ESRS E1 - Climate change
Topic | Climate change |
Sub-topic | Energy |
Sub-sub-topic |
|
IRO | Impact - Actual negative |
Location | Own Operations, Supply Chain (Upstream, Downstream) |
Time-frame | Medium-term |
Title | GHG emissions from a FMCG business have a negative impact on the environment. |
Example | FMCG business negatively impacts the environment through the emission of greenhouse gases. The emissions stem from the business’ operations, travel, and heating inside the office, as well as Scope 2 and 3 emissions from the supply chain. |
Reference | Nestlé Sustainability Report, 2023 |
ESRS E3 - Water and marine resources
Topic | Water and marine resources |
Sub-topic | Water |
Sub-sub-topic | Water consumption |
IRO | Opportunity |
Location | Own operations |
Time-frame | Long-term |
Title | Increasing water efficiency has cost-saving benefits for business. |
Example | Efficient water use in food and beverage production can reduce costs and environmental impacts. PepsiCo is investing in water-efficient technologies in its operations. |
Reference | PepsiCo Sustainability Report, 2023 |
Topic | Water and marine resources |
Sub-topic | Water |
Sub-sub-topic |
|
IRO | Impact - potential negative |
Location | Own operations |
Time-frame | Medium-term |
Title | Beverage company increases pressure on water scarcity |
Example | Beverage companies face water stress risks in water-scarce regions; they contribute to the scarcity as the production of soft-drinks is often water-intensive. Coca-Cola is implementing water replenishment initiatives to manage these risks. |
Reference | Coca-Cola Sustainability Report, 2023 |
Topic | Water and marine resources |
Sub-topic | Marine resources |
Sub-sub-topic |
|
IRO | Impact - potential positive |
Location | Downstream |
Time-frame | Long-term |
Title | Protecting ecosystems ensures longevity of stock for fish business. |
Example | Companies like Marine Harvest are investing in sustainable fishing practices. Protecting marine ecosystems can ensure sustainable fish stocks, maintaining biodiversity. |
Reference | Marine Harvest Sustainability Report, 2023 |
Topic | Water and marine resources |
Sub-topic | Marine resources |
Sub-sub-topic |
|
IRO | Opportunity |
Location | Downstream |
Time-frame | Long-term |
Title | Protecting ecosystems ensures longevity of stock for fish business. |
Example | Sustainable fisheries management ensures long-term viability of fish stocks, and thus the financial success of a company that sells fish. Marine Harvest is committed to sustainable fishing practices to protect marine resources. |
Reference | Marine Harvest Sustainability Report, 2023 |
ESRS E5 - Circular economy
Topic | Circular economy |
Sub-topic | Waste |
Sub-sub-topic |
|
IRO | Opportunity |
Location | Own operations |
Time-frame | Short-term |
Title | Reducing food waste also reduces costs. |
Example | Reducing waste in food and beverage production can cut costs and improve sustainability. Nestlé is implementing waste reduction strategies across its operations. |
Reference | Nestlé Sustainability Report, 2023 |
ESRS S1 - Own workforce
Topic | Own workforce |
Sub-topic | Working conditions |
Sub-sub-topic | Health & safety |
IRO | Impact - actual negative |
Location | Own operations |
Time-frame | Medium-term |
Title | Addressing health and safety risks in food production facilities. |
Example | Inadequate health and safety measures in food production can lead to workplace accidents and illnesses. An incident at a major food processing plant highlighted the need for stricter safety protocols. The company has since revamped its safety training programs and upgraded equipment to prevent future occurrences. |
Reference | Tyson Foods Sustainability Report, 2023 |
ESRS S2 - Workers in the value chain
Topic | Workers in the value chain |
Sub-topic | Other work-related rights |
Sub-sub-topic | Forced labour |
IRO | Impact - actual negative |
Location | Supply Chain (Upstream) |
Time-frame | Short-term |
Title | Lack of transparency in supply chain increases risk of forced labour. |
Example | Working conditions through Food and Beverage supply-chains are often poor, with few legal protections in place. F&B industry’s must increase visibility of their supply chain, and ensure that workers are protected. |
Reference | Coolset, 2024 |
ESRS S3 - Affected communities
Topic | Affected communities |
Sub-topic | Communities' economic, social and cultural rights |
Sub-sub-topic | Land-related impacts |
IRO | Risk |
Location | Own operations |
Time-frame | Long-term |
Title | Contested land rights slow down business |
Example | Land rights issues can pose significant risks for agricultural operations, as contested land disputes can delay operations for years. Nestlé works to ensure land rights are respected in areas of operation. |
Reference | Nestlé Sustainability Report, 2023 |
ESRS S4 - Consumers and end-users
Topic | Consumers and end-users |
Sub-topic | Personal safety of consumers and/or end-users |
Sub-sub-topic | Health and safety |
IRO | Impact - potential positive |
Location | Downstream |
Time-frame | Long-term |
Title | High safety standards ensure consumer safety and trust. |
Example | High safety standards in food and beverage ensure product quality and consumer trust, encouraging returning customers. Nestlé maintains rigorous safety standards for its product lines. |
Reference | Nestlé Sustainability Report, 2023 |
ESRS G1 - Business conduct
Topic | Business conduct |
Sub-topic | Management of relationships with suppliers including payment practices |
Sub-sub-topic |
|
IRO | Impact - actual negative |
Location | Own operations, supply chain (upstream, downstream) |
Time-frame | Medium-term |
Title | Ethical Governance Failures in the Food & Beverage Services Industry. |
Example | Nestlé faced significant negative impacts due to governance failures related to ethical practices. Investigations revealed that some of Nestlé’s suppliers were involved in unethical labor practices, including child labor and unsafe working conditions. This governance failure resulted in substantial legal penalties and severe reputational damage. Consumer trust and investor confidence declined, leading to a significant drop in sales and market value. In response, Nestlé is implementing stricter supplier audits and enhanced governance policies to ensure ethical compliance across its supply chain. |
Reference | Nestlé Annual Report, 2023 |