Ice Cream Industry ESG Thematic Report, 2023

Environment, Social and Governance (ESG) in the Ice Cream Industry

Ice cream industry is one of the few markets where demand has been reported to be high. Changes in lifestyle is one of the factors that drive the market in the commercial aspect. However, there are challenges to the industry in terms of both environmental and social aspects. The packaging waste and the value chain emissions impact the market in terms of environment, whereas the adverse effects of consumption of products negatively affects the social aspect of ESG.

The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

A wide range of challenges pose to the industry in terms of ESG, ranging from usage of plastics to addition of saturated fats and sugars to the products and the carbon emissions from the value chain. The usage of plastics for packaging and consumption at industrial scale causes strain on the environment.

Industrial scale usage of plastic has been reported to cause distress to the environment in various aspects. The extraction of plastic is done from different kinds of sources such as coal, natural gas, salts and other toxic chemicals such as benzene and vinyl hydrochloride.

The sourcing of fossil fuel i.e., natural gas strains the environment, since the extraction process leaves intense amounts of carbon footprint, contributing to the increase of global warming and climate change.

The emissions from the value chain such as logistics and storage units are significant contributors for climate change. The emissions from the logistics at industrial scale leaves intense amounts of carbon footprint on the environment, whereas the storage unit, which uses tetrafluoroethene for preserving the product has been reported as a potential greenhouse gas, contrary to UN SDG13: Climate Action.

However, the key challenge to the ice cream industry arises in terms of social health. The usage of sugars and saturated fats in the products are reported to cause a negative impact on the health of the consumers. According to a report, consumption of moderate scale ice cream causes moderate rise in blood sugar, due to the carbohydrates and added sugar. The key companies of the market have introduced new and innovative flavors which may contain two or three scoops, which increases the blood sugar. The consumption of sugars and saturated fats are reported to cause chronic health issues related to heart, obesity and diabetes over time, negatively affecting the health at social scale, in contrast to the UN SDG goal of good health and wellbeing (SDG3).

In response to the aforementioned circumstances, some of the key companies of the market have made guidelines and policies as to regulate the contents of the sugar and saturated fats in the products, that are aimed at the different customer ranges. Regulation of sugars and saturated fats per kilo calories are being implemented, as to reduce the negative impact caused by the consumption.

Growth of the Ice Cream Market

As of 2021, the fast-food market economical magnitude was estimated around USD 79.0 billion and is expected to grow with a CAGR (compound annual growth rate) of 4.2% from 2022 to 2030. The negative impacts on the environment caused due to the value chain of the market along with the adverse social health impacts are some of the significant challenges in the ice cream market in terms of ESG. To counter the adverse social health effects, key companies have made policies to reduce the sugar or to substitute sugar entirely with a new substance. 

Key Companies in this theme

    • Unilever

    • Inspire Brands, Inc.

    • General Mills, Inc.

    • Kwality Wall’s

    • American Dairy Queen Corporation

Scope of the Ice Cream Industry Sector ESG Thematic Report

    • 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

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Aspects of the Ice Cream Industry Sector ESG Thematic Report

    • Offers a global perspective of the ice cream industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.