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Wales Sets the Pace in Sustainable Food and Drink

  • Welsh Gov
  • Oct 21
  • 13 min read
As environmental challenges grow

As environmental challenges grow, Welsh businesses are stepping up to the plate with bold action and forward-thinking solutions.


Wales is making impressive strides in building a greener, more responsible food and drink industry. One of the most encouraging trends is the rise in companies achieving B Corp certification – a globally recognised mark of excellence for businesses that meet high standards of social and environmental performance – reflecting a growing commitment to operate in a way that benefits people and the planet. Meanwhile, Welsh producers are actively responding to the realities of climate change – from reducing carbon emissions to adapting their operations – by showing that sustainability and innovation go hand in hand.


The Welsh Government is helping to drive this progress by offering clear guidance and practical support. Whether it’s funding opportunities, expert advice or collaborative initiatives, businesses are being empowered to make meaningful changes. The key to success stems from a collaboration between government, business owners and retailers to innovate and then try out new methods. Together, these efforts are positioning Wales as a leader in sustainable food and drink – proving that with the right support and ambition, positive change is not only possible, but already underway. Wales’s pivotal role can only be matched on the European stage by Germany. Across the UK and Europe, these two countries offer a no-barriers, fully funded, comprehensive and sector-specific Climate Adaptation and Resilience Training programme.

Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs
Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs

In the words of Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs: “The success stories we’re seeing demonstrate that Welsh businesses aren’t just adapting to environmental challenges, they’re leading the charge towards a more sustainable future.”


Here in Wales, we are extremely fortunate. The country’s unique natural resources combine to provide a conveyor belt of high-quality, traditional products making us ideally placed to spearhead a sustainable food revolution. Historically, thanks to the warm and nutrient-rich currents of the Gulf Stream, despite increasingly volatile weather, our climate is still relatively benign compared to other countries and perfect for the cultivation of many crops and livestock.


This is paired with a strong cultural connection to food, passionately innovative producers, ethical practices, low intensity farming and local provenance, while that all-important structure of support is there to help businesses adapt to changing realities in the face of climate change, helping our producers to reduce emissions, avoid risks and obtain the accreditation their efforts deserve.


Together, stronger


David Harries, Head of Food and Drink Federation Cymru, says the sector aims to achieve net zero carbon emissions by working in partnership with others throughout the food system. “Industry is working hard to deliver reduced greenhouse gas emissions, improvements in resource efficiency, a step change in nature restoration and improved biodiversity, reductions in food waste, as well as more well-paid jobs and higher productivity as part of a just transition to meeting climate and wider environmental goals.”

And while investment is critical to accelerating that transition, schemes such as the Industrial Energy Transformation Fund are ‘hugely important’ in helping support industries build experience and confidence in new green technologies along with government backing for food and drink manufacturing.


And seeking to create a more sustainable supply chain to reach net zero by 2050, Welsh Government launched a new pilot scheme in 2024 to help future-proof businesses by devising carbon reduction plans to measure and manage emissions and so create one of the world’s most sustainable food and drink supply chains.


The fully funded Carbon Reduction Pilot was developed to support manufacturers in creating robust carbon reduction plans. The initiative helps businesses understand the short and long-term benefits of measuring and monitoring their carbon emissions, aligned with Greenhouse Gas Protocol standards and public procurement requirements. Food and Drink Wales’ carbon reduction work also aligns with Bankers for NetZero green finance guidance on data sharing, which helps unlock green investment funding for producers.

Designed as a practical support programme, the pilot guides companies through the process of establishing baselines, setting measurable targets, and identifying carbon-saving opportunities, while also testing the methodology and approach for wider sector adoption. Coupled with support from the broader industry, including Tesco, and adopting a partnership approach with over a hundred food and drink companies, the scheme helps businesses control their carbon emissions whilst developing tailored reduction plans.


In its first year, it successfully supported 60 Welsh food and drink businesses, with plans to assist a further 80 companies in year two. By 2026, this work will culminate in a fully tested and validated carbon reporting model, forming a core part of a new Sustainability Service due to be launched in the spring. Tesco, for example, who – having committed to achieving net zero across their value chain by 2050 – were delighted to see the plan. “Tesco is committed to building a more sustainable food system and we’re proud to work alongside the Welsh Government in this transformative pilot programme,” says Enfys Fox, Relationship Manager for Local Sourcing at Tesco.


