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Explore Environmental and Social Due Diligence in Dairy Industry with Corpbiz

Partner with Corpbiz for Environmental and Social Due Diligence in India. We, at Corpbiz, offer consulting services across sectors, particularly pertaining to environmental and social due diligence. Performing Environmental and Social Due Diligence in Dairy Industry can be a daunting task due to various constraining factors; thus, our team of in-house experts can help you steer through this arduous process seamlessly. Allow us to help you in fulfilling all your environmental and legal requirements. Corpbiz very well comprehends the challenges that are often faced by enterprises engaged in meeting ESDD requirements in Dairy Industry, and thus, we are here to provide you with constant support and expert guidance.

We are trailblazers in building a legacy. With our team of experts, who have vast experience in helping clients worldwide with the ever-evolving compliance framework, we will provide you with comprehensive guidance in your exclusive journey of ESDD & ESG Compliance. Our services include exhaustive compliance assessments, developing custom-made compliance plans and implementing approaches to meet regulatory requirements.

Why is ESDD Compliance Difficult in Dairy Industry?

The business world is changing at lightning speed, and with that, ESDD is also fast transitioning from voluntary to obligatory; therefore, the first step that businesses involved in the dairy industry need to undertake is to prioritise investments in environmental and social due diligence to ensure sustainable growth. To keep up with the increasing awareness of environmental concerns across the world, conducting environmental and social due diligence in dairy industry has also become quite important. However, the stakeholders in the dairy industry tend to face peculiar challenges in integrating ESDD statistics into their business operations. The dairy industry has a major contribution towards the GDP growth of the country and provides livelihood to millions of people in the country; hence, there is an incessant need to make vigilant efforts to promote environmental and socially ethical practices in this industry, which is largely dominated by the unorganised sector.

However, complying with environmental and social due diligence in dairy industry can be an unnerving chore. The stakeholders and businesses involved in dairy industry face numerous challenges while endeavouring to ensure ESDD compliance, some of which are:

Complex Supply Chains

Dairy farming has notable environmental impacts, including land use, overutilisation of water resources, etc. Assessing and mitigating these impacts without expert guidance may lead to oversights because these requirements tend to get so multifaceted that it becomes extremely difficult to understand them by a layman. In addition to that dairy supply chains are often intricate as they involve multiple stakeholders and processes. Therefore, conducting comprehensive environmental and social due diligence in dairy industry assessment requires mapping and analysing the entire supply chain, which can be challenging without specialised guidance.

Primitiveness of the Dairy Industry

One of the challenges faced by the dairy industry in India is that the industry is still at a primitive stage and is mainly dominated by the unorganised sector. The contribution of the private sector or the government is quite less. Therefore, in order to experience even more substantial growth, the dairy industry in India needs to enhance its competitiveness, not only to meet the increasing domestic demand but also the demands of the international market. This can be done only by bringing a transformative change in the industry and, at the same time, bridging the gaps within the industry. Technological advances that have been incorporated across industries need to be welcomed even in this sector to keep up with the hi-tech development so that your business doesn't get left behind in this race.

Ensuring Animal Welfare Standards

Animal welfare standards are established to ensure that farmers and businesses involved in the dairy industry do not exploit the animals and they are in fact, properly taken care of. With the rampant growth of the industry, animal welfare is a growing concern as well. The industry cannot practically function without animals; therefore, with animal welfare, everyone benefits: the business, industry and as well as consumers. Good animal welfare strategies positively impact businesses. By complying with animal welfare regulations, farmers can keep their business running for long, and not complying with the rules and regulations pertaining to animal welfare can even lead to adverse consequences for you. Thus, ensuring high standards of animal welfare is crucial for dairy businesses. Establishing and monitoring these standards independently may be challenging without a thorough understanding of best practices and evolving industry standards.

