The ESG Menu: Integrating Sustainable Practices in the Portuguese Agri-Food Sector

Abstract

This paper investigates the incorporation of sustainable development within the Portuguese agri-food sector amid global environmental and resource challenges. It underscores the role of the Sustainable Development Goals (SDGs) and environmental, social, and governance (ESG) criteria in steering businesses towards sustainable practices. Through qualitative analysis, in-depth interviews with managers and experts explored sustainable business model adoption, highlighting SMEs’ unique challenges. The study reveals a divergence in sustainability practice maturity, advocating for integration into organizational culture and strategy. It points out SMEs’ reactive stance due to resource constraints and external pressures, contrasting with larger firms’ proactive approaches. The research supports a strategic reevaluation of business models for sustainability, emphasizing innovation, leadership, organizational commitment, and transparent communication. Practical contributions include embedding sustainability into core operations, enhancing competitiveness, fostering sustainable organizational culture, prioritizing employee well-being, and leveraging innovative marketing for sustainability communication. Recognizing its limitations, this study advocates exploring blockchain and AI for transparency, leadership’s role in sustainable models, and the importance of marketing in the agri-food sector for sustainable management. Insights indicate that innovation and strategic partnerships are crucial for enhancing organizational sustainability and achieving the SDGs.

1. Introduction

Amid a scenario of intense global transformations, such as the biocapacity reaching its limits and the depletion of natural resources, the increasing ecological footprint of companies jeopardizes the ability to meet the needs of future generations. The economic and industrial situation, still recovering from the effects of the pandemic and associated sanctions, finds itself ill-prepared for the challenges posed by the recent geopolitical crisis. In this context, adopting sustainable development at the core of organizations emerges as an indispensable and resilient approach, requiring the attention and commitment of nations, industrial sectors, and ecosystems to overcome environmental difficulties and navigate the state of crisis [1].

In 2015, the 2030 Agenda was launched as a response to these challenges, defining seventeen Sustainable Development Goals (SDGs). This comprehensive program focuses on the three fundamental pillars of sustainable development: environmental, social, and governance, and highlights the importance of promoting peace, justice, and effective institutions [2]. The 17 SDGs of the 2030 Agenda represent an expanded vision for the future, reflecting an agreement between world leaders and the population, being considered an action plan for the benefit of people and the planet. Additionally, supplementary guidelines were introduced, emphasizing corporate commitment’s importance in aligning their activities with environmental, social, and governance (ESG) criteria, reinforcing their role and responsibility in this area [3,4].

The relevance of sustainable development has been increasingly recognized in recent literature, with studies highlighting its critical role in addressing global challenges. Researchers have emphasized the multifaceted nature of sustainability, which encompasses environmental, economic, and social dimensions [1,5]. For instance, integrating digitization with sustainability, supporting food security in emerging economies, and linking technological progress to sustainable development have all been identified as crucial areas of focus [2,6]. Furthermore, the impact of gender and youth on achieving the SDGs has also been explored, underscoring the need for inclusive approaches [7,8].

In the business context, the adoption of sustainable strategies has become increasingly relevant, driven by global transformations that have substantially altered consumer preferences, resulting in higher expectations regarding the social, environmental, and ethical responsibility of companies. The positive correlation between sustainability and financial success has encouraged research into sustainable business models and led companies to adopt more sustainable practices. Challenges in planning policies, new business models, strategies, and tools to measure or evaluate sustainability and reduce the uncertainty of the implementation process require new analyses that cannot be limited to the environmental dimension of sustainability alone [1]. Indicators need to be developed to monitor the progress of the sustainability goals, while the application and implementation of the SDGs require setting development priorities in different contexts [5].

The inclusion of sustainability in business models (BM) has been increasingly highlighted in management literature, but there is a scarcity of research focused on the practices of SMEs [9]. SMEs present distinct strategic approaches to sustainability compared to large companies due to resource limitations and lower awareness of sustainability issues [9]. It is concluded that it is essential to intensify the research on the integration of sustainable initiatives both at a functional level (marketing strategies) and at an organizational level (business principles, practices, culture, and processes) to enhance the holistic sustainability of organizations [10]. Therefore, the purpose of this paper is to acquire insights into how companies assimilate sustainability and ESG principles into their organizational culture and operational strategies [9,10].

The structure of the paper unfolds as follows: the initiation with a comprehensive literature review, succeeded by the exposition and rationale of the research methodology. After this, a meticulous data analysis ensues, paving the way for a detailed discussion of the findings. Finally, conclusions are drawn, accompanied by recommendations for future research endeavors.

2. Literature Review

2.1. Sustainable Business Model (SMB)

The discourse surrounding the business model (BM) construct remains prolific within academic circles, yet a univocal definition remains elusive in the corporate domain, as delineated by [10]. Despite this definitional ambiguity, there exists a broad scholarly accord that the essence of a BM is to articulate the strategic underpinnings through which an enterprise orchestrates its economic exchange. They contend that a BM embodies the systematic framework employed by an organization to leverage resources and facilitate transactions to engender profitability [11]. This conceptualization encapsulates an array of strategic dimensions, including revenue mechanisms, value propositions, customer segmentation, and cost infrastructure, all geared toward the nexus of value creation [12].

