Building resilience through sustainable food systems: why data and disclosures are vital for managing systemic risks
Kate Elliot, Head of Ethical, Sustainable and Impact Research, Greenbank Investments, part of the Rathbones Group
Note: The views expressed on these pages are the opinions of their respective author(s) only and do not necessarily reflect the views and opinions of UKSIF.
This website should not be taken as financial or investment advice or seen as an endorsement or recommendation of any particular company, investment or individual. While we have sought to ensure information on this site is correct, we do not accept liability for any errors.
Building resilience through sustainable food systems: why data and disclosures are vital for managing systemic risks
Kate Elliot, Head of Ethical, Sustainable and Impact Research, Greenbank Investments (part of the Rathbones Group)
In an era marked by climate instability, rising health costs, and growing inequality, the food system sits at the intersection of some of the most pressing global challenges. From environmental degradation to diet-related diseases, the way we produce, distribute, and consume food has profound implications, not just for public health and planetary wellbeing, but also for economic stability and investor returns.
The publication in July 2021 of the National Food Strategy, a ‘farm to fork’ review of England’s food system, provided the perfect catalyst for Greenbank to build on our existing partnerships and engagement work with the Food Foundation to establish The Investor Coalition on Food Policy. Now supported by over 30 investors, the coalition has been instrumental in pushing for policy reform that aligns public health, environmental sustainability, and long-term financial resilience.
The case for investor engagement in food policy
Food systems are deeply intertwined with global health, climate, and economic outcomes. Poor nutrition contributes to one in five deaths globally, while obesity costs the UK an estimated £58 billion annually. At the same time, the food system is linked to:
• 70% of freshwater withdrawals
• 80% of global deforestation
• 26% of greenhouse gas emissions
These impacts translate into tangible financial risks for food businesses via supply chain disruptions, increased compliance costs, and risk of litigation. It is these impacts, and the broader systemic risks they contribute to, that have led investors to increasingly recognise that a failure to transition to healthier, more sustainable food systems threatens long-term value creation. The investor case for engagement on food systems is explored in more detail in our recent report.
The role of the Investor Coalition
The Coalition’s work has been guided by two core principles:
1. Transparency: Investors need consistent, comparable data to understand how companies are contributing to or mitigating systemic risks.
2. Policy engagement: Market forces alone cannot solve structural issues like poor nutrition or environmental degradation. Policy environments and appropriate regulation are essential to create the right incentives for sustainable action.
The importance of mandatory reporting
One of the Coalition’s core aims is to improve the quality and consistency of sustainability data in the food sector. To date, health-related reporting in the food sector has been voluntary and inconsistent. Companies use different metrics and definitions, making it difficult for investors to compare performance across the sector, effectively assess risks and opportunities and then hold businesses accountable via our engagement activities.
The announcement earlier this year that the UK Government had committed to new reporting requirements for all large food sector companies was therefore a positive step forward. This world-first policy, announced in its Fit for the Future: 10 Year Health Plan for England, is a major win for transparency and public health.
Under the new plan, large food companies will be required to report healthy food sales using standardised metrics, enabling the government to set targets to improve the healthiness of food sales across all communities. These targets will be mandatory for companies, but they will have the flexibility to decide how to meet them – whether through reformulation or expanding their range of healthy products. The approach balances accountability with innovation, encouraging companies to invest in healthier offerings without prescribing a one-size-fits-all solution.
More broadly, the push for mandatory reporting comes at a time when some companies are scaling back what they say about sustainability to avoid scrutiny or backlash. And planned or enacted rollbacks in regulation and reporting requirements across broader sustainability issues threaten to undermine progress on climate and health.
By making reporting consistent and universal, it creates a level playing field for companies and enables investors to make informed decisions and direct capital toward companies that are genuinely contributing to public health and sustainability.
In this context, the UK’s commitment to food sector transparency is a powerful signal. It reinforces the importance of consistent, comparable data and shows that government and investors can work together to drive systemic change.
Note: The views expressed on these pages are the opinions of their respective author(s) only and do not necessarily reflect the views and opinions of UKSIF.
This website should not be taken as financial or investment advice or seen as an endorsement or recommendation of any particular company, investment or individual. While we have sought to ensure information on this site is correct, we do not accept liability for any errors.
