September 2019
Australian Beef & Deforestation Corporate Scorecard
Are companies doing enough to conserve Australia’s forests and bushland? Contents
Executive summary 2
Key findings 4
Key asks 4
Scorecard summary table 5
Part 1: The pathway to deforestation‑free beef 6 The environmental impacts of beef production in Australia 7 The global trend towards deforestation‑free beef 8 The Australian beef supply chain 11 ‘Key supply chain actors’ infographic 12 Could the Australian beef supply chain go deforestation‑free? 14
Part 2: The 2019 deforestation & beef scorecard 16 Scoring methodology 17 Scorecard actors and results 18 1. Retailers 18 Detailed scorecard of retailers 19 2. Processors 20 Detailed scorecard of processors 21 3. Producers 22 Detailed scorecard of producers 23
Conclusion 24
Appendix 25
Endnotes 28
Photo: The Wilderness Society
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 1 Executive summary
In Australia, the environmental costs associated with The analysis found that, presently, none of the Consumer and other stakeholder the beef supply chain are significant. Beef production companies have sufficient policies and procedures in demand has been driving the is a leading cause of deforestation and land clearing place to rule out deforestation in their supply chains. in Australia.1 Due to high land clearing rates in the None of the companies assessed are able to say with world’s biggest companies to start state of Queensland, Australia is now a designated confidence that the Australian beef they produce or use global deforestation hotspot. This is driving significant is not driving the destruction of forests, threatening addressing the environmental biodiversity loss,2 greenhouse gas emissions3 and endangered species or contributing to carbon pollution contributing to poor water quality running into the or the contamination of water flowing into the Great costs associated with beef, paper, Great Barrier Reef.4 Barrier Reef. This presents a serious challenge to companies that source beef from Australia, particularly palm oil and the other commodities those who have promised their customers and other The close links between deforestation and beef stakeholders (including financial institutions) that they they buy. Public concern about production mean the Australian beef supply chain will ensure the commodities they buy are not linked currently has significant exposure to deforestation risk. to deforestation. deforestation and habitat Deforestation risk—meaning the financial, reputation destruction has sparked a growing and brand damage that could flow from a company’s activities being linked to deforestation—is increasingly This performance will need to rapidly improve in wave of initiatives from the private being addressed at the global level by private sector and order to meet the global deforestation‑free cut‑off governmental deforestation‑free sourcing policies. date of 2020, as specified in the New York Declaration sector to eliminate deforestation on Forests, the Sustainable Development Goals and multiple individual company commitments. and destruction of natural Globally, many consumer goods companies, and their suppliers, have promised to eliminate deforestation ecosystems from commodity from their supply chains by 2020. Endorsers of the Acknowledging that implementation of forest New York Declaration on Forests, for example—which protection commitments comes with many challenges, supply chains. include some of the world’s largest companies the Wilderness Society believes it would be most and governments—have committed to eliminate efficient for the entire Australian beef sector to move deforestation from agricultural supply chains by 2020. to deforestation‑free practices. The best solution to the beef industry’s deforestation risk would be an industry‑wide commitment to deforestation‑free The Wilderness Society sought to understand how key practices, a time‑bound implementation plan to get companies were addressing deforestation risk in their there and a transparent process for verifying progress. Australian beef supply chains. We assessed leading beef For that reason, we commend those companies that are retailers, processors and producers on their policies actively working towards sector and legal reform and the and plans to address deforestation. The information scores reflect those efforts. was gathered via a formal survey and supplemented by publicly available information. The scoring criteria were based on existing company commitments in other parts of the world and on global initiatives and frameworks that provide guidelines for the establishment and fulfillment of no‑deforestation policies. The assessment was divided into a policy stage and an implementation stage. The resulting scorecard ranks companies on how well they are addressing deforestation risk in their supply chains.
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 3 Table 1: Scorecard ranking companies on deforestation‑free beef policies and implementation activities*
Key: Policy Stage Implementation Stage
Good Fair Poor max 40 max 60 TOTAL points points points
McDonald’s 26.5 2.5 29
Woolworths 11.5 0 11.5
Key findings Key asks Costco 9 0 9
Policies: This 2019 assessment shows that there Policy: Companies need to assess their exposure to Coles 2 0 2 are very few leading companies with strong policies deforestation risk for beef and any other forest risk or commitments to eliminate deforestation from commodities, commit to forest protection and set a Australian supply chains. Only one company, strong formal policy to remove deforestation from IGA/Metcash 0 0 0 McDonald’s, was considered to have a strong their supply chain. deforestation policy (scoring 66% or more). Aldi 0 0 Two companies, OBE Organic and Teys/Cargill, had 0 Implementation: Companies need to implement their a moderate policy (scoring between 33% and 66%). policies/commitments, with clear time‑bound action Far too many companies in this supply chain still Hungry Jack’s 0 0 plans, and ongoing verification of deforestation — 0 have no policies or commitments at all, with most and degradation — free supply chains. companies assessed scoring between 0%–33% for Subway the policy stage. 0 0 0 Reform: Companies need to actively work towards Implementation: None of the companies have sector‑wide reform and support government and adequate implementation of deforestation‑free civil society efforts to protect forests and bushland. Teys/Cargill 18 0 18 practices. Even the few companies with more ambitious commitments had no systems to JBS 6 0 put them into practice. 6
More action needed: None of the companies NH Foods 1.5 0 assessed had sufficient policies and processes in 1.5 place to rule out deforestation in their supply chains. This does not bode well for meeting 2020 deadlines Keystone Foods 1.5 0 1.5 for global forest protection commitments. Urgent action is required to meet global goals, transition to Hilton Foods sustainable beef, and break the link between beef 0 0 0 and deforestation in Australia. OBE Organic 14.5 7.5 22
Paraway Pastoral Co 11 0 11
North Australian Pastoral Company (NAPCO) 2 0 2
MDH/Superbutcher 2 0 2
Australian Agricultural Company (AACo) 1 0 1
Australian Country Choice (ACC) 0 0 0
Consolidated Pastoral Company 0 0 0
*Assessed May 2019
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 5 The environmental impacts of beef production in Australia
Australia’s forests and bushland are home to Deforestation and land clearing in Great Barrier Reef globally significant biodiversity. They form part of catchments also leads to erosion and run‑off of Australia’s land carbon sink, and provide a range of sediment into the Great Barrier Reef World Heritage other ecosystem services to Australian communities. Area.13 This run‑off reduces sunlight to seagrasses and Deforestation—the reduction or complete removal of smothers coral and other reef organisms. Agricultural native forest and bushland—has escalated in Australia activity often intensifies after land is cleared, driving over recent years to reach globally significant levels.5 additional chemical run‑off into Reef waters on top The state of Queensland has the highest rates of of the existing chemical loads. The Great Barrier Reef The pathway to deforestation and land clearing in Australia, with over Marine Park Authority has explained that ‘The decline 1.6 million hectares of forest and bushland cleared in in coral cover and lack of recovery coincides with degraded Queensland alone in the last 5 years.6 Eastern Australia water quality as a result of land clearing, land use changes deforestation‑free beef is now on a list of global deforestation fronts, alongside and agricultural use of the catchment.’14 For this reason, the the Amazon, the Congo and Borneo.7 At current clearing Australian and Queensland governments committed to rates, a football field‑sized area of forest and bushland a number of actions under the Reef 2050 Plan relevant is being bulldozed in Australia every two minutes.8 to controlling deforestation and tree clearing in Reef catchments, including ‘Strengthen(ing) the Queensland Government’s vegetation management legislation to protect Deforestation is a significant driver of biodiversity remnant and high value regrowth native vegetation, including loss and greenhouse gas emissions in Australia. It is in riparian zones.’15 estimated that 50 million native animals, including the iconic koala, are being killed by land clearing in Queensland and NSW alone every year.9 In 2017, the Beef production is the leading cause of deforestation Australian Department of the Environment and Energy and land clearing in Australia. A recent GIS analysis predicted that carbon pollution from deforestation undertaken by the Wilderness Society found that 73% would equal approximately 10% of Australia’s overall of all deforestation and land clearing in Queensland domestic emissions.10 In a survey of leading scientists is linked to beef production.16 This figure is likely to be conducted by the Ecological Society of Australia, an underestimate of the beef industry’s contribution clearing and land use change was ranked as the highest due to the conservative methods used throughout the current threat to biodiversity in Australia.11 A 2019 study. That result is consistent with the Queensland Scientists Declaration, signed by nearly 400 scientists, Government’s official tree‑cover reports which regularly stated also that ‘Large‑scale clearing of woody native attribute over 90% of the state’s forest and bushland vegetation contributes to increased fire risk by exacerbating destruction to replacement by ‘pasture.’17 Similarly, climate change through carbon emissions and increasing the Australian government data ascribed 72% of national severity and duration of droughts through changes in local deforestation in 2016 to grazing.18 There are numerous and regional climates.’12 scientific articles that identify cattle grazing as a key driver of deforestation, particularly in Queensland which has the largest cattle numbers in Australia.19 Given the impact of beef land use on deforestation, it is imperative that solutions to this deforestation crisis are supported by companies linked to, or within, the Australian beef industry.