Notwithstanding the diverse interpretations attributed to BMs, the axiom of value creation emerges as a cardinal principle across various paradigms, as expounded by [13]. This ethos of value transcends mere economic gains, extending its purview to encompass social and environmental dimensions, indicative of a broader cognizance of the multifaceted impacts of corporate conduct [12]. The prevailing epoch witnesses a marked transition in corporate ethos, propelled by escalating societal exigencies for environmental and social governance. The accountability of corporations for their environmental and social footprints has burgeoned, a trend elucidated by [11]. This heightened scrutiny has catalyzed an array of entities to integrate sustainability into their strategic core, a trajectory reinforced by [11,14]. The infusion of sustainable practices within BMs signifies a paradigmatic shift towards more holistic and accountable business methodologies aimed not solely at fiscal success but also at effectuating a positive societal and environmental impact.

2.2. Conceptualization of Sustainable Business Model

In the continuously evolving business landscape, the increasing recognition of sustainable development has emerged as a strategic solution to the dynamic challenges faced by organizations [15]. This shift has propelled companies to explore innovative avenues for achieving competitive advantage, focusing on augmenting corporate value through a comprehensive strategic overhaul and a commitment to future-oriented initiatives. Scholars such as [15,16] and others have emphasized the importance of aligning these efforts with the expectations of stakeholders to build a resilient capacity for long-term evolution and growth. This strategic redirection has led to the emergence of the sustainable business model (SBM), which is highly regarded for its contribution to sustainable development goals and as a proactive response to changing consumer preferences.

The concept of business sustainability, as defined by [17], is viewed as a corporate strategy aimed at attaining a competitive edge through the adoption of sustainable practices. This approach not only fosters innovation, integration, and cooperation within the business sphere but also addresses the critical dimensions of economic, environmental, and societal welfare. The work of [12,18,19] highlights the significance of sustainability in enhancing business operations and ensuring the well-being of all stakeholders. Despite the apparent consensus on the importance of sustainability, there remains a notable gap in academic research specifically targeting sustainability in the context of the Sustainable Development Goals (SDGs), underscoring the need for a more comprehensive approach to understanding and implementing sustainability practices within organizational structures.

Models that integrate sustainability into the core of business operations, which embody the ethos of the organization and reflect its mission and objectives, are increasingly being advocated. The authors of [20,21] argue for the adoption of frameworks such as the triple bottom line (TBL) to assess financial, social, and environmental performances comprehensively. This holistic approach is further supported by the updated environmental, social, and governance (ESG) concept, which emphasizes the importance of incorporating governance into the strategic direction and corporate practices, particularly in the context of investment selection [22]. The perception of business sustainability as a lucrative investment with considerable returns, as discussed by [23,24], underscores the critical need for a sustainable marketing strategy to effectively communicate these practices and align with stakeholders who share a commitment to environmental preservation [1,25].

2.3. Contextualization of SBM in SMEs

In the face of numerous challenges, SMEs are integrating sustainability into their operational stratagems, adopting a forward-looking approach towards sustainable development [18,26]. Acknowledging the imperative of altering behaviors considering environmental impacts, SMEs are implementing measures to ameliorate the adverse effects of their operations on the environment [19,27], though they confront obstacles in remodeling their business models toward sustainability due to fiscal encumbrances, temporal limitations, and a deficiency in specialized skills and knowledge [20]. A sustainable orientation is found to positively influence the social and financial performance of SMEs, bolstering reputation and brand perception [14,28,29]. Despite their individually minimal environmental impact, SMEs consume substantial volumes of raw materials and significantly contribute to pollution, necessitating a sustainable approach that profoundly impacts various organizational processes [18,30].

Entities are inclined to select suppliers with sustainable practices and are motivated to intensify their sustainability efforts within the supply chain, considering supply chain performance and supplier evaluation criteria [29], while robust stakeholder relationships are deemed essential for achieving a sustainable orientation [6], mirroring the evolution of supply chain management practices to incorporate vital ESG considerations [31].

3. Methods

This research was supported by a qualitative approach, considered as an adequate methodological choice when dealing with the complexity of integrating ESG criteria into business models [22]. Furthermore, the qualitative methodology, described by Aspers and Corte [32], is an interactive process that allows for a deeper comprehension of a phenomenon and is particularly useful in the agri-food sector, where research on the impact of sustainable strategies is developing [33,34]. Finally, the qualitative methodology is crucial for investigating sustainability practices in SMEs in-depth, addressing their specific characteristics and contexts [20,35].

3.1. Data Collection Technique: Interviews

Ref. [36] advocates for future research to leverage in-depth interviews and case studies with managers to concentrate on the enactment of sustainable business models. Hence, upon the establishment of the research methodology, in-depth interviews were conducted to delve into the attitudes, behaviors, and perceptions of managers, academics, and analysis experts regarding sustainable business models in the Portuguese agri-food sector.

In the realm of data collection techniques, interviews are noted for their adaptability, spanning structured, semi-structured, or unstructured modalities [37]. This investigation conducted semi-structured interviews, permitting open and adaptable inquiries by the guidelines proposed by [38].

This technique empowers participants to offer thorough insights on the subject matter, enhancing open dialogue [37]. It facilitates the comparison of responses and the discernment of patterns, which are indispensable for grasping the dynamics of sustainability and resilience within agri-food supply chain management [39,40]. The research accentuated active listening for strategic inquiry, aimed at acquiring data congruent with the specific objectives of the study [41].

Subsequent segments elaborate on the process of formulating the interview guides, mostly inspired by the literature but are also exploratory in essence.

To address the previously outlined objective, the sustainable business model concept was divided into 8 subcategories, as shown in

Table 1. Interview script for sustainable business model categories with noteworthy author perspectives.

