KEY: GRI Standard Number: GRI Standard Name (GRI Standard Published Date)

Universal Standards.

GRI 102: General Disclosures (2016)

1. Organisational profile
102-1: Name of the organization

This information pertains to Nufarm Limited (Nufarm) and its subsidiariesThe full list of Nufarm companies can be found on pages 135-138 of our 2021 Annual Report. 

102-2: Activities, brands, products, and services

Nufarm plays an important role in helping farmers deliver food security and improved nutrition to a growing population. 

 

The Food and Agricultural Organisation of the United Nations (FAO) predicts that food production will need to expand by as much as 50 percent by 2050 in some regions of the world to meet the demands of 9.7 billon people wanting more, higher quality and diverse food.  At the same time, our food production system will be under increasing pressure from climate change impacts, water scarcity, urbanisation, and soil degradation. All of these changes have the potential to reduce the agricultural productivity and availability of land.   

 

Central to our sustainability approach is enabling our growers to produce more from less, responding to the global demand for more food, while at the same time providing products that help them adapt to climate change impacts and minimise unintended environmental consequences.  We do this through a range of crop protection products, Agtech (agricultural technology) and seed technologies. 

 

Crop Protection 

 

We develop, manufacture, and sell crop protection solutions including herbicides, insecticides and fungicides that help growers protect crops against weeds, pests, and disease. We operate primarily in the off-patent market, providing customers with longstanding foundational products and unique formulations. 

 

Crop protection is an essential component of sustainable agriculture, preventing significant crop losses to pests, weeds and disease and improving the quality and quantity of available food.  We manufacture and sell products that enable sustainable farming practices such as no-tillage farming, which reduces on farm fuel consumption by up to 60 per cent, significantly contributes to carbon sequestering, retains soil moisture, and reduces erosion.  

 

In addition to synthetic crop protection products, we also provide a range of fully sustainable crop protection products; products in this category have lower or no human health and environmental impacts and often provide protection against pests by stimulating the plants natural defences.  We estimate that over 6 per cent of our product portfolio is made up of fully or partially sustainable products and its growing.  In the coming year we will direct nearly 20 per cent of our research and development budget to fully or partially sustainable crop protection products, including biologicals.  

 

We partner with leading industry and research organisations around the world to develop and offer new synthetic and biological solutions to meet existing and emerging farmer needs across the lifecycle of our chosen crops.  

 

Significant active ingredients in our products include Glyphosate, 2,4-dichlorophenoxyacetic acid (2,4-D), 2-methyl-4-chlorophenoxyacetic acid (MCPA), Copper, Acetamiprid and Flumioxazin. We sell these in brands such as: Crucial, Gladiator, Credit X-Treme and Weedmaster DST, which are all Glyphosate products, Estercide Xtra and Amicide Advance, which are important 2,4-D brands, Polo is a leading MCPA brand and Champion++, Carnadine, and Panther SC are each significant Copper, Acetamiprid and Flumioxazin brands respectively. While not one of our significant active ingredients we also sell products containing Imidacloprid. Imidacloprid and Glyphosate are both the subject of some public debate and further information on these can be found below. 

 

Agtech 

 

Through our wholly owned subsidiary, Croplands, we manufacture and distribute chemical spray applications solutions for broad acre and horticultural markets.  

 

We have also recently partnered with CROP.ZONE in Europe to develop NuCrop, an electric crop desiccation and weed control solution that uses a conductive liquid and electricity to destroy unwanted plants and weeds. 

 

Seed Technologies 

 

Seed Technologies combines our seed treatment portfolio and the Nuseed business. Our seed treatment products provide protection and treatment for damage caused by insects, fungus, and disease. Nuseed develops unique plant output traits with specific customer benefits. We call this our VALUE BEYOND YIELD® strategy. Nuseed distributes high yielding sunflower, sorghum and canola seed, with sales in more than 30 countries.  

 

Nuseed Omega-3 Canola is processed into our proprietary oil ingredients, Aquaterra® for aquafeed and Nutriterra® for human nutrition markets by our company Nuseed Nutritional.  Nuseed Omega-3 Canola is a sustainable plant-based source of omega-3 rich oil developed specifically for human nutrition and dietary supplement markets.   

 

Nuseed Carinata is an independently certified, scalable, and sustainable non-food oilseed cover crop used in the production of low-carbon fuel. After the crop is harvested the oil is extracted and the co-product is used as a source of traceable non-GMO plant protein. 

