sustainability report 2017 - parmalat professional · 2019. 9. 11. · parmalat australia is a...

Parmalat Australia is a pivotal contributor to the global Parmalat Group, a leader in the production and distribution of foods that are essential for everyday wellness: milk, dairy products and fruit beverages.

SUSTAINABILITY REPORT 2017

SUSTAINABILITY REPORT 2017

3PARMALAT Sustainability Report 2017

We are Parmalat Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Great Brands, Great People, Great Governance . . . . . . . . . . . . . . . . . . . . . 5

Mission and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

CEO Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Sustainability at Parmalat Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Dairy Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Key Sustainability Issues and Opportunities . . . . . . . . . . . . . . . . . . . . . . . .12

Food Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Ingredients Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Milk Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Parmalat Farm Business Environmental Sustainability Program 14

Australian Dairy Industry Sustainability Framework . . . . . . . . . . . .15

Soil and Fertiliser Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Animal Health, Husbandry and Welfare . . . . . . . . . . . . . . . . . . . . . . . .15

Future Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Resources Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Environmental Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Sustainable Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Innovation to Improve Packaging Design . . . . . . . . . . . . . . . . . . . . .16

Packaging Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Use of Energy by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Use of Energy by Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Energy Efficiency Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Water Use and Waste Water Treatment . . . . . . . . . . . . . . . . . . . . . . . .21

Waste Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

National Operations Material Diverted from Landfill in Tonnes, 2016 . . . . . . . . . . . . . . . . . . . . . . . .23

National Operations Waste to Landfill in Tonnes, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Our People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

People Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Engagement Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Diversity and Equal Employment Opportunity . . . . . . . . . . . . . . . .26

Safety and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Leadership and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Targets and Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Safety Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Parmalat Australia in the Community . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Foodbank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

White Ribbon Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

St Vincent’s CEO Sleepout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

The SAM Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Working with our Neighbours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

About this Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Materiality Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Any Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Global Reporting Initiative (GRI) Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

CONTENTS

Harvey Fresh (Harvey)Produces fresh, ESL and UHT milk,

flavoured milk and fruit juices

The company is committed to playing a daily role in the health and well-being of consumers throughout the world, via the provision of nutritious dairy products— milk, cheese, yoghurt and other soft foods and beverages .

In Australia, we are a dairy industry leader, with 15 manufacturing (and distribution) sites, 68 depots and 3 warehouse distribution centres across six states and territories . With headquarters in South Brisbane, Queensland, Parmalat Australia employs more than 2,500 people, producing in excess of 1 Billion litre/kilograms of dairy products every year . Pillar brands such as Pauls, Oak, Ice Break, Tamar Valley Dairy, Vaalia, President and Galbani provide Parmalat Australia with a deep national footprint for growth and prosperity .

WE ARE PARMALAT AUSTRALIAParmalat Australia Pty Ltd (‘Parmalat Australia’) is a wholly owned subsidiary of the listed Italian company Parmalat SpA, which in turn is part of the Lactalis Group, the world’s largest producer of dairy goods.

2,500 EMPLOYEESwith distribution

15 FACTORIES

1,036 SKU’scentres

3 DISTRIBUTION

5 office locations68 DEPOTS

litres / kilograms1 BILLION

Tonnes of product manufactured

4 PARMALAT Sustainability Report 2017

Parmalat Australia is a pivotal contributor to the global Parmalat Group, a leader in the production and distribution of foods that are essential for everyday wellness: milk, dairy products and fruit beverages.


With a strong focus on growth and innovation, we take enormous pride in our brands and in our people . Our employees are the heart and soul of Parmalat Australia and each and every one of them adds to the continued development of our organisation and growing market dominance with our brands . We are committed to providing our customers with the highest level of customer satisfaction and quality of product .

With oversight from Lactalis, our French parent-company, Parmalat Australia’s Executive Team has day-to-day responsibility for the governance of the business . Our Code of Conduct applies to all employees .

RockhamptonProduces milk, flavoured milk, juice, cream

NambourProduces milk, flavoured milk, goats milk, juice, cream

South BrisbaneProduces milk, ESL milk & cream, flavoured milk, yoghurt, desserts, sour cream, custard

Lidcombe (Sydney)Produces white milk, flavoured milk, cream, shakes, sundae

Harvey Juice (Griffith)Produces juice and juice concentrates

EchucaProduces desserts, yoghurts

JindiProduces soft cheeses, camembert, brie, blue

LongwarryProduces fresh & UHT milk, WMP and cream cheese

Tamar Valley (Launceston)Produces yoghurt

DarwinProduces milk, blended milk,

flavoured milk, juice

Harvey Fresh (Harvey)Produces fresh, ESL and UHT milk,

flavoured milk and fruit juices

Clarence Gardens (Adelaide)Produces fresh and ESL milk,

flavoured milk

BendigoProduces milk, ESL milk and cream . flavoured milk, juice,

yoghurt, sour cream, soy milk, soy yoghurt, custard

Rowville (Melbourne)Produces fresh and UHT milk,

flavoured milk

LemnosProduces halloumi, fetta

ricotta, mozzarella

QLD

NSW

VIC

TAS

NT

SA

WA

GREAT BRANDS, GREAT PEOPLE, GREAT GOVERNANCE

MISSION AND VALUES To treat our farmers openly and equitably.

To be socially responsible, active and involved in the

communities we service.

To have Australian consumers recognise the quality and value

of our products, while delivering

nutrition and wellness throughout the Asia

pacific region.

To invest in and grow the Australian dairy industry, while also promoting Australia

as a high quality producer for the Asian

region.


Our Values provide a clear framework for how we go about pursuing our corporate goals. We rely on three key platforms to guide behaviour and thinking:

Parmalat continued to invest strongly in the Australian Dairy industry over the past 12 months, our corporate footprint deepening with the acquisition of businesses in Echuca (Victoria) and Tamar Valley (Tasmania) . As much as this expansion added a level of short term complexity to our business operation, the bigger picture points to improved long term agility and sustainability across Australia and into the Asia Pacific region .

Again in this reporting year we have shown our ability to align our business with the needs/demands of the major customers, with flexibility increasing from site to site and responding to changes in customer taste and brand awareness .

It is our continued belief that food safety and quality standards are non-negotiable . Integrity and transparency are vital to our success . Parmalat Australia’s great brands are instantly recognisable and trusted across Australia, as well as being increasingly visible in key export markets within Asia . The space

our brands occupy in the hearts and minds of consumers reflects more than 80 years of careful management and investment in the dairy industry locally .

