Climate change - Australian Food & Grocery Council

The long-term future of the food and grocery manufacturing industry is intrinsically linked to land, water and agriculture, which are all exposed to the effects of a changing climate. The science of climate change is clear, as are the risks of inaction to our industry.

The AFGC supports:

strong targets and action on climate change, consistent with the latest science
the national target of net zero carbon emissions by 2050
a national, bipartisan approach by governments to emissions reduction
development of industry aligned Scope 3 emission protocols and factors.

Scope 3 emissions

The AFGC is committed to supporting members in meeting their climate reporting obligations and progressing toward the Net Zero targets set by the Australian Government. We provide tools and guidance to assist members with sustainability reporting, with a focus on practical, business-ready resources.

We recently launched our Scope 3 Emissions Reporting Workbook for members. The Workbook is designed to help members comply with annual sustainability reporting requirements under Section 292A of the Corporations Act. It includes Australian-sourced emissions factors to support the calculation of greenhouse gas emissions associated with purchased goods and services.

We are now directing our focus to collaborating across the food and grocery value chain to reduce the reporting burden for Scope 3 emissions.

We aim to reduce:

reduce duplication
improve the quality and consistency of emissions data
enable businesses to redirect efforts and resources toward emissions reduction activities.

By streamlining climate reporting, this work will support the sector’s contribution to national Net Zero goals while strengthening transparency, accuracy and collaboration across the entire value chain.

Examples of member actions

Many AFGC member companies have made commitments to achieve net zero by 2050 or earlier. Some have set strong interim targets of halving emissions by 2030. Many companies have already made significant investments in reducing their emissions.

Examples:

Mondelēz International invested in large-scale solar facilities at the Suttontown, South Australia, factory where Philadelphia Cream Cheese is made, and the Scoresby, the Victoria factory that makes Pascall, Sour Patch Kids and The Natural Confectionery Co. lollies. Mondelēz has also switched to renewable energy at 3 Australian factories and reduced the carbon footprint of its 5 Australian plants by 80%.

Mars Australia has switched to 100% renewable power for its 6 factories in Asquith, Ballarat, Bathurst, Wacol, Wodonga and Wyong and its 2 sales offices in Melbourne and Sydney. Globally Mars has committed to net zero by 2050 – including Scope 3 emission, which includes its suppliers and agricultural inputs.

Nestlé, which operates 6 manufacturing facilities in Australia producing brands including Nescafe, Milo and Uncle Tobys, has committed globally to halving its emissions by 2030 and achieving net zero by 2050.

The Arnott’s Group, maker of Australian biscuits, has committed to achieving net zero emissions in operations by 2040 and across the value chain (Scope 3) by 2050.

Breakfast cereal and snack company Kellanova signed a 7-year agreement with a solar farm in 2019 to offset all the energy used at its Botany, NSW factory and Australia and New Zealand head offices.

Mars, Kellanova and Manildra Group are working with industry, scientists and grain growers on the Cool Soil Initiative, a project examining how crop management can increase soil carbon and reduce on-farm greenhouse gas emissions.

Watch Sustaining Australia TV for more examples.

AFGC actions

The AFGC is working collectively with our members to reduce emissions through:

reducing food waste
supporting packaging circularity
leading the development of the National Plastics Recycling Scheme, which is now the independent Soft Plastics Stewardship Australia.

The AFGC commits to collaborate with governments on climate change policies and programs. We will support and guide members in their transition to lowering greenhouse emissions.

Find out more on the member portal