Edwards – The Welsh Butcher, of Conwy, believe the pilot provided the company with essential tools and expert guidance to strategically enhance their sustainability practices within the industry. Finance manager Simon Edwards says: “This pilot has provided us with the necessary support to help us develop our understanding and gain invaluable insights into a business’s environmental footprint and unlock opportunities for impactful changes.”


“While the process required diligence and commitment, our strong data management foundation allowed for a relatively straightforward progression. It wasn’t effortless, but our being prepared was a significant advantage.” Gaining a clear understanding of their current environmental baseline was a key benefit with The Welsh Butcher now achieving meaningful improvements in sustainability and environmental performance.


Ellis Eggs, of Aberdare, also eagerly accepted the invitation to participate, driven by a pro-active approach to environmental responsibility. As part of their efforts around sustainability they have already installed solar panels and implemented extensive recycling practices. “Ultimately, we need to be showing how we’re trying to reduce our impact on the environment,” says general manager Jason Ellis, “so we certainly found the experience worthwhile. Participating in the pilot not only helps the business but also contributes to a broader understanding and commitment to environmental sustainability and reducing carbon footprint.”


“It really puts into perspective what we are doing as a business, not just for the company and the environment, but also on a personal level,” enthuses Jason. “All our staff are now recycling, and they understand the importance of it. I believe this awareness will extend to their home environments, creating a positive knock-on effect.”


“Engaging in this initiative has not only enhanced our environmental credentials but also improved our operational efficiency. By identifying areas where we can reduce waste and energy consumption, we have been able to cut costs and improve our bottom line. This has made us more competitive in the market and has strengthened our relationships with key customers who value sustainability.”


La Crème Patisserie, premium desserts manufacturers based in Cwmbran, source cream from Ty Tanglwst Farm in Pyle and other local suppliers wherever possible. Explaining why they signed up to the pilot, operations director Robert Hindle says: “We’ve always prided ourselves on having a strong sustainable ethos, but one of the main challenges is building a carbon tracker and being able to quantify our impacts, along with having access to relevant data.”


“The pilot has provided a manageable and actionable way to tackle climate change and reduce carbon emissions within the business. For example, it allowed us to study historic records and help identify areas of high emissions, along with developing a targeted plan to reduce them.”


Based in Llannefydd, north Wales, Llaeth y Llan/Village Dairy accessed the pilot in order to map out emissions, improve sustainability, and strengthen customer trust through greater transparency. “Reducing carbon emissions is a priority for both Llaeth y Llan and our customers,” reveals operations director Michael Burrows. “Participating was the ethical choice and aligned with our values.”

“The plan has helped us pinpoint areas where we can cut costs – whether that’s through improving energy efficiency, reducing waste, or streamlining our logistics. These changes don’t just benefit the environment – they also make our business more resilient and efficient in the long run.”


“It has become a really valuable strategic planning tool for us. It’s helped us pinpoint areas where we can cut costs—whether that’s through improving energy efficiency, reducing waste, or streamlining our logistics. I would strongly encourage other Welsh food and drink businesses to take part in this pilot. The support is there, and the insights are truly eye-opening.”


Beyond the Pilot Scheme, there are many companies in Wales who are forging ahead with plans to reduce their impact on the environment, many of which are well advanced and utilise the support available to producers from Food and Drink Wales. Radnor Hills, the mid-Wales company named the 2024 Wales Food and Drink Sustainable Business of the Year, are emblematic of the huge push to reduce carbon emissions. Founded by the Watkins family with the aim of bringing their spring water to the world, their proud pledge is ‘to care for our planet and constantly improve wherever we can to become more sustainable and protect the environment around us.’


Having committed to zero waste to landfill as far back as 2018, they promptly invested in an entire recycling facility on-site to help fulfil that commitment. Their PET bottles are made up from 30 per cent recycled materials, while their shrink wrap is 100 per cent recyclable and made up of 30 per cent recycled plastic, making them the first in the UK to do so.


As part of a plan to reduce the carbon footprint of their new production facility, Wrexham Lager – the historic north Wales brewery joint-owned by Hollywood actors Ryan Reynolds and Rob McElhenney – intend to install solar panels on the roof of their new production facility to meet almost all of their electricity needs.