Photo: Kerry Trapnell
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 7 The global trend towards deforestation‑free beef
Globally, recognition of the importance of protecting Public concern about deforestation, forest degradation forests for biodiversity, climate and people is (logging) and habitat destruction has sparked a growing manifesting in new multinational agreements and wave of initiatives from the private sector to seek industry commitments to address deforestation. The to eliminate deforestation and destruction of other New York Declaration on Forests, signed at the 2014 native ecosystems from supply chains. As of mid‑2018, New York Climate Summit, expresses growing global there were about 760 such public commitments by consensus on the importance of forests and the risks 469 producers, processors, traders, manufacturers of forest destruction: 20 and retailers.25
‘Forests are essential to our future. More than 1.6 billion people The New York Declaration on Forests has to date been depend on them for food, water, fuel, medicines, traditional signed by over 40 national‑level governments including cultures and livelihoods. Forests also support up to 80% of the United States of America, the United Kingdom terrestrial biodiversity and play a vital role in safeguarding and the European Union, and over 50 multinational the climate by naturally sequestering carbon. Yet, each year an corporations.26 Endorsers of the Declaration have average of 13 million hectares of forest disappear, often with committed under Goal 2 to: ‘support and help meet the devastating impacts on communities and indigenous peoples. private‑sector goal of eliminating deforestation from the The conversion of forests for the production of commodities— production of agricultural commodities such as palm oil, soy, such as soy, palm oil, beef and paper—accounts for roughly paper and beef products by no later than 2020, recognising half of global deforestation.’21 that many companies have even more ambitious targets.’27
The most recent IPCC report into global warming Many of the companies who endorsed the New York flagged ‘reduced deforestation, afforestation & reforestation Declaration on Forests are also part of the Consumer [and] responsible sourcing’ as key ways to keep global Goods Forum (CGF) that represents 400 companies temperature rises to under 1.5 degrees Celsius.22 Article across 70 countries and has pledged to ‘mobilise 5 of the Paris Agreement, which has been signed by resources within our respective businesses to help achieve 195 countries, states that, ‘Parties should take action to zero net deforestation by 2020’. The commodities conserve and enhance, as appropriate, sinks and reservoirs specifically included in the commitment by the of greenhouse gases ... including forests.’23 The Sustainable CGF are soy, palm oil, cattle and paper and pulp.’28 Development Goals (SDGs) adopted in 2015 include In Australia, Woolworths has been a member of the CGF. the target to: ‘By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.’24
Photo: Zizhang Cheng
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 9 Some corporations who have signed such deforestation statements are purchasers of Australian agricultural The Australian beef supply chain commodities. For example:
McDonald’s has a policy of ‘... eliminating deforestation Australia plays a key role in the global beef supply chain. 29 Industry snapshot from our global supply chains.’ Their stated goal is to In 2017, Australia was the third largest beef exporter ‘eliminate deforestation in our beef, chicken (including Australia is among the world’s largest beef cattle in the world40 and the second largest exporter of live soy in feed), palm oil, coffee and the fiber used in producers. The national beef cattle herd in 2017 was cattle globally.41 The four biggest export destinations for customer packaging by 2020.’ Beef from Australia has around 26 million head — with 55% of all agricultural Australian beef (by volume) in 2018 were Japan (28.1%), been identified by McDonald’s as a top priority in farms in Australia growing beef.33 Australia ranked the United States of America (20.5%), Korea (15.1%) implementing its Forests Commitment due to the seventh for beef production globally in 2017 and and China (14.5%).42 However, the Australian domestic 30 high levels of deforestation present. had the world’s 12th largest cattle herd.34 Beef cattle market is the largest single market for Australian beef farms account for more than 75% of the total area of consuming approximately 30% of the beef produced.43 The China Meat Association recently signed agricultural land area in Australia.35 In 2018, the majority the Chinese Sustainable Meat Declaration that of cattle were raised in Queensland and New South commits to ‘... avoiding land degradation, deforestation The Australian beef supply chain is diverse and Wales — 46% and 18% respectively.36 In the same year, and conversion of natural vegetation in the livestock This all presents a serious challenge to companies complex. It includes beef cattle stations, fattening Queensland also produced 48% of Australia’s beef and production value feed chains.’31 that source beef from Australia, particularly those and finishing properties, feedlots, restockers, live veal, followed by New South Wales (23%) and Victoria who have promised their customers and other exporters, processors/abattoirs, wholesalers, retailers (19%).37 The gross value of Australian cattle and calf stakeholders (including financial institutions) that they and restaurants. Some actors have partially integrated The goals contained in the New York Declaration on production (including live cattle exports) in 2017–18 will ensure the commodities they buy are not linked supply chains (for example, covering producers, feedlots Forests, the Consumer Goods Forum, the Sustainable was $11.4 billion.38 In 2016–17, beef was Australia’s to deforestation. In line with growing consumer and and processors). Development Goals and multiple individual company eighth largest export industry, with an export value stakeholder demand, most companies would want to be commitments suggest the need for urgent efforts to of $8.661 billion.39 able to say with confidence that the Australian beef they eliminate deforestation from supply chains by 2020 at use is not driving the destruction of forests, threatening least. International NGOs and technical organisations endangered species, contributing to carbon pollution have developed a general framework to help companies or contaminating the water flowing into the Great develop and implement non‑deforestation policies, Barrier Reef. The solution to this challenge will require called the Accountability Framework Initiative. This a concerted effort to improve processes throughout the initiative has provided guidance stipulating that for length of the beef supply chain. new deforestation‑free policies, ‘a cut‑off date no later than January 1 2020 would bring companies in line’ with the global goals specified in the New York Declaration on Forests and the UN Sustainable Development Goals.32 Where individual companies or sectors have committed to deforestation‑free with an earlier cut‑off date, the guidance provides that the earlier cut‑off date should be used.
