Twenty of Australia’s largest and most influential food companies are failing in key areas of sustainability, according to the Australian Conservation Foundation (ACF).
ACF’s first-of-its-kind Future of Food benchmark analysis, reveals most major food businesses could not provide evidence to trace the ingredients of their products back to farm level. In addition, most companies have not set targets to reduce pollution, water use or damage to habitats.
The analysis marks food companies on 37 sustainability indicators across four areas – risk assessment and disclosure, nature targets, strategy and action, and governance – and examines each company’s commitment to transparent reporting on these criteria.
None got a pass mark above 50%.
“Food companies are highly exposed to nature-related risk, yet few acknowledge the risk or take steps to reduce it,” said ACF Corporate Campaigner Bonnie Graham.
“Not acting will have consequences for farmers, shareholders, nature and ultimately our food security.”
Cattle production is the number one driver of landclearing in Australia, yet the biggest buyers of beef – supermarket giants Coles and Woolworths – have not set targets to get deforestation out of their supply chains – even though their rival Aldi has, finds the report.
“ALDI is the only supermarket with a credible target to eliminate deforestation from its supply chain, but more than half of all the fresh beef Australians buy comes from Coles and Woolworths,” Ms Graham said.
She says Australian companies have been slower to act than their international counterparts, which have faced more pressure from shareholders, regulators and consumers. But that’s no excuse for dragging their feet.
“There are hopeful signs of emerging leadership and seeds of change in the food sector, especially from sustainable and innovative farmers, but this analysis shows most companies are at the start of a journey to understand and respond to their inherent reliance on nature,” Ms Graham said.