Australian Food and Grocery Council Sustainability Covenant
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Australian Food and Grocery Council Sustainability Covenant
Sustainability covenant
This voluntary SUSTAINABILITY COVENANT is a statutory agreement under section 49AA of the
Environment Protection Act 1970 (‘the Act’) made on the 28th day of October 2010
between:
Environment Protection Authority (‘EPA Victoria’ or ‘EPA’), ABN 85 899 617 894, a body corporate
incorporated pursuant to the Environment Protection Act 1970 (Victoria), of 200 Victoria Street, Carlton,
Victoria 3053
-and-
Sustainability Victoria (‘SV’), ABN 62 019 854 067, a body established under the Sustainability Victoria
Act 2005, of Level 28, Urban Workshop, 50 Lonsdale Street, Melbourne, Victoria 3000
-and-
The Australian Food and Grocery Council (‘AFGC’) ABN 23 068 732 883, a registered organisation of
employees, of Level 2, Salvation Army Building, 2–4 Brisbane Avenue, Barton ACT 2600
in which:
AFGC, SV and EPA aim to build a strong relationship to deliver significant environmental results for Victoria,
and to assist AFGC to take a strategic leadership approach and demonstrate to the industry and broader
stakeholders the importance in becoming a more sustainable industry.
EPA and SV recognise the unique position of the AFGC to lead, and provide direction for the Australian
food and grocery industry on sustainable options whilst also promoting economic growth. Through this
sustainability covenant, EPA, SV and the AFGC will work collaboratively to create sustainability initiatives
for food and grocery manufacturers in Victoria to improve efficiencies in key areas including energy, water
and resource use, waste production and the creation of new corporate social responsibility achievements.
While focussed on Victoria it is envisaged that there will be flow on benefits to companies that have
manufacturing sites in other states.
2
About the parties
The Australian Food And Grocery Council EPA Victoria
(AFGC) EPA Victoria is a statutory body that was established
AFGC is the national body representing Australia’s food under an Act of the Victorian Parliament in 1970 in
and grocery product manufacturers. The food and grocery response to community concern about pollution. EPA’s
products industry is Australia’s largest manufacturing vision is the Victorian community living sustainably.
sector, employing more than 315,000 Australians and A community living sustainably knows the impacts of
contributing four per cent to gross domestic product. The the decisions it makes and the actions it takes on the
role of AFGC is to help shape a business environment that environment and:
encourages the food and grocery products industry to zz efficiently uses and renews resources
grow and remain profitable. Innovation in sustainability zz understands that what is good for the environment is
performance is considered to be fundamental to this. good for the economy and society
On sustainability related matters, AFGC Secretariat zz lives in a healthy environment that provides clean air,
conducts its activities via the established Sustainable water and land
Practices Committee which is made up of approximately zz meets the needs of today without compromising the
15 member company representatives. The initiatives range ability of future generations to meet their needs.
from information exchange, benchmarking, advice and
EPA’s purpose is to protect, care for and improve our
technical tools and/or expertise and opportunities for
environment. EPA’s values are collaboration, innovation,
collaborative action on key issues affecting the industry.
integrity and respect.
The core issues for the Sustainable Practices Committee
EPA’s objectives are to tackle climate change, increase
include:
resource efficiency, reduce emission impacts, enhance our
zz water — security, availability, reuse and efficiency
reputation and benefit the economy.
zz waste — reduction of food/trade waste, packaging
waste management and reduction, consumer (food)
waste, increasing resource efficiency
Sustainability Victoria
zz energy — energy efficiency programs and policy, Sustainability Victoria is a Victorian Government statutory
greenhouse gas emissions reduction and adaption authority with a board reporting to the Minister for
policy, renewable energy technology, innovation and Environment and Climate Change and Innovation.
adoption Its purpose is to act as a catalyst for sustainable growth
zz social — ethical sourcing (palm oil, cocoa, coffee, etc) and development in Victoria. Understanding current and
and corporate responsibility, community investment emerging social, economic and environmental challenges
and community safety and health. and the needs of current and future generations, SV aims
to implement Victorian Government policy by working
with business, government and the community to deliver
tangible results in the areas of carbon pollution reduction
and the smarter use of energy, materials and water.
