Every time you walk around a supermarket looking for snacks, drinks and other foodstuffs, you are looking at hundreds and hundreds of items made by large consumer products companies. Have you ever wondered where the ingredients for all those goodies come from?
Consumer products companies source their supplies and ingredients in a number of ways, and until recently, most of them were produced using conventional, industrialized agricultural methods. These practices consume fossil fuel, water, and topsoil at unsustainable rates and contribute to numerous forms of environmental degradation and soil depletion, diminishing biodiversity.
One way to counter the negative impacts of industrialized agriculture is through regenerative practices that restore ecosystems, improve soil health, and enhance biodiversity. Joining forces to accelerate the transition away from harmful conventional models, industry experts, farmers, and policymakers gathered recently at the Regenerative Agriculture Summit Europe in Amsterdam.
Regenerative farming commitment
“We are keenly aware of the implication of climate change on our supply chains and not being able to source raw materials for our brands” said Philip Werkmann, sustainability manager at Nestlé, while presenting a regenerative pilot project that was conducted with Klim, local farmers, and Nestlé in Germany. “One of our commitments is to increase the amount of key ingredients we source from regenerative farming. Not achieving this ambition is a business risk.”
Corporations like Nestlé are embedding net-zero commitments directly into their business strategy. In order to achieve success, these commitments, such as reducing carbon emissions by 20% by 2025 and 50% by 2030, must be cascaded down to every level of the organization, influencing daily operations and ensuring accountability.
At the same time, accurate data collection is essential not only for tracking progress but also for protecting against accusations of greenwashing. Companies are very mindful that consumer trust can be quickly eroded if their sustainability claims are not backed by hard evidence.
These insights were shared by representatives of some of the multinational brands at the event. On a panel focused on corporate climate strategy, the conversation turned to the need for companies to set climate targets and engage leadership to achieve these ambitious goals.
Luc Beerens, global sustainable sourcing director at Mars Inc., highlighted the advantage of being a family business. Mars is transforming how it sources key raw materials like palm oil, cocoa, fish, and grains.
“We recognize that fixing environmental issues is a generational challenge,” said Beerens. “At Mars, the family has embedded a set of sustainability KPIs including circular packaging and carbon footprint into the renumeration package of senior leaders, and human rights will soon follow.”
The key to agricultural resilience
One challenge consistently raised by panelists was how to align diverse stakeholders—ranging from farmers to corporate executives—under a common goal. This is particularly complex when working across a global supply chain that relies on the unique realities of local communities. Many companies are running pilot projects fostering engagement with farmers, allowing them to share expertise and adapt practices that best fit their local context.
Local engagement not only empowers farmers but also helps ensure the successful implementation of agronomic practices. Afterall, this is an industry where “one-size-fits-all” solutions rarely work. Whether producing coffee in Indonesia or milk in Brazil, agriculture is a place-based science, requiring tailored approaches for different regions and crops and leveraging the expertise of local agronomists who understand the unique challenges and relationships in each area.
Another key takeaway was the importance of building resilience into supply chains. Farmers who embraced agroforestry and income diversification through multicropping not only saw higher yields but were also better protected against climate shocks like droughts. By improving both farmer and supply chain resilience, companies can create more sustainable operations that are equipped to withstand future environmental challenges.
Areas for improvement
The panel agreed that achieving large-scale adoption of regenerative agricultural practices requires significant up-front investment. While private companies are stepping in to financially support this transition, there is a critical role for policymakers to play as well. Aligning subsidies with regenerative practices can help make the business case clear for farmers, encouraging more widespread adoption.
However, policies alone are not enough. Farmers need technical and financial resources to implement changes. Only by translating broad policy objectives into actionable steps can governments and financial institutions truly support the sustainability transition.
Last but not least, effective communication is essential to maintaining consumer trust. As sustainability initiatives grow in scale, companies are increasingly aware of the need to avoid greenwashing—where their efforts appear disingenuous or purely for marketing purposes. The panel agreed that more authentic communication strategies are necessary to engage both consumers and leadership effectively.
One innovative suggestion was creating platforms that connect farmers directly with consumers, helping bridge the trust gap and demonstrate the tangible results of sustainable practices. As companies continue to make progress in scaling up regenerative agriculture, opening their doors to consumers may become a key strategy in proving the legitimacy of their efforts.
The intelligent agriculture solution
In summary, the conversation around climate targets and sustainability strategies is increasingly focused on resilience, localized approaches, and the importance of up-front investment. While the challenges are complex—ranging from aligning diverse stakeholders to ensuring accurate measurement—the path forward is clear. Multinational brands must continue to engage with local communities, build resilience into supply chains, and measure and communicate progress transparently if they are to achieve their climate goals and maintain consumer trust.
When it comes to accurate data collection for measurements and proof points, the good news is that many players in the food supply chain are already digitalizing farming processes and services.
“The SAP Intelligent Agriculture solution helps agribusiness companies increase efficiency, improve data quality, and connect existing data sets to gain insights and support auditing tasks,” said Anja Strothkaemper, vice president of agribusiness and commodity management at SAP. Strothkaemper was speaking at the same event on the benefits of harnessing data for regenerative agriculture.
This post was originally published on here
