CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2016
CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2016
CONTENTS
About This Report 02
The CEO’s Message 04
Our Story 07
Our Stakeholders 08
Governance and Leadership 10
People Practices and Wellbeing 14
Workplace Health and Safety 18
Community Enrichment and Economic Development 20
Environmental Protection and Sustainability 22
Animal Welfare Practices 28
Food Safety and Quality Practices 31
Responsible Sourcing and Consumption 32
Appendix 34
1 CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2016
ABOUT THIS REPORT
This is our second annual sustainability report. It covers the period from 1 July 2015 to 30 June 2016. The report has been prepared in accordance with the core requirements of the Global Reporting Initiative GRI G4 reporting framework. It accompanies our sustainability performance 2016 and content index, available online at www.teysaust.com.au.
Data in this report covers Teys Australia’s operations, including our corporate office, processing plants, feedlots, hide processing, value add and distribution facilities in Australia. Financial figures are expressed in Australian dollars unless otherwise specified.
We’d love to hear your feedback on the report. Feel free to send comments and questions to our team at [email protected].
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CEO’S MESSAGE
I am pleased to present Teys Australia’s downward correction in U.S cattle reduction program. This focus has led 2016 Corporate Responsibility and prices. The result being: to the completion of a 100% recyclable Sustainability Report. - A deterioration in the price water closed loop system at our Murgon competitiveness of Australia beef hide facility and represents best in class Despite unprecedented market volatility on the international market. for this type of business. The completion and difficult trading conditions, Teys of the ‘biogas to boiler reuse’ project - Sliding per capita beef Australia continues to invest heavily in at Wagga, now means that four of our consumption from more sustainable business practices. As a six processing plants operate using competitively priced pork and result, we continue to make progress in renewable energy in the form of biogas, poultry, and; our four major sustainability focus areas: reducing our need for non-renewable - Reducing our environmental impact - The threat from South American energy supplies. as measured by water and energy competitors as market access use, and greenhouse gas emissions. barriers are removed, particularly We remain committed to achieving in North America and China. zero work place related injuries and - The health, safety and wellbeing have focused on risk management in of our workforce, measured by a Teys had anticipated these challenges managing potential hazards in our number of global standard safety and reconfigured production shifts to facilities. This year, we also rolled out metrics and company specific ensure alignment with supply constraints. the ‘golden rules’, a set of conditions engagement surveys. Our focus on long term strategic intended to ensure that our employees - Best practice animal welfare partnerships and a vertically integrated return home the way they arrived to processes as measured by results business model has us well positioned work. In Tamworth, we opened our from internal and external audits despite the strong trading headwinds. new Fitness and Conditioning Centre. against recognised global best The centre which serves as a hub for We continue to aggressively manage practice standards. physiotherapists, is designed to assist operating expenses through utility employees in their ongoing health needs - Leveraging CSR as a key driver efficiency, investing in innovative and return to work programs. of employee engagement and automation technology and creating performance in our culture. more productive and flexible employee We continue to make good progress in A number of factors have contributed relations arrangements. In addition, employee engagement programs. This to the difficult trading environment our asset footprint along the eastern resulted in new EBA’s for our Beenleigh, experienced in 2016. coast of Australia will be important Biloela, Tamworth and Wagga in providing a strong foundation for processing facilities after receiving strong - Tight supply continues to dominate future growth. Significant structural support from our employees. We have the supply-demand complex. change is required if we are to remain also realised significant improvements Following a rapid liquidation competitive on a global stage. Although in our employee engagement scores, of the Australian cattle heard in this year has seen difficult trading increasing our index score by 6% to 2014/2015, the industry has now conditions, the business has continued 61% for the Teys group. Our goal for entered a rebuilding phase following to be resilient and focus on driving FY2017 will be to exceed the national much needed drought breaking rains. efficiencies and maintaining our deep norm of 66%. This has resulted in a shortage of stakeholder relationships. supply for processing and record high We continue to invest and make Australian cattle prices. Australia’s We have maintained our focus on progress in the CSR and sustainability tight cattle supply and record high improving utilities efficiency across all space because it’s not only the right prices have coincided with rising U.S aspects of our operations. This continues thing to do but also makes good beef production and a significant to be driven from our internal utilities business sense.
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Finally, I would like to acknowledge our dedicated people, whom have remained resilient as they adapt to a workforce restructure and continued to focus on improvement in all aspects of our business. I thank them for their support and passion during this period of renewal.
Brad Teys Chief Executive Officer
Brad Teys, Chief Executive Officer, Teys Australia
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OUR STORY
Teys Australia Pty Ltd is a leading red and efficient beef processing plants meat processor in Australia, established at Rockhampton, Biloela, Beenleigh, in 2011 and is a 50/50 partnership Naracoorte, Tamworth, and Wagga between the Teys Family and Cargill. Wagga. Our beef processing plants Teys Australia is a private company with produce frozen and chilled beef and by operations in Queensland, New South products of beef. We also operate three Wales, South Australia and Victoria. cattle feedlots located at Condamine, Charlton and Jindalee with a combined Our purpose is “Feeding People, total capacity of 70,000 head of cattle. Enriching Lives”. This is via our In addition, we also process cattle hides commitment to: at Murgon, have a distribution facility - Our employees and their families. in Brisbane, specialise in value added - The success and sustainability of products at our Teys Australia Food Australian cattle producers. Solutions (TAFS) facilities at Wagga - The communities in which we operate. Wagga in New South Wales, and at Hemmant in Queensland. - The quality of innovative products and services we deliver. We offer a strong portfolio of consumer brands that are supported by, global Our business has been built on a consumer mega trends and Australia’s strong foundation of integrity, honesty, unique position as a clean, green and loyalty, leadership, and humility and sustainable producer of superior beef. commitment to reliably managing our Teys Australia’s branded beef programs: business as we sustainably deliver Grasslands; Riverine; and Certified stakeholder value. Premium Black Angus, are underpinned We export beef to over 40 different by the Meat Standards Australia (MSA) countries and employ more than 4,200 beef grading program. full time employees across 13 locations that are predominantly in rural and regional areas of eastern Australia.
