Sustainability Insider: November - December 2025 - Australian Food & Grocery Council

Sustainability Insider

Sustainability Insider: November – December 2025

17 December 2025

Welcome to the final edition of Sustainability Insider for 2025, where we explore some of the newest initiatives reducing Australian FMCG’s environmental footprint. We’d like to thank you for your contributions to the AFGC’s sustainability activities over 2025 and wish you a safe and happy festive season and new year.

Industry insights

AFGC celebrates major industry milestone with ACCC authorisation

The Australian Food and Grocery Council (AFGC) celebrates the ACCC’s eight-year authorisation of Soft Plastic Stewardship Australia (SPSA), enabling industry to collect and recycle soft plastic packaging under a voluntary scheme, a vital step toward rebuilding Australia’s soft plastics recycling capability and advancing a circular economy for packaging.

Read the media release >>

APCO releases FY26-27 Business Plan and Statement of Intent

The APCO Business Plan was released on 01 December 2025. This plan sets a clear and practical pathway to support the transition to impending packaging regulation, stewardship and national alignment at a time of rapid change. Developed with extensive member consultation and industry collaboration, the plan strengthens APCO’s role as a system leader and provides businesses with the confidence, clarity and support they need to navigate a more sophisticated regulatory environment.

Nature enters the boardroom: New nature governance study released

The AICD and University of Sydney’s study, “Nature Enters the Boardroom”, is Australia’s first to examine how boards integrate nature into governance. It found that 81% of directors view nature-related risks as material, yet practices are still emerging. About half have updated risk frameworks, and boards often address nature indirectly via climate or resilience discussions. Barriers include unclear policy and limited capability. The study provides a baseline for boards to benchmark practice, enhance oversight, and align strategy with environmental dependencies, helping organisations safeguard long-term value, resilience, and social licence.

2026 Australasian Packaging Innovation & Design (PIDA) Awards now open for entries

Entries are now open for the prestigious 2026 Australasian Packaging Innovation & Design (PIDA) Awards that have been designed to recognise not only innovative packaging design, but also outstanding packaging professionals who are making a significant difference in their field in Australia and New Zealand. What makes the PIDA awards program unique is that it is not only industry-led but is the Exclusive Entry point for the WorldStar Packaging Awards for Australia & New Zealand. Only winners from the PIDA awards can enter the WorldStar Packaging Awards each year.

Learn about the awards here >>

Relectrify unveils new Australian-designed battery

Relectrify has unveiled its Australian-designed AC1 battery energy storage system (BESS), claiming 20% more lifetime energy and greater efficiency, resilience and cost-effectiveness than conventional systems. The launch is backed by $25 million in new funding from the Australian Renewable Energy Agency (ARENA) to support grid-scale, commercial and industrial deployments. The system uses patented cell-level control technology to optimise performance and generate AC power without a separate inverter. Relectrify previously raised $19 million from investors including Virescent Ventures and NRG Energy.

Policy and regulation – Australia

Labor’s climate policies driving down pollution, says Bowen

Minister for Climate Change and Energy, the Hon Chris Bowen MP, stated in a recent media release that Australia’s emissions fell by 2.2% (9.9 Mt CO₂-e) in the year to June 2025 – the largest annual drop outside COVID‑19. This fall in emissions was driven by record renewable energy generation and Labor Government policies, including the Safeguard Mechanism and support for home batteries. Electricity sector emissions fell 3.3%, with renewables reaching 50% of the national grid, while industrial and stationary energy emissions also declined. Transport emissions rose due to diesel and aviation, though petrol use remains below pre-COVID levels. Overall, emissions are 28.5% below 2005 levels, keeping Australia on track for its 2030 Paris Agreement target.

ASIC enforcement priorities shift for 2026

ASIC has confirmed that greenwashing will not be a formal enforcement priority in 2026, marking a shift after several years of explicit focus. Deputy Chair Sarah Court said the regulator had secured ‘a number of impactful decisions’ and ‘sent a clear message’ that investor promises must be honoured.

The enforcement adjustment coincides with the commencement of mandatory climate-related reporting. However, the regulator stressed it will remain alert to serious misleading or deceptive conduct, citing recent actions, including new proceedings against Fiducian Investment Management Services and significant penalties against Active Super ($10.5m, October 2025). This follows earlier penalties against Vanguard ($12.9m, September 2024) and Mercer ($11.3m, August 2024).

Read the transcript of Deputy Chair Sarah Court’s opening speech at the ASIC Annual Forum >>

NSW: The countdown is on to new rules for FOGO

New Food Organics and Garden Organics (FOGO) rules will be implemented in NSW by the NSW Environment Protection Authority (EPA) from July next year.

