Sustainability has become a crucial aspect of corporate social responsibility in the food industry, evolving from a good corporate citizenship practice to a driver of business strategy. In recent years, consumer demand for sustainably sourced food products has increased significantly, making it an important decision-making consideration for companies. Consumers are no longer satisfied with simply knowing how their food is sourced; they want to be involved in the decision-making process of what they consume.
According to a 2018 survey conducted by the International Food Information Council Foundation (IFIC), 59% of consumers surveyed said it was important that the foods they purchased and consumed be produced in a sustainable way, up from 50% in 2017. This consumer awareness is also translating into purchasing decisions, with 64% of U.S. households buying sustainable products in 2018, up 4 percentage points from the previous year, according to Nielsen.
Companies are also benefiting financially from operating sustainably. Research conducted earlier this year by Nielsen and Nielsen Product Insider showed that the highest sales growth in retail was coming from products derived from sustainable farming at 14%, those with social responsibility claims at 8%, and those from sustainable resource management at 6%.
Unilever, for example, has experienced significant growth from its sustainable brands, which include Lipton, Hellmann’s, and Knorr. In 2017, these brands grew 46% faster than the rest of its business and delivered 70% of its turnover growth. Unilever’s Sustainable Living Plan, launched in 2010, aims to decouple the company’s growth from its environmental impact while expanding its positive social impact.
Transparency is a primary concern for food consumers, particularly when it comes to how products are manufactured and what is in them. According to a report by The Hartman Group, 69% of consumers would like companies’ sustainability practices to be more publicly visible. Laurie Demeritt, CEO of The Hartman Group, explains that “openness, honesty, and transparency are becoming the currency of trust for consumers who care about sustainability.”
Consumers want to see corporate responsibility efforts that indicate an authentic commitment to ethical action, especially on packaging. Transparency is particularly important for retailers, whom consumers view as arbiters of sustainability standards and curators of sustainable products.
Companies are making a difference by implementing sustainable practices, creating innovative products, and educating consumers about the benefits of sustainability. Cargill, for example, has established a protein technical sustainability team to address sustainable sourcing in its supply chain. The team works with farmers, customers, and industry partners to create sustainable solutions that benefit everyone in the supply chain. By doing so, Cargill is not only promoting sustainable practices but also improving its brand image and reputation.
Takeaway
As the food industry continues to evolve, sustainability has emerged as a critical component of corporate social responsibility. Companies that prioritize sustainable practices are not only meeting the growing demand from consumers for environmentally friendly products but also positioning themselves for long-term success by generating increased revenue and market value.
However, the benefits of sustainability in the food industry extend far beyond financial gain. By implementing sustainable practices, companies are taking a proactive stance in preserving the environment, conserving natural resources, and mitigating climate change. This is crucial not only for the present but also for the future generations.
Moreover, sustainable practices are no longer just a marketing tool, but an essential part of a company’s operations, driving innovation and collaboration across supply chains. By working with farmers, processors, distributors, and other stakeholders, companies are driving sustainability initiatives forward and promoting a more sustainable food system.
In addition, consumers are increasingly calling for transparency in the food industry, demanding to know the origin and composition of their food. By embracing sustainability and transparency, companies can build trust with consumers and demonstrate their commitment to ethical practices.
In conclusion, sustainability in the food industry is a crucial aspect of corporate social responsibility that offers numerous benefits to companies, consumers, and the environment. Companies that prioritize sustainable practices are making a significant impact in creating a more sustainable future, promoting innovation, and building trust with consumers. As the industry continues to evolve, it is essential to continue promoting sustainable practices and educating consumers about the importance of sustainability in food production.
