44% of food and agribusinesses surveyed stated that they were receiving requests for sustainability information from customers. When looking at internationalisation, sustainability is a key consideration. It is important to find out what standards and expectations exist in your target market, what competitors are doing, and whether Ireland’s green image could be an advantage to you, if backed up with evidence-based sustainability action.
Sustainability targets and actions
36% of companies surveyed stated that they have set sustainability targets, with a further 39% reporting that they are in the process of setting targets. Targets are an important step on the sustainability journey and any organisation setting a target should ensure they have a baseline year identified to measure progress against.
Scope 1 & 2 emissions refer to the energy that your company uses directly, either through energy generation or purchased energy such as electricity. Scope 3 is all other indirect emissions such as waste, travel, logistics and supply chain emissions. Scope 3 is significant for food producers as much of their impact comes from within the farm gate or raw material production.
Have you set sustainability targets?
When measuring your carbon footprint Scope 1, 2 and 3 emissions (as seen below) are the best way to quantify your impact as they are comparable and accepted as best practice.
Once you have measured your impact, before setting targets, you should look at:
Where do you have the most impact?
What are the most important areas for your stakeholders?
In what areas are the highest risks and opportunities for your company?
This is called a materiality assessment. If you add the financial impact and risk of each area, it is a double materiality assessment.
Sustainability action in food and agribusinesses
90% of respondents are taking some form of climate action. Companies reported a variety of sustainability initiatives. The number one area reported was reducing energy usage, closely followed by waste reduction. This year sees an increased focus on waste compared to last year’s report, where only 46% of respondents listed ‘managing waste and byproducts’ as an initiative being undertaken to tackle climate change.
Waste reduction is particularly important for food businesses. Reductions in food waste lowers emissions and contributes to Food Vision 2030 targets. Shifting from the traditional "take, make, waste" model to a more circular model is something that can help food and agribusinesses to reduce waste, add value and appeal more to customers.
If you would like to reduce waste in your business, the first step is to carry out a waste audit answering the following questions:
Where is waste being generated?
What type of waste is it?
How much waste is generated at each step
Where is waste going, i.e., landfill, recycling, animal feed etc.?
Once you have a full understanding, you can set waste reduction targets, identify processes or materials that could be redesigned or adjusted, and evaluate if there are any opportunities to incorporate waste back into the process or divert to a higher value end use.
Upcoming sustainability regulations
A closer look at the upcoming legislation which will impact agrifood companies in Ireland.
Corporate Sustainability Reporting Directive (CSRD)
What is it? The CSRD requires companies to disclose their ESG impacts and related risks, setting out new reporting requirements. Conducting a double materiality assessment is a foundational element.
Who will it affect and when will it come into law in Ireland? The first cohort of eligible companies (large, listed corporates) from financial year 2024, with reports to be published in 2025. Listed SMEs will have to comply from FY 2026 (report publication 2027) with an ‘opt out’ possible for a further 2 years (FY 2028, report publication 2029).
Green Claims Directive (GCD)
What is it? This Directive aims to stop greenwashing, when companies claim to be more environmentally friendly than they are. The GCD focusses on substantiating, communicating and verifying claims.
Who will it affect and when will it come into law? From September 2026 any company or product making claims to consumers in the EU, that state or imply a positive effect on the environment, will be affected. Examples of claims include, ‘carbon neutral’, ‘net zero’ or ‘packaging made from recycled material’.
Read more online about other upcoming legislation including:
Corporate Sustainability Due Diligence Directive (CSDDD)
This directive requires companies to integrate responsible business practices, identifying and addressing risks to human rights and the environment.
European Union Deforestation Regulation (EUDR)
Aiming to prevent deforestation outside the EU, this regulation will affect businesses importing cocoa, coffee, oil palm, rubber, soya and wood, or their derived products, e.g., chocolate.
Carbon Border Adjustment Mechanism (CBAM)
A carbon pricing adjustment that affects companies importing fertiliser, cement, iron, steel, aluminium, electricity or hydrogen from outside the EU.
This story was first published in our 2024 Food & Agribusiness Report.
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