Sustainability Snapshot 2021 - Sunrice

 
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Sustainability Snapshot 2021 - Sunrice
Sustainability
  Snapshot
     2021

      Version 1
Sustainability Snapshot 2021 - Sunrice
About This Report                                                                                                                                  Contents
The latest SunRice Sustainability Report is combined into our
                                                                         Stakeholder engagement and materiality

                                                                                                                                                   2                4              6              8                10
2021 Annual Report. To make it easy to find the sustainability
information in one place, we have assembled relevant sections as         SunRice undertakes both a formal materiality process to
well as our sustainability performance data and GRI Index into this      identify the issues that are significant to the business and to key
Sustainability Snapshot.                                                 stakeholders, as well as informal engagement throughout the
                                                                                                                                                   FY2021           About          Our Brands     Our Strategy     Our Strategy
                                                                         year, through a variety of channels in order to respond to our
                                                                         stakeholders’ insights. SunRice’s material topics are discussed in        Highlights       SunRice        and Products                    in Action
Reporting boundary and period                                            the SunRice Stakeholder Engagement Statement at www.sunrice.
SunRice’s Annual Report covers Ricegrowers Limited ABN 55 007            com.au/sustainability-reports. In FY2021, as part of our approach
481 156 and its controlled entities. Unless otherwise stated, all        to sustainability, SunRice identified six priorities that address these
disclosures in the Annual Report relate to the Financial Year ended
30 April 2021 (FY2021). In this report, ‘the year’, ‘this year’, ‘crop
year 2020’ and ‘CY20’ all refer to FY2021. The ‘2021 harvest’, ‘crop
year 2021’ and ‘CY21’ all refer to the rice crop harvested in 2021,
                                                                         material topics and provide a framework for the Group’s response.
                                                                         These priorities and related ambitions and actions are described
                                                                         in Our Approach to Sustainability on pages 28 – 39.
                                                                                                                                                   12
                                                                                                                                                   Our Approach
                                                                                                                                                                    24
                                                                                                                                                                     Our Growers
                                                                                                                                                                                   26
                                                                                                                                                                                   Our People
                                                                                                                                                                                                  28
                                                                                                                                                                                                  Our
                                                                                                                                                                                                                   36
                                                                                                                                                                                                                   GRI Index
which will be processed and marketed in the Financial Year ending        2021 reports portfolio                                                    to Sustainability                              Sustainability
30 April 2022 (FY2022). ‘SunRice’, ‘SunRice Group’, ‘Group’, ‘we’        •   Annual Report – provides information on SunRice,                                                                     Performance
and ‘our’ refer to Ricegrowers Limited ABN 55 007 481 156 and its            including governance, strategy, key risks, financial and
controlled entities, as defined in this report.                              non-financial performance and outlook, and includes the
                                                                             Annual Directors’ Report and Annual Financial Report.
Reporting frameworks                                                         www.sunrice.com.au/annual-reports

The content of the Our Approach to Sustainability section forms
                                                                         •   Interim (Half Yearly) Financial Report – provides
                                                                             information on SunRice’s half-yearly financial and
part of SunRice’s application of the Global Reporting Initiative (GRI)
                                                                             non-financial performance and outlook.
Core standards for FY2020. The GRI Standards are the world’s most
                                                                             www.sunrice.com.au/financial-reports
widely used standards for sustainability reporting. The GRI index
(see relevant section in this document) highlights where required        •   Corporate Governance Statement – provides an online
FY2020 GRI Core disclosures can be found. The sustainability                 overview of our policies, procedures and practices to
disclosures in this report and the information in SunRice’s                  ensure application of the ASX Corporate Governance
sustainability website www.sunrice.com.au/sustainability serve as            Principles and Recommendations (4th Edition).
our Communication on Progress for the United Nations (UN) Global             www.sunrice.com.au/corporate-governance
Compact.
                                                                         Other reports and information
Report assurance                                                         •   Sustainability information – provides further online
All disclosures in this document have been subject to SunRice’s              information on SunRice’s sustainability strategy, performance
internal review and approval processes by management, the                    and future plans. www.sunrice.com.au/sustainability-reports
executive and the Board, as appropriate.                                 •   GRI Index – is a summary of how SunRice has addressed
                                                                             each of the GRI reporting core standards, with references
                                                                             to where the detailed information can be located across
                                                                             the 2021 reports portfolio.
                                                                             www.sunrice.com.au/sustainability-reports
                                                                         •   Tax Transparency Disclosures – in FY2021, SunRice
                                                                             voluntarily adopted the Board of Taxation’s Tax Transparency
                                                                             Code to complement the Group’s existing tax disclosures
                                                                             and enhance our stakeholders’ understanding of the Group’s
                                                                             compliance with Australia’s tax laws. SunRice’s first Tax
                                                                             Transparency report will be issued in late 2021.
                                                                         •   Other information – presentations and announcements
                                                                             made to stakeholders during the year.
                                                                             www.sunrice.com.au/presentations
                                                                             www.sunrice.com.au/announcements

B | SunRice Sustainability Snapshot 2021                                                                                                                                                                             SunRice Sustainability Snapshot 2021   | 1
Sustainability Snapshot 2021 - Sunrice
2000 suppliers
                                           Engaged through the
                                                                                    100+ Community
                                                                                                                     40%
                                                                                                                     Of our senior
                                           implementation of the SunRice               organisations                 leadership roles
                                           Supplier Sustainability Program,         supported across                 are held by women,
                                           the foundation for the release                6 countries                 12 months ahead
                                           of SunRice’s inaugural Modern                                             of our FY2022 goal
                                           Slavery Statement

                                                                                                                     28
                                                                                                                      University and
                                                                                                                      rice research
                                                                                                                      partnerships

               FY2021
               Highlights                                                                   6   Six priority issues
                                                                                                identified and
                                                                                                ambitions set

                                                                                            2        silver
                                                                                                     awards
                                                                                                In the Australasian
                                                                                                Reporting Awards for
                                                                                                SunRice’s FY2020
                                                                                                Annual Report

                                                                                            41% of sunrice branded
                                                                                                products now display
                                                                                                the Australian
                                                                                                recycling label

                                                                          100%
                                                                   vitamin enrichment in our
                                                                    white rice in PNG and the
                                                                             Solomon Islands

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Sustainability Snapshot 2021 - Sunrice
Our objective is to optimise returns
                                                                                                                                                                                  for both classes of shareholders.

