Australian Agricultural Co Ltd

The company plans to establish a science-based net zero target and develop a clear path for emissions reduction but has not yet set or developed such a target. It is collaborating with partners to explore methane reduction using emerging feed additive technology for cattle and is investigating various emissions reduction and methane abatement options in its operations. However, it has not disclosed any specific methane emission reduction target or indicated progress towards setting one.

The company is enhancing climate-positive practices by improving greenhouse gas efficiency, transitioning to renewable energy, advancing carbon sequestration, and reducing methane emissions. Initiatives include targeted trials to reduce methane, carbon sequestration exploration, emissions efficiency enhancement through the BCHM Project, and refining greenhouse gas accounting. The company has joined the ZNE Ag CRC as a Tier-1 Partner, committing $3 million over ten years and granting access to its supply chain to support climate-smart technology research projects. This initiative aims to aid Australia's agricultural growth while contributing to national and global emissions reduction targets and achieving net-zero by 2040. However, the company does not disclose quantitative targets for reducing Scope 1 and 2 emissions. While it has completed its first Scope 3 emissions assessment, it has not established a target for their reduction.

The company maintains ongoing dialogue with stakeholders on sustainability, including suppliers and third-party processors, aiming to meet their needs and promote improvement in their practices. It engages suppliers through weekly performance reviews and on-site management. The company is advancing landscape-scale decision-making in partnership with Cibo Labs to enhance land condition assessments and data validation. It is also exploring natural capital metrics for transparent nature-related impact assessment, using frameworks like TNFD, Climateworks Centre, and AfN. In emissions management, the company is involved in carbon sequestration projects and the Beef Cattle Herd Management (BCHM) Project, which aims to reduce emissions intensity in pasture-fed cattle through improved management practices.

The company is advancing its grazing practices by adopting regenerative and rotational techniques, particularly through long-term trials in the challenging Northern rangelands. These trials aim to balance grazing with periods of rest and inform both ground management practices and infrastructure planning. In collaboration with ZNE Ag CRC, the company is involved in research focused on low-emissions plant solutions. It is also assessing potential carbon sequestration projects using soil carbon and vegetation methods. As part of these efforts, the company has participated in the Landscape Carbon by Satellite Project, collecting extensive soil and drone data, and is on track for project completion in 2025. Additionally, the company is developing tools for risk assessment and management interventions to protect carbon stocks within the landscape.

The company is exploring methane abatement options, including a trial of asparagopsis as a feed additive to reduce emissions in long-fed cattle in collaboration with Sea Forest, Meat and Livestock Australia, and the University of New England. It has also initiated trials to administer feed additives to grazing cattle and partnered with the ZNE Ag CRC, which focuses on methane-free cattle and sheep among other research areas.

The company reported FY2024 emissions of 655,918 tCO2e for livestock and farming-related activities and 28,471 tCO2e for energy-related activities under Scope 1. Scope 2 emissions were 2,609 tCO2e, while Scope 3 emissions were 158,085 tCO2e.

The company reported Scope 1 emissions, with enteric methane contributing 604,860 tCO2e (89.3%) and manure and urine emissions (methane and nitrous oxide) contributing 44,587 tCO2e (6.4%) of total emissions. The company identified its most significant source of Scope 3 emissions as purchased goods and services, including feedlot inputs, supplements, and external livestock cattle purchases. These are being reduced as the company completes its herd rebuild. In collaboration with Integrity Ag, the company completed a lifecycle assessment of its emissions footprint, covering all activities from breeding, growing, and processing to global port arrival. This assessment includes indirect emissions from activities such as feed production. The company examines the carbon footprint of its products, measured as CO2-e per kilogram of beef sold. In FY24, this was 12.3kg CO2-e/kg of live weight turnoff after feedlot and 26.7kg CO2-e/kg of beef produced after processing. However, it does not explicitly disclose GHG emissions from land-use change.

The company has not responded to the CDP Climate Change Questionnaire 2023. Its GHG emissions data has been verified by KPMG.

Between 2023 and 2024, the company reported a 10.81% increase in combined Scope 1 and 2 emissions, rising from 620,004 to 686,998 tCO2e. From 2022 to 2024, these emissions rose by 36.4%, representing an average annual increase of 18.2%. Scope 3 emissions for FY2024 are reported as 158,085 tCO2e; however, the company does not provide Scope 3 data for previous years, preventing a full comparison of its GHG inventory. In FY2024, the company recorded a 20.93% increase in enteric methane emissions, from 500,197 tCO2e in FY2023 to 604,860 tCO2e. Scope 1 emissions totalled 684,389 tCO2e, Scope 2 emissions were 2,609 tCO2e, and Scope 3 emissions were 158,085 tCO2e for FY2024.