As well as our aggressive investment strategy and clear attention to pillar brands, Parmalat Australia has driven sustainability by focusing on being an employer of choice .

The business continues to develop its emerging talent, through targeted leadership programs . This enables us to effectively measure the thinking and behaviour of our leaders while working towards a constructive leadership culture to support people and their performance .

The emphasis placed on the safety and general well-being of our staff has never been stronger . Over the past 12 months, our Lost Time Injury Frequency Rate (LTIFR) and Recordable Injury Frequency Rate (RIFR) were the lowest since 2005 .

Parmalat has also significantly bolstered resources with respect to the environment, employing a National Environment Manager to ensure the compliance of every site,

This reporting year we have shown our ability to align our business with the needs/demands of the major customers, with flexibility increasing from site to site and responding to changes in customer taste and brand awareness.

in line with the environmental licences , laws, regulations and other agreements under which we operate .

We have continued to train and educate our staff on what can be done individually and collectively to reduce impact on the environment – everything from turning off taps and light switches, right through to best practice industrial recycling and the efficient disposal of waste .

In 2015–16, Parmalat renewed our commitment to the Australian Packaging Covenant with a five year packaging and waste reduction plan, and also became active members of the Australian Dairy Industry Sustainability Framework .

We conducted waste audits of our facilities, with our resource management partners, SUEZ, and also successfully upgraded the Lidcombe (NSW) waste water treatment plant to reduce the risk of odour impacting nearby residents .

We continue to work hand in hand with our farmers, in 2015–16 conducting internal waste audits on their behalf .

Parmalat have also undertaken an on-farm pilot program using a number of Australian-developed assessment tools, including DGAS (Dairy Greenhouse gas Abatement Strategies calculator), DairySAT (Dairy Self-Assessment Tool) and Fert$mart, a process of which tests farmers soil to maximize the benefits of promoting healthy soil and grass growth while using the minimum application of fertilizer .

Parmalat Australia’s corporate sustainability program continues to benefit our community . In 2015-16, we maintained our support of Ronald McDonald House, St . Vincent de Paul Society, CEO Sleep out, and Foodbank .

This is our second annual report . It demonstrates in detail how we are progressing in key areas of our sustainability program and we are looking forward to continuing this journey in coming years .

Craig Garvin Chief Executive Officer

Parmalat Oceania

CEO MESSAGE


Our commitment to sustainability extends across every aspect of our business, commencing with the sourcing of raw materials and the welfare of the animals, to our production process, and finishing with the supply and distribution of our products to our many and varied business partners and stakeholders . Along the way, these principles also apply to our people, (their development and safety), the environment, and more broadly, the communities in which we operate .

SUSTAINABILITY AT PARMALAT AUSTRALIAParmalat Australia is an active participant in the food industry, producing dairy products for consumers across Australia and into the Asia-Pacific region.


SUSTAINABILITY Our commitment extends across every aspect of our business

DAIRY SUPPLY CHAIN

CONSUMERMilk and milk products deliver

essential nutrients to children and adults, promoting good health

and well being throughout all stages of life .

PROCESSINGMilk is processed in one of Parmalat’s manufacturing facilities across Australia . At this point other required ingredients are added .

Milk and other dairy products are available at retail outlets across the country .

RETAIL

DISTRIBUTIONParmalat and 3rd party trucks distribute products from 3 major distribution centres and numerous regional milk depots to retail outlets across the country .

ProductionMILK

Dairy cows are housed, fed and milked on dairy farms across

the country .

Production of

The dairy supply chain begins with growing crops on the dairy farm and purchased from other farmers .

FEED for cows

Products are packaged in paper boards and plastic containers which are designed to keep dairy products fresh and clean .

PACKAGING2.

6.Transport

MILK

Milk transported from farm to Parmalat via an insulated tanker truck .

3. 4.

5.

7.

8.

1. Production of FEED for cows2. MILK production3. MILK transport4. PROCESSING5. PACKAGING6. DISTRIBUTION7. RETAIL8. CONSUMER


1.

STAKEHOLDER ENGAGEMENTParmalat Australia understands the importance of communication with and listening to our broad groups of stakeholders. The table to follow lists some of our key stakeholders and the ways in which we engage with them.


LISTEN &COMMUNICATE

Relationships with Stakeholders


Stakeholder Group Mechanisms for Engagement and Communication

Frequency of Engagement Issues Raised

Employees Employee Engagement Survey

LSI Training and Leadership program, Parmalat Australia Intranet, CEO Blog, Safety Committees and Joint Consultative Committees

2 yearly

2 yearly Daily Weekly and as required Monthly

Senior Leadership Future Vision and People Focus

Learning and Development, Career Opportunities, Individual leadership development, Health and Safety

Consumers Advertising, marketing and promotions, labelling, websites and social media, press releases

Consumer Complaints Department (Contact details on website)

Daily and constant Nutritional issues Additives and ingredient issues

Suppliers Regional meetings Quarterly newsletters Best Practice Program Supplier Guidelines Code of Conduct Food Safety Audits

Twice per year 4 times per year 4 times per year Annual Annual Yearly

Price negotiations

Tanker issues

Milk quality

Service

Local communities Letter box drops As required for site related issues such as odour, noise and changes in site conditions

Production and general site communications

Charitable organisations Donations, Employee volunteer activities, Partnerships with Nonprofits ie: St Vincent de Paul Society, Ronald McDonald House – Supply refrigeration and milk and yogurt

Fundraising golf day

White Ribbon

Employee Volunteer Days – weekly

Weekly supplies Yearly

Annual

Financial investment

Employee volunteering

Australia’s campaign to prevent violence against women

Industry Groups Trade association memberships, Industry forums eg . Australian Food and Grocery Council, Dairy Australia, Dairy Food Safety, Association for payroll Specialists (TAPS), AHRI, NAWO

Routine scheduled meetings

Food safety

Supply chain

KEY SUSTAINABILITY ISSUES AND OPPORTUNITIESOur key sustainability issues are those that are critical to our business, our supply chain and to Australian consumers.


QUALITY and Customer satisfaction

are key pillars

The following sections of our Report outline our understanding, commitment and progress in addressing these challenges for shared success . The topics were identified through a review of our business strategy, objectives and targets, legislative requirements, supply chain initiatives and stakeholder feedback as follows:

> Food safety

> Ingredients sourcing

> Milk supply

> Resources management

> People development (including engagement and diversity)

> Safety and health

> Parmalat Australia in the community

FOOD SAFETYQuality and customer satisfaction is a key pillar in our business philosophy . High quality, great tasting products are what we strive to deliver every day .