About
SunRice                                                                                                                                                              A Class shareholders
                                                                                                                                                                              Growers
                                                                                                                                                                                                                    B Class shareholders
                                                                                                                                                                                                                               Investors                     SunRice’s Structure
                                                                                                                                                                                                                                                             SunRice’s structure supports the interests
                                                                                                                                                                                                                                                             of both our B Class shareholders or
                                                                                                                                                                                                                                                             investors, who have the right to receive
                                                                                                                                                                             Rice Pool                                       Profit                          dividends through our Profit Businesses;
                                                                                                                                                                             Business                     Shared           Businesses                        and our A Class shareholders, who
                                                                                           The SunRice Group is an                                                                                         costs                                             must be Active Growers, and who are
                                                                                                                                                                                Receival,                                  International Rice,               paid for their paddy through the Rice
                                                                                           Australian ASX-listed branded                                                                                  Asset                                              Pool Business, and have control of the
                                                                                                                                                                                milling &                                   Rice Food, Riviana
                                                                                           food group, comprising multiple                                                                              Financing                                            company.
                                                                                                                                                                                selling of               Charge             Foods, CopRice &
                                                                                           businesses, assets and operations                                                  Riverina Rice                                     Corporate                    While separate, the two business groups
                                                                                           across Australia, New Zealand,                                                  Revenue – Expenses
                                                                                                                                                                                                        Brand Use
                                                                                                                                                                                                                           Revenue – Expenses                have mutual benefits and purposes.
                                                                                                                                                                                                         Charges
                                                                                           the Middle East, the United States,                                                = Paddy Price                                     = Profit                     They ultimately complement each other,
                                                                                           the Pacific Islands and Asia.                                                                                                                                     strengthening the alignment between our
                                                                                                                                                                                                                                                             investors and growers.
                                                                                           In addition to rice foods, the Group’s diversified
                                                                                           portfolio includes gourmet and ‘free from’ food
                                                                                           products, and animal feeds and nutrition. Our
                                                                                                                                                                     Payments for paddy rice to                               Dividends to
                                                                                           ~35 major brands are sold in ~50 global markets
                                                                                           and we hold leading brand positions in ~15
                                                                                                                                                                        A Class shareholders                              B Class shareholders
                                                                                           countries. Our ~2000 employees have a strong                                     and growers
                                                                                           focus on delivering value for all stakeholders
                                                                                           as part of our Group Strategy, underpinned
                                                                                           by SunRice’s values and behaviours.
                                                                                                                                                          Our Stakeholders
What Drives Us                                                                                                                                            We are committed to providing our stakeholders with credible,        SunRice’s Stakeholder Engagement Statement, which outlines
                                                                                                                                                          transparent and timely information. We engage with them on           the material topics identified by our key stakeholders and our
Our values                                                                                                                                                the topics that matter most through a variety of channels and        business, and how SunRice engages with each stakeholder and
                                                                                                                                                          respond to their insights, both directly and as a Group.             responds to these issues, can be found at:
                                                                                                                                                                                                                               www.sunrice.com.au/sustainability-reports
                                                                                                                                                          In FY2021, this included face-to-face Director-led meetings
                                                                                                                                                          with ~150 of our A Class Shareholders, receiving feedback
                                                                                                                                                          from ~1200 team members through our employee
                                                                                                                                                          engagement survey and reaching out to ~2000 suppliers                            Government and regulators
                                                                                                                                                          as part of our Supplier Sustainability Program.                              The governments and regulators
         Integrity                         Dynamic                   Collaborative                    Innovative                  Community                                                                             Employees       that have jurisdiction over the
     We will always do              We are fast, flexible           Everything is better              We constantly          We care deeply for the                                                             Our team of ~2000, who regions in which we operate or
                                                                                                                                                                                                                                              intend to operate.           Shareholders
      the right thing                 and energetic                  when we work                  seek new ideas          people and places that                                                             work in our businesses
                                                                                                                                                                                                                                                                     Our A Class shareholders, who
                                                                         together                    and better ways              care for us                                                                     around the world.
                                                                                                                                                                                              Community                                                            control SunRice, and our B Class
                                                                                                                                                                                          The local communities                                                  shareholders, who have the right to
                                                                                                                                                                                           in which we operate.                                                     receive a dividend (if declared).
Our behaviours                                                                                                                                                                    Peers                                                                          Food and non-food
                                                                                                                                                                      Peer companies which SunRice                                                           suppliers, including growers
Customer focussed                          Intellectually curious              Decisive                                Good communicators
                                                                                                                                                                        engages with on mutually                                                          The people and enterprises from which we
Without our customers, nothing             We will create an environment       We do what we say and say               We work hard on being
                                                                                                                                                                           beneficial initiatives.                                                        purchase our rice and other food products,
matters. So we work tirelessly             that will keep curious minds        what we do, making smart,               respectful communicators, and
to deliver the highest quality             active. We will encourage open      enterprise-wide decisions               pride ourselves on taking the                                                                                                         as well as other goods and services.
product, demonstrating an                  engagement and collaboration        as well as taking personal              time to listen and respond (not         Media and analysts                                                     Non-government
unbridled passion for customer             and look at challenges as           accountability for results or           react). We practice coaching and    Analysts and local, national and                                         organisations (NGOs)
service excellence, safety and             opportunities to unearth fresh,     outcomes. Being decisive also           the more we communicate, the       international media outlets which                                      Advocacy groups and other peak
sustainability.                            creative ideas, or new solutions.   means being brave, so we’re not         deeper the understanding. That     cover SunRice, or our subsidiaries,         Customers                    bodies of which SunRice is a
                                                                               afraid to take calculated risks         way, everyone has the same set           and the rice industry.              and consumers                 member, or works closely with.
                                                                               to make a difference in the way         of facts.                                                                Groups which purchase our
                                                                               we work.                                                                                                         products for consumption or
                                                                                                                                                                                                 use in a value add product.

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Sustainability Snapshot 2021 - Sunrice
Our Brands
and Products
With ~35 major brands and market
leading positions in ~15 countries,
the SunRice Group continues to
grow in key markets.
In FY2021, we added 12 brands and more than 150 related
products to our portfolio. This included SunGold, Toscano,
Hart & Soul and Bare Bakers, as well as Top Cow, Top Calf
and Longacre in New Zealand.
Our business segments, product mix and markets are
directly aligned to our 2024 Growth Strategy.

RICE POOL BUSINESS

Australian Rice Pool
Supplying premium branded Australian rice,
                                                             #1                                                             #1
                                                             Rice brand in                                         Rice brand in
built on provenance and our heritage.
                                                             Australian &                                             Australian
                                                             New Zealand                                            food service
                                                             grocery                                                   channels
PROFIT BUSINESSES

International Rice
A growing global supply chain and                                            #1                                #1                  #1
distribution network, delivering quality                                     Rice brand                        Medium grain        Rice brand across
and sustainability.                                                          in PNG & the                      rice brand in the   10 other Pacific
                                                                             Solomon Islands                   Middle East         Island markets

Rice Food
Innovation in healthy snacking and food                      #1                                                            #1
ingredients aligned to global food trends.                   Microwave                                         Rice cakes brand
                                                             rice brand                                         in Australia and
                                                             in Australia                                          New Zealand

Riviana Foods
Brand led food business building on
                                                                             #1                 #1
                                                                             Pickled            Olives brand
“special occasions” and key consumer                                         vegetables brand   in Australia
trends.                                                                      in Australia

CopRice
Innovative animal nutrition that leverages
SunRice’s Riverina rice by-products.

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Sustainability Snapshot 2021 - Sunrice
Perry and Catherine Hardy
Our Strategy                                                                                                                                                                              Coleambally rice growers

Our 2024 Growth Strategy is designed to cement the
SunRice Group’s position as a truly global, multi-
origin, multi-market FMCG business. Importantly,                                           The external macro factors1
we are proudly Australian-owned and our business                                           that influence us are:
is designed to benefit our investors, our growers, our                                     Macroeconomic considerations
employees and the communities in which we operate.                                         • Growing demand for health,                                  Challenges: 2
Over the last two years, a range of extraneous factors in the form of the drought and         wellness and nutrition
COVID-19 has delayed our ability to execute the Group’s original five-year growth plan,    • Trust, traceability and transparency                        • Increasing global competition.
due to end in 2022. The plan and its targets still remain responsive to and appropriate    • Demographic shifts                                          • Volatility of Australian rice supply.
for the external macro factors and specific business challenges that influence SunRice.    • The rise of the Asian consumer                              • Alternative crops competing for
Accordingly, we have extended the Growth Strategy’s timeline by two years to 2024,         • Food security                                                    limited water and land.
as we focus our efforts to achieve our goals and build on the significant foundational     • Supply chain stress                                         •    Market diversification and access.
work undertaken to date (see Our Outlook on page 26 for further details).
                                                                                           Sustainability considerations
                                                                                                                                                         •    Foreign exchange volatility.

                     To optimise returns for both                                          • Climate change                                              •    Economic conditions, including
Objectives classes of shareholders by…                                                     • A global waste crisis                                            geopolitical instability.
                                                                                           • Water scarcity                                              •    Climate change.
                                                                                           • Chemicals and pesticides                                    •    Market impacts of COVID-19, including
                                                                                           • Habitat and biodiversity loss                                    disruptions to the shipping industry.
                                                                                           • Poverty, slavery and inequality                             •    Competition for talent, resources and
                     Increasing               Adapting                Securing             • Population growth                                                capabilities.
                     profits and reducing     our product range       a sustainable and
                     earnings volatility      to take advantage of    reliable global
                                              changing food trends    supply chain

                                                                                                                                                                                                                                                            What success
                                                                                                                                                                                                                                                            looks like:
                                                                                                                                                                                                                                                            Strong financials
                            How we’re responding:

         1
                                                                                                                                                                                                                                                                                                           3

                                                                                   4
                                                                                                                                                                                                                                                            An aspirational revenue target of $2bn ,
                            Cementing a global supply chain in                            Being recognised for our high                                                                                                                                     which may take longer to achieve than
                            response to increased demand in                               performance, delivered by                                                                                                                                         by 2024, and to maintain double digit
                            branded products, ensuring quality                            a positive, inclusive and                                                                                                                                         returns on capital employed.
                            and sustainability.                                           accountable culture.

         2
                                                                                                                                                                                                                                                            Premium branded player

                                                                                   5
                            Repositioning Australia as the supply                         Accelerating the growth and                                                                                                                                       Leverage our reputation for quality
                            source of choice for premium branded                          diversity of our strong, cash-                                                                                                                                    and innovation in premium varietals,
                            rice markets.                                                 generative portfolio, including                                                                                                                                   healthy eating and snacking.

