Eco-friendly or empty promises? Assessing sustainability in the food sector
Anne Walton · Posted on: April 3rd 2025 · read
As we enter the mid-2020s, it’s clear to most that sustainability is not a buzzword anymore – it’s a critical business essential. Even companies that don’t openly acknowledge this are under pressure from investors and stakeholders to demonstrate a form of commitment to sustainable practices. This is especially true in the food sector, where businesses seem to be rushing to prove themselves.
Now a challenge has emerged: how can businesses in the food sector aim for transparency in their sustainability efforts when they often face the risk of jeopardising their commercial realities?
The rise of greenwashing concerns, fragmented reporting standards and the complexity of supply chain honesty have added layers of challenges to an already convoluted industry. Sustainability claims are being put under the microscope more than ever, and the growing demand for credibility has created a real tension between what businesses want to say and what they can validate – and there must be a balance.
The Greenwashing Dilemma
"Misleading claims about environmental or ethical practices are a real concern – particularly in sectors like food where the public is likely to see dishonesty first hand. For example, consumers may purchase a product marketed as sustainably sourced, only to later discover that the ingredients are linked to harmful farming practices."
Likewise, “fair-trade” labels can hide exploitative working conditions, and health-focused products may feature nutritional claims that just aren’t backed by research. As consumer demand for sustainable products increases, businesses can be tempted to exaggerate or mislead about their efforts, which isn’t good for anyone.
“There is a real need for collaboration”, said Catherine Howarth, Chief Executive of ShareAction, during the MHA panel talk at the Sustainable Foods Conference 2025. “We need to be supported and move the whole sector forward. It’s not just about claiming to be sustainable – it’s about a systematic change across industries.”
While businesses claim to be making strides, many fall short of delivering measurable, long-term results. Vague promises are easy to make and mislead the public, especially when competing to market themselves as eco-friendly.
Reporting Standards and Their Downfalls
One of the main reasons for this is that there is a lack of unified reporting standards for tracking sustainability. Fragmented regulations across regions and industries make it a challenge for companies to measure their efforts in a meaningful way. While there are many ESG reporting frameworks in place, companies often struggle to grapple with these and fail to produce reports that are both comprehensive and accessible to their stakeholders.
As Emer Fardy, Group Sustainability & Human Rights Director from Hilton Foods, explained during the panel talk:
Even with mature reporting systems in place, the process is time-consuming and resource heavy. Reporting is important, but we can’t let it get in the way of action.
The key, she argues, is to focus on data that truly matters and streamline systems in a way that reduces redundancies. But achieving this requires businesses to make a strategic investment in the tools, people and processes that support transparent reporting without overcomplicating it.
It's Time to Streamline the Reporting Process
Given these challenges, one of the most significant hurdles facing businesses today is the need to streamline their sustainability efforts. In other words, how can a company ensure its ESG practices are credible while maintaining efficiency in the reporting process?
Alan Wilkinson, head of agrifoods from HSBC, advocates for investing in teams and networks while focussing on understanding the supply chain. “Invest in your supply chain and stop doing things that aren’t working”. By aligning processes that work across a network of stakeholders, businesses can ensure that their reports aren’t just a collection of data points, but a cohesive story that reflects the broader impact of their actions.
Emer adds to this, saying, “There’s so much innovation in the data space right now. You need a simple data management system that tracks exactly what you need, but it’s also critical to reassess your data requirements regularly”.
Building Trust through Financial Oversight
Throughout all of this, the role of financial supervision cannot be understated. Effective auditing and assurance processes are crucial in ensuring that sustainability claims are not just marketing fluff. Companies must provide third-party verification of their sustainability efforts to avoid falling into the trap of greenwashing and, in doing so, gain the trust of the public.
Host of the panel talk, MHA’s Mark Lumsdon-Taylor, reiterated the growing importance of rigorous financial oversight. Our efforts to provide transparency through sustainability-linked audits offer businesses a roadmap to greater credibility in their efforts. By providing these audits, MHA helps ensure that companies can effectively track their ESG performance, making it clear that their actions align with their claims.
How MHA can help
To avoid the pitfalls of greenwashing, businesses must take three key steps. First, they need to invest in the necessary resources, both human and technological. Second, they must be willing to collaborate across their supply chains. Finally, businesses must embrace financial oversight, using third-party audits to verify their sustainability claims. With the right guidance and commitment, we can all help drive this transformation – now, for tomorrow.
As Catherine Howarth concludes, “The time for action is now, and it requires all hands on deck.”
