Delivering Net Zero: A Directive Briefing for Leaders in the UK Food & Drink Sector
Mark Lumsdon-Taylor · Posted on: February 18th 2026 · read
The Future of Food series: Risk, Resilience and the Path to Sustainable Value Chains
The UK food and drink sector is entering a period of structural change unlike any it has faced in decades. At the recent Sustainable Foods conference, one message came through clearly: the sector’s future competitiveness will depend not on targets, but on its ability to build the practical systems that turn net zero from ambition into delivery.
With new sustainability reporting standards, packaging EPR, CBAM, shifting food safety rules and rising investor expectations converging at pace, the need for coordinated, cross‑value‑chain action is now urgent. This briefing sets out the directive steps industry leaders and Government must take to secure a transition that is both commercially viable and fair.
Directive Steps for Industry Leaders and Government
Build the Data Backbone
Establish a unified, interoperable data ecosystem across the value chain within the next 24 months.
Accelerate Low‑Carbon Infrastructure
Prioritise joint investment in the physical systems that enable decarbonisation at scale.
Align Financing with ROI
Implement blended finance models that recognise different payback periods for farmers, processors, and retailers.
Align Policy for Competitiveness
Reduce friction, increase clarity. Integrate ESG and non‑ESG standards into a coherent, long‑term policy framework.
Data as Strategic Infrastructure
The sector cannot meet emerging regulatory requirements without a unified, interoperable data ecosystem. SRS/ISSB demands consistent, auditable emissions data across the value chain, while EPR and CBAM require granular traceability. Fragmented methodologies will drive up compliance costs and undermine market access. A sector‑wide data backbone is now essential. Shared standards, digital traceability, and retailer‑supplier data alignment will reduce duplication, lower assurance costs, and unlock access to sustainability‑linked finance. Government must support SMEs with tools, templates, and standardised measurement frameworks to avoid systemic non‑compliance.
Low‑Carbon Infrastructure Requires Collective Investment
Decarbonisation is no longer theoretical; it requires physical transformation across logistics, manufacturing, and agriculture. Electrified fleets, hydrogen freight, energy‑efficient cold chains, renewable energy access, precision agriculture, and methane‑reducing technologies demand capital and coordination. Individual businesses cannot deliver this alone. Regional consortia, shared logistics hubs, pooled renewable procurement, and coordinated deployment of on‑farm technologies will accelerate progress and reduce costs. Government co‑investment and long‑term regulatory certainty are essential to de‑risk early adoption.
Financing Must Reflect Real ROI Across the Value Chain
Farm‑level decarbonisation often delivers long‑term ROI, while processors and retailers may see benefits sooner. Without blended finance, guarantees, and fair cost‑sharing, the transition will stall at primary production. Long‑term contracts, sustainability‑linked loans, and payments for ecosystem services can unlock investment and reward regenerative practices. Government should scale blended finance models and support the development of credible ecosystem services markets.
This is a competitiveness agenda. Early movers will define the market
Policy Coherence Is Now a Competitiveness Issue
Food businesses face simultaneous shifts in food safety rules, import regulations, regulated product frameworks, EPR, CBAM, and sustainability reporting. Fragmentation increases cost and risk. Alignment between UK and EU standards, stable long‑term regulatory signals, and reduced administrative burden are essential to protect export value and free capital for decarbonisation.
The Future of Food Series: Risk, Resilience and the Path to Sustainable Value Chains
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How MHA help clients with their ESG needs
Unlike other firms, we turn ESG compliance into business value, not just cost. Our full suite of services covers both mandatory and voluntary needs.
