The world of environmental, social, and governance (ESG) regulations can feel like a maze—especially for food and beverage companies that have to stay on top of an ever-growing list of rules. With over 2,400 global ESG regulations and initiatives pushing for more sustainable practices, it can seem overwhelming. But it doesn’t have to be.
Why ESG matters
More than ever, businesses are expected to step up and demonstrate their commitment to sustainability. This isn’t just coming from governments; consumers, investors, and even retailers are demanding it. In fact, according to the United Nations, the food industry is responsible for about 30% of global greenhouse gas emissions—making it a key target for change. And with 80% of a company’s emissions tied to external suppliers, ensuring sustainable sourcing practices is a must.
When we asked F&B suppliers about their company’s sustainability goals, we found that 89% believe it’s at least somewhat important for new software to align with corporate sustainability goals.
The challenge: Compliance isn’t easy
Driven in large part by the European Union’s Green Deal, the push for companies to meet ESG standards aims to make the EU the first climate-neutral continent by 2050. This ambitious goal has set the tone for regulations worldwide, but staying compliant is no simple task.
New rules like the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Reporting Directive (CSRD) demand transparency and traceability at every stage of production. While these efforts are necessary, they can be complex and time-consuming for companies to navigate on their own.
If you’re doing business in the UK, here are a few additional regulations you’ll need to keep in mind:
- Companies Act of 2006: Updated in 2022, it requires large businesses to file an annual report detailing their sustainability strategies and processes.
- Sustainability Disclosure Requirements (SDRs): Starting in 2025, businesses will be required to disclose sustainability-related risks and goals.
- UK Green Taxonomy: This classification system defines what qualifies as “green” activities, giving businesses clarity on sustainable investments.
- Streamlined Energy and Carbon Reporting (SECR): Qualifying companies must report their energy usage and carbon emissions.
- Advertising Standards Authority (ASA) Guidelines: Companies must evaluate their entire product lifecycle before making “green” marketing claims.
The good news: TraceGains has you covered
Thankfully, you don’t have to navigate these challenges alone. TraceGains offers a suite of solutions that makes gathering and managing critical ESG data easier. Our networked ingredients marketplace is home to over 87,000 suppliers and more than 560,000 ingredients, providing access to all the data you need to meet regulations.
Plus, TraceGains’ Sustainability Management solution integrates ESG data with supplier compliance information. This means you can quickly compare current suppliers and ingredients against more sustainable alternatives. And if you pair it with TraceGains’ NutriCalc-powered Formula Management tool, you’ll be able to assess the entire lifecycle of your products, ensuring they meet your sustainability targets without sacrificing quality.
A brighter future for F&B companies
With TraceGains, achieving compliance with ESG regulations becomes a smoother, more streamlined process. We help you move beyond just meeting requirements—offering tools to enhance sustainability leadership and drive long-term success in a changing world. No matter how complex the regulations get, TraceGains is here to help your business thrive.
Your path to compliance and innovation
ESG regulations may be piling up, but with the right partner—like TraceGains—your business can turn these challenges into opportunities for growth and innovation. Contact us for an ESG demo today.