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 11 "Key supply chain actors"
i e e ort attle Distri ution y state 201
Producers S 1 S Usually, calves are raised at the farm and then sold Salesyards eedlots C 1 S using auctions, farm yard sales, long standing contracts or other means. Sometimes, they are sold at a younger age to other cattle producers or feedlots for fattening Source: Meat & Livestock Australia. and subsequent sale for slaughter. 2019. Statistics atabase.
ort attle rocessin a acity y state 201
Processors Primary processors are usually the abattoirs that Beef e ort destinations slaughter the animals received from producers, either 201 o e to e via feedlots, saleyards or directly from cattle stations. S Secondary processors may be companies that add value C 2 to the cuts by turning them into beef patties or other S 22 S packaged products. Processors then sell beef either to wholesalers or retailers in domestic or export markets. Source: Australian Competition & Approximately 70% of total beef production in Australia Consumer Commission. 201 Cattle and beef market study Final report. is exported.
apa 1 91 S 2 1 1 Secondary rocessors W olesalers So t orea 1 0 C a 1 2 t er 121 9 do e a 9 Do estic Beef pp e a a 29 onsu tion
Source: Meat & Livestock Australia. 2019. Statistics atabase. Retailers Retailers either buy beef directly from processors, or from wholesalers. Some of the big retailers purchase S per ar et 0 young cattle through direct supply agreements. tc er 1 Retailers includes supermarkets, fast-food outlets e ta ra t 1 and other consumer-facing companies such as c er ce ca e 9 hotels and restaurants. C ote t er ood er ce
Source: Australian Competition & Consumer Commission. 201 Cattle and beef market study Final report.
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 13 Could the Australian beef supply chain go deforestation‑free?
Australian beef industry bodies appear to have 1. P roperty data 4. C orporate commitments or policies recognised sustainability risk issues and taken steps towards sector‑wide solutions. For example: In order to know exactly where cattle are produced, As a first step, companies must have awareness of the spatial property boundary data and land use data issue and develop a strong policy or commitment to The Australian Beef Sustainability Framework, which are required. In Australia, the boundaries of all rural deforestation‑free sourcing. is an initiative of the Red Meat Advisory Council properties are known and there is a federal land (RMAC), has developed a set of indicators that use dataset. 5. Verified implementation throughout measure what they refer to as ‘the balance of tree whole supply chain and grass cover’ in Australia.44 2. Deforestation and land use monitoring The final precondition is verified implementation of Monitoring of land use change is required to detect those commitments throughout the entire supply chain, There are multiple voluntary initiatives that where deforestation and land clearing has occurred. including secondary suppliers. encourage landholders to protect and restore There is a federal deforestation dataset, but this only biodiversity at the producer level, such as Landcare.45 records conversion of forest with a minimum 20% In terms of technical preconditions, Australia is well‑placed to shift to deforestation‑free supply In 2019, a pilot program for a certification scheme canopy cover, a minimum height of 2 meters, covering a chains. The purpose of the scorecard is to assess for agricultural produce that meets key biodiversity While these sorts of initiatives are positive first steps, minimum area of 0.2 hectares. (This was the definition where the various companies sit in relation to the measures was announced by the Australian the size and scale of deforestation risk demonstrates of ‘forest’ chosen by Australia for the purposes of last two essential criteria: deforestation‑free policies Government.46 that there is more to be done to meet corporate reporting under international climate agreements.) or commitments and their implementation. sustainability commitments. Queensland has a good system for recording all woody The producer industry peak body, AgForce vegetation clearing—both forest and more sparse Queensland, was running a voluntary program, bushland with sufficient accuracy and ground‑truthing The international experience suggests that a number the Grazing Best Management Practices, ‘to that can be replicated federally. of key technical, governance and policy preconditions allow the grazing industry to demonstrate sound have to be met in order to implement successful environmental and ethical practices to consumers 3. Cattle movement traceability 47 zero deforestation initiatives in relation to cattle and the community.’ It is necessary to be able to track beef from where it is supply chains. produced through to where it is ultimately consumed. Australia has the National Livestock Identification System (NLIS) — designed for biosecurity purposes — which tags each animal with an accredited tag or device, and it records all movements as animals are bought, sold and moved along the supply chain.48 If this NLIS scheme was used in conjunction with accurate deforestation monitoring it could provide a robust deforestation‑free verification system.
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 15 Scoring methodology
Given the global trend towards deforestation‑free Subsequently, a scorecard was developed that drew beef, the Wilderness Society sought to understand upon international best practices for deforestation‑free what steps retailers, processors, producers and other sourcing in beef supply chains. The full list of criteria companies were taking to address deforestation risk can be found in Appendix 1. The companies were in their Australian beef supply chains. We surveyed assessed against indicators using publicly available leading retailers, processors and producers involved in information, including, but not limited to, the company the Australian beef supply chain to understand what websites. All companies were independently scored commitments and plans they had in place to address twice by separate assessors before the two assessments deforestation. We also analysed each company’s for each company were consolidated. The assessments publicly available information, such as any formal were then shared with the companies to allow for forest commitments or other statements available on their input. The 2019 deforestation official websites. The pathway for companies to shift to sourcing and & beef scorecard The 20 companies that were assessed are significant selling deforestation‑free beef has two components. retailers, processors and producers in Australia. As a first step, companies must have awareness of Together, these companies dominate and control most the issue and develop a strong policy/commitment of the Australian beef supply chain. They consist of eight to deforestation-free sourcing. The second step is retailers and quick service restaurants, six processors application of the policy which includes developing (primary and secondary) and six producer companies. implementation plans and methods, developing Some actors have fully or partially integrated supply monitoring and verification systems as well as ensuring chains (for example, MDH/Super Butcher has there are transparency and reporting mechanisms in production, feedlot and retail interests). Where actors place. Forty percent of the total points could be achieved have integrated supply chains, they have been classified with policies or commitments while 60% were available according to their dominant activity (for instance, in for implementing a policy. MDH/Super Butcher’s case that is producer) but their other activities are noted. The scorecard separates the policy/commitments phase from the application phase. All companies were A number of steps were taken to ensure the accuracy of assessed for both phases as well as for a combined the scorecard and to give companies the opportunity to score. In each case, a traffic light system was used. reply to the findings. In February 2019, a questionnaire Companies that achieved more than 66% of the was sent to each surveyed company. The questionnaire available scores are green and companies that achieved requested information on their sustainability less than 33% of the maximum possible score are red. policies and awareness in relation to Australian beef Achieving between 33% and 66% of the possible points production and the links between these policies and resulted in an amber score. deforestation. None of the companies completed the survey despite multiple follow up requests via email and telephone calls.
Photo: The Wilderness Society
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 17 Scorecard actors and results
1. Retailers Table 2: Detailed scorecard of retailers
Hungry McDonald’s Woolworths Costco Coles ALDI IGA Subway Jack’s Approximately 30% of total Australian beef production Costco Global forest policy Yes Partial Partial No No No No No is consumed domestically, making the Australian Costco is the second largest retail chain globally behind domestic market the largest single market for Walmart and operates in numerous countries including Global ecosystem policy Partial No Partial No No No No No Australian beef.49 Of beef consumed domestically, it is the USA, UK, Canada, Mexico, Japan and others. In Member of key global estimated that approximately 60% is sold through direct Australia, the company has eleven locations in New Partial No Partial No No No No No initiatives retail channels—including supermarkets and butchers.50 South Wales, Queensland, Australian Capital Territory, The remaining approximately 40% is sold through food Victoria and South Australia.67 Data on Costco’s market Australian forest policy Yes Partial No No No No No No service outlets (quick service restaurants, cafes, and share of Australian beef sales in not currently publicly 51 Australian ecosystem policy Partial No No No No No No No casual dining restaurants.) available, but it is likely to be below 2%.
