The Importance of ESG Trading in the Food Industry

The Importance of ESG Trading in the Food Industry

The Importance of ESG Trading in the Food Industry

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Philadelphia, PAThe Importance of ESG Trading in the Food Industry - Philly is well-known for its food, including classics like the cheesesteak, and it has some incredible restaurants and eateries waiting to be explored. While that’s all good and fun, wouldn’t it be amazing if the city could also be known as a pioneer of sustainability?

As we move forward in 2023, it’s clear that we need to make some radical changes and start looking after our planet. Things aren’t looking great, and companies in the food industry must take accountability. One way that this can be done is via ESG trading.

Now, this is a general phrase, and ESG trading can actually be used in many ways. The primary way is ESG investing⎯where the term is meant for choosing your investing and trading options in an ethical and eco-friendly manner. However, it can also apply in terms of general business and how you trade with other companies, such as your suppliers. In this article, we’ll explain ESG trading and why it is important in the food industry.

What is ESG Trading?

ESG = Environmental, Social, and Governance.

These are the three key factors one must consider when trading, and it’s the process of making wise business choices and investments that reflect these three things positively. As a business, you want to have a positive environmental impact, contribute to the betterment of society, and only deal with companies that govern themselves ethically and responsibly.

By doing this, you can operate sustainably and promote a positive attitude to other companies so that the ESG mantra can grow. Below, we’ll break down the three main factors of ESG trading.


  • Do they support climate change?
  • What is their carbon footprint?
  • Are they trying to offset their carbon footprint?
  • Is the company water and energy efficient?
  • Are they promoting sustainability within their supply chain?

The environmental factor looks at if a company is trying to operate sustainably without causing additional damage to our planet. It basically looks to see if a company is making changes and heading in the right direction towards things like reducing their carbon footprint and creating a sustainable business.


  • Do they provide equal opportunities for everyone?
  • Do they have strong human rights support?
  • Do they have good health and safety practices and policies?
  • Do they have a diverse workforce?
  • Does the company strive for social betterment?
  • What are the working conditions?

The social factor is concerned with how the business acts in relation to the community and its workforce. Ideally, you’ll only want to work with businesses in the food industry that give equal opportunities and are essentially, fantastic companies to work for.


  • Does the company have a positive history?
  • Is there any history of lawsuits or unethical practices?
  • How is the company hierarchy structured?
  • Is the company involved with any industry regulatory bodies?
  • How does the company pay scale work?
  • If the company has a Board, are they driving for positive change?

Lastly, the governance factor concerns how the business operates, including its ethos, structure, and employment history. It looks at whether they have a positive and ethical mentality from the top down, including the CEO and Board members.

How Does ESG Trading Work in the Food Industry?

As you can see, the three principles of ESG trading can be applied to the food industry. Many companies, from the Nipotina Sandwich Shop to the various burger joints in Philly, can all make a change and start working towards making the world better.

It starts with how you trade within your company and how you operate. A great thing to do is to look at the questions above for the three different pointers and see how you are faring. From there, you can look at areas where you can start to make changes.

For example, you could look at reducing the carbon footprint and emissions that your restaurant or establishment creates. You could then look at the suppliers of your produce and ingredients and see how they operate and if you should switch to suppliers that are more sustainable.

This will take time and effort, but you can then promote your restaurant as a sustainable company and one that is striving for change⎯in today’s world; this is a huge positive.

Consider ESG Trading Today to Become an Eco-friendly Business

As you can see, ESG trading, in its various forms, is incredibly beneficial and something all businesses must strive for so we can build a better future.

The traditional sense of the phrase is vital so that investing can be done in a more sustainable manner. However, it’s also hugely important for the industry⎯we need to weed out the businesses that are not operating sustainably and push through change so that future generations can benefit.

This is even more true in the food industry as growing and harvesting crops and rearing animals has a huge impact on the environment, and lots of ethical consequences are involved too.

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