How food and beverage manufacturers can meet sustainability goals

Sam Miles Date published: May 29, 24 Last updated: May 30, 24

In the 2024 Ideagen Food industry audit report, ecological risks had a far larger presence than previous editions. While commodity inflation and supply chain issues have a strong presence in the top 10 issues mentioned, both challenges are no doubt influenced by environmental factors. We also saw growth in other areas including weather and climate change being mentioned by 18% and 14% of businesses respectively.

It’s not a surprise to see a growth in concern for sustainability and ESG responsibilities, and it’s something we would naturally expect to continue to grow over time as we get closer to the net zero by 2050 goals as set by the UN.

Why are sustainability goals such a focus for food and beverage manufacturers? 

The lens of sustainability failings often falls heavily on the food and beverage industry. The manufacturing industry as a whole is one of the largest contributors to greenhouse gas emissions worldwide. The manufacture of food represents the largest division and accounted for 21% of total manufacturers’ sales in 2022 in the UK. According to the UN, food systems account for over one-third of global greenhouse gas emissions.

While food and beverage manufacturing is a leading cause of climate change, climate change is more prominently impacting food and beverage production than many other industries. Food, quite literally, lives or dies by the health of its environment. It’s perhaps the industry most at the whim of the weather. Extreme weather like droughts and floods has impacted the production of vegetables and other crops. It is a similarly challenging situation for livestock. Feedstock yields have dropped, with every 1 degree Celsius increase in temperature resulting in a growth slowdown of 7%. Extreme weather also impacts the animals themselves, increasing heat stress and the likelihood of disease and demanding more water to keep animals cool.

2024 Food industry audit report

Click here to access the 2024 Food industry audit report in full and discover the top 10 risks to food and beverage manufacturers and retailers.

Access now

ESG reporting responsibilities 

The increased presence of sustainability concerns for food and beverage manufacturers is no doubt influenced by the introduction of new standards and regulations that mandate ESG reporting. IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) were both introduced in 2023 by the International Sustainability Standards Board (ISSB) and become effective for periods beginning on or after January 1, 2024.

The ISSB itself was founded after COP26 in Glasgow in 2021. IFRS S1 and S2 were introduced to improve the consistency of sustainability reporting across the globe and have been used as the basis of national based standards, including the UK’s Sustainability Disclosure Standards (SDS).

The EU’s Corporate Sustainability Reporting Directive (CSRD) is another similar legislation that mandates organizations to disclose information on their environmental and social impacts. As part of this directive, organizations with over 500 employees will need to start reporting on sustainability as of January 1, 2024. Organizations with 250 employees and a turnover of €40 million will be required to report as of January 1, 2025, and listed SMEs will need to start reporting as of January 1, 2026.

Scope 3 emissions 

One area of sustainability that food and beverage manufacturers must be particularly mindful of is scope 3 emissions. Scope 3 emissions are those indirect emissions that are produced by your supply chain. Scope 3 emissions account for 70% of a business’ carbon footprint, but until recently, weren’t accounted for in ESG reporting. That has changed with the introduction of IFRS 2 and standards like ISO 14083:2023.

For the largest food and beverage manufacturers, it will be an immediate priority to understand and tackle, with supply chain visibility being an absolutely essential requirement.

How does quality management contribute to sustainability goals?

Whether ESG reporting and sustainability is your immediate priority, as it will be for the largest organizations, or if it’s something in your rearview mirror but getting ever closer for the time being, deploying your quality management system to get a complete understanding of your own environmental impact plus the impact of your supply chain, is absolutely imperative. Here are the key components of quality management that will act as the backbone for your sustainability efforts:

Supply chain transparency

This is a vital element for any food and beverage manufacturer that extends beyond sustainability. A quality management system gives you that ability to monitor suppliers, identify potential risks and ensure compliance. If issues are flagged, or you find suppliers who are falling short of your sustainability criteria, you have the capability to request improvement or find alternative, more ethically responsible suppliers.

Resource optimization and continuous improvement

A large part of improving your sustainability will come down to improving resource usage. This might be through reducing water consumption, implementing waste monitoring and recycling programs or improving energy efficiency. You will need to utilize your quality management system to identify those areas, through asset management and internal audits. Effective reporting is another key element, and using those performance metrics and feedback mechanisms is crucial to enabling continuous improvement, driving down inefficiencies and facilitating data-driven decision making for achieving short and long-term ESG goals.

Discover your solution for quality and sustainability 

Ideagen Quality Management is the tool you need to achieve your sustainability goals. Don’t just take our word for it, see Ideagen in action yourself with an instant personalized demo or a guided tour with our expert team. Personalize a demo to your needs today, or simply gather more information on the ways Ideagen’s software solutions can help you unlock a greater commitment to sustainability.

Find out more about Ideagen Quality Management

Select your demo option today to see a personalized walkthrough of how Ideagen’s software solutions can support your sustainability goals.

Watch a demo