Sustainability Victoria’s purpose is to effect positive
change in the areas of waste recovery, energy efficiency
and renewable energy supply, in partnership with
community, business and government.
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Objectives of the covenant
The overall objectives of this covenant are to:
zz assist the food and grocery sector to understand and improve its sustainability performance including environmental,
social and economic aspects
zz promote and facilitate capacity building within the sector and the sharing of knowledge and information by working with
likeminded stakeholders
zz deliver more sustainable products through the supply chain by improving processes and resource efficiency.
Management of the covenant
Governance
A steering committee will be established to manage the sustainability covenant’s implementation. The steering committee
is responsible for the development and ongoing refinement of the commitments made in this covenant. It will comprise an
agreed number of the following representatives:
AFGC Sustainability Victoria EPA Victoria
Director General Manager Director
Sustainable Development Sustainable Production Business Development
Manager Manager
Industry Partnerships Service Growth Unit
Sustainability Policy and
Programs Analyst
Sustainability Covenant Sustainability Covenant
Project Manager Program Manager
Planning
AFGC, EPA and SV will together develop an annual action plan outlining specific projects, actions, responsibilities, key
performance indicators and budget allocations for each year of the covenant.
Schedule 1 sets out the operational intent of the covenant in year 1 (2010–11). In future years of the covenant, the specific
activities for that year will be identified and agreed by the steering committee. These initiatives will be finalised in March
preceding the beginning of the relevant year.
Review and reporting
The progress of actions under the covenant will be reviewed by the steering committee bi-annually. This will involve the
activities of the parties being reviewed and assessed for their efficiency and effectiveness. Prior to the steering committee
meeting, the parties will brief others on progress to date.
Public reporting on the progress of the covenant and outcomes achieved will occur annually via the websites of the parties.
At the end of the covenant life, the Steering Committee will undertake a full review of the outcomes. AFGC, SV and EPA
recognise the success of the covenant will be measured by progress against the objectives and in the delivery of integrated
environmental, social and economic outcomes for AFGC members and companies involved in covenant activities. Following
this review, the Steering Committee will prepare a report containing a summary of the achievements by all parties over the
term of the covenant. This report will be published with the outcomes of the review on all parties’ websites.
Life of the covenant
The life of this covenant will be three (3) years from the date of signing.
4Commitments made by the parties
To achieve the objectives of this covenant, AFGC, SV and EPA agree to work together to implement the following
commitments.
Commitments Focus areas
Encourage and enhance the ●● Work with the sector to develop and use tools and guidance to increase the number of
food and grocery sector’s organisations undertaking resource efficiency measurement and sustainability reporting
ability to measure and report (e.g. SV’s 5Star Sustainability Tools for businesses).
on its sustainability impact and
progress
Identify opportunities and ●● Investigate and support key opportunities to aid the sector to reduce its energy and water
appropriate mechanisms consumption and waste production and increase its materials efficiency; for example, tool
to encourage resource kits, fact sheets and benchmarking information.
efficiency within the food ●● Examine the development of common metrics and language for sustainable food and
and grocery sector grocery products.
●● Trial opportunities to reduce transport emissions and fuel usage in the sector (e.g. EPA’s
EcoStation program).
●● Provide assistance to food and grocery manufacturers to assist in the integration of
sustainable purchasing decisions into their businesses.
●● Identify and encourage the uptake of opportunities to avoid food waste in the sector.
Build the capacity of the ●● Encourage businesses to share their knowledge and experience of life-cycle thinking and
food and grocery sector assessment in order to build capacity in the wider food and grocery sector and provide
to provide sustainable links into EPA’s/SV’s/AFGC’s life-cycle services.
products ●● Undertake a study to understand the current motivations and barriers to sustainable
production and purchasing and explore how this information can be used to develop more
attractive, sustainable products for the consumer.
5Funding under the covenant
EPA commits funding of up to $100,000 per annum, for a three-year period, to AFGC under this sustainability covenant.
The funding will remain with EPA and will be entrusted to AFGC as activities are approved by the Steering Committee.
