Apr 25, 2025 | Greg Wood

From Factory to Fork – Why ESG matters to Food & Drink Manufacturers

It is estimated that in the UK, 18% of Food Waste occurs during the manufacturing stage. Producers and manufacturers therefore have a responsibility to take action to reduce their environmental impact wherever possible.

For organisations operating in the Food and Drink Production sector, ESG is more than just a buzzword. It is increasingly becoming a commercial differentiator, that consumers, investors, and suppliers actively seek out.

Investors

Investors play a pivotal role in shaping the future of the food and drink industry, providing the capital needed to drive innovation, scale operations, and respond to shifting consumer demands.

Increasingly, investment decisions are being guided by ESG performance. A 2020 report from Gartner found that 85% of investors considered ESG in their investments. Similarly, a report from Bain & Co found that 93% of investors said they would walk away from an investment if it posed an ESG concern. When it comes to raising capital, ESG is no longer a nice to have, it is an essential.

Consumers

Consumers have grown increasingly conscious of the social and environmental impact of their spending. They realise that the greatest impact they can have as individuals, is in the purchase decisions they make.

PWC found that 80% of consumers are more likely to buy from companies who are acting on their environmental impacts. Not only that, they also found 80% of consumers were willing to pay up to 9.7% more for sustainably sourced or produced goods.

Supply Chain

Organisations are increasingly pressured to ensure that their supply chain is compliant with, and responsive to changing demands of both investors and consumers. A 2023 study found that 90% of those surveyed would only do business with ESG-compliant suppliers.

Challenges

The Food & Drink Manufacturing Sector faces a range of unique ESG challenges. The scale of the industry; complex supply chains that stretch from production to retail; and the overwhelming variety of products available means that accurately reporting Scope 3 GHG emissions can be incredibly difficult.

Additionally, it is estimated that one third of all food produced is wasted and that the food production accounts for between 8 – 10% of all Global Greenhouse Gas emissions. Some estimates attribute as much 26% of all global greenhouse gas emissions to Food Production.

How SustainIQ can help

SustainIQ is already helping leading Food & Drink Manufacturing organisations to measure, monitor, and analyse their ESG performance. Automated supplier forms, and integrations with Third-party software make it easy for organisations to accurate gather Scope 3 emissions data from their supply-chain.

Learn more

SustainIQ is an integrated ESG reporting platform that unifies all aspects of an organisation’s sustainability activities within a single environment. Businesses use SustainIQ to measure, monitor, and report on their social, economic, and environmental performance in real time.

Our software saves sustainability professionals from wasting time chasing teams, sites, and regions for reporting information. No more unreadable spreadsheets, awkward (and incorrect) calculations, and endless report building. With SustainIQ, simply pull, input or bulk upload data and get access to your custom-built report at touch of a button.

To learn more about SustainIQ or to arrange a demo click here.


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