Our business operates six modern
ROC A PTON BILOELA
UR ON CON A INE BEENLEI E ANT
TA ORT
TEYS AUSTRALIA C ARLTON ASSET FOOTPRINT IN ALEE A A A A FEEDLOTS NARACOOTE PROCESSING PLANTS VALUE ADD HIDE PROCESSING
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OUR STAKEHOLDERS We identify our stakeholders as those individuals or groups which have an interest; financially or otherwise, in the activities of Teys Australia. An extensive summary of our stakeholders is provided below.
FREQUENCY OF CONCERNS HOW WE RESPOND TO STAKEHOLDER GROUP INTERESTS ENGAGEMENT METHODS ENGAGEMENT RAISED CONCERNS RAISED Customers
Small and large, domestic and Typically focused on High - Satisfaction Surveys - Quality Consistency - Collaborative projects international businesses. product quality, supply - Study Tours - Price - Customer auditing reliability. Long term relationships are important - Market Visits - DIFOT - Internal Auditing to our collaborative - Educational Workshops - Relationship Building - Sharing updates customers. - Product Development - Supply security - Sharing information - Periodic communication - Community/public for shared aspects (collaborative customers) perception of Teys
Employees Our diverse workforce Matters concerning High - Teys Australia Intranet - Career development - Joint Consultative Committee comprises 4,266 employees workplace health - Teys Australia Social media pages - Safe working meetings and contractors located in four and safety, career conditions - Noticeboards states of Australia development and culture - Meetings - Satisfaction Surveys - Equal Opportunity - Email - Workplace Improvement & - Pay, conditions and/ - Direct engagement Innovation Committee or profit share - Committees - Business sustainability Shareholders A diverse group with significant The creation of long High - Board meetings - Legal compliance - Board audit Committee representation in Australia term shareholder value - Board reporting - Ethical business - Risk management and America through a combination performance of consistent financial - Site visits - Internal Audit return and high quality - Communication via the chairman - Strategic governance - Corporate Governance and long term issues governance. and CEO - Compliance Industry Associations Includes political/lobbying Look at services that High We engage with this group through - Manufacturing - Input into submissions associations as well as levy improve the sustainability on going representation with specific operating conditions - Attendance of events associations at the state and and efficiency of the employees and engagement during in Australia - Provision of industry and national level. sector. Representing the specific projects with industry associations - Regulatory framework sector to government. such as the Australian Food and company information Grocery Council and Australian Meat - Level playing - Collaborative working Processors Corporation. field against other arrangement industry sectors Professional Memberships Working within multi Key issues that impact Medium - Participation in working groups - Relevance to - Attend events stakeholder and multi industry sustainable food and - General Meetings stakeholder changing - Support with membership dues groups to share best practice beverage production in interests on sustainability topics Australia. - Input to joint working streams - Provide information/input - Participate in subject matter work streams Cattle Producers A diverse group spread across Cattle genetics, Animal High - Teys MLA field days - Grading system Concerns are raised through QLD, NSW, SA and VIC. Welfare, feedback on - Saleyards meat colour livestock managers & then livestock performance, - Price Geoff Teys (as required) if there equitable returns for - Direct engagement via Teys is any doubt that it could be our livestock, industry cattle buyers - Bruising and issues fault we amend it to their favour. sustainability associated with livestock transport - Transparency of pricing Suppliers
Includes businesses local to our Provision of goods and High - Local business support and consultation - Long term partnerships - Develop and implementation operations and large national services and engagement - Competitive procurement - Securing business of equitable and transparent and international suppliers. through commercial procurement procedures - Tendering for individual work items - Understanding Teys’ contracting arrangements. - Contract management - Contracting business needs - Continuous improvement - As a partner in charitable through supplier feedback and exercises/fund raising internal audit
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FREQUENCY OF CONCERNS HOW WE RESPOND TO STAKEHOLDER GROUP INTERESTS ENGAGEMENT METHODS ENGAGEMENT RAISED CONCERNS RAISED Government and Regulators Includes governments - Teys operating in Medium - Direct meetings - Regulatory compliance - On an as required basis and regulators at a local, compliance with the law - Through department contact - Economic growth and - Through periodic mandatory state, national and - Teys contribution to - Via state and federal MP’s operating conditions reporting international levels. various government - Routine and ongoing communication for - Via voluntary updates, jurisdictions (taxation, meetings and information events industrial relations, technical and day to day issues environmental performance etc) Local Communities A diverse group whom are - Living free from impacts Medium - Letterbox drops Impacts to the local - Direct engagement identified as those surrounding associated with Teys’ - Community engagement evenings environment and the - Via mail outs our locations of operation. operations and events economic impact of our presence in - During site visits - Community support by - Community support initiatives (as/when held) the business the community.
Non-Government Organisations (NGOs) Includes environmental, Specific to their interest Medium - Via industry bodies or government - Industry performance - Via industry bodies or animal welfare and social area. - Respond to issues as they arise against NGO views government organisations at a local, state in the media - Issues with food - Respond to queries/ issues as and national level. - Supporting/recognising the industry’s production systems as they arise in the media contribution to society they relate to various - Supporting/recognising the subject matters industry’s contribution to society Unions Labour Unions are represented Employment related Low We engage in direct communication - Enterprise Bargaining Formally when required at many of our operations and matters concerning with unions as required. Prospective Agreement Disputes by law, and/or via a third represent a significant portion their members at employees are made aware of - Employment party representative (for of our workforce. They include: Teys Australia sites employment arrangements prior to joining related concerns example, Lawyers). Australasian Meat Industry Teys Australia. Our goal is to always resolve Workers Union (AMIEU), At Teys, we fully support all employees’ the issues or concerns of our Australian Manufacturers right under freedom of association to hold workforce at the lowest possible Workers Union (AMWU) whatever membership they decide. level. To do this we support & Australian Workers It is the employee’s relationship with their numerous committees: Union (AWU). union. Teys respects such membership Safety While all employees have but is under no obligation to maintain - Workplace Improvement the right to membership, 'relationships' with unions or other and Innovation it is unknown to Teys, membership bodies. Cultural Committees; and who participates in such Instead Teys chooses to focus its memberships and it is irrelevant. attention on engaging directly with our - Annual engagement surveys We estimate that while the employees through open dialogue and These practices allow us to unions have members at 2 way communication, building strong understand the pulse of the each of our sites, membership relationships and trust. business, respond quickly to remains low at around 15-20% concerns and reduce conflict. which is only slightly above Teys takes a respectful and lawful Australian norms. approach where it must communicate with all third parties. Media Includes representatives - Newsworthy stories Medium - Media Releases - NGO stories - On a case by case basis from print, online and - Publicising local stories - Media conferences - Controversial or - Sometime via direct media broadcast media. and events - Briefings topical issues engagement/media releases Registered Training Organisations (RTO) An RTO is an organisation The RTO in each state Medium - Employee training - Ability to access - Frequent meetings accredited by the Australian assists with delivering and people during on the job Skills Quality Authority (ASQA) assessing the Cert 2 & 3 reviews which is the national regulator of Meat - Government legislation for Australia's vocational education and training sector.
