ESG Indicators: When sustainability assessment becomes an opportunity

It’s quite evident that sustainability is a topic that companies cannot avoid addressing today. But what does sustainability mean for a company, particularly in the agri-food sector?

Corporate sustainability is an approach that aims to integrate environmental, social, and economic considerations into an organization’s operations and decisions to pursue a positive long-term impact. In practical terms, it means balancing economic growth with social responsibility and environmental protection. Measuring a company’s sustainability can be done through various criteria that define its environmental, social, and economic impact.

Environmental sustainability considers the company’s impact on the ecosystem. This includes responsible natural resource management, reducing greenhouse gas emissions, adopting sustainable energy practices, and sustainable waste management. Companies often measure their ecological footprint and seek to implement strategies to reduce it.

Social sustainability concerns how a company manages its relationships with employees, the local community, and the supply chain. Social criteria include promoting ethical working conditions, diversity and inclusion, workplace safety, and making a positive impact on the local community through social and philanthropic initiatives.

Economic sustainability refers to a company’s ability to generate long-term value. This includes responsible financial management, creating stable jobs, generating profits ethically, and promoting transparent business practices.

ESG Indicators for measuring a company's sustainability

To evaluate all these different aspects, ESG  indicators (Environmental, Social, Governance) can be used, allowing for the measurement of a company’s sustainability against a set of objective and shared standards.

In the environmental aspect, agri-food companies oriented toward ESG are adopting sustainable agricultural practices, promoting biodiversity, reducing the use of pesticides and synthetic fertilizers, and working to minimize carbon footprints along the production and distribution chain.

From a social perspective, applying ESG criteria in the agri-food sector involves attention to working conditions in fields and supply chains, promoting food safety, and supporting local communities. This can include initiatives aimed at improving the quality of life in rural areas, ensuring ethical working conditions, and fostering diversity in food production supply chains.

Regarding governance, agri-food companies oriented toward ESG strive to adopt transparent and ethical management practices. This includes proper disclosure of information, the adoption of ethical and anti-corruption policies, as well as the promotion of responsible corporate leadership.

ESG as an opportunity for development

A sustainable approach not only contributes to mitigating climate change and preserving natural resources but can also enhance the brand’s reputation, increase consumer trust, and create a conducive environment for long-term investments. In this way, ESG criteria are becoming a crucial element in shaping the sustainable future of the agri-food sector.

Companies must reckon with the need to revise their production models. The transition to more sustainable practices requires investments and a reorganization of value chains. The introduction of ESG criteria also requires a cultural shift: understanding the value of sustainability and translating it into concrete, measurable actions. It necessitates ongoing training and updates, as well as the adoption of appropriate tools to monitor and measure progress. Despite these challenges, many companies in the agri-food sector are showing that it’s possible to combine profit and sustainability, indicating that the transformation of food systems inspired by ESG criteria represents a significant development opportunity.