McDonald’s All suppliers included in policy Partial No Partial No No No No No Key supply chain actors: This fast food chain plays a critical role in the beef supply Engagement with ABSF Yes Yes No Yes No No No No chain taking in a large percentage of the less valuable Woolworths Policy covers non‑beef beef cuts from a significant list of slaughterhouses across Partial Partial No No No No No No Woolworths is Australia’s largest supermarket chain commodities in Australia Australia. Its influence on the industry is disproportionate with around 32% of the grocery retail market share Policies & Commitments to the value of the products it purchases for its outlets Supports government action No No No No No No No No through its Woolworths and Countdown banners.52 53 in Australia. Importantly, McDonald’s also uses Australian The company has more than 1,000 stores in Australia. 68 69 70 Recognises beef — beef in countries such the USA, Korea, Japan, Yes Yes No No No No No No It has been estimated that Woolworths has a market deforestation link Singapore71 and Hong Kong.72 In 2014, the company share of 42% of supermarket beef sales.54 The company said it exported 41 million kilograms of beef from Points has a close relationship with Teys/Cargill which supply 26.5 11.5 9 2 0 0 0 0 Australia per year.73 in excess of 230,000 head of cattle equivalent per Percent 66% 29% 23% 5% 0% 0% 0% 0% year to the retailer costing Woolworths more than Hungry Jack’s 55 Australian implementation $380 million annually. Hungry Jack’s is the master Australian franchise of the No No No No No No No No plan Burger King Corporation but acts as an independent Coles Australian company and is not a subsidiary of Burger King. 2020 no‑deforestation goal Partial No No No No No No No 43% of beef sales in supermarkets occur at Coles.56 There are more than 420 Hungry Jack’s restaurants and the In March 2018, Wesfarmers, the owner of Coles, Supplier support programs No No No No No No No No company has 19,000 employees.74 Hungry Jack’s says they announced its plan to demerge the food retailer and sell around 125 million Australian beef patties every year.75 Markets deforestation-free establish it as an independent company again.57 No No No No No No No No products Wesfarmers will only retain a minor stake of 15% in the Subway 58 Has deforestation traceability newly listed company. Through its supermarkets and Doctor’s Associates Inc., the owner of the Subway No No No No No No No No system in place convenience stores (Coles Express), Coles has a share franchise brand, was founded in 1965 in the USA and of around 29% of the overall grocery retail market in Commits to monitoring now has around 44,000 outlets. It had about 1,400 stores No No No No No No No No Australia.59 In 2011, Coles said it used around 500,000 in Australia in 2017. However, as of 2017, it only controlled & verification plans 60 head of cattle annually for its beef production. 7.4% of the Australian fast food market compared to Publishes monitoring No No No No No No No No McDonald’s 20%.76 Subway is likely to use much less & verification plans Aldi beef product than either McDonald’s or Hungry Jack’s, This German-based international discount food retailer Details of non‑compliance but it still has exposure to the issue of land clearing No No No No No No No No began trading in Australia in 2001, and now holds about procedures from beef production. Moreover, it has used Australian 12% of the Australian grocery sales market61 and 10% Publishes non-compliant beef in other countries, such as Singapore.77 No No No No No No No No of the beef sales at supermarkets.62 Aldi has a strong supplier list focus on private labels and globally has more than Publishes progress reports No No No No No No No No 10,000 stores in 20 countries63 with over 500 stores Results: in Australia.64 Discloses list of suppliers No No No No No No No No McDonald’s achieved the highest score of any company Independent Grocers of Australia (IGA)/Metcash Implementation Publishes audit/verification assessed. In the policy section of the scorecard, No No No No No No No No Metcash is a major wholesale distribution and McDonald’s was the only actor that was able to reach reports marketing company which owns a number of 66% of the available score or more. However, the Communicates deforestation No No No No No No No No well‑known brands in Australia. This includes the company was let down by its lack of implementation risks to suppliers IGA and Foodland supermarket chains and hardware that specifically addresses Australian supply chains. chains such as Mitre 10 Home Timber & Hardware along The only other retailer achieving more than ten points Points 2.5 0 0 0 0 0 0 0 with Hardings, Thrifty‑Link Hardware and True Value was Woolworths while a number of companies such as Percent 4% 0% 0% 0% 0% 0% 0% 0% Hardware.65 IGA’s share of supermarket beef sales is Hungry Jack’s, Aldi, IGA and Subway received no points. small compared to the other main players. It has been Due to the lack of implementation and mostly weak TOTAL POINTS 29 11.5 9 2 0 0 0 0 estimated that only 2% of all beef sold in supermarkets policies, no company earned more than 33% of the in Australia is purchased at IGA outlets.66 achievable points and all were graded red.
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 19 Scorecard actors and results
2. Processors Table 3: Detailed scorecard of processors
Hilton Teys/Cargill JBS Keystone NH Foods Foods Primary processors are usually the abattoirs that in the processing of high quality hides. Additionally, Global forest policy Yes Partial No No No slaughter the animals received from producers, either Teys Australia Food Solutions produces value added 84 via feedlots or directly from beef stations. Secondary products. Global ecosystem policy Partial No No No No processors may be companies that add value to the cuts by turning them into beef patties or other NH Foods Australia Member of key global initiatives Yes Partial Partial Partial No packaged products. In Australia, the processing sector NH Foods Australia Pty Ltd is a wholly owned subsidiary is highly concentrated, with two companies — JBS of the wider NH Foods Group (formerly Nippon Meats), a Australian forest policy Partial No No No No and Teys/Cargill — accounting for approximately 40% publicly listed company and Japan’s leading company of all beef processing.78 Queensland dominates the in the fresh meat, ham and sausage industry. There Australian ecosystem policy No No No No No processing sector, with 43% of all processing occurring are four main subsidiaries, including Whyalla Beef in All suppliers included in policy Partial No No No No in that state.79 southern Queensland which operates a feedlot but also includes breeding operations. Thomas Borthwick & Sons Engagement with ABSF Yes Yes No No No is a Queensland based processing facility exporting to Japan, the European Union, Asia, Middle East, China Policy covers non‑beef commodities Key supply chain actors: No No No No No and the Americas. Oakey Beef Exports is another NH in Australia JBS Australia Foods owned processing facility located in the Darling Founded in 1985 in Brazil, today JBS is the world’s Policies & Commitments Supports government action No No No No No Downs region of Queensland, and Winghams (another largest beef producer, chicken producer and leather processor in NSW) exports 70% of its production. The processor. It is also the second largest producer of Recognises beef — deforestation link No No No No No domestic supply is marketed by subsidiary company, pork and lamb globally. The company services 350,000 Beef Producers Australia.85 Points 18 6 1.5 1.5 0 customers in 150 countries with over 400 production 80 facilities and offices around the world. JBS is the Keystone Foods Percent 45% 15% 4% 4% 0% largest meatpacker in Australia. The southern division Keystone is a supplier of meat protein to fast food of the Australian arm includes five processing facilities restaurants and retail stores across the world, including Australian implementation plan No No No No No in South Australia, Victoria and Tasmania. The northern serving as a major supplier of chicken nuggets to 2020 no‑deforestation goal No No No No No division encompassing Queensland and New South McDonald’s. Other products include beef patties, Wales also has five processing facilities. The company ready‑to‑cook chicken wings and fish fillets. Keystone Supplier support programs No No No No No owns abattoirs which process cattle, sheep, goats and is currently owned by the world’s second largest beef pigs, and also operates five feedlots with a capacity of processor, Marfrig, but in August 2018, it was announced Markets deforestation-free products No No No No No 150,000 head of cattle.81 JBS is the second largest food that Tyson Foods was to buy Keystone including its 86 Has deforestation traceability and drink company in Australia behind New Zealand Australian operation in Brisbane. No No No No No based dairy company Fonterra.82 system in place Hilton Foods Australia Commits to monitoring No No No No No Teys Australia/Cargill Hilton’s business was established in 1994 to set up and & verification plans Teys Australia is a 50/50 partnership between the operate a beef and lamb central meat packing facility Publishes monitoring Teys family and the Cargill Company. While Teys in England before it expanded to a number of locations No No No No No & verification plans Australia has been involved in Australian beef throughout Europe. In 2018, it was announced that operations since 1946, Cargill is one of the world’s Hilton would take full operational control of the Bunbury Details of non‑compliance procedures No No No No No largest traders of agricultural commodities with an and Melbourne facilities which were previously operated annual revenue of more than AUD$150 billion. Cargill is in a joint venture with Woolworths.87,88 Publishes non-compliant supplier list No No No No No the largest privately held company in the United States. Teys Australia has multiple subsidiaries including Publishes progress reports No No No No No Teys USA Inc. headquartered in Chicago and with sales Results: offices in Miami and Los Angeles.83 The American Implementation Discloses list of suppliers No No No No No Teys Australia/Cargill was the highest scoring subsidiary mostly focuses on importing beef products processor reaching 40% of the available score in the Publishes audit/verification reports No No No No No from Australia. Teys/Cargill is widely considered to policy section. This is mostly due to the company be the second largest operator of beef abattoirs in Communicates deforestation risks benefiting from the global policies of international No No No No No Australia. The company operates six beef processing to suppliers agribusiness giant Cargill, rather than strong facilities across the Eastern seaboard. Three of them are commitments by its Australian‑based joint venture Points 0 0 0 0 0 in Queensland (Rockhampton, Biloela and Beenleigh), partner Teys. No other processor managed to achieve two in New South Wales (Wagga Wagga and Tamworth) a significant number of points in either the policy or Percent 0% 0% 0% 0% 0% and one in Victoria (Charlton). In addition, there are the implementation section. three feedlots located at Jindalee (NSW), Condamine TOTAL POINTS 18 6 1.5 1.5 0 (Queensland) and Charlton (Victoria). Through Teys Australia Murgon Pty Ltd, the company is also involved