 

Products subject to public debate 

 

In some instances, regulatory bodies in one jurisdiction may restrict a product for particular use and these bans may not be mirrored in other jurisdictions. For instance, neonicotinoids are a class of insecticides for which the regulatory requirements in Europe vary considerably to the regulatory requirements in other parts of the world. 

 

Nufarm’s policy is to comply with the regulatory requirements of each of the markets in which we operate. We do not apply the regulatory restrictions or approvals of any one jurisdiction across our global business because each jurisdiction has different factors to consider when assessing products, such as the local agricultural industry and farming practices, local pests and weeds, local environmental conditions, and the availability of alternative solutions. Regulators make risk-based determinations that consider factors unique to their situation. 

 

Glyphosate 

 

Nufarm purchases glyphosate and formulates it with other chemicals for end use. Independent regulators in major agricultural markets where Nufarm sells glyphosate have assessed the risks of glyphosate to humans and the environment. The majority of regulators have determined that glyphosate is safe to use in accordance with label directions. 

 

We believe regulatory decisions should be independent and based on scientific data. We are confident that the scientific data supports the safety profile of glyphosate and continue to support our customers and farmers who use glyphosate products.  We also believe that Glyphosate is an strong enabler of sustainable agriculture as it allows no-till farming.  

 

Safety Data Sheets that provide further information on the safety of our glyphosate-based products can be found on the Nufarm website of the country in which we sell each product. 

 

Imidacloprid 

 

Imidacloprid is a neonicotinoid insecticide (Group 4A) which acts as a neurotoxin on insects, damaging the nervous system when absorbed through contact or ingestion of a treated plant. Currently the second most widely used insecticide in the world, imidacloprid is mainly used in the production of soybean, corn, cotton, vegetables, fruits, nuts, and sugar cane. 

 

Nufarm markets imidacloprid and other neonicotinoid products in all our relevant markets around the world, in a number of formulations targeting foliar, soil and seed treatment applications. 

 

Recent scrutiny of imidacloprid and other neonicotinoids in relation to bee health has resulted in regulators restricting its use in the EU. In North America product labels have been amended to include stewardship guidelines to protect pollinators such as bees. The USA EPA issued their proposed interim decision in February 2020 which outlines the mitigation measures to be considered when using imidacloprid. Nufarm expects minimum business impact, and we will fully comply with any new guidelines imposed once the final decision is issued. We had expected the final decision to be issued in 2020, however this has been delayed and a decision is still pending.  

 

In November 2019, the Australian Pesticides and Veterinary Medicines Authority (APVMA) commenced a chemical reconsideration of neonicotinoid insecticides to review approved actives (including imidacloprid) and their associated registered products. The APVMA has previously evaluated locally available scientific information and published their findings on their website indicating that managed and wild honeybee populations are not in decline in Australia. The Australian chemical reconsideration is now in progress with a decision expected from the regulator by 2023. 

 

There is still significant divergence in scientific views across various industry sectors as to whether or not neonicotinoid insecticides are negatively impacting bee health. This is because there are other contributing factors which vary from country to country, in addition to chemical use, these include diet, biosecurity and biodiversity and climate. Furthermore, some neonicotinoids, such as Acetamiprid, continue to be registered in the EU and other key markets.

102-3: Location of headquarters

Nufarm’s global head office is located at Laverton North in Victoria, Australia.

102-4: Location of operations

We have manufacturing, seed production facilities and sales offices in more than thirty countries. Our twelve crop protection manufacturing facilities are located in eight countries with the locations most relevant to our sustainability disclosures being in Australia, Austria, UK and North America. Nuseed has 15 seed production operations in nine countries with the most significant being in Australia and North America.

 

Our Global Footprint

Nufarm Limited is publicly owned and listed on the Australian Securities Exchange (ASX) (symbol NUF).

102-6: Markets served

Nufarm plays an important role in the agricultural sector; helping farmers improve crop efficiency through the development and sale of crop protection and seed products. These farmer’s purchase our products from our primary customers, who are distributors of agricultural inputs and advice.

  

Crop Protection 

 

Our crop protection business is focused on five core crops across key geographies. Our core crops are soybean; corn; cereals; trees, nuts, vines, and vegetables (TNVV) and pasture, turf and ornamentals; and our businesses are focused on Europe, North America, and Asia Pacific; selling into almost 100 countries globally.

 

 

Seeds Technology 

 

Our seeds business operates in the same regions as our crop protection business plus also has important markets in Latin American.  Our core seeds are Canola, Sunflowers, Sorghum and Carinata, as well as Aquaterra® and Nutriterra®, which we produce from our Nuseed Omega-3 Canola.   Our Seeds business has customers in more than thirty countries across these key regions. 

