79% Agrifood Executives Saw Increased Revenue from Sustainability Investments

A new Deloitte and NYU Stern Center for Sustainable Business study has revealed that 79 percent agrifood executives reported revenue growth from sustainability investments.

According to the study titled, Unleashing Sustainable Value in Food and Agriculture, executives reported 2% revenue growth and cost reductions from sustainability strategies, with 60% expecting value growth over the next two years.

The survey reveals that the executives recognize the financial value of sustainability investments, highlighting urgent need for agrifood systems to reduce greenhouse gas emissions.

Industrial impact:

The food and agriculture value chain deploys different sustainability strategies. The study also recommends that leaders build on their strengths, look for new channels and partners, and think expansively about how sustainability can create business value.

For example, food waste management was the main factor contributing to revenue growth, according to processors. As a result, 22% of processors saw at least 5% revenue growth from investing in sustainability strategies.

Retailers identified eco-friendly packaging options as a significant source of extra income. 66% of retailers expect value from sustainability strategies to increase over the next 2 years.

Food service providers ranked energy management as their number one tactic for cutting costs. 29% of food service providers identify sustainable sourcing programs as a top revenue-generating strategy. Additionally, 75% of restaurants saw at least 2% cost reduction from investing in sustainability strategies.

In the manufacturing segment, 38% of manufacturers reported utilizing sustainable and responsible supply chain sourcing as a cost-saving strategy.

Financial impact and comments:

Businesses that partnered with other organizations to invest in sustainability initiatives frequently experienced improved financial results. For instance, 60% of businesses anticipate continued growth in returns from their investments. But a sizable percentage—57%—reported that their business value had decreased as a result of postponed or insufficient investments in sustainability.

“Modelling conducted by third-party economists on the cost-benefit ratio of climate initiatives for McDonald’s US found that every dollar invested in mitigation generated nearly three dollars of benefits resulting in enhanced supply chain resiliency,” said Kendra Levine, US Sustainability Lead, McDonald’s.