         3
                                                                                          through further investment in
                            Using our capabilities to meet evolving                       Riviana and CopRice.                                                                                                                                              Asian presence
                            global food trends, especially in healthy                                                                                                                                                                                       Expand sales in high-growth Asian
                            eating and snacking, in particular through:                                                                                                                                                                                     consumer markets.
                            •    Diversifying into new markets to offer high-
                                                                                                                                                                                                                                                            Diversified earnings
                                 quality and convenient packaged rice of trusted
                                 provenance.                                                                                                                                                                                                                Expand our CopRice and Riviana Foods
                            •    Playing a pioneering role in addressing the
                                                                                                                                                                                                                                                            segments through strategic growth
                                 obesity and diabetes epidemics with our unique                                                                                                                                                                             opportunities.
                                 Low GI rice.
                                                                                                                                                                                                                                                            Food ingredients expansion
                            •    Leveraging our unique position to take
                                 advantage of the global fascination with sushi.                                                                                                                                                                            Build our tailored food ingredients
                            •    Being recognised as a leader in healthy
                                                                                                                                                                                                                                                            offering to service industrial customers.
                                 snacking through a range of innovative snacks.
                                                                                                                                                                                                                                                            Resilient global supply chain
                            •    Operating a strong food ingredients business
                                 with diversified, high-value rice derivatives                                                                                                                                                                              Secure a multi-varietal and resilient
                                 servicing global food companies.                                                                                                                                                                                           global supply chain with Australian
                                                                                                                                                                                                                                                            growers at its centre.
                            •    Assurance of quality and sustainability with
                                 traceability, no matter where we grow our rice.           1. See pages 11 – 12 in our FY2020 Annual Report for   2. Further detail about our approach to these challenges can be found in Our Approach to Sustainability
                                                                                              further information on our global context.              on pages 28 – 39 and Our Approach to Risk on pages 44 – 49 in our FY2021 Annual Report.
                                                                                                                                                  3. This is an aspirational target, not a budget or forecast and assumes reasonable macro conditions.
8 | SunRice Sustainability Snapshot 2021                                                                                                                                                                                                                                  SunRice Sustainability
                                                                                                                                                                                                                                                                                   SunRice AnnualSnapshot
                                                                                                                                                                                                                                                                                                   Report 2021   | 9
Sustainability Snapshot 2021 - Sunrice
SunFoods,
                                                                                 California, USA                                                                                        Aqaba Processing

Our Strategy
                                                                                                                 USA                                                       Italy        Company (APC), Jordan

                                                           SunFoods,

in Action                                                                                                                                                                                                                                                                                                 A focus on product
                                                                                                                                                                                                                                                              Japan
                                                          Hawaii, USA
                                                                              Ensuring reliable                                                                                                                                       China                                                                       innovation
                                                                                                                                                                                                           Pakistan
Despite challenging operating conditions,                                     and quality supply                                                    Rice supply sources
                                                                                                                                                                                                                                       Taiwan                                                             and new launches
                                                                                                                                                    Global offices
which included the ongoing impacts of low                                                                                                           and assets                                            India       Myanmar
Australian rice production, COVID-19 and                                                                                                            Existing markets                                                     Thailand       Vietnam
instability in key global markets, the Group                                                                                                                                                                               Cambodia
                                                                                                                                                                                                                                       Ricegrowers Vietnam
                                                                                                                                                    Target markets                     Ricegrowers                                                                Trukai Industries,
retained a sharp focus on executing SunRice’s                                                                                                       and/or new offerings           Middle East, UAE                                                               Papua New Guinea
2024 Growth Strategy.                                                                                                                               in existing markets
                                                                                                                                                                                                         Ricegrowers Singapore                                                                               SolRice’s launch of
This included leveraging a strong balance sheet to invest for                                                                                                                                                                                                                                                   Solrais Famili,
                                                                                                                                                                                                         Further expanding our
the future at a time when many businesses were focused solely                    SunFoods’ significant and strategic                                                                                                                                                                                        which underpinned
                                                                                                                                                                                                         supply sources, including                                          SolRice,
on survival. Our investment in developing global supply sources                  agreement with the Central Valley Rice                                                                                                                                                                                   the business’s market
                                                                                                                                                                                                         Ricegrowers Singapore’s                                            Solomon Islands
over many years also ensured we were well placed to service                      Growers Association to guarantee                                                                                                                                                                                        leading position in the
                                                                                                                                                                                                         negotiation of significant
                                                                                 supply of high-quality medium grain                                                                                     agreements with strategic                                                                          Solomon Islands in
our markets despite the difficult circumstances.
                                                                                 rice through until at least January                                                                                     commercial partners in
                                                                                                                                                                                                                                                      Australia                                                          FY2021.
SunRice’s investment in our people, our brands and our                           2024. The rice, to be sourced from the                                                                                  China and India to ensure
                                                                                 Association’s 115 rice growing members,                                 Uruguay                                         the supply of milled white
environment, supply chain and assets hold us in good                             will be processed at SunFoods’ facility                                                                                 rice to key markets in the
stead for the future. Across the Group, our strategy in action                   at Woodland California, and packed into                                                                                 Pacific throughout FY2022.
included the following highlights for FY2021.                                    high value branded products for sale to                                                                                                                         SunRice, CopRice,
                                                                                 customers in existing and new markets.                                                                                                                         AGS, Riviana Foods,               Ricegrowers
                                                                                                                                                                                                                                                          Australia               New Zealand

                                                                                 Riviana Foods’ transformative                         Growing benefits of the                                            New product innovation in                     Increased product innovation and
                                                                                 acquisition of branded food importer,                 integration of Roza’s                                              Australia, including the launch               export opportunities, including the
                                                                                 KJ&Co Brands, for $51 million, which                  Gourmet into the                                                   of the Riviana Basmati                        launch of Brown Rice Chips and
                                                                                 is already delivering benefits and is                 Riviana Foods’ business,                                           microwave range and SunRice’s                 Cracker Chips in China, Singapore,
                                                                                 expected to be earnings per share                     including doubling                                                 new Flavour Your Rice sachets.                Hong Kong, United Arab Emirates,
Growth through                                                                   accretive in the first full year of ownership.                                                                                                                         Kuwait and Qatar, as well as the
                                                                                                                                       its revenue relative to
strategic M&A                                                                    The acquisition included KJ&Co’s exciting             FY2018, the financial year                                                                                       launch of health and wellbeing
and capital                                                                      brand portfolio, featuring Toscano, Hart              immediately prior to the                                                                                         and microwave rice ranges into the
investment                                                                       & Soul and Bare Bakers amongst others,                acquisition in September                                                                                         United Arab Emirates.
                                                                                 which are sold into the Australian retail             2018.
                                                                                 markets, including through Coles and
                                                                                 Woolworths, and distributed in New
                                                                                 Zealand.

                                   CopRice’s acquisition of the dairy            CopRice’s expansion into New
                                   and beef business of Victorian-based          Zealand following the acquisition of                                                                                                                                        The launch of a
                                   producer of livestock products                Inghams’ dairy nutrition business,                                                                                                                                    new more affordable                                  The launch of SunRice’s
                                   Riverbank Stockfeeds for $5 million,          which produces and sells dairy and                                                                                                                                       Asian-sourced rice                                         new Australian
                                   including a feed mill at Leongatha            calf feed products. The $11 million                                                                                                                                   brand, SunGold into                                       Infant Rice Cereal.
                                   and a dairy business across Gippsland         acquisition represents CopRice’s                                                                                                                                        the Australian food                                       While ranging was
                                   and south west Victoria. Having a             first operational expansion into the                                                                                                                                        service market.                                  achieved in Australian
                                   manufacturing facility in Gippsland           important New Zealand dairy market,
                                                                                                                                                                                                                                                                                                          retail channels, entry into
                                   complements CopRice’s existing                and included Inghams’ feed mill at
                                                                                                                                                                                                                                                                                                          China via the daigou sales
                                   facilities, securing coverage across all      Hamilton, and direct-to-farm and
                                                                                                                                                                                                                                                                                                          channel was impacted by
                                   key dairy regions in Victoria.                packaged dairy business in New
                                                                                                                                                                                                                                                                                                                           COVID-19.
                                                                                 Zealand under the ‘Top Cow’, ‘Top
                                                                                 Calf’ and ‘Longacre’ brands.

                                                                                                                                                                                                                                                                                                                2020
                                                                                                                                                                                                                                                                                                           Modern Slavery
                                   The completion of the FeedRite                                                                      The completion of the                                                                                                                                                 Statement