In FY22, the company engaged a third-party climate specialist to conduct a qualitative scenario analysis of its transition and physical climate-related risks. The analysis utilised internal data and external assumptions based on <2°C and >3°C warming scenarios and is regularly updated with ongoing research and expert input.

The company acknowledges physical risks from climate change, such as disruptions in the availability of feed inputs due to extreme events impacting production or supply routes. To mitigate these risks, it produces its own feed, maintains a flexible and diversified supply base, and monitors heat load daily in feedlot operations. It uses the Cattle Heat Load Toolbox for forecasting and provides shade in pens to help livestock manage body temperature during extreme heat. The company does not address increased veterinary and medicine costs or the impact of rising electricity and energy demands and prices. It highlights potential exposure to increased carbon costs from carbon border tariffs and emission reduction compliance, which may affect market access or entry costs. To counter this, the company is developing an internal carbon programme and exploring emissions reduction and methane abatement options. The company does not disclose the number of financially material events resulting from climate risk in the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company operates cattle farms in Australia, specifically in Queensland and the Northern Territory, which are areas at high risk of deforestation. It reports that no primary woodland or forest was cleared for grazing purposes in FY2024. An initial high-level assessment suggests a low deforestation risk, but the company does not disclose the methods used for this assessment, nor whether cattle are indirectly sourced from outside these areas.

The company does not report having a deforestation/conversion-free target for cattle.

The company does not disclose the proportion of cattle sourced which complies with its commitment. It does not state that progress against its commitment undergoes a third-party audit, nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose any information on how it engages soy suppliers on deforestation and does not provide support to soy producers to encourage deforestation-free production or improve traceability.

The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.

The company does not discuss innovations or practices to move towards sustainable feed sources.

Deforestation is not referenced in the company's supplier code of conduct. Furthermore, the company does not disclose providing support to cattle producers to encourage deforestation-free production or improve traceability.

The company does not disclose how it monitors compliance with its commitment or the actions taken in cases of non-compliance. Furthermore, it does not disclose the level of traceability in its cattle supply chain.

The company does not disclose information regarding innovative and sustainable farming practices implemented to improve biodiversity and soil health.

The company has not conducted a risk assessment for its processing facilities, specifically regarding water-stressed areas. Although it recognises the significance of water for its operations and is exploring improved measurement and management practices, it has not disclosed its water consumption data. In 2023, the company engaged a third party to identify nature-related risks, highlighting water as a significant dependency and impact. Some recommendations from this report are being implemented. The company reports advancements in tracking water usage by equipping new solar bores with remote telemetry and is enhancing water efficiency through initiatives like converting earthen dams to tanks and recycling water at its feedlot and farming sites. Further initiatives are planned based on the third-party report's recommendations.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

The company does not report water withdrawals or consumption by source or by water stress level. It does not disclose water-related CAPEX or OPEX, nor did it respond to the CDP Water Questionnaire.

The company operates two feedlots, growing some feed internally and procuring the rest. These feedlots are regulated by environmental licences from the Queensland Department of Agriculture and Fisheries and must report annually to the National Pollution Inventory on water, air, and soil quality. The company reported no licence breaches in FY2024 and aims to enhance water efficiency across operations, exemplified by recycling wastewater from feedlots for cropping to reduce irrigation water reliance. However, the company has not provided details on guidance, support, or incentives for suppliers or growers concerning water use in feed production. Additionally, it has not disclosed whether it has partnered with any third party to support its strategy for feed sourcing or farming focused on water usage.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities produced or sourced in water-stressed areas. It recognises the importance of water for livestock consumption and general on-farm use. In its 2024 Sustainability Report, the company focuses on improving water-use efficiency and sustainable withdrawals through recycling and converting diesel bores to solar technology equipped with telemetry. This allows for better monitoring of water use efficiency for cattle and identifies opportunities for improvement. The company reports equipping boreholes with telemetry to enhance water monitoring and reduce evaporation and seepage losses. It is also progressively converting earthen water storage to enclosed tanks to further minimise water loss.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company does not identify facilities that operate in locations with high and medium water stress from a quality perspective. It has not set a quality or volume target for wastewater, nor does it report the number of instances of non-compliance with water quality permits, standards, and regulations.

