Coles, Woolies step up deforestation commitments

Coles and Woolworths have stepped up their deforestation targets in the face of mounting pressure from consumers, investors and environmental groups.

Coles and Woolworths have stepped up their deforestation targets in the face of mounting pressure from consumers, investors and environmental lobby groups.

In its first “protecting forests” statement released alongside its annual report last week, Coles details the steps being taken to protect forests across its Coles Own Brand supply chain, singling out beef as one of its main focus areas.

This includes developing a road map to prevent deforestation in its direct supply chain and govern its beef sourcing processes.

“Coles will also continue to collaborate with Australian industry frameworks such as Australian Beef Sustainability Framework and with beef suppliers to preserve the environment and maintain productive landscapes,” the document said.

The retailer has been analysing satellite imagery verified by data analytics company CiboLabs and using ABSF definitions to check that its directly sourced cattle are from a property “free from Primary Forest loss” from a 2020 baseline.

Australia’s largest two retailers are sharoening their focus on deforestation.

A Coles spokeswoman said the ASX-listed business was committed to working with its farmers to reduce its impact on the environment.

“We recognise the complexity of addressing the nature challenge,” she said.

Meanwhile Woolworths’ annual report also released last week reveals it has updated its approach from net zero deforestation to no deforestation in line with the UN-backed and Europe-based Science Based Targets Initiative.

SBTi is one of the world’s leading climate-certification organisations and has validated the net zero plans of hundreds of major companies including Maersk, Tesco and Domino’s Pizza.

Much to the relief of the Australian beef industry, Woolworths pointed out that it was sensitive to the issue around evolving definitions of deforestation, “and the need to apply these definitions in the appropriate context for our supply chain, industry and geography”.

This recognises a strategic project underway at Cattle Australia to define what deforestation means in an Australian context.

The peak body for beef cattle producers is rushing to finalise the project before the European Union Deforestation Regulation comes into force at the end of the year, which will mandate that only deforestation-free products can be imported to the continent.

Cattle Australia chief executive Chris Parker in Canberra. The peak body representing beef cattle farmers says many of the international frameworks are not entirely suitable for recognising Australian agricultural practices. Picture: Gary Ramage

Cattle Australia chief executive Chris Parker said Woolworths’ acknowledgment of the need for a localised definition of what constitutes deforestation was a “win for producers and the environment”.

“It is vital the fog of confusion that has been created by some environmental groups around misleading deforestation perceptions is refuted and ignored,” Dr Parker said.

“CA’s Land Management Commitment will address the nuances of the Australian beef production system with regards to land management and biodiversity, and we are committed to promoting the very real sustainability credentials of the Australian red meat supply chain.”