                                   site upgrade, which was acquired                                                                    $4.5 million upgrade of                                            Building our sustainability                   The implementation of the Group‘s new
                                   by CopRice in FY2020. With a                                                                        the Leeton Specialty                                                                                             Supplier Sustainability Program,
                                   total investment of $6 million, the                                                                 Rice Foods Facility to
                                                                                                                                                                                                          framework for the future,
                                                                                                                                                                                                                                                        with a focus on labour standards in
                                   Wangaratta facility reopened in FY2021                                                              reduce operating costs                 An ongoing                  including the identification                  the supply chain as a part of SunRice’s
                                   as a pet food and companion animal                                                                  and improve product                    focus on                    of six priorities for                         commitment to United Nations
                                   product manufacturing plant.                                                                        innovation and quality
                                                                                                                                                                              sustainability              SunRice’s sustainability                      Sustainable Development Goals. This
                                                                                                                                                                                                                                                                                                       The release of SunRice’s
                                                                                                                                       of our microwave rice.                                                                                           included reaching out to more than
                                                                                                                                       The facility was formally
                                                                                                                                                                                                          targets where we can make                                                                    inaugural Modern Slavery
                                                                                                                                                                                                                                                        2000 suppliers worldwide.
                                                                                                                                       opened by NSW Minister                                             a difference, including                                                                      Statement in response to the
                                                                                                                                       for Finance and Small                                              SunRice’s ambition and the                    SunRice’s adoption of the Board of             requirements of the Australian
                                                                                                                                       Business, Damien                                                                                                 Taxation’s Tax Transparency Code               Modern Slavery Act 2018 (Cth).
                                                                                                                                                                                                          actions to be taken as we                     to complement the Group’s existing             The statement reflects the work
                                                                                                                                       Tudehope MLC in
                                                                                                                                       April 2021.                                                        develop measurable and                        tax disclosures and enhance our                undertaken across SunRice to
                                                                                                                                                                                                          meaningful goals for each.                    stakeholders’ understanding of the             better understand and manage
                                                                                                                                                                                                                                                        Group’s compliance with Australia’s tax        the risks of modern slavery and
                                                                                                                                                                                                                                                        laws. Our first Tax Transparency report        human rights abuses in our
                                                                                      Further details can be found in the relevant segment performance sections                                                                                         will be issued in late 2021.                   operations and supply chain.
                                                                                     on pages 16 – 25 and in the Our Approach to Sustainability section on pages
                                                                                     28 – 39 in our FY2021 Annual Report. Further strategic initiatives are discussed
10 | SunRice Sustainability Snapshot 2021                                                              in Our Outlook on pages 26 – 27 in our FY2021 Annual Report.                                                                                                                        SunRice Sustainability Snapshot 2021   | 11
Sustainability Snapshot 2021 - Sunrice
Our priority
                                                                                                  issues & ambitions                                         We also worked with SunRice’s Board to
                                                                                                                                                             define our long-term ambitions for these
                                                                                                                                                                                                               We continue to evolve our approach and
                                                                                                                                                                                                               programs and in the following pages we
                                                                                                  In FY2021, we took the next step in our                    areas. By leveraging our assets and our           share our short-term actions to support
                                                                                                  sustainability journey, defining the six                   skills with focus on these six priority issues,   these ambitions. Our detailed targets
                                                                                                  priority issues that support our sustainability            we know we can deepen our impact and              and the roadmaps to deliver against
                                                                                                  framework and our growth ambitions.                        address the material topics to our business.4     them will follow.

Our Approach
to Sustainability                                           Our Framework
                                                            Making a difference
                                                            to the sustainability
Like all food products, rice relies
                                                            of places and lives
on a healthy ecosystem and thriving
rural and regional communities                              by                                                                                                                                                   WASTE REDUCTION AND
to deliver the highest quality                                                                      WATER EFFICIENCY                                            CLIMATE RESILIENCE                               SUSTAINABLE PACKAGING
outcomes. As such, looking after                            MAKING A DIFFERENCE
people and planet is core business.                         TO OUR ENVIRONMENT                    Towards the most                                           Net zero emissions from                           Toward zero waste
                                                            Minimise the environmental
                                                            impact of our products from
                                                                                                  water-efficient rice                                       our controlled operations                         from our products
Whether it be ensuring access to nutritious food,
                                                            farm to table                         products in the world                                      Partner with growers to                           and packaging
supporting regional communities in need or reducing
the environmental impact of our operations, SunRice                                                                                                          create a step change in
has a long history of looking after the people and          MAKING A DIFFERENCE                                                                              reducing emissions
planet that look after us.                                  TO OUR COMMUNITIES
                                                            Partner with communities
This section provides a snapshot of SunRice’s
                                                            to enrich lives socially and
sustainability efforts, as well as our commitment
                                                            economically, leveraging
to public and transparent communication of our
                                                            our expertise wherever
ambition in our priority issues, goals and sustainability
                                                            we operate
performance. It also serves as our Communication on
Progress for the United Nations Global Compact.
                                                            MAKING A DIFFERENCE
For more information on our sustainability                  WITH NOURISHING
performance, please see: www.sunrice.com.au/                PRODUCTS
sustainability-reporting.                                   Create nutritious products
                                                            to improve the lives of
                                                            consumers
                                                                                                    PARTNERING FOR                                              RESPECTING                                       FOOD SAFETY,
                                                                                                    RESILIENT COMMUNITIES                                       HUMAN RIGHTS                                     SECURITY & QUALITY
                                                            by taking action to achieve
                                                            our ambitions we will deliver         Our communities                                            Equity and equality                               Food security and
                                                            on the following SDGs                 consider SunRice a vital                                   across our operations                             quality products for
                                                            and address the topics that are       part of their ecosystem                                    and supply chain                                  our communities
                                                            material to our business,4 creating
                                                            value for all of our stakeholders.
                                                                                                  Our Pathway
                                                                                                   2018                                 2019                                 2020                       2021                           2022
                                                                                                   Established Board                    Senior executive                     Integrated financial and   Identified key priority        Deliver short term
                                                                                                   governance of                        sponsorship for                      non-financial reporting    issues and ambitions           actions identified
                                                                                                   sustainability, including            sustainability, followed by          to provide information                                    in this report
                                                                                                                                                                                                        First Modern Slavery
                                                                                                   Sustainability Charter               the appointment of the               on all aspects of
                                                                                                                                                                                                        Statement issued               Create road maps
                                                                                                                                        first Head of Sustainability         our performance in
                                                                                                                   Became a                                                                                                            toward targets in
                                                                                                                                                                             SunRice’s annual report    SunRice Supplier
                                                                                                                   signatory to         Materiality assessment                                                                         each priority area
                                                                                                                                                                                                        Sustainability
                                                                                                                   UN Global            completed                            Introduced three-year
                                                                                                                                                                                                        Code implemented
                                                                                                                   Compact                                                   performance data
                                                                                                                                        Released inaugural SunRice
                                                                                                                   Australia
                                                                                                                                        Sustainability Report

12 | SunRice Sustainability Snapshot 2021                                                          4. For detail on material topics identified by our key stakeholders and our business, and how                        SunRice Sustainability Snapshot 2021   | 13
                                                                                                      SunRice engages and responds, please see: www.sunrice.com.au/stakeholder-engagement.
Sustainability Snapshot 2021 - Sunrice
An industry
OUR PRIORITIES                                                                                      committed to R&D
                                                                                                    More than $85 million
Water efficiency                                                                                    invested in research and                      Our ambition                                                             FY2021 results
                                                                                                    development programs by

                                                                                                                                                  Make SunRice
                                                                                                    the Australian rice industry
World leaders in water efficiency                                                                   since 2012 resulting in                                                                                                0.88T/ML
                                                                                                                                                  products the most
                                                                                                    water-efficient varieties                                                                                              average water
Water is essential to all agriculture,                                                                                                                                                                                     efficiency achieved
                                                                                                    such as Reiziq, Viand, Topaz
including rice. Most Australian rice
                                                                                                                                                  water efficient in
                                                                                                    and others suited to the                                                                                               across CY20 Riverina
is grown using general water security                                                               Australian climate.
                                                                                                                                                                                                                           rice crops.
allocations, meaning water is allocated
to production after the needs of the                                                                Great tasting products
                                                                                                                                                  the world                                                                A new
environment, people, high-security water                                                            with less water                                                                                                        Australian rice variety
users and livestock have been met.                                                                  Not only has our $4.5 million                                                                                          tested, with positive
                                                                                                    upgrade to Leeton’s Specialty                                                                                          results ready for next year.
Because rice is an annual crop, in years of limited water availability,
our farmers either don’t grow it or grow only very small quantities.                                Rice Foods Facility boosted
They flex their production to respond to their environment. It’s the
perfect crop for the variability of Australian conditions.
                                                                                                    the texture and quality of
                                                                                                    our best-selling microwave
                                                                                                                                                                                                                           492
                                                                                                                                                                                                                           growers trained by our
When our farmers do grow rice, they are among the most water                                        rice, but it will also reduce                                                                                          supply partner in Thailand.
efficient in the world, using 50% less water than the global average                                our fresh water use and
and achieving some of the highest yields in the world.
                                                                                                    wastewater.
                                                                                                                                                                                                                           2,200+
                                                                                                                                                                                                                           recorded touch points
                                                                                                                                                                                                                           with our growers, from
                                                                                                                                                                                                                           field days to podcasts, all
                                                                                                                                                                                                                           focused on sharing best
                                                                                                                                                                                                                           practice.

