Social & Sourcing

Objective

"To sustainably and ethically source products and materials, to minimise ecological impact and support communities."

As a large user of raw commodities the sector has a significant capacity to influence responsible or ethical sourcing arrangements. As sourcing is a total supply chain issue, there is an inherent need to work beyond the company boundary to engage in sustainable sourcing arrangements. These broad ranging concerns vary across sectors within the industry and will evolve with the community needs and issues.

AFGC has working groups on Palm Oil, Tuna Traceability and Occupational Health and Safety.

Sourcing Target

All AFGC members have a sustainable sourcing (or equivalent) policy in place by 2015.

Industry Performance

In 2011-12, more than 65 per cent of the survey respondents had a sourcing policy or equivalent in place, an increase from 50 per cent in 2010-11. Respondents reported sustainably sourced products such as cocoa, palm oil, paper, tea, coffee, pumpkin, mint and seafood.
The cost of procurement and the actual availability of products were key barriers reported, restricting Australian businesses’ abilities to sourcing sustainably.
The social and sourcing area continues to be a complex one which sparks interest from consumers, NGOs and other stakeholders. AFGC is working with members to assist in sourcing goods and services responsibly along the supply chain.

Community Investment

In 2011-12, the survey respondents made community contributions totalling nearly $15 million which was 0.07 per cent of the respondents’ total turnover. Company initiatives, involving fiscal and in-kind contributions by individual companies, included activities such as community partnerships and support programs, donations and gifts-in-kind, employee and organisation-wide charitable giving, fundraising and related activities.  They also included AFGC member support of FoodBank, SecondBite and various environment and conservation activities and partnerships.

 

AFGC Responsible Sourcing Principles

The AFGC and its members are committed to sourcing sustainably and ethically produced products and materials, to minimise ecological impact and support communities.

AFGC encourages member companies to meet this responsibility by:

  • Improving the welfare and working conditions of their own staff, but also their impact on workers and communities engaged in their supply chain. Respecting the rights and privileges of workers by addressing issues such as child labour, forced labour, unsafe conditions, and exploitation.
  • Addressing the key challenges to environmental sustainability within the factory gate and along the supply chain, with a focus on better packaging, efficient use of water, minimising waste and energy use. Ensuring sourcing practices to not contribute to deforestation, instead promote better land management to improve biodiversity.
  • Ensuring the humane treatment of animals both physically and providing for their mental wellbeing. This includes all stages from birth, rearing, and extends to export and operating practices at abattoirs and dairy farms.

 

Case Studies

2012-13 Social & Sourcing Case Studies

2012-13 Community Investment Case Studies

Sourcing

Work Place Safety


AFGC Member Actions

Below is a snapshot of AFGC food and grocery manufacturing members who have made responsible sourcing commitments. Please click on the links to be directed to their public commitments.

More companies and issues would be added as the list is updated.

Palm Oil Arnotts
  Church and Dwight
  Ferrero
  Fonterra
  General Mills
  George Weston Foods  (p.11)
  Goodman Fielder
  Johnson & Johnson
  Kraft Foods (Mondelez)  (p.9)
  Lindt & Sprungli
  Mars (incorporated Wrigley)
  McCains
  Nestle    (p.47)
  Pepsico
  Proctor & Gamble
  Reckitt & Benckiser
  Sanitarium
  Simplot Australia   (p.9)
  Unilever
   
 
Sea Food Mars (incorporated Wrigley)
  Simplot Australia     (p.11-12)
   
Cocoa Arnotts
  Ferrero
  Lindt & Sprungli
  Mars (incorporated Wrigley)
  Nestle       (p.47)
  Unilever
   
Animal Welfare Ferrero
  Fonterra
  General Mills
  Unilever
   
Coffee/Tea D.E. Coffee & Tea Retail
  Nestle (p.47)
  Mars (incorporated Wrigley)
  Unilever
   
Labor Coca-Cola
  Kraft Foods (Mondelez)    (p.8)
  Lindt & Sprungli
  Nestle        (p.48)
   
Sugar Coca-Cola
  Unilever
   
Wood Fibre Kimberly Clark Corporation
  Proctor & Gamble
  SCA Hygiene
  Solaris Paper