Key Impact Points:

• 79% of executives reported at least 2% revenue growth from sustainability strategies.
• 74% achieved at least 2% cost reductions through sustainability investments.
• 60% of executives expect the value from sustainability strategies to increase over the next two years.

Why it matters:

Nearly all of the 350 food and agriculture executives surveyed by Deloitte and NYU Stern Center for Sustainable Business (CSB) acknowledged the financial value of sustainability investments. With agrifood systems responsible for one-third of global greenhouse gas emissions and 70% of freshwater usage globally, the need for sustainability is urgent. However, the business case for sustainability is just as compelling, with a majority of companies reporting tangible financial benefits.

By the numbers:

• 22% of Processors saw at least 5% revenue growth from investing in sustainability strategies
• 38% of Manufacturers reported utilizing sustainable and responsible supply chain sourcing as a cost-saving strategy
• 29% of Food Service providers identify sustainable sourcing programs as a top revenue-generating strategy
• 75% of Restaurants saw at least 2% cost reduction from investing in sustainability strategies
• 66% of Retailers expect value from sustainability strategies to increase over the next 2 years

The report found:

Companies that co-invested in sustainability efforts with other organizations often saw stronger financial performance. For example, 60% of companies believe they will continue to see increasing returns from their investments, while a significant proportion, 57%, reported losing business value due to delayed or insufficient investments in sustainability​.

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Strategic insights: Sustainability strategies vary across the food and agriculture value chain. For instance:

• Processors identified food waste management as the top driver of revenue increases.
• Retailers ranked sustainable packaging solutions as a major revenue booster.
• Food service providers prioritized energy management as the top cost-reduction strategy.

What they’re saying:

Tensie Whelan, Founding Director of NYU Stern CSB, commented: “Investing in sustainable and regenerative agriculture will enable companies to build more resilient and sustainable food systems to feed future generations and improve their financial performance.”

“If we don’t implement practice changes for lower-carbon milk, then our long-term penalty would be much greater because there won’t be a place on shelves for our product.” – Tim Leviny, Senior Vice President Dairy Foods GDI & International, Land O’Lakes

“Modeling conducted by third-party economists on the cost-benefit ratio of ag climate initiatives for McDonald’s US found that every dollar invested in mitigation generated nearly three dollars of benefits resulting in enhanced supply chain resiliency.” – Kendra Levine, US Sustainability Lead, McDonald’s

“Retailers serve as a catalyst for change. When consumers demand more sustainable products, they don’t start at the farm, they start at the store.” – Grant Sprick, VP of Climate & Environment, Ahold Delhaize

“There are a lot of assumptions around customer loyalty, brand, operational risk management, and stakeholder engagement. Anecdotally it helps, but we struggled to comprehensively quantify that value.” – Cargill

Looking ahead:

Although nearly all respondents said their investments drove value and laid the foundation for future success, the strategies taken to achieve financial value and methods of collaboration to execute the strategies vary across value chain segments.

As organizations adapt to growing climate-related pressures, sustainability investments will continue to play a critical role in driving business growth. Deloitte’s research underscores the importance of adopting sustainability initiatives to stay competitive and mitigate long-term risks.For more insights, read the full Deloitte report.