability journey. We would encourage all businesses to start now even if it is only in a small way. Waiting for the market to coalesce around certain goals or harmonise on key metrics should not stand in the way of implementing improvements now.

In considering what goals to pursue, leadership teams should seek alignment across the supply chain, with an emphasis on understanding the end-consumer, as it is them, through the medium of the food retailer or food service provider, that sets the tone of the chain.

What goals are they trying to achieve and why? What actions can you take to support these goals and add value? By understanding this you can begin to develop a unified sustainability strategy with the key players in your chain by directly involving them in the planning process.

Transparency is also important and businesses should provide clear and accurate information to stakeholders about their sustainability measures and progress.

We come across many businesses that are actively embracing more sustainable business practices, but these are not being widely shared. By outlining these goals, not only can you track progress but key stakeholders (such as customers, suppliers and employees) who really value this information, can see this which creates buy-in and shared commitment.

We have seen great success from businesses that have explored collaboration, either across their individual supply chains or with other like-minded businesses on a similar journey. Sharing best practice and proven strategies helps accelerate progress and avoid common pitfalls made through trial and error. The recent news that Arla and Muller are going to partner with Tesco to reduce on-farm emissions by 30% by 2030 is a great example of two competitors working together towards a common industry goal. This partnership acts as a beacon for other businesses which will be transformational for the industry.

Finally, consider the use of external accreditations as these can be powerful tools to challenge the business and drive continuous improvement. Accreditations keep the business accountable as the process is thorough, rigorous, and systematic. It also helps sense check current goals and targets set i.e. are they stretching enough and given their consistency, how do they compare to others?

Sustainability in Agri-Food does not have to be complex and we would encourage leadership teams to carefully consider the above steps within their own business and be honest about where they are on this journey and current direction of travel. A holistic approach to sustainability could enable a business to better navigate an Agri-Food landscape which is rapidly evolving because of a myriad of external factors from climate change impacts to shifting consumer trends and new technologies. The pace of this topic will only increase over time and for those that haven’t yet started on this journey, now is the time to take that first step.