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 21 Scorecard actors and results
3. Producers Table 4: Detailed scorecard of producers
Consolidated OBE Paraway MDH NAPCO AACo ACC Pastoral Usually, calves are raised at the farm and then sold Consolidated Pastoral Company (CPC) Global forest policy Partial Partial No No No No No using auctions, farm yard sales, long standing contracts CPC’s properties are located in Queensland, Northern or other means. Sometimes, they are sold at a younger Territory and Western Australia and cover an area of 4.7 Global ecosystem policy No Partial No No No No No age to other cattle producers or feedlots for fattening million hectares.104 In addition, there are two feedlots in and subsequent sale for slaughter. Sumatra, Indonesia in which CPC has an 80% stake.105 Member of key global initiatives No No No No No No No CPC is engaged in significant live exports of cattle to Indonesia.106 CPC is owned by Terra Firma, a UK‑based Australian forest policy Partial Partial No No No No No Key supply chain actors: private equity firm that also invests in residential Australian ecosystem policy No Partial No No No No No Australian Country Choice (ACC) properties, garden centres and health care provision 107 ACC says that it is one of the largest vertically integrated in the UK as well as hotels in Germany. All suppliers included in policy Yes No No No No No No supply chain organisations in the world with more than Super Butcher/MDH Pty Ltd $800 million invested.89 The company manages 2.42 Engagement with ABSF Partial No Yes Yes Partial No No MDH is a private company and has 13 beef stations million hectares of pastoral, grazing and farming land.90 in Queensland covering an area of around 3.3 million Policy covers non‑beef commodities It also owns and operates feedlots and the Cannon Hill No No No No No No No hectares. The company also owns a feedlot near in Australia slaughterhouse in the outskirts of Brisbane.91 ACC has Brisbane.108 Cattle are processed in Dinmore Policies & Commitments been a key supplier to Coles for many years.92 Supports government action No No No No No No No (Queensland)109 and the company has a number North Australian Pastoral Company (NAPCO) of retail stores under the Super Butcher brand, Recognises beef — deforestation link Yes No No No No No No NAPCO was founded in 1877 and has since become one which it took over in 2012. Super Butcher outlets can 110 of Australia’s largest privately owned cattle companies be found in and around Brisbane and the Gold Coast. Points 14.5 11 2 2 1 0 0 managing more than 6.1 million hectares of land.93 OBE Organic Australia NAPCO has stations in Queensland and the Northern Percent 36% 28% 5% 5% 3% 0% 0% OBE focuses on producing and exporting organic beef Territory with a total cattle herd of around 200,000 from Australia. The company was founded by a number Australian implementation plan Partial No No No No No No animals.94 The company also operates a large feedlot in of families operating cattle stations in Australia. These Queensland.95 In July 2016, the Queensland Investment families own over 7 million hectares of grazing land, 2020 no‑deforestation goal Partial No No No No No No Corporation (which is owned by the Queensland about the area of Tasmania.111 Products are available government) acquired a controlling stake in NAPCO.96 Supplier support programs Partial No No No No No No throughout Australia but also in the Middle East, Asia 112 Paraway Pastoral and North America. Markets deforestation-free products No No No No No No No Paraway manages around 4.4 million hectares of land Has deforestation traceability system on stations across Queensland and New South Wales. No No No No No No No in place These stations carry over 200,000 cattle that produce Results: more than 20 million kilograms of beef annually. There Commits to monitoring The highest scoring producer was OBE Organics which No No No No No No No is also a herd of around 250,000 sheep.97 The ultimate was formed by a number of pastoral companies to & verification plans 98 owner of Paraway Pastoral is the Macquarie Group, market organic beef. Due to the built‑in monitoring Publishes monitoring No No No No No No No an Australian multinational investment bank. and verification system contained within the relevant & verification plans organics standard, OBE scored highest overall in Australian Agricultural Company (AACo) the implementation section of the scorecard. In the Details of non‑compliance procedures No No No No No No No With more than 7 million hectares, AACo manages policy section, Paraway Pastoral was the only other Publishes non-compliant supplier list No No No No No No No around 1% of the Australian land mass on properties producer company that achieved more than 10% in Queensland and the Northern Territory that also of the available points. include feedlots.99 The company’s total cattle herd Publishes progress reports No No No No No No No
consists of around 400,000 animals.100 AACo also Implementation Discloses list of suppliers No No No No No No No operated a processing facility south of Darwin to 101 process and export beef, hides and rendered products, Publishes audit/verification reports No No No No No No No but this facility was mothballed in August 2018 due to 102 Communicates deforestation risks underperformance. AACo is a public company that is No No No No No No No traded on the Australian Stock Exchange. The largest to suppliers shareholders are JP Morgan and Citibank.103 Points 7.5 0 0 0 0 0 0
Percent 13% 0% 0% 0% 0% 0% 0%
TOTAL POINTS 22 11 2 2 1 0 0
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 23 Appendix 1: Full assessment indicators and methodology
The table below includes the detailed indicators against which the companies were assessed and the maximum Conclusion: score available for each indicator. Each company was assessed against all criteria. There was a maximum of 40 points achievable under the commitment stage and 60 points available in the implementation stage, totalling a maximum of 100 points. The points for each stage and the total were then converted to percentages. A score of 0‑33% The close links between deforestation and beef Companies involved in the beef supply chain need in any of the stages resulted in a red grading. A score of 33%‑66% led to an orange grading and any score more than production in Queensland means the Australian beef to rapidly improve their policies and processes to 66% was graded green. The preliminary scores were sent to companies in April 2019 and all scores were finalised in supply chain currently has significant exposure to tackle deforestation in order to meet the global May 2019. Companies were given the opportunity to request changes to their scores. deforestation risk. Globally, many consumer goods deforestation‑free cut‑off date of 2020. Ultimately, companies, and their suppliers, have committed to the best solution to the beef industry’s deforestation remove deforestation from their supply chains by problem in Australia would be an industry‑wide Table 5: Full scoring methodology 2020. The Wilderness Society assessed 20 key retailers, commitment to deforestation‑free practices, a wholesalers, processors and producers involved in the time‑bound implementation plan to get there, and a Max No Indicator Guidance Notes Australian beef supply chain for what commitments transparent process for verifying progress. A robust Score and plans they had in place to address deforestation. system of cattle tracking and verification is an The analysis found that, presently, none of the key essential pre‑condition for this. In addition, strong The company commits for its entire operations Half points are given if the commitment companies buying or selling Australian beef have deforestation and land clearing laws, as well as data and (including any operations overseas, if only applies to a smaller set of forest applicable) to protect all forests including High landscapes. adequate policies or procedures in place to rule out monitoring at the national and state level are critical A1 Conservation Value forests and natural forests 5 deforestation in their supply chains. None of the complementary components of industry‑led initiatives. AND this commitment focuses on or includes companies scored green (more than 66% of available For that reason, we commend those companies that are the company’s beef operations. points) overall. Only three companies received a green actively working towards sector and legal reform. The (McDonald’s) or orange (OBE Organic and Teys‑Cargill) Australian beef industry has the opportunity to provide The company commits for its entire operations Half points are given if this commitment score (between 33% and 66% of the maximum score) in clean, green product to the world and being able to (including any operations overseas, if applicable) is regional only or lacks clear definitions of the policy stage. All companies were scored red (below promise and verify deforestation‑free beef is a critical A2 to protect non-forest natural ecosystems such what is included. 5 33%) in the implementation stage. part of realising that opportunity. as grasslands AND this commitment focuses on or includes the company’s beef operations.
