Arnott's Group

Arnott’s provides update on its sustainability agenda

The Arnott’s Group has released its second annual Sustainability Report, and provided an update on its key sustainability achievements and obligations for the planet, its people, and the community.

Over the past 12 months, the Arnott’s Group has created a more accountable and transparent supply chain, committed to renewable energy solutions, widely adopted the Australasian Recycling Label (ARL), and provided a wider choice of food options and more guidance on nutrition to consumers.

George Zoghbi, CEO, Arnott’s Group, said creating a more sustainable future is critical.

“We have a responsibility, across our entire supply chain, from how we source and make our products, to how we connect with the community. Sustainability is at the heart of everything we do as a business, and it’s an imperative we continue to drive progress.”

Arnott’s Group Chief Transformation Officer, Simon Lowden said the business has approached its sustainability agenda this past year with enthusiasm and a desire to continue to do more and do better.

“We have spent the past year taking stock of our processes, measuring our outputs, and working closely with the industry, our customers and our partners on emerging technologies, new materials and collective challenges. We have listened to the repeated calls from consumers worldwide, demanding greater accountability from companies, and we have acted.”

The report comes 12 months after The Arnott’s Group set itself four targets; to grow and source 100 per cent of key ingredients, namely flour, sugar, oil, dairy, and cocoa products, sustainably by 2035. To achieve net zero emissions in operations (scope 1 and 2) by 2040 and across the value chain (scope 3) by 2050. To reduce, reuse, or repurpose Australian and New Zealand (ANZ) plastic packaging by 10 per cent by 2025 and meet Australia’s 2025 National Packaging Targets set by Australian Packaging Covenant Organisation (APCO). And to increase choice, opportunity, and wellbeing by promoting inclusion and belonging, supporting communities, and providing diverse food options and guidance on nutrition.

Some notable achievements to date include the Arnott’s Group securing the commitment of 90 per cent of suppliers of ingredients and packaging to responsible supply chain management in line with the Arnott’s Group Responsible Sourcing Supplier Code.

Implementing an ethical standards framework for suppliers, with 96.3 per cent compliance by ingredient and packaging suppliers.

Successfully developing a new soft wheat variety, created in partnership with Longreach wheat breeders and Allied Pinnacle, that has a better overall yield, greater drought tolerance and resilience against pests. The new variety will be aptly named ‘Scotch’ as a nod to the longstanding partnership between the companies and the role that The Arnott’s Group plays in supporting the soft wheat industry as the largest individual purchaser.

In terms of reaching Net Zero emissions, the Arnott’s Group is implementing plans to install solar power systems across the Arnott’s Group’s bakery sites in Australia by the end of 2022.

Refining waste management practices across manufacturing sites including reducing landfill waste, diversifying recycling options, and implementing better waste infrastructure.

Arnott’s has also adopted the Australasian Recycling Label on 72 per cent of its product portfolio, with a goal to achieve 100 per cent by 2024, one year ahead of the national target.

It is transitioning all point-of-sale displays in Australia to 100 per cent recyclable alternatives. And has committed to transition the entire Arnott’s soft plastic packaging portfolio in ANZ to mono material by the end of 2023, removing nine tonnes of plastic from the environment each yearand improving recyclability.

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