Tackling the global food supply crisis: accelerating the shift towards more sustainable food systems

Among the many devastating consequences of Russia’s invasion of Ukraine, we can now add a global food supply crisis. According to the UN Food and Agriculture Organisation, food prices are 23% higher than this time last year, with grain prices at their highest since 2008.[1]

As a company that serves over 1 million meals a day in hospitals, schools, and business restaurants around the world, we are forced to take mitigating action short term. But the food sector in general needs to think ahead and broaden its approach to a more holistic view on global food systems - which at the same time has the potential to accelerate the ongoing development within food sustainability and innovation.

 At ISS we believe that the current situation represents a watershed moment. While the next 12 months will certainly be challenging, we see it as an obligation to embrace and fast track sustainable change. 

Immediate measures

In the immediate term, we have taken a range of measures to mitigate the impacts of food cost inflation, avoid disruptions for our clients, and ensure that we continue to provide high quality and safe food services.

In our food operations, our on-site chefs and teams are focused on re-engineering menus and recipes to use fresh, local, and best value items whilst guaranteeing our dishes are as delicious and nutritious as before. We're also working with our supply partners to conduct deep dive reviews of our supply chain, removing costs and bottlenecks across sourcing, production, packaging, and logistic activities, whilst maintaining our high food safety standards. We’re also collaborating via purchasing partnerships with like-minded organisations to consolidate volume and mitigate risk associated with food supply.

These immediate steps have been crucial in terms of mitigation. However, we predict much longer lasting impact in terms of food production and consumer preference.

Circular micro-initiatives can play an increasingly important role

The overriding direction of food systems this millennium has been geared towards increased sustainability. The high carbon footprint of certain aspects of farming, particularly around meat production, is increasingly known and driving changes in consumption habits. For example, in the UK, meat consumption is down 17% in the past decade.[2]

At ISS we’ve developed a Power Plant food service that puts the focus on plant-based ingredients and reduces the focus on animal products.[3].We’ve found this to meet an increasing demand, and it is also shifting some remaining stubborn attitudes! We’re predicting that social awareness around climate change will continue to drive change in habits, which means customers will move increasingly towards these plant-based alternatives.

A circular mindset shouldn’t only encompass what we are eating, but also how we are producing. In our conversations with customers around their workspace, we always focus on the benefits of sustainability initiatives. While the most obvious include a move towards renewable energy and energy efficiency, there are many opportunities around food production.

We have sites around the world where customers are growing their own vegetables, hosting beehives, growing mushrooms using used coffee granules, or even keeping sheep. These may be micro-initiatives, but with supply chains under pressure, as well as increased market volatility, they can play an increasingly important role towards climate smart food production.

Innovation as a game changer

In today’s world, digital innovation is key to accelerating sustainability. The food service sector is certainly no exception. On the contrary, technology is helping us to overcome challenges linked to production, supply, waste, and cost margins.

While our business is firmly reliant on our exceptional people, digital solutions have been – and will increasingly be – a way to drive efficiency and quality.

Earlier this year, we signed the Cool Food Pledge – a commitment to reduce greenhouse gas emissions associated with the food we serve globally by 25% by 2030. We’ve also committed to halving our food waste by 2027.

To achieve this, in addition to our plant-based and organic food solutions, we’ve invested in technology to identify and display the CO2 emissions of menu items, have created food ordering apps to maximise efficiency, and continue to invest in AI to cut food waste, with our site teams using this data to change behaviour and improve performance. The war in Ukraine is leading us to reflect further on our service delivery models, as robotic technology can certainly play a part in mitigating costs for our clients.

Obligation to embrace change

The war in Ukraine is having a profound impact on businesses. With Ukraine being a big producer of not only cereals but also fertiliser, there will absolutely be volatility and supply challenges over the next year. But the world is good at re-balancing itself - over time. The basics of supply and demand dictate that while there may be short-term scarcity, new production markets will establish themselves, filling the void.

While immediate mitigating action is therefore necessary, what will be more profound and permanent is the shift accelerated by Russia’s invasion of Ukraine towards food sustainability. We are fully focused on embracing this shift and fast-tracking our efforts for more sustainable food.