Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. The companies which are on focus haven’t disclosed any non-financial performance data or sustainability data.
The food trucks market can attract investment from an ESG perspective by ensuring to reduce negative impacts stemming from their activities affecting the E (Environmental) and S (Social) aspects of ESG. However, the given sector has grown and became a staple source of food for youth (16-34 years old) and does have both environmental and social impact. Greenhouse Gas (GHG) emissions have been one of the concerns in terms of the environmental impact, as food trucks emit GHGs which causes negative impact for the environment. Government has encouraged consumers to use local vendors and support local communities which gave room for this segment to grow in the times of COVID. Using plastics and paper from packages to menu cards have been reduced due to new regulations. Optimum utilization of energy and resources have also been a vital factor for this sector, using renewable energy like rooftop solar panels and low-cost sinks which are portable. Responsible marketing is also a critical area for this sector to ensure business growth, social media platforms could be the best source for the same. There has been a trend of change from conventional food trucks to Electric vehicles which is an innovative transition. Further, this market can influence ESG from the perspective of the United Nations Sustainable Development Goals (UN SDGs).
The main ESG trends are discussed as follows, monitoring and addressing GHG emissions from their activities is one of the major concerns for conventional food trucks to consider. Similarly, efficient resource use and utilization of renewable energy can reduce the GHG emission or carbon footprint to an extent. As there is a transition from conventional Internal Combustion Engine to Electric vehicle, introduction of built in Internet of things (IOT) food trucks are also upgrading to the similar innovative space (SDG 9- industry, innovation, and infrastructure). This can significantly reduce fleet emission from trucks . This sector is also making significant progress in renewable energy (SDG 7- affordable and clean energy) using rooftop solar panels and low-cost portable sinks. Supporting local communities (SDG 11- Sustainable cities and communities) and vendors have been one of the important aspects of the food truck sector during the time of pandemic. Another major factor that impacts the business is responsiblemarketing (SDG 12- responsible consumption and production), with wide use and expansion in social media this segment can benefit as there is potential marketing option like paid promotions in Instagram or Facebook, food vlogging etc.
Food truck industry faces many challenges including environmental and social impact; starting with fleet emission has been one of the main concerns as rising GHG emission has a negative environmental impact. There is a necessity of transition of conventional technologies to a more sustainable and responsible technology which is in cohesion with business strategies. Many companies can’t afford this transition as it requires certain capital which might not be suitable from revenue generated. In addition to this, transition to EV or renewable energy the maintenance cost could be higher on a long run. Avoiding or minimizing plastics and paper from menu cards to packages have been a very difficult path as sustainable packaging also might not be affordable from the producer's end which in turn increases cost for the product.
Food Trucks market has been prevailing with higher demand with youth as target audience and it has been a staple source of food for fast-paced lifestyle. Despite the online food market, food trucks have been gaining attention as the growth is coupled with sustainable innovation and technology like EV’s, solar powered renewable energy, built-in IOT’s etc. The company sector has been valued at a market cap of 3.93 billion USD in 2020 and compound annual growth rate is expected to grow at a rate of 6.8% by 2028.
• Prestige Food Trucks
• United Food Trucks United
• LLC, M&R Trailers
• VS VeicoliSpeciali
• Futuristo Trailers
• MSM Catering Trucks Manufacturing
• The Fud Trailer Company
• Food Truck Company B.V.
• Bostonian Body, Inc.
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
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• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the foods trucks space, globally
• Key insights into environmental developments and ESG issues affecting the theme
• Identifying ESG risks and opportunities to business among leading players in the food trucks market
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector
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