In WTW’s latest global food and beverage survey report, ESG risks are of greatest concern, with reputational risk increasingly seen as critical to success
LONDON, May 23, 2022 (GLOBE NEWSWIRE) — Environmental, social and governance (ESG) risks are increasingly affecting the food and beverage industry as it faces the combined challenges of controlling the environmental impact of production processes and supply chain disruption.
In a new global survey, WTW (NASDAQ: WTW), one of the world’s leading advisory, brokerage and solutions companies, outlines the pressures facing the food and beverage industry due to the turmoil of the two recent years due to the impact of the pandemic to the disruption of the supply chain caused by global volatility, in particular with regard to the conflict between Russia and Ukraine, which is likely to have a significant impact on the global food supply.
The investigation also revealed:
Brand and reputation, which is strongly linked to sustainability, is a significant risk (46%), but 55% had no reputation coverage.
73% declare that their company does not have specific insurance for environmental risk and 67% do not have cover against cyber risk. 42% had no product recall coverage. All were classified as risk factors.
External factors beyond the organization’s control, including geopolitical factors (60%) and economic factors (60%) were considered the greatest challenges to medium-term risk mitigation.
Despite the challenges of the past two years, 70% are optimistic that the sector will be more profitable over the next two years with organic food (48%) topping the list of growth opportunities.
The survey was conducted among 250 senior executives from food production, processing and manufacturing organizations, across the globe, and across different categories including confectionery, snacks, bakery, cereals, dairy , brewery, distillery and soft drinks.
Direct and Optional Manager Garret Gaughan said: “While this investigation was undertaken prior to the current geopolitical situation, we recognize that the food and beverage sector is experiencing a wide variety of disruptions caused by a number of seismic events, notably the situation in Ukraine/Russia.However, this survey also demonstrates the growing awareness of the food and beverage sector of the impact of ESG on this sector, which also reflects the changing nature of consumers who are increasingly concerned about sustainability and how their food is produced and the ingredients it contains, as well as the impact of climate change on the supply chain.
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