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ESG encompasses three pillars namely, Environmental, Social and Governance. The concept of ESG evolved in the 1990s under Corporate Sustainability movement. Today, it is more of a proactive movement and a framework that helps organizations in managing their risks and opportunities around sustainability issues. ESG reporting can be both of qualitative or quantitative nature. A company’s policies or strategies fall under the purview of qualitative reporting while quantitative reporting involves metrics and key performance indicators (KPIs) measured against set goals thereby aiding in achieving desirable outcomes. Today, the relevance and importance of ESG cannot be overstated as the customers, employees, suppliers and other stakeholders are pushing the companies to do more when it comes to sustainability and to be more transparent of their efforts towards the same. The study aims to analyze the ESG practices of 10 Food Processing companies worldwide and highlight the best practices in the sector. Annual reports / sustainability reports and the respective websites of the companies are referred to collate required information about the companies. Further, material ESG issues, challenges faced and emerging ESG trends in the sector have also been studied. Additionally, rating agencies like MSCI, CDP, Sustainalytics, DJSI etc. are referred to ascertain the ESG scores and performance of these companies against the industry benchmark. Emissions, deforestation, responsible sourcing, water stress, packaging waste, animal welfare, GMO (Genetically Modified Organisms), human rights and child labour, product safety and quality, opportunities in nutrition, community development, corporate governance, supply chain management and business ethics are some of the key ESG issues crucial for the Food Processing industries. Certifications on responsible sourcing / traceability like RSPO, voluntary initiatives on labelling and marketing, renewable energy share, using food waste to produce biofuels, animal welfare certifications and regulations on the use of antibiotics, R&D investment in nutritional products, initiatives in protecting the indigenous community’s rights, addressing child labour and human rights in procurement of ingredients like palm oil, cocoa, supply chain management by SMETA (Sedex audits), policy efforts like NDPE are some of the best practices adopted by the companies studied. In the face of the emerging technological advancements, Blockchain is one such technology that can be implemented for an accurate, faster and real time management of the supply chains. The technology could revolutionize traceability and transparency in supply chain management.
Key words: ESG, Food processing industries, Policies, Sustainability, Agri-food systems, Emerging ESG trends.
