For these companies, ESG is indispensable: do you hedge?

The sustainability of the food chain is in full swing. Not only from our own ambition, but mainly from external pressure. Retailers demand transparency about origin and environmental impact. Certifications demand demonstrable policy. And clients, both consumers and companies, want to see evidence of corporate social responsibility. Increasingly, ESG reporting is mandatory for those who want to continue to deliver.

For many SME food companies, this pressure comes from several sides at once. Increasing sustainability is no longer a casual choice, but a hard precondition for chain access. Still, many companies struggle with the question: how do you meet all these requirements without paralyzing your organization? And more importantly: how do you turn them into a commercial advantage?

In this blog you will read how, as a food company, you can use ESG as a lever for trust, distinction and growth. Not an extra burden, but an opportunity you can seize today.

SMEs are increasingly confronted with it

Even companies without direct reporting obligations are affected. Large clients are imposing requirements on their suppliers. Banks are weighing ESG in their risk models. Investors pay close attention to social impact. And employees, especially young talent, are asking themselves: what do you stand for?

In addition, consumers are becoming increasingly demanding. According to recent research, 64% of consumers adjust their buying behavior based on a brand's social stance (Wolters Kluwer, s.d.). An unclear or absent ESG approach can therefore cost you not only customers, but also employees.

So for a growing number of companies, ESG is not a compliance question, but a competitive factor. Those who are prepared, gain access. Those who sit still will be caught up.

Profile 1: Companies in sales process

Those looking to sell over time need to prepare. ESG is now an integral part of due diligence processes. Private equity, strategic buyers and investors want to know: how sustainable is this company really? And how great are the risks of reputational damage, claims or supply chain problems?

Companies with strong ESG scores perform better in valuations. During the COVID pandemic, companies with high ESG scores posted returns of 37.4%, compared to 20.9% for the market (NYU Stern, 2021). ESG increases trust, lowers risk and increases value. Investors are increasingly linking sustainability to long-term returns.

In addition, an analysis of more than 1,000 studies shows that 58% show a clear positive correlation between ESG performance and financial performance (NYU Stern, 2021). Thus, those who strategically incorporate ESG into their operations not only sell better in the long run, but often faster.

Profile 2: Suppliers of large companies (B2B)

Corporate customers themselves are under pressure to prove their sustainability. As a result, they require their suppliers to provide ESG information as well. Especially in sectors such as industry, construction, retail and technology, you see ESG criteria determining purchasing decisions.

This often involves access to tenders, preferred supplier lists or long-term framework contracts. No ESG plan? Then you're out in the next round.

Strong ESG transparency in the chain also leads to fewer conflicts, higher reliability and a stronger bond with clients. Internal processes also benefit: companies with well-integrated ESG strategies see higher operational efficiency and stronger stakeholder relations.

Profile 3: Companies with external financing needs

Those dependent on loans or investments cannot ignore ESG. Banks use ESG scores to assess risk. Fund managers look at sustainability performance as part of their investment strategy. And that translates directly into euros.

Companies with a good ESG profile can count on better credit terms, often up to 20% more favorable. Moreover, research shows that ESG-driven companies perform structurally better on Return on Equity (ROE) and Return on Assets (ROA), making them more attractive to investors (Frontiers in Sustainability, 2024).

Demand for transparency is also growing in the private capital market. Impact investors, family offices and sustainable funds make ESG reporting a basic requirement. Without that profile, you are invisible.

Profile 4: Companies that want to show their social impact

Many companies want to profile themselves as responsible partners or meaningful employers. But how do you prove that without numbers, without structure, without a story?

ESG reporting provides the framework to communicate transparently about social impact, sustainability and governance. This not only delivers brand benefit, but also measurable value.

For example, companies with a strong ESG culture show 50% less turnover, and five times higher revenue growth than their peers (Great Place to Work, 2024). Attracting young talent also gets easier: 72% of the workforce in 2029 will consist of millennials and Gen Z, generations that have ESG at the top of their priority list (Wolters Kluwer, s.d.).

Additional profiles: those who look further will see the need

• Start-ups and scale-ups that want to operate internationally often need to demonstrate ESG for access to foreign markets or financing. Consider export countries with ESG guidelines or impact funds.
• Family businesses thinking about succession and long-term value. ESG helps secure reputation, culture and stakeholder trust across generations.
• Organizations in regulated industries such as construction, healthcare and food, where sustainability standards and certification pressures are increasing. Without ESG embedding, participation in tenders or collaboration with public parties becomes difficult.

Even in sectors where ESG is apparently not yet a hard requirement, it already appears to be tacitly factored into decision-making and selection.

ESG reporting is strategic-not optional

ESG is not a paper obligation. It touches on your access to markets, finance, people and legitimacy. And that makes it urgent for any company that wants to move forward. Reporting is just a tool. What matters is preparing for tomorrow's reality.

A good ESG story shows leadership, responsibility and vision for the future. It makes an organization more attractive to customers, employees and investors. And it helps with risk management, innovation and internal steering.

Do you find yourself in any of these profiles?

Have an ESG quick scan performed. And discover how ESG is not extra ballast, but a lever for growth. Looking ahead pays off; those who invest in transparency today will be stronger tomorrow.