Resource Constraints in Dairy Industry

Conducting environmental and social due diligence in dairy industry requires ample resources, enough time, and adequate money, but not everyone has access to that, especially the smaller stakeholders. In addition to that, gathering and managing such a vast amount of data required for ESG assessments can be overwhelming. Without proper tools and methodologies, businesses often struggle to collect accurate and relevant data. This can dissuade them from discharging these ESDD obligations and from adopting sustainable practices. Furthermore, dairy businesses require effectively engaging with local stakeholders, addressing concerns, and building these positive relationships requires skill and experience that businesses may find challenging to manage independently.

Therefore, in light of the fact that these ESDD parameters have become an essential aspect of business operations, there is a determined need to take care of them. By allowing these requirements to be counted, the concerned entities and stakeholders will be able to meet the ever-evolving expectations of the investors and, at the same time, drive constructive change.

Incentives of Outsourcing ESDD in Dairy Industry

Dairy industry has been around for so long that the business practices are now almost set in stone. People have been following these practices since time immemorial, and they are often reluctant to change them without any substantial need. On top of that, the need to incorporate these environmental and social concerns can often feel unrewarding, especially when you are unable to see any immediate gains or profits. But times are changing; for instance, technology has taken over everything and businesses need to adapt to these changes and requirements swiftly, lest they will be left behind in this race.

On your path to adaptability and transformation, it is high time that you must prioritise and accommodate the environmental and social effects of your business decisions. All this can seem overwhelming, so allow us to help you revamp the way of doing business. We can handle all this for you so that you can experience unprecedented growth while endeavouring to make a real change in the world. In addition to this, enterprises can reap the following benefits by investing in environmental and social due diligence in dairy industry:

Market Access and Branding

ESDD compliance can open doors for your business to markets with a growing preference for sustainably produced dairy products. Currently, it is all about sustainability and people prefer products with labels that are cruelty-free, organic and, chemical-free, etc. Incorporating environmental and social due diligence in dairy industry involves adopting sustainable approaches and practices in your business and communicating these approaches to the concerned stakeholders at the same time. Sustaining marketing strategies comes handy to communicate with clients, investors, customers, etc. and to showcase your commitment towards sustainability. This also eventually contributes to positive branding and appealing to environmentally conscious consumers and venture capitalists.

Cost-Benefit Analysis

Employing a full-time in-house team for environmental and social due diligence in dairy industry can be quite expensive in the long run. In addition to their regular remuneration, you are required to bear the additional expenses of their training employee benefits, etc. all this is easily avoidable by simply opting to outsource ESDD services, which allows you to pay for it as and when you need the services, which is obviously much more economical than maintaining a huge full-time in-house team.

Contribution Towards ESG Goals

By incorporating environmental and social due diligence in dairy industry, businesses can not only improve their financial performance but can also impact the environmental and social ecosystem. Therefore, effective ESDD Planning can bring about positive change within the dairy industry by ensuring the adopting and incorporation of sustainable practices like reduction in wastage of resources, mitigating volatility, optimum resource utilisation, proper & effective waste management, etc.

All this can contribute significantly to the ESG goals of the dairy industry.

Enhanced Operational Efficiency

Operational efficiency is paramount in every industry as with limited resources businesses want to make the most of it. If you want increased effectiveness and want to streamline your business operations, you will require a team of experts and professionals navigating you through the complex and challenging domains of ESDD to ensure you don't stray from the path of success and growth. Outsourcing your ESDD needs to a firm like ours allows you to be better positioned to handle your compliance needs as well as other core business operations.

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Our Services for ESDD in Dairy Industry

We offer a range of services for Environmental and Social Due Diligence in Dairy Industry. Our package contains a wide assortment of services for your explicit business needs. These are:

Gap Analysis

Our team of experts will help you conduct gap analysis which provides a picture of the current performance of the company with their desired or expected performance, so that a comparison can be made. Majority of the times there is a wide gap between rhetoric and real action and that is where this analysis comes in handy to determine whether a company is meeting expectations and using its resources effectively or not. Our experts, by identifying these gaps for you, can help formulate strategies to bridge that gap in order to maximise the utilisation of these resources and to reach the full potential of your business.