The secret to our success is a comprehensive quality assurance program, built on sourcing the best quality milk and raw materials, controlling the production process at all stages from mixing to delivery and constant inspection and auditing to ensure everything is operating as it should . Only then can our products meet the stringent quality standards we set in terms of food safety, taste and nutrition .

All of our sites are third party certified to a range of quality programs including ISO22000, HACCP and retailer food manufacturing standards .

Our commitment to quality, is a constant journey of improvement, that we measured through customer satisfaction (CPM) . Our metrics have continued to improve year on year, testament that we are on the right track in our pursuit of product excellence .

INGREDIENTS SOURCINGGreat products begin with locally grown, fresh, natural, sustainable ingredients . Where we can, we source our ingredients from trusted suppliers that share our values and approach to sustainability .

For example we proudly source milk from local Australian farmers, who arguably produce the best milk in the world . Keeping this local not only, helps reduce food miles, but provides valuable support to local rural communities .

Other initiatives include:

> Regular assessments of suppliers and their supply chain, to ensure our ingredients are genuine and produced with the same high ethical standards we apply to our business

> Driving continuous supply chain improvements, to reduce waste, improve efficiencies and minimise our environmental footprint

> Pursuing opportunities to incorporate sustainable and recycled materials in our packaging . For example the introduction of unbleached board in many of milk cartons .

In addition to the work with our suppliers, we have a comprehensive farm management program, where we work with our farmer suppliers to improve animal welfare, land care, improve local waterways . It is a program that benefits, the animals, the farm and the planet .


MILK SUPPLYParmalat Farm Business Environmental Sustainability ProgramThe Farm Business Environmental Sustainability Program is Parmalat’s commitment to working with our milk suppliers to responsibly manage environmental resources . We believe that the health of our water, land and air is vital to the ongoing sustainable growth and profitability of the Australian dairy industry .

Through adoption of innovation and best management practices, our dairy farmers are striving to meet the expectations of our international and domestic customers, as well as the local communities in which they live and operate . Together, we realise there are opportunities to practice and demonstrate improved performance .

We have undertaken an on-farm pilot program using a number of Australian-developed assessment tools, including DGAS (Dairy Greenhouse gas Abatement Strategies calculator), DairySAT (Dairy Self-Assessment Tool) and Fert$mart . Parmalat engaged ICD Project Services to deliver this pilot program .

Two farms in New South Wales participated in this pilot program, which covered:

> A profile of the farm

> A summary of the farm’s natural assets

> A farm SWOT analysis

> An assessment of the farm’s baseline activities and performance, in relation to the Australian Dairy Industry Sustainability Framework targets . This included objectives for each supplier to achieve by 2020, including indicator metrics to track annual performance progress

> An analysis of the value to the farm operation for each of the identified actions .

This pilot program developed the template and format for Parmalat’s on-farm environmental sustainability planning and reporting . This format can now be rolled out to additional farms, with performance measured against the objectives and timeframes .


Working with our MILK SUPPLIERS

To responsibly manage environmental resources


Australian Dairy Industry Sustainability FrameworkParmalat is a member of the Steering Committee for the Australian Dairy Industry Sustainability Framework, which is led by the Australian Dairy Industry Council and supported by Dairy Australia . Established in 2012, this Framework helps to guide improvements against 11 targets and 41 performance measures . The Framework was developed in consultation with industry representatives and other stakeholders, including customers, retailers, government, regulators, NRM groups and leading interest groups .

Parmalat’s involvement in the Steering Committee ensures that we are actively participating in the whole-of-industry commitment to increasing prosperity for the industry and communities, caring for people and animals, and minimising our environmental footprint .

Parmalat will participate in a review of the Framework in 2016, to ensure our industry remains current, relevant and accountable in the context of changing global and domestic conditions and expectations . This review will take into consideration a broad range of emerging issues, stakeholder views, industry priorities, political agendas and global trends .

Soil and Fertiliser ManagementParmalat has Milk Supply team members in all States trained in the use of Dairy Australia’s Fert$mart program . Fert$mart encompasses the dairy industry’s national nutrient management guidelines, developed to improve the efficiency and profitability of fertiliser use, and to improve soil health on Australian dairy farms . Our team members use their training to roll out better management practices on our suppliers’ farms .

Many of our farmers are now finding that they can produce additional feed at no extra cost after improving their soil and fertiliser management, as Fert$mart helps farmers to use fertiliser as a strategic tool to boost feed when it’s most needed on the farm . The Fert$mart program involves regular soil testing, which aids farmers and Parmalat in understanding the balance of nutrients in our farming systems .

Animal Health, Husbandry and WelfareParmalat is a member of the Dairy Moving Forward Animal Husbandry Steering Group as the Australian Dairy Products Federation representative (the ADPF is the peak policy body for Australian dairy processors) . This group includes representation from farmers, Dairy Australia, State Departments of Primary Industries, Dairy NZ, the National Centre for Dairy Education, the RSPCA,

Australian Cattle Veterinarians (a special interest group of the Australian Veterinary Association), and animal welfare researchers . The group is charged with guiding coordinated and focused investment in research, development, extension and training activities, ensuring:

> Sustainable and continuous improvements in animal welfare outcomes on-farm

> Recommended animal husbandry practices to improve animal welfare are underpinned by science

> Animal welfare performance of the industry is benchmarked and monitored using scientifically validated measures of animal welfare

> Consumer and market confidence in the Australian dairy industry and Australian dairy products is maintained and changing community attitudes and expectations are addressed .

All farms supplying milk to Parmalat are made aware of Parmalat’s ‘Healthy Animals Policy’ via the Milk Supplier Handbook and conversations with Milk Supply Field Officers . The Milk Supplier Handbook also outlines the dairy industry’s priority areas for animal welfare, the animal welfare regulations for cattle and land transport of livestock, and the management requirements for Bovine Johne’s Disease and Enzootic Bovine Leucosis .

Our commitment to Australian milk supply has direct and indirect economic benefits to rural communities . Parmalat Australia currently has over 650 dairy suppliers across the nation, from whom we purchase almost 1 billion litres of milk annually . While our milk pricing structure is subject to market forces, the average Parmalat Australia farm supports 3 .2 full time equivalent (FTE) roles .