                                                                                                                                                                                                                           FY2022 actions

                                                                                                                                                    A BOLD NEW PLAN                                                        Develop a
                                                                                                                                                    FOCUSED ON WATER                                                       road map
DEVELOPING NEW VARIETIES                         SHARING BEST PRACTICE                           ENHANCING NATIVE VEGETATION
                                                                                                                                                    USE EFFICIENCY                                                         in partnership with the rice
                                                                                                                                                                                                                           industry, including specific
                                                 AND KNOW-HOW                                    THROUGH WATER FLOWS                                                                                                       grower extension
Through the Australian Rice Partnership,                                                                                                            A wholly owned subsidiary of SunRice, Rice Research                    activities focused on
SunRice’s researchers have been involved         Our leading water use efficiency is a result    In FY2021 our Rice Research facility               Australia Pty Ltd (RRAPL) was established more than                    improving water use.
in the development of a new cold-tolerant        of the industry’s collaborative approach to     participated in a native vegetation                30 years ago for the specific purpose of carrying out rice
medium grain variety ‘VO71’, which was           research and development and the adoption       initiative with the NSW Department of              research and development. It’s part of a unique three-
                                                 of world-best management practices.             Planning, Industry and Environment, the            way Australian Rice Partnership between SunRice, the
                                                                                                                                                                                                                            Develop
trialled in southern NSW in FY2021.
                                                                                                 Commonwealth Environmental Water Office            NSW Department of Primary Industries and AgriFutures
To date VO71 has responded well, with            Practices like delayed permanent water                                                             Australia to deliver improvement in breeding, agronomy
                                                                                                                                                                                                                            a plan
                                                                                                 and the Murray Darling Wetlands Working
its built-in mechanisms to reduce the risk       leverage techniques, including direct drilling,                                                    and extension.
                                                                                                 Group to demonstrate how enhancing native
of cold damage. Early results show an            to allow growers to delay the time their
                                                                                                 vegetation can enhance biodiversity and in         To support the Australian Rice Partnership’s work and                   to share insights with
increased yield and improved water use           crops need permanent water on them while
                                                                                                 turn benefit the rice industry.                    build on our world leadership position in rice productivity             Vietnamese growers,
efficiency, even against our top performing      continuing to produce higher yields and
                                                                                                                                                    and water use efficiency, AgriFutures has announced                     including finalising a
current varieties.                               reduce greenhouse gas emissions. Variations Under the initiative, rice irrigation systems
                                                                                                                                                    a bold new plan to increase water use efficiency in the                 $5 million research and
                                                 on this technique are being adopted around were used to efficiently deliver water to
The new variety is one of several developed                                                                                                         Australian rice industry.                                               development partnership
                                                 the world as a solution to help make rice       the Black Box forest at our ‘Old Coree’
through investment in research and                                                                                                                                                                                          with government and
                                                 from other countries more sustainable.          property, rejuvenating numerous native             Together, our goal for Australian rice production is
development by SunRice, Australian                                                                                                                                                                                          research institutes to
                                                                                                 plants, including nitre goosefoot, lignum          to achieve an industry average of 1.5 paddy tonnes                      underpin sustainability in
rice growers and the NSW and Federal             In Australia, a network of extension officers
                                                                                                 and nardoo without the need for overbank           per megalitre by 2030. This is a 75% water productivity                 the Vietnam supply chain.
Governments. This has led to specialty           ensures our growers have access to best
                                                                                                 flows in these once flood prone regions.           improvement on FY2021 levels.
varieties better suited to the Australian        practice information throughout the
                                                                                                 This environmental work complements
climate that are widely used across the          season. We then track and share results to
                                                                                                 rice growing activities, providing habitat for
Riverina region of Australia and have            drive continuous improvement. We’re now
                                                                                                 supporting plants and aquatic animal life in
been adapted to suit SunRice’s Northern          working with our partners in Thailand and
                                                                                                 one operation.
Australian rice growing operations.              Vietnam to share what we know and work
                                                 together to achieve better results.

14 | SunRice Sustainability Snapshot 2021                                                                                                                                                                         SunRice Sustainability Snapshot 2021   | 15
Sustainability Snapshot 2021 - Sunrice
OUR PRIORITIES

Climate resilience                                                                                                                                                                                                       Our ambition

Committed to climate action                                                          SunRice is committed                                                                                                                Net zero
                                                                                     to implementing the                                                                                                                 emissions
SunRice relies on natural resources in                                                                                                                                                                                   from our
                                                                                     recommendations
Australia and around the world to supply
nutritious food products. Material changes
                                                                                     of the Task Force on                                                                                                                controlled
in weather patterns and reduction in
                                                                                     Climate-related Financial                                                                                                           operations
                                                                                     Disclosures
biodiversity, which are increasing with climate
change, may negatively influence arable lands
                                                                                                                                                                                                                         Partner with
currently used for rice production, crop yields,                                     Since 2018 we’ve saved                                                                                                              growers to
nutritional composition of rice, farming cost                                        approximately 1,026MWh                                                                                                              create a step
and deplete the number of farmers.                                                   per annum through our                                                                                                               change in
It is critical that we continue to reduce carbon pollution and position
                                                                                     ongoing program to install                                                                                                          reducing
                                                                                     energy efficient lighting
SunRice to manage the risks and opportunities of a changing climate.
                                                                                     across our Australian
                                                                                                                                                                                                                         emissions
In FY2021, across our businesses, we have ensured we have the data and
information we need to continue working towards our ambition of net zero             operations. That’s the
impact from our controlled operations.                                               equivalent of 1,088 tonnes                                                                                                          FY2021 results
In terms of climate resilience, our commitment has long been embedded in             of CO2.
both the SunRice 2024 Growth Strategy and our risk management activity.                                                                                                                                                  Group baseline projects
We continue to work to implement all of the recommendations of the Task                                                                                                                                                  for energy, waste and
                                                                                                                                                                                                                         water were completed.
Force on Climate-related Financial Disclosures (TCFD) to provide continued
transparency on these issues to our stakeholders.
                                                                                                                                                                                                                         ~30,000GJ
                                                                                                                                                                                                                         of renewable energy for
                                                                                                                                                                                                                         drying rice in our Vietnam
                                                                                                                                                                                                                         mills was generated from
                                                                                                                                                                                                                         rice hulls.

                                                                                                                                                                                                                         Progress toward TCFD
                                                                                                                                                                                                                         recommendations,
                                                                                                                                                                                                                         including management
                                                                                                                                                                                                                         presentation of progress
                                                                                                                                                                                                                         plan to Finance Risk and
                                                                                                                                                                                                                         Audit Committee (FRAC)

                                                                                                                                       TOWARDS NET
                                                                                                                                                                                                                         and confirmation of FRAC
                                                                                                                                                                                                                         oversight.5
EXPERTS AT GLOBAL SOURCING                  SUNFOODS: POWERED BY
                                            RENEWABLE AND CARBON
                                                                                     REDUCING METHANE
                                                                                     IN MOULAMEIN
                                                                                                                                       ZERO EMISSIONS                                                                    FY2022 actions
A key element of SunRice’s 2024             FREE ENERGY
Growth Strategy is the establishment                                                 SunRice Director, Dr. Leigh Vial’s family has
of a secure, sustainable and reliable       In FY2021, our U.S. based subsidiary     been farming rice for more than 50 years in       In FY2021, with the support of the NSW Government Department                      Develop our Net Zero
global supply chain that mitigates our      SunFoods LLC moved to renewable          southern NSW.                                     of Planning, Industry and Environment, we’re proud to have                        Emissions pathway by:
exposure to weather events in any one       and carbon free forms of energy                                                            commenced two new projects: an Energy Management Program,                         • Finalising our
                                                                                     In 2005, Leigh commenced a program
region. This diversification strategy       to power its plant in Woodland,                                                            and a Net Zero Emissions Strategy.                                                  energy baseline
                                                                                     to reduce methane emissions at his
was initiated more than 10 years            California. Sourced from Valley Clean                                                                                                                                          and identifying
                                                                                     property North Dale. By switching from            As part of these projects, we have investigated and developed an
ago by investing in direct access to        Energy, 42% of the site’s energy was                                                                                                                                           opportunities.
                                                                                     aerial seeding, where germinated seed is          energy consumption and energy performance indicators baseline;
Californian rice and, more recently, by     renewable and 75% was carbon free.                                                                                                                                           • Reviewing potential
                                                                                     dropped into water, to direct drilling where      a carbon emissions baseline and business-as-usual forecasts; a
the acquisition of a mill in Vietnam.       As the SunRice Group has worked                                                                                                                                                for 100% renewable
                                                                                     rice is drilled into unflooded soil, methane      masterplan for the aggregation, analytics and reporting of energy
                                            to improve its energy management                                                                                                                                               electricity at specific
As part of this, SunRice has                                                         production has reduced significantly. This        and emissions data; and a consolidated register of renewable
                                            systems, SunFoods has provided a                                                                                                                                               sites.
accelerated establishment in recent                                                  is complemented by a no-till approach to          energy investment options and efficiency projects.
years of strategic relationships with       important pilot site for how this can    crop establishment, which preserves soil                                                                                            • Partnering with our
key suppliers to access suitable            lead to improved performance at a site   carbon. Some rice growers are pushing             Together these actions establish the foundations for us to identify                 growers to create an
                                            level.                                   the boundaries further by using delayed           and evaluate climate-related risks and opportunities to deliver                     emissions baseline for
rice from other countries, such as
                                                                                     permanent water, which can add to this            a step change to our energy use and carbon emissions profile,                       our rice products.
Cambodia, China, India, Italy, Pakistan,
Spain, Taiwan, Thailand and Uruguay.                                                 reduction in methane production and               enabling us to develop a robust road map to net zero emissions for                • Continuing to progress
                                                                                     increase nitrogen efficiencies. It’s part of an   our business operations.                                                            TCFD adoption,
                                                                                     industry-wide shift towards techniques that                                                                                           including climate
                                                                                     are delivering excellent outcomes for both
                                                                                                                                       5. Please see page 44 of Our Approach to Risk for further information.              scenarios.
                                                                                     on-farm performance and the environment.
16 | SunRice Sustainability Snapshot 2021                                                                                                                                                                       SunRice Sustainability Snapshot 2021   | 17
OUR PRIORITIES