The analysis shows that none of the companies Policies & Commitments The company is a member of key global One or two memberships warrants half assessed are able to say with confidence that the initiatives that work on reducing the impact beef points. Producers are not expected to be Australian beef they use is not driving the destruction of supply chains have on forests, including the part of the CGF and can achieve full points forests, threatening endangered species or contributing A3 New York Declaration on Forests, the Consumer with other memberships. 3 to carbon pollution or contaminating thef water flowing Goods Forum and the Roundtable on Sustainable into the Great Barrier Reef. This all presents a serious Beef or other industry groups with similar strong no deforestation commitments. challenge to companies that source beef from Australia, particularly those who have promised their customers The company has a specific commitment for Half points are given if the company is and other stakeholders (including relevant financial Australia, including its beef supply chain, that headquartered outside of Australia and institutions) that they will ensure the commodities ensures no conversion of natural forests and has achieved full points for its global policy A4 6 they buy are not linked to deforestation. High Conservation Value forests. but it is unclear if the policy applies to Australia or lacks clear definitions of what is included.
The company has a specific commitment for Half points are given if the company is Australia, including its beef supply chain, that headquartered outside of Australia and ensures no conversion of non‑forested natural has achieved full points for its global policy A5 ecosystems such as grasslands. but it is unclear if the policy applies to 6 Australia or lacks clear definitions of what is included.
The company commitment applies to its direct Half points are given if the commitment and indirect suppliers. does not specifically mention indirect A6 suppliers. 5
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 25 Table 5: Continued
Max Max No Indicator Guidance Notes No Indicator Guidance Notes Score Score
The company is a member of the Australian Beef Half points are given if the company is not The company has developed a monitoring and A7 Sustainability Framework (ABSF) Consultative listed as a member but there is evidence of 2 verification system or uses an independent third Committee or Sustainability Steering Group. engagement in ABSF updates. party to monitor and verify that its beef supply C3 in Australia does not originate from lots and 5 The company’s specific Australian no This applies to all companies due to the use stations where deforestation, land clearing or deforestation commitments explicitly extend to of feed, packaging, etc. Half points are given conversion of non‑forested natural ecosystems has occurred. A8 other Australian forest risk commodities such if this does not clearly extend to Australia. 2 as agricultural crops for feed, timber, paper, packaging, leather, grains, etc. The company has clear public guidelines and procedures that address non‑compliance events
Implementation C4 5 There is evidence that the company publicly This could include statements on the by its Australian suppliers, including contract cancellation pathways. A9 supports Government regulation to stop company website, within company policy 3 deforestation in Australia. documents or in submissions to regulators. The company has published a list of Policies & Commitments non‑compliant suppliers, including or limited The company or its management have D1 4 to Australian suppliers. committed or made statements about the importance to protect forests in Australia in relation to beef production or publicly The company publishes progress reports A10 recognised the link between deforestation and 3 (at least bi‑annually) towards its zero D2 4 beef production in Australia or the importance deforestation goals and includes its of forests in regards to biodiversity, ecosystem Australian supply chain in these reports. services or erosion prevention. The company discloses suppliers within its For retailers, this refers to slaughterhouses. Subtotal 40 Australian supply chain. For slaughterhouses, this refers to stations and feedlots. For producer companies, this The company has published a time‑bound Half points are given if the plan is not D3 refers to their own stations and any stations 4 implementation plan of its beef policy time‑bound. from which they have bought animals B1 for Australia. 5 (including stations that supply the feedlots of the company should it have any).
The company’s implementation plan includes a Half points are given if the date is later than The company publishes its own or its time‑bound goal to be deforestation-free for beef 1 January, 2020 and no points are given if commissioned third party audit and verification in Australia by 1 January, 2020. the date is later than 2022. Half points are D4 reports in relation to its zero deforestation 4 B2 also given if this is covered through a global 5 commitment in its Australian beef supply chain. policy and the date for Australia is implied
Implementation through that rather than specifically There is public evidence that the company has Half points are given if this only applies mentioned. D5 communicated the deforestation risks within its to direct suppliers. 4 beef supply chain to its suppliers. The company has programs in Australia that help its direct and/or indirect suppliers Subtotal 60 B3 implementing the beef related company 5 commitment. GRAND TOTAL 100 The company markets, sells or distributes B4 deforestation-free beef products in Australia. 5
The company has published details about its Half points are given if a traceability traceability systems in Australia in relation system exists but cannot trace back to the C1 to deforestation that ensures it can trace all production unit. Half points are given if the 5 beef back to the origin (including movement to system development is in progress but has feedlots and other supply chain steps). not been completed.
The company has committed to implementing a monitoring and verification system that ensures its Australian beef supply does not C2 originate from properties and stations where 5 deforestation, land clearing or conversion of non‑forested natural ecosystems has occurred.
