Australian Agricultural Co Ltd

The company states that it considers its pathway to science-aligned emissions reduction. It will set a science-based net zero target with a clear path for action. However, no evidence was found that it has an SBT or is in the process of developing one. It is working with its partners to accelerate the science of methane reduction through the emerging technology of feed additives for its cattle and completed the first trial to test emerging technologies in enteric methane emissions reduction in FY 2023. It supports the Global Methane Pledge, a commitment to reduce methane emissions by 30% by 2030. However, no evidence was found that the company has a specific methane emission reduction target or is working towards setting one.

The company is testing technologies to deliver a reduction in emissions. However, it does not disclose any current quantitative targets to reduce Scope 1 and 2 emissions. It purchases inputs such as feed products, heavy machinery and equipment, infrastructure materials, and animal welfare products. Further, it mentions that it will undergo a project to understand further its Scope 1 and 2 emissions and potential intervention points and an early-stage assessment of its Scope 3 emissions sources. However, no evidence was found that the company sets any non-SBT target for Scope 3.

The company has supported Cibo Labs in developing satellite-assisted land management tools for northern Australian beef producers. The LRU framework combines time series data to inform data-driven land management decisions, enabling sustainable grazing management, property development, land condition assessment, carbon accounting, and biodiversity assessments. It also works on carbon sequestration and abatement projects to reduce climate impact. The Beef Cattle Herd Management Project (BCHM) has provided the company with opportunities to generate ACCUs from improved growth performance resulting from genetic improvement, new management practices, and capital improvements.

The company uses feed lots and, therefore, is involved in farming feed. However, it also widely uses pastures in its operations. It discusses developing a dry tropics approach to regenerative grazing practices and incorporating regenerative practices into its farming practices to promote biodiversity, soil, and water health. In addition, it has initiated trials on appropriately incorporating improved pastures to build landscape health and drive carbon sequestration.

The company claims to be looking into various methane abatement options, including its most recent asparagopsis trial. Additionally, it reveals that it worked with Sea Forest, Meat and Livestock Australia, and the University of New England to carry out a groundbreaking trial to examine asparagopsis' ability to reduce methane in long-fed Wagyu cattle. It observed some promising outcomes from this trial but highlighted several issues that must be resolved before using asparagopsis more extensively in its operations.

The company discloses that its Scope 1 and 2 emissions were 650,987 metric tons of CO2-e for the reporting year, with an emissions intensity of 10.28kg CO2-e/kg live weight produced. It is working with a third party to measure its Scope 3 emissions and plans to report them in the future.

The company states that the assessment considered all Scope 1 and 2 emissions produced via enteric fermentation during breeding and rearing, emissions from manure management and emissions derived from using fossil fuels and electricity. It does not include third-party transport emissions or emissions produced by external grain production. It does not disclose its GHG emissions from feed production.

The GHG data of the company is audited by an independent third party.

The company states that overall emissions have increased from the previous year due to increased headcount in its operations. It exhibits an increase in its intensity-based emission data. In the last reporting year, methane emissions from enteric fermentation were 424,151 tonnes of CO2‑e, whereas, in the current reporting year, it is 531,181 tonnes of CO2-e.

The company discloses that in FY22, as part of AACo's Task Force on Climate-related Financial Disclosures (TCFD) implementation, it undertook a high-level climate-related scenario analysis to understand the potential impacts of climate change on its business and to identify actions to address those impacts. It launched this climate risk analysis using two distinct scenarios, the transition risk scenario (3°) and the physical risk scenario (>3°).

The company discusses the physical risk posed by climate change and the potential disruption in the availability of feed inputs. It notes that increased physical risks like fires and floods may disrupt supply chains, incur extra expenses or delays, and hurt the production of input commodities like grain, which could lead to shortages of supplies and higher prices. To reduce this risk, it produces its feed for the feedlot. Additionally, by utilising a flexible and diverse supply chain that includes both small and large local vendors, such as Graincorp, it can stabilise the security of its feed inputs and reduce the likelihood of supply chain disruptions. The company discusses the high physical risk posed by climate change on the productivity and well-being of livestock. It leverages new tools and technologies to proactively improve data availability and utilisation across its operations to manage changing climatic conditions. It states that significant increases in global carbon prices are predicted, and it will be subject to these increased costs due to its on-farm emissions and possibly higher input costs. It has thoroughly analysed its carbon flows throughout the supply chain to reduce these risks. In addition, it is looking into various methane abatement options, including its most recent asparagopsis trial.

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

In its 2019 Sustainability Report, the company explicitly disclosed that it does not feed soy products to its cattle. However, no such information is available in the current year's reports.