Waste reduction and
sustainable packaging                                                                                                                                                   Our ambition                                                     FY2021 results

We’re on a mission to waste nothing                                                                                                Creating new uses
                                                                                                                                   for difficult wastes
                                                                                                                                                                        Toward zero                                                      400
                                                                                                                                                                        waste from
                                                                                                                                                                                                                                         SunRice, Riviana and
Our ambition is to be a zero-waste business,                                                                                       195 pallets of SunRice’s                                                                              CopRice branded products
meaning nothing goes to landfill from our                                                                                                                                                                                                reviewed for packaging
operations or products. This is not without
                                                                                                                                   Australian one tonne
                                                                                                                                   bulker bags used to                  our products                                                     sustainability.

                                                                                                                                                                        and packaging
its challenges, but with waste becoming an                                                                                         transport rice were                                                                                   New Product Development
increasingly valuable resource, SunRice is                                                                                         recycled into new                                                                                     assessments of packaging
already well on the journey.                                                                                                       bulker bags and                                                                                       sustainability now included
                                                                                                                                   other recycled plastic                                                                                in all new packaging.
More than 30 years ago, our CopRice business was created to make
nutritious animal feed from rice by-products. Today, SunRice turns                                                                 products, as part
nearly all rice by-products into new and valuable products including
nutritious stabilised rice bran, rice flour, quality stock feed products,
                                                                                                                                   of a new pilot in FY2021.                                                                             41%
companion animal food, animal bedding and pet litter. This year we                                                                                                                                                                       of SunRice branded products
expanded that approach to include by-products of other agricultural                                                                                                                                                                      now display the Australasian
                                                                                                                                   A global approach                                                                                     Recycling Label.
crops such as almonds and grapes.
                                                                                                                                   to waste
When it comes to packaging, we continue to play our part in working                                                                Our Vietnam operation
towards a circular economy. Guided by the Australian National
                                                                                                                                   reported recycling or                                                                                 FY2022 actions
Packaging Targets and as members of the Australian Packaging
Covenant Organisation (APCO), we have made some good progress.                                                                     reusing the majority of
We also acknowledge there is still work to do.                                                                                     its wastes in FY2021,                                                                                 In line with APCO targets:
                                                                                                                                   demonstrating local                                                                                   • Complete review of all
                                                                                                                                   leadership on a global                                                                                  Australian packaged
                                                                                                                                                                                                                                           products via APCO
                                                                                                                                   issue for the SunRice                                                                                   tools to determine
                                                                                                                                   Group.                                                                                                  sustainability.
                                                                                                                                                                                                                                         • Continue roll out of ARL
                                                                                                                                                                                                                                           labelling for the Group
                                                                                                                                                                                                                                           products in Australia
                                                                                                                                                     CAMPAIGN TO                                                                           and New Zealand with
                                                                                                                                                                                                                                           a target of 100% by
                                                                                                                                                     HELP CONSUMERS                                                                        FY2024.

                                                                                                                                                     UNDERSTAND                                                                          • Create baseline for
                                                                                                                                                                                                                                           waste and begin
                                                                                                                                                     RECYCLING                                                                             developing the road
                                                                                                                                                                                                                                           map towards zero.
                                                                                                                                                     We know that in Australia the amount of soft plastics that are being
CREATING VALUE FROM                          SHARING EXCESS PRODUCT                    NEW WAYS TO DISPLAY                                           recycled is not high enough to meet Australia’s National Packaging
EVERY GRAIN                                                                            SUSTAINABILITY
                                             Excess products are those we can’t                                                                      Targets. One thing we can do to contribute is to help consumers
By-products include the parts of             sell. Wherever possible, we donate        At SunRice, we’re always looking for                          understand the types of packaging that can be recycled and the
the rice that don’t end up in our            these products to charity to help         ways to bring sustainability to life for                      recycling system.
core products, including rice hull,          those in need. We top this up with        our business and for our customers.
                                                                                                                                                     SunRice developed and launched campaigns via our social channels
rice bran and broken rice. They are          extra donations because it’s the
                                                                                       In FY2021 we started using sustainable                        in FY2021 to share the details of how REDcycle works and remind
highly nutritious, so we process them        right thing to do.
                                                                                       displays to showcase our products                             our customers that in Australia 99.9% of our SunRice soft packaging
into rice bran, rice flour, stock feed,
                                             Supporting our local communities is       in Australian retailers. The displays,                        can be recycled through that program (and a large percentage of
companion animal food, animal
                                             part of our values and we’re proud to     produced from recyclable materials                            our other Australian packaging can also be recycled through your
bedding and pet litter. In FY2021,
                                             have been working with Foodbank           in Australia, replace metal and plastic                       kerbside recycling). We will continue to build this awareness through
100% of the rice hull by-products
                                             since 2002. Last year, we donated         fittings with cardboard clips and struts,                     the adoption of the Australasian Recycling Label (ARL), which
from milling our Australian rice crop
                                             114,700 equivalent meals through          while still holding 16 kilograms of                           will soon feature on 100% of all of our Australian SunRice
were turned into new and valuable
                                             Foodbank to help fight hunger in          product per shelf. They look so good                          branded products.
products.
                                             Australia. If excess product can’t be     (and perform so well), we’re expanding
                                                                                                                                                     In the future, innovation will help solve the challenge of recyclability
In our Vietnam mill, our drying              used by communities in need, we look      their use for our newly acquired Toscano
                                                                                                                                                     of soft plastics and alternative packaging types that can protect
equipment is also powered by rice            for options such as worm farms to         and Hart & Soul branded products, as
                                                                                                                                                     and keep our products safe. Until then, we continue to proactively
hulls, using approximately 30,000GJ          ensure the goodness of the product        well as our Always Fresh and Fehlbergs
                                                                                                                                                     improve the sustainability of all our packaging for all our products by
of renewable heat energy.                    is not lost. In FY2021, 89.9 tonnes of    products.
                                                                                                                                                     reducing, removing and improving it wherever we can. You can see
                                             excess product went to Wormtech as
                                                                                                                                                     our progress here: www.sunrice.com.au/sustainable-packaging/
                                             part of a new pilot project to find new
                                             uses for waste.

18 | SunRice Sustainability Snapshot 2021                                                                                                                                                                                       SunRice Sustainability Snapshot 2021   | 19
OUR PRIORITIES                                                                                                                     OUR PRIORITIES

Partnering for resilient communities                                                                    Our ambition               Human rights                                                                                                      Our ambition
                                                                                                                                                                                                                 In FY2021 we reached
                                                                                                                                                                                                                 out to more than
                                                                                                        Our                                                                                                                                          Equity and
Helping grow
resilient communities
                                                    In years of average Riverina rice production,
                                                    SunRice delivers close to $400 million per
                                                    annum directly in the Riverina region of            communities
                                                                                                                                   Respecting human rights
                                                                                                                                   SunRice fully supports the United Nations
                                                                                                                                                                                                                 2000
                                                                                                                                                                                                                 suppliers to engage                 equality
Rice farming and production
                                                    NSW and supports more than 600 growers,
                                                    500 employees and 400 local suppliers.6             consider                   Guiding Principles on Business and Human
                                                                                                                                   Rights and expects our business, employees
                                                                                                                                                                                                                 them in our Supplier
                                                                                                                                                                                                                 Sustainability Program              across our
supports agriculture and
farmers, sustains lives
                                                    On top of this, SunRice invests significantly in    SunRice a                  and suppliers to respect all human rights,                                                                        operations
                                                                                                        vital part                                                                                                                                   and our
                                                    local causes, including regional sponsorship,
and improves the health                             community engagement, training and                                             including labour rights, throughout our                                    Access our inaugural Modern
                                                                                                                                                                                                              Slavery Statement at www.
                                                                                                                                   operations and supply chain.
of communities.                                     development, as well as providing aid-
                                                    based support where it is needed most.              of their                   We are proud to have released our first Modern Slavery Statement
                                                                                                                                                                                                              sunrice.com.au/our-modern-
                                                                                                                                                                                                              slavery-statement.
                                                                                                                                                                                                                                                     supply chain
With more than 70 years of operation in the
NSW Riverina, we understand what investing
                                                    This approach to job creation and local
                                                    community investment is replicated                  ecosystem                  during FY2021, which reflects the work undertaken across SunRice to
                                                                                                                                   date, to better understand the risks of modern slavery and human
in our communities looks like and what it           everywhere we operate, including in
                                                                                                                                   rights abuses in our operations and supply chain and to determine                                                 FY2021 results
can mean to those living there.                     North Queensland, Vietnam, the U.S., the
                                                                                                                                   a long-term approach working with our suppliers to tackle these
                                                    Solomon Islands and Papua New Guinea.               FY2021 results             challenges. With its release, we recognise the need for continued,                                                Inaugural Modern
                                                                                                                                   increasing effort and stakeholder collaboration to achieve the shared                                             Slavery Statement issued.

