Healthy nature is vital for food production in Australia. From clean air and water to a liveable climate, our food system and nature are intrinsically linked.
But Australia’s food system is failing nature. Agriculture for food is one of the main drivers of nature destruction in Australia. It contributes to 19 ecosystems showing signs of collapse and our ranking as a global deforestation hotspot. It accounts for approximately three quarters of freshwater removed from natural systems and contributes up to 17% of Australia’s greenhouse gas emissions annually.
Put simply, the modern food system is a key contributor to the climate and nature crises. But it’s also a critical part of the solution. With a rapidly changing climate and growing global population to feed, it has never been more important to address the health of nature and the food system’s impact on nature — and reliance on it.
In an Australian first, ACF assessed how 20 of the largest and most influential food companies operating in Australia are managing their impacts on nature and supporting the changes needed to halt and reverse nature destruction.
The Future of Food benchmark assessed companies on 37 indicators of sustainable practice across four themes: Risk Assessment and Disclosure, Nature Targets, Strategy and Action, and Governance. It also examined each company’s commitment to transparent reporting against these criteria.
What did we uncover?
The average score across the industry was a sobering 17% across the 37 indicators assessed. Not one company received a pass mark above 50%. Clearly, most companies are at the very beginning of a long journey towards a nature positive value chain. Despite food companies’ high reliance on nature, this report finds they are failing to adequately address – let alone consider – nature risk in their agricultural value chains.
Future of Food benchmark key findings
- Most companies don’t know where their food is grown. This means they don’t know where their value chains impact on nature, which is concerning because it prevents them from putting in place systems and policies to protect nature. Just nine of the 20 companies assessed could evidence any traceability to farm level for any of their key ingredients.
- Commitments to halt and reverse nature damage are severely lacking. Despite many of the greatest impacts on nature occurring at an agricultural level, most companies are yet to make public, timebound commitments applicable to their value chains. For example, zero companies have set water use or water pollution targets applicable to farm level, and the five largest buyers of beef in Australia – including Coles, Woolworths, McDonald’s, Hungry Jack’s and Patties – have not set deforestation targets in alignment with international best practice, despite beef production being a major driver of deforestation in Australia.
- Companies haven’t assessed nature risks in their value chain. Zero companies could demonstrate that they’ve conducted a nature-specific risk assessment. This is an important foundational step because it allows companies to understand the biggest concerns to nature in their value chain such as water scarcity, deforestation, or chemical use. Without understanding these risks, companies can’t take action to mitigate them, like engaging with suppliers on alternative production methods.
- Companies aren’t sharing the responsibility with farmers. The transition to a sustainable food system requires money, time, and technical know-how. Food companies (who have the some of the highest profit margins in the food value chain) must share this responsibility with farmers through a partnership approach. However, less than half of companies (45%) evidenced investment in supplier capability building – such as training and grants – despite relying on sustainability outcomes from farms to meet their own sustainability goals.
- The public are being kept in the dark about food companies’ nature impacts. Transparent reporting on nature impacts and projects through websites, annual reports, and sustainability reports was extremely low, with an industry average of just 15% for transparency. This means investors, consumers, and civil society are unable to assess the veracity of companies’ sustainability claims or make informed purchasing choices.
Where to from here?
Despite these sobering findings, this report does reveal emerging seeds of change in the food sector. By building on this work and committing to ambitious action, food companies can transition to a nature positive future and a food industry that’s good for people and the planet.
The Future of Food is an urgent call to action to food businesses operating in Australia to step up to the plate. Immediate action is required to future proof our food system to ensure a healthy, thriving agricultural industry working in unison with nature. Join ACF in calling on companies to do better by sending a pre-written email to food companies.
You can see the results for all 20 companies assessed and read the full Future of Food report here.
