3 ways food and beverage companies are influencing sustainability metrics
By Jamie Feltes, Key Equipment Finance
Corporations eagerly embrace sustainability and sustainable manufacturing processes, which have become integral to corporate strategy for most businesses today.
Consumers and investors feel better about buying and investing in companies that use environmentally responsible measures in bringing their products to market. According to a recent AFLAC study, 55% of consumers believe it is important for companies to take a stand on key social, environmental, and political issues, and 73% of investors agree that a company’s efforts to help society and the environment contribute positively to the return on shareholder investment.
Contribution of the circular economy. The Coca-Cola Company recently changed its manufacturing process to help the circular economy of plastic packaging. The company switched Sprite bottles from green to polyethylene terephthalate (PET) plastic. This move is expected to increase the likelihood of bottles being recycled into new beverage bottles. Coca-Cola also plans to produce DASANI water in 100% recycled plastic bottles, the effort is expected to save more than 20 million pounds of plastic vs. 2019, and reduce more than 25,000 metric tons of greenhouse gas emissions.
Food upcycling is a growing practice being adopted by food and beverage companies looking to improve their sustainability practices. Reducing food waste is a primary goal for consumers, and they prefer to buy from companies that work to reduce food waste in all aspects of transporting products to market, according to Innova Market Insights research. Consider this example:
Energy efficiency. In addition to upcycling food, Del Monte Foods and Pulp Pantry are conserving energy with their practices. Nestle Purina, one of the top five food and beverage companies in the world, recently upgraded its LED lighting technology as a way to better manage energy use. The upgrade program, supported by efficiency incentives from the National Grid, will increase productivity, create a more sustainable work environment and reduce greenhouse gas emissions by 1,100 tons, roughly equivalent to the annual energy consumption of 114 US homes. Nestle Purina is reducing greenhouse gas emissions by 4.4 million tons by 2021, according to today’s sustainability report.
These examples – just a few of the ways food and beverage companies are leading the way in adopting sustainable practices – start with a strategic plan. Companies must consider many factors when developing a sustainability strategy: brand/value, energy efficiency and cost drivers, stakeholder management, risk management, goals, consumer demands, and financing new business opportunities, just to name a few. For those who manage even some of these functions for an organization, creating a sustainability strategy can seem overwhelming.
When devising a sustainability strategy, practicality is paramount. A realistic plan for implementation is as important as the strategy itself. Start by defining the organization’s sustainability goals. Then identify any potential problems and determine the human resources and equipment needed to succeed. Which decision makers and workers are most likely to do the job—and how do they do it? Who will manage the project? How will the work be carried out? How will you measure and communicate results, both internally and externally?
Engagement is an important element in a sustainability strategy. Is a top-down approach or a grassroots campaign best for your organization? Or perhaps a task force commitment? Some organizations have found a variety of successful approaches.
But resiliency is the key to stay the course. Like many organizational strategies, sustainability initiatives require dedication, if not tenacity, to implement and achieve success.
Given today’s business challenges, leaders are overwhelmed with the thought of creating, leading, and managing sustainability strategies. But when it comes to sustainability, the worst decision is indecision. No action means missing the opportunity to collect data, learn, and improve the opportunity to grow your business through being good stewards of the Earth.
Develop a roadmap to achieving sustainability goals
IBM is a key example of a company that takes a strategic sustainability plan from idea to successful implementation. Companies go green to save “Green.” From 1990 to 2020, the company saved 9.8 million MWh of energy (avoiding 4.6 million metric tons of CO2 emissions) and saved $661 million in the process. Over decades, they have built a tremendous amount of experience by implementing more than 1,400+ projects. The by-products of these projects have helped them address a wide range of sustainability metrics. Instances like this show how powerful action can be for our Earth and companies.
Energy efficiency is often at the heart of sustainability initiatives for many types of organizations. In fact, organizations large and small set many energy efficiency goals to reflect their business operations. Why? Operational initiatives usually offer the most opportunities to positively impact climate goals. While some industries inherently spend more (and thus can save more), all types of industries have energy expenses, and the approach is unique to each type of industry and company.
Regardless of the approach, studies show that energy efficiency is essential to meeting widely accepted environmental metrics. The food and beverage sector is one of the top consumers of fuel and electricity in US manufacturing. According to the American Council for Energy Efficiency Economics (ACEEE), companies can incorporate energy efficiency into their strategies by:
The sustainability strategy should also detail the path to acquiring the necessary equipment to implement the plan and a detailed analysis of purchase options, including financing to mill the large initial cash investment. A good lender should evaluate the details of all financing options and evaluate Return on Investment (ROI). Fixed rates and speed locks are also important considerations, especially in our current environment.
Whether an organization starts with energy efficiency or other priorities, beware of the “paralysis by analysis” trap. Take action now to benefit from data and experience. And try to get comfortable and uncomfortable!
By creating a strategy that addresses various aspects of sustainability, companies create opportunities to save big, enjoy new revenue streams and engage stakeholders—all while reducing their carbon footprint.
Jamie Feltes is vice president and clean energy account manager for Key Equipment Finance, where, for more than a decade, he has provided comprehensive industry expertise to companies seeking clean energy strategic plans and solutions. He can be reached at [email protected]
Why is sustainability important in food and beverage?
In order to maintain business continuity and remain competitive in the future, a sustainability strategy is essential for food and beverage companies, which allows them to operate more efficiently and overcome climate and other environmental risks in their business.
Why is a sustainable food system important? Furthermore, a sustainable food system must increase agricultural productivity, improve climate resilience, and reduce greenhouse gas emissions for agriculture and land use change. Food systems overlap and operate at local, regional, national, and global levels.
What is food and beverage sustainability?
What is Involved in Sustainability for F&B Companies? Sustainability is often interpreted as only relating to a company’s environmental footprint, but issues that include: Reducing waste. Cut pollution and emissions. Minimize the impact on the environment.
What is meant by the sustainability of food?
Sustainable food aims to avoid damaging or wasting natural resources. It minimizes the contribution to climate change because it often means eating more local food that is not transported too far.
What are the 3 principle of sustainability?
Sustainability is often represented diagrammatically. The figures at the top of this page show that there are three pillars of sustainability â economic resilience, environmental protection and social justice.
What is sustainability and why is it important?
Sustainability is the ability to exist and thrive without depleting natural resources for the future. The United Nations defined sustainable development in the Brundtland Report as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Why is a sustainability important?
Sustainability is important for several reasons including: Environmental Quality â To have a healthy community, we need clean air, natural resources, and a non-toxic environment. Growth â UNTHSC enrollment continues to grow, so we need more resources such as energy, water, and space.
What is meant by sustainability and why is it important?
Sustainability consists of meeting the needs of the current generation without compromising the needs of future generations, while ensuring a balance between economic growth, caring for the environment and social welfare.
What are the benefits of food sustainability?
Advantages of SUSTAINABLE FOOD SYSTEMS Sustainable food production will prevent deforestation by dedicating less land to livestock. A more sustainable diet would prevent 11 million premature deaths, according to a 2019 study published in the scientific journal The Lancet.
Why is sustainability important in food service?
To preserve products and maintain customer loyalty, the food service industry has traditionally prioritized inventory, labor management, and atmosphere over sustainability (ie, utilities, waste and water use, and costs).
What are the benefits of sustainable food?
ADVANTAGES OF SUSTAINABLE FOOD SYSTEMS
- Action against climate change. …
- Protect the forest. …
- Improve health and contribute to food security. …
- Encourage the survival of endangered species. …
- Protect water sources.
What is the idea of sustainability?
What is sustainability? Sustainability means meeting our own needs without compromising the ability of future generations to meet their own needs. In addition to natural resources, we also need social and economic resources. Sustainability is not just about the environment.
What are the benefits of sustainability? Five Benefits of Embracing Sustainability and Green Manufacturing
- Reduce Energy-Related Costs. Energy and water costs are a major concern for producers. …
- Attract New Customers and Increase Sales. …
- Tax Incentives. …
- Improve Workforce Morale and Innovation. …
- Social Impact.
What is sustainability and why it is important?
Sustainability is the ability to exist and thrive without depleting natural resources for the future. The United Nations defined sustainable development in the Brundtland Report as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
What is a simple definition of sustainability?
Sustainability consists of meeting the needs of the current generation without compromising the needs of future generations, while ensuring a balance between economic growth, caring for the environment and social welfare.
What is environment sustainability and why is it so important to our world?
According to the United Nations Environment Program, environmental sustainability includes making life choices that ensure the same, if not better, way of life for future generations. Environmental sustainability aims to improve the quality of human life without putting unnecessary strain on the ecosystems that support the earth.
Why is living sustainably important?
When communities practice sustainable living, they help improve the quality of the environment. Maintaining a sustainable lifestyle helps reduce your carbon footprint. As communities pursue sustainability, air pollution decreases. Clean air is key to a healthy community.
Why do we need to be more sustainable?
Why we promote sustainable living. Our planet can only produce a limited number of resources â from food, to water â and can only sustain a certain level of greenhouse gas emissions to stay healthy. We have only one Earth and are highly dependent on it for our survival and well-being.
Why is living sustainably so important?