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 27 Endnotes
1 A recent GIS analysis undertaken by the Wilderness 11 Australian Government, Department of Environment 24 United Nations (2019) Sustainable Development Goals, 36 Meat & Livestock Australia Ltd (2019) Statistics Database. Society conservatively found that 73% of all deforestation and Energy (2017) Australia State of the Environment Goal 15, Target 15.2. Accessed online at: https://www.un.org/ Accessed online at: http://statistics.mla.com.au/Report/List and land clearing in Queensland is linked to beef 2016—Biodiversity report. p.11. Commonwealth of Australia: sustainabledevelopment/biodiversity/ 37 Meat & Livestock Australia Ltd (2019) Statistics Database. production: The Wilderness Society (2019) Drivers of Canberra, ACT. 25 Donofrio, S., Rothrock, P., and Leonard, J. (2018) Zooming Accessed online at: http://statistics.mla.com.au/Report/List Deforestation and land clearing in Queensland. The 12 Ecological Society of Australia (2019) Scientists’ in: Companies, commodities, & traceability commitments 38 Australian Government, Department of Agriculture and Wilderness Society: Sydney, NSW. According to Australian declaration: Strong legislation needed to curb Australia’s that count. Forest Trends: Washington DC, USA. See government data, 72% of national deforestation in 2016 Water Resources (2019) Agricultural commodities — June accelerating rate of land clearing. Accessed online at : also: Donofrio, S. Rothrock, P., and Leonard, J. (2017) 2018. Accessed online at: http://www.agriculture.gov.au/ was due to grazing. Australian Government, Department https://www.ecolsoc.org.au/scientists-declaration-strong- Supply change: Tracking corporate commitments to of the Environment and Energy, Australian Greenhouse abares/research-topics/agricultural-commodities/dec- legislation-needed-curb-australias-accelerating-rate-land- deforestation‑free supply chains, Forest Trends: Washington 2018#previous-reports Emissions Information System, Activity Table 1990‑2016 clearing DC, USA. Accessed online at: https://www.forest-trends.org/ — LULUCF, Tab 3 ‘Activity in ABARES Land Use Regions, 3 39 Australian Government, Department of Foreign Affairs 13 Great Barrier Reef Marine Park Authority (2014) Great wp-content/uploads/2018/04/2017SupplyChange_Trackin- years to 2016’, published April 2018. Accessed online at: Committments.pdf and Trade (2019) Australia’s trade statistics at a glance: http://ageis.climatechange.gov.au/QueryAppendixTable. Barrier Reef outlook report 2014. GBRMPA: Townsville, Australia’s top 10 goods and services exports 2018. Based aspx Queensland, p.229. 26 New York Declaration on Forests (2018) NYDF Global on the DFAT STARS database and ABS catalogues 5368.0 14 Great Barrier Reef Marine Park Authority (2014) Great Platform: Endorsers. Accessed online at: https:// (March 2019), 5368.0.55.004 and unpublished ABS data. 2 Neldner, V.J., Laidlaw, M.J., McDonald, K.R., Mathieson, M.T., nydfglobalplatform.org/endorsers/ Melzer, R.I., Seaton, R., McDonald, W.J.F., Hobson, R., and Barrier Reef outlook report 2014. GBRMPA: Townsville, Accessed online at: http://dfat.gov.au/trade/resources/ Limpus, C.J. (2017) Scientific review of the impacts of land Queensland, p. 229. 27 United Nations (2015) New York Declaration on Forests and trade-at-a-glance/pages/top-goods-services.aspx clearing on threatened species in Queensland. Queensland 15 Commonwealth of Australia (2015) Reef 2050 long‑term action statement. Accessed online at: https://unfccc.int/ 40 Meat & Livestock Australia (2018) Fast facts: Australia’s Government: Brisbane, Queensland. sustainability plan. Commonwealth of Australia, p. 36. news/new-york-declaration-on-forests beef industry. Meat and Livestock Australia: North Sydney, 3 Australian Government, Department of the Environment Accessed online at: https://www.environment.gov.au/ 28 The Consumer Goods Forum (2019). Industry Resolutions. NSW. Accessed online at: https://www.mla.com.au/ and Energy (2016) Australia’s emissions projections 2016 system/files/resources/d98b3e53-146b-4b9c-a84a- Accessed online at https://www.theconsumergoodsforum. globalassets/mla-corporate/prices--markets/documents/ Chart data. Commonwealth of Australia: Canberra, ACT. 2a22454b9a83/files/reef-2050-long-term-sustainability- com/what-we-do/resolutions/ trends--analysis/fast-facts--maps/mla_beef-fast- Accessed online at: http://www.environment.gov.au/ plan.pdf 29 McDonald’s Corporation (2015) McDonald’s Corporation facts-2017_final.pdf climate‑change/publications/emissions‑projections‑2016 16 The Wilderness Society (2019), Drivers of Deforestation commitment on forests, updated February 2017, 41 United Nations (2018) Commodity Trade Statistics The projected deforestation emissions are: 49Mt in 2017, and land clearing in Queensland. The Wilderness Society, and McDonald’s commitment on forests supporting Database (Comtrade) 53Mt in 2018 and 51Mt in 2019. Sydney, p. 6. https://www.wilderness.org.au//images/ addendum. Accessed online at: https://corporate. 42 Meat & Livestock Australia Ltd (2019) Statistics Database. resources/The_Drivers_of_Deforestation_Land-clearing_ mcdonalds.com/content/dam/gwscorp/scale-for-good/ Accessed online at: http://statistics.mla.com.au/Report/List 4 W aterhouse, J., Schaffelke, B., Bartley, B., Eberhard, R., Qld_Report.pdf McDonaldsCommitmentOnForests.pdf. See also: http:// Brodie, J., Star, M., Thorburn, P., Rolfe, J., Ronan, M., Taylor, B., 43 Meat & Livestock Australia Ltd on behalf of the Red Meat 17 Queensland Department of Environment and Science corporate.mcdonalds.com/corpmcd/scale-for-good/our- and Kroon, F. (2017) 2017 Scientific consensus statement: planet/conserving-forests.html Advisory Council (RMAC) and the Sustainability Steering Land use impacts on Great Barrier Reef water quality (2011‑2018) Statewide Landcover and Trees Study (SLATS) Group, The Australian Beef Sustainability Framework and ecosystem condition. The State of Queensland: reports, 2011‑12 (2013); 2012‑13 (2014); 2013‑14 (2015); 30 The priority section reads: In order to better focus our (2018), ‘The beef industry’. Accessed online at: https:// Queensland. Accessed online at: http://www.reefplan.qld. 2014‑15 (2016); 2015‑16 (2017); 2016‑17 (2018); 2017‑18 (2018). efforts, we have mapped out and identified a list of www.sustainableaustralianbeef.com.au/About-the-beef- gov.au/about/scientific‑consensus‑statement/ DES, Queensland Government: Brisbane, Queensland. countries that have a high deforestation risk, as defined industry in the WWF Living Forests report, and that we currently 5 Evans, M.C. (2016) Deforestation in Australia: drivers, 18 Australian Government, Department of the Environment 44 Meat & Livestock Australia Ltd on behalf of the Red and Energy (2018) Australian Greenhouse Emissions are sourcing from: Fiber — Argentina, Cambodia, China, trends and policy responses. Pacific Conservation Biology Indonesia, Laos, Malaysia, Russia and Vietnam. Coffee — Meat Advisory Council (RMAC) and the Sustainability 22(2) p.130‑150. https://doi.org/10.1071/PC15052 Information System, activity table 1990‑2016 — LULUCF, Steering Group (2018) The Australian Beef Sustainability Tab 3 ‘Activity in ABARES land use regions, 3 years to 2016’. Honduras, Indonesia and Vietnam. Palm oil — Indonesia 6 Queensland Department of Environment and Science and Malaysia. Soy — Argentina, Bolivia, Brazil and Framework: Six priority areas for action. Accessed online at Published April 2018. Accessed online at: http://ageis. https://www.sustainableaustralianbeef.com.au/balance- (2011‑2018), Statewide Landcover and Trees Study (SLATS) climatechange.gov.au/QueryAppendixTable.aspx Paraguay. Beef — Argentina, Australia, Bolivia, Brazil, reports, 2011‑12 (2013); 2012‑13 (2014); 2013‑14 (2015); Colombia and Paraguay. McDonald’s Corporation (2017–19) of-tree-and-grass-cover 2014‑15 (2016); 2015‑16 (2017), 2016‑17 (2018); 2017‑18 (2018). 