Employment Agencies (JSA's) We regularly seek assistance Indigenous Groups, Low (as required) Direct engagement, email or telephone. Sourcing and selection Partnering with JSA's to improve from employment agencies local recruitment of new recruits their understanding and labour to employee people in needs of our business. our business.
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GOVERNANCE AND LEADERSHIP Our Approach Corporate Policies and to mitigate the identified risks. Senior It is our belief that good corporate Business Principles management report progress on the governance underpins strong Whistleblower Policy development and implementation of organisational performance. Through Since the implementation of our these treatments quarterly. our commitment to ethical business whistle blower policy in FY2015, Risk Training practices in all of our dealings, we the business has reported ZERO Our risk management e-learning believe we can maintain our position reports of unacceptable and or module was finalised in December as an industry leader. illegal behavior. We engage an 2015, and rolled out to senior independent service provider which staff in February 2016. Training provides an open and confidential Governance Structure with the e-learning module on process whereby any alleged illegal Our governance structure remains salaried staff commenced on 15 or unethical behavior or activity as previously reported. The Teys and 16 November 2016 and will can be reported without the fear of Australia board approves Teys be finalized by February 2017. All reprisal or intimidation. Australia’s business strategy. salaried staff will then undergo risk The Chief Executive Officer Teys Risk Management Cycle training twice a year to ensure risk (CEO), manages the day to day The Teys Risk Management Cycle management is an integral process in administration of the group’s is managed over an 18 month our governance framework. operations while the Board period and we reviewed our Audit Committee (BAC) remains 2014 Cycle in February 2016. Transparency and focused on management of the This review was conducted with Accountability risk framework, internal auditing, our Senior Leadership Team and External Independent Internal Audit financial risk management and General Managers and included In 2015, through a tender process, internal controls. consideration of our risk profile as we engaged an independent The CEO, continues to be supported well as our strategic and operational internal auditor who conducted by the Senior Leadership Team (SLT) risk registers. As a result the Teys an assurance mapping exercise in managing the performance of Australia Risk Profile together with the across the organisation to ascertain the organisation and to be at the Teys Australia Strategic Risk Register areas of improvement and to forefront of matters that are strategic and the Teys Australia Operational inform senior management of the and long term in nature, or have the Risk Register have been updated areas of corporate risk. During potential to significantly affect the to reflect the current strategic and this process we developed a three group’s performance. A membership operational risks facing our business year internal audit strategy. During of the SLT is available at: in 2016. These registers also include the 2015/2016 financial year six http://www.teysaust.com.au/ the treatments and/or opportunities internal audits were conducted by about/slt-chart/. to be developed and implemented our independent internal auditor
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Since the implementation of our whistle blower policy in FY2015, the across all levels of the business, from the board of directors to our external business has auditors, customers, and supplier relationships. The recommendations reported ZERO and subsequent management reports actions from these audits ensure our processes are monitored and continually improved.
Recommendations included the implementation of a better practice corporate governance policy framework which comprised of for example, the Teys procurement suite of policies and procedures, a project delivery framework, contract management policy framework and an enterprise risk management framework. Completed actions from these recommendations have improved Teys corporate governance controls and ensure staff are informed and kept up to date on the development and implementation of corporate policies and procedures.
Corporate Governance Policy Framework We have improved our Corporate Governance Policy Framework with the introduction of new policies, for example, we have developed policies and procedures for:
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- procurement; Anti-competitive - Meat and Livestock - capital expenditure; Behaviour Australia (MLA) - contract management; Competition and Consumer Law - National Meat Industry Training training is conducted with our Advisory Council (MINTRAC) - tendering; Livestock and Marketing and Sales - risk management; staff twice per year. This ensures that During FY2016, Teys Australia - privacy; and our staff have a good understanding participated in a number of economic, environmental and - Fraud. of their, and the company’s obligations in relation to Competition social charters, principles and The internal audit process ensures and Consumer Law; comply with the initiatives, including: that we continually update our legislation; and know where to seek - CCIQ Ecobiz policies and procedures to information should they require it. Program (Queensland) accommodate the needs of our - Corporate Social Responsibility business and provide transparency Partnerships, (CSR) Reporting through SEDEX and accountability. Alliances, Platforms (not for profit membership Teys Australia contributes to policy organisation dedicated to driving Legal development in the red meat improvements in ethical and We continually update our business industry through direct submissions responsible business practices in standard terms and conditions and dialogue with government global supply chains) to ensure equitable business departments and industry groups. - Global Reporting Initiative (GRI) transactions are supported. Our Our ability to inform and influence G4 guidelines contract templates are continually policy and decision-makers is - National Greenhouse Energy reviewed to ensure our contractual facilitated by our membership of Reporting Scheme (NGERS) relationships as well as the a diverse group of peak industry - National Pollutant Inventory (NPI) management of our contracts remain bodies, including: - Sustainability Advantage Program consistent and current. - Australian Food and Grocery (New South Wales) Council (AFGC) - We maintain an Workplace - Australian Meat Processors Health and Safety Management Corporation (AMPC)
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System (WHSMS) in accordance OUR SUPPLY CHAIN with the performance standards for self-insurers in SA & QLD and AS/NZL4801 01 - Agrifood Skills Australia
Our Supply Chain Procurement of Cattle and Materials Teys Australia sources more than 90% of cattle for beef processing and lot feeding directly from cattle 02 producers, with the remainder being purchased through the sale yard system. This ensures cattle are eligible for our premium brands and markets.