Waste Management Strategies

Dairy industry in India still uses primitive forms of production and processing, which often leads to wastage and over-utilisation of resources and, ultimately, poor and ineffective waste management. Dairy products, by nature, have a shelf life that is to say that they go bad after a certain period of time or they have to be consumed within a limited time; otherwise, they become unfit for human consumption. To avoid this wastage and unsustainable practices, the businesses concerned need to develop proper waste management strategies to minimise the adverse environmental impact of dairy farming and processing. Our multidisciplinary team of experts can help you formulate strategies for reducing waste generation, promoting recycling, and implementing responsible disposal practices. We can help you identify and implement technological solutions that will enhance efficiency and sustainability within your dairy operations.

Obtaining Licenses and Permits

In order to run dairy businesses or operations, you need to obtain the necessary registrations and licenses, as the dairy industry is governed by numerous rules, regulations and laws that prescribe rigorous compliance and standards to guarantee food safety. These rules and regulations often get amended and updated with time; therefore, keeping track of these can be a daunting task. Along with ESDD compliance, with our expertise in licensing and regulation, we can help get you appropriately licensed and certified under the relevant laws and governing bodies to avoid attracting any adverse consequences. Our experts can help you develop health and safety protocols to ensure safe dairy operations.

ESDD Reporting and Communication

Complying with the environmental and social norms alone will not suffice. The same needs to be reported as well to the concerned authorities and even to the concerned stakeholders to showcase your efforts and commitment. The main objective is to encourage transparent reporting. Our team of experts can assist you in developing ESDD and ESG reports tailored to the dairy industry. Communicating sustainability initiatives and performance to the concerned authorities and stakeholders enhances transparency and builds trust, which eventually increases the brand value and reputation of your business.

Added Key Services:

In addition to the package of services we just listed, you may also enjoy the additional services that are provided by our team of experts:

Expert Consultation

As discussed, environmental and social due diligence in dairy industry can be extremely intricate and complicated. You may hire our exclusive services that will help you to steer through the arduous procedural requirements of ESDD as our team of experts will guide you to understand the intricate requirements of all or any compliances, as per your requirements and goals.

Customised Solutions

Environmental and social due diligence in dairy industry requires peculiar solutions and strategies, keeping in mind the nature of the industry. On top of that, we understand that every business's needs are exclusive and explicit, and hence, so are our strategies and plans. Our experts help you formulate comprehensive plans and strategic decisions catering to your specific business needs and goals.

Regular Updates

With Corpbiz by your side, you don't have to worry about taking follow-ups from different departments. You can keep track of everything through our interface. Our staff ensures that our valued clients must get real-time updates so that they can stay abreast of everything, rather than making them run from pillar to post.

Corpbiz- Your Pan-India Partner in Environmental and Social Due Diligence in Dairy Industry.

Reasons to Collaborate with Corpbiz

If you don't believe us, here are some of the reasons with data for you to pick Corpbiz:

  • Prominent Cloud-Based Consultancy Platform.
  • AI-powered Service Delivery.
  • 50,000+ Environmental Experts/CAs/Lawyers.
  • Positive Track Record of 99.9% proficiency.
  • Vast Base of 40,000+ Auditing and Law Firms
  • 400+ Environmental Experts with decades of industry experience.
  • End-to-end Services.
  • Assisted over 10,000+ Budding Entrepreneurs across the world.
  • Trustworthy with 9% Client Recommendations.

Overview of Environmental and Social Due Diligence in Dairy Industry

Recently, the word due diligence has been in the limelight for various reasons across industries. But let us point out that it is not a new concept; in fact, it has been around for a while. But if you are new to the concept, then let us tell you what due diligence is. Due diligence is basically a process of exercising judicious, due and proper care before starting making any financial investment or starting any business venture. Over time, due diligence has become an integral part of business and financial decision-making, as this makes sure that the business has prearranged risk management plans in place to avoid any inadvertent catastrophes. With the world becoming increasingly conscious of growing environmental and social issues, a new branch of due diligence, popularly known as Environmental and Social Due Diligence (ESDD), has emerged. In order to align themselves with sustainability development goals, ESDD has become a premeditated imperative for businesses across sectors.

