DNV: Sustainability Leads Procurement in Food Sector

Procurement teams in the food and beverage sector are under increasing pressure to overhaul supply chains.

The latest report by DNV, a leading assurance and risk management provider, confirms that sustainability now leads as the top priority for these businesses, surpassing cost efficiency and regulatory compliance.

The report, 'The Future of Sustainable Food Supply Chains: Spotlight on Europe’s Food and Beverage Industry,' highlights how environmental concerns, digitalisation and evolving regulations are reshaping procurement strategies.

Digital tools: Key to procurement and sustainability

Global food systems contribute a third of total carbon emissions, yet much of the industry struggles to adopt technological solutions.

Procurement professionals now face the challenge of integrating sustainability into their operations while ensuring cost-efficiency and compliance.

DNV identifies digital transformation as a critical enabler for progress. Tools such as blockchain, Internet of Things (IoT) sensors and advanced data platforms are increasingly essential for tracking sustainability metrics and improving supply chain transparency.

Michele Munaretti, Supply Chain Manager at DNV, explains: “By attaching connected sensors to goods and materials throughout the supply chain, the IoT can provide much-needed visibility into both sustainability and cost issues.”

This transparency becomes even more crucial as European regulations tighten. New directives like the Corporate Sustainability Due Diligence Directive (CSDDD) and the Packaging Waste Directive require businesses to ensure sustainability throughout the supply chain, including compliance with human rights standards and carbon reduction targets.

For procurement leaders, these changes demand a more holistic approach, blending technology with compliance efforts to stay competitive.

However, digital adoption remains slow. Despite 70% of businesses acknowledging digitalisation as a strategic focus, implementation rates for technologies such as IoT and blockchain fall short of the cross-sector average.

Improving these adoption rates could unlock significant opportunities for reducing environmental impacts and increasing operational efficiency.

Changing consumer expectations drive procurement changes

Consumer demand for sustainably sourced and transparently produced goods is reshaping procurement practices. Many consumers are willing to pay more for products aligned with their environmental and ethical values.

Retailers, particularly those with private-label brands, are placing increased pressure on suppliers to meet these expectations.

Nicola Somenzi, Head of Responsible Sourcing at Ferrero, stresses the importance of traceability: “Once supply chain traceability and visibility are ensured, environmental and social KPIs can be measured. But it all starts from identifying and knowing the position of your farmers and their plot of land.”

Ferrero works with thousands of farmers in remote locations, using satellite imagery to monitor sustainability compliance.

Similarly, Barilla leverages technology to reduce fertiliser and water use among its suppliers, promoting efficient farming techniques to drive eco-friendly agriculture.

Despite these advancements, adoption challenges persist. Barilla’s Group Purchasing Director and ESG Leader, Leonardo Mirone, notes: “Farmers are often reluctant to accept this. But, as costs for raw materials like fertiliser increase, sustainable approaches become more attractive.”

A path to sustainable sourcing

Collaborative partnerships are proving vital in advancing sustainability across supply chains.

Bolton Food, known for its canned tuna, offer a compelling example. The company collaborates with NGOs like Greenpeace and WWF on environmental issues and works with Oxfam to address social challenges in its supply chain.

Luciano Pirovano, Chief Sustainability Officer at Bolton Food, explains: “We have a motto in Bolton Food, which is ‘Partnership is our leadership.’”

The company has taken further control of its supply chain by acquiring its key supplier, Tri Marine, ensuring sustainability standards are met in remote locations such as the Solomon Islands.

This proactive approach highlights the importance of integrating sustainability directly into procurement processes. Vertical integration, combined with partnerships, enables companies to address both environmental and social issues more effectively.

While the food and beverage sector has made strides in prioritising sustainability, significant challenges remain.

DNV’s report highlights the immense potential for technologies like blockchain and IoT to revolutionise procurement practices by improving traceability, enhancing efficiency and minimising environmental impact.

As Geir Fuglerud, CEO of Supply Chain & Product Assurance at DNV, concludes: “The food and beverage industry faces an era of significant transformation as sustainability within the entire supply chain becomes an urgent priority. 

"This report is a blueprint for companies to address the challenges ahead, leveraging digital innovation to balance cost-efficiency and environmental responsibility.”

By combining regulatory compliance, advanced digital tools and collaborative partnerships, procurement teams can drive lasting change. The future of food supply chains hinges on adaptability, innovation and a clear commitment to sustainability.

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