Unlocking the Business Value of Sustainability for Food Companies

July 24, 2024
Unlocking the Business Value of Sustainability for Food Companies

Sustainability in the food industry has transitioned from a regulatory necessity to a strategic business priority.

Companies that integrate sustainable practices into their core strategies gain significant financial benefits, improve their competitive advantage, and position themselves as leaders in the market. HowGood’s new resource, "Proving Sustainability ROI: A Food Industry Playbook for Building Internal Buy-In," helps food industry professionals demonstrate the commercial case for sustainability initiatives and secure internal support.

Summary of key insights from the playbook

  • Transforming sustainability from cost to profit center: Many food companies have previously viewed sustainability as a compliance checkbox, but if leveraged well, it can drive significant business value. Our playbook provides practical insights and real-world examples of companies that have turned sustainability into a strategic advantage, achieving cost savings and enhanced brand reputation, while future-proofing against regulatory changes.
  • Leveraging sustainability for competitive advantage: Companies that proactively integrate sustainability into their business strategies are differentiating themselves in B2B and consumer markets. By embedding sustainability into product innovation, procurement, and marketing processes, businesses can gain a competitive edge. Companies like Kerry, for example, have successfully positioned themselves as leaders in sustainable nutrition by leveraging HowGood’s sustainability data.
  • Driving decision-making with accurate data: Granular sustainability data is crucial for informed decision-making. Traditional methods like static Life Cycle Assessments (LCAs) are often resource-intensive and lack scalability. Newer tools offer end-to-end carbon accounting solutions that streamline data collection and analysis, enabling companies to make better data-driven decisions and more easily align with frameworks like the GHG Protocol and the Science-Based Targets initiative (SBTi).
  • Collaboration for better returns: Collaboration across the food value chain improves the effectiveness of sustainability initiatives. Companies that co-invest with suppliers, farmers, and other stakeholders often achieve quicker and better results. Collaborative efforts help align goals, share resources, and implement best practices.
  • Enhancing brand value and market share: With consumers and investors increasingly favoring companies that demonstrate a commitment to environmental and social responsibility, investing in transparent sustainability practices can boost brand value and market share. It’s now a key factor in attracting and retaining business, with higher ESG scores being linked to both greater shareholder returns and lower costs of capital.

Real-world examples from other global food industry leaders

  • Ingredion: Automated product carbon footprint reporting using HowGood’s Latis platform, reducing costs and resource intensity while strengthening customer relationships.
  • Chartwells Higher Education: Integrated climate labeling into their menus, increasing student demand for low-impact recipes and gaining new business.
  • Kerry: Utilized granular sustainability data for product innovation, enhancing brand reputation and driving sales.
  • Tractor Beverage Company: Launched the Organic Impact Tracker using HowGood’s data, gaining national recognition and driving marketing and sales value.

By leveraging the right tools and methodologies, these companies are not only meeting regulatory demands but also seeing significant business benefits. The key to success includes proving and effectively communicating the ROI of sustainability initiatives and securing internal buy-in.

Get the playbook

For a comprehensive guide on proving the ROI of your sustainability efforts and aligning internally on initiatives, download "Proving Sustainability ROI: A Food Industry Playbook for Building Internal Buy-In.”

Access the playbook