Another hurdle for New Zealand farming

JOHN STUART

New Zealand is known as a major exporter of quality products from its farming industries. Our dairy (milk powder, cheese, butter), meat (lamb, mutton, beef), timber (logs and value-added timber products), fisheries (shellfish, frozen fish), fruits (kiwi, avocado, apples) and winery sectors including hops are considered of premium standards worldwide.

These industries are acknowledged for their high standards of sustainability practices and continuous research and development efforts.

Now, with the global sustainability reporting trend, many of our global key partners have actively taken the steps to embrace ESG (environmental, social and governance) via international reporting standards i.e. GRI (Global Reporting Initiatives) or country-specific ESG guidelines. Of note, the European Union has commenced mandatory reporting in 2024.

Such reporting is expected to provide a better understanding of setting and recording achievements in alignment with environmental, social, human rights and company governance. Of importance to the organization when preparing the ESG report must convey all outcomes in a transparent, balanced and accurate manner.

Within the country, the Ministry of Business, Innovation & Employment (MBIE) has undertaken a study on International Developments in Sustainability Reporting in June 2021. The New Zealand Exchange has developed an ESG Guidance in April 2023 for voluntary reporting and the Ministry of Trade & Enterprise (NZTE) has also acknowledged the importance of sustainability reporting for companies trading in international markets. Major exporting companies like Fonterra, T&G and Zespri have taken the initiative and moving forward.

The KPMG global sustainability survey 2022 has ranked New Zealand at 38 out of 58 countries; it is noted that progress of New Zealand companies has been comparatively slower than its key global partners notably, Australia, China and USA. Our major competitors in agricultural exports (Australia, USA, Brazil, Chile and the EU) and processed fish exports (China and Thailand) are also ahead.

It is opportune time now for businesses and industries to review their position with regards to the local and global sustainability development and seriously consider embracing sustainability/ESG reporting as an additional reinforcement of their competitive position.

Anyone wishing to contact Stewart & Leong Consulting can email: stewartleongconsulting@gmail.com

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