The new rules will increase recycling by diverting almost one million tonnes of organic waste from landfill annually. Food waste will be transformed into beneficial products such as compost for agriculture and green spaces while cutting emissions. This is a significant step towards building a circular economy in NSW, where valuable resources are recycled, reused and repurposed.

The EPA has published guidance and is accepting applications for custom exemption from the FOGO mandates.

For advice, resources and an online calculator to work out if or when your business needs to comply, visit the EPA website >>

Victorian economy soars as emissions drop

Victoria’s Greenhouse Gas Emissions Report 2023 shows the state’s economy has grown 57% while emissions have fallen 31% since 2005, meeting its 2025 climate target two years early. Per-person emissions are below the national average, and renewable energy accounted for over 42% of the electricity mix, with electricity-sector emissions down 39%. The government says strong renewables investment has led to lower power prices, more than $7.8 billion in project investment and over 3,000 new jobs.

Read the media release >>

Policy and regulation – international

Australia at COP30

The United Nations’ climate summit, COP30, was held in Belém, Brazil from 10-21 November. The Australian delegation collaborated with Pacific partners to make contributions to global climate outcomes, including the Global Mutirão and Belém Political Package on mitigation, adaptation and climate finance. Australia joined several international climate initiatives, supported renewable energy transitions (especially in the Pacific), and hosted events at the Australian Pavilion. A key outcome was an agreement for Türkiye to host COP31, with Australia leading negotiations and a Pacific-focused pre-COP, reinforcing its commitment to multilateral climate action.

New ‘science-based’ circularity protocol launched for business

At COP30 in Belém, a new Global Circularity Protocol for Business (GCP) was launched to give companies a unified, science-based framework to measure, manage and report their circular economy performance, harmonising metrics and steps across sectors. It aims to help businesses move from linear “take-make-waste” models to circular practices, boosting resource efficiency, cutting waste and supporting climate and sustainability goals. The protocol was developed with broad input from experts and organisations to standardise corporate circularity action and disclosure worldwide.

Changes to reporting policies in New Zealand

New Zealand is reducing mandatory climate reporting, exempting about half of previously obligated entities by raising thresholds and removing some obligations for investment scheme managers. Directors of newly exempt companies face complex choices about whether to continue reporting voluntarily, balancing stakeholder expectations, regulatory trends, costs, and internal risk management. While personal liability for reporting breaches is removed, directors remain accountable for misleading statements. Companies must assess which reporting elements provide value versus cost, considering both internal governance benefits and external stakeholder needs, while staying prepared for potential future regulatory changes.

EU Parliament votes to reduce sustainability reporting requirements

The European Parliament has voted to drastically reduce corporate sustainability obligations, scaling back coverage under the CSRD and CSDDD, removing mandatory climate transition plans, and raising thresholds to cover only the largest companies (1,750 employees/€450 m revenue for CSRD; 5,000 employees/€1.5 billion revenue for CSDDD). Due diligence liability shifts to the national level, and smaller supply chain reporting is limited. Critics warn this undermines Europe’s sustainability agenda, while supporters argue it reduces compliance costs and boosts competitiveness. Parliament now enters negotiations with the EU Council to finalise the laws by year-end.

Net Zero Banking Alliance disbands

The Net-Zero Banking Alliance (NZBA) will cease operations following a vote to wind up the group after a mass exodus of members, driven by U.S. political and antitrust pressure. Founded in 2021, NZBA had led the banking sector’s global decarbonisation efforts. While the alliance will dissolve as a membership organisation, its guidance and implementation resources for climate target setting will remain publicly available for banks. Critics warn the closure reduces accountability on climate commitments, but banks can still use NZBA tools to guide decarbonisation strategies.

US State-level greenhouse gas reporting expands to New York

New York is proposing a mandatory greenhouse gas (GHG) reporting program for large stationary sources and electricity suppliers, aimed at improving climate data transparency and tracking progress toward state emissions targets. California already has an established GHG reporting program covering a wide range of industrial sources, providing data for regulatory compliance and climate policy. Both programs reflect a trend toward state-level climate accountability in the U.S., with New York’s proposal expanding reporting obligations and alignment with broader climate goals, while California’s program demonstrates long-standing implementation, public reporting, and regulatory integration of GHG emissions data.

Member spotlight

Danone now B Corp certified across the globe

AFGC member Danone has officially achieved B Corp certification worldwide, with more than 200 Danone entities now certified in 60+ countries. The milestone marks the culmination of a 10-year journey which began in 2015. In Australia, Danone Oceania was pleased to recertify as a B Corp across its specialised nutrition businesses earlier this year.

Contact

Sarah Collier – Director, Sustainability sarah.collier@afgc.org.au