Food and beverage companies should start viewing sustainability as a means to achieve business growth

Food and drink businesses must embrace sustainability as a strategy for commercial success to remain competitive.

Data from True, powered by Open Energy Market who commissioned research on the decarbonisation strategy of food and drink businesses, indicates that businesses failing to do so risk losing lucrative contracts, tenders, and market share.

The data has revealed a majority (83%) of food and drink businesses are confident in the cost-effectiveness, reliability, and sustainability of their energy strategies. However, 31% have concerns about fragmented, siloed net-zero plans, indicating a structural challenge, while 35% are influenced by external stakeholder pressure.

CEO Chris Maclean believes that navigating the complexities of the energy landscape in the food and drink industry requires more than just confidence and ambition – it requires action.

The findings, detailed in a new whitepaper, ‘Mind The Gap: From Ambition To Action’, explore the commercial imperatives driving energy procurement and sustainability strategies among UK businesses.

While many organisations report high confidence in their current strategies, underlying challenges threaten to undermine these efforts, exposing a “set and forget” mentality that could have significant implications for hindering commercial benefits.

Almost all UK food and drink businesses (84 per cent) believe they are prepared to tackle challenges such as energy market volatility and tighter environmental regulations within the next 12 months.

Despite this reported confidence, there is a concern that businesses may be overestimating their readiness, leading to complacency and missed opportunities for optimisation. For example, this overconfidence is contrasted by the 31 per cent of food and drink businesses report concerns around operating in silos with fragmented net zero plans, emphasising a unique operational challenge. A third (34 per cent) of food and drink businesses have reported their sustainability concerns stem from external stakeholder pressures.

Chris Maclean, CEO, True, powered by Open Energy Market, notes: “This shouldn’t be about competing priorities; it’s about recognising that sustainability can drive commercial benefits.

MacLean adds: “Food and drink businesses need to shift their perspective to see sustainability as a pathway to commercial gain, or they risk losing competitive advantage, missing out on major retail contracts and tenders, and falling behind in an evolving market landscape where sustainability is increasingly tied to business success.”

Food and drink businesses report common challenges for implementing sustainable energy practices. These include concerns around the effectiveness of onsite energy monitoring software and extended timelines for approval and decision-making processes (25.5 per cent), followed by lack of access to trusted specialist consultancies and financial constraints and limited availability of renewable energy sources (23.5 per cent). These obstacles underscore the need for streamlined processes and better access to expertise to drive effective sustainability initiatives that enhance commercial performance.

Creating project teams to address inefficiencies in energy usage is a frequently adopted measure, with almost four in ten (39 percent) implementing this strategy.

The survey reveals a complex landscape of decision-making authority over sustainable energy strategies. While CFOs slightly edge out heads of sustainability as the final sign-off authority within the food and drink industry (25.5 per cent versus 19.6 per cent), the perception of who holds this responsibility varies significantly depending on who you ask. CFOs are more likely to claim this primary role for themselves (43 per cent compared to sustainability officers 13 per cent attribution), while heads of sustainability are seen as decision-makers by nearly twice as many sustainability officers (31 per cent) than by CFOs (16 per cent).

Still, two thirds of UK food and drink organisations (66.7 per cent) report a four to six month timeline for signing off energy and sustainability projects, with 17 per cent taking 7-9 months. Lengthy approval processes may hinder timely implementation of crucial initiatives.

The research reveals limited evaluation methods for sustainable energy transition action plans. Only a quarter (25.5 per cent) of food and drink organisations track and analyse energy consumption data, and fewer review compliance with environmental regulations (17.6 per cent) or compare performance against industry standards (19.6 per cent).

Chris Maclean adds that the startling paradox within UK food and drink businesses of high confidence in energy strategies coexists with significant gaps that need urgent attention.

“Businesses need to actively engage with specialists and adopt robust evaluation methods to optimise their energy and sustainability strategies effectively,” Maclean says. “By taking these steps, companies can not only address the gaps but carve a commercially competitive path to net zero, ensuring they are resilient, compliant, and truly sustainable in the long term.”

For more information and to access the full whitepaper report, ‘Mind The Gap: From Ambition To Action’, visit https://truezero.tech/mind-the-gap

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