Future PlanningParmalat has a position on the Lead & Design Team with the Dairy Australia “Stepping Up, Stepping Back” program, which looks at ways to support and assist people who are considering either increasing or reducing their level of active farm involvement .

This involves a snapshot survey of their personal situation (e .g . goals, financial needs, skills and experience, and health and energy levels), their assets, and support network .

Parmalat actively supports continuous development of programs which seek to better understand and address our suppliers goals and needs .


RESOURCES MANAGEMENTWe aim to use material resources efficiently to reduce our environmental impact while reducing our costs .

Environmental Indicators

Energy and Greenhouse GasScope 1 (Electricity and gas) and associated Scope 2 greenhouse gas generation (stationary and mobile equipment) has increased, however this is below or in line with an increase in production capacity and saleable product .

As part of Australian Industry, Parmalat and other dairy manufacturers are on-track to cut greenhouse gas (GHG) emissions by 30% by 2020 .

Overall dairy manufacturers reduced GHG emission intensity by 8 .2% during 2015/16, taking the total reduction since 2010/2011 to 21 .7% . A reduction of 30% by 2020 is the target for the sector .

Waste ManagementSimilarly with waste, we are recycling more, however we have only had a slight increase in waste to landfill compared to total production .

Water Management

Water use has decreased slightly against each litre produced . Parmalat is investigating and has a continued focus on water use and losses within all out production facilities .

Sustainable PackagingParmalat Australia has adopted the Australian Packaging Covenant (APC) guidelines and has built a successful strategy to optimise consumer packaging . The design of our existing and new packaging makes better use of resources and reduces environmental impact without compromising product quality and safety .

Parmalat Australia has recommitted its signatory obligations as part of the APC for the next 5 years . Over this period, Parmalat Australia has improved its performance by working collaboratively with suppliers and stakeholders to deliver sustainable solutions to meet customer expectations . Amongst other criteria, Parmalat Australia highly regards suppliers who can demonstrate their own involvement with the APC .

Innovation to Improve Packaging DesignWe are constantly looking at new ways to reduce our environmental impact through packaging design and modification .

Our Research and Development team have assessed new and existing packaging using the Sustainable Packaging Guidelines (SPG) . This process is now a standard process for new and redesigned packaging .

Using these guidelines we have been able to improve our packing in the following areas in 2015:

> Light weighting of packaging (bottle caps, milk cartons and boxes)

> Packaging reduction by moving to more efficient pack formats such as one step opening bottles and;

> The use of recycled materials such as eHDPE resin in the manufacturing of our milk bottles .

CONSUMER PACKAGING

Better use of resources and reduced environmental impact


Packaging Projects

Project Light WeightProject Light Weight targeted improvements to design and efficiency of resin usage in the creation of HDPE blow moulded bottles for the Ice Break and Breaka line . This project focused on optimising existing technology to deliver significant reductions in resource consumption and also deliver cost savings and efficiencies to the business .

Results from this project for the 2015-2016 financial year has seen reductions of package weights on average between 1 .9-2 .8 grams . This reduction equates to approximately 95 .63 tonnes of blown plastic savings which is equivalent to producing another 3 .2 million bottles .

Parmalat received a ‘Highly Commended Award’ at the Queensland Sustainability Awards . The project was so successful that it will continue to be refined and implemented Australia wide .

Project LewisProject Lewis involved light weighting and optimising the clear plastic Farmhouse Gold bottle . We were able reduce the 750 ml bottle from 50 gram to 35 grams and 1 .5 litre bottle from 70 grams to 60 grams . The total project has saved approximately 1500 tonnes of plastic .

Project CorroProject Corro focused on the re-design of all our cardboard cartons to include greater recycled content and reduce the amount of cardboard used to creation of each box, while maintaining its current strength .

Today most of our plain cartons are made from 100% recycled material .

The total project has saved approximately 400 tonnes of cardboard .

Project MercedesProject Mercedes involved reviewing our current small plastic tub (500 grams and less) suppliers and moving the contract to local suppliers . This has reduced the lengthy supply chain and in turn reduced greenhouse gases and other impacts from

long transport legs .

Use of Energy by SourceThis graph details the percentage of energy in use by source within this organisation .

Electricity (kWh) (53 .50%)

Natural Gas (GJ) (45 .00%)

LPG Stationery (L) (1 .48%)

53.50 Electricity (kWh) 45.00 Natural Gas (GJ) 1.48 LPG Stationery (L)

PERCENTAGE %

Use of Energy by LocationThis graph details the percentage of energy used by location within this organisation .

Factory – Bendigo (11 .00%)

22.50 Factory – South Brisbane 15.80 Factory – Lidcombe 13.30 Factory – Rowville 11.30 Factory – Longwarry 11.00 Factory – Bendigo 8.27 Factory – HF Griffith 4.97 Factory – Nambour 3.38 Factory – Clarence Gardens 2.18 Factory – Rockhampton 1.92 Distribution Centre – Richlands 5.43 Other

PERCENTAGE %

Factory – HF Griffith (8 .27%)

Factory – Nambour (4 .97%)

Factory – Clarence Gardens (3 .38%)

Factory – Rockhampton (2 .18%)

Distribution Centre – Richlands (1 .92%)

Other (5 .43%)

Factory – Longwarry (11 .30%)

Factory – Rowville (13 .30%)

Factory – Lidcombe (15 .80%)

Factory – South Brisbane (22 .50%)


Targeting energy efficiencies helps us achieve our environmental objectives and to improve the economic sustainability of our business through energy cost reductions . We have undertaken several activities to ensure we continue to focus on opportunities for energy reduction . They include:

> Site energy audits

> Collaborating with our parent company to share opportunities on energy efficiencies .

In the last year we have carried out energy audits at Echuca, Rowville and Lidcombe .

The projects are varied and range from automation of refrigeration equipment, waste heat recovery and insulation, variable speed drive on compressors and pumps, lighting fittings upgrade, solar panels installation, along with good maintenance and training to apply our energy saving practices and behaviours .

Sites are also measured and report individually on intensity ratios for water, natural gas and electricity per 1000 Litres of production .

