Despite the growing recognition of the environmental, social, and governance (ESG) framework by companies as a transparency tool to meet stakeholders’ requirements, a universal standard for ESG reporting is currently lacking, potentially fueling greenwashing phenomena. This study focuses on one of the leading sectors dominated by big players at the Italian level, the poultry sector, with the aim of analyzing how the green transition can be integrated into ESG company identity. This study employs, for the first time, the grounded theory (GT) methodology to investigate how sustainability is “perceived” and “practiced” by the entrepreneurs of the Italian poultry supply chain. The results provide insights into how changes toward greater sustainability can be transformed into concrete pathways that function within the organizational design. The outcome could be the reconfiguration of the organizational design, whereby the practice becomes incisive, or its circumvention, whereby the practice is adopted only superficially. The development of a more standardized ESG reporting system, along with incentivization measures and policies supporting small and medium-sized agrifood companies in the adoption of sustainability practices, could contribute to overcoming the “detachment” between the sustainability “perceived” and “practiced” by agrifood companies and to effectively adopting environmental sustainability as a development strategy.

Poultry livestock profitability significantly depends on feed, accounting for 60–70% of the total production cost, of which protein sources are among of the most expensive ingredients. The maintenance of profitability while meeting feed demand and reducing the environmental impact represents a considerable challenge driving research of alternative protein sources (APS), such as insects and algae meals. This study employs, for the first time, techno-economic assessment (TEA) methodology to evaluate the technological performance and the industrial feasibility of an APS-based poultry feed production method based on the valorization of the pre-treated organic fraction of municipal solid waste (OFMSW) as a substrate for Hermetia illucens larval growth and microalgae cultivation. The Excel-based analysis, which evaluated the mass and energy balance as well as the income statement, was integrated with a thematic analysis focused on exploring how the overall value attributed to the sustainability concept is reflected in the willingness to adopt sustainable business models by entrepreneurs in the poultry sector. Despite the ability to generate revenues, the model cannot be said to be profitable for animal feed production due to the strong dependence of its profitability on scale economy logics. Enabling solutions could be derived from the recovery of abandoned infrastructures, government financial incentives, and integrated systems associating OFMSW treatment with poultry farming, thus resulting in marked economic sustainability and profitability: key elements from the poultry entrepreneurs’ point of view.