LONDON, May 23, 2022 (GLOBE NEWSWIRE) — Environmental, social and governance (ESG) risks face the compounding challenge of controlling the environmental impact of manufacturing processes and supply chain disruptions. Increasingly impacting the food and beverage industry.
WTW (NASDAQ: WTW), the world’s leading advisory, brokerage and solutions firm, outlines the pressures facing the food and beverage industry in the wake of the past two years of disruption caused by the pandemic, in new global research doing. To supply chain disruptions caused by global volatility, especially regarding the conflict between Russia and Ukraine, which is likely to have a significant impact on the world’s food supply.
The research also found that:
- Brand and reputation, which has a lot to do with sustainability, was a big risk (46%), but 55% didn’t cover reputation.
- 73% say their company does not have specific insurance for environmental risks, and 67% say it does not cover cyber risks. 42% were not compensated for product recalls. All of these were ranked as risk factors.
- External factors beyond an organization’s control, such as geopolitical factors (60%) and economic factors (60%), were seen as the biggest challenges to mitigating risk in the medium term.
- Despite challenges in the past two years, 70% are optimistic that organic food (48%) tops their list of growth opportunities and the sector will become more profitable over the next two years.
The survey was conducted with 250 senior executives in food production, processing and manufacturing organizations around the world, including confectionery, snacks, bakeries, cereals, dairy, breweries, distilleries and soft drinks.
Garret Gaughan, Head of Direct and Facultative, said: Ukrainian and Russian affairs. However, the survey also shows that the food and beverage sector is becoming more aware of the ESG impact it has on the sector. This also reflects the changing nature of consumers who are becoming increasingly concerned about sustainability and how food is made and the ingredients in it. The impact of climate change on supply chains is similar. “
For more information, please visit https://www.wtwco.com/en-GB/Insights/2022/04/global-food-and-beverage-survey-report.
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Sarah Booker: +44 7917 722040