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AUSTRALIAN SHEEP SUSTAINABILITY FRAMEWORK APRIL 2021 Contents 1. Message from the Chair 2 12. Performance indicators and metrics 16 2. Framework snapshot 3 13. Alignment with global goals 20 3. The Australian sheep industry 4 14. Governance 21 4. Why is a Sustainability Framework needed? 6 15. Material topics 22 5. About the Framework 7 16. Stakeholder engagement 23 6. Vision 8 Appendix A: Material topics and scopes 25 7. Definition 8 Appendix B: Sustainability priorities and material topics 26 8. Principles 9 Appendix C: Participating stakeholders 27 9. Framework scope, boundary, life 10 Appendix D: Baseline data 28 10. Framework themes 11 Notes 37 11. Focus areas and priorities 12 List of acronyms 37 List of tables Table 1. Focus areas and priorities 12 Table 2. Performance indicators and metrics 16 Table A1. Sheep industry material topics and scopes 25 Table A2. Sheep industry sustainability priorities and material topics 26 Table A3. Stakeholders 27 Table A4. Indicators, metrics and data 28 List of figures Figure 1. The sheep meat and wool value chain 10 Figure 2. Framework themes 11 Figure 3. Alignment of Sheep Sustainability Framework to the United Nations Sustainable Development Goals 20 Figure 4. Governance structure for the Sheep Sustainability Framework 21 Figure 5. 2021 materiality matrix for the Australian sheep industry 22 1 1. Message from the Chair The Australian sheep meat and wool industry, led by Sheep Producers Australia and WoolProducers Australia, is proud to deliver this Sheep Sustainability Framework. The role of the Framework is to monitor, measure I would also like to thank all stakeholders and report industry performance against who have given their advice and perspectives. sustainability priorities. The Framework will Their contribution has been fundamental assist our industry to better understand its to the Framework’s development and their opportunities, challenges and impacts. It will also continued involvement is essential as enable us to demonstrate sustainable practices, implementation begins. and identify areas for improvement. This will be a living document, subject to review Importantly, it will support better communication and refinement so that it remains relevant and with stakeholders, improving transparency meets the expectations of all stakeholders. and providing evidence to our customers that I look forward to this ongoing commitment the food and fibre they purchase has been to transparency, continual improvement, and produced responsibly. engagement to ensure the Australian sheep The Framework was developed by an industry industry remains a strong and important industry Steering Group in close consultation with our both for its participants and its customers. stakeholders, including both those directly involved in the industry and those with a strong interest in it. I sincerely thank the Steering Group for their Professor Bruce Allworth efforts to date, together with the expert working Chair, Sheep Sustainability Steering Group groups who provided guidance on how best to measure our sustainability performance, and the Sheep Sustainability Board that has overseen the Framework’s development. SHEEP SUSTAINABILITY STEERING GROUP ― Prof Bruce Allworth (Chair), Director, Fred ― Johnny Gardner Producer, Cavendish, VIC Morley Centre, Charles Sturt University, NSW ― Deanna Lush Producer, Murray ― Will Barton CEO, Gundagai Meat Processors, Plains, SA and Managing Director, NSW AgCommunicators, SA ― Dr Will Bignell Producer, Thorpe Farm, TAS ― Emily Stretch Producer, Kojonup, WA ― Andrew Blanch Managing Director, ― Dr Paul Swan Australian Wool Exchange New England Wool, NSW ― Mark Wootton Producer, Jigsaw Farms, VIC ― Michael Field Producer, Jugiong, NSW 2 AUSTRALIAN SHEEP SUSTAINABILITY FRAMEWORK 2. Framework snapshot Vision Definition Principles Our vision for a sustainable sheep For the purposes of this Framework, 1. Transparency meat and wool industry is: sustainable sheep meat and wool 2. Accountability Sustainably producing the world’s production is defined as: best sheep meat and wool, now and Producing sheep meat and wool by 3. Inclusivity into the future. current and future generations in an 4. Credibility ethical and environmentally, socially, 5. Practicality and financially responsible manner. 