The overlooked “S”- social responsibility in ESG
Anne Walton · Posted on: April 1st 2025 · read
In corporate boardrooms and during investment discussions, ESG has undisputedly become a dominant marker for evaluating business sustainability. Yet, while environmental concerns seem to have taken centre stage and governance is largely driven by regulatory obligations, the seemingly silent “S” – Social Responsibility, remains an afterthought.
This is particularly significant in the food industry, where its impact sits at the heart of many of today’s most pressing social challenges – from rising obesity to ethical supply chains. Businesses that fail to integrate social responsibility into their core strategies risk reputational damage and financial instability in an increasingly conscious market.
At the Sustainable Foods Conference 2025, this raised an important question: are businesses truly embracing social sustainability into their long-term strategies, or are they box-ticking? Furthermore, how can they turn social responsibility into a driver of financial success rather than a compliance burden?
ESG is more than just an investor framework
Overall, businesses and the public view ESG very differently. During MHA’s panel discussion at the conference, an audience member reminded the speakers of something significant:
If you went outside and asked the average person on the street what ESG’s purpose is, they won’t say it’s to inform investors. They’ll say it’s to protect people, the environment and society".
There is nothing that’s more likely to be transformative to people’s lives than an improved, better food system.
The audience member certainly had a point. While businesses and stakeholders often see ESG as an investor framework, this narrow view risks neglecting its real-world impact. Likewise, in food and agriculture, social issues like fair wages, working conditions and food security are not just ethical concerns but business essentials.
This might be a challenge for companies, as both sides of the coin are incredibly important. However, there’s an undeniable opportunity here, as those that recognise the increasing weight of social sustainability will be better positioned for long-term growth and public trust.
The food industry: A critical yet undervalued sector
As Daniel Zeichner expressed during his presentation, food is not only fundamental to daily life, but also central to the nation’s security, economy and wellbeing. In his words,
“Food security is national security”.
The industry employs over four million people and contributes £147 billion to the economy, but despite its resilience and vast societal impact, it has not always received the policy focus it deserves.
Unlike in Europe, where food producers regularly advocate for policy changes, the UK food sector has struggled to gain similar visibility. Zeichner acknowledges that too often we take our food system for granted, failing to recognise the immense progress made over the past century in increasing food availability, variety and affordability. One of the most pressing issues is the hidden costs of poor diets.
Obesity and diet-related illnesses costs the UK economy an estimated £74 billion per year in healthcare expenses. Meanwhile, 10% of UK households in 2023 lacked secure access to sufficient, nutritious food.
This extends into the workplace. A small example is the way food is offered in office environments. While cakes, pastries and pizzas frequent office kitchens as morale boosters and standing desks remain unplugged, excessive reliance on these can inadvertently contribute to poor health outcomes, undermining broader wellbeing initiatives.
To align workplace practice with ESG commitments, companies need to take a more holistic approach to employee health. Office food policies should support long-term wellbeing rather than short-term gratification. A workplace that prioritises social sustainability recognises that small, everyday decisions – such as the food available in kitchens and meetings – can have a significant impact on employee health, productivity and job satisfaction. If the UK is to tackle the hidden costs of poor diets, action is needed at every level.
Things are changing, and there’s a new source of capital
As businesses reassess their role in promoting better food choices, investors are also recognising those that do. One of the most important shifts in ESG investing relates to UK pension funds. Catherine Howarth, Chief Executive of ShareAction and member of the panel pointed out that UK pension funds are increasingly prioritising businesses with strong sustainability credentials.
The UK has one of the largest pension fund systems in the world, but a lot of that capital has historically been invested overseas. That’s now changing. There’s a real opportunity for UK businesses that can prove they are resilient, sustainable and socially responsible.”
This shift is being driven by both government policy, which seeks to keep more pension investments within the UK, and changing investor priorities, particularly among younger generations who want their pensions to support ethical and sustainable enterprises. Of course, this means that for businesses embedding social responsibility into core strategies isn’t just about reputation, but financial viability.
The time for action is now
The overlooked “S” in ESG is no longer something businesses can, literally, afford to sideline. As the discussions at the Sustainable Foods Conference 2025 highlighted, social sustainability in the food industry is of course a moral obligation – but it is also a business imperative.
Businesses that fail to act will risk falling behind, as social responsibility is no longer optional, it’s a financial, ethical and strategic necessity. Those who embrace it today will lead the industry tomorrow.
