Barbara Strozzilaan 336
1083 HN Amsterdam
The Netherlands
gssbsecretariat@globalreporting.org

Item 06 – GRI Sector Standards
Project for Food and Beverages Project proposal

For GSSB approval
Date

27 January 2022

Meeting

10 February 2022

Description

This document sets out the project proposal to develop a Sector Standard for thefood and beverages sector - for GSSB discussion and approval.
In accordance with the Due Process Protocol, the draft proposal was discussed
on 21 October 2021. After that meeting, the project proposal was shared with theGRI Stakeholder Council and the GRI Board. No feedback was received fromthese groups. However, the Standards Division conducted further consultations
with relevant stakeholders to determine the merits of including retail, alcoholic
beverages, and tobacco in the sector's scope.
The final recommendation excludes retailers from the scope of this sector but
includes tobacco products and alcoholic beverages manufacturers. Food andstaple retailers (supermarkets) will be included in a future retail sector standard.
Please note: Following the development and submission of this project proposal,
the GRI Sector Standards project for food and beverages will be one of several
projects to begin under the GRI Sector Program. The commencement date of thisproject has not been determined and is subject to resource availability.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. TheGSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2021

ContentsProject background ................................................................................................................................. 3
Sector overview ....................................................................................................................................... 3
Sustainability impacts .............................................................................................................................. 4
Project objectives .................................................................................................................................... 5
Division of responsibilities ....................................................................................................................... 5
Timeline ................................................................................................................................................... 6

Page 2 of 6

1Project background

23In February 2019, the Global Sustainability Standards Board (GSSB) approved the GRI Sector
Program to improve clarity and consistency in sustainability reporting.

4567
89The key criterion for prioritizing sectors is their sustainability impacts.
This considers the significance of the sector's impacts regarding their scale, scope, character, andlikelihood. It also considers the sector's size, distribution around the world, and the number oforganizations from that sector that are in a position to use the GRI Standards. A second criterion forprioritizing a sector is the potential to exploit learnings and synergies from other Sector Standards
recently developed.

1011
12
1314

The first Sector Standard – GRI 11: Oil and Gas Sector 2021 – is finalized and has been released.
The GSSB is currently considering the Sector Standard for coal for approval, and the Sector Standard
for agriculture, aquaculture, and fishing is in the final stages of content development, while a fourthSector Standard for mining is under development. A project proposal for a Sector Standard for textiles
and apparel is also being presented to the GSSB.

15
16

Food and beverages1 is prioritized for standard development, according to the list of sectors approvedby the GSSB in November 2020.

17

Sector overview

18
19

It is proposed that the Sector Standard for food and beverages will apply to organizations whose
primary focus is:

20
2122

•
••

Food processing
Manufacturing of beverages, both alcoholic and non-alcoholic
Manufacturing of tobacco products

23
2425

This sector covers manufacturing activities. It excludes primary producers, which are covered under
the Sector Standard for agriculture, aquaculture, and fishing, as well as retailers, restaurants, andcatering services.

26

The inclusion of alcoholic beverages and tobacco in the sector's scope deserves special attention.

27
28
2930
31

Alcoholic beverages and tobacco are grouped under food processing by all the classification systems
in Table 1. They are all manufacturing organizations processing agricultural products and are similar
in terms of technology and industrial structure. Their sustainability impacts are largely similar; food,alcoholic beverages, and tobacco producers are equally concerned about their impacts on theagricultural value chain, from waste, packaging, and labeling.

32
33
34
35

The impact on human health from alcoholic beverages and tobacco is different from those of foodorganizations, and as such, many stakeholders view these organizations differently. Severalorganizations in this sector were consulted; while tobacco organizations agreed with being included in
the sector's scope, organizations from other sub-sectors were mixed.

3637

Alcoholic beverages and tobacco producers are included in the scope of the Standard. Excluding
them from the scope of this sector will either result in these sub-sectors having no applicable

1 For the purposes of this project proposal ‘food and beverages’ or ‘food and beverages sector’ refers to the organizations thatfall within the description of the sector included in the Sector overview section, including food, beverages, and tobacco
manufacturers.

Page 3 of 6

3839

Standard or devoting more resources to produce additional Standards specific to alcoholic beveragesand tobacco.

40

It is proposed that the Standard be named 'GRI 15: Food and Beverages Sector 20XX'.

4142

The scope and name of this standard may deviate from this proposal following recommendations fromthe Food and Beverages Working Group.