Processing and Packaging This involves the receival of cattle; 03 to produce and package beef, and associated products, at six of our beef processing facilities. TAFS produces cooked deli meats and centre of plate protein meal solutions for the retail sector. Further processing of hides takes place at Murgon (QLD).
Logistics and Distribution Our products are shipped nationally and internationally to over 40 countries.
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PEOPLE PRACTICES AND WELLBEING
Our Approach During the last five years, Teys has placed Diversity and Inclusion Attracting, retaining, and developing a high value on strategies and programs Teys is committed to encouraging talented and motivated people who to drive attraction and retention and we diversity in our business. We pride share our values is critical to our long remain committed to reducing the high ourselves on having numerous term people strategy and our sustainable turnover generally associated with the active cultural groups at most sites employment goals. Our employees red meat processing sector. However, and encourage both work and have every opportunity to develop an unfortunate byproduct of the existing community engagement. both personally and professionally with external market stressors resulted in Teys Australia through lifelong learning us missing our turnover target of 28%. To support this, we hold regular meetings initiatives. Teys Australia proactively Our turnover result was 42%, up from with all of our employee groups, participates in internal and external 32% in the previous period. It should be organise consultation for change and social accountability audits as part noted, that the increase in large part to our communications plans always of our commitment to our employees Teys’ decision to reduce operating shifts ensure translation strategies as well as and communities. mentioned above. accommodate various literacy needs. Our People We also continued to focus on reducing We are pleased and proud to report, absenteeism, successfully beating our that during FY2016, our workforce was Our workforce in FY2016 was made up absenteeism target by 5%. made up of 45 different nationalities. of 4,266 employees across 13 locations The top seven contributing nationalities in Australia. In comparison to last year, The recruitment practices of candidates made up 86% of the workforce. These our workforce has reduced by 13% for Teys remained the same in FY2016 consist of: from 4,889 employees. The reduction is with recruitment being managed attributed to the cyclical downturn being locally as required by each location; EMPLOYEE BREAKDOWN BY ETHNICITY experienced in the processing sector and the recruitment at our processing across Australia. With good labour plants being undertaken by Regional AUSTRALIA 50.00 planning, we have been able to utilise Workforce Management (RWM). In PHILIPPINES 10.00 natural attrition for most ‘right sizing FY2016, we had 654 employees, VIETNAM 8.00 activities’ and minimised terminations employed through the RWM program BRAZIL 6.00 up from 492 in FY2015 making up 15% while we experience a downshift in CHINA 4.00 production days and shifts. of our workforce. RWM employees, through career development and a NEW ZEALAND 5.00 regular performance reviews, have SRI LANKA 5.00 an opportunity to transition to the OTHER (MADE UP OF 38) 14.00 Teys business as a Teys employee as approved by their site general manager. Of the 46 nationalities representing Teys Notwithstanding the additional Australia, 50% of the workforce is made candidates employed, overall this was a up of Australian employees, with primary EMPLOYEE TURNOVER BY AGE reduction of 5% against manning budget & secondary visa holders making up given the external market changes. approximately 22% of our workforce. As our business needed to respond % The balance of employees hold work 29.54% 57.62% 12.84 to ‘right sizing’ our employee pool rights with permanent residency or to accommodate the market shift for other means. 0-29 30-50 51-99 processing, so did our recruitment drive. Our sites continue to promote and support cross cultural events in local communities to assist our diverse workforce in fitting into the communities we operate.
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Our workforce in FY2016 was made up of 4,266 employees across 13 locations in Australia.
Gender participation has remained steady with a 2% increase in female participation rates during FY2016. However, this is not an indicator of anything other than our overall attrition and a higher maternity leave uptake during this same period. As was reported last year, the industry continues to be male dominated given the intensive manual processes involved in meat processing and limited automation.
EMPLOYEE BREAKDOWN BY GENDER GY 2016
21. 75 % 78.25%
FEMALE MALE
EMPLOYEE BREAKDOWN BY AGE
50% 44% 6%
0-29 30-50 51-99
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Case Study: Support Diversity in our Business In FY2016, our support of our international workforce has continued. In Rockhampton, this support continues to be strong as we donated over $5,000 towards multicultural events and festivals. These events included: - The Buddhist Cultural Program - The Diwali Milan & Bollywood Bonanza 2015 Event - CQ’s Filipino Association - Sports Festival - The Taste of the World Festival - Sri Lankan Community Events
This support helps to ensure that our 17 nationalities can thrive both at work and in the local community.
