"We've put a lot of effort into understanding the future of work, although no one has the answers at the moment," says Tara McCarthy, CEO at Bord Bia. "But we'll keep talking and learning our way through it, and review our progress as a collective."

McCarthy is discussing her organisation's approach to the return to the office after two years of remote working, which has had many positive outcomes for Bord Bia. That said, there is much to be gained in a hybrid environment where you retain the best of both worlds.

"We were fit-for-purpose going into COVID-19. The agility of our people meant that we could continue to deliver through technology and Bord Bia was the first agency in the State to conduct digital trade missions. In some ways it was easy to go full digital, but now we need to move back into the real world."

While McCarthy is an advocate of remote working, she is acutely aware of the challenges it brings – the need for collegiality, the diminished capacity to coach and train, and the inability to pick up on certain nuances. "The challenge now is to design that back into the business. During the pandemic, I significantly upped the ante on engagement and was more purposeful in ensuring that people had the opportunity to ask questions and engage with the business. And that will carry through to the hybrid project in the sense that we will learn together, review together, and make the call together."

Threats and opportunities

Hybrid working is just one of a list of issues on the CEO agenda. While optimistic, McCarthy is gearing up for a turbulent period ahead.

"If you look at the numbers, the value of Ireland's food and drink industry increased by 4% in 2021 to a record €13.5 billion. That's €37 million worth of Irish food leaving Ireland each day and when you consider the innovation, resilience and strength of the industry, how could you not be optimistic?" she says.

But as McCarthy's peers noted in the 25^th Annual Global CEO Survey, the headwinds are becoming stronger and evolving over time. "Supply chain issues and input costs are occupying people's minds at the moment," says McCarthy. "Inflation is running riot on raw materials, labour shortages are affecting the industry, Brexit hasn't concluded yet, and that's before you consider the global uncertainty the world is facing. It's difficult to overstate this challenge for low-margin businesses which, when you look at the food industry, include SMEs, family businesses and family farms."

In addition, the industry will have to get to grips with sectoral carbon budgets and the possible need to increase production. "Clearly, the industry will need to adapt and innovate very quickly to tackle this challenge, but sustainability is also an amazing opportunity for the food and drinks industry because it has the right credentials."

A head start on sustainability

In January, Bord Bia launched its three-year strategy with a focus on 'nurturing a thriving future'. And although such language is expected in today's environment, Bord Bia is very much ahead of the ESG curve and last year became the most reputable organisation in the State.

"We have worked on this for the last decade or more. Just look at Origin Green, the world's first and only national food and drink sustainability programme. We have 300 company members in Origin Green, representing 90% of the country's food and drink exports. Each company has a sustainability plan with specific targets, and Bord Bia is currently measuring 2,800 sustainability-related metrics. This is important to build trust with consumers, who increasingly use producers' environmental footprints as part of their purchasing criteria. So not only is this the right thing to do, it makes perfect business sense."

It's all part of the trust-building process, the value of which became evident during the COVID-19 pandemic McCarthy says. "People were looking for safety and trust, and returned to comfort brands because of the reassurance they provided," she says. "But building trust in this industry takes time, and it relies on data. Today, you earn trust by using data to prove everything you say you're doing, even if it's rare that someone would take the trouble to enquire. It is always important to have the capacity to prove that your actions align with your strategy."

McCarthy urges fellow CEOs to focus on metrics like working for society, improving people's lives in the community and changing the world for the better. "These are the kind of metrics that any organisation that wants to be trusted will need to be able to speak to," she adds.

Lead by example

While Bord Bia has a critical role to play in driving environmental change at a national level within the agrifood industry, McCarthy is keen to ensure that the 'social' pillar of ESG is brought to bear in the years ahead. To that end, Bord Bia, in partnership with AON, recently launched AgDiF, which revolves around the industry's diversity and inclusion agenda.

"Our focus is to ensure that our industry is both responsive and responsible, so we've focused on the talent agenda to prompt better behaviours, support people in doing the right thing, and demonstrate what the right thing actually looks like," says McCarthy. "We have run masterclasses to upskill people at executive and leadership levels, and are learning from other organisations – for example, by aligning ourselves with the 30% Club from the outset."

McCarthy also insisted on having the initiative chaired by an independent third party. "We need to consistently hold ourselves accountable and aspire to best practice, because the issues around talent and diversity and inclusion are critical to business success. Just like environmental sustainability, it's the right thing to do – but it's a fundamental risk if you don't."