43444546

Table 1 lists the relevant classifications from external classification standards, specifically theInternational Standard Industrial Classification of All Economic Activities (ISIC), Industry Classification
Benchmark (ICB), Global Industry Classification System (GICS ®), and Sustainable IndustryClassification System® (SICS®)2.

47

Table 1: Proposed sector key for the Sector Standards Project for Food and Beverages.

Classification StandardClassification NºClassification NameISIC10

Manufacture of food products

11

Manufacture of beverages

12

Manufacture of tobacco products

45101010

Brewers

45101015

Distillers and Vintners

45101020

Soft Drinks

45103010

Tobacco45102020

Food Products

45102030

Fruit and Grain Processing

45102035

Sugar

30201010

Brewers30201020

Distillers & Vintners

30201030

Soft Drinks

30202030

Packaged Foods & Meats

30203010

TobaccoFB-PF

Processed Foods

FB-AB

Alcoholic Beverages

FB-NB

Non-Alcoholic Beverages

FB-MP

Meat, Poultry & Diary

FB-TB

Tobacco

ICB

GICS

SICS

48

Sustainability impacts

495051

The food and beverages sector is present throughout the world and provides for the most basic needof humanity. It is an important employer (2% of the labor force in the EU) and has numerous
environmental impacts.

5253

Food manufacturers have a direct impact on people's health. Their performance in selecting,processing, packaging, transporting, and marketing food and beverages will determine what people

2 Sustainable Industry Classification System® is the classification system of SASB.

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5455

consume and the influence on their health and wellbeing. Because they are in direct contact withconsumers, they face intense scrutiny and demands for transparency.

5657

Producers of alcoholic beverages and tobacco products are under increased pressure to responsiblylabel and market their products.

5859
60
6162

Besides the direct impact of their activities, the food and beverages sector contributes to thesustainability impacts in the agriculture, aquaculture, and fishing sectors through its supply chains.
Because these primary producers are often small in scale and far removed from consumers, it is foodand beverages manufacturers who face the demands from stakeholders to ensure sustainable
practices in agriculture, aquaculture production, and fishing.

63

Project objectives

6465
66

The primary objective of this project is to develop a Sector Standard that improves the sustainability
reporting of food and beverages organizations, making reporting more complete and consistentacross the sector.

67

This Sector Standard will:

68
69

•

Identify and describe the topics that are likely material for a reporting organization in the foodand beverages sector based on the sector's most significant impacts.

7071

•

Provide evidence and authoritative references for these topics to assist organizations inidentifying if they are material for them.

72•Identify and list relevant disclosures for reporting on those topics.

73
74

As per the new GRI Universal Standards, organizations in the food and beverages sector that want toreport in accordance with GRI Standards will be required to use this Sector Standard.

75

Recommendations may also be made by the Food and Beverages Working Group regarding:76•The scope, key, and name of the Sector Standard.

77•Considerations that may be relevant to Sector Standards for related sectors.

78•Revisions or updates to other GRI Standards.

7980

Impacts identified within this project for which no GRI Standard exists will be assessed and prioritizedby the GSSB for future GRI Standards development.

81
82
83
84

Special consideration will be given to the interaction between this Standard and the Sector Standard
for agriculture, aquaculture, and fishing. Many of the likely material topics in the food and beverages
sector may reflect impacts that organizations cause through their suppliers among primary producers.
This project will explore and define the best way to organize this interaction among sectors.

85

Division of responsibilities8687
8889

A multi-stakeholder working group will be formed to identify the most significant impacts for this sector
and give recommendations on the development of the Sector Standard. The Standards Division willdraft the Standard, and the GSSB will have oversight and final approval over the Standard before its
release.

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9091

The Standards Division will ensure coherence between the food and beverages Sector Standard andany Standards approved or under development.

92

The project will be conducted in accordance with the GSSB Due Process Protocol.

93

Timeline

94
95
96

The starting date of this project has not been determined and is subject to resource availability. Table
2, on the following page, outlines the anticipated project duration. The starting date and the predicted
dates of other key milestones will be confirmed once known.

Page 6 of 6

Barbara Strozzilaan 336
1083 HN Amsterdam
The Netherlands
gssbsecretariat@globalreporting.org
Table 2: Estimated duration of Sector Standards Project for Food and Beverages3

3 Project scheduling changes may occur over the course of the project, including extensions to the duration of project due to approval processes or other circumstances.

This document has been prepared by the GRI Standards Division and is made available to observers at meetings of the Global Sustainability Standards
Board (GSSB). It does not represent an official position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The GSSB isthe independent standard setting body of GRI. For more information visit www.globalreporting.org.

© GRI 2021