But what is environmental and social due diligence? Environmental and social due diligence is conducted to evaluate the environmental and social effects of a business's actions and practices. This allows enterprises to evaluate novel investments, projects or ventures and consequently identify the associated veiled risks and liabilities, thereby encouraging them to adopt proper mitigation strategies to save future losses. Between continuing environmental and social predicaments and the ever-evolving protocols, environmental and social due diligence in dairy industry has become crucial in recent years.

In simple terms, environmental and social due diligence in dairy industry refers to the contemplation of environmental and social factors involved in the business operations undertaken in the dairy sector. It essentially requires evaluating the impact of dairy operations and investments on the environment and society.

Need for Environmental and Social Due Diligence in Dairy Industry

With countless variables distressing the industry's sustainability and economic viability, environmental and social due diligence in dairy industry is becoming progressively significant. Dairy is a complex industry, in fact, more complex than the agriculture industry as here animals play a pivotal role in the overall system, with a direct impact on the environmental and social aspects, making it even more necessary to identify and manage the risks involved. Mitigating the risks involved within this sector requires a range of strategies that involve conducting environmental and social due diligence in dairy industry.

Let's see some of the reasons that make environmental and social due diligence in dairy industry an important aspect:

Environmental Impact of Dairy Industry

With the increasing population across the globe, there has been a substantial increase in the demand for milk production, which has, in turn put added pressure on natural resources. Dairy production affects the environment in multiple ways, and the scale of these impacts often depends upon the practices adopted by the dairy farmers. For instance, bovines and their manure produce greenhouse gas (GHG) emissions which ultimately contribute to climate change. According to a study relating to the carbon footprint of the dairy industry published in 2013 in the International Dairy Journal for every kilo gram of milk produced, the amount of carbon dioxide produced was 1.23 kilo grams.

Additionally, improper handling of fertilisers can degrade natural resources like soil and water resources. Furthermore, unsustainable dairy farming can lead to the loss of ecologically significant areas, such as wetlands, and forests etc. Therefore, there is a need to promote sustainable practices amongst dairy farmers and concerned businesses by ensuring ESDD compliance at individual levels.

Social Risks Involved in Dairy Industry

In large-scale dairy operations, various grave issues pertaining to social aspects may crop up, and therefore, it becomes even more imperative to conduct environmental and social due diligence in dairy industry in time, lest it may eventually cause a huge loss of money and business reputation. Concerns like unfair labour practices that are prevalent in the industry, such as low wages, unhygienic working conditions, etc., need to be incorporated in business planning to avoid any future fiascos. In addition to that millions of people depend on dairy farming for their livelihood. The imbalance between the market demand and supply of the dairy products can then often generate unpredictability, making it challenging for dairy farmers to maintain stable incomes. This instability will ultimately lead to adverse social consequences, thereby affecting the overall well-being of society.

Adaptation to Regulatory Changes

Dairy farming is often subject to specific agricultural regulations. Starting a dairy business involves multiple registrations and licenses that you need to obtain, such as from dairy development programme, veterinary departments, dairy cooperative society. Additionally, businesses need to comply with various BIS Standards and FSSAI rules and regulations. Complying with all these licenses, rules, regulations, and standards can be cumbersome as these laws are challenging and procedurally lengthy; therefore understanding them is not always as easy as it seems, and non-compliance can have serious adverse effects. Therefore, outsourcing ESDD services ensures that your business stays abreast of evolving regulations, reducing the risk of non-compliance.

Importance of Environmental and Social Due Diligence in Dairy Industry

The importance of dairy sector in India is evident from the fact that around 70 million households are dependent on dairy farming to earn their livelihood. In fact, dairy farmers make a steady income even in extreme conditions such as drought and pandemics, and additionally, milk is a major economic commodity in Indian agriculture. Even during the pandemic in 2020, the dairy industry in India was the least affected and showcased its resilience.