6. Relevance Theme Focus area Priority Caring for our sheep 1 Animal care and 1.1 Reduce, refine and replace painful husbandry practices handling 1.2 Implement best practice sheep management 1.3 Ensure humane processing and on-farm euthanasia 2 Animal health 2.1 Prevent and manage disease Enhancing the environment and climate 3 Environment 3.1 Improve natural resource management 3.2 Responsible environmental practices 3.3 Encourage biodiversity 4 Climate change 4.1 Reduce net greenhouse gas emissions 4.2 Adapt to a changing climate, including extreme weather events Looking after our people, our customers and the community 5 Health and safety 5.1 Improve industry safety culture 5.2 Improve our people’s health 6 Capacity building 6.1 Support and grow workforce 6.2 Encourage workforce diversity 7 Contribution to 7.1 Enhance community trust community 7.2 Deliver products that customers demand Ensuring a financially resilient industry 8 Profitability, 8.1 Maintain or increase industry profitability productivity and 8.2 Maintain or increase contribution to the Australian economy investment 8.3 Increase productivity 8.4 Encourage innovation 9 Market access 9.1 Ensure positive market positioning and access 9.2 Guarantee product integrity and safety FRAMEWORK SNAPSHOT 3 3. The Australian sheep industry Australia is a major producer and exporter of sheep products. We are the largest exporter of sheep meat and premium quality fine wool, the second largest producer of lamb and mutton, and the largest producer of all wools by value and volume.1,2 Our diverse landscape Integrity and quality systems Australia’s sheep industry is an extensive pasture-based industry, The sheep industry takes quality standards seriously — from with an average flock size of 2,000 sheep. Sheep are produced in establishing and anticipating customer specifications, to a wide range of climates—from the arid and semi-arid parts of the demonstration and reporting of specific measures. Our the inland region, to the medium to high rainfall areas of New sophisticated traceability systems guarantee the integrity of South Wales, Victoria, South Australia, Tasmania, Queensland Australia’s sheep meat and wool products to our customers. and southern Western Australia. Sheep are grazed on pastures The National Livestock Identification System (NLIS) provides year-round, with supplementary feeding occurring when there are identification and lifetime traceability of sheep. pasture shortages. The national Livestock Production Assurance (LPA) is an on-farm Commitment to our industry assurance program covering food safety, animal welfare, traceability and biosecurity. It provides evidence of livestock history and on- The nature of Australia’s unique landscape brings numerous farm practices when transferring animals through the value chain. challenges to farming. These have led to innovative methods of This integrity system protects the disease-free status of Australian production. Investment in research, development and innovation sheep and underpins the reputation of our products as clean, safe through the levy scheme also ensures that our farming practices and natural. remain competitive. The Australian National Wool Declaration (NWD) and Classers’ The sheep industry has two Research and Development Specifications are the standardised mechanisms by which Corporations (RDCs) — Australian Wool Innovation (AWI) and woolgrowers declare specific on-farm practices, wool quality and Meat & Livestock Australia (MLA). Both RDCs invest producer levies traceability. They assist Australia’s wool clip to meet evolving and matched funds from the Australian Government in research, customer requirements. Australian wool is bought and sold with an development, information and marketing. International Wool Textile Organisation (IWTO) test certificate that characterises all critical features of each bale of wool. Sustainable sheep production Increasingly, Australian wool producers have become involved Sheep producers work to preserve, protect and improve the natural in various sustainability certification schemes that provide more resources and biodiversity on their farms and manage an estimated in-depth information regarding on-farm activities and attributes 65.8 million hectares of land. Sheep play an integral role in the which are increasingly required by our customers. ability of Australian farmers to sustainably manage the land. When The Australian Animal Welfare Standards and Guidelines for Sheep apply managed well, sheep can regenerate the land on which they graze to all those responsible for the care and management of sheep. by: controlling and managing weed infestation, initiating the They are based on current scientific knowledge, recommended regeneration of pastures, and encouraging an increase in soil biota industry practice, and community expectations. diversity. By protecting, supporting and encouraging biodiversity in the soil, vegetation, insect life and fauna, sheep producers are ensuring that the farm ecosystem can thrive. Wool is a natural, renewable and a biodegradable fibre that grows constantly. Wool producing sheep are shorn at least once a year, and sheep are often retained by the same producer over their lifetime, maintaining genetics