How social enterprises are stimulating future-proof food
19/10/20
Healthy and sustainable food systems
The COVID-19 crisis has reinforced the vital importance of having a properly functioning food system. As consumer needs and logistical routes change, people are looking for new ways to experience and enjoy their food. The pandemic is also accelerating broader developments with regards to healthy and sustainable food alongside the Climate Agreement and European Green Deals. A new publication by PwC and Impact Hub Amsterdam reveals the major role that social enterprises have to play in designing a future-proof food system.
Social enterprises
People and organisations throughout the food chain are actively seeking to make our food system more sustainable and healthier. Prime examples include circularity, short and fair value chains, the protein transition, regenerative agriculture, biodiversity and innovative technologies.
“Social enterprises are realising production that is friendlier to the environment and climate, reduces waste and has a greater focus on animal welfare,” says Bert Graafsma, Agrifood specialist at PwC. “They have made these types of social issues a focal point in their operations and aim to have an impact based on a financially healthy business model. Social enterprises are also joining forces with multinationals, combining their drive and innovative strength with the scale, knowledge and expertise of large companies. This results in clear win-win situations.”
Off the beaten track
To gain an insight into the very latest developments in the food system, PwC and Impact Hub Amsterdam carried out desk research and established an overview of trends from previous studies. This was followed up by interviews with nine social enterprises and discussions with ten experts from across the food system. One of the key takeaways found in the resulting report – which is called ‘Off the beaten track’ (Buiten de gebaande paden in Dutch) – is how successful entrepreneurship and innovation requires room for experimentation and failure.
“Social enterprise owners see it is as crucial that intrapreneurs – entrepreneurial people within organisations – are able to think and act outside the box,” Graafsma explains. “They must feel safe to work on the necessary changes. A concrete way to realise this is to establish an in-house incubator, a dedicated location for experimentation and innovation.”
Social and ecological KPIs
Organisations and companies working together need to have a shared language that makes clear what both parties consider to be value creation. Graafsma: “Are we talking about profit? Happy consumers? CO2 reductions? Circularity? And what if these goals don’t go together? Companies must formulate concrete aims and establish support within the organisation with regard to the various aspects of value creation. The experience of social enterprises suggests that businesses should anchor their social and ecological goals using KPIs in the same way they do with economic KPIs.”
From the core
With so much on their plate to improve food systems, the temptation arises for companies to start a wide range of sustainability projects at the same time. “Social enterprises have shown that the greatest impact can actually be achieved when organisations focus on initiatives from within the core of their company,” says Graafsma. “In other words, it’s better to change current working methods than compensate for any damage caused after the fact. Having the right partners is essential. Which clients are your focal point? Who are your suppliers? What about project partners?” their operations and aim to have an impact based on a financially healthy business model. Social enterprises are also joining forces with multinationals, combining their drive and innovative strength with the scale, knowledge and expertise of large companies. This results in clear win-win situations.”
The big picture
The report also reveals how successful social enterprises find and place effective solutions within the wider context of social challenges. “Food supply is a complex system in which all aspects are interconnected and each has an impact on everything else,” adds Graafsma. “When implementing something that will support a sustainable and healthy food system it is essential to carefully consider which parties are involved and how your actions will affect the rest of the system.
“The pandemic has clarified just how many links are involved in our food chain to get food from farm to fork and how complex the system can be. The closure of hospitality businesses left producers with excess stocks, creating space in the food system for innovative initiatives to get products directly to consumers.”
Launch customers
Social enterprises indicate that working with larger organisations in the early stages of growth enables them to make more significant contributions to a future-proof food system. These larger companies can act as launch customer for social enterprises with an innovative food product.
“As well as accelerating demand for future-proof food, the innovative methods of the social enterprise may inspire the first buyer,” Graafsma continues. “From an investor’s perspective this kind of cooperation can be used to financially support small, innovative and high-impact initiatives. Banks, foundations and private capital providers could develop an integrated proposition for the various stages of capital demand, spread the risks and accelerate the overall impact.”
Winning ways
As social enterprises often start out in a niche market, they need to recognise that people will not automatically choose the most sustainable or healthiest product. “Consumers have to be won over step by step before a shift will be seen,” says Graafsma. “Giving consumers the chance to get used to innovative products will eventually lead to an increase in consumption and contributions to a future-proof food system. Social enterprises have to look at what will be needed in the future, be a frontrunner with their products and help generate greater awareness of the role that food plays in our overall health.”
Changing behaviour
Although stimulating behavioural change is often seen as a task for governments, social enterprises illustrate the potential within every organisation to influence people and strive together for a healthier and more sustainable food system. “In addition to selling products and services, social enterprises often see it as their mission to convince consumers of the need for change,” Graafsma concludes. “Partnerships are a good way to encourage behavioural change via cross-pollination and shared learning. Challenging each other to have a more positive impact in this way will ultimately reap rewards for us all.”
Related content
Contact us
Follow us
