This report outlines ten material sustainability themes as identified by value chain stakeholders including the broader community. The research insights provide a baseline for the industry to consider as it develops its sustainability framework, Behind Australian Grain.
Sustainability has long underpinned the nature of the Australian grains industry. Managing a changing climate through adoption of technology, expanding into global markets and meeting changing consumer preferences and expectations are but a few examples. What constitutes sustainability continues to evolve and the industry’s practices must evolve as well.
Expectations are changing
Global trends present the Australian grains industry not only with challenges but also significant opportunities. As we look at changing consumer value drivers focused on transparency, traceability and the environment, we also see the shift towards Asia, digitisation, changing demographics and geopolitical and regulatory shifts which are influencing how both businesses and industries operate.
The Australian grains industry inherently strives for sustainability as its success is dependent on a long-term view of the environment and contemplation of the associated impacts on its economic and social viability.
However, as expectations of both the market and the community continue to evolve the industry is required to take a strategic approach in charting its sustainable pathway.
Competition and complexity is increasing
As a predominantly export focused industry, the Australian grains industry continues to face increased competition from the Black Sea and South American markets. As a higher cost producer Australia is focused on maximising both its natural geographic advantage to South East Asia, and accessing higher value markets.
The industry must also consider domestic market needs. All markets for Australian grain have expectations that can constrain and/or influence practices, but they also provide opportunities for innovation to maintain market access and add considerable value.
Objective of this research
The objective of this research was to collate the views of grains industry value chain stakeholders, both domestic and international, internal and external including consumers and the broader community, and identify the material themes underpinning the industry’s sustainability.
KPMG used the Global Reporting Initiative (GRI) Sustainability Reporting Standards and the AA1000 AccountAbility Assurance Standard to assess and review the value chain stakeholder input received via interviews, workshops, surveys, literature analysis and a social and online media scan. The extensive stakeholder qualitative interview process involving over 200 stakeholder organisations was combined with the analysis of literature from leading authorities on sustainability including the United Nations SDGs, significant multinational organisations, grains industry peers and stakeholders throughout the Australian grains value chain with existing sustainability programs. In addition to this, the research also captured a global social and online media scan identifying over 900,000 conversations relevant to the operation and perception of the grains industry.
Shaping the Australian grains industry’s response
This research insights report provides the industry with a baseline materiality assessment. The Australian grains industry is encouraged to review the findings of this report and the questions posed to guide the formulation of the sustainability framework. The Australian grains industry has the opportunity to be ambitious in how it responds to the material themes identified and this report provides the basis for further discussion with key stakeholders around the core components of the sustainability framework, how the industry could measure its performance and what goals it will collectively choose to drive the industry forward.