The dairy industry has also witnessed a shift in the taste and penchants of consumers over a period of time. Consumers are now becoming more health conscious and are therefore willing to spend more on milk and milk products. Not just bovine, but non-bovine milk is also gaining popularity amongst health and nutrition enthusiasts. With this increased demand and without much revolution in the existing milk production and processing system, it may be difficult to meet the demand for quality and value-added milk and milk products in future.

Despite the increase in population and climate change, the dairy industry in India has shown sustainable growth over the years. However, with multifaceted challenges and several other constraints, the dairy industry in India may not be able to meet the future requirements of milk and milk products in the coming years, and hence, the need of the hour is to revisit the existing practices prevalent in the sector. There is a dire need to transform the dairy sector from subsistence to the commercial sector.

However, while promoting the commercialisation of dairy industry, the focus must also be to protect the interests of smaller dairy producers, as measures which ignore these issues would be labelled as inequitable and are obviously going to receive backlash. Therefore, in order to achieve all-inclusive growth, boosting smallholder dairying as a whole and promoting commercial dairy farming would ensure sustainable economic development of the industry. The stakeholders need to make efforts at the individual level to maintain the sustainability by incorporating environmental and social concerns in their business decision-making.

This is where you can approach our in-house experts for guidance. We are at your disposal to provide end-to-end services throughout your environmental and social due diligence journey.

Our team of professionals specialise in Environmental and Social Due Diligence in Dairy Industry. Therefore, we can offer expert supervision throughout the environmental and social due diligence process. We will ensure all your regulatory compliance gets fulfilled every step of the way and in addition to that, we will keep providing fitting and prompt advice throughout the as well. We constantly update our valuable clients at regular intervals so that they can stay abreast of everything.

How Significant is Dairy Industry for India?

The contribution of dairy farming to food, nutrition and securing livelihood for millions of people in India cannot be denied. The industry has experienced tremendous growth post-White Revolution, which resulted in higher milk production. Thereafter, the pace of dairy production experienced a bigger thrust, and now India ranks as the highest milk producer by contributing around 24 per cent of the global milk production during the year 2021-2022. In fact, during the last decade, the milk production of India has witnessed an increase of 61 per cent. During 2021-2022, milk production has reached around 222 MT (Million Tonnes), thereby witnessing an increase of 5.29 per cent over the previous year. This growth is expected to touch 628 MT (Million Tonnes) by 2047 owing to the growing population and the consequent increasing demand for dairy products. If we take a look at the export of dairy products by India during the year 2022-23, the same stood at 67,572.99 MT (Million Tonnes), which was worth USD 284.65 million. The dairy industry market in India is worth around INR 13 lakh crore, which is expected to cross more than INR 30 lakh crore by 2027.

The industry has no doubt grown at an extraordinary pace and has the potential to ensure dairy security not just for our country but also for the world, but now the goal is to increase dairy productivity. Moreover, the dairy industry is growing at a much faster rate as compared to other sub-sectors of agriculture. Despite this growth pattern of the dairy industry, there are various hurdles that you might need to cross in this industry. The confluence of several trends, dietary changes, climate change, etc., can be seen influencing how dairy industry operates. Therefore, there is a dire need to monitor this industry by ensuring regulatory compliance in this sector to prevent huge financial losses. Consequently, preparing to invest in Environmental and Social Due Diligence in Dairy Industry is essential in order to keep up with the projected growth perspective.

However, conducting Environmental and Social Due Diligence in Dairy Industry can be quite cumbersome, and these gruelling requirements often necessitate professional help and technical guidance. Therefore, entities engaged in the dairy industry particularly often feel the need to outsource the environment and social due diligence services to circumvent any involuntary fiascos on their part.

Why Ensure ESDD Compliance with Corpbiz?

