Woolworths Group

FAIRR Commentary

• Woolworths has around 25% share of the fresh meat market in Australia. As the largest grocer in Australia and given the country’s high per capita meat consumption, the company is exposed to Australia’s significant vulnerability to climate change impacts on agriculture.
• Despite this exposure, the company has been silent on its role in enabling dietary shifts. They provide no discussion on whether a focus on production efficiency alone is enough to counter the impacts of livestock production.
• The company is working on some sustainable sourcing initiatives for its animal proteins, such as its focus on water risk in beef and pork. It has yet to set a Scope 3 emissions target or completed TCFD scenario analysis, though it has said these initiatives are underway.
• On the product development and consumer engagement side, the company has a strong offering of own-brand as well as external brand plant based and alternative protein/food product options. It also has some initiatives that link healthy eating with more plant-based diets and are merchandising meat-free options in the meat aisle.
• Overall, the company does not demonstrate a strategic, company-wide programme to transition its portfolio. It does not have any group-wide metrics that give an indication of its exposure to animal-based foods.
• The company has made a strong start by growing its product portfolio of alternative options as well as by beginning to engage consumers on healthy plant-based diets.
• We would encourage the company to continue to broaden its sustainability focus and build a more strategic plan to transition its product portfolio (through, for example, category-based targets) to ensure any exposure to animal proteins is in line with a low-carbon strategy.

Company Comment

We have reviewed the report and have nothing further to add