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 responded to the CDP Forest Questionnaire in 2022.

The company has cattle farms in Australia, which is considered a country with areas of high-risk deforestation. It states that it did not clear any primary woodland or forest for grazing purposes in FY2022.

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 reference deforestation in its supplier code of conduct or in relation to its supplier selection process.

The company does not disclose how compliance in monitored or what actions are taken if non-compliance occurs. Further, the company does no disclose the level of traceability it has of its soy supply chain.

The company discloses targets to increase the ground cover of its pastures so that over 50% of pasture has persistent ground cover. This aims to improve soil health, but it is unclear if this initiative has been started as it is not discussed in the company's sustainability report.

The company is a leading Australian cattle producer and discloses purchasing inputs including feed products. The company invests in livestock traceability and utilises livestock management platforms in its pastoral and feedlot operations to track information such as livestock movements. However, the company does not provide an explicit discussion on how the project encourages deforestation-free production.

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

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

The company discloses that it has two feedlots and grows some feed for cattle while procuring the remainder. Its two feedlots are regulated by environmental licences issued by the Queensland Department of Agriculture and Fisheries (DAFF). Each feedlot is required to report to the National Pollution Inventory annually on water, air and soil quality. DAFF also conducts audits of compliance with licence requirements at regular intervals. The company reported no breaches of licence requirements in FY2022. In addition, it mentions continuing to explore new approaches to managing aquatic habitats and water efficiency across its operations.

The company owns two feedlots and two farms. It discloses that the Rangelands team uses a framework of land conditions to determine the long-term carrying capacity of each station. The company is undertaking trials of slow rotational grazing techniques which incorporate windows of rest, to improve pasture recovery and regrowth. It also encourages more durable ground cover levels and aims to enhance soil health. Further, it invests in soil rehabilitation programs to reduce surface water runoff and increase water infiltration and retention.

The company states that its pastoral operations are highly exposed to the impacts of drought. However, the company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It does not disclose information related to water scarcity risks in animal farming beyond discussing how underground water for livestock-intensive usage is regulated. The company has invested in fitting its boreholes with remote telemetry to monitor its water usage.

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

The company has implemented a manure management program to guarantee minimal waste through the reuse of byproducts. At its operations in Goonoo, the neighbouring farm uses manure as a fertiliser to reduce its reliance on synthetic fertilisers, thereby reducing input costs and improving soil health. Further, this reduces greenhouse gas emissions that would otherwise be generated upstream during the manufacture of synthetic fertiliser.

The company grows some of the crops used within its feedlots. It states that the use of its manure at its Goonoo operation has facilitated the measured release of nutrients into the soil.

The company states that manure is stockpiled on sites. As a result of its manure management program at Goonoo, the company states that it has improved soil fertility and structure as well as the water-holding capacity on farm land.

The company states that it assesses the carrying capacity of pastures to avoid degradation of landscape health. However, it is unclear if this includes an assessment of potential nutrient pollution.

The company discloses that it will establish a pilot circularity project at its Goonoo feedlot that builds on its current initiatives relating to water and manure use, as well as increased local sourcing of feed. However, it is unclear if it has been implemented in the current reporting period.

The company has established a policy delineating the responsible use of antibiotics in its operations, particularly focusing on therapeutic treatments based on veterinary guidance, and explicitly prohibits antibiotic prophylaxis in its herd. This policy, seemingly centric to its core business of cattle rearing and beef production, is bolstered by a comprehensive animal health management system encompassing robust biosecurity measures, staff training, and technological integrations for optimal nutrition and disease management. It commits to maintaining high welfare standards during transportation and adopting strategies to minimise routine mutilation.

The company does not disclose the quantity of antibiotics used.

The company supports the Five Freedoms and has implemented policies and training on animal welfare. It commits to disciplinary actions, including potential termination of employment, for breaches in its animal welfare policy. The company is also collaborating to develop an internationally recognised Animal Health and Welfare (AHW) certification standard for extensive beef production by 2024.

The company asserts that the majority of its cattle roam freely on open rangelands for 2 to 3 years. It abides by the Meat & Livestock Australia's (MLA) 'Welfare Standards for the Land Transport of Livestock' and 'Fit to Load' provisions. The company also ensures end-of-life procedures minimise pain and distress, verifying effective stunning before slaughter. However, it does not commit to avoiding routine mutilations and lacks specific disclosures on long-distance travel and maximum permitted transportation time.

The company commits in 2021 to develop an internationally recognised Animal Health and Welfare (AHW) certification for extensive beef production in northern rangelands by 2024.

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

The company asserts that the effective stunning of an animal before slaughter is confirmed through approved testing methods.