Subcategory	Questions	Key Authors
Strategic Decisions	Q1: How is the ESG dimension integrated into the company’s strategic decisions? And in its daily operations?	[17,19,20,29,42,43]
Motivations	Q2: What are the reasons driving your company to integrate ESG considerations?	[6]
Challenges and Opportunities	Q3: What are the challenges and opportunities associated with incorporating ESG principles?	[20,24,44,45]
Culture	Q4: Describe how the company’s culture (mission, vision, and values) operates to meet stakeholder expectations (mention subcategory) and contributes positively to the community and environment.	[17,18,21,29]
Sustainability Assessment	Q5: How does your company assess its sustainability performance?	[32]
Environmental Initiatives	Q6: What are the major environmental initiatives your company has adopted in recent years? Q7: What sustainable resource management practices are being incorporated (water, energy, raw materials, etc.)?	[19,29]
Social Contribution	Q8: How does the company contribute to the social and economic development of the communities in which it operates? Q9: What type of working conditions does the company provide to its employees? For example, corporate social responsibility programs and healthy and inclusive work environments.	[10,14,46]
The Role of Governmental Institutions	Q10: How is the company financing its sustainability initiatives? Q11: What products does the company use or offer that promote sustainable investments?	[10]

, to encompass the various aspects and dimensions that constitute a sustainability-oriented business model.

An analysis was conducted on interviewees from three different contexts as follows: agri-food managers from small- and medium-sized enterprises (7), agri-food managers from large corporations (4), and academic and market experts from the agri-food sector (6), which culminated in 17 in-depth interviews. This methodology, advocated by [21], emphasizes the significance of employing at least two disparate sources of evidence for the convergence and corroboration of data.

While source triangulation does not guarantee a unified, cohesive portrayal, it is valued for its capacity to analyze and comprehend the underlying reasons for discrepancies. Identifying consistent overarching patterns and elucidating differences across the agri-food sector bolsters the credibility of the findings [40].

Invitations for participation were independently dispatched via email and LinkedIn, with interviews facilitated through Google Meet, capturing both audio and video, from November 14 to 30. After the interviews, approximately 24 h of recordings were amassed, with an average duration of 1 h and 15 min per session, resulting in a total of around 120,000 words for analysis. Detailed information about the interviews and data collection can be found in

Table 2. Small and medium enterprise participants.

Code	Sex	Organization	Position	Duration of the Interviews	Words Analyzed
SME1	M	Portugal Bugs	Co-founder and PTO	0 h 45 min	8.042
SME2	F	Noocity	Marketing Director	1 h 19 min	12.699
SME3	M	Life in a Bag	CEO—Founder	0 h 43 min	6.959
SME4	F	Carob Wolrd	Marketing Manager	1 h 1 min	5.526
SME5	F	Biobrassica	CEO—Founder	1 h 43 min	19.902
SME6	M	Rialto	Marketing Director	1 h 10 min	11.290
SME7	M	Acushla-Tetribérica	CEO—Founder	0 h 48 min	7.974

,

Table 3. Large organizations participants.

Code	Sex	Organization	Position	Duration of the Interviews	Words Analyzed
LG1	F	Sogrope	Brand Manager	1 h 32 min	14.007
LG2	F	Ibersol	Sustainability Coordinator	1 h 55 min	16.996
LG3	M	Anonymous	Supply Chain Manager	1 h 27 min	10.243
LG4	F	Paladin—CMG	Marketing Director	0 h 42 min	6.460

and

Table 4. Expertise’s participants.

Code	Sex	Organization	Position	Duration of the Interviews	Words Analyzed
ESP-1	F	IPAM—Lisboa	Director	0 h 53 min	4.432
ESP-2	M	IPAM—Porto	Transparency and Agri-food Marketing	0 h 41 min	4.175
ESP-3	M	Business Consultant	Urban Gardens	1 h 46 min	10.406
ESP-4	F	GRACE	Sustainability and Social Responsibility Coordinator	0 h 42 min	7.042
ESP-5	M	BCSD	Sustainability Director	2 h 30 min	27.295
ESP-6	F	Business Consultant	Sustainability Consultant	0 h 54 min	6.268

.

Considering the methodology’s reliance on the participation of a diverse cohort, adherence to the fundamental principles of research ethics was ensured, thus safeguarding the rights to self-determination, privacy, anonymity, informed consent, protection from discomfort and harm, as well as equitable treatment.

3.2. Data Analysis Technique

To enhance the data analysis process, transcriptions were carried out with the aid of artificial intelligence, utilizing the Transkiptor tool. Following this phase, the transcribed text was reviewed and corrected, adhering to key principles, such as completeness, representativeness, and homogeneity, in addition to exclusivity and relevance [47]. Subsequently, content analysis was employed to evaluate the interviews, categorizing, and interpreting the data to unveil implicit meanings according to the methodology described by [47]. Building on this, ref. [47] divides content analysis into three stages as follows: pre-analysis, exploration of the material, and the processing of results, including inference and interpretation. In the pre-analysis stage, the focus is on organizing and selecting the corpus for analysis, such as the semi-structured interviews in this study, and on developing hypotheses and defining objectives that will guide the content analysis.

Within this framework, as outlined by [47], the established categories correspond to the main themes and concepts to be extracted from the material under study. In the exploration stage, the research involves a careful encoding of significant elements, such as words, phrases, or paragraphs, reflecting the predetermined concepts. This phase entails a rigorous evaluation of the documents, organizing the data into categories aligned with the themes and concepts identified in the initial pre-analysis stage. During this phase of the analysis, the principal theme emerged, originating from the literature review, and aligned with the objective of the present investigation. This methodology culminated in the creation of 8 distinct subcategories, which will be examined and discussed in the subsections of the forthcoming chapter.

