Banks, supermarkets mull how to implement deforestation-free policies
Banks and supermarkets are promising to sell only ‘deforestation-free’ beef. They just haven’t worked out what that is yet.
Corporate Australia is grappling with what it considers to be deforestation amid pressure from green groups to adopt a stricter interpretation than the one put forward by the beef industry.
Major supermarkets and banks are considering the definition outlined by peak industry body Cattle Australia this week as debate rages about comparisons to legal tree clearing in Australia and deforestation of the Amazon rainforest in Brazil.
Graziers and the Albanese government have warned the $10bn export industry could be significantly affected by the European Union’s upcoming deforestation regulation if Brussels adopts the stricter definition that does not class Australia’s rangeland cattle properties as agricultural land or recognise legal vegetation management.
They are also concerned that deforestation policies being announced by banks and supermarkets could limit the way they raise their herds.
While Cattle Australia’s definitions would not count tree clearing that complies with state and federal legislation as deforestation, environmentalists say removal of native forest is deforestation, whether it is conducted legally or not.
Last year, Westpac became the first of the big four banks to set a zero-deforestation target for loans to beef, dairy and sheep farmers.
The bank has previously said its policy would not apply to the clearing of regrowth or revegetation of areas used for grazing.
A spokeswoman said the bank would take time to consider the Cattle Australia definitions.
“Cattle Australia’s Land Management Commitment is an important piece of work and one that we hope will lead to more consistent definitions for Australia’s beef industry,” the spokeswoman said.
Last month, Woolworths announced it would sell only “deforestation-free” beef by December next year, but it was unclear how the supermarket would define the issue.
“We are reviewing Cattle Australia’s recently released Land Management Commitment policy,” a Woolworths spokeswoman said.
“We support the development of a localised deforestation definition which recognises Australia’s unique landscape and vegetation, while ensuring responsible land management.
“We will continue to engage across the industry on this important topic.”
Aldi, which also has a deforestation policy, would not comment on the Cattle Australia definition but said it is working with industry and business partners to determine how to implement its commitment.
Coles is developing its own deforestation policy and will review Cattle Australia’s proposal.
“We recognise the complexity of addressing the nature challenge and are committed to working with our farmers, suppliers and industry partners to reduce our impact on the environment and help our customers to make more responsible choices,” a Coles spokeswoman said.
“We source our beef from across multiple cattle-producing regions of Australia and recognise that our producers are responsible stewards of the land.
“We continue to develop a beef road map to prevent deforestation in our direct supply chain and govern our beef sourcing processes. We will also continue to collaborate with Australian industry frameworks such as the Australian Beef Sustainability Framework and beef suppliers to preserve the environment and maintain productive landscapes.”
While it was criticised by environmentalists, agricultural industry groups, including the National Farmers Federation, backed Cattle Australia’s definitions, which came after months of consultation.
“With major customers such as the EU and Australian supermarkets moving to safeguard against ‘deforestation’ in their supply chains, it’s critical we have a commonly understood definition that is grounded in the practical realities of managing Australia’s unique landscape,” NFF president David Jochinke said.
“We applaud the government and retailers for continuing to engage sensibly with industry on this issue.”
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