They also plan to introduce energy-efficient air compressor systems to recycle waste heat and hot water, reducing energy demand by 20 per cent, in addition to having on-site Nitrogen generation to produce all Nitrogen for brewhouse operations. Not only could it be used as an alternative to CO2 for pressuring and purging tanks and pipework, but in-house production would also prevent delivery of Nitrogen tankers, further decreasing CO2 emissions, already slashed by 50 per cent.


Castell Howell, one of Wales’s most renowned food wholesalers, are striving for carbon reduction in three supply chains – dairy, beef and horticulture. Together with the National Trust, Gwynedd County Council and farmers they are working on a beef project focused mainly on biodiversity. However, as Group Environmental and Social Governance manager Edward Morgan explains, with reduced livestock density and reduced synthetic fertiliser inputs these cattle will be lower carbon.

“We’re also working with a group of Welsh growers, Food Sense Wales and local authorities to try and ultimately ‘onshore’ some of our horticulture requirements,” he says. “And as part of the Welsh Veg in Schools project we worked with BIC Innovation and Swansea University who conducted a life cycle analysis of frozen broccoli, imported from the Netherlands against the organic broccoli grown in west Wales.

“The research concluded organic broccoli could have 66-83 per cent lower carbon due to elimination of large transportation distances and lower production impact. The challenge is how to develop a lower carbon supply chain.”


The Food and Drink Wales website offers a range of information. The following links are a great place to start:





Adapting to Climate Risk


Welsh businesses are not just reducing their impact on the environment but addressing the direct risks posed by Climate Change and adapting accordingly. Halen Mon - the famous sea salt company based on the north Wales coast – was one of the first Welsh businesses to grasp that the need to adapt was essential. General manager Nick Gornall relates how training provided by Food and Drink Wales ‘delivered a focused update to our Business Continuity Plan, aligning it to storm-surge, heat, and power-loss scenarios for a coastal site.’


With temperatures, precipitation and sea levels all predicted to rise in the coming years, fully funded on-site training gave the Halen Mon team a broader perspective on risk, ranging from single-event incidents to cascading impacts on seawater supply, staffing, and logistics. “Crucially, it enabled us to quantify these risks and demonstrate continuous improvement and commitment to understanding external impacts, strengthening our position with insurers, auditors, and customers,’ adds Nick.

Allie Thomas, founder of Brecon-based Cradoc’s Savoury Biscuits, candidly admits she did not initially think climate change would affect such a little company until she attended the training. “It took some focus on how weather could affect Cradoc’s given the array of issues businesses already have to consider,” she recalls. “Flooding, drought, pandemic, politics and economics – we have way more than enough to think about!

But we want to protect our folks, our business, customers and, of course, sales going forward so planning and strategic thinking has become the first step in building a safety net.”


“Just about any of the previously mentioned catastrophic issues could stop us functioning,” says Allie. “It’s a case of mapping the things that could go wrong, thinking about how we can ameliorate the effects, and which actions would give us the best chance of survival.”


“Thinking about climate-adapted products has also been flagged, changing the product to meet market needs. Working in a bakery in 30 degrees is not tenable for our staff and air conditioning is essential. This is an additional investment and ensures that our staff stay with us, are involved and help us grow the ideas at all stages of planning.”


Paul Davies, environmental manager of another Brecon business, Beacon Foods, is also addressing the potential pitfalls posed by climate change. “This year I have completed three two-hour sessions with Food and Drink Wales on Climate Adaptation and Resilience,” he reveals.


“Here at Beacon Foods, we believe that climate change has the potential to affect the ways the business operates. Therefore, any future changes to the footprint should involve looking at risk management and force field analysis so that potential issues such as flood risk mitigation and power outages can be minimised.”


Julian Rice, sustainable supply chain manager of Prima Foods, says while businesses are ‘barraged’ on a daily basis with information on climate change adaptation, the training classes offered by Food and Drink Wales ‘gave an opportunity to look specifically at the things we can change – what is under our control’.


“It has given Prima Foods a better understanding of the global climate changes we are all facing but, importantly, an appreciation of how these could potentially affect our business and those of suppliers and customers,” he says. “Case studies showed how quickly and seriously climate shocks can affect businesses and bring them to a complete stop.”


“As a result, we are introducing improved risk management and emergency planning on our own site whilst also trying to gain a better understanding of how our suppliers are controlling risk.”