4. Results

4.1. Sustainable Business Model

The initial category of data analysis and discussion aims to understand how agri-food sector companies are incorporating sustainable practices into their business models. This examination utilizes eight subcategories: strategic decisions, motivations, challenges and opportunities, culture, sustainability assessment, resource management, social development, corporate social responsibility, and financing. Quotations from interviewees are presented for each subcategory, facilitating analysis, interpretation, and understanding.

4.1.1. Strategic Decisions

Our investigation into the agri-food sector’s adoption of ESG practices uncovers a landscape marked by varying degrees of maturity, profoundly shaped by organizational scale, strategic priorities, and available resources. Larger corporations (LGs) display more advanced ESG integration than their SME counterparts, a distinction underscored by the internal, yet sluggish, pace of sustainability implementation noted by EXP3. EXP6 further clarifies, “Sustainability, while nascent, is beginning to take shape, predominantly within larger organizations that have pioneered integrating ESG into their strategic frameworks”.

Contrastingly, agricultural production emerges as a domain where ESG considerations remain largely peripheral, a sentiment echoed by EXP3. However, exceptions exist, as highlighted by SME5, who points out that “Organic farming sectors have embedded ESG principles from their inception, transcending organizational scale”.

The journey towards sustainability is marked by a shift in perspective, from viewing corporations as part of the environmental quandary to recognizing them as integral to the solution. This transformation necessitates an initial focus on internal consciousness and a comprehensive engagement with all stakeholders. EXP5 stresses the importance of strategic prioritization in sustainability efforts, suggesting a focused approach: “Identifying three to five key material topics in collaboration with stakeholders underpins the authenticity and efficacy of our sustainability endeavors”.

A recurring theme is the symbiosis between sustainability and innovation, with EXP3 highlighting the imperative for innovative solutions that do not compromise ecosystem vitality. This necessity for innovation extends to marketing strategies, where sustainability becomes a competitive edge. LG1 shares a practical challenge: “Balancing consumer expectations with sustainable practices, like reducing packaging during peak sales periods, exemplifies the nuanced strategies companies must navigate”.

Remarkably, sustainability is evolving from a strategic component to the essence of business itself. EXP4 and EXP5 articulate a future where sustainable practices are synonymous with business viability and competitive advantage. This evolution is coupled with a critical acknowledgment from SME2 and EXP6 regarding the imperative for corporations to equitably balance their ecological withdrawals with restorative actions.

Despite the regulatory “tsunami”, a consensus among respondents suggests that real momentum for sustainability surpasses compliance, calling for an integrated organizational ethos as emphasized by LG4: “Sustainability demands a collective strategic mindset, transcending departmental confines”.

However, a stark warning for SMEs emerges from EXP5, noting a prevalent disconnection in strategic sustainability mapping, which could jeopardize their operational and strategic resilience: “The absence of a comprehensive sustainability framework leaves SMEs exposed and strategically adrift”.

4.1.2. Motivations

Legislative shifts around sustainability are reshaping the business landscape, fostering the adoption of green practices while also presenting significant challenges. A consensus among participants, including EXP3, EXP4, and EXP5, highlights a specific pressure on SMEs stemming from sustainability reporting obligations initially targeting larger organizations. EXP3 notes, “For large corporations, sustainability reporting is becoming mandatory, indirectly affecting SMEs as part of the supply chain”. EXP5 adds, “Unprepared SMEs may risk losing business opportunities due to these evolving requirements”.

Experts like EXP6 see a silver lining for SMEs, suggesting that proactive engagement with these trends could offer competitive advantages and long-term benefits: “SMEs, though less impacted currently, stand to gain by recognizing and seizing market opportunities early”.

The study identifies a palpable tension between the push for sustainability and prevailing consumer behaviors. EXP6 and LG1 remark on a disconnection between consumer practices and sustainability, pointing out a broad consumer base still swayed by convenience over sustainability. SME5 comments on the dominance of large retail formats, indicating a potential threat to local commerce and sustainable consumer practices: “The consumer gravitation towards large retail spaces signals challenges for the sustainability of local markets.”

Financial implications of sustainability practices emerge as a pivotal concern. LG2’s observations underscore the increasing relevance of ESG criteria in financing decisions: “Banks are now scrutinizing companies’ sustainability agendas, making it crucial for businesses to embed sustainable practices not just for ethical or compliance reasons but as a strategic financial necessity.”

This distilled analysis points towards an evolving business environment where sustainability is not just a compliance metric but a strategic asset influencing competitiveness, consumer engagement, and financial viability. The emergent narrative underscores the urgency for businesses, especially SMEs, to navigate these dynamics proactively, balancing market realities with sustainability aspirations.

4.1.3. Challenges and Opportunities

Navigating the sustainable transition presents both significant hurdles and opportunities for businesses, underscored by the financial implications of adopting greener practices. Participants like LG1 and EXP5 underline the economic strain, particularly for smaller enterprises with limited resources: “Sustainable materials come at a higher cost, demanding a delicate balance within our budgets to maintain competitiveness”, states LG1. This financial strain is amplified by a broader context of insufficient resources, as EXP5 reflects, “A universal barrier among SMEs is the stark resource scarcity, be it financial or human, to fully embrace sustainability”.

