1. Mapping of Australian System against Unilever SAC Unilever Sustainable Sourcing – Australian Dairy Industry August 27th, 2012, Southbank www.sustainable-living.unilever.com Why this benchmark? • To acknowledge the high standard of Australian dairy farming systems • To assure this high level for Unilever • To reduce future work for Unilever suppliers, their farmers and Unilever • To get Australian dairy farming systems in Annex I of the Unilever Scheme rules How is this benchmark organised? • On-going work since autumn 2011 • Dairy Australia (Helen, Rob, Robin and Catherine) developed first version • First version discussed in May 2012 in Brussels (Helen & Klaas Jan) • Included benchmark in Unilever Benchmark spread sheet in July 2012 • Further discussion on benchmark in August 2012 • Workshop and farm visits will help to finalize the benchmark • Final benchmark will be evaluated by SSDT team Unilever Ultimate goal is to have Australian dairy farming systems accepted as sustainable by Unilever Certification Self Verification • • • • • In or out • Measured improvement Do’s and don’ts • Action plans Independent • Unilever driven The seal is the story • Tell your own stories System costs • Value chain investment *See latest version of scheme rules Minimum standard to become recognised as sustainable Performance levels per question type Mandatory : where 100% compliance is required Must: 80% of the total must and min. 80% of each chapter is required Should: recommended but not required Metrics: Report on continues improvement Performance per chapter Continuous improvement 100 % Agrochemicals 82 % and fuels Waste 67 % Energy and Greenhouse gases 70 % Soils 53 % Social and human capital 89 % Water 100 % Value chain and local economy 100 % Biodiversity 44 % Training 90 % Animal welfare 85 % Click on links for more Overall conclusions • Best farms will be compliant with Sustainable Agricultural Code already • Risks are the 20% dairy farms that do not participate in industry programs • Chapters that need improvement: – Soils, Waste, Energy and Biodiversity – Comparable to European results • First sustainable supply should be possible in 2012 – Dependent on way forward (Industry Standard or individual self-assessment process) Next steps • Visit dairy farms to verify and finalize benchmark • External verification of the benchmark process by SSDT Unilever – Leading to partly or fully recognition of Australian dairy farming systems • Develop improvement plan with focus on metrics and non-compliant chapters • Analyse and manage sustainability risks not covered by the SAC • Support Dairy Australia with developing the Sustainability Plan