Table 3 Energy Intensity FY2015 and FY2016: Manufacturing Group

Data Type Year Intensity (Energy Type/1L)

Year Intensity (Energy Type/1L)

Intensity Variance 2015 – 2016

Electricity (kWh) 2015 0 .008876 2016 0 .09073 +2 .2

Natural Gas (GJ) 2015 0 .000241 2016 0 .00148 +6 .96

Table 4 National Operations Scope 1 and 2 Emission Sources

Emission Type

Data Source CO2-e (t) 2015

CO2-e (t) 2016

CO2-e (t) % Change

Scope 1 + Scope 2

NGERS 268,064 262,087 -5

Practical methods used to reduce our energy consumption include:

> Ensuring proper maintenance of equipment to improve efficiency of operation;

> Environmental awareness training . This includes ‘what you can do’ topics around energy and efficiency and;

> Lighting surveys and understanding the capabilities of LED technologies in manufacturing and warehousing areas .


REDUCEDEnergy Use

Saves energy costs

Energy Efficiency ProjectsProjects completed to reduce energy use per unit of fresh milk product produced included:

> Mass balance studies

> Increasing metering of utilities

> Leak detection on blow moulding

> Chilled water pre cooling

> Valve insulation

> Condensation detection

> Condensate recovery

> Replacing inefficient dosing equipment and

> Optimisation of conveyors .

Our intent is that if there is a project that can reduce our energy use we will pick these up within the normal business model for investment . Administrative guidance is determined by state and federal energy efficiency targets . All projects were voluntary and looked at as going above and beyond normal replacement or maintenance . In all projects the difference is quantified, and the efficiency recorded .

Projects

Lidcombe Energy Efficient Lighting Lidcombe lighting used 1624 MWh PA, representing 9 .5% of the total annual bill and costing $230,000 PA . Following a site energy audit it was decided that we would replace current light fittings with a new lighting design with more energy efficient units . The total project cost was $268,000 .

The outcome of this project has reduced our overall energy by 660MWh and saving $105,000 in energy costs for the site .

Nambour Cold Store Forklift Access Door Curtain The Nambour Cool Room has a forklift access door that is opened for at least 5 minutes in every hour, allowing the chilled air to escape and therefore increasing the energy usage, wet floors, condensate build up on roof and costs required to cool the room .

The project involved the installation of a plastic curtain to reduce the volume of cool air escaping when the forklifts entered and exited the room . The result was a 16 .5 kW hr energy reduction and $5,000 .00 in savings .

Bendigo Replacement of Air Agitation with Mechanical Agitation3 silos in Bendigo relied on compressed air agitation . This process is quite energy intensive .

The plan was to replace the current air agitation with mechanical agitation . Mechanical agitators were mounted to the side of all 3 of the silos .

The overall project saved 40 kW in total energy usage and saved $17,000 .

Chemical Use ReductionWe monitor our chemical usage very closely at all our sites as they are expensive, and may have a detrimental impact on health, safety, and the environment . Chemicals, however, play a critical role in equipment maintenance and food safety in our finished product .

To get the balance right, Parmalat Australia is working with its suppliers to rationalise the number and usage of all its chemicals . In 2016 we commenced our Dangerous Goods auditing schedule that identified storage of chemicals that where no longer used in production, and some practices of storage incompatibility .



ZEROLOSSES

Water is a precious resource

Water Use and Waste Water Treatment

Water ConsumptionThe dairy industry consumes large quantities of water to process dairy products safely . Parmalat Australia understands that water is a precious resource that requires constant management .

Table 5 Title of table to go here please

Data Type Year Intensity (KPI value KPI/1L)

Year Intensity (KPI value KPI/1L

Intensity Variance 2015 – 2016 (%)

Water [m3] 2015 2 .209 2016 2 .208 -0 .05

Wastewater TreatmentDisposing of waste water in a responsible manner is important to Parmalat Australia . We recognise that waste water from a dairy processing plant can be detrimental to the environment .

The manufacturing sites reduced their wastes to sewer by reducing milk losses in tank wash outs, leaks in transfer lines, spills on the filling line, optimising production runs and equipment cleaning .

Ultimately, all sites strive to have zero losses .

Project: LidcombeIn 2015, Parmalat Australia installed a 500,000 litre balance tank with biological treatment at our Lidcombe site . The primary reason was to reduce COD, BOD and reduce the risk of odour that could affect nearby residents .


ABOVE New plastics compactor and paper and cardboard compactor, Clarence Gardens, South Australia

Waste DisposalReducing waste to landfill has been a focus for Parmalat Australia for many years . The ongoing waste recovery program has been sustained through investment in compactors, recycling containers and employee training .

Our recycling rate has increased in cardboard, paper, plastic and liquid wastes .

Table 2 Overall National Waste Management Changes

Solid Waste Material Destination

Litres of equivalent per kg in 2015

Litres of milk equivalent per kg in 2016

Annualised 2015–2016 Change (%)

Recycling 0 .021 0 .020 - 4 .8

Landfill 0 .020 0 .013 - 35

Note: Includes recent acquisitions Tamar, Echuca, and Longwarry .

Parmalat has segregated line items for 32 different recyclable items including, aluminium, batteries, electronic waste, organics, ink cartridges, stainless steel and timbers (pallets) .

Less than 1% of Parmalat Australia’s total waste is classified and disposed of as hazardous waste .

The average diversion from landfill to recycling rate for 2016 was 88%, a steady improvement over the year to 94% by December .

Parmalat has been working with the national resource contractor Suez to further improve these results over the next contract period .

South Australia’s Clarence Gardens site is proudly landfill free .

National Operations Material Diverted from Landfill in Tonnes, 2016

Liquid Waste (8,804 .376%)

Metal Recycling (139 .85%)

Organics Liquid (4,478 .88%)

Paper and Cardboard (731 .44%)

Plastic (2,323 .428%)

Product Destruction Material (1,820 .336%)

Grease Trap Waste (414 .003%)

General Waste AWT (112 .661%)

Comingal Containers (99 .750%)

Cardboard Recycling (458 .917%)

Timber Recycling (35 .04%)

0.022 Batteries 458.917 Cardboard Recycling 99.750 Comingle Containers 14.365 Confidential Paper 0.773 Electronic Waste 0.261 Fluoro Recycling 112.661 General Waste AWT 414.003 Grease Trap Waste 0.464 Ink Cartridge 8,804.376 Liquid Waste 8.748 Medical Waste 139.85 Metal Recycling 3.5 Oil Waste 0.4 Oily Water 4,478.88 Organics Liquid 731.44 Paper and Cardboard 2,323.428 Plastic 1,820.336 Product Destruction Material 0.74 Stainless Steel 35.04 Timber Recycling

PERCENTAGE % *

National Operations Waste to Landfill in Tonnes, 2016

General Waste Dry (1,920 .615%)

Hazardous Waste Liquid (154 .000%)

Security Burial Material (23 .580%)

4.060 Contaminated Soil 1,920.615 General Waste Dry 3.960 General Waste Wet 154.000 Hazardous Waste – Liquid 0.237 Prescribed 4.257 Sanitary Waste 23.580 Security Burial Material

PERCENTAGE % *

Energy Efficiency and Greenhouse Gas EmissionsThe dairy industry is a large consumer of electricity and natural gas, both emitting carbon dioxide to the atmosphere . Parmalat Australia uses natural gas as a heat source to pasteurise milk and to ensure a safe product for our customers . Electricity is used for the refrigeration system to provide a chilled and preserved milk product .