The discourse also turns to the pivotal role of knowledge and education in sustainability, with a consensus among respondents, including LG2 and EXP4, stressing the gap in understanding and implementation. EXP4 notes, “A common misperception persists that sustainability solely concerns the environment, overlooking its broader implications”. This lack of awareness extends to the consumer level, complicating the shift towards sustainable consumption.

Yet, this landscape is also fertile with opportunities for innovation and competitive advantage. Insights from EXP3 and LG1 reveal that sustainability can significantly enhance a company’s market standing. EXP3 mentions, “Adopting sustainable practices is not just ethical but a strategic move to stay ahead in the competitive race, especially as consumer demands evolve”. LG1 shares their success, “Our sustainable initiatives have distinctively positioned us apart from competitors, especially in customer engagement and loyalty”.

The interaction with larger corporations, as per EXP5, poses a unique challenge and opportunity for SMEs. “Large corporations are increasingly embedding sustainability criteria in their procurement processes, compelling SMEs to adapt or risk losing their competitive edge”, EXP5 highlights. This dynamic underscores the need for SMEs to strategically incorporate sustainability into their operations, transcending beyond mere cost considerations to strategic investments.

Communicating about sustainability efforts emerges as a nuanced challenge, with EXP4 cautioning against the pitfalls of greenwashing. “Effective communication about sustainability initiatives must be genuine and transparent to truly resonate with stakeholders”, advises EXP4.

In sum, this analysis points to a multifaceted environment where the challenges of implementing sustainable practices are intertwined with significant opportunities for innovation, differentiation, and long-term financial sustainability. Companies, especially SMEs, are urged to navigate these complexities with strategic foresight, leveraging sustainability as a cornerstone for future growth and competitiveness.

4.1.4. Culture

The core of integrating sustainability lies not only in strategic decisions but deeply within the culture of organizations; a sentiment echoed across conversations with experts and business leaders alike. The transformation toward sustainability requires a holistic approach grounded in leadership commitment and a culture that not only embraces but actively promotes sustainable practices. EXP4 vividly encapsulates this, stating, “SDGs are the body, ESG is the soul! A company-wide commitment, from the CEO down, is essential for embedding sustainability into the corporate ethos”.

This cultural shift towards sustainability demands more than mere compliance or philanthropic efforts; it requires integrating sustainability into the very fabric of the business. EXP5 elaborates, “Sustainability should be interwoven with the core business, transcending beyond philanthropy to become a business’s heartbeat”. This perspective underscores the importance of sustainability as a fundamental business strategy rather than an adjunct or superficial layer.

Effective incorporation of sustainability within an organization’s culture necessitates continuous dialogue, collaboration, and a unified strategy that aligns with both internal objectives and external stakeholder expectations. EXP6 and LG2 highlight the significance of co-creative processes and strategic alignment in fostering a sustainable business environment. “True sustainability is achieved through collaborative efforts that engage every tier of the organization and align with broader stakeholder values”, LG2 observes.

For SMEs, in particular, the alignment of sustainability with organizational values and missions is critical. LG2 advises, “Revisiting and possibly realigning the organization’s vision, mission, and values towards sustainability can ensure collective understanding and commitment”. This alignment ensures that sustainability is perceived not just as an external obligation but as an intrinsic part of the company’s identity and purpose.

Furthermore, adopting sustainable practices has the dual benefit of enhancing internal culture and extending positive impacts beyond the organization, fostering beneficial relationships with the community and environment. The integration of sustainability into business operations is increasingly seen as an opportunity to create value not only for the company but also for society at large. EXP5 and SME5’s remarks underline the importance of internalizing sustainability to leverage external opportunities effectively.

4.1.5. Sustainability Assessment

Regarding sustainability assessment, most SMEs, as indicated by SME1, SME2, SME3, SME4, SME5, and SME7, do not have specific metrics to measure sustainability performance. This may be due to a lack of resources, knowledge, or the perception that such metrics are not essential to their business model. On this, SME1 states:

“(…) we can’t reach everywhere and sometimes that impact is also difficult to measure (…) we don’t have the scale or enough employees to focus on this topic”. SME1

Instead, the interviewees (SME3, SME4, SME5, and SME7) mention that some of these companies rely on certifications and external audits to validate their sustainable practices, as in the case of organic production, mentioned by SME5:

“We only have the organic production certificate and audits by an external entity. Now, other indicators are tracked and measured, and so on… No, we don’t do that, given our size”. SME5

However, SME3 mentions that despite positioning itself as a sustainable brand, it only cares about its product, not how it acts throughout the value chain.

“(…) we have this concern that, above all, is at the product level, everything else about the company we can’t measure, nor do we have much concern about”. SME3

In this subcategory, it was possible to observe that most SMEs do not have any type of sustainability report. The interviewees (EXP3, EXP4, EXP5) mention this factor as worrying since they will possibly be required to report from 2025, as stated by EXP4:

“And, therefore, it has to be a premise for SMEs, even those that are not yet obliged to report, there are many that will be obliged from 2024 or 2025, to start reporting what they did in 2024”. EXP4

In an opposite scenario, a few interviewees mentioned (LG1, LG3, LG4) that LGs already have a sustainability department within their organizational chart responsible for integrating and measuring sustainable practices. Thus, companies that can develop and use internal metrics effectively can gain valuable insights to improve their practices and sustainability strategies, aligning better with long-term goals and stakeholder expectations. This is observed in the speeches of LG1 and LG4:

