Feeding the World Sustainably: What Role for Businesses? 

Feeding the World Sustainably: What Role for Businesses? 

After Covid-19, continued shocks to the global food value chain including climate change, the war in Ukraine, and inflation have put the spotlight on the vulnerability of our food systems. These external shocks and global disruptions are reinforcing the need for sustainable and resilient food systems to ensure that European citizens and the rest of the world can rely on a guaranteed access to food. The relationship between our food and the environment is now a mainstream topic, and the impact of how we are producing and consuming food on our health and the planet now tops the global and European policy agenda. With the modern food system creating a significant impact on deforestation, greenhouse gas emissions, biodiversity, and human health, key stakeholders such as policymakers, consumers, and food companies are rethinking how we produce, source, process, and consume food. 

2023 will be a pivotal year in ensuring momentum in building more sustainable food systems. The UN Food Systems Summit (FSS) +2 Stocktaking Moment is taking place next week in Rome, while the EU’s package on the sustainable use of natural resources was published on July 5. We are still awaiting the publication of the EU Framework for Sustainable Food Systems (EU FSFS), planned for September/October 2023. The FSFS is expected to mainstream sustainability in all food-related policies and establish ways to improve the resilience of food systems as well as promote policy coherence at EU and national levels. Importantly, this proposal will offer a platform for policymakers, food manufacturers, farmers, and citizens to maintain and intensify the momentum for transformation and action to further the adaptation of food systems to climate change. As central players in the food chain, a key question is what role farmers and businesses can play in feeding the world in a healthy, equitable, and sustainable way.  

How can businesses contribute to a sustainable transition of food systems? 

In the context of these legislative proposals, initiatives, and major global summits, there are key opportunities for businesses to accelerate the development of a resilient, healthy, and nature-positive food system.  

• Move to regenerative agriculture approaches: There is an exciting opportunity to transform existing food systems into regenerative food systems. The ecosystem benefits of regenerative agriculture are plenty: from reducing greenhouse gas emissions and pollution, preserving and enhancing the livelihoods of people working in the food systems, while restoring habitat and protecting biodiversity. This practice has gained traction in the current international and EU debate leading to opportunities for food manufacturers to embrace it and make it a key component of their thought leadership on sustainability. There is currently no EU-wide overarching definition or framework on regenerative agriculture. This opens up a space for companies to ensure a supportive legal framework on regenerative agriculture is put in place by working with EU policymakers in the creation of a harmonized definition and ensure that the definition is better reflected in EU laws, such as the EU Soil Monitoring Directive or in the FSFS. 

• Broaden the range of healthier options for consumers: Empowering consumers to make informed, healthy, and sustainable food choices is a critical element of reshaping food systems and will be one of the topics of the UNFSS +2 Stocktaking Moment. Businesses are increasingly being held accountable to contribute to the shift towards more nutritious diets. The European Commission has been working on the revision of the food labeling rules under the Regulation on Food Information to Consumers, including the front-of-pack nutrition labeling and the setting of nutrient profiles. There are opportunities for businesses to provide policymakers with key proof points and examples of best practices when it comes to the delivery of fact-based, transparent consumer nutrition information (whether on the packaging directly or online). 

• Use technology to help deliver cleaner and greener food, including through controlled environment agriculture: Technological innovation is offering diverse benefits to sustainable food production that is required to keep feeding a rising global population. Food production in a controlled environment notably allows for resource-efficient, resilient, and sustainable supply chains that meet consumer demand for healthy quality produce. From vertical farming to lab-grown meat and precision fermentation, these emerging production methods ensure predictability and full control of growing conditions that can be replicated anywhere independently of the climate. Although some barriers still remain such as limited consumer support for lab-grown meat and the high energy needs of vertical farming, they do provide alternative proteins and foods to local populations with a much lower footprint and higher productivity than conventional agriculture, thereby freeing up land from agricultural pressures for the restoration of biodiversity and ecosystems. 

• Designing products for circularity: With the European Parliament scheduled to adopt its position on the Packaging and Packaging Waste Regulation (PPWR) in October, there are still opportunities for businesses to engage with EU policymakers to present their positions. While the final text of the Commission proposal is yet to be determined, we can imagine that the PPWR will further incentivize companies to limit the quantity of packaging and plastics they use and to find sustainable packaging alternatives, while still ensuring that the hygiene and safety aspects are not undermined and, in parallel, continue efforts in recycling.  

Key challenges remain for the sustainability of EU food systems 

There are a number of challenges that remain for agriculture and businesses as they work to mainstream food systems sustainability innovations.  

For farmers, the impact of climate change on farming–from stressed agricultural production to extreme and volatile weather and the climate-induced spreading of diseases–is impacting crop yields and farmers’ ability to secure decent wages. Moreover, farmers are increasingly urged by policymakers to move from conventional farming and be the driving force of the food system transformation while keeping crop yield high. With Europe’s aging farming population, European farmers are struggling with finding economically viable food production models, independent of income support mechanisms administered by the EU or Members States. 

Food processors and retailers are also a significant contributor to greenhouse gas emissions, water contamination and biodiversity loss. In parallel, consumers’ increasing environmental performance expectations are urging businesses to rapidly find viable solutions to decarbonize transport, improve the circularity of materials, and avoid food waste. At the other end of the chain, European consumers will be increasingly aware of the impact of food choices on health outcomes. This is spurring scientists and policymakers to further study the issue and to ensure appropriate regulation is in place to foster a healthier food environment.  

The number of ways that industry can contribute to improving food systems should therefore be welcomed and considered by policymakers and key stakeholders as they provide strategic responses to meeting several objectives of the EU’s current legislative sustainability landscape. While the EU’s current sustainability legislative initiatives will notably provide common quantifiable targets, collaborative and oversight mechanisms, and funding allocations, economic operators will still have to develop sustainable alternatives to decarbonize and improve the resource-efficiency of food systems.   

What steps can businesses take? 

With this new sustainability paradigm at the global and EU level being created, where the role and contribution of the private sector will be significant, businesses are in the right position to take advantage of the momentum around food systems transformation. Edelman Global Advisory (EGA) has included some suggestions below: 

• Carefully analyze the impact of legislative and non-legislative initiatives on your business: Businesses need to assess the conclusions of the UN FSS +2 Stocktaking Moment as well as study the provisions of the EU’s package on the sustainable use of natural resources and the upcoming FSFS to determine what the risks and opportunities will be for their business.  

• Monitor the debate and anticipate relevant developments: We recommend businesses anticipate the upcoming initiatives and be ready to rapidly adapt in the face of changing regulations that might challenge their license to operate. 

• Define your position on these issues: Depending on the business impact of these conclusions and legislative files, businesses should start preparing their formal position for communication to policymakers and key opinion leaders. This can help businesses be seen as trusted partners to policymakers and be seen as leading in the food systems transformation debate.  

• Identifying policy opportunities to help foster stakeholder relationships: We recommend businesses use the upcoming legislative initiatives that are most relevant to them to connect with key stakeholders. 

• Consider potential alliances: Identify who else is active in the debate and consider a collaboration or partnership to help amplify your key messages.  

This piece was authored by Mikaela d’Angelo, Senior Programme Manager, EGA Brussels and Clément Cardon, Senior Analyst, EGA Brussels