75 percent of global food and drink organisations believe environmental factors such as the depletion of natural resources are impacting their sector

Rhea-AI Summary

WTW's Global Food and Beverage Survey Report highlights the rising significance of ESG risks in the food and beverage sector, particularly due to environmental impact and supply chain disruptions. Conducted with 250 senior executives, the survey revealed that 46% view brand reputation linked to sustainability as a major risk, with 55% lacking reputational coverage. Additionally, 73% reported no insurance for environmental risks. Despite challenges, 70% of respondents are optimistic about profitability, with organic food identified as a key growth area.

Positive

• 70% of executives optimistic about profitability over the next two years.
• 48% identified organic food as a significant growth opportunity.

Negative

• 46% consider brand reputation linked to sustainability a major risk, and 55% lack reputational cover.
• 73% reported no specific insurance for environmental risk; 67% without cyber risk cover.

In the latest Global Food and Beverage Survey Report from WTW, ESG risks are of greatest concern with reputational risk increasingly seen as critical to success

LONDON, May 23, 2022 (GLOBE NEWSWIRE) -- Environmental, social and governance (ESG) risks are increasingly impacting the food and beverage sector as it faces the combined challenges of controlling the environmental impact of production processes and supply chain disruption.

In a new global survey, WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company, outlines the pressures facing the food and beverage sector as a result of the turbulence of the last two years from the impact of the pandemic to the supply chain disruption caused by global volatility, particularly regarding the conflict between Russia and Ukraine, which is likely to have a significant impact on global food supplies.

The survey also found:

• Brand and reputation, which is heavily linked to sustainability, is a big risk (46%), yet 55% had no reputational cover.
• 73% said their company had no specific insurance for environmental risk and 67% did not have cyber risk cover. 42% did not have cover for product recall. All of which were ranked as risk factors.
• External factors beyond the organisation’s control, including geopolitical factors (60%) and economic factors (60%) were seen as the biggest challenges to mitigating risk in the medium term.
• Despite the challenges of the last two years, 70% are optimistic that the sector will be more profitable over the next two years with organic food (48%) topping the list of growth opportunity.

The survey was conducted with 250 senior executives in food production, processing and manufacturing organisations, across the globe, and across different categories including confectionary, snacks, bakery, cereals, dairy, brewing, distillery and soft drinks.

Garret Gaughan, Head of Direct and Facultative, said, “While this survey was undertaken prior to the current geopolitical situation, we recognize that the food and drink sector is undergoing a wide variety of disruption caused by a number of seismic events, not least the situation in Ukraine / Russia. However, this survey also demonstrates the food and beverage sector’s growing awareness of the impact of ESG on this sector which is also reflecting the changing nature of f consumers who are increasingly concerned about sustainability and how their food is produced and the ingredients within it, as well as the impact of climate change on supply chain.”

For more information please visit: - https://www.wtwco.com/en-GB/Insights/2022/04/global-food-and-beverage-survey-report

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

Learn more at wtwco.com.

Media contact

Sarah Booker: +44 7917 722040
sarah.booker@willistowerswatson.com

FAQ

What are the main findings of the WTW Global Food and Beverage Survey Report?

The report highlights ESG risks as critical, with brand reputation and environmental insurance gaps cited as major concerns.

What percentage of food and beverage companies lack insurance for environmental risks according to WTW?

73% reported having no specific insurance for environmental risk.

How optimistic are food and beverage executives about future profitability?

70% of executives expressed optimism about increased profitability in the next two years.

What key growth opportunity is identified in the WTW survey?

The survey identifies organic food as the top growth opportunity, with 48% of executives highlighting it.

What external challenges do food and beverage companies face according to the WTW survey?

60% cited geopolitical and economic factors as significant challenges to mitigating risk.