Documenting your sustainable practices: A strategic tool for food processors

This article is based on panel discussions and presentations at the “Créer son avenir pour un impact durable” (Create your future for sustainable impact) event hosted by CTAQ (French only).

The food and beverage processing industry is under pressure to meet increasingly strict environmental, social and governance (ESG) standards. Retailers are raising the bar for suppliers as they respond to consumer needs and new regulations. At the same time, investors and financial institutions are reshaping their strategies to support businesses that can incorporate sustainability into their practices.

This reality raises three key questions:

1. Why should you document your green initiatives?

2. What activities should you prioritize and how can you get real value from them?

3. How can these efforts strengthen the resilience, performance and credibility of your business and the broader food sector?

Turning sustainable actions into a competitive advantage

Retailers' expectations

“For retailers, traceability and transparency are essential,” says Marie-Claude Bacon, vice-president of public affairs and communications at Metro Inc. “They need reliable, comparable data to assess the commitments of their partners, including food processors. Our biggest challenge is better understanding and documenting our supply chain at all levels.” Metro has introduced a responsible procurement code that covers regulatory compliance, human rights, environmental protection and animal welfare. Suppliers are required to complete a self-assessment and, when needed, submit action plans. Bacon also notes that aligning expectations remains an issue, since every retailer still has its own criteria. For its part, Metro is working with GS1, a standards organization specializing in traceability, to streamline and standardize the flow of information.

Financial partners' perspective

Investors are looking to support businesses that generate a positive impact beyond profits alone. “In the past, the focus was on managing risk and doing no harm,” says Guy LaRoche, portfolio manager at Fondaction. “Today, it's about creating added value by embedding ESG impact into business decisions. Governance, social responsibility and circular resource management are now key factors in attracting investor backing.”

Financial institutions play a guiding role as businesses transition toward sustainability. “For us, sustainability starts with productivity and resilience,” says Marie-Claude Bourgie, Executive Vice-President of Strategy and Impact at FCC. “The right strategies reduce risk and are a long-term investment that pays off. We guide our customers in adopting best practices without creating unnecessary constraints.”

Bourgie notes, however, that for larger transactions, FCC ensures that businesses have data collection teams and systems that align with retailer and export market expectations. Assistance may also include practical solutions such as loans to fund certifications or products covered under the Sustainable Finance Framework.

Processors and GHG reduction: Where things stand

A study by IC Canada and Léger Research¹ involving 131 Quebec food processing companies indicated growing awareness but inconsistent action plans. While most respondents said reducing their environmental footprint was important, levels of readiness varied widely. For many, sustainability is still seen mainly as a reputation or branding issue rather than a strategic opportunity.

“There's a genuine willingness to act, but also barriers with respect to the complexity of the process and limited financial resources,” says Eric Waterman, vice-president of agri-food at Inno-centre. “Many companies simply don’t know where to start.”

Despite the challenges, more processors are adopting structured approaches to better understand the impacts of their initiatives and track their environmental progress.

From requirement to strategic driver

As ESG requirements evolve rapidly, having solid data is critical. Data is not only used to assess risk and measure progress. It also informs your business decisions and builds trust with your partners and retailers.

“The key is to take it step by step and avoid trying to do everything at once. Start by establishing a baseline,” Waterman says. “Even small steps help move the business forward.” The right strategies reduce risk and are a long-term investment that pays off.

To kick-start a well-structured transition, an ESG materiality analysis is often the most effective place to start. It helps pinpoint the issues that matter most to your organization and focus effort where it will have the greatest impact. By clarifying key indicators such as energy and water use, GHG emissions, health, safety and working conditions, or internal policies and supplier relationships, you’re laying a solid foundation to enable an effective shift from planning to action.

A strategic investment

Documenting your green practices is more than a formality – it’s a strategic asset. When actions are measurable and credible, you show retailers, investors and financial institutions that efficiency and real-world commitment go hand in hand. Rather than being a constraint, transparency becomes a competitive driver that strengthens the performance of your business and the food industry as a whole.

¹ Study data was collected through an online survey (open link distribution) between January 20 and February 19, 2025.

Article by: Mélanie Lagacé

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