“(…) we have and will start increasingly implementing sustainability meters. Sogrape itself has a sustainability department, that is, which does these measurements”. LG1

“(…) it’s difficult to have data if they are not measured throughout the year. The report is much more complete now, but there are, obviously, data where we can’t see improvements”. LG4

4.1.6. Environmental

Regarding the environmental component, the findings revealed that companies are adopting a variety of initiatives to promote sustainability, reflecting a growing understanding of its importance (SME1, SME2, SME3, SME5, SME7, EXP1, LG1, and LG4). As highlighted by SME2 and LG1:

“(…) the topics we address every month are correlated with the season of the year and are also related to important themes, such as biodiversity, sustainability, the importance of bees, among others”. SME2

“I’ll give examples be it beach cleanings, we’ve done them, be it, then, visits to the vineyards, trainings on recycling about different papers, different uses… We also have then the materialization of that at the point of sale”. LG1

However, the effectiveness of these initiatives can vary, depending on several factors mentioned by the interviewees (SME2, SME5, SME6, and LG1), including adherence by consumers, the integration of sustainability into business operations, and available resources. SME5 mentions an example of these practices:

“We have scheduled the zero-waste week with them, where we will run a campaign here with the customers to reduce packaging. We will offer a 20% discount to all people who bring their bag. This is crazy for us because we already operate with very low margins”. SME5

Successful sustainable initiatives are those that generate a positive environmental impact, educate and involve stakeholders, and are planned, considering the capacities and specific context of each company.

4.1.7. Social

The social dimension of sustainability is increasingly at the forefront of corporate agendas, reflecting a comprehensive commitment to generate positive impacts. Companies across the spectrum are engaging in a variety of initiatives, ranging from educational programs to partnerships with non-profits, aiming to promote diversity, inclusion, and a sense of community. For example, SME1 notes, “Our efforts to impact schools and universities illustrate our commitment to societal welfare”, while LG1’s partnership with Semear is poised to “not only elevate product sales but also disseminate a shared narrative of social good”.

Yet, the endeavor goes beyond volunteerism; as EXP4 crucially points out, “Volunteering, while valuable, must be part of a broader, mandatory framework for companies to truly embed social responsibility into their DNA”. This implies that social initiatives should not be optional extras but fundamental aspects of corporate identity.

Recognizing employees’ value extends far beyond financial remuneration. As highlighted by EXP4 and EXP5, “Companies need to be champions for their people, recognizing that real value is created through health, well-being, and recognition—not just salaries”. This broader approach to employee satisfaction is crucial for fostering a supportive and inclusive workplace.

Moreover, the importance of mental and physical health has become increasingly recognized within corporate environments. SME2 and LG1 underscore the significance of supporting employees’ holistic health, with LG1 mentioning, “Our healthcare provision within the company exemplifies our commitment to employee well-being”.

Inclusion and diversity are critical for creating equitable workplaces, as seen in SME6’s pride in Rialto’s inclusive practices and SME1’s commitment to equal opportunities. Such initiatives not only enhance the workplace environment but also contribute to retaining and attracting talent. EXP5 shares, “Recent training in well-being and organizational happiness underlines how creating a positive work environment is pivotal for sustainability”. Additionally, EXP6 remarks on the importance of aligning company values with those of employees, especially younger generations who prioritize value alignment in their workplace.

4.1.8. The Role of Governmental Institutions

Through this analysis, opinions suggest that the government’s role in corporate sustainability is multifaceted and complex. The interviewees (EXP3, EXP4, SME4, SME5, SME7, and LG2) mention that while governmental support, whether through financing or legislation, can be crucial for promoting sustainability, it is essential that there is flexibility and recognition of the varied needs of companies. This is noted in the speech of EXP3:

“(…) often the company goes after the fund for a reason: there’s money here, let’s get it. But that fund, when its external support, is from the European Union or is state-funded, it has a very specific intention. And, therefore, there’s a big conditioning on what that money should serve.” EXP3

Thus, according to interviewees EXP3, EXP4, SME5, and SME7, an effective balance between governmental support and private initiative is crucial to fostering efficient and innovative sustainable practices in companies. While the government can offer financial support and regulation, companies must maintain a certain autonomy to implement sustainable practices that align with their specific values and objectives. As reported by EXP4 and EXP3:

“Currently, company budgets have to be made counting on investments in sustainability. Just as they have the investment to improve facilities or in the research of new products. Companies should align the sustainability strategy with the business strategy and not be dependent on funds”. EXP4

“When the company has its investment capacity it can be much more ambitious and make that investment much more to its measure. It has much more freedom of action”. EXP3

On the other hand, several interviewees (SME4, SME5, EXP3, EXP4, EXP5, and LG2) mentioned that the conditions associated with governmental financing could, in some cases, restrict the autonomy of companies and force them to adopt practices that do not necessarily align with their sustainability strategies or operational needs. SME5 and EXP3 mention examples:

“I’ll tell you why I don’t compete for financing and contests, because they condition my action, in a way that sometimes I don’t agree. That is, sometimes to have access to that investment I must buy new machines, for example, I only want to buy used machines. This goes a bit against my principle”. SME5 “For example, in agriculture, now applying for irrigation systems or whatever, requires buying everything new, and what happens to the old? You have to execute that investment all at once in a short period and, for example, that might often be a challenge in terms of treasury”. EXP3

However, in a bolder approach, EXP5 talks about the need not to politicize sustainability, seeing it as a significant constraint on advancing measures.