19 See for example: McAlpine, C.A., et al. (2009) Increasing Beef sustainability: Conserving forests. Accessed online 45 Landcare Australia (2019) Our programs. Accessed online DES, Queensland Government: Brisbane, Queensland. world consumption of beef as a driver of regional and at: https://corporate.mcdonalds.com/corpmcd/scale-for- at: https://landcareaustralia.org.au/our-programme/20- global change: A call for policy action based on evidence good/our-planet/conserving-forests.html#goals million-trees/ 7 WWF International (2018) Living planet report from Queensland (Australia), Colombia and Brazil. Global ‘Deforestation fronts’. Grooten, M., Almond, R.E.A. (Eds) Environmental Change 19(1) p.21–33; Bradshaw, C.J.A. (2012) 31 Beef Central (2017) China’s sustainable meat declaration 46 Minister for Agriculture and Water Resources (2019) Media p.28. WWF: Gland, Switzerland. Accessed online at: http:// Little left to lose: deforestation and forest degradation in an opportunity for farmers, says WWF. Accessed online at: release: Rewarding biodiversity on farm. Commonwealth of wwf.panda.org/knowledge_hub/all_publications/living_ Australia since European colonization. Journal of Plant https://www.beefcentral.com/news/chinas-sustainability- Australia. Accessed online at: http://minister.agriculture. planet_report_2018/ Ecology 5(1) p.109‑112. declaration-an-opportunity-for-farmers-says-wwf/ gov.au/littleproud/Pages/Media-Releases/rewarding- biodiversity-on-farm.aspx 8 Calculations are based on national average of 600,000 20 United Nations Climate Change (2015) New York 32 Accountability Framework (2019) Cutoff Dates. Accessed hectares of deforestation and native forest logging per Declaration on Forests Global Platform (2019). online at: https://accountability-framework.org/contents- 47 AgF orce Queensland (2019) Grazing BMP. Accessed online year, 1,643 hectares per day, 68 hectares per hour, 1.14 Accessed online at https://nydfglobalplatform.org/ of-the-framework/cutoff-dates/?guidance_topic=1 at: https://agforceqld.org.au/?tgtPage=events&page_ hectares per minute. 1.14 hectares x 2 minutes = 2.28 = id=760 21 United Nations Climate Change (2015) New York 33 Agrifutures Australia (2017) Beef cattle. Agrifutures well over the 1.77 hectare area of the MCG. So this is a Australia: Wagga Wagga, NSW. Accessed online at: https:// 48 National Livestock Identification System (2018) NLIS technically conservative figure. Declaration on Forests. United Nations Framework Convention on Climate Change: Bonn, Germany. Accessed www.agrifutures.com.au/farm-diversity/beef-cattle/ information. National Livestock Identification System: 9 Finn, H.C., Stephens, N.S. (2017) The invisible harm: land online at: https://unfccc.int/news/new-york-declaration- 34 Food and Agriculture Organization of the United Nations North Sydney, NSW. Accessed online at: https://www.nlis. clearing is an issue of animal welfare. Wildlife Research on-forests, https://unfccc.int/media/514893/new-york- (2019) Faostat. com.au/NLIS-Information/ 44(5) p.377‑391. declaration-on-forests_26-nov-2015.pdf 35 United States Department of Agriculture, Foreign 49 Meat & Livestock Australia Ltd on behalf of the Red Meat 10 Australian Government, Department of Environment and 22 United Nations Intergovernmental Panel on Climate Agricultural Service (2018) Australia: Livestock and Advisory Council (RMAC) and the Sustainability Steering Energy (2017) Australia’s emission projections 2017—chart Change (2018) Global warming of 1.5 [degrees Celsius] products annual, September 2018. Accessed online Group, The Australian Beef Sustainability Framework data. Commonwealth of Australia: Canberra, ACT. Accessed — summary for policymakers. Intergovernmental Panel at: https://gain.fas.usda.gov/Recent%20GAIN%20 (2018), ‘The beef industry’ Accessed online at https:// online at: http://www.environment.gov.au/climate-change/ on Climate Change; Switzerland. Accessed online at Publications/Livestock%20and%20Products%20Annual_ www.sustainableaustralianbeef.com.au/About-the-beef- publications/emissions-projections-2017 http://report.ipcc.ch/sr15/pdf/sr15_spm_final.pdf Canberra_Australia_8-31-2018.pdf industry 23 United Nations (2015) Paris Agreement, Article 5 (1). https://unfccc.int/sites/default/files/english_paris_ agreement.pdf
Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 29 Endnotes
50 Meat and Livestock Australia (2018) Market snapshot: 64 Australian Food News (2017) Aldi’s plans for Australia in 80 JBS (2018) Institutional presentation, including 2Q18 100 Australian Agricultural Company (2019) Operations. Beef, Australia. Meat and Livestock Australia: North 2018. Accessed online at: http://www.ausfoodnews.com. results. http://jbss.infoinvest.com.br/enu/4746/JBS%20 Accessed online at: https://aaco.com.au/operations Sydney, NSW. Accessed online at: https://www.mla.com.au/ au/2018/02/07/aldis-plans-for-australian-in-2018.html Institutional%20Presentation_September.pdf 101 Australian Agricultural Company (2019) Operations. globalassets/mla-corporate/prices--markets/documents/ 65 Metcash Limited (2018) Hardware. Accessed online at: 81 JBS Australia (2018) Our facilities. Available online at: Accessed online at: https://aaco.com.au/operations os-markets/red-meat-market-snapshots/2018-mla-ms_ https://www.metcash.com/our-businesses/hardware/ http://www.jbssa.com.au/OurFacilities/default.aspx australia_beef.pdf 102 Burton, L., Brann, M. (2018) Australia’s largest cattle 66 Meat and Livestock Australia (2018) Market snapshot: 82 Food & Drink Business (2018) Australia’s top 100 food company AACo mothballs Darwin abattoir. ABC News, 51 Australian Competition and Consumer Commission (2017) Beef, Australia. Meat and Livestock Australia: North & drink companies 2018. Published 3 December 2018. published on 23 May 2018. Accessed online at: https:// Cattle and beef market study—Final report. Commonwealth Sydney, NSW. Accessed online at: https://www.mla.com.au/ Accessed online at: http://www.foodanddrinkbusiness. www.abc.net.au/news/rural/2018-05-23/aaco-closes- of Australia: Canberra, ACT, p. 34. globalassets/mla-corporate/prices--markets/documents/ com.au/top-100/exclusive-australia-s-top-100-food-and- livingstone-beef-abattoir-near-darwin/9790454 52 Roy Morgan (2018) Woolworths increases lead in $100b+ os-markets/red-meat-market-snapshots/2018-mla-ms_ drink-companies-2018 103 Australian Agricultural Company (2019) AACo 2018 Annual grocery war. Published 23 March 2018. Roy Morgan: australia_beef.pdf 83 Teys Australia (2018) Teys USA. Accessed online at: Report. Accessed online at: https://aaco.com.au/investors- Melbourne, VIC. Accessed online at: http://www.roymorgan. 67 Costco Wholesale (2019) Find a warehouse. Accessed http://www.teysaust.com.au/facilities/teys-usa/ media/annual-reports com/findings/7537-woolworths-increases-lead-in-$100b- online at: https://www.costco.com.au/store-finder plus-grocery-war-201803230113 84 Teys Australia (2018) Facilities. Accessed online at: 104 Consolidated Pastoral Company (2019) CPC. Accessed 68 McDonald’s (2018) Our food. Your questions. Accessed http://www.teysaust.com.au/facilities/ online at: https://pastoral.com/en 53 Woolworths Group (2018) 2018 annual report. Accessed online at: https://www.mcdonalds.com/us/en-us/about- 85 NH Foods (2018) Facilities. 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Wilderness Society Australian Beef & Deforestation Corporate Scorecard 2019 31 Photo: The Wilderness Society
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