Environmental and Social Governance (ESG), how should IBO visualize its evolution? Time for a re-check?

By Mario Steta, IBO Chairman

During the past days, we have heard that a top headhunter firm in London reported delays or cancellations of ESG job searches, reflecting a political climate where some perceive ESG elements as excessive, prompting companies to backtrack. We see that complexity as a result of certifications and customer requirements is made evident by a berry company that delivers to its customers in a major global region by using less than 300 SKU’s, while another region, a third in size, requires around 2,000 SKU’s. Or that a 100-hectare grower in Morocco needs to comply with seven certifications to meet customer requirements in Europe, being an example of complexity that often leads growers to focus on paperwork instead of meaningful improvements.

There is also a divergence in some Organic certification bodies’ rules that over complicates, e.g. whether growing in pots is allowed, whether airfreight can be sold as Organic, or if the same Company can have an organic farm and a conventional farm in the same country, even if they are 500km apart! 

Some of these situations are a result of some European retail chains creating their own certifications (some of them with MRL’s that are different to legal requirements) responding to commitments to reduce environmental impact and improve worker conditions, but leading to higher costs and more complexity for growers, distributors, and buyers. Fortunately, there seems to be a growing consensus on the need for more logical and sensitive approaches to regulations, with the EU acknowledging the need to review sustainability norms and elements of the Green Deal after last summer farmers protest and finally delivering on actions like the just announced “omnibus” changes related to the Corporate Social Responsibility Directive.

We have all seen the value of standards, certifications and audits for the produce industry globally, starting with food safety in the 1980’s, evolving into social standards in the 2000’s and building up on sustainability through the past decades but particularly in recent years because of the reality of climate change, increased drought conditions and the need for stronger enforcement on labor conditions.

With European consumers being the most sensitive to eco and environmental issues (Kantar 2022) and with five environmental topics within the top 10 risks visualized by economic leaders looking into 2033-34 (World Economic Forum), no doubt the role that Europe has taken in leading the global environmental agenda needs to be recognized, valued and supported.

While at IBO we believe our focus must be centered on minimizing environmental impacts, and on improving the lives of our workers and of the communities we interact with, it seems that today it is the process that rules and not the outcomes.

So, what to do? Regions like North America, through entities like United Fresh and Produce Marketing Association some years back, and now through the International Fresh Produce Association (IFPA), have been able to unify the value chain, connecting the needs of growers, customers, suppliers, government and NGO’s to respond to consumer needs and expectations on this matters.

Other global regions have similar structures in place. So, the challenge is to find venues that provide this opportunity where this connection is not happening, Europe being the one key example. What to do? How to evolve? We have some ideas that can, and will, support IBO’s commitment to improve and solve the situation described, but would certainly appreciate your thoughts!

On a final but separate topic, as this Editorial is been finalized, the implementation of tariffs by the USA to Canada, Mexico and China has started and is being enforced. Without deepening the animosity of what this is generating either being for or against the tariffs, we do want to reiterate that IBO is committed to open and fair trade, and that if there is one crop that demonstrates how this has benefited consumers and growers precisely in the USA and many other regions of the world, it is no doubt blueberries!

07.03.2025

IBO