Heterogeneity in quantity, scope and target connection in food sector firms’ reporting of sustainability indicators – examples from Sweden

Purpose Monitoring sustainability in the food system is vital, yet the firms operating between production and consumption in the value chain are often overlooked; they constitute a “missing middle”. We investigate sustainability indicator quantity, scope and target connection among food sector firms and assess how these are influenced by firm characteristics, including size, sector and multinational affiliation. Design/methodology/approach We construct and use a panel data set of quantity, scope and target connection of reported sustainability indicators from 92 firms active in the Swedish food and beverage industry, wholesale and retail sector, from 2017 to 2021. We categorize sustainability indicators into topics and dimensions and employ random-effects Tobit estimation and censored quantile regression to explore heterogeneity among firms. Findings The findings reveal firm heterogeneity in sustainability indicator reporting. While almost 90% report emissions, “maintaining natural capital” and “economic enablers” are underreported sustainability dimensions. Net turnover and multinational affiliation are positively related to sustainability indicator reporting, while belonging to the wholesale sector is negatively related to reporting sustainability indicators for high and low quantiles. The share of target-connected sustainability indicators increases from 30% to 50% over the period. Research limitations/implications Using sustainability reports as a source of data for sustainability efforts implies some limitations since all monitored indicators may not be disclosed in sustainability reports nor does monitoring indicators mean that sustainability objectives are met. We consider the act of monitoring, targeting and reporting on indicators as a key step for achieving such objectives, and the quantity, scope and alignment of indicators with specific targets are highlighted to ensure that the report is informative and effective and the data are trustworthy. Practical implications Our study can be useful for firms themselves, wishing to benchmark against similar firms and plan future monitoring and reporting efforts. For researchers and policymakers, our study can work as a transparent source of information on the contents sustainability reporting, a solid base for future research and policy impact evaluations. Social implications Food system sustainability is a topic of broad social relevance, affecting all levels of society from producers to consumers. This research provide insights into the sustainability efforts of an under-researched segment of the food system, and on how monitoring tools such as indicators can and should be used to speed up the progress toward sustainability. Further, we provide a basis for effective impact evaluation of legislation, which is important to tailor effective policy for a future sustainable food system. Originality/value This is one of the first studies to collect a unique and detailed catalogue covering actual sustainability indicators used by the “missing middle” firms and illustrate their capacity to capture relevant dimensions, topics and targets. We highlight the heterogeneity in sustainability indicator reporting among firms and thereby provide a pre-Corporate Sustainability Reporting Directive benchmark which is useful for efficient policy evaluation on the path towards sustainable food systems.