Nearly 76% of respondents reported some level of confidence in their sustainability roadmaps and ability to achieve environmental goals by 2030, but action plans are missing critical components for success, according to a survey released by Quantis, a BCG company.
Portfolio redesign, regenerative agriculture and plant-based initiatives were cited as the three lowest priorities for the next year, despite having greatest potential for radical transformation. Clear action plans are the second most important success factor (38%), and 26% of respondents still view them as a challenge.
“Though food and beverage sector leaders are making progress, the path to alignment with planetary boundaries and resilience will require a shift from sustainability in a silo to sustainability embedded across business functions,” says Charlotte Bande, global food and beverage lead for Quantis. “Estimates show that food and beverage organizations could lose up to 26% of their value if they don’t act quickly, but much still stands in the way of doing so effectively and efficiently. Securing more budget and driving impactful transformation will require collaboration, both throughout departments internally and with strategic partners across the value chain.”
Key takeaways:
- The report surveyed more than 600 professionals and C-level executives across multiple business functions in the food and beverage industry. Respondents work in large companies within retail, wholesale, consumer packaged goods, commodities and agriculture subsectors of the food and beverage industry.
- 42% of respondents cite its complexities as the largest barrier to success.
- Cited as the second largest barrier to success, allocating funds remains a struggle - the average percentage of annual budget allocated to reducing environmental impact is just 12.54 across departments.
- Company commitment and culture set by leadership were the largest drivers of sustainable practices across departments, but the two biggest barriers to success (supply chain and budget allocation) sit largely outside their control.
- Most respondents have tools and budget in place to make packaging more sustainable, and 62% cited it as a top priority for the next year.
- Even in the current economic climate, 100% of marketing respondents have seen changes in consumer behavior regarding sustainable purchasing habits. More than half cite that their customers are more interested in sustainable products and willing to spend more to get them.