 

102-7: Scale of the organization

A summary of some key organisational measures and performance has been included below, full details are available in our 2021 Annual Report. number of entities included in these statements are not covered by the environmental data in our sustainability report; however, it is estimated that this sustainability report addresses 90 per cent of Nufarm’s environmental footprint. 

 

 

The company has strategic alliances with a number of agricultural and chemical companies, including Sumitomo Chemical Company Limited. Sumitomo is one of Nufarm’s major shareholders with 15.9 per cent of Nufarm Ltd shares. Other major shareholders include HSBC Custody Nominees (Australia) Limited 27.4 per centCiticorp Nominees Pty Limited with 15 per cent and JP Morgan Nominees Australia Pty Limited with 10.9 per cent.

 

 

 

102-8: Information on employees and other workers

At the end of our 2021 financial year, we employed 2,678 people compared with 2,668 at September, 2020 (2,702 at July 2020) across five regions. 

 

a. The total number of employees by employment contract and gender: Most of our workforce remain full time with 89 per cent permanent employees (2020: 88 per cent). While women make up 26 per cent of our workforce, they only make up 8 per cent of our non-permanent workers. 

 

 

b. The total number of employees by employment contract and region: Through 2021 we have had ongoing regional and global transformation projects; this has continued to increase efficiencies in our business operations and has seen the transition of roles and new skill sets. 

 

 

c. The total number of employees by employment type and gender. Where the nature of the role allows it, we support flexible work arrangements with 2 per cent of our workforce operating with part time arrangements down from 3 per cent in 2020 significant increase in flexible working arrangements has been initiated due to Covid-19 and we continue to operate with remote and flexible working. The introduction of flexible working guidelines encourages flexible work beyond the pandemic and is part of a more inclusive work environment. 

 

d. We employ casual and contract labour for short periods of time to support manufacturing activities such as labelling and packing during periods of high seasonal demand. We also engage the professional services of contractors who have unique knowledge or skills to support specific project activities. These include, but are not limited to, management accountants, environmental consultants, lawyers, engineers, and information technology experts. We do not have an information system that records the number of people or hours worked by professional services and other technical contractors. 

 

e. We estimate an additional 15 per cent of the full time equivalent (FTE) workforce was employed in seasonal contract roles across all of our manufacturing locations this year. This is consistent with last year. 

 

f. Employee data presented here has been sourced from our global human resource management system and local payroll systems. 

 

Further details about our employees can be found on pages 41 to 42 of our 2021 Annual Report

102-9: Supply chain

We operate a global manufacturing and distribution platform with an extensive network of local distributors. This provides us with the benefits of global scale while delivering a responsive service to customers wherever they are located, which is critical given the weather dependent nature of cropping and related crop protection product demand patterns. 

 

Crop protection 

 

Nufarm has twelve crop protection manufacturing facilities located in eight countries with the most significant locations being in Australia, UK, and North America. Nufarm synthesise key active ingredients used in crop protection, the most significant being 2,4-dichlorophenoxyacetic acid (2,4-D), 2-methyl-4-chlorophenoxyacetic acid (MCPA) and Mecoprop-p. We synthesise MCPA and Mecoprop-p at our facility in Wyke, UK and 2,4-D at our facility in Laverton North, Australia.  Up until March 2021 we also synthesised 2,4-D at our facility in Linz, Austria.  For half of the reporting year, this site was a significant location in terms of its contribution to our material sustainability topics.  

 

Our manufacturing sites use both the active ingredients we synthesises and other, purchased, active ingredients to formulate our broad range of herbicides, insecticides, and fungicides.  

 

We pack our products into a range of pack sizes to suit on-farm application and we primarily sell to distributors who sell directly to growers and who offer other agricultural inputs and advice. 

 

Supplier location is just one of many considerations we evaluate when sourcing chemicals and packaging materials. We have significant suppliers located through Europe, China, India, North America, and Australia, and more than 3,000 suppliers located in over 40 countries. Like us, most of our suppliers are a part of the global chemical industry, a heavily regulated industry that employees a modest sized but skilled workforce to operate sophisticated processing equipment. The cost of the raw materials is the most significant component of the products we manufacture. 

 

In 2021, our global procurement organisation operated out of two key hub locations in Australia and China. 

 

Seed Technologies 

 

Our seed technologies business combines our seed treatment portfolio and the Nuseed business. Our seed treatment products provide protection and treatment for damage caused by insects, fungus, and disease.  Nuseed produces canola, carinata, sunflower and sorghum seed which are available to growers through local sales, distribution, and retail networks specific to each Nuseed region – Australia, Europe, North America, and Latin America.  

