Woolworths Group’s 2024 Sustainability Report showed that the company is aiming to make real change in its supply chain, strengthening its targets to phase out the use of deforestation linked commodities in its own brand products.
This update comes after the Australian Conservation Foundation (ACF) released its Future of Food benchmark report in July, showing almost none of Australia’s top 20 food businesses have begun to assess nature-related impacts, dependencies, and risks in their value chains.
The benchmark assessed companies on 37 sustainable practice indicators across four themes – Risk Assessment and Disclosure, Nature Targets, Strategy and Action, and Governance – with none receiving a passing mark.
One of the major concerns of the report was that the majority of companies didn't have traceability of produce back to the farm level for the majority of their commodities, a foundational step in mitigating damage to production environments.
Woolworths is taking responsibility for its contributions to deforestation, particularly in the cattle industry. The company identified its primary deforestation-linked commodities are paper pulp and timber, palm oil, cocoa, soy (in stockfeed) and fresh beef.
The ACF revealed it had identified 50 examples of deforestation occurring in the last four years on properties linked to the cattle industry, using satellite data and ground-truthing. The biggest sellers of beef are the supermarkets, Woolworths, Coles, and Aldi.
With Woolworths’ new sustainability goal, it is only Coles that has not established a target to eliminate deforestation from its supply chains by the end of 2025.
Woolworths target updates
The company’s 2024 sustainability report stated: “To date, our efforts have centred on achieving net zero deforestation in our own brand products by 2025. This has involved setting clear expectations and driving progress towards this target.”
“This year, we further strengthened our approach by updating our deforestation target to align with SBTi FLAG Guidance for no-deforestation, including our vendor brands.”
The Science-based Targets Initiative (SBTi), one of the world’s most influential corporate target-setting standards, requires all food and agriculture companies to commit to zero deforestation by 2025 to retain a valid SBTi net zero target.
Woolworths target update moves the company from a net zero deforestation goal to a no-deforestation goal by the end of 2025, a move that accounts for the SBTi guidance and aligns with Aldi’s target.
ACF’s nature and business lead, Nathaniel Pelle, said that no company sells more beef to Australians than Woolworths, so this commitment has enormous implications for nature and for people who want to make sustainable food choices.
“Australia is an international deforestation hotspot, but that problem is being driven by a small number of operators,” said Pelle.
“While most graziers are not engaged in broadscale bulldozing of bushland, Australians can’t choose deforestation-free beef because supermarkets don’t differentiate.
“With this commitment, which follows a similar commitment from Aldi, that is changing. Australian consumers will soon be able to buy beef knowing they are supporting farmers who protect forests and woodland on their properties,” he said.
Woolworths states in the report that the company doesn’t underestimate the scale of the transition required to achieve the 2025 no-deforestation ambition, and understands success will depend on many small actions beyond direct business operations.
“We are sensitive to the issue around evolving definitions of deforestation and the need to apply these definitions in the appropriate context for our supply chain, industry and geography,” it states.
“In recognising SBTi’s guidance to support a just transition, we will take care not to exacerbate underlying inequities, particularly for our smaller suppliers. We will actively engage with farmers, suppliers, industry and other key stakeholders to support progress together.”
The ACF emphasises that the country’s food systems rely on the health of the natural world. Not acting to end deforestation has consequences for farmers, shareholders, nature and ultimately our food security.
“It is disappointing Coles is dragging the chain on this and will continue to turn a blind eye to nature destruction linked to its supply chains,” said Pelle.
“A completely deforestation-free Australian beef industry is entirely possible, but it requires all the big players to take action.”
Aldi’s commitment goes further than Woolworths by ruling out the destruction of all ecosystems including native bushland (‘conversion free’), not just forests.