The company does not disclose the quality or volume of wastewater discharge. No evidence was found that wastewater-related data has been audited, and the company did not respond to the CDP Water Questionnaire in 2022.

The company does not disclose having improved the wastewater quality at the aggregate level compared to the previous reporting period or reduced the volume of wastewater discharged.

The company utilises livestock manure from its Goonoo farm as a natural fertiliser in its cropping operations, reducing the need for synthetic fertilisers and enhancing soil health by increasing organic matter and micronutrients. It is also exploring higher-value composted products to maximise nutrient value, potentially benefiting soil biological communities, increasing soil carbon sequestration, and improving crop productivity. However, the company has not disclosed whether it sources feed only from suppliers with a nutrient management plan or produces its own feed under such a plan. While the Rangelands and Nature Team supports sustainable grazing practices, details of this support, including nutrient and fertiliser management, are not specified. Additionally, the company has not established partnerships with third parties regarding its sourcing or farming strategy, particularly concerning nutrient pollution or fertiliser use.

The company utilises nutrients from livestock manure as a natural fertiliser at its Goonoo site, reducing reliance on synthetic fertilisers and enhancing soil health through increased organic matter and micronutrients. The company's website indicates that Goonoo hosts a farm and feed mill manager, suggesting the crops are related to feed supply. However, the company does not disclose information about pesticide use in its feed supply chain.

The company utilises nutrients from livestock manure as a natural fertiliser for crops at the Goonoo farm, reducing dependency on synthetic fertilisers and enhancing soil health by increasing organic matter and micronutrients. The company has mapped tier 1 ecosystems, including rivers and water courses, across its estate. It has begun implementing the Accounting for Nature Framework to assess the ecological condition of landscapes, including vegetation, fauna, soil, and water quality. However, this assessment appears incomplete.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company does not disclose information on antibiotics. While it implements measures to reduce disease incidence, such as enhanced biosecurity, reduced stocking density with an extensive pasture rearing system, and its polled Wagyu programme to minimise routine mutilation, it does not address the use of vaccines, nutritional supplements, or other animal welfare measures.

The company does not disclose the quantity of antibiotics used.

The company has adopted the Five Domains approach to animal wellbeing, focusing on good nutrition, a healthy environment, physical health, positive behaviour, and mental state for animals. It engages and trains employees on animal welfare issues through policies, training programmes, specialised training forums, and biosecurity initiatives addressing concerns like Foot and Mouth Disease and Lumpy Skin Disease. The company outlines disciplinary actions, including potential termination, for any team member found responsible for animal abuse. It shows leadership in animal welfare through research and development, driven by its Animal Health and Welfare Committee. It is also developing an internationally recognised AHW certification framework in collaboration with industry partners, aiming to establish this standard by 2024 to enhance welfare standards in northern Australia's beef industry.

The company employs grazing practices that prevent close confinement, allowing cattle to graze freely across expansive rangelands in northern Australia for two to three years. This approach ensures a natural and spacious environment with minimal movement restrictions and a diverse native diet. However, the company does not explicitly commit to avoiding routine mutilation. While it utilises selective breeding to reduce the need for dehorning, there is no specific mention of eliminating practices such as tail docking, surgical castration, or branding. There are also no explicit commitments to avoiding long-distance transportation or ensuring humane slaughter. While the company provides cattle with pasture access to facilitate natural behaviours, other enrichment measures are not detailed. Lastly, its breeding and genetics programme aims to select traits suited to the environment and minimise heat impact. Nevertheless, the company does not disclose any exclusion of breeds with production traits that could cause anatomical or metabolic disorders.

The company participates in several independently audited animal welfare assurance programmes, such as Livestock Production Assurance (LPA), the National Feedlot Accreditation Scheme (NFAS), the Australian Livestock Processing Industry Animal Welfare Certification System (AAWCS), and the Exporter Supply Chain Assurance System (ESCAS). These certifications aim to ensure compliance with animal welfare, food safety, and environmental standards. However, the company does not disclose the extent to which these certifications are applied across its operations, leaving it unclear whether they cover the majority of its activities.

The company does not disclose information on animal welfare certifications or assurance programs for its beef operations.

The company does not disclose information on key animal welfare risks in beef.

The company states a commitment to respecting human rights but does not report adherence to internationally agreed human rights principles.