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Teys Enterprise Bargaining keep us in business), continual career employees of the company. In total Agreements and professional development graduates have been offered In 2014 & 2015, Teys experienced training, management and positions for 2016 at both the significant industrial challenges. leadership training and other feedlots and in operations across Enterprise Bargaining Agreements task specific courses. We support the group. (EBA’s) were approved and our employees participating in The program includes but is not challenged in the Fair Work professional development training to limited to; Commission resulting in litigation, improve their skills from compliance resource drains and disengaged learning through to leadership. - Personal development employees. We are pleased to Examples include: - Real work employment report during the second half - Certificate II and III across - ‘On the job’ training of FY2016, that two new EBA’s various meat processing - Network building, Coaching were voted up by employees functions, HACCP, Electrical, and Mentoring and successfully ratified by the auditing, mechanical trades and commission at Beenleigh and laboratory skills. - External Courses – Animal Biloela. We expect that in 2017, Welfare, HACCP and - Diplomas of Meat Processing Internal auditing we will see all six processing plants majoring in food safety, animal with new EBA’s which will have been welfare, environmental, HR - Ausmeat and Meat successfully negotiated with the and Safety Standards Australia workforce. - Advanced Diplomas - Strategic Projects in Leadership. - Work assignments Employee Engagement - University studies and internal Our employee survey for FY2016 and external leadership programs Employee Well-being saw our employee engagement through company sponsorship In 2015 Teys deployed the iWork@ index score increase by 6% to and education agreements. Teys program to engage our workers a result of 61% for the total Teys in creating lifestyle opportunities by Australia organisation. This is To ensure employees are positioned educating them in: meaningful change and a result of to have long term career paths, - Finance and money management the dedication of our management our salaried staff participate in teams to build trust, strong performance management reviews - Mental health programs employee relationships and great on a six monthly basis with a career - Lifestyle program discounts communication with employees. Our development discussion. - Employee Assistance Program – goal for FY2017 will be to exceed Access EAP the national norm of 66% with the Teys Graduate Trainee - Health and fitness programs second engagement survey. Program The Teys Australia Graduate Trainee Employee Development program has been developed to Throughout the year our employees enhance the company’s future partake in compliance training and provide opportunities for (e.g. the training that is required to advancement for existing and new
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WORKPLACE HEALTH AND SAFETY Our Approach Golden Rules Our approach remains unchanged. As part of our constant focus on 0 The safety of our people is always our workplace health and safety, a WORK RELATED highest priority. Regardless of where company set of golden rules were FATALITIES our people work or what they do, we implemented in FY2016. The rules were strive to create an environment where launched with engagement across our employees and families, should feel our business through a variety of .52% confident that they will return home the methods, including tool box talks and 21 way they arrived – SAFELY, because safety committees. The rules have been REDUCTION IN nothing we do is worth getting hurt for. developed to define “deal breaker” LOST TIME INJURY safety breaches and aim to ensure our FREQUENCY RATE FROM FY2015 Our Safety Performance workers have freedom from injury while After a successful three year alignment of in the workplace. The rules are made in .01% lost time hours achieving a 73% reduction an effort to help management and staff 16 last financial year, this year we set a goal discern un-acceptable behaviour with REDUCTION IN of achieving a 50% reduction based regards to safety. REPORTABLE INJURY FREQUENCY RATE on our FY2012 target. We achieved this FROM FY2015 goal, resulting in a 61% reduction in LTH’s Musculo skeletal from the FY2012 baseline. In partnership with the University of Queensland - School of Health and % We have achieved a decrease in our Rehabilitation Sciences and CIM Health, 61 Lost Time Injury Frequency Rate (LTIFR) REDUCTION IN we launched a scholarship program in LOST TIME HOURS by 21.52% and seen our Reportable 2015. Three university students from UQ SINCE FY2012 Injury Frequency Rate (RIFR) decrease were selected to participate in five week by 16.01% similarly. placements at our Beenleigh processing facility. The program was designed to Our performance continues to be help put these student’s knowledge into positive, however we are always practice in a workplace environment, investigating opportunities to improve and while continuing to learn skills on the job. ensure we don’t become complacent. This provides us with a new set of eyes LOST TIME HOURS PER MILLION HOURS WORKED and perspective on how we undertake job tasks. 6000 Each student completed a project 5000 of a different nature as part of their
4000 placement. These projects were: - Paunch Room – Bible Separation 3000 - Slaughter Floor – Whizzer Knife 2000 - Packing area – Job Rotation 1000
FY12’ FY13’ FY14’ FY15’ FY16’ At the end of the placement each student presented their feedback, findings and recommendations to LOST TIME INJURY FREQUENCY RATE the Senior Leadership Team at the 25.06 Beenleigh site, key staff from Head 13.98 12.98 10.81 10.97 Office and CIM Health. One of the students has since gained FY12’ FY13’ FY14’ FY15’ FY16’
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full-time employment with CIM from the This facility was recognised publicly by WHS Risk Management opportunity and will work with the Teys local Tamworth member Kevin Anderson Effective risk management is essential in Beenleigh site. The success of the program after it’s opening during a parliamentary managing potential hazards within our from all parties’ perspectives means it will seating. Tamworth also received the facilities and throughout the business. offered again in FY17. inaugural ‘Excellence in Safety’ award A focus throughout FY16 has been on from iCare for its initiative. To encourage the effectiveness of how these potential Fitness and more employers across Australia to adopt hazards are identified, assessed Conditioning Centre this best practice, in conjunction with (likelihood vs consequence), and how The long term success of our business Teys, iCare made a video to highlight we effectively apply the hierarchy of and employees health is reliant on our proactive approach and promote control when making a decision on ensuring they’re fit and conditioned for the adoption of these types of long term how to control these risks. This year we work. Expanding on the improvements health programs across the industry and continued our focus of rolling out the made in our Beenleigh health centre will highlight the benefits of this initiative titanium tunics across identified at risk last year, we have opened a fitness and to both employers and employees. tasks, across our business to minimize the conditioning centre at our Tamworth risk of cuts and lacerations. processing facility. It was developed as a collaborative project with iCare NSW, To further manage risks within our Allianz, Safe Work NSW, Peel Health operations we trialed and implemented Care, Rural Fit & 360 Fitness Club. blade stop band saw technology a system uniquely designed to reduce risk severity of a serious injury by mechanically stopping the band saw blade. This technology is now being rolled out across the group as part of a multi-year strategy.
Livestock unloading facilities improve driver safety and animal welfare Our Naracoorte processing facility has made upgrades to its livestock unloading facility to assist in improving both animal welfare and personal safety.
The first of its kind, a new innovative two- deck high cattle unloading facility was designed and installed in consultation The purpose of the centre is to, serve with the supply chain as part of a facility as a hub for health professionals i.e upgrade at the site. The 20 metre long / physiotherapists, to assist workers in 3 metre wide fixed platform is designed their ongoing health needs. Allowing to handle a wide configuration of stock the workers to access a range of crates from B-doubles and semi-trailers benefits including advice, exercise to single axle trucks. and routine plans as well as onsite rehabilitation programs. Along the length of the platform and ramp there is a walkway for stock workers and We believe the Tamworth program drivers to keep the cattle moving without will promote, support and educate having direct contact with them. Safety is all employees in their own health and our number one priority, however there wellbeing, whilst potentially reducing are many other benefits, including faster injuries in our workforce. turnaround for drivers and better animal welfare management.