Sustainability Victoria does not commit to any specific funding amounts under this sustainability covenant. Sustainability
Victoria will use its best endeavours to work with the AFGC to provide funding through its funding programs for projects
undertaken under this sustainability covenant.
The allocation of funding outside existing programs for specific project opportunities in year 2 and year 3 of this
sustainability covenant will be determined as part of Sustainability Victoria’s annual business planning process.
AFGC will provide resources to the value of up to $80,000 per annum, for a three-year period, as part of its operational
sustainability budget over the life of the sustainability covenant.
Measuring success
AFGC, EPA and SV recognise that the success of this sustainability covenant will be measured by both its business and
environmental outcomes. Quantitative targets and specific measurable performance indicators will be developed and
agreed to by AFGC, SV and EPA within three months of the signing of this agreement. Progress against these targets will
be publicly reported on an annual basis.
More information
In accordance with section 49AC(b) of the Act, the parties will ensure that this covenant is readily accessible to the public
and that it is published on the internet.
In accordance with section 49AC(c) of the Act, the parties authorise the copying of all or any part of the covenant by any
person who wishes to do so. The parties also authorise the use by such a person of any copies made by the person.
6Contact details
Tony Mahar Michael Cox Nathan Steinhardt
Director Sustainable Development Sustainable Production Service Growth Unit
Australian Food and Grocery Council Sustainability Victoria EPA Victoria
Locked Bag 1, Kingston Level 28, Urban Workshop Level 3, 200 Victoria St, Carlton
ACT 2604 50 Lonsdale Street, Melbourne VIC 3053
T: 02 6273 1466 VIC 3000 T: 03 9695 2630
www.afgc.org.au T: 03 8826 8700 www.epa.vic.gov.au
www.sustainability.vic.gov.au
7SCHEDULE 1
Proposed activities for Year 1
The initial activity, to be completed in the three months from the launch date of the covenant, will be for the signatory
organisations to investigate, determine and agree on the specific activities to be carried out in the remainder of that year of
the covenant and the metrics for measuring success.
In addition, in year 1, AFGC, SV and EPA will:
zz put in place the proposed governance arrangements by 15 October 2010
zz hold the initial steering committee meeting by 12 November 2010
zz develop a communications strategy (including key messages and tools) by 30 November 2010.
Commitments Focus areas Specific activities for Year 1
Encourage and enhance ●● Work with the sector to utilise ●● AFGC member survey including the
the food and grocery or develop tools and guidance to adoption of GRI framework.
sector’s ability to increase the number of organisations ●● Identification of companies to pilot
measure and report on undertaking resource efficiency continuous improvement frameworks
its sustainability impact measurement and sustainability that drive resource efficiency and
and progress reporting (e.g. SV’s 5Star Sustainability sustainability leadership (e.g. SV’s 5Star
Tool for businesses). Sustainability Tools for business).
Identify opportunities ●● Investigate and support key ●● Development of benchmarks and
and appropriate opportunities to aid the sector common industry metrics/indicators
mechanisms to to reduce its energy and water and language for sustainable food and
encourage resource consumption and waste production and grocery products.
efficiency within the increase its materials efficiency. ●● Establishment of generic or guiding
food and grocery principles for sustainable purchasing
●● Trial opportunities to reduce fuel usage
sector policy/guidelines.
in the sector (e.g. EPA’s EcoStation
●● Determine examples of existing
program).
purchasing procedures/policies
●● Provide assistance to food and
grocery manufacturers to assist in the
integration of sustainable purchasing
decisions into their businesses.
●● Promote and facilitate engagement
with community food donation services
to avoid food waste.
Build the capacity of ●● Encourage businesses to share their
the food and grocery knowledge and experience of life-cycle
sector to deliver assessment in order to build capacity
provide sustainable in the wider food and grocery sector
products and provide links into EPA’s/AFGC’s life-
cycle services.
●● Undertake a study to understand the
current motivations and barriers to
sustainable product purchasing and
explore how this information can
be used to develop more attractive,
sustainable products for the consumer.
8 Publication 1355 October 2010You can also read