The company conducts risk assessments on the majority of its tier-one suppliers via a third-party platform to identify modern slavery risks in its value chain. It also performs due diligence on suppliers and product distributors to identify such risks, stating that it will collaborate to mitigate these risks or terminate relationships if necessary. However, the company does not detail its approach to assessing risks or addressing human rights violations in its own operations. To mitigate modern slavery risks, the company employs mechanisms such as contractual controls for high-risk sectors, collaboration with industry peers and organisations, and employee training.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company commits to prohibiting discrimination, harassment, forced labour, human trafficking, and child labour but does not explicitly confirm providing a living wage or sick pay to all employees. Additionally, it does not specify whether it audits compliance with its policies in its direct operations. The company requires suppliers to prohibit forced and child labour but lacks a supplier policy explicitly prohibiting discrimination and abuse or promoting fair wages.

The company states it conducts due diligence on its suppliers and product distributors to identify potential modern slavery risks in its supply chain. However, it is unclear if audits for these policy areas are conducted either by the company or a third party. The company provides a website, email address, and phone number for stakeholders to report grievances, with the option for anonymity. However, it does not disclose whether stakeholders were consulted in designing the grievance mechanism. The whistleblowing channel is also available to suppliers. The company does not report the number of grievances received during the reporting year.

The company is committed to promoting a healthy and safe work environment but does not disclose any occupational health and safety certifications. It also does not provide data on the percentage of facilities with health and safety committees involving worker representatives. Additionally, the company has not assessed or discussed the risk of antimicrobial resistance for its workforce.

The company reports a 13% increase in incident rates and Total Recordable Injury Frequency Rate (TRIFR) in FY2024 compared to FY2023, although the exact injury rates are not disclosed. Despite this, there has been a 36% reduction in the lost time injury frequency in 2023 compared to the previous year, without exact figures provided. The company reports zero fatalities from FY2021 to FY2024. For FY2024, the company discloses a turnover rate of 49%, though it does not provide a breakdown by seniority level.

The company does not disclose a statement on the right to freedom of association or the unionisation rate, nor does it describe measures taken to support these rights. Additionally, it has not clarified whether its supplier code of conduct includes a policy requirement on freedom of association and collective bargaining.

The company does not disclose the percentage or number of workers covered by collective bargaining agreements, nor does it provide a statement in support of collective bargaining. It employs 445 workers, consisting of 402 permanent and 43 temporary employees, but does not specify the number of full-time versus part-time workers or the number of subcontracted workers used in the reporting year.

The company manages food industry risks via HACCP accreditation and regular audits, working with third-party entities to ensure compliance with governmental food safety standards. It oversees products across most of the supply chain but does not disclose whether it requires GFSI certification from its suppliers. Notably, 100% of its third-party processing facilities are certified to the GFSI standard.

The company does not report the number or frequency of food safety audits conducted during the reporting year. It also does not specify associated corrective action rates, nor does it disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company acknowledges food safety as a key issue within GRI mapping but does not disclose whether it has a product recall system. It reports having zero product recalls in FY2024.

The company reports zero market bans in FY2024.

The company states that its Board oversees sustainability and ESG issues, with a Sustainability Directors Working Group implemented in 2022 involving select board members to guide management in developing sustainability initiatives. In 2021, the company conducted a materiality assessment with third-party assistance and aligned its material topics with the GRI Sector Standard for Agriculture, Aquaculture, and Fishing in 2023. This assessment highlights key areas including renewable energy transition, air quality, water stewardship, climate change, animal health and welfare, responsible value chain management, climate and nature lobbying, and community engagement. However, it does not specify whether the Board of Directors was involved in the materiality assessment. The company provides a board skills matrix showing 4 of 9 directors possess sustainability expertise. It does not indicate any board member with expertise in food safety. The matrix also shows that all board members have skills in innovation.

The company calculates executive short-term incentives using a mix of financial, non-financial, and individual performance metrics but does not clearly link remuneration to sustainability performance. The company engages with industry bodies and governments on sustainability and decarbonisation policies. It is involved with peers, NGOs, and civil organisations to combat modern slavery risks in the sector. The company does not disclose memberships in trade associations, alliances, or coalitions and fails to commit its policy-engagement activities to the objective of restricting global temperature rise to 1.5°C.

The company reports investing in the Zero Net Emissions Ag Cooperative Research Centre to aid in transitioning to net-zero food systems by 2040. Additionally, it is collaborating with Charles Darwin University on a research project exploring innovative waste capture and recycling solutions. However, the company does not publicly benchmark itself against peers in sustainability and innovation.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.