* NOTE – Streams: Batteries, Confidential Paper, Electronic Waste, Fluoro Recycling, Ink

Cartridge, Medical Waste, Oil Waste, Oily Water and Stainless Steel are not visible on the above pie chart, due to lower percentage (%) rates as

listed right.

* NOTE – Streams: Contaminated Soil, General Waste Wet, Prescribed and Sanitary Waste are not visible on the pie chart at left, due to lower

percentage (%) rates as listed below.

OUR PEOPLEAt Parmalat we equally focus on our business results while having the right people... in the right roles, supported by the right culture, in order for the organisation to succeed into the future!


At Parmalat Australia we truly believe that a sustainable business starts with a balanced scorecard . Not only do we focus on our business results, we equally focus on having the right people, in the right roles, supported by the right culture, in order for the organisation to succeed into the future . We are proud of the diversity of our workforce, embracing a wide spectrum cultures, backgrounds, languages and ages – with all employees enjoying opportunities for personal or professional growth within their roles .

Parmalat Australia’s Human Resources policies and practices are based on the fundamental principle of fairness . All our employment, transfer, promotion and training decisions are made on a base of merit . No forced or child labour is or has ever been an acceptable form of employment at Parmalat Australia . Each manufacturing site is governed by one or more Enterprise Agreements, negotiated in good faith with all eligible parties .

These instruments provide competitive benefits and conditions that exceed modern award standards and serve to be a valuable tool for attraction and retention of our team members . Around 61% of our employees were covered by collective bargaining agreements during the reporting period .

Table 6 & 7 Total employees by employment type and gender (Parmalat Australia & Lactalis employees working

at Parmalat Australia Victorian sites)

Permanent

Permanent female 437

Permanent male 1,379

Permanent total 1,816

Temporary

Temporary female 51

Temporary male 194

Temporary total 245

Table 8 & 9 Total workforce by employees and supervised workers, by gender (Parmalat Australia & Lactalis employees working

at Parmalat Australia Victorian sites)

Salaried employees

Salaried female 84

Salaried male 212

Salaried Total 296

Supervised workers

Supervised female 404

Supervised male 1,361

Supervised Total 1,765

The RIGHT PEOPLE

In the right roles, supported by the right culture ...

People Development Parmalat uses a comprehensive performance and talent management program called PLUS . This system has been developed and implemented on a global scale to allow a consistent platform to fairly evaluate the individual performance of our employees that transcends culture and country . This tool provides powerful visibility of the company’s talent potential and career aspirations allowing for effective workforce planning and mobilisation of skills around the globe . PLUS also incorporates our values by measuring each employee against 10 core competencies . This integration provides a common set of behaviours for which all team members can demonstrate in their roles . As an outcome of this process, employees can build their own development plans to help them manage their own careers . All salaried employees (296 in 2015) are appraised using PLUS every year, with mid-year reviews so leaders and team members can monitor progress together .

Table 10 Breakdown of salaried employees receiving regular performance appraisals, by gender and employee category

Male Female

Senior Leadership Team 38 12

Managers and Supervisors 171 71

Engagement MattersParmalat Australia strongly believes that engaged employees are key enablers of our Strategic Plan . Not only do we live the concept of employee engagement through our values, we also measure the level of engagement of our workforce at least every 2 years . We commenced this process in 2010, and since then have grown our total company engagement score from 47% to 57% in 2016 . This score includes also our newly acquired and integrated businesses .

Employee engagement is not only measured but feedback is collected on where we can improve and targeted action plans are deployed across the company . Leaders and employees are measured on their plan attainment as part of the PLUS program . This approach of aligning measurement with improvement action has provided us with our impressive year on year growth . We will continue to focus on incremental improvement as we work towards a ’best employer’ category .


100%

57%45%

30%

0%

High Performance Aon Hewitt Best Employer RangeDestructive Range

Serious Range

Parmalat 2010 47%

Parmalat 2017 57%

Indifferent Range

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITYFor decades, Parmalat Australia has successfully developed, implemented and trained all employees in our ’Let’s All Be Fair’ program.


LETS ALL BE FAIR

Ethical, safe and fair workplace


Diversity and Equal Employment OpportunityWe value diversity and believe it is essential to business success .

Surrounding ourselves with people from a variety of cultural and social backgrounds gives us access to a greater range of perspectives and ideas . This diversity enables us to:

> Understand our customers better and provide them with superior service

> Innovate faster and stay ahead of our competitors

> Foster a productive and fulfilling workplace .

For decades, Parmalat Australia has successfully developed, implemented and trained all employees in our ‘Let’s All Be Fair’ program . This program is an integration of policies promoting an ethical, safe and fair workplace, free from all forms of discrimination and harassment . Reinforced by our “code of conduct” this program provides the standards of behaviour we hold each other to .

In 2014 we launched Women in Parmalat; an initiative chaired by General Manager, Australia, and driven by a cross functional committee . Parmalat Australia, like many manufacturing companies has a male dominated workforce . WIP has a vision of empowering the women in Parmalat Australia to reach their maximum potential, encouraging them through leadership, information sharing, education and mentoring . The program aims to create a framework of professional development, career-broadening opportunities, engagement and work-life balance .

Parmalat Australia also supports employees and their families through its parental leave program . Of 51 employees to go on Parental Leave (both male and female), 49 have resumed employment, while 2 employees choose not to return .

Leadership and CultureWe have developed a strong safety culture with a vision of zero injuries and zero environmental harm .

We believe the key to the development of our strong safety culture is great leadership .

Our leaders believe that:

> Our people are our most important asset

> Working safely is a condition of employment

> Safety is a personal responsibility

> Engaging our employees in the safety journey is the key to great safety

> Safety and environmental performance is a key business objective and each leader has personal safety KPI’s .

