The implementation of ESG (Environment, Social, Governance) criteria is becoming one of the most significant transformations within the European food industry. Starting in 2025, more than 50,000 companies across the European Union will be required to report annually on their environmental, social and corporate governance performance, under the Corporate Sustainability Reporting Directive (CSRD).

According to the European Commission (DG FISMA, 2025), the objective of this measure is to standardise reporting practices and increase transparency throughout food supply chains. Processors will need to publish clear indicators related to energy consumption, emissions, food waste, labour conditions and ethical sourcing practices.

OECD (2024) data show that companies adopting these standards early benefit from an average 12% increase in market value and lower financing costs. At the same time, ESG reporting is becoming an eligibility requirement for accessing EU funding through programmes such as InvestEU and Horizon Europe Green Transition.

In Romania, the Ministry of Agriculture and the Ministry of Economy are working together to adapt ESG obligations to the specific needs of the food sector. Over 600 large companies will fall directly under the new reporting rules, while another 2,000 will be indirectly affected as suppliers to major retailers or processors.

A recent PwC report (2025) reveals that only 28% of Romanian food companies currently have internal systems for collecting ESG data, and 60% consider implementation costs to be a significant barrier. Nevertheless, market and investor pressure is accelerating the shift toward more sustainable business models.

According to Eurostat (2025), demand for ESG-certified products has increased by 15% across the European market, particularly among young urban consumers. For processors, aligning with these standards is no longer just a matter of reputation—but a condition for competitive survival. In Europe’s evolving food economy, sustainable performance has become an integral component of profitability.

(Photo: Freepik)