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COMMUNITY ENRICHMENT AND ECONOMIC DEVELOPMENT Our Approach with other major sponsors raised in $ We provide benefits to the communities excess of $53,000 for the Wagga 99,094 in which we operate through our people Wagga Breast Cancer Group with INVESTED IN LOCAL the Teys Wagga team committing COMMUNITIES and business investments. We accept our responsibility to the communities in which $5,000 and 396 hours in volunteering we operate, and where possible source throughout the event. The aim of the business inputs locally, employ people charity day is to support not for profits from our immediate communities and who support the local community in 2,322 health and wellbeing. HOURS VOLUNTEERED partner with people and organisations IN FY2016 that share our values. Encouraging active lifestyles through sporting donations Enriching Lives through financial Contributions and Teys continually supports sporting teams Volunteering & sports events in the local communities Community and employee outcomes are in which we operate. In FY2016, we primarily delivered through our financial donated $11,500 through the provision contributions. However, we recognise of beef, uniforms and cash. that through direct engagement with, and contribution to, the community and Effects of market our employees, this can be enhanced. consolidation on the red In FY2016, Teys Australia voluntarily meat processing sector contributed $99,094 in community In FY2015, we voluntarily lodged a and employee based initiatives. Similar submission into the senate enquiry into to last year’s donations, a significant the “Effects of market consolidation on portion of our donations were in the form the red meat processing sector”. Our of meat cuts. submission highlighted a number of key points, drawn from industry sources and As part of our community investment, reports about the variability in the beef we have developed a monitoring plan supply chain. to focus on capturing the time our people spend in the local community. On the 4th of May 2016, the Senate In FY2016, our employees volunteered Rural and Regional Affairs References 2,322 hours in the community through Committee released an interim report local events and forums. with the intention of finalizing the report after the Australia Competition & Supporting Non for Profits Consumer Commission (ACCC) released – Wagga Wagga Breast their report from their “Cattle and Beef Cancer Group Market Survey”. The interim report Teys Australia Wagga Wagga held its made some recommendations around third annual charity golf day on 25th voluntary price transparency and buyer October 2015. The Teys Wagga team, behaviors at sale yards. For a number of
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years, we have been providing training to our buyers on the behaviours that comply with competition law and will continue to do so.
Teys has made a submission to the ACCC’s market survey that focuses on building the relationship between producers and processors to ensure that both industry sectors are viable. The producer’s success is our success. The ACCC market survey report is due by the end of May 2017.
We continue to improve transparency of our cattle grading procedures and feedback provided to cattle producers. We have also implemented a new complaints procedure which allows any supplier the opportunity for independent review of grading outcomes. In the period, we received two complaints, with both being resolved to the suppliers satisfaction.
Teys have also been a strong supporter of the Rural Research and Development (R&D) for Profit programme project on “Advanced measurement technologies for globally competitive Australian meat”. The project will enable beef, farmers to have access to more accurate measurements of meat produce to inform and improve decisions on breeding and animal husbandry. Apart from developing advanced measurement technologies, it will also develop enhanced feedback systems to provide producers with new information to improve competitiveness, and profitability in the meat value chain.
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ENVIRONMENTAL PROTECTION AND SUSTAINABILITY Our Approach funds to improve our facilities. Using this 229,840 We are committed to our environmental approach, we have been able to deliver SCOPE 1 AND 2 EMISSIONS obligations, including those that a variety of environmental improvements are required for compliance with projects in FY2016. We continued to local, state and federal regulations. implement a strong set of processes to Given Teys’ widespread presence in optimise environmental management at Australian, agricultural communities each of our locations. 3,408 we know we have a fundamental MEGALITRES USED ACROSS SIX responsibility to manage our Climate Change PROCESSING PLANTS impacts and do this sustainably We recognise a variety of physical and through best practice environmental financial impacts associated with climate stewardship. This means, employing change. These include: ethical planning and management - Risk from physical change practices for the responsible use, associated with climate change and protection, of natural resources (e.g. seasonal variations in whilst maintaining compliance with Australian weather conditions). the legislative framework. - Risk from Business Uncertainty associated with allocating future Managing Environmental capital for projects. Sustainability - Regulatory risks and Policy In collaboration with our sites we set Direction (e.g. Costs associated with energy and water targets to reduce complying with tighter performance our reliance on natural resources. To standards and reporting costs). support this process we invest in utility reduction projects to improve our overall - Risk to animal welfare business sustainability. By incorporating associated with climate change environmental considerations into (e.g. seasonal variations in decision making through capital Australia weather conditions). projects, risk management, industry - Risk to water sources and collaboration we are able to better availability of feed associated manage our consumption of water with climate change. and energy. - Risk of scrutiny associated with the integrity of our production practices, As part of our approach to remain and impact on the environment. compliant with our licence obligations, we employ dedicated environmental - Innovation Opportunities officers at all of our processing facilities (e.g. Development and provision with a focus on managing environmental of new technology and products risks. By prioritizing and evaluating our to address challenges related to risks, we can plan and allocate capital climate change).
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- Competitive Advantage reduction projects across our businesses Opportunities (e.g. by meeting and improved efficiencies. consumer appetite for green accredited beef and beef by-products Teys Australia’s emissions intensity and ensuring our portfolio exceeds has increased from 556 kgCO2/ customer and consumer expectations tHSCW in FY2015 to 594 kg of CO2/ for sustainable beef). tHSCW in FY2016 and represents an overall increase of 6.8% in GHG To mitigate the physical and financial emissions efficiency. Similarly, Teys pressures of climate change, Australia’s energy intensity has also Teys Australia: increased by 12.6% from 3,695MJ/ - Holds membership with various tHSCW in FY2015 to 4,161 MJ/tHSCW industry associations in Australia in FY2016. which actively participate in climate change discussion such as; AMPC. This year we made significant cuts to Being involved in industry discussion GHG emissions through the application helps us to better understand and of a biogas boiler at our meat take action to help reduce climate processing facility at Wagga Wagga, change impacts. in New South Wales. This asset has - Invests in projects that directly contributed to reductions of 20%-30% in natural gas at the facility alone. Four relate to reducing GHG emissions GREENHOUSE GAS EMISSIONS and reducing reliance on GHG of our six processing facilities operate intensive resources; for example using renewable energy through biogas FY2015 FY2016 generation. The combined energy the multimillion dollar investment SCOPE 1 155,478 125,981 in biogas generation at four of six production of these four facilities was processing plants. 321,684 GJ in FY2016, an increase of SCOPE 2 113,202 103,859 44% on FY2015. TOTAL 268,680 229,840 Energy Productivity and A critical challenge for Teys Australia Plant Efficiency to manage, has been the ability to We are more than ever committed to consume utilities efficiently, while our Teys Australia are improving the management of energy processing facilities experience a and GHG emissions in our business. downturn in production throughput. proud to generate In FY2016, the group’s total GHG This is because the majority of energy emissions were 229,840 tonnes of use is mandated by outcomes required 20% of energy carbon dioxide equivalent (CO2-e) and by the Department of Agriculture and from Renewable represents a 14.5% reduction on FY2015 Water Resources. This reflects in our emissions. This has been driven in part, energy and emissions intensity, as Technology. by the decline in throughput of our both have increased by 0.1% and processing operations, GHG emission 5.5% respectively.
