Mapping of Australian System against Unilever SACUnilever Sustainable Sourcing – Australian Dairy Industry

1.

August 27th, 2012, Southbank

www.sustainable-living.unilever.com

Why this benchmark?

• To acknowledge the high standard of Australian dairy farming systems

• To assure this high level for Unilever• To reduce future work for Unilever suppliers,

their farmers and Unilever• To get Australian dairy farming systems in Annex

I of the Unilever Scheme rules

How is this benchmark organised?• On-going work since autumn 2011• Dairy Australia (Helen, Rob, Robin and Catherine)

developed first version• First version discussed in May 2012 in Brussels (Helen &

Klaas Jan)• Included benchmark in Unilever Benchmark spread

sheet in July 2012• Further discussion on benchmark in August 2012• Workshop and farm visits will help to finalize the

benchmark• Final benchmark will be evaluated by SSDT team

Unilever

Ultimate goal is to have Australian dairy farming systems accepted as sustainable by Unilever

Certification

• In or out

• Do’s and don’ts

• Independent

• The seal is the story

• System costs

Self Verification

• Measured improvement

• Action plans

• Unilever driven

• Tell your own stories

• Value chain investment

*See latest version of scheme rules

Performance levels per question type

Mandatory : where 100% compliance is

required

Must: 80% of the total must and min. 80% of

each chapter is required

Should: recommended but not required

Metrics: Report on continues improvement

Minimum standard to become recognised as sustainable

Performance per chapter

82 %

53 %

67 %

85 %44 %

100 %

100 %

70 %

89 %

100 %

90 %

Continuous improvement

Agrochemicals and fuels

Soils

Biodiversity

Waste

Energy and Greenhouse gases

Social and human capital

Value chain and local economy

Animal welfare

Click on links for more

Training

WaterTotal performance is

78%

Overall conclusions

• Best farms will be compliant with Sustainable Agricultural Code already

• Risks are the 20% dairy farms that do not participate in industry programs

• Chapters that need improvement:– Soils, Waste, Energy and Biodiversity– Comparable to European results

• First sustainable supply should be possible in 2012– Dependent on way forward (Industry Standard

or individual self-assessment process)

Next steps

• Visit dairy farms to verify and finalize benchmark

• External verification of the benchmark process by SSDT Unilever – Leading to partly or fully recognition of

Australian dairy farming systems• Develop improvement plan with focus on metrics

and non-compliant chapters • Analyse and manage sustainability risks not

covered by the SAC• Support Dairy Australia with developing the

Sustainability Plan