ESG Compliance for Food Producers: What Retailers Will Really Be Looking for in 2026
From a “nice-to-have” to a deal-breaker
Just a few years ago, sustainability was a nice bonus to mention in discussions with buyers. Today, it’s often the first thing they ask about. Any food or agrifood producer looking to enter the German or Austrian food retail market who cannot demonstrate ESG compliance is often eliminated in the first round of the supplier questionnaire.
ESG stands for Environmental, Social and Governance. It sounds abstract but in practice, it is a fairly specific list of documents, key performance indicators and evidence that many retailers now want to see.
Why ESG is a top priority for retailers
Three developments have significantly increased the pressure in recent years:
The CSRD (Corporate Sustainability Reporting Directive) requires large companies—including all major retail chains—to provide detailed sustainability reporting. Retailers are passing this pressure on to their suppliers in full.
The German Supply Chain Due Diligence Act (LkSG) and the EU-wide CSDDD require companies to assess their entire supply chain for human rights and environmental risks.
The EUDR (EU Deforestation Regulation) prohibits the sale of products linked to deforestation as of the respective effective dates—including, among others, coffee, cocoa, soy, palm oil, and beef.
In other words: Retailers are increasingly held personally liable for what is on their shelves. So they are demanding proof—complete and thorough.
What customers specifically expect from you
The supplier questionnaires from the major DACH retailers (REWE, Edeka, Spar, Hofer/Aldi, Billa) consistently highlight the same requirements:
In the Environment (E) section:
a carbon footprint broken down by Scope 1 (direct emissions), Scope 2 (purchased energy), and, increasingly, Scope 3 (upstream and downstream supply chain)
a sustainability policy with clear goals and KPIs
Documentation on water, energy, and waste management
Packaging strategy (recyclability, material reduction)
Evidence of EUDR compliance for the relevant raw materials
In the area of governance (G):
Clearly defined responsibilities (who is responsible for ESG within the company?)
Supply Chain Risk Analysis
Action plan with specific steps and a timeline
Regular internal reviews and updates
Does that sound like a lot? It is—but it can be built up systematically. And the effort pays off, because the same documentation works for every retailer.
The most common mistakes
Aus der Beratungspraxis sehe ich vor allem drei Muster:
1. They’re starting too late. ESG documentation can’t be put together in two weeks. A robust Scope 3 carbon footprint requires data from the entire supply chain—and that data has to be collected first.
2. A PDF is created, but not a system. A one-time sustainability document is no longer enough today. Retailers want to see that ESG is actually being put into practice within the company—with KPIs, regular updates, and transparent actions.
3. Suppliers are not being involved. Scope 3 and the Supply Chain Act only work if upstream suppliers are on board. Anyone who ignores this will run into problems during the audit.
Sustainability isn’t just an add-on. It’s a prerequisite.
I help food companies build a structured approach to sustainability – with an ESG strategy and documentation tailored to your business. Supply chains that you can understand, explain and substantiate. And evidence that actually convinces retailers, investors and regulatory bodies.
I guide you through EcoVadis assessments, take on the role of external sustainability officer if required, assist you with EUDR and Supply Chain Act requirements – and work with you to build the ESG documentation you really need: code of conduct, guidelines, supplier questionnaires, carbon footprint, KPIs.
Sustainability that stands the test of time. Not just on paper.
If ESG is part of a bigger strategy for you
For brands looking to enter the German or Austrian retail market or expand their product listings, we also offer the Retail-Ready Check – a targeted analysis of exactly what you need for your target retailer. ESG considerations are firmly integrated into this process. We review what you already have in place, compare it with your target retailer’s specific requirements, and provide you with a roadmap showing which documents, certifications and key performance indicators you need to put in place before listing.
As part of the Retail-Ready Launch implementation package, we also work with you to develop the complete ESG documentation: Code of Conduct, Sustainability Policy, Supplier Questionnaire, carbon footprint, risk analysis, action plan and KPI overview.
ESG is not just one compliance item among many. Today, it is often the first factor determining whether market entry succeeds — or fails.
