With 75% of food and beverage firms prioritising sustainability, a comprehensive supply chain overhaul is needed to ensure goals are met, a new report by DNV has stated.
The independent assurance and risk management provider’s report, The Future of Sustainable Food Supply Chains: Spotlight on Europe’s Food and Beverage Industry, highlights an ‘urgent need’ for supply chains to be transformed to meet global challenges such as climate change, regulatory shifts, and evolving consumer expectations.
With food systems accounting for a third of global carbon emissions, the report identifies critical areas of focus in order for firms to balance environmental responsibility, cost-efficiency, and compliance with increasingly stringent regulations.
‘Significant transformation’
“The food and beverage industry faces an era of significant transformation as sustainability within the entire supply chain becomes an urgent priority,” commented Geir Fuglerud, CEO – Supply Chain & Product Assurance at DNV.
“Global disruptions, including the COVID-19 pandemic, geopolitical tensions, and the growing impact of climate change, have intensified existing challenges while introducing new complexities to the industry’s supply chains. This report is a blueprint for companies to address the challenges ahead, leveraging digital innovation to balance cost-efficiency and environmental responsibility.”
Areas of focus
Three key focus areas in the report include:
- Digital transformation as a catalyst. While the adoption of digital tools such as supply chain traceability, connected product passports and supply chain risk management platforms are gaining momentum, the food and beverage sector is lagging behind when it comes to integrating key technologies. A focus on verifiable and trusted data, as well as ease of use across all supply chain actors, will be essential to enable transparency and cost-effective compliance.
- Evolving regulatory landscape. New EU directives, including the Corporate Sustainability Due Diligence Directive (CSDDD) and the Packaging Waste Directive, require firms to address sustainability comprehensively.
- Consumer and retailer influence. Today’s consumer is increasingly informed, demanding sustainable and transparent food production practices. In some instances, they are also willing to pay a premium for products aligned with their values. For food and beverage firms, collaboration with retailers will be important to meet these expectations.
The report also notes that while digital transformation will be ‘crucial’ for developing greener supply chains, it needs to be coupled with robust methodologies for data collection and verification in order to be effective.
‘As climate change accelerates and global populations grow, the food and beverage sector must embrace a holistic, technology-driven approach to sustainability,’ DNV noted. ‘Collaboration across the supply chain, bolstered by strategic partnerships and adherence to rigorous standards, will be essential in shaping a more sustainable and efficient future.’ Read more here.
