Interview
ESG in the Food & Beverage and Alcohol & Tobacco Sectors
- Companies plan to address ESG issues within a 12 to 18-month window based on data analysis and roadmap planning.
- Organizations are expected to identify potential ESG issues emerging over a two to three-year period.
- Public commitments and data indicate companies will continue their current path of reducing plastics with little room for deviation.
- Investors anticipate further progress in agricultural practices and water stewardship, despite current data strength being lower than that for emissions.
- Health and wellness product areas, including smaller portions, lower sugar, and smoke-free options, are projected to experience significant growth over the next few years due to consumer demand.
- Pressure from consumers, stakeholders, and regulators is likely to increase regarding the linkage of executive compensation to ESG performance, given that fewer than 25% of companies currently do so.
- Stakeholders and regulators are expected to push for improvements in processing and distribution systems to reduce food waste, particularly at the consumer end.
- Companies face critical questions regarding their approach to Scope 3 emissions and their adoption of science-based targets to limit global warming to below two degrees.
- Research covering additional sectors is expected to include emissions, environmental impact, waste, and executive compensation as key topics.