On 6 November 2023, during the Food Market and Trade Forum, we participated in a panel discussion on the challenges and benefits of implementing sustainability strategies by companies in the food production sector.
During the panel ‘#green trends: ESG in the food industry: animal welfare, climate, consumer’, we discussed whether the idea of corporate sustainability is only about obligations, e.g. such as reporting requirements, or also about the potential for food companies. During the debate, the Association for Sustainable Food and Agriculture in Poland was represented by itsDirector, Małgorzata Bojańczyk.
Market leaders in the agri-food sector in Poland have been applying sustainability principles for many years, implementing internal policies on quality standards and origin of raw materials, and working to reduce their environmental footprint and lower Scope 1 and 2 emissions. However, a complete ESG strategy must also include the supply chain, i.e. primarily the suppliers of agricultural produce. Therefore, the main sustainability trend in the food industry today is to work more closely with suppliers to better measure and reduce the Scope 3 carbon footprint.
As many as 25% of the largest food companies in Poland are leaders1 , for whom sustainability strategy is an integral part of their business strategy. They are setting the directions for change, mainly in the area of the supply chain, decarbonisation, sustainable agriculture or implementation of regenerative practices. This is why collaboration with suppliers is so important for the food sector. We see that this process is now gaining momentum. Agricultural producers are receiving more and more support from agricultural buyers, for example in implementing regenerative practices or preparing for sustainable agriculture certification.
– said Malgorzata Bojańczyk.
Not only are market leaders helping to prepare for certification, but they are also taking the initiative to check the standards of their suppliers by including social and environmental clauses in their internal purchasing policies or by carrying out farm audits. The transition to sustainable food production is a complex process that can take many years and requires adequate knowledge and training of suppliers. This is especially true as more environmentally and climate-friendly agricultural production becomes not only good practice but also a legal requirement. New regulations, numerous challenges related to production standards and the introduction of legislation increase the need for farmers and growers to improve their knowledge and skills.
Our members are companies that are leading the way in implementing sustainability principles. They have been applying their own standards, investing in environmental solutions and working closely with suppliers for many years. We understand the role of education in the transition to sustainable agricultural production. That is why we are developing our own tools to provide access to reliable and up-to-date information on sustainable agriculture, such as the Sustainable Agriculture Academy and Guide Training and workshops organised by member companies for suppliers and agronomic consultants are also part of this effort.
– mówiła Małgorzata Bojańczyk.
However, the pace of implementing ESG-driven change is different. Large, multinational companies have more capacity to define and implement sustainability strategies than smaller companies or those without global guidelines. These companies are often just starting to integrate ESG principles into their business strategies. Their approach is gradually beginning to shift towards treating sustainability as an investment rather than a cost. According to the study ‘Turning Momentum in the Food Industry’ conducted by Accenture Poland and the Association for Sustainable Food and Agriculture in Poland, it shows that three times as many food companies in Poland that have implemented a sustainability strategy have seen an increase in operating profit than companies that have not. It is therefore important that new requirements for the food and agriculture sector are accompanied by appropriate incentives and tools to support the process of transforming Polish agriculture towards sustainability.
The Food Market and Trade Forum is one of the largest and most prestigious industry events that brings together leading producers, suppliers and executives from the trade, food and HoReCa sectors in one place each year. During the year, the Forum hosted seventeen substantive debates and featured over one hundred and twenty speakers.
1. Source: ‘Turning Point in the Food Industry’ study, Accenture Poland, Association for Sustainable Food and Agriculture in Poland, 2022.