The company commits in writing to respect human rights and is working to mitigate the risks of modern slavery in its operations and supply chain.

The company discloses conducting risk assessments and ongoing due diligence to assess the modern slavery risk in its operations and supply chain during the reporting period. Furthermore, If the company identifies risks of modern slavery in its suppliers, it will work with them to help them mitigate risk or end its relationship with the supplier if they do not demonstrate a commitment to addressing modern slavery risks. However, no evidence was found of the company discussing how it monitors and reviews respect for human rights in its operations. The company lists several actions it takes to mitigate modern slavery risks, including governance, risk assessments, procurement measures, regular reviews of its existing policies, and grievance and reporting procedures. However, the company does not provide information about human rights risks other than modern slavery.

The company discloses its preventive measures to reduce the risk associated with modern slavery. However, the company does not provide evidence of remediation or preventative measures explicitly taken as a result of the due diligence or monitoring processes.

The company commits in writing to prohibit discrimination, harassment, forced labour, and child labour but does not state that it monitors compliance for policies in its direct operations through audits. In addition, as per the company's modern slavery policy, its suppliers must prohibit forced and child labour. However, whether the company or a third party conducts supplier audits covering these policies is unclear.

The company discloses a website, an email address, and a phone number for reporting grievances accessible to all stakeholders. Stakeholders have the option to make anonymous reports.

The company discloses its occupational health and safety management system and is committed to promoting a healthy and safe work environment for all team members and visitors. However, the company does not disclose any occupational health and safety certifications.

The company discloses a 36% reduction in lost time injury frequency in FY2023 compared to its previous reporting year, but no exact figures or rates for either year are reported. The company also discloses maintaining a zero fatality rate across the current and prior reporting periods. In addition, the company discloses that the turnover rate in 2023 was 48%. However, it does not disaggregate this by seniority level.

The company does not provide an introductory statement on the right to freedom of association or disclose the unionisation rate.

The company does not disclose the distribution of its workforce according to contract type, state the number of employees covered by collective bargaining agreements or provide a statement supporting its employees' right to bargain collectively.

The company states that food industry risk in its operations is managed through the HACCP accreditation and audits. It reports that it has several practices in place to manage food safety, and that process is described in detail in its previous year's sustainability report. The report states that third‚Äëparty providers carry out all processing and distribution of products. It works closely with these partners to maintain food safety standards, and each processor regularly provides the required licenses and accreditation. It states that it monitors its products for most of the supply chain. However, it does not disclose whether suppliers are expected or required to have GFSI certification.

It manages food industry risk through HACCP accreditation and audits. However, information on the frequency or number of audits is not disclosed. Further, it does not reveal the number of corrective actions for this reporting period. In its 2022 Sustainability Report, the company mentions focusing on building precision management systems to enhance supply chain traceability. However, no further details confirm whether the company is developing or implementing consumer-facing technology for food safety during the reporting period.

In its 2022 Sustainability Report, the company discloses it has a comprehensive critical incident management framework that allows for efficient identification, escalation, response, and recovery from events such as product recalls. Its critical incident management teams are annually trained and tested through scenario-based exercises. Its framework includes a specific product contamination/recall plan. However, no further details are provided. It discloses zero product recalls in the reporting period.

It discloses zero market bans in the reporting period.

The company discloses that its Audit and Risk Management Committee, comprised of board members, oversees sustainability-related risks and reporting matters. In addition, it carried out a materiality assessment in 2021 and, in 2023, mapped its material topics to the relevant issues in the GRI Sector Standard for Agriculture, Aquaculture, and Fishing. Some focus areas identified from the materiality assessment include renewable energy transition, air quality, water stewardship, plastics, packaging and waste, and community engagement. The company also discloses a board-level skills matrix, mentioning that four directors (out of 9) have sustainability-related expertise, and nine have innovation expertise. No director is said to have expertise in food safety.

There was no evidence that the company has set executive monetary remunerations linked with sustainability performance. The company is engaging with several companies and government initiatives in Australia to promote the reduction of methane emissions. However, engagement on other ESG risks does not be disclosed, and the company does not provide a list of trade associations or coalition memberships.

The company has established an innovation department dedicated to delivering innovation in climate, natural capital, animal health and welfare, and business diversification. However, the company does not discuss benchmarking itself against peers in sustainability and innovation.

The company acknowledges product sustainability and climate impacts as material business issues. The company mentions potential changes to consumer decision-making may include reduced meat consumption and substitution for plant‚Äëbased alternatives in some markets. The company also says that these transition risks could impact it and have the opportunity to introduce new products. However, no further information on alternative proteins is mentioned.

The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.