Australian supermarket giant Woolworths Group will stop selling beef and other commodities linked to deforestation by the end of next year, in accordance with Science-based Targets Initiative (SBTi) guidance, it said on Wednesday.

Woolworths is updating its deforestation target to align with SBTi Forest, Land, and Agriculture Guidance (FLAG) for no-deforestation, it said in a sustainability report published alongside its annual results.

“Woolworths Group aims to achieve no-deforestation across our primary deforestation-linked commodities, with a target date of 31 December, 2025,” the company said. Environmental groups have celebrated the move.

FLAG states that companies must set zero deforestation targets for no later than 2025 in order to be compliant.

Woolworths said it would apply the current SBTi definitions of “deforestation” and “natural forest” in targets covering paper, pulp, timber, palm oil, cocoa, soy, and fresh beef.

This is significant given that research has found beef farming expansion is one of the driving forces behind deforestation in Australia, to the extent that the country has been classified as a global deforestation hotspot by WWF.

Some 1.5 million hectares of land were deforested in regions primarily used for livestock in Australia between 2016-2020, according to federal government data.

Previously, Woolworth’s deforestation target took a net-based approach. This attracted criticism from environmental groups as it allowed suppliers to clear land, so long as this was replaced with saplings elsewhere.

Woolworths said the update supported its Scope 3 emissions reductions and removals target, while also promoting nature outcomes.

While deforestation-free certifications exist for commodities like paper pulp and timber, palm oil, and cocoa, more work was needed for beef, it said.

“We are sensitive to the issue around evolving definitions of deforestation and the need to apply these definitions in the appropriate context for our supply chain, industry, and geography,” it said.

“We acknowledge this is an evolving landscape and that new information or developments may impact our ability to reach our targets.”

The company said it would engage and collaborate with its suppliers in good faith to meet the targets and support a just transition.

“ENORMOUS IMPLICATIONS”

Australian environmental groups celebrated the supermarket’s announcement.

“No one sells more beef to Australians than Woolworths, so this commitment has enormous implications for nature and for people who want to make sustainable food choices,” Nathaniel Pelle, nature and business lead at Australian Conservation Foundation (ACF), said in a statement.

“Australia is an international deforestation hotspot, but that problem is being driven by a small number of operators. Consumers will soon be able to buy beef knowing they are supporting farmers who protect forests and woodland on their properties.”

ACF urged fellow Australian supermarket juggernaut Coles to match its rival’s commitment.

“It is disappointing Coles is dragging the chain on this and will continue to turn a blind eye to nature destruction linked to its supply chains,” Pelle said.

Definitions around “deforestation” and “natural forests” are contentious, particularly as a result of the EU’s deforestation law coming into effect by the end of this year.

Local industry body Cattle Australia is working with stakeholders to formulate an industry-led definition of deforestation.

Responding to the announcement, Cattle Australia CEO Chris Parker said he welcomed that Woolworths would interpret and apply appropriate sustainability definitions and assessments based on the Australian context.

Australian beef producers “already operate under some of the toughest and most extensive vegetation management laws in the developed world”, he claimed.

“It is vital the fog of confusion that has been created by some environmental groups around misleading deforestation perceptions is refuted and ignored,” he argued.

“The continued focus on their interpretation of international frameworks, in which these groups ignore or downplay the land use assessment requirement of the predominant agricultural use, is disingenuous at best.”

Australian environmental groups including ACF, and the Wilderness Society released policy guidance earlier this year, saying companies must ensure generated forest that “sustains a natural ecosystem” be protected – with forests 15 years and older meeting that definition.

This would ensure Australian corporate deforestation commitments align with global frameworks, the groups said.

In 2023, investor network FAIRR said French company Danone was “unique” in being the only one out of 60 assessed companies to disclose a FLAG target.

By Mark Tilly – mark@carbon-pulse.com

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