In an interview presented by South Pole, Simon Lowden – Chief Transformation Officer at The Arnott's Group – shares how his team is spearheading the company's sustainability progress, including driving an impactful climate strategy.
Sustainability is a critical component of corporate responsibility and Simon shares the Group's proactive approach in navigating the complexities of emissions reduction targets.
Originally a short feature in the Australian Institute of Company Directors magazine, this article provides the full version of the interview.
"At the heart of The Arnott's Group's climate journey lies a commitment to environmental, social, and governance principles," says Simon. He highlights the company's approach, which extends beyond manufacturing to ensure the group's purpose to create delicious moments endures by preserving the land on which they rely and serving the local communities where they operate.
"One of the biggest pieces of work we've engaged in recently is with the climate consultancy South Pole, to gain a complete picture and understanding of our emissions footprint," Simon shares. "The work we did with South Pole has been instrumental in providing us with a full view of our value chain's footprint and it was no surprise that the biggest challenge we face is our scope 3 emissions."
Simon emphasises the Group's proactive stance on stakeholder engagement, engaging with partners across the value chain and empowering internal teams to support the company's sustainability goals.
As a responsible food company, The Arnott's Group proactively engages with partners across the supply chain to source ingredients both sustainably and ethically. Simon shares “Our business heavily relies on the produce that is grown on the land. That is why our farming communities across the group are very important to us. The Arnott's Group is the largest user of soft wheat in Australia and I am proud of our partnership with Allied Pinnacle. Through this partnership, we are using data to support growers to trial practices on farm that have the potential to improve soil health and/or reduce greenhouse gas emissions."
The Group's strategic partnerships with industry, suppliers, and community partners are integral to advancing shared sustainability objectives. By aligning product portfolios, packaging strategies, and climate mitigation efforts, the Arnott's Group champions a collaborative approach to creating systemic change across the value chain. While the business explores how best to continue its work with agricultural partners, in 2023 The Arnott's Group focused on emissions reduction projects within direct operations.
Simon shares “My team completed the install of solar panels at our North Strathfield head office and our bakery in Virginia. We also signed an agreement to deliver one of Australia's largest behind-the-meter solar and battery installations and will transition our world-class Huntingwood manufacturing facility to 100% renewable electricity by 2029. Excitingly, the solar installation will be fully operational this year."
Simon acknowledges that the sustainability challenges faced by the business are big, complex and systemwide. He shares “We cannot find solutions and drive meaningful progress by simply playing in our own patch. But we can use our influence and scale to partner with the value chain and chart a path forward."
With mandatory reporting regulations looming, there has been a notable uptick in interest and scrutiny surrounding climate-related initiatives. Simon views this as a positive development, fostering a deeper understanding of the interconnectedness between financial performance and environmental stewardship. “The external requirements are a good thing that's helping to drive momentum. However, it hasn't changed our strategy, it has just reinforced what we need to do," says Simon. "As an iconic Australian brand present in roughly 90% of Australian pantries, The Arnott's Group recognises its leadership role in sustainability and we want to lead by example, taking meaningful action and inspiring others along the way," shares Simon.
