TraceGains, the sole networked marketplace for food and beverage ingredients, unveiled a report spotlighting the struggle of well-intentioned CPGs to deliver ESG-compliant products amidst a convoluted global supply chain. The “State of ESG Compliance for the Food and Beverage Industry Report,” based on insights from 343 professionals, pointed out challenges like ambiguous supplier guidelines, elevated ingredient costs, and a lack of technology hindering compliance. Encouragingly, most brands expressed a robust intent to embrace ESG goals, despite hurdles. 64% prioritise ESG compliance, with 46% emphasising partnerships with ESG-aligned suppliers. Key motivators included evolving regulations, consumer demand, and competitive pressures. However, challenges persist—41% feel short of ESG compliance, relying on informal methods to choose suppliers. Transparency gaps and confusion around sustainable labelling persist, hampering progress. Despite obstacles, the industry plans to intensify the use of ESG ingredients, with a willingness to pay more to align with sustainability objectives. TraceGains praised brands’ commitment, emphasising the need for unwavering dedication to bridge the gap between intent and action for sustainable business practices.

Read more from Prnewswire