                                                                                                        100+                       goal of equity and equality across our operations and our supply chain.

                                                                                                                                                                                                                                                     Sustainability Supplier
                                                                                                        community organisations
                                                                                                        supported across                                                                                                                             Code implemented.
                                                                                                        6 countries.
                                                                                                                                                                                                                                                     Interactive eLearning
                                                                                                                                                                                                                                                     module developed and
                                                                                                        $52.4m                                                                                                                                       launched to communicate
                                                                                                                                                                                                                                                     our Sustainability Supplier
                                                                                                        in paddy payments                                                                                                                            Program to our Board,
                                                                                                        to Riverina growers.                                                                                                                         employees and suppliers.

                                                                                                        114,700
                                                                                                                                                                                                                                                     Targeted training sessions
                                                                                                                                                                                                                                                     for our procurement and
                                                                                                        SunRice meals donated                                                                                                                        supplier relationship
                                                                                                        via Foodbank in 2020.                                                                                                                        teams, prior to engaging
                                                                                                                                                                                                                                                     with over 40 priority
SUPPORTING HEALTHY COMMUNITIES                      DELIVERING EDUCATION OUTCOMES,                                                 DEEPENING OUR UNDERSTANDING OF                     BUILDING STRONG GOVERNANCE                                     strategic suppliers.
THROUGH BIODIVERSITY INITIATIVES                    AS WELL AS RICE ACROSS THE PACIFIC                                             SUPPLY CHAIN RISKS                                 AND PROCESSES
                                                                                                        FY2022 actions
The Bitterns in Rice Project is about farming       Our businesses Trukai Industries and SolRice                                   In FY2021 we launched SunRice’s new Supplier       As we dig deeper in engaging with our
and wildlife conservation working together.         have a long history of investing in campaigns                                  Sustainability Program across our network          suppliers, it is critical that we have strong
                                                                                                                                                                                                                                                     FY2022 actions
                                                                                                        Develop a community
                                                    related to health and nutrition, literacy and                                  of more than 2000 suppliers. As a part of our      internal governance, processes and systems
Since 2012, we have worked with the                                                                     engagement strategy
                                                    domestic violence across the Pacific.                                          risk assessment process, approximately 40          to be able to respond effectively to any                       2021 Modern
Ricegrowers’ Association of Australia and                                                               to reflect our ongoing
                                                                                                                                   suppliers were prioritised for deeper one-on-      modern slavery risks we uncover.                               Slavery Statement.
Riverina Local Land Services to uncover             Since FY2020, SolRice has partnered with the        commitment to support
                                                                                                                                   one engagement.
the well-guarded secrets of the globally            Solomon Islands Government’s Ministry of            our vibrant global                                                            In FY2021, we reviewed our internal
endangered Australasian bittern. We now             Women, Youth, Children and Family Affairs,          supplier and community     While we wanted to better understand how           processes and engaged with legal, finance,                     Three year road map
know there is a large breeding population that      the Royal Solomon Islands Police Force and          ecosystem.                 our priority suppliers are managing their risks,   people and culture, risk and quality                           outlining how we will
descends on the rice crops of the NSW Riverina      the Australian High Commission to distribute                                   more importantly we wanted to understand           assurance experts, with a longer-term view                     minimise the risk of
each year, numbering 500–1000 mature                pamphlets with its SolRais-branded bags.                                       how we can collaborate with them to improve        to embed an ethical sourcing mindset,                          labour rights abuses in our
                                                                                                        Review and relaunch our
individuals in most years. This is remarkable,      The pamphlets include options and                                              performance across our supply chain. A pilot       enabling sustainable procurement practices                     operations and supply chain
                                                                                                        inclusion and diversity
as there are only 1500–4000 of these bitterns       information for survivors of violence, while                                   was launched to provide these suppliers with       and continuous improvement. This resulted                      and, by fostering trusted
                                                                                                        policy and practice and
remaining in the world.                             reminding perpetrators that violence against                                   access to eLearning and resources to increase      in new clauses being inserted in our supply                    supplier relationships,
                                                                                                        target our engagement to
                                                    women, including their wives, is illegal.                                      their awareness and understanding of modern        and procurement contracts, as well as                          identify and address any
                                                                                                        reflect our communities.
The project provides growing tips and small                                                                                                                                                                                                          issues uncovered.
                                                                                                                                   slavery risks and help them complete risk-based    proposed changes to the way we select
incentives to help rice farmers implement           During FY2021, the Solomon Islands health
                                                                                                                                   self-assessment questionnaires transparently.      and onboard new suppliers and report on
practices that will best support the bittern        officials again relied on SolRice to get
                                                                                                                                                                                      potential human rights related issues.                         Continue to strengthen
population. In FY2021, 11 growers across            important COVID-19 health information out                                      We have now received close to 90% of
                                                                                                                                                                                                                                                     our supply chain mapping
952 hectares participated and initial surveys       through our on-pack distribution network,                                      questionnaire responses and commenced              We will continue to test, review and refine                    and supplier engagement
revealed at least 24 bitterns at the incentive      further demonstrating our role in delivering                                   analysis of the data. We will report the           our processes to ensure the robustness of                      to improve our supply
sites. These results show that the industry is      education, as well as rice, across the many                                    results and intended follow-up from these          our internal governance systems. As a Group,                   chain visibility and risk
on the right track and reinforce the value of the   hundreds of islands that make up the                                           questionnaires in our second Modern Slavery        we are committed to effectively surfacing                      assessment.
incentive program to this endangered species,       Solomons.                                                                      Statement, due for release in October 2021.        and responding to modern slavery risks, in
as well as our regional communities.                                                                                                                                                  alignment with our broader SunRice risk and
                                                                                                                                   We know there is more to do to engage with our
                                                                                                                                                                                      compliance approach.
Photo: Matt Herring.                                6. Based on a crop year of ~600,000 paddy tonnes.                              suppliers on how to use these resources and
20 | SunRice Sustainability Snapshot 2021                                                                                          this is part of our focus for the coming year.                                                           SunRice Sustainability Snapshot 2021   | 21
OUR PRIORITIES

Food safety, security and quality                                                                                        Our ambition                                                          FY2021 results

Rice is eaten by more people in the world                                                           Food security                             Supporting those who support others              100%
                                                                                                                                              In FY2021, Trukai Industries
than any other grain. It’s a staple food for
more than 3.6 billion people, who rely on
                                                                                                       and quality                            supported Port Moresby General
                                                                                                                                                                                               of our operations
                                                                                                                                                                                               Hazard Analysis and

rice for more than one meal a day.                                                                products for our                            Hospital with monthly rice donations
                                                                                                                                              and extended support to St John
                                                                                                                                                                                               Critical Control Point
                                                                                                                                                                                               (HACCP) certified.
We appreciate the role rice plays in food security, particularly in                                  communities                              Ambulance and three further
the Pacific, where our support spans more than 50 years and where
we partner with governments to provide vitamin enriched rice to
                                                                                                                                              hospitals as the pandemic escalated.
                                                                                                                                              Likewise, SolRice partnered with
                                                                                                                                                                                               100%
positively contribute to local health outcomes.                                                                                                                                                vitamin enrichment in our
                                                                                                                                              the Salvation Army to distribute rice
                                                                                                                                                                                               white rice provided to PNG
Our processes and systems underpin the safe, nutritious, quality                                                                              and tuna to communities who were                 and the Solomon Islands.
products we supply to around 50 countries. So, however you receive                                                                            without food after local gardens were
our products – whether in a restaurant, direct from the supermarket                                                                           damaged by Cyclone Harold.
                                                                                                                                                                                               Infant rice cereal offering
shelf or via aid assistance – you can count on the SunRice quality.
                                                                                                                                                                                               launched in Australia.
                                                                                                                                              Multigrain options for Asia
                                                                                                                                              and the Middle East                              Health and wellbeing
                                                                                                                                              As SunRice experiences double digit              range launched in the
                                                                                                                                              growth in convenient microwave rice              Middle East.
                                                                                                                                              formats, our range was introduced
                                                                                                                                              into China, Hong Kong, and the                   Establishment of new third
                                                                                                                                              United Arab Emirates in FY2021 with              party quality and technical
                                                                                                                                              a particular focus on the multigrain             partners to validate
                                                                                                                                              offerings, which are increasingly                products globally.
                                                                                                                                              appealing to time poor health-
                                                                                                                                              conscious consumers.                             Aid, food security and
                                                                                                                                                                                               COVID-19 related support
                                                                                                                                                                                               offered to organisations
                                                                                                                                                                                               where we operate.

