Southern India at Heart of ESG Test for Food Majors

A new Asia-wide benchmark has flagged critical gaps in how the country’s largest food companies are managing climate, antibiotic and governance risks embedded in protein supply chains — risks that are heavily concentrated in southern production hubs.The Asia Protein Buyers 100 (APB100) benchmark by Asia Research & Engagement (ARE) assessed 100 listed food companies across Asia, including 13 Indian firms such as Westlife Foodworld (McDonald’s India), Jubilant FoodWorks (Domino’s), Devyani International (KFC/Pizza Hut), Restaurant Brands Asia (Burger King), Nestlé India, Britannia Industries, Tata Consumer Products and Hindustan Unilever.Indian companies more than doubled their average score from about 7 per cent in 2023 to 16 per cent in 2025, broadly in line with the Asia average. Eleven of the 13 firms showed year-on-year improvement, reflecting better disclosure and stronger supplier codes.But governance remains the weakest link. Across Asia, governance averaged just 4.5 per cent in the benchmark. In most cases, company boards are not formally overseeing climate exposure, antibiotic use or animal welfare risks tied to protein supply chains.“India can become a reference point for how emerging markets manage protein transition at scale across meat, dairy, poultry and seafood systems,” said Rituj Sahu, ARE Director, Protein Transition (India). “Early progress on supply-chain governance is encouraging. What matters now is converting that momentum into measurable action across sourcing, climate, responsible antibiotic use, and animal welfare.”ESG pressure buildsThe findings come as ESG disclosure rules tighten in India. Under SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, top listed entities must report sustainability metrics. From FY 2025–26, the top 250 companies will also need to disclose value-chain data on a comply-or-explain basis — bringing greater focus to Scope 3 emissions.In food businesses, Scope 3 emissions — largely from livestock and feed production — typically account for the bulk of a company’s climate footprint.Yet the benchmark shows that more than half of the Indian companies assessed have not begun disclosing core indicators such as Scope 3 exposure or transition plans.Across Asia, antimicrobial resistance and worker health indicators averaged just over 12 per cent in the benchmark, while animal welfare averaged 14.1 per cent — reflecting early-stage disclosure and limited measurable reduction targets. No company in the benchmark reached the top two performance tiers.For investors, the issue is increasingly material. As climate disclosure norms tighten and global ESG expectations converge, weak board-level oversight of supply-chain risks could translate into valuation, compliance and reputational exposure.Southern India at the Core of India’s Egg EconomyThe findings are particularly significant for southern India, which anchors a large share of the country’s poultry and egg production.According to the Government of India’s Basic Animal Husbandry Statistics 2025, Andhra Pradesh leads the country in egg production with a 18.37% share of national output, followed by Tamil Nadu at 15.63%, Telangana at 12.98%, and Karnataka at 6.67%. Collectively, these four southern states account for 53.65% of India’s total egg production.The same report lists Andhra Pradesh (10.84 per cent) and Telangana (10.49 per cent) among the top meat-producing states, with poultry meat forming nearly half of India’s total meat production.Such concentration means that climate shocks, feed cost spikes, disease outbreaks or tighter antibiotic norms could ripple quickly through southern supply chains — and into the balance sheets of listed food companies sourcing from these regions.Fisheries factorSouthern India also dominates India’s fisheries economy. According to the Department of Fisheries, Andhra Pradesh is the country’s largest fish-producing state and a leading aquaculture hub, while Tamil Nadu, Karnataka and Kerala are significant marine fish producers.India is the world’s second-largest fish producer, with aquaculture accounting for the bulk of output. Climate variability, water stress and disease events in coastal and inland aquaculture belts therefore carry clear supply-chain implications for seafood buyers and retailers.Diversifying the protein basketThe benchmark’s findings also come amid growing discussion on diversifying protein sources as a risk-mitigation strategy.Plant Based Foods Industry Association, Executive Director, Praveer Srivastava, said, “India stands at an inflection point where responsible protein sourcing is becoming central to climate resilience and long-term food-system stability. The APB100 findings underscore that diversifying protein sources—including scaling plant-based and other sustainable alternatives—is not just an environmental priority, but a strategic imperative for industry readiness and risk management.”As India’s protein consumption rises, the real test for industry may lie not just in expanding supply — but in strengthening oversight, improving transparency and building resilience in the systems that produce it.



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