Sustainability goals are fast approaching. The Paris Climate Agreement urges that to limit global warming to 1.5˚C, emissions must be reduced by at least 43% by 2030. While President Donald Trump has again removed the United States from the Paris Climate Agreement through an executive order, the private sector has its own targets to think about over the next few years. Retailers and consumers, after all, are still expecting manufacturers to do their part to address climate change. 

Some baking and snack companies, particularly the publicly traded ones — Grupo Bimbo, Mexico City; Flowers Foods, Thomasville, Ga.; Mondelez International, Chicago; The Campbell’s Co., Camden, NJ; PepsiCo, Purchase, NY — have targets for 2025, 2030 and 2050 that are more aligned with what their customers and the end consumer are asking for than any directive put forth by politicians. 

“Companies are still pursuing sustainability goals, but those goals will be tied to what consumers want,” said Rebecca Marquez, director of custom research for PMMI Media Group. “Sustainability goals are really driven by what the consumer wants and doesn’t want. Consumers want packaging to be recyclable, compostable or a material that can be made into something else. Consumers are getting more savvy, especially younger consumers, and these initiatives are already driven by consumers in a lot of ways.”

In 2023, Baking & Snack partnered with the American Bakers Association (ABA) to create a State of the Industry study on sustainability. The study, conducted by Cypress Research, found that 78% of baking companies listed environmental responsibility policies, guidelines and practices as important to their business success for the next five years. 

Bigger companies are more likely to have programs in place, but the study found that baking companies making less than $100 million in annual revenue also have plans to put these programs in place. Only 26% said they had no plans for sustainability programs. In contrast, 33% of these companies were currently developing a program and 26% already had one in place. 

Baking & Snack’s 2025 Capital Spending Study, conducted by Cypress Research and sponsored by BEMA, revealed, however, that sustainability doesn’t necessarily impact capital investing. Only 28% of bakers surveyed said sustainability-driven equipment/technology investments were an important goal for their capital budget in 2025. When asked specifically about their motivation for making those investments, 54% said sustainability was not an important goal. Thirty-

three percent said efficiency of the equipment/technology was their main priority. While that may appear to indicate sustainability initiatives are on their way out, it’s not that simple. 

“We’re seeing a fundamental shift where sustainability isn’t just a set of individual goals; it’s a shared responsibility and just part of doing business,” said Rasma Zvaners, vice president of government relations at the ABA. “The full supply chain is working together to create a more sustainable and resilient future for the baking industry that aligns with environmental and business goals.” 

While sustainability may not take center stage when it comes to capital investment, it isn’t absent. It’s become an integral part of the way baking companies think about running operations. 

This article is an excerpt from the April 2025 issue of Baking & Snack. To read the entire feature on Sustainability, click here.