Corpbiz is known for its contribution to the legal, financial, environmental and social due diligence service domain across the globe. We help our clients in achieving their all-inclusive goals and targets in a short span of time and that too at a very low cost. Our team of scrupulous professionals has an effective track record of 99.9 % efficiency in performing Environmental and Social Due Diligence in Dairy Industry. Our all-inclusive growth approach and valuable solutions are what allow us to have a renowned global client base. We are constantly motivated to integrate the insights of our experienced professionals to help our revered clients by providing them with top-notch services. We take an all-inclusive, comprehensive approach, considering both environmental and social factors, in order to create a well-rounded ESDD strategy.

We not only ensure regulatory compliance but also help you fulfil all your other commercial needs. Our team at Corpbiz is well-equipped to handle your needs particularly pertaining to Environmental and Social Due Diligence in Dairy Industry. Our industry experts will be providing you with unparalleled guidance so that you can stay in alignment with the best practices of your respective industry. We help you streamline the entire compliance process, which will eventually allow your business to experience tremendous growth.

If you would like to deliberate more about Environmental and Social Due Diligence in Dairy Industry, please don't hesitate to contact us.

Getting Started

Brace yourself to achieve excellence in environmental and due diligence practices. Reach out to us at 9121230280, to discuss how Corpbiz can contribute to your quest of achieving success in dairy industry. Join us in building a sustainable future for the Dairy Industry in India.

Frequently Asked Questions

Environmental and social due diligence is a process to evaluate the environmental and social impact of business operations and practices. This helps businesses evaluate new investments, ventures, or projects and identify the possible hidden risks and liabilities associated with them, thereby letting them adopt mitigation strategies well in advance to save future costs and losses.

Environmental due diligence primarily involves taking steps to assess the environmental impacts of a business activity or any new undertaking or purchase and further ensuring that the concerned regulatory standards are met.

Environmental Due Diligence depends on a number of factors, such as the type of industry, sector, business operation or activity, etc., but a few examples of environmental due diligence are taking measures to mitigate actual and potential risks involved, formulating appropriate risk management plans, deploying effective waste management solutions, reducing overutilisation of resources etc.

Dairy farming can have adverse impacts on the environment, such as air and water pollution. Intensive dairy farming practices can also lead to deforestation and soil degradation. In addition to this, according to a report published by the Food and Agriculture Organization (FAO) of the United Nations, Dairy is responsible for around 3 per cent of the total human-induced greenhouse gas emissions.

Some of the most common examples of due diligence are due diligence in HR and operations, due diligence in mergers & acquisitions and due diligence in real estate.

Sustainable dairy is one that releases less greenhouse gas emissions by adopting best practices in producing and processing milk and milk products, with the help of introducing technologies and advanced equipment to sustain millions of livelihoods that are dependent on the dairy industry and promote sustainable growth and economic viability.

The idea of sustainability in dairy farming has been introduced and promoted by the government with the main focus on hygiene, cattle health, best practices related to the production and processing of dairy products and waste management.

India currently ranks as the highest milk producer by contributing around 24 per cent of the global milk production during the year 2021-2022. In fact, during the last decade, the milk production of India has witnessed an increase of 61 per cent. During 2021-2022, milk production has reached around 222 MT (Million Tonnes), thereby witnessing an increase of 5.29 per cent over the previous year. This growth is expected to touch 628 MT (Million Tonnes) by 2047 owing to the growing population and the consequent increasing demand for dairy products.

Environmental and Social risks are basically the probable adverse consequences that may arise while undertaking a new business venture, operation, or project and the anticipated impact on the environment, such as on water, air, or land, and on the overall social community, such as on nearby residents, employees, etc.

There are various types of due diligence that are conducted before undertaking a business operation, some of which are Regulatory Due Diligence, Environmental Due Diligence, Social Due Diligence, Operational Due Diligence, etc.

The purpose of due diligence is to enable businesses and enterprises to perform risk and compliance checks and ultimately protect themselves against liabilities, which may cause huge financial losses in the future.

Social due diligence refers to a process of evaluating the social and ethical practices adopted by an enterprise and their overall impact. It requires assessing how the business operations of an organisation impact its clients/customers, employees and society. This helps to cover the potential risks associated with human rights, worker rights, labour practices, etc.

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