How are Singapore food producers faring in sustainable sourcing?

F&N was the top-performing Singapore-listed food producer in sustainable sourcing.

Three Singapore-listed food producers, F&N, ShengSiong, and QAF, fall short in sustainable sourcing, as revealed by the Asia Protein Buyers 100 report by Asia Research & Engagement (ARE).

F&N was the top performer among the three companies, achieving Tier 4. Companies or “buyers” in Tier 4 are those “developing efforts” for sustainable sourcing, with a score between 10% and 24%.

ARE said Tier 4 companies are “taking initiatives towards responsible protein sourcing but lacking long-term strategies supported by policies and targets.”

ShengSiong landed on Tier 5 or companies “showing awareness,” whilst QAF was in Tier 6 or buyers “at the starting blocks.”

ARE explained that Tier 5 companies are those “beginning to recognise sustainability concerns in protein sourcing but not yet taking proactive steps towards positive impact,” whose scores range between 5% and 9%.

Meanwhile, Tier 6 companies are “largely unaware of the sustainability risks and opportunities within their protein sourcing,” scoring below 5%.

ARE scores companies or buyers on  40 indicators encompassing 10 themes, including governance, traceability & sourcing, labour & just transition, climate change, water & waste, and protein diversification.

No company landed on Tier 1 (Driving Transformation) and 2 (Advancing Steadily), and only food producers from China (2), Japan (4), and Thailand (4) achieved a Tier 3 ranking.

ARE said no company achieved a passing score above 50%. The highest score attained by a buyer on the list was 46%.

“It is disheartening that none of the 100 protein buyers achieved a passing score, but there has been significant progress since the publication of our 2022 Baseline Benchmark report," ARE said.

"At that time, there was little acknowledgement among Asia’s protein buyers of responsible antibiotic usage, animal welfare, or sustainable seafood sourcing, and virtually no awareness of the link between animal feed and deforestation,” ARE added.

ARE concluded that Asia's food buyers have yet to fully address their supply chains' social and environmental impacts and dependencies.

Nonetheless, forward-thinking buyers are investing in a better understanding of their value chains and the competitive potential of responsible and sustainable supply chains, which will help them identify and mitigate risks and foster better customer relationships.

F&N, ShengSiong, and QAF fall short in sustainable sourcing efforts, according to ARE's latest report.