The Arnott’s Group is the custodian of some of Australia’s most iconic food brands. To maintain their place in the hearts of Australian consumers, our business must constantly evolve.
A necessary global dialogue is underway around the opportunity for a sustainable reset of economies and societies. This is our contribution to that dialogue.
Through our Sustainability Statement, we are setting out our vision and the commitments we will take on to address our obligations to the climate, to our community, and to future generations of Arnott’s Group leaders. We’ve identified three key areas where we as a business can have the greatest positive impact. They are; How we SOURCE our ingredients, how we MAKE our products and how we CONNECT with our people and our community
To address these issues, we’ve set ourselves four goals;
Target: To sustainably grow and source 100% of our key ingredients, namely flour, sugar, oil, dairy and cocoa products by 2035.
The Arnott’s Group sources ingredients and materials for its Australian manufacturing sites from about 140 direct suppliers.
We are committed to local manufacturing, with more than 99% of the products we sell in Australia made in Australia, using local and imported ingredients.
At The Arnott's Group, we recognise the key role we can play in sustainable sourcing and in supporting Australia's local growers and industry. We work directly with local soft wheat farmers in regions such as the Riverina and Liverpool Plains in New South Wales, Kangaroo Island in South Australia, and the Darling Downs in Southern Queensland in sourcing their produce, which is then milled and baked into our biscuits. This includes gathering insights on the impact of the climate on the annual harvest and purchasing the soft wheat they produce.
Today, Arnott's is the largest buyer of soft wheat in Australia.
Our sourcing process is guided by The Arnott’s Group Responsible Sourcing Supplier Code, which sets out the standards and ethical principles applicable to suppliers. As an outline of our responsible commitments in areas such as labour and fair treatment, the Code ensures The Arnott’s Group is committed to responsible supply chain management and responsible sourcing. The Arnott’s Group is also a part of SEDEX, Ethical Trading Initiative (ETI) and the ETI Base Code. These support us in sourcing responsibly, and ensuring our local workers are and free from exploitation.
In addition to our own responsible procurement framework, The Arnott’s Group is aligned to several ethical and sustainable certification schemes including The Roundtable on Sustainable Palm Oil (RSPO), The UTZ-Rainforest Alliance and the Model Code of Practice for the Welfare of Animals and State and Territory laws and regulations.
Net-Zero climate impact
Target: Achieve net-zero emissions in our operations by 2040, and across the value chain by 2050.
Our focus is on making our processes more efficient and less resource-intensive, and to find practical, sustainable alternatives where possible, while continuing to make the high-quality Arnott’s Group products that our consumers expect.
To achieve the significant task of net-zero emissions across our operations we’re working on a roadmap that combines efficiencies, innovation and partnerships.
Energy use – We continue to reduce the absolute volume of total greenhouse gas emissions from energy sources across our operational and corporate offices in the Asia Pacific. A significant proportion of the greenhouse emissions arise from the gas used for baking, an energy source to which there are few viable alternatives. The Arnott’s Group is currently looking into potential solutions to address this challenging issue.
Waste Footprint – Only 2.76% of the total waste generated from our sites in 2020 was sent to landfill.
Water Usage – We’re committed to investigating water saving initiatives across our sites and have already seen a significant reduction in water use in FY20 compared with FY17.
Target: Reduce, re-use or re-purpose 10% of plastic packaging by 2025 and meet the 2025 recyclability targets set by the Australian Packaging Covenant Organisation (APCO)
Packaging Impact - The global consumer food and packaging industries face an enormous challenge in securing sustainable alternatives to plastic packaging and design while also protecting the provenance of food products. The ANZ Arnott’s Group purchased over 20,000 tonnes of packaging in FY20 alone, in packing our food and products for customers.
Over 98% of The Arnott’s Group ANZ packaging is technically recyclable (or 75% on a consumer unit basis). This includes all plastics, cardboard and can formats.
Within our soft plastics portfolio, on a weight basis, about 73% of the packaging is recyclable.