Sustainability improves our quality of life, protects our ecosystems and preserves natural resources for future generations. In the corporate world, sustainability is associated with a holistic approach to the organization, taking into account everything, from manufacturing to logistics to customer service.
Why is sustainability important to the environment?
Why is sustainability important? Environmental sustainability is important because of how much energy, food and man-made resources we use every day. Rapid population growth leads to increased agriculture and manufacturing, leading to more greenhouse gas emissions, unsustainable energy use, and deforestation.
How does sustainability relate to the environment?
Environmental sustainability is responsibly interacting with the planet to preserve natural resources and not jeopardize the ability of future generations to meet their needs.
What is sustainability and why is it important?
Sustainability is a word we often hear, but don’t often understand its meaning. This includes how natural systems work, continue to be diverse, and produce everything necessary for the environment to remain balanced now and in the future.
What is sustainable development in hospitality industry?
The adoption of sustainable development (SD) practices in the hospitality industry is intended to limit the negative impact of this industry’s activities on the natural and social environment, and increase its benefits for the host population.
What is Sustainable Development in the Tourism Industry? “Tourism that takes full account of current and future economic, social and environmental impacts, addresses the needs of visitors, industry, the environment and the host community”
What is sustainable management in hospitality management?
The Sustainable Hospitality Management major develops skills and understanding in hospitality business management that incorporates planet, people, profit, ethics, and equity. Concentration: Sustainable Hotel, Resort and Event Management. Sustainable Ecotourism Management.
What is sustainability within the hospitality industry?
Sustainability â using resources mindfully so that they do not run out or deteriorate â plays an important role in the hospitality industry. The success of the hospitality organization depends on maintaining the natural and cultural attractions that encourage tourists to visit their destination. Not doing so has consequences.
Why is sustainability important in hospitality industry?
Sustainable practices in hotels have a positive impact on customer experience and the likelihood of them returning. Going green leads to better loyalty and word-of-mouth marketing, and higher customer satisfaction.
Why is Sustainable development important in hospitality industry?
Sustainable practices in hotels have a positive impact on customer experience and the likelihood of them returning. Going green leads to better loyalty and word-of-mouth marketing, and higher customer satisfaction.
What is sustainability and how does it relate to the hospitality industry?
Sustainability â using resources mindfully so that they do not run out or deteriorate â plays an important role in the hospitality industry. The success of the hospitality organization depends on maintaining the natural and cultural attractions that encourage tourists to visit their destination. Not doing so has consequences.
What is sustainable tourism and why is it important in the hospitality and tourism industry?
Sustainable tourism can be defined as a type of tourism that has more benefits than negative impacts, especially those related to the environment, economy and society. A truly sustainable and responsible tourism should make a better destination for people to live as well as visit.
What is meant by Sustainable development?
“Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.”
What do you mean by sustainable development explain with example?
Sustainable development meaning Using recycled materials or renewable resources when building is an example of sustainable development. Building new communities in previously undeveloped areas without destroying ecosystems or harming the environment is an example of sustainable development. noun
What is sustainability in food and beverage?
Sustainability is a balance between economic, ecological and social issues. Environmental protection is a major topic in the food and beverage industry: Already 53 percent of Americans prefer to buy environmentally friendly products.
What is an example of sustainability in food? Organic fruits and vegetables Farming using organic methods prevents the use of pesticides and chemical fertilizers â is important for long-term soil health. In addition, source locally and in season wherever possible to reduce food miles and minimize the environmental impact of your products.
What does sustainability mean in food?
Sustainable eating involves choosing foods that are healthy for the body and the environment. This means foods that provide a balanced diet for the body but also facilitate environmental conservation.
What does sustainability mean in food and drinks?
What Is Sustainability? Food sustainability means producing food by protecting the environment, using natural resources efficiently, ensuring that farmers can support themselves, and improving the quality of life in the community that produces food, including animals and society.
What makes a food product sustainable?
Regardless of definition and belief, food sustainability is about producing food at a level of productivity sufficient to sustain the human population. Sustainable food production is fundamentally based on the availability of fertile soil, water, nutrients, and an adequate climate.
What are the 3 principle of sustainability?
Sustainability is often represented diagrammatically. The figures at the top of this page show that there are three pillars of sustainability â economic resilience, environmental protection and social justice.
What are three 3 terms used to describe sustainability?
3 Pillars of Sustainability The idea of sustainability is often broken down into three pillars: economic, environmental, and social—also known informally as profit, planet, and people.
Why are the three principles of sustainability important?
The three pillars of sustainability The goal is to maintain social cohesion and is related to respecting the environment and the economic resources of the place. Economic feasibility: a productive system must meet the needs of that society without endangering natural resources and the well-being of future generations.