To assist us with this process we have a regional safety team working with their local sites on national and local SHE initiatives . Every employee of Parmalat Australia is also represented at a local level by safety committees . This includes our national sales team .

In 2015 we developed and launched a new behavioural safety initiative called MYSELF (My Safety, Environment, Life and Family) . This program is a whole of life program that focuses on the human factors in safety . The program helps our employees, using simple and transferable skills, to recognise and modify existing habits/behaviours to safer ones to prevent incidents either at work, home or play .

We will be progressively rolling this out to all sites over the next 3 years .

Targets and ResultsParmalat Australia has set quite aggressive proactive safety targets for its leaders . As a result our lost time injury frequency rate (LTIFR) and our total recordable injury frequency rate (RIFR) have decreased significantly . We had an overall 10% decrease RIFR in 2016 .

Lost Time Injury Frequency Rate (LTIFR) and Recordable Injury Frequency Rate (RIFR) are the main industry measures we use to track our safety performance . The LTIFR and RIFR represents the number of lost time injuries and recordable injuries (respectfully) for every one million hours worked over a 12-month period .

Although we cannot measure all indirect costs associated with injuries (i .e . moral, motivation and business interruption, etc .), the direct impact on our worker’s compensation premium from 2013/2014 at 2 .45% of total payroll to 2016/2017 at 1 .20% of total payroll .


SAFETY AND HEALTH

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

10

20

30

40

50

60

70

80

RIFR LTIFR

39 .00

56 .00 63 .00

70 .00

39 .00

43 .50

35 .00

24 .420 .6

14 .611 .20 9 .99

4 .113 .24 .8

6 .5

8 .513 .511 .59 .510

2622

13

Safety PerformanceLost Time Injury Frequency Rate (LTIFR) and Recordable Injury Frequency Rate (RIFR)

SAFETYCULTURE

ZERO Injuries & ZERO Environmental Harm


PARMALAT AUSTRALIA IN THE COMMUNITY Corporate Social Responsibility is a critical part of Parmalat Australia’s People and Culture Strategy . We are proud to be official partners for Foodbank, Ronald McDonald House, Saint Vincent de Paul charities such as the CEO Sleep out and now White Ribbon . Our employees also have the opportunity to take one day off a year to be involved in such activities as volunteering to the charitable organisations, coaching sports teams, providing time and resources to pet rescue groups and other initiatives associated with contributing to the community .

FoodbankOver the course of the calendar year, Parmalat donated 1 .25 million kg worth of product, which equated to 2 .25 million meals . But perhaps the most astonishing figure was the “social return”, which Foodbank calculated at $28 .7 million .

“Social return” points to the multiplier effect of fresh milk (and other nutritional foods) being provided to members of the community who otherwise, would go without . The health implications (physical, and in turn, emotional and social) are

enormous . Good nutrition in the community relieves pressure on the public health and welfare services .

For the first time this year, our support extended into the Northern Territory, with the donation of 20,000 litres of fresh milk in 2016, significantly assisting the local Darwin Foodbank team .

As a business, we can all feel justifiably proud of the role we play in supporting Foodbank’s profound impact in the community .

White Ribbon AustraliaParmalat is proud to announce that it is participating in the White Ribbon Workplace Accreditation program . The 16 month accreditation program will provide a structured framework to enable us to review and enhance our HR policies, procedures and training on what it means to work in a safe and respectful workplace .

White Ribbon is Australia’s only national male led campaign which recognises the positive role that men play in putting an end to men’s violence against women . It fosters and encourages male leadership in the prevention of violence against women, based on the on the understanding that most men are not violent .

Parmalat acknowledges the need for raising awareness in all workplaces of this very important issue .

November 25th is National White Ribbon Day and all Parmalat sites held events to create awareness and provide opportunities for fundraising . We raised over $10,000 on the day . Since that time many groups have organised local fundraisers such as breakfasts and morning teas .

St Vincent’s CEO SleepoutSt Vincent’s CEO Sleepout was held Nationally on June 23rd, 2016 . This is an annual fundraiser held to raise vital funds that help St Vincent’s to provide crucial assistance to people experiencing homelessness, with the aim of breaking the cycle of homelessness permanently, for as many people as possible .

Three of our employees participated in this event in Melbourne and collectively raised $5,677 .

The SAM ProjectScott and Florence were farmers, who have sold all their material possessions and have committed to travel rural Australia with their mobile coffee machine to start conversations, and provide support and connection opportunities for Aussies battling mental illness . Parmalat have jumped on board as their milk sponsor for all their coffee stops ! We have currently supplied approximately 1,500 litres of milk .

WORKING WITH OUR NEIGHBOURSOur manufacturing sites operate in communities across Australia. We aim to maintain a great relationship with our local neighbours.


Our manufacturing sites operate in communities across Australia . We aim to maintain a great relationship with our local neighbours . From time to time, our neighbours raise concerns such as odour from our sites . We work with local regulators and our community neighbours to understand and respond to concerns as they arise .

Complaints and internal environmental issues are recorded in our corrective management system MYOSH .

Internal environmental issues in 2015 and 2016 varied from small issues such as:

> Red back spider sighted

> Very poor vision from heavy rain

> Earthquake recorded shaking walls .

Serious internal corrective actions included:

> Chemicals stored outside of bunded areas

> Leaking pipes losing milk

> Blocked drains with the potential to contaminate storm water .

Table 11 Number of environmental incidents recorded:

Year Total Raised Environmental

Corrective Actions

External Complaints

2015 39 4

2016 37 4

One external complaint in 2016 resulted in action from the local regulator . A fine for potential contamination of the local storm water drainage pipes and receiving waters at the South Brisbane site was paid by Parmalat . The fine was AU$8000 .

The remaining external complaints were recorded in Darwin, South Brisbane and Clarence Gardens . These are noise complaints and have been actioned and closed out .

RESPOND to CONCERNS

Working with local regulators and our community neighbours

This is Parmalat Australia’s 2017 Sustainability report . It aims to address some of the major challenges that the food and beverage industry is facing . As Australia’s Dairy Industry leader, we recognise that it is important that Parmalat Australia plays a role in raising awareness about key sustainability issues .

The Report provides an overview of Parmalat Australia’s key sustainability actions and performance for the period January to December 2016 . The Report has been prepared ‘In Accordance’ with the Global Reporting Initiative’s (GRI) G4 Guidelines at a Core level . The Report has not been externally assured . We intend to continue to report on an annual basis .

