Search Climate Insights Directory

The document examines how illegal or unethical business practices in food supply chains lead to severe financial, legal, and reputational damage. It highlights that supply chain crises often affect entire industries, not just individual companies, and that government intervention—such as EU 'yellow cards'—can result in significant market losses. The paper advocates for a shift toward transparency and the use of third-party audits to rebuild consumer trust. It specifically emphasizes 'pre-competitive collaboration,' where competing firms work together to solve systemic issues, citing the Global Salmon Initiative as a successful model. Finally, it outlines the growing role of ESG ratings and financial disclosures (e.g., TCFD and TNFD) in rewarding companies that proactively manage their environmental and social risks.