The Arnott’s Group has established a new sustainable packaging strategy containing initiatives and targets across the entire packaging value chain, from design, production and use of packaging, through disposal and recovery, to promote the use of recycled material and the circular economy.
We have embedded the APCO targets in our internal stage gate process for product development through a new assessment tool to drive decision making on packaging formats.
Australia also has its constraints on recycling infrastructure, so we know that just because packaging is recyclable, it doesn’t automatically mean it is recycled. So, our approach needs to be broader than increasing the recyclability of our packaging. That’s why partnerships will be key to achieving real change.
We have a range of existing partnerships and partnerships we are exploring. Our existing partnerships including; ANZPAC Plastic Pact initiative led by APCO and the Ellen Macarthur Foundation, The REDcycle Program, Product Stewardship.
Target: Target: Increase choice, opportunity, and wellbeing by promoting inclusion, belonging, supporting communities and providing diverse food options and guidance on nutrition.
Our heritage and iconic status as a company brings with it, responsibility to our communities. We believe that enduring success as a group of brands and businesses is only possible if our employees, our partners and our consumers also benefit. It is only by empowering individuals and communities that we can ensure our business is truly sustainable over the longer term.
The Arnott’s Group is committed to fostering inclusion, belonging and sustainability through our work.
Only by bringing a diversity of culture, gender, geography and thought into the workplace, can we innovate and respond to our rapidly evolving consumer, customer and stakeholder needs. The Arnott’s Group is proud of its progress on workplace gender equality. For Australia this is reflected in our annual reporting to the Australian Government Workplace Gender Equality Agency. The Arnott’s Group workforce representation is reflected by:
Gender composition of the workforce, at 49% women and 51% men - at our extended Leadership Team level 45% women and 55% men,
58% of promotions in the last 12 months were female
Flexible working arrangements and working arrangements supporting carers Policies, strategies and processes to help reduce sex-based harassment and discrimination.
At the same time, we recognise that there is always room to step up our efforts. In committing to gender equality at The Arnott’s Group, we will be focusing on areas for improvement including
Continuing to close the gender pay gap across our workforce,
Engagement on gender equality, by introducing a wider variety of consultation avenues.
Working to establish a formal strategy for ensuring inclusion and belonging in our workforce. As we build and implement our standalone human resources systems, we will establish metrics to measure and track and report our commitment to diversity in our workforce.
Develop our inaugural Reconciliation Action Plan to continue the process of recognising the legacy and heritage of our business and bringing the perspectives and interests of First Nations people to the heart of our business
Nutrition and Wellbeing
The Arnott’s Group has established guiding principles to help us define how we will make delicious products responsibly and offer consumers choices that best suit their lifestyles. Our Principles are: Offer choice to consumers, rely on the science of nutrition and communicate transparently.
In line with these principles, we have made significant nutrition improvements across our product portfolio.
The Arnott’s Foundation
Back in 2004 we started The Arnott’s Foundation as a means for us to contribute positively to the families and community in Australia. The Arnott’s Group and The Arnott’s Foundation 19 aim to create positive environments that allow families to build, sustain and enjoy a better quality of life.
The Foundation works with four charities -- Camp Quality, Foodbank, Fairy Sparkle and Driver Reviver. These charities focus on a range of issues from children’s cancer and healthcare, feeding the hungry and reducing the road toll.
A message from The Arnott’s Group
CEO, George Zoghbi
“More than ever, we understand the need for companies to conduct business within the natural boundaries of our planet. That is why sustainability is at the center of our business strategy. We want to grow our business while shrinking our environmental impact and supporting the communities in which we operate.”
Head of Transformation, Simon Lowden
“We recognise that to build a more sustainable food system in Australia, we must make change ourselves and inspire our consumers and partners to do the same. We must continue to make ourselves more accountable and endeavour to identify and respond to the climate-related risks within our business and our supply chain.”
You can download our commitments from the links below: