The entire food supply chain is under pressure to meet more demanding ESG regulations, with the US Securities and Exchange Commission proposing ESG-related disclosure requirements for public companies. To manage the complex strands of sustainability-related data, organizations are turning to digital solutions. For instance, SAP Sustainability Control Tower can automatically capture data and convert it into retailer-specific ESG benchmarking reports. As sustainability benchmarks and reporting requirements evolve, technologies like AI are expected to drive further progress, with IDC analysts predicting that 35% of organizations will use AI to generate sustainability-driven cost benefits and competitive advantages by this year.
Key takeaways:
- The agribusiness industry is responsible for about 30% of greenhouse gas emissions and reducing these numbers starts with collecting and sharing accurate environmental, social, and governance (ESG) reporting data.
- World’s foremost agribusiness brands and policymaking organizations are working to set international reporting standards that meet sustainability mandates, with organizations like SISC and GLOBALG.A.P. North America developing sustainability outcome metrics and food safety standards respectively.
- The entire food supply chain is under pressure to meet more demanding ESG regulations, with the US Securities and Exchange Commission proposing ESG-related disclosure requirements for public companies and the EU setting legally binding climate targets.
- Technologies like AI and collaborative platforms such as cloud-based networks are being used to advance ESG metrics and data management, generate sustainability-driven cost benefits and competitive advantages, and facilitate secure data sharing across the food supply chain.