“(…) I don’t like to politicize sustainability. And, therefore, I think that when we politicize sustainability, what we are doing is ensuring that maybe we don’t have the solution as quickly as we need, you see? Because then what will happen if you say that sustainability is from sphere A, sphere B will oppose it”. EXP5

In

Table 5. Synthesis of results in sustainable business model category.

Subcategory	SME	LG	EXP
Strategic Decisions	Internal environmental, social, and governance (ESG) initiatives are constrained by limited resources.	Advanced in ESG engagement, with a focus on innovation and the implementation of integrated strategies.	Concentration on the imperative for innovation to ensure sustainable economic activity.
Motivations	Indirectly compelled by legislative measures and sustainability reporting requirements (large enterprises).	Driven by market demand and the pursuit of sustainability innovation.	Emphasize the significance of sustainability as a fundamental component of the business model.
Challenges and Opportunities	Budgetary constraints and a lack of knowledge, specifically in terms of sustainability.	Confront challenges associated with the cost of sustainable materials and regulatory compliance.	Highlight sustainability beyond mere compliance as an opportunity for innovation and competitive advantage.
Culture	An emerging sustainability culture centered around mission and values.	Integration of sustainability into corporate culture and operational practices.	Emphasize the critical role of leadership and alignment with stakeholders.
Sustainability Assessment	Reliance on external certifications in the absence of specific internal metrics.	Dedicated departments for sustainability and the application of internal metrics.	Note the absence of sustainability reporting in SMEs and advancements within LGs.
Resource Management	Constraints in adopting sustainable practices due to limited resources.	Integration of sustainable practices for optimization and efficiency enhancement.	Emphasize the critical importance of resource management and the circular economy as foundational elements.
Social Development	Concentration on local impact and employment, albeit with limitations.	A holistic approach to social and community impacts.	Highlight the significance of creating social and environmental value for the longevity of corporations.
Corporate Social Responsibility	Local actions with a focus on community engagement.	Comprehensive and integrated strategies for social impact.	Emphasize the necessity for transparent and authentic communication strategies.
Financing	Increased reliance on external support and facing financing challenges.	Greater autonomy and self-investment in sustainability initiatives.	Discuss the critical role of financing, governmental support, and the contributions of LGs to SMEs.

, a synthesis of the data analysis can be observed.

5. Discussion

The interviews revealed that the effectiveness of corporate sustainability lies in its incorporation into organizational culture, requiring full commitment from leadership and effective implementation across all operations. An integrated and inclusive approach involving all stakeholders is crucial for developing efficient, sustainable strategies, in line with [10,18,45] value dissemination theory. Similar conclusions were drawn by [20,35,48], who emphasized the importance of leadership and stakeholder involvement in successful sustainability integration.

The data allowed us to conclude that innovation plays a crucial role in implementing sustainability in businesses, driving the search for creative solutions, operational improvements, and a reduction in environmental impact. Furthermore, innovative strategies in sustainable marketing are essential in communicating with stakeholders [29,45] and maintaining companies’ competitiveness. These findings are consistent with [1,7,48], who highlighted the pivotal role of innovation and transparent communication in achieving sustainability goals. However, this analysis fails to critically examine the broader socio-economic and policy implications of these findings. Recognizing the multifaceted nature of sustainability, it becomes apparent that an exploration into the socio-economic dimensions and potential policy ramifications could offer enriched insights [42,44,49]. Such a critical examination could unearth potential challenges or contradictions to existing knowledge, providing a more holistic understanding of sustainability’s impact on the agri-food sector.

The critical role of agriculture in sustaining human life demands that it be maintained but with a shift towards sustainability in all aspects—environmentally, economically, and socially [2,19]. This necessity mirrors trends in larger business sectors, where major corporations are already embedding sustainability deeply within their business strategies and reporting. This observation is reinforced by [22,44], who noted that companies integrating sustainability into their core strategies tend to benefit in the medium and long term. These corporations, by doing so, exert significant influence on their smaller suppliers, predominantly small- and medium-sized enterprises (SMEs), compelling them to also pursue sustainable practices despite their limited resources. The interconnection between these sectors underscores the essential support that SMEs require, which includes government assistance and backing from larger corporations, to successfully integrate sustainable measures into their operations in a way that aligns with their values and objectives. This supports the findings of [28], who observed that SMEs often adopt a reactive posture towards sustainability due to resource constraints and external pressures.

The need for a critical reading of the implications of the findings to the knowledge gained in the process is underscored. This entails not only acknowledging the current efforts towards sustainability but also rigorously evaluating their efficacy and the extent to which they address the deep-seated environmental and social challenges. Moreover, the potential for these practices to challenge, complement, or contradict existing knowledge in the field warrants further scrutiny. Contrary to the observations made in [28], it has been identified that SMEs adopt a reactive posture, thereby becoming vulnerable to the increasing stringency of sustainability regulations. Although there is an acknowledged need for behavioral transformation, as highlighted by [48], there remains a considerable journey ahead for agri-food SMEs. This finding aligns with the scenario described by [50] regarding Portuguese SMEs, underscoring the necessity for a more proactive integration of sustainable practices.

It is pivotal to elucidate the nuanced implications these findings have for broader socio-economic contexts and policy formulations. This view is corroborated by [51], underscoring the urgent need for extensive investigations in this domain. Delving into these aspects could illuminate pathways for enhancing the scalability of sustainable practices across the agri-food sector and beyond, emphasizing the critical role of systemic change in achieving true sustainability.