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Our major energy demands remain - Enhanced metering and GREEN HOUSE GAS EMISSIONS BY SOURCE the same; that being electricity, natural data management. gas, coal and liquid petroleum gas - Capability building and (LPG). Our natural gas usage has culture change. seen a significant reduction as our - Water efficiency through low flow, processing plants continue to invest in high pressure applications. renewable energy. Projects and initiatives such as these A key example of our ongoing activity to keep us on track to reducing our reduce natural resource consumption is utilities consumption and highlights our through our Utilities Reduction Program businesses commitments to invest capital (URP). To support our holistic long term yearly in efficiency improvements. view of energy and water, we continued Electricity the roll out of this program, which looks Methane released from waste water handling to improve utility supply, utility end Natural Gas use, and management systems. This Coal year, our URP had specific focus on the LPG following areas: LNG Diesel Oil Better analysis and verification Sludge Biogas, Gasoline, Petroleum Base Oils & of projects resulting in better greases, Ethanol, Gaseous Fossil Fuels investment decisions and capturing savings achieved. ENERGY USED BY ENERGY SOURCE Continued focus on waste cutting, automating metering data and improving data analytics. Improving operating and maintenance procedures to consider energy and water impacts. Introducing energy productivity In addition, we appointed a Group Manager for Resource Efficiency with key deliverables around energy, water and GHG emissions. Natural Gas We have delivered energy Electricity Coal reductions through a broad range LPG of activities including; Diesel Oil - Traditional energy efficiency projects Sludge Biogas (Fuel combustion) such as compressed air management, Gasoline lighting upgrades and control, boiler Petroleum optimisation and thermal insulation. Ethanol, Gaseous Fossil Fuels, Kerosene Liquified Natural Gas - Power quality improvements.
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GREENHOUSE GAS EMISSIONS INTENSITY (KGCO2-E/THSCW)
FY15 556 594 FY16
Water As a major consumer of water, we prioritise water efficiency. Water continues to be a critical input to our business. Our aggregate water consumption for FY2016 was 4,162,763 kilolitres and a reduction of 19% from FY2015. (Note: This result does not include water usage at the Charlton feedlot in VIC or head office in QLD).
We are continually identifying, investigating and implementing opportunities to reduce our total water usage. Whether these be through reuse and recycling opportunities, engineered solutions, changes to procedures or behavioural changes by our employees.
All water continues to be sourced from municipal water suppliers and bores. Additionally, formal agreements outlining terms of supply, licences and permits are in place for the withdrawal of water.
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Case study – Water Recycling in our hide processing facility
Our hide processing facility in Murgon, Queensland has installed a state of the art Waste Water Recycling System (WWRS). The development builds on existing Brine Evaporation Process (BEP) technology at the site, with the installation of new, further treatment including Vibrating Membrane (V-SEP) and Reverse Osmosis (RO) plant.
The new WWRS enables the Murgon site to operate in a closed loop, capturing 100% of hide processing effluent for treatment, resource (salt) recovery and re-use. This has significantly reduced water consumption and has eliminated any requirement for irrigation of deleterious material to pastures
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and subsequent environmental impacts. Sodium Ion from hide processing This closed loop system represents best effluent, which is directly re-used in class environmental practice in the in the hide curing process. hide processing industry; and is the - Elimination of on-site irrigation of first application of these intertwined process effluent. This has enabled technologies within the hide processing rehabilitation of the pasture where industry in Australia. irrigation had previously taken place, increasing ground cover to 95%. As a result of the implementation of the WWRS, the site has observed a - RO and VSEP technologies reduction in consumption of potable implemented filter out most water as well as consumables Calcium and Magnesium as a expenditure for hide curing salt, concentrate which is transferred as both are recovered through into a mixing lagoon and the treatment process. removed as bio-sludge, used for composting and, furthermore, Operation of the WWRS is a success application as a soil ameliorant to for this facility as it has realised promote pasture growth. positive strategic and environmental efficiencies including: Teys Murgon recently received a Highly Commended certificate for - Recovery of up to 150,000 litres/ their nomination in the 2016 Premier’s week clean water, which is re-used Sustainability Awards, Business Eco on site as feed water for the site Efficiency Category. The category steam boiler and is also used for recognises business which strive to wash down and cleaning processes implement eco-efficiency in their integral throughout the facility. business strategy and which demonstrate - Recovery of up to 67,000 litres/week continuous improvement.
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ANIMAL WELFARE PRACTICES Our Approach 0 Teys Australia has a strong commitment REPORTABLE ANIMAL to animal welfare. As part of our WELFARE INCIDENTS commitment, all of our processing establishments are certified under the Australian Livestock Processing Industry Animal Welfare Certification System 0 (AAWCS) - an independently certified CRITICAL NON- CONFORMANCES animal welfare system that ensures livestock under our control, from receival to humane processing are managed in accordance with best practice animal welfare standards.
Ensuring Best Practice and Beyond We are happy to report that in FY2016, we had zero reportable animal welfare incidents and zero critical non-conformances. Across our operations, we are continually working to better understand the stressors of cattle and to, fine tune our animal handling processes.