Materiality AssessmentA review of material issues has been undertaken to inform the development of the framework of this report . This included reviews of:

> Direct financial impacts (e .g . Risk register)

> Policy commitments

> Peers and their positions on issues (e .g . Dairy Australia Sustainability Committee)

> Societal norms and expectations (e .g . Laws, regulations, guidelines, standards, and voluntary agreements)

> Stakeholder concerns (internal, industry and external) .

In preparing the 2016–2017 report a limited review of material issues was tested to ensure currency and relevance .

A more comprehensive refresh of the material issues will be undertaken in the 2017-2018 report to support the ongoing evolution of the framework .

Any Questions We appreciate feedback and are happy to answer questions about this Report or our approach to sustainability .

Please contact us as follows:


ABOUT THIS REPORT

1800 676 961

SustainabilityManager@parmalat .com .au

35 Boundary Street, South Brisbane, QLD 4101

GLOBAL REPORTING INITIATIVE (GRI) INDEX


Whole-of-IndustryIncreased prosperity

for industry andcommunity

GENERAL STANDARD DISCLOSURESASPECT GRI REFERENCE REFERENCE

Strategy and Analysis

G4-1 CEO Message 7

Organisational Profile

G4-3, G4-4, G4-5, G4-6, G4-7, G4-8 We are Parmalat Australia 4–6

G4-9 We are Parmalat Australia 4–6

Information on Parmalat Australia’s financial and sales performance is not included in this Report . Further information on Parmalat’s international operations are available here: http://www .parmalat .com/en/investor_relations/financial_reports/annual_reports/ Read about the organisation’s employees and operations in We are Parmalat Australia .

G4-10 Key Sustainability Issues and Opportunities

Our People 24–30

We are committed to fairness in the employment of labor . 61% of our employees are covered by Employment Bargaining Agreements (EBA’s) .

People development, engagement and diversity are important pillars of the company/employee relationship .


Our People 24–30

2015–2016 have been focus years for the following topics: food safety, ingredients sourcing, milk supply, resources management people development (including engagement and diversity), safety, health and Parmalat Australia in the community .

G4-12 Sustainability at Parmalat Australia 8

G4-13 CEO Message 7

G4-14 Sustainability at Parmalat Australia 8

Parmalat Australia manages current and emerging sustainability issues through their standard business practices . Sustainability-related risks are incorporated into the enterprise risk management framework .


Food Safety, Ingredients Sourcing, Milk Supply 12, 13

G4-16 Stakeholder Engagement 10, 11


Identified Material Aspects and Boundaries

G4-17 We are Parmalat Australia 4–6

Information on Parmalat Australia’s financial and sales performance is not included in this Report . Further information on Parmalat’s international operations are available here: http://www .parmalat .com/en/investor_relations/financial_reports/annual_reports/ .

G4-18, G4-19 Key Sustainability Issues and Opportunities 12–30

G4-20 Key Sustainability Issues and Opportunities 12–30

Stakeholder Engagement 10, 11

Parmalat Australia’s material aspects are generally material throughout the organisation . Read more in Key Sustainability Issues and Opportunities and Stakeholder Engagement .

G4-21 Key Sustainability Issues and Opportunities 12–30

Stakeholder Engagement 10, 11

Parmalat Australia’s material aspects are relevant to external stakeholders as follows: Food Safety (Consumers, Industry Groups, Regulators), Ingredients Sourcing (Consumers, Suppliers, Industry Associations), Milk Supply (Consumers, Suppliers, Industry Associations), Resources Management (Employees, Suppliers, Industry Groups), People Development (Employees, Local communities), Safety and Health (Employees, Local communities), Parmalat in the Community (Employees, Local communities, Charitable Organisations, Consumers) . Read more in Key Sustainability Issues and Opportunities and Stakeholder Engagement .

G4-22, G4-23 Not applicable .

Stakeholder Engagement

G4-24, G4-25, G4-26, G4-27 Stakeholder Engagement 10, 11

Report Profile

G4-28, G4-29, G4-30, G4-31, G4-32, G4-33

About this Report 31

Governance

G4-34 We are Parmalat Australia

Great Brands, Great People, Great Governance 4–6

Ethics and Integrity

G4-56 We are Parmalat Australia

Great Brands, Great People, Great Governance 5


SPECIFIC STANDARD DISCLOSURESASPECT GRI REFERENCE REFERENCE

ECONOMIC

Indirect Economic Impacts

G4-DMA, G4-EC8 Key Sustainability Issues and Opportunities

Milk Supply 13

ENVIRONMENTAL

Materials

G4-DMA Key Sustainability Issues and Opportunities

Milk Supply and Resource Management 13, 14, 15, 16, 17

G4-EN2 Key Sustainability Issues and Opportunities

Waste Disposal – Recycling . 22

Energy

G4-DMA, G4-EN3 Key Sustainability Issues and Opportunities

Waste Disposal – Energy efficiency and greenhouse gas emissions . 18, 19, 20

Water


Waste Disposal – Water use and waste water treatment . 21

Emissions

G4-DMA, G4-EN15, G4-EN16 Key Sustainability Issues and Opportunities

Waste Disposal – Energy efficiency and greenhouse gas emissions . 18, 19, 20

Effluents and Waste


Waste Disposal 22, 23

Supplier Environmental Assessment


Milk Supply 13

Environmental Grievance Mechanisms

G4-DMA, G4-EN34 Stakeholder Engagement Working with Our Neighbours 30


SOCIAL

Labour Practices and Decent Work

Employment

G4-DMA, G4-LA3 Key Sustainability Issues and Opportunities

Our People 24–30 Read more about our 2015 performance in Diversity and Equal Employment Opportunity .

Occupational Health and Safety


Safety and Health 28

G4-LA6 Key Sustainability Issues and Opportunities

Safety and Health 28

Partially reporting using Parmalat Australia safety measures . Read more in Safety and Health .

Training and Education


Our People

People Development . 25

Human Rights

Freedom of Association and Collective Bargaining

G4-DMA, G4-HR4 Key Sustainability Issues and Opportunities

Our People 24–30

Child Labour


Our People 24–30

Forced or Compulsory Labour


Our People 24–30

Product Responsibility

Customer Health and Safety

G4-DMA, G4-PR1 Key Sustainability Issues and Opportunities

Food Safety 13

100% of significant product and service categories . Read more: Food Safety .


sustainability report 2017 - parmalat professional · 2019. 9. 11. · parmalat australia is a...

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