It is crucial to consider that adopting sustainable practices brings numerous benefits to companies in the medium and long term, as argued by [22]. Moreover, companies that integrate sustainability into their operations and strategies are seen as more innovative and responsible, which positively influences the attraction of consumers and the formation of partnerships, giving them a competitive advantage, as highlighted by [41].

In this comprehensive analysis of agri-food sector practices, it is crucial to highlight the significant contributions identified. The nuanced understanding of these practices underscores the importance of fostering a symbiotic relationship between sustainable business operations and the broader socio-economic ecosystem, advocating for policy interventions that support the transition towards sustainability. This holistic approach is in line with the findings of [40,46], who stress the need for integrating sustainability into organizational culture and strategic decision-making. The

Table 6. Contributions of practices for agri-food companies.

Advised Measure:	SME
Integrating sustainability into corporate strategies	Involves incorporating sustainable management practices into strategies and operations, aligning them with the company’s values and objectives, particularly for SMEs.
Fostering a sustainable organizational culture	Involves engaging leadership in sustainability, integrating it into the organizational culture, and involving all stakeholders to develop effective strategies.
Employees—the most important asset of companies	Adopting a more holistic and inclusive human resources management approach, implementing practices that transcend mere financial compensation and focus on the comprehensive well-being of employees.
Innovation and sustainable marketing	Focus on innovation for creative and effective solutions that reduce environmental impact and on marketing strategies to communicate sustainable practices.
Sustainability Assessment	Reliance on external certifications in the absence of specific internal metrics.

titled ‘Contributions of Practices for Agri-Food Companies’ succinctly synthesizes the key findings, providing a valuable foundation for future sustainability and efficiency considerations.

6. Conclusions

This research underscores the movement towards sustainability, critiquing the superficial efforts often undertaken by companies. Environmental, social, and governance (ESG) practices are frequently fragmented and only superficially engage with deep-rooted environmental and social challenges. It is critical to integrate sustainability as a strategic and intrinsic component of corporate operations, moving beyond a merely philanthropic perspective. The investigation highlights the necessity of embedding sustainability into the fabric of organizational culture, addressing the shortcomings noted by [40,46] and emphasizing the pivotal role of leadership and organizational dedication. This article contributes to several Sustainable Development Goals (SDGs), including SDG 2, SDG 3, SDG 4, SDG 5, SDG 8, SDG 9, SDG 12, SDG 13, and SDG 17, enhancing the study by [10].

By advocating for sustainable strategies, businesses can embed ESG principles in decision-making and culture, driving innovation, resource-efficient processes, and crucial partnerships for the Portuguese agri-food sector. These practices enhance food security, health, and safety standards, reduce gender disparities, and foster equitable working environments. Furthermore, they empower organizations to positively impact the environment and society through transparent communication, committed leadership, and alignment with broader sustainability goals. Reevaluating business models to prioritize sustainability is essential for enduring success alongside environmental and social accountability.

This research emphasizes the need for innovative and honest communication strategies, especially for SMEs, to build trust and credibility, thereby avoiding greenwashing. It provides an alternative viewpoint to [26], highlighting the challenges SMEs face in proactive sustainable practice implementation due to resource constraints and the influence of larger corporations. This addresses the research gap noted by [20,35,48] regarding sustainable practices within SMEs.

In practical terms, this study outlines crucial contributions for those agri-food companies aiming to enhance their sustainability efforts. It emphasizes integrating sustainability into corporate strategies, fostering a sustainable organizational culture, and involving leadership and stakeholders in crafting effective strategies. Recognizing employees as valuable assets, the research advocates a holistic approach to human resource management, focusing on well-being beyond financial compensation.

Additionally, it underscores the importance of innovation and sustainable marketing to create solutions that mitigate the environmental impact and effectively communicate sustainable initiatives. The reliance on external certifications, rather than specific internal metrics, is identified as a practical measure for sustainability implementation. Despite its valuable insights, this study has limitations. The potential influence of corporate image preservation on the respondents’ answers may impact our data accuracy. The broad focus on the agri-food supply chain may overlook specific nuances within each context. The lack of documentary analysis limits data triangulation and corroboration through alternative sources.

Future research could include the following:

• Examining the impact of emerging information technologies, such as blockchain and artificial intelligence, on enhancing transparency in sustainable corporate management in the agri-food sector (SDG 9);
• Investigating the influence of leadership on the adoption of sustainable business models in the agri-food sector;
• Exploring the contribution of product innovation to logistic strategy efficiency in the agri-food sector (SDG 9);
• Assessing the significance of organizational culture in attracting and retaining talent within the agri-food sector (SDG 8);
• Analyzing the effect of sustainable marketing on facilitating corporate shifts towards sustainable practices in the agri-food sector (SDG 12);
• Evaluating the advantages and obstacles encountered by agricultural producers in adopting ESG practices in the agri-food sector (SDG 12);
• Examine how management policies that cultivate diversity and inclusion can bridge gender gaps in the agri-food sector. Delve into the role of marketing in reshaping public perceptions and positioning inclusive brands as industry leaders, thereby expediting advancements toward gender equality (SDG 5);
• Analyzing the impact of climate action messaging in marketing campaigns on driving corporate shifts toward sustainable practices within the agri-food sector (SDG 13);
• Research the impact of employee-centric management strategies on productivity, retention rates, and overall organizational growth, thus aligning with the goals of decent work and sustainable economic expansion (SDG 8).

In conclusion, this chapter highlights the ongoing need for comprehensive research to enhance our knowledge and practical implementation of sustainability strategies within agri-food enterprises.