Producer days We have been running, with the support of MLA, farmer field days near each of our facilities, and have also attended producer group field days to improve our communication with our suppliers. Part of the content being presented on those days covers Animal Welfare.
Beyond Good practice We have engaged an animal handling expert to review our stock handling practices to ensure that we handle all stock in our care as per industries best practice so that the stress on all livestock is minimised. All recommendations are being progressively implemented.
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FOOD SAFETY AND QUALITY PRACTICES Our Approach Control Point (HACCP), Vulnerability Producing safe food is a critical Analysis Critical Control Point (VACCP), function, which we are not prepared Threat Analysis Critical Control to compromise. Our customer’s health Point (TACCP) principles provides and their confidence in the brands we assurance that process controls are produce is of paramount importance constantly and effectively applied and and every effort is made to ensure that defines how these are established, the food we produce is of the highest monitored and verified through standard of food safety and quality. documented procedures. As part of our management commitment Producing a Safe Product Teys Australia staff are provided with Teys Australia is committed to supplying resources, support and training to products with the highest standards of enable these objectives to be achieved. food safety and quality to meet our Staff are accountable for actions, customers’ expectations and regulatory products, decisions, and policies within requirements and in turn provide a the scope of their role with the obligation nutritious product to consumers. to report, explain and be answerable for resulting outcomes. To meet quality, safety and legal requirements we have continued to grow our Quality Management System Food Safety Audits which complies with the accreditation To maintain & continually develop standards and certification requirements our Quality Management System, we of: Australian Government Department conducted 300 internal audits across of Agriculture, AUS-MEAT, BRC Global our processing plants & value add Food Safety Standard, Woolworths facilities in FY2016. A further 70 external Supplier Excellence Program, audits were conducted by both domestic FSANZ Food Standards Code, Meat and international customers along with Standards Australia and the Australian a variety of governing bodies. On Renderers Association. all occasions, Teys Australia met the requirements of these audits. We are also committed to meeting the requirements of the markets we Product Specification serve both domestic and international and Optimisation and the development of individual As per last year’s report, Teys Australia product specifications to meet these implemented a fully integrated system requirements is done in partnership allowing the business to optimise MSA with our customers. product capture. The successful rollout The Quality Management System which was confirmed by external third party is based on Hazard Analysis Critical audits conducted in FY2016.
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RESPONSIBLE SOURCING AND CONSUMPTION
Our Approach party accredited and audited. The Teys Teys Australia is committed to delivering Australia Grasslands Standard allows products that meet the needs of us to substantiate claims relating to customers and consumers that prove grass-fed production methods of cattle, claims relating to production methods in particular guaranteeing; and claims guaranteeing authenticity - Identification and lifetime traceability and transparency. Our commitments also - Never been confined for the purpose extend to our responsibility in managing of intensive feeding how we engage with suppliers and - Never fed grain, or grain by-products encourage best practice. - Minimum eating quality standard Product Integrity - A lifetime free from Hormonal growth Our range of branded beef programs promotants (HGP) continues to grow and support global - A lifetime free from antibiotics consumer trends. Our branded beef programs are underpinned by the Supply Chain and Supplier Meat Standards Australia (MSA) beef Impacts grading program. We understand that being a responsible business means extending our Our Grasslands brand continues to be commitments on sustainability, including a perfect example of an offering that environmental, social and economic aligns with the conscious consumer who practices to other organisations in our wants natural, free range, antibiotic supply chain. On a daily basis, we and artificial hormone free produce. procure products and services from a It is critical that our labelling and wide range of businesses both locally messaging are substantiated through and nationally. We also source products programs such as the Teys Australia and services internationally. Grasslands Standard, which is third
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APPENDIX
Identifying Our Material Issues For this year materiality process, we undertook a three step materiality process. Firstly, identifying sustainability issues relevant to our CSR focus areas and prioritising these issues with our stakeholders in mind. Secondly, we conducted a materiality review which included a desktop audit & search of relevant information in the public space which included a number of sustainability and meat industry standards. Finally, these material issues were prioritised according to their level of risk (from high to low).
Throughout the report, the high risk material issues that are common to a number of GRI aspects have been grouped into our seven CSR focus areas. A full list of performance data, disclosures, and indicators we report against is included as separate downloadable content at www.teysaust.com.au.
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Issue Definition/Rationale Aspect Boundary Report Section
Business Model Innovation Incorporating environmental and social Inside the organisation Governance and Leadership factors into decision making.
Anti-Competitive Behaviour Inquiry into the effect of market consolidation Inside the organisation Governance and Leadership on the red meat processing Sector.
Transparency and Accountability Business policy and risk management. Inside the organisation Governance and Leadership
Labour Practices Engaging a specialised outsourced Inside the organisation People Practices and Wellbeing recruitment service.
Workplace Health and Safety Reduction in workplace injuries Inside the organisation People Practices and Wellbeing
Training Ensuring our people are appropriately trained Inside the organisation People Practices and Wellbeing to carry out their jobs effectively.
Diversity Employee engagement and retention. Inside the organisation People Practices and Wellbeing
Shifting patterns in the red meat supply The supply and demand in the red meat Outside the organisation Community Enrichment and chain processing industry. Economic Development
Emissions and Climate Change Greenhouse gas emissions and efforts to Outside the organisation Environmental Protection reduce. and Sustainability
Energy Energy efficiency and industry leading Inside and outside the organisation Environmental Protection approach to investment in Renewable Energy. and Sustainability
Water Water efficiency, minimising spills and Inside and outside the organisation Environmental Protection releases and onsite reuse and recycling. and Sustainability
Customer Health and Safety Producing a product our customers can trust. Inside and outside the organisation Food Safety and Quality Practices
Animal Welfare The humane processing of cattle in our Inside and outside the organisation Animal Welfare processing facilities.
Transportation, Handling and Slaughter The welfare of cattle throughout the Inside and outside the organisation Animal Welfare supply chain from farms through to processing facilities.
Changing societal and community Creating a variety of brands and product Inside and outside the organisation Responsible Sourcing values in purchasing decisions and lines that meet the expectations and trends and Consumption consumption behaviour of consumers.
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