In the agrifood sector, the explosive increase in information about environmental sustainability, often in uncoordinated information systems, has created a new form of ignorance (‘meta-ignorance’) that diminishes the effectiveness of information on decision-makers. Flows of information are governed by informal and formal social arrangements that we can collectively call Informational Institutions. In this paper, we have reviewed the recent literature on such institutions. From the perspectives of information theory and new institutional economics, current informational institutions are increasing the information entropy of communications concerning environmental sustainability and stakeholders’ transaction costs of using relevant information. In our view this reduces the effectiveness of informational governance. Future research on informational governance should explicitly address these aspects.