Food sector
Why is embedding sustainability into the UK food sector important?
Defra's Food Industry Sustainability Strategy highlights the importance of sustainability in the food industry noting that the food sector accounts for approximately:
- 14% of UK business energy consumption;
- 10% of all industrial use of the public water supply;
- 10% of the industrial and commercial waste stream;
- 25% of UK HGV vehicle miles; and
- 12.5% of the UK's workforce.
Increasing the sustainability of the UK's food industry is therefore of the utmost importance in preserving the integrity of the environment and sustaining resources into the future.
Below is a summary of the food chain, illustrating the various stages of activity in the food industry. Sustainable development challenges arise within each of these stages with a variety of different factors such as consumer demand and legislation working to either encourage or demand sustainability. Follow the links to find a summary of the key issues specific to each stage of the cycle, together with case studies and tools which will help you to effectively integrate sustainability considerations into your organisation.
Primary Manufacturing Packaging Distribution Retail Consumption Production
The business case: enhancing value.
Growing consumer concern with sustainability issues means that the consideration of such issues by organisations is increasingly becoming a differentiator and a basis for reputational and competitive advantage. As a result, companies which take their social and environmental responsibilities seriously will benefit the environment whilst enhancing company and brand value. Additional benefits include efficiency increases and reduced resource consumption (for example energy and water) resulting in cost savings. Embedding sustainability in the food sector further benefits organisations through reducing their reliance on increasingly scare and expensive resources such as land, fish and water.
Being a good steward of the environment and our communities, and being an efficient and profitable business, are not mutually exclusive. In fact they are one and the same.
Lee Scott, Chief Executive, Wal-Mart (October 2005)
Key considerations
- What does sustainability mean to you?
- Would a board level sustainability be of use to your organisation?
- What is the role of formal management systems?
- What role does staff education and training play in the embedding of sustainability into your organisation?
- What is the value of engaging with customers and suppliers?
- What is the value of stakeholder engagement?
Many food sector organisations are already engaging with issues of sustainability. There are some common ingredients for success highlighted through the Accounting for Sustainability project's engagement with companies throughout the industry.
- What does sustainability mean to you? Sustainability is a complex concept and it is crucial that there is a clear understanding of what sustainability means to, and for, individual organisations.
- Would a board level sustainability be of use to your organisation? Leadership commitment and support providing a consistent and clear sustainability message is critical to ensuring that sustainability issues are considered at all levels of an organisation. To explore this area in more detail, please visit the Develop strategy pages of this website.
- What is the role of formal management systems? The creation of a formal management system is necessary to ensure consistent consideration of environmental and sustainability issues across organisations, and becomes increasingly important as organisations move through periods of rapid growth. For a deeper understanding of how formal management systems can help your organisation to effectively embed sustainability, please visit the Strategic Approach module.
- What role does staff education and training play in the embedding of sustainability into your organisation? Staff education and training facilitates clearer understanding of sustainability issues relevant to a particular organisation and helps to ensure that appropriate actions occur at all levels within an organisation. Education, training and capacity building are explored in greater detail in the Culture, Skills & People section of this website.
- What is the value of engaging with customers and suppliers? Organisations committed to embedding sustainability should be aware of their ability to influence decision making in suppliers or influence the purchasing habits of customers in order to ensure sustainability is considered throughout the food chain. Visit the Partnerships & engaging others module to find out more.
- What is the value of stakeholder engagement? Engaging with stakeholders is important for organisations as building sustainability into these relationships will improve the knowledge and skills base of the company through a clearer, shared understanding of the material sustainability issues and goals. The Partnerships & engaging others section of this website explores these issues in more detail.
Are there any key considerations we haven't included? If so, please let us know.
Challenges to overcome for the Food sector
The Accounting for Sustainability project identified some common challenges to embedding sustainability, faced by the food industry as a whole.
- A lack of metrics. A lack of numerical data makes it difficult for organisations to assess the relative significance of particular issues and prioritise them accordingly. A paucity of metrics also impairs a company's ability to measure progress and makes the reporting of sustainability issues less transparent.
- A lack of support. There is a lack of easily accessible decision-making support tools, which can assist food industry organisations in understanding their sustainability impacts. The Accounting for Sustainability project has developed a new methodology to help organisations account for sustainability issues at a decision-making level.
- A lack of leverage. Limited leverage with producers, suppliers and customers means that the proliferation of the embedding of sustainability considerations along the food chain is often limited.
- Cost horizons and competitive pressure. Implementing sustainability initiatives can require a longer term vision and longer payback period than is usual in business. Costs may increase in the short term providing competitors with a competitive advantage.
Are there challenges in this area we haven't discussed? If so, please tell us about them.