There are three routes of support for producers wishing to put together a Climate Adaptation Plan. Firstly, anyone can take the speedy self-assessment which will identify the areas the business is most at risk: https://food-drink.wales/business/assessment/


Secondly, online training modules and supporting workbooks set up to offer a step-by-step approach to understanding and adapting to climate risks can be found at: www.food-drink.wales/business/climate-adaptation-resilience-training. The third route is via free and on-site bespoke one-to-one training for the leadership teams of food and drink businesses which provides a re-assuringly human network of support where potential issues and challenges can be discussed face-to-face. There are limited places available, however, and businesses should email bwyd-food@bic-innovation.com to express interest as these sessions will only be available until March 2026.


Get certified


Amongst the many benefits for producers of joining the Welsh Government’s Sustainability Cluster – market insight, access to expertise and innovation, branding and showcasing at events and growing the community – is one-to-one support for B Corp certification.


This international gold standard for sustainability involves a holistic approach which requires engagement from all aspects of a business to maintain its accreditation. The support available within the Sustainability Cluster helps this process run smoothly and enables Welsh companies to demonstrate that doing business responsibly is good ethics and good economics.


This includes how the business operates, its structure, employees and production processes, alongside transparency and accountability. It also signals a shift in how business is done – where profit and purpose go hand in hand, and business is used as a force for good.


Across Wales, 48 companies have achieved B Corp certification, joining an international network of over 9,500 businesses in 105 countries, across 160 industries. Among them, 11 Welsh certified food and drink producers are demonstrating how values-led practices can create both commercial value and meaningful impact.


Barti Rum, of Pembrokeshire, who gained their B Corp certification last year, say it would be ‘alien’ not to think about protecting the planet as well as looking after employees and the people who supply and buy from them. “Profit is great and obviously integral to running a successful business,” says managing director Fran Barnikel, “but there will always be other equally important things to consider. Getting B Corp certification is a great way to let people know that that’s the type of business we are. Our values go beyond making money.”


Meanwhile, company founder Jonathan Williams is learning about the use of seaweed as a carbon-capturing tool which potentially means that Barti Rum, and many other businesses, may one day be able to offset their carbon through seaweed in the same way that some currently do by planting trees.

Coaltown Coffee
Coaltown Coffee

Coaltown Coffee, of Ammanford, in 2019 became the first B Corp-certified speciality coffee roaster in the UK and are happy to be ‘morally and legally committed’ to prioritising responsibility to the environment and society, from the experts who produce their coffee to the baristas who brew it.


“Our ethos is to create delicious coffee and do good along with it,” explains a spokesperson. “We believe that planet, people and profit are all equal when it comes to how we run our business. By focusing on ethical sourcing and sustainable production, we work together with industry leaders to develop new and innovative green practices that benefit not just the consumer, but the coffee industry as a whole.”


And Drop Bear Beer Co of Swansea, a multi-award-winning brewer of alcohol-free craft beers, are one of the few female-owned breweries in the UK and the world’s first LGBT+ alcohol-free brewery. In 2021 they became Wales’ first B Corp brewery and the world’s first certified carbon neutral alcohol-free brewery the following year.


For further information see www.food-drink.wales/business/wales-budding-b-corp-businesses.

For Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Wales’ status as a pioneering force for good in food production is both a credit to us as a nation, and a huge opportunity.


“Wales is establishing itself as a leader in sustainable food and drink production, and I’m incredibly proud of what our businesses are achieving. From our pioneering Carbon Reduction Pilot supporting over 60 companies in its first year, to having 48 B Corp certified businesses including 11 in the food and drink sector, Welsh producers are proving that environmental responsibility and commercial success go hand in hand.”


“Our unique Climate Adaptation and Resilience Training programme – one of only two comprehensive, sector specific and fully funded schemes of its kind in Europe – is helping businesses future-proof themselves against climate challenges. Combined with our natural advantages and the passion of our producers, we’re building one of the world’s most sustainable food and drink supply chains.”


“This isn’t just good for our planet; it’s creating resilient businesses, supporting well-paid jobs, and positioning Wales at the forefront of global sustainable food production. We’re committed to supporting this transformation every step of the way, because when Welsh businesses succeed sustainably, Wales succeeds.”


So, while it may not be guaranteed, for all our sakes we hope that those retailers and manufacturers who demonstrate business responsibility through sustainable improvements will be the ones most likely to excel in the long run. They are also the ones that everyone, whether a consumer or trade buyer, who wants to do what’s right for the planet should be supporting.


It is great to know that Wales leads the way!

 
 
 
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