b'THE RISK CORNER BY: DAVID ZARUKAN ESG OPPORTUNITY?C orporate ESG (Environmental,the food chain, upon the farmer (fewerthey will be creating. agricultural yield Social and Governance) perfor- pesticides, reduced fertilisers, water man- To avoid a major mance measurements have recentlyagement, regenerative techniques). Ofdecline following the implementation of polarised the business community. Manycourse, food companies are also demand- Farm2Fork, the European Commission see it as the next evolutionary step in cor- ing that farmers grow abundant qualitysuddenly fast-tracked regulatory support for porate citizenship after product stewardshipfood at prices they are willing to pay them.new genomic techniques (NGTs). To tran-and Corporate Social Responsibility whileEarlier this year, I spoke to farmers strug- sition to this more sustainable food system, others see it as an activist imposition ofgling to meet a major food manufacturersthey realised the need for better seeds. The certain subjective concepts of sustainabilitydemand to be supplied with no-till potatoesEuropean Commission acknowledges that encouraged by consultants and investment(an agricultural technique that would offerNGTs allow precise and efficient develop-fund managers.them more ESG points). It should come asment of improved plant varieties that can be Certain critical attacks in the invest- no surprise that many farmers dont care tooclimate resilient, pest resistant, require less ment world, legal challenges and a polit- much for corporate bean counters and theirfertilisers and pesticides, or ensure higher ical backlash in the U.S. have slowedideas of sustainability.yields.the growth of ESG as a corporate game- This trend of imposing sustainabilityEvery food company and processor who changer. But while the recent backtrackingdemands up the value chain, to the sourceare themselves striving for a more sustain-by American investment firms would sug- of production, is not only an agri-foodable food supply chain should understand gest that ESG has passed its moment, thisphenomenon. It is also being imposed, forthat farmers would be unable to comply year the European Commissions Corporateexample, on the production processes in thewithout better seeds. Like the European Sustainability Reporting Directive (CSRD)textile, IT, and automotive sectors. AfterCommission, that was rather slow to the has come into effect, demanding that everydecades of global supply-chain cost-cut- party, the food chain needs to be aware that company of a certain size comply to reportting demands that have created social andfarmers cannot meet such demands without on the social and environmental risks theyenvironmental pressures and compromisesbetter seed technologies.face, and on how their activities impacton suppliers, downstream users are nowSeed breeders need to step up and people and the environment.insisting this chain become more sustaina- engage in the discussion and meet the This process though is not just a tick- ble. But unlike an offshore textile factory orchallenges of a transition to a more sustain-box table that a company needs to fulfil or aa chemical converter, a farmer only has soable food system that the ESG framework series of checks to ensure their labs are safe.much room and budget for innovation andis imposing. Rather than food companies If that is how CSRD is interpreted in a seedautomation. putting unrealistic pressure on farmers, they company, then the organisation is not veryThis creates a problem, a challenge, andshould be speaking with agronomists and forward-looking and will likely not do wellan opportunity: How can we have more sus- seed breeders to understand what is pres-long-term. tainable food that is still sufficient and at aently possible and where opportunities for reasonable cost (to the consumer, the farmerinnovations exist.THE ESG CHAIN and the environment)? I once asked a group of seed research-In an integrated food chain, a demand toers how often they spoke with food proces-create a more sustainable food and agricul- SEEDING SUSTAINABILITY sors, companies, and retailers and they ture system will ultimately come back toMany people with offices in high build- just smiled. But these researchers are the the seed. Food manufacturers and proces- ings are calling for an urgent transitionones who can provide the sustainable solu-sors are going through their ESG reportingto a more sustainable food system and aretions the food industry is demanding. ESG process and are quick to conclude that theyguiding ESG measurement tools towardis an opportunity for the entire food chain, can be more sustainable if they source morethis objective. The European Commissionbut it starts with the seed.responsibly, i.e., pass the responsibility foritself has presented its Farm2Fork strategyThe next time people in your organ-reducing the environmental impact of thewithin its Green Deal legislation withinisation roll their eyes about another ESG food they process, package, and distributesuch ambitions. But in arbitrarily restrictingor CSRD requirement, remind them that upon the farmers who grow them.crop protection tools, in reducing fertiliserthe seed industry holds the key to a more To earn ESG points then, the down- inputs and prioritising organic farming, thesustainable food system. stream users are imposing restrictions upregulators have realised the yield problem 26ISEED WORLD EUROPEIEUROPEAN-SEED.COM'