For the food and ag sector, long-term success is often managed, in part, by building a robust sustainability strategy. And with new regional and international regulations being introduced, companies are facing stricter requirements for sustainability reporting, highlighting the need for strong data management.

The Struggle is Real

Companies of all sizes are increasingly expected to not only improve their sustainability practices but also to clearly report on their progress. As stakeholders (investors, customers, and local communities) request detailed and trustworthy sustainability data, many organizations struggle with managing it.

“It’s a wide range of data to keep up with — from greenhouse gas emissions and biodiversity initiatives to sustainable packaging and ethical sourcing practices,” says Louis DeMaso, sustainability advisor at Pinion. “We see many organizations who are struggling with poor quality data and limited analytics. This hinders decision making and reduces accuracy when reporting on sustainability.”

Evaluating the Factors Driving Your Data

It’s no secret that a focus on sustainability is reshaping the business landscape. Understanding the key sustainability drivers for your business will underscore the importance of collecting and effectively managing sustainability data, as well as highlight the most effective strategies for doing so.

“If you don’t understand what’s driving sustainability at your company in the first place, you risk collecting the wrong data and reporting the wrong metrics. It’s important to align your sustainability reporting with the core value drivers,” advises DeMaso.

Pinion sustainability advisors break down the ‘Top 4’ drivers of sustainability data collection:

Driver #1 – Stakeholder Requests

Increasingly, retailers, restaurants, and other ag industry customers are requesting data from their suppliers on environmental and social impacts to support reporting and continuous improvement. This may include information about greenhouse gas emissions, ethical sourcing, or the adoption of on-farm practices that support biodiversity and healthy soils, among many other topics.

Pinion sustainability tip: Suppliers that provide this information and collaborate with their customers to reach joint sustainability goals can deepen their customer relationships and create new sales opportunities.

Driver #2 – Emerging Regulations

Domestic and international regulatory frameworks are rapidly evolving to incorporate requirements for sustainability disclosures. These regulations push companies toward greater transparency and accountability for the impacts that result from their business practices.

Examples of emerging regulations requiring sustainability disclosures include:

  • California’s climate bills (SB 253 and SB 261), which will require certain companies to disclose their GHG emissions and climate-related financial risks.
  • Extended producer responsibility (EPR) bills, which require companies to take responsibility for the entire lifecycle of their products by funding and participating in statewide collection and recycling systems for post-consumer waste.
  • The European Union’s Corporate Sustainability Reporting Directive (CSRD), which requires sustainability disclosures for certain companies, including information about how their activities impact people and the environment, as well as how environmental and social issues affect their businesses.

Pinion sustainability tip: By tackling emerging regulations proactively, companies can not only fulfill growing expectations for transparency but also use data to enhance their sustainability efforts, ensuring regulatory compliance while creating a competitive advantage.

Driver #3 – Company Commitments

Many companies are setting their own ambitious sustainability targets, such as reductions in greenhouse gas emissions or water use. These voluntary commitments are often part of a broader strategy to enhance corporate reputation, align with stakeholder values, and prepare for anticipated regulatory changes.

Pinion sustainability tip: Tracking sustainability data helps companies identify opportunities to make progress towards reaching their targets.

Driver #4 – Marketing Claims

In today’s competitive market, sustainability attributes increasingly serve as differentiators for products. Many companies aim to make claims about the environmental and social impacts of their products to capture new markets. This approach requires collecting detailed, product-level sustainability data. Other companies track broader sustainability data to make claims about their company-level impacts and demonstrate ongoing improvements.

Pinion sustainability tip: Use this sustainability data to satisfy and attract investors, drive innovation, reduce long-term operational risks, create a competitive advantage, and build customer trust and loyalty.

Takeaways

The reasons for gathering sustainability data are clear — to satisfy stakeholders, emerging regulations, company commitments, and marketing claims. Pinion advisors recommend starting with the ‘why’ and then working backwards from there to determine which sustainability data to track and how to report it.

“Understanding the purpose driving your sustainability goals sharpens your company’s focus and provides a marker to evaluate your sustainability success,” adds DeMaso.

Reach out to a Pinion sustainability advisor to explore best practices for managing sustainability data.