Why food and beverage firms must link climate targets to financial KPIs

The food and beverage industry stands at a crossroads. The transition to a low-carbon economy represents one of the most disruptive shifts the sector has faced in decades, reshaping everything from product design and technology to supply chains, logistics and real estate. Yet, new Risilience-commissioned research reveals a critical disconnect: fewer than half (44%) of food and beverage companies link their climate targets directly to financial KPIs.

This gap matters. Without financial quantification, sustainability remains an aspiration rather than a driver of enterprise value and climate resilience.

A growing gap between ambition and financial integration

While awareness of climate and nature risk is rising, most food and beverage companies still struggle to integrate it into the financial systems that determine performance and investment. According to the Risilience Climate and Nature Risk Report 2025, nearly all (95%) of boards report that climate is a topic of conversation, with 63% discussing it very frequently. However, while 93% of firms have embedded climate considerations into enterprise risk management and 95% are investing in net-zero initiatives, the majority have not translated those efforts into measurable financial outcomes.

This lack of financial connection exposes a vulnerability: climate risk is still treated as an environmental issue, not a financial one. Businesses that fail to embed climate and nature targets into financial KPIs risk missing the opportunity to turn sustainability into a driver of long-term value, resilience and competitive edge.

The data stresses this point. A third (33%) of food and beverage firms report inconsistent frameworks across their operations, and despite more than a third (37%) of capital expenditure already being aligned with sustainability goals, the ability to demonstrate ROI remains limited.

Why financial quantification is key to climate resilience

For a sector defined by thin margins and complex global supply chains, financial quantification of climate risk is no longer optional. The ability to understand, model and report on climate and nature risk in financial terms enables companies to make confident, data-driven decisions, aligning sustainability performance with shareholder expectations and strategic growth.

Embedding climate risk into finance-grade models allows organisations to evaluate not only the cost of inaction but also the value of adaptation. It turns transition risk into strategic foresight, revealing where investment in low-carbon operations, resilient sourcing and supplier collaboration can unlock measurable enterprise value.

Risilience’s analysis shows that organisations linking climate and financial metrics are better equipped to secure capital, strengthen investor confidence and meet evolving disclosure requirements. Integrating climate and nature into finance and governance systems transforms resilience from a narrative into a quantifiable business advantage.

Sustainability, when evidenced, provides a market differentiator that can lead to growth. According to NYU/Stern’s Sustainable Market Share Index, sustainable products outperform conventional products in the consumer packaged goods sector with annual growth rates of 12% vs 5% for conventional products. And in the clothing sector, sustainable fashion is growing at 23% a year, compared with around 6% for global fashion products, as reported by Global Market Insight 2025.

Turning commitment into competitive advantage

For food and beverage firms, the next step is clear: move from ambition to integration. To close the gap between climate goals and financial outcomes, companies should:

• Embed risk into enterprise governance and finance systems to ensure climate and nature factors influence every investment decision

• Build finance-grade models that communicate ROI and enterprise value alongside other business metrics

• Address Scope 3 emissions through aligned incentives, supplier data, and procurement governance

• Integrate nature alongside climate in strategy and disclosure to reflect full-spectrum business risk and opportunity

From risk to ROI

The imperative to food and beverage business leaders is clear. Accurate and reliable financial quantification of future scenarios and outcomes, including how sustainability plans will mitigate potential downsides and optimise commercial opportunities, are all critical insights for commercial success.

• Listen to the Food & Drink Federation (FDF)-hosted webinar ‘From Risk to ROI: managing climate and nature risk to strengthen business resilience’ featuring speakers Nick Brown, ESG Director at Premier Food, and Tom Sadan, VP Sales, Risilience in conversation with Emma Piercy, Head of Climate Change & Energy Policy at FDF, as they share real-world insights and practical steps businesses can take.

• Download the Risilience-comissioned and independently-conducted Climate and Nature Risk Report 2025 to explore how global corporates have responded to climate and nature risk in the wake of geopolitical and economic uncertainty. The survey polled more than 500 senior sustainability and finance executives across the US, UK and Europe on how global businesses with an annual turnover of $700m to $50 billion+