CSR and procurement: the duo in the front line of climate strategies

Industry Investment Rating - The report does not explicitly provide an industry investment rating [1] Core Viewpoints - Sustainability is now a central business imperative, driven by regulatory, investor, and consumer pressures, as well as climate-related supply chain challenges [4] - Responsible procurement is a key lever for improving ESG impact across the food value chain [5] - The food and beverage value chain accounts for 36% of global GHG emissions, with agricultural production contributing 39% of these emissions [10] - Consumers across all age groups are increasingly focused on CO2 emissions when shopping, especially for food products [13] - Procurement plays a critical role in driving ESG initiatives across the value chain [24] Agrifood Value Chain Emissions - Conventional food production significantly impacts biodiversity, deforestation, and climate change [8] - The F&B value chain is responsible for 17.9 Gt CO2e, representing 36% of global emissions [10] - Upstream activities, particularly agricultural production, contribute the most to emissions in the F&B value chain [9] Sustainability Efforts in the Food Industry - Food companies must intensify sustainability efforts along the entire value chain due to both consumer and regulatory pressures [15] - The EU's Farm-to-Fork strategy is a comprehensive regulatory framework impacting all stages of the food value chain [16] - Scope 3 emissions reduction is a key priority for food companies, as they represent the largest share of total emissions [18] Procurement's Role in ESG - Procurement is uniquely positioned to influence sustainability across the entire value chain [24] - Sustainable procurement can enhance supply chain resilience, reduce costs, and improve ESG performance [25] - Key action fields for procurement include reducing Scope 3 emissions, embracing circular economy practices, and increasing supply chain transparency [30] Challenges in Sustainable Procurement 1. Data collection from suppliers is a major challenge, with issues around data quality and verification [32] 2. Supplier engagement and contractualization require long-term commitments and qualitative discussions [35] 3. Role ambiguity and knowledge gaps hinder effective integration of sustainability into procurement processes [38] 4. Balancing sustainability goals with traditional procurement priorities remains a challenge [41] 5. Lack of integrated tools and resource constraints complicate sustainability tracking and management [44] Solutions for Sustainable Procurement 1. Simplify data collection through scalable tools and streamlined communication [47] 2. Focus on high-impact product types and long-standing supplier partnerships [49] 3. Establish long-term, structured partnerships with clear sustainability commitments [52] 4. Provide comprehensive training and user-friendly tools for procurement teams [55] 5. Emphasize the link between sustainability practices and financial performance [58] 6. Adopt a hybrid organizational structure that integrates procurement and CSR functions [61] Conclusion - Procurement is pivotal in driving a company's sustainability strategy, particularly in managing Scope 3 emissions [66] - Successful transition to sustainable procurement requires robust cross-functional collaboration and organizational restructuring [67]