THE AUSTRALIAN QUALITY STORY                   RIVERINA RICE NOURISHES BABIES                   INNOVATIVE PARTNERSHIP                                                                         FY2022 actions
                                               IN AUSTRALIA AND CHINA                           APPROACHES DURING
Ensuring supplies of genetically pure                                                           DIFFICULT TIMES
rice seed for our growers forms the            SunRice unveiled its first ever infant food                                                                                                     Continue to provide food
basis of our pioneering Australian Pure        offering in FY2021, providing Australian         During COVID-19, regional and                                                                  security through our ‘Good,
Seed Scheme, which ensures the variety         parents with an infant rice cereal alternative   international travel restrictions prevented                                                    Better, Best’ framework
integrity and traceability underpinning        produced from Riverina grown rice.               our quality and technical experts from                                                         – aligning local need to
our premium product.                                                                            validating manufacturing processes and                                                         quality product.
                                               While ranging was achieved in Australia,         product in person. Instead, our Global
Seed production is only able to occur in       entry into China via daigou channels was         Operations team developed new ways of                                                          Develop a method of
the region for our Riverina crops, which       impacted during the year by COVID-19.            working, including establishing innovative                                                     capturing impact of our
is a rice quarantine zone and further          In May 2021, our infant rice cereal was          partnerships with third party experts, who                                                     long-term partnership with
protects the quality of the rice we grow.      shipped to distributors ahead of its launch      acted as our teams’ eyes and ears on the                                                       food security organisations
The program is unique to SunRice and           to Chinese consumers via cross border            ground in multiple countries to ensure our                                                     around the world.
ensures growers have access to pure            e-commerce channels. Approximately               product continued to be processed to the
genetics, based on their region.               12 million babies are born in China each         highest food quality and safety standards.                                                     Continue to provide
                                               year and our new product should appeal                                                                                                          targeted nutritional support
Complementing our Pure Seed Scheme,
                                               to parents’ desire for clean and safe foods,                                                                                                    through our vitamin
our subsidiary Rice Research Australia
                                               in line with Australia’s strong reputation                                                                                                      enriched rice for specific
uses research and development levies                                                                                                                                                           local communities.
                                               for this.
paid by growers to fund, in partnership
with the NSW Department of Primary                                                                                                                                                             Continuous improvement
Industries and AgriFutures Australia,                                                                                                                                                          in our Australian Pure Seed
the development of new varieties with                                                                                                                                                          Scheme.
enhanced agronomic properties and
subsequently higher returns for growers.
It’s another way we’re achieving superior
research outcomes (and great tasting
product) for the Australian rice industry.

22 | SunRice Sustainability Snapshot 2021                                                                                                                                             SunRice Sustainability Snapshot 2021   | 23
Our
OUR PRIORITIES

                                                                                                                                                                                                                            CY20 Riverina

growers                                                                                                                                                                                                                     Rice Harvest

                                                                                                                                                                                                                            45,000
Our growers are pivotal to                                                                                                                                                                                                  paddy tonnes harvested.
SunRice’s success in every way. As
A Class shareholders, our Riverina
growers have control of SunRice                                                                                                                                                                                             90%
through our Constitution, and                                                                                                                                                                                               of crops drill sown.
have a unique 70-year connection
to the business producing and
supplying high quality grain for
our premium markets.                                                                                                                                                                                                        Overall CY20 Riverina
                                                                                                                                                                                                                            yields were 2.2% above
From Vietnam to Uruguay, our Riverina growers                                                                                                                                                                               long-term industry
are complemented by a growing network of global
                                                                                                                                                                                                                            averages:
grower suppliers, spanning 12 countries, including
Australia (see pages 14 – 15). Together, we bring
the world 6 billion serves of rice, feeding around                                                                                                                                                                          Exceptional whole
19 million people every day.7                                                                                                                                                                                               grain yields of

                                                                                                                                                                                                                            64.9%
Meet our growers                                                                                                                                                                                                            for Reiziq.

                                                                                                                                                                                                                            Average yield of
THE SERGI FAMILY, GRIFFITH
SunRice growers Patrick and Hayley Sergi (pictured                                                                                                                                                                          10.62
above), run a mixed cropping farm in Griffith, NSW.                                                                                                                                                                         tonnes of paddy rice
                                                           Australian rice growers’                            In mapping out the framework, both
                                                                                                                                                                   BRINGING SUNRICE BEST                                    per hectare (all varieties,
“This year we’ve got plenty of water and there’s a big     sustainability framework                                                                                PRACTICE TO VIETNAM
                                                                                                               on and off farm data will inform                                                                             all locations).
rice crop in the ground; it’s going to benefit the whole                                                                                                           The forthcoming season will be the third for
                                                                                                               accurate benchmarking and goal
community, right through the system. The whole             In FY2021 we continued to develop a                                                                     rice grower Tran Phuoc Nhan, who has been
                                                                                                               setting, which will take place at the                                                                        Top Reiziq yields of
town is vibrant because there’s water and there’s          farmer-led sustainability framework
                                                                                                                                                                                                                            15.6
                                                                                                               end of this season’s harvest.                       supplying Ricegrowers Vietnam with short
rice – it’s really a fantastic feeling,” says Patrick.     in collaboration with Local Land                                                                        grain variety DS1 from the Hon Dat district,
                                                           Services (LLS), the Ricegrowers                     A critical part of the development will also        Ken Giang Province. This season will see                 tonnes of paddy rice
THE GLENN FAMILY, MOULAMEIN                                Association of Australia (RGA) and 24               be how we engage consumers and other                the rollout of a research and development                per hectare.
                                                           Riverina rice growing businesses. The               stakeholders in the process to ensure               program to assist with managing inputs
SunRice grower Robert Glenn, wife Alison and               framework, now officially known as                  that they have a greater connection to              to improve grain quality and in turn, the
daughters, Samantha and Charleton, run a mixed             the Rice Growers’ Promise has been                  how their rice is grown in Australia. We            number of export markets available for
farming business at Moulamein, NSW.                        built from the ground up by Australian              want them to understand our growers’                Vietnamese rice. SunRice agronomists will                Overall CY20
“You’re growing something for Australia; it’s on the       rice growers, for rice growers. It                  passion and pride for growing rice and              be involved on a weekly basis in the field to            tonnages achieved
supermarket shelf – COVID-19 has really brought            encompasses a number of priorities                  their commitment to sustainability. We              assist in managing the program and keeping               per megalitre (ML)
that home that people want to know where                   and goals that will be significant                  believe that the framework will provide             a digital record of all activities.                      were favourable,
their food comes from – something we’ve always             in maintaining and achieving                        a platform to bring together Aussie rice
                                                           sustainability outcomes both on farm                growers and our consumers, closing gaps                                                                      considering the
known,” says Robert.                                                                                                                                               PARTNERING FOR
                                                           and more broadly, as an important                   in understanding of how Australian rice is                                                                   challenging
                                                                                                                                                                   GROWTH IN THAILAND
                                                           local agricultural industry.                        delivered from paddock to plate.                                                                             conditions:
                                                                                                                                                                   In Thailand, we’re partnering with
                                                                                                                                                                   government breeding programs and
                                                           RICE                                                                               OUR FRAMEWO RK
                                                                                                                                                                                                                            Average
                                                           GROWERS
                                                                                                                                                                   multiple seed, paddy growing and packing
                                                                                                                                                                   partners to deliver 5,000 hectares of
                                                                                                                                                                                                                            0.88T/ML
                                                            PROMISE                                   OUR
                                                                                                  ENVIRONMENT
                                                                                                                                                                   specialty rice grown specifically to support
                                                                                                                                                                   second tier brands within our supply chain.
                                                                                                                                                                                                                            (all varieties, all locations).
                                                                                                                                                                   Through our partners and stakeholders
                                                                                                                                                                   in country, SunRice is funding the training              Top return of

                                                                                                                                COMMUNITY
                                                                                                                                                                   of close to 500 Thailand farmers in SunRice
                                                                                                                                                                   systems, including farm record keeping,                  1.32T/ML
                                                                                                                                                                   integrated pest management and                           (drill sown crop).
                                                           INNOVATION                        QUALITY                            Showcasing our passion and
                                                           Continuous improvement            Proudly producing fresh and        pride to build prosperous and
                                                                                                                                                                   technologies for climate-smart farming,
                                                           through industry led innovation   trusted quality food directly      safe communities for our           including nutrient, straw and stubble
                                                           and technology.                   traceable from paddock to plate.   children and future generations.   management.

7. Based on a 75 gram serving size.

24 | SunRice Sustainability Snapshot 2021                                                                                                                                                                          SunRice Sustainability Snapshot 2021   | 25
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