IGD: Uniting Food Industry for Supply Chain Sustainability

IGD has created a new Food Supply Chain Sustainability Framework with guidance, in collaboration with six manufacturers and industry stakeholders.

The framework offers guidance for businesses on how to better integrate sustainability into their operations and understand key priorities.

This will create food supply chain resilience, protecting the future of the food and drinks industry.

What is the framework?

The Institute of Grocery Distribution (IGD) is an impartial organisation which works to unite stakeholders across the agrifood supply chain to address challenges within the industry. It provides evidence-based insights, credible research and strategic foresight in order to help organisations make informed and valuable decisions.

Last year, the IGD launched A Net Zero Transition Plan for the UK Food System, a roadmap made in partnership with WRAP and EY. It is now building off that to introduce a framework for companies to help them identify priorities within their solutions and sustainability planning, with the Food Supply Chain Sustainability Framework.

The framework is intended to support these companies go beyond planning for sustainability and take actual action. To deliver the framework, IGD has collaborated with six food manufacturers: Bakkavor, The Billington Group, The Compleat Food Group, Greencore, Premier Foods and Samworth Brothers.

The manufacturers stated: “As a group of manufacturers working with IGD, we see this Framework and guidance as a first step to supporting sustainability commitments as part of joint business planning, making it easier for procurement teams and both businesses in a commercial supply chain relationship. We hope next year to expand this to other sectors.”  

Why is the framework needed?

Using the framework, suppliers and customers alike can work towards their sustainability goals as it helps businesses track where they currently are within their journey and where they want to end up. The framework follows seven sustainability priorities which are applicable to manufacturers, retailers and their suppliers.

The IGD argues that food supply chain sustainability is imperative, from a resilience perspective, an economic one and an environmental one. A recent IGD and EY report stares that the cost of failure to address climate risk equates to £2.6bn (US$3.4bn).

Moreover, climate change is already disrupting food supply chains around the world and driving inflation - irregular weather patterns caused by climate change affect crop growth significantly. Finally, food is classed as one of the 13 critical national infrastructure sectors, but if crop growth and harvesting fails, food security is at risk.

Although manufacturers had common goals, their methods to achieve these results were often contrasting and spreading supplier resources thin. Sustainability is not yet fully integrated across procurement processes, which makes standardisation difficult.

In creating partnerships and streamlined solutions, the food industry can ensure positive growth and a meeting of its sustainability targets. As a result, the IGD collaborated with the manufacturing group in order to build this unification and sustainability guidance.

"We recognise that creating a sustainable, healthy and resilient UK food system demands greater cross industry collaboration and practical action. The launch of A Net Zero Transition Plan provided the technical evidence needed, but over the last year we’ve worked to move that forward into action," says Kirsty Saddler, Director of Health & Sustainability Programmes at IGD. 

“The introduction of the Food Supply Chain Sustainability Framework is an important step in driving collaborative progress and while it has been developed with manufacturers, we believe this can support supplier and customer relationships across every part of the supply chain, to reduce emissions. Together, we are building the pathways and the confidence needed to invest in a more meaningful, sustainable change for our industry and our communities.” 

Steps to success

The framework provides a guidance of top priorities for suppliers, manufacturers and retailers. These topics are commonly used and relied upon within the food and drinks industry. As some are not applicable to every supplier, the framework should be used as a guidance for businesses to align within their operations, collaborating with suppliers to discuss the main priorities.

The seven priority topics within the framework are:

• Climate: Net Zero
• Deforestation & Conversion
• Water
• Nature
• Packaging
• Food Waste
• Human Rights (FNET)

The framework allows businesses to identify suppliers with material impact and large climate risks. Suppliers can then conduct self-assessments before working with customers to identify priorities and solutions. The framework enables the cross-supply chain collaboration needed to create developments and sustainability solution integration. 

By utilising the framework, the food industry can see how to build supply chain resilience through prioritisation, collaboration and active engagement. In doing so, the food supply chain will become more protected with a positive environmental impact, helping create long-lasting value.