The Arnott’s Group’s second annual Sustainability Report highlights its achievements and continued momentum to achieve key sustainability obligations for the planet, its people and the community.
Over the past 12 months, the Arnott’s Group’s has created a more accountable and transparent supply chain, committed to renewable energy solutions, widely adopted the Australasian Recycling Label (ARL), and provided a wider choice of food options and more guidance on nutrition to consumers.
Arnott’s Group CEO, George Zoghbi, said creating a more sustainable future is critical, despite challenges such as the world has seen in the past few years.
“We have a responsibility, across our entire supply chain, from how we source and make our products, to how we connect with the community,” Zoghbi said. “Sustainability is at the heart of everything we do as a business, and it’s an imperative we continue to drive progress.”
Arnott’s Group chief transformation officer, Simon Lowden, said the business has approached its sustainability agenda with enthusiasm and a desire to continue to do more and do better.
“We have spent the past year taking stock of our processes, measuring our outputs, and working closely with the industry, our customers and our partners on emerging technologies, new materials and collective challenges,” he said. “We have listened to the repeated calls from consumers worldwide, demanding greater accountability from companies, and we have acted.”
The report comes 12 months after The Arnott’s Group set itself four ambitious targets, namely to:
- Grow and source 100 per cent of key ingredients – namely flour, sugar, oil, dairy and cocoa products – sustainably by 2035.
- Achieve net zero emissions in operations (scope one and two) by 2040 and across the value chain (scope three) by 2050;
- Reduce, reuse, or repurpose Australian and New Zealand plastic packaging by 10 per cent by 2025 and meet Australia’s 2025 National Packaging Targets set by Australian Packaging Covenant Organisation (APCO); and
- Increase choice, opportunity and wellbeing by promoting inclusion and belonging, supporting communities and providing diverse food options and guidance on nutrition.
Some of the Arnott’s Group’s achievements highlighted in its Sustainability Report this year include:
Source – Sustainable ingredients
- Securing the commitment of 90 per cent of suppliers of ingredients and packaging to responsible supply chain management in line with the Arnott’s Group Responsible Sourcing Supplier Code;
- Implementing an ethical standards framework for suppliers, with 96.3 per cent compliance by ingredient and packaging suppliers; and
- Successfully developing a new soft wheat variety, created in partnership with Longreach wheat breeders and Allied Pinnacle, that has a better overall yield, greater drought tolerance and resilience against pests. The new variety will be aptly named ‘Scotch’ as a nod to the longstanding partnership between the companies and the role that The Arnott’s Group plays in supporting the soft wheat industry as the largest individual purchaser.
Make – Net Zero emissions
- Implementing plans to install solar power systems across the Arnott’s Group’s bakery sites in Australia by the end of 2022; and
- Refining waste management practices across manufacturing sites including reducing landfill waste, diversifying recycling options, and implementing better waste infrastructure.
Make – Circular packaging
- Adopting the Australasian Recycling Label on 72 per cent of its product portfolio, with a goal to achieve 100 per cent by 2024, one year ahead of the national target;
- Transitioning all point-of-sale displays in Australia to 100 per cent recyclable alternatives; and
- Committing to transition the entire Arnott’s soft plastic packaging portfolio in ANZ to mono material by the end of 2023, removing 9 tonnes of plastic from the environment each year and improving recyclability.
- Donating 794,600 products via Foodbank and 100,000 via EatUp to Australians in need; and
- Donating $250,000 to Camp Quality and $100,000 to Fairy Sparkle, through the Arnott’s Foundation, to help kids with cancer.
The full Sustainability Report can be viewed here.