 

We develop seeds using our own inhouse research and development team as well as through collaboration with industry and government agencies.  Nuseed has seven seed R&D centres and three innovation centres in six countries with the most significant being in Australia, Latin America, and North America.  

 

Once seeds are bred, our supply chain advances them through several production stages each of which progressively narrows the seed selection to the best performing seeds and increases their volume. This process takes several years and allows us to grow sufficient quantity of the best quality seeds for commercial production. Nuseed contracts directly with local growers to use their land to grow our seeds.  We also carry out seed cleaning, sizing, treating, and packing activities.  

102-10: Significant changes to the organization and its supply chain

During our 2021 financial year there have been some significant changes in our organisation: 

 

I. In June 2020 we announced two significant operational changes with the planned closure of our Raymond Rd site in Laverton North, Australia and the cessation of synthesis operations at our Linz site in Austria.  All production activities ceased at our Raymond Rd site at the end of 2021 and site closure activities will be finalised in 2022 – 2023.  The site is undergoing a public sale process. 2,4-dichlorophenoxyacetic acid (2,4-D) synthesis production ceased at our Linz site in March 2021 while other production activities continue.  Sustainability measures for both sites are reported here. 

 

II. There have been no significant changes in our share capital structure this year. 

 

III. There have been no significant changes in our supply chain or relationships with suppliers this year. 

102-11: Precautionary Principle or approach

Our approach to sustainability focuses on the following areas: 

 

Supporting sustainable agriculture: We recognise the challenges farmers face in using limited natural resources in a sustainable way while responding to climate volatility and growing pressures on biodiversity. We are committed to understanding these challenges and developing solutions that will advance change throughout the value chain and within our own organisation. 

 

Health, safety, and wellbeing: Our most important priority is to ensure that every colleague goes home safely every day. We work toward achieving this by embedding processes that identify risks, implementing risk reduction measures, and fostering a culture where people’s health and safety is front of mind in all we do. 

 

Reducing our environmental footprint: We work to reduce our resource consumption and minimise adverse environmental impacts from our operational activities through robust environmental management systems and a risk-based approach. 

 

Empowering our people: Our people and culture play an important role in delivering on our strategy and meeting community expectations. We aim to provide an inclusive and diverse work environment where individuals are valued for their diversity and empowered to reach their full potential. 

 

Conducting our business with integrity: We recognise that trust is at the foundation of relationships. We strive to work with integrity and do what is right. We take accountability for our decisions and our actions. 

 

This is reinforced by the commitment we make to sustainable business behaviours in our Code of Conduct, our Human Rights Policy, our Anti-Bribery and Anti-Corruption Policy and our Whistle-blower Policy and also our company values (see section GRI: 102-16), where We Respect others – colleagues, customers and stakeholders -and our environment. We care for all of our resources.  

We have a companywide risk management framework (see section GRI: 102-29). At our major hazard facilities, we have established an extremely low plausible risk threshold for potential accidents that could cause fatalities or impact the surrounding environment or community. All of our manufacturing sites identify their actual and potential risks and manage these to as low as reasonably practicable. We embed best environmental practice into our corporate environmental standards and procedures, exceeding regulatory requirements where possible. 

102-12: External initiatives

This year, to demonstrate our commitment to sustainable agricultural and production processes and to continue to drive improvement through our business, we aligned to the United Nations Sustainable Development Goals (SDGs), which set the global sustainability ambition for 2030. 

 

SDG 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture and SDG 12: Ensure sustainable consumption and production patterns, both align with our core-competencies and as manufacturers of sustainable agricultural solutions represent where we contribute the most to these global ambitions. 

 

SDG 13: Take urgent action to combat climate change and its impacts, SDG 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development and SDG 15: Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss, reflect the areas of the environment where we actively work to minimise any potential impacts from our products and operations. 

 

Together, these SDG’s reflect the balance Nufarm strives to achieve when needing to feed a growing population while protecting our precious environment and responding to climate change. 

   

Our crop protection manufacturing sites in Merak, Indonesia, Port Klang, Malaysia, Linz, Austria, Gaillon, France and Wyke, UK are all certified to IS014001 for best practice Environmental Management Systems.  This year Nufarm’s Board approved our target to certify all of our crop protection manufacturing sites to this standard by 2025. 

 

Our Nuseed Omega-3 Canola is certified under Excellence through Stewardship, which ensures the highest standards of traceability and responsible biotechnology stewardship from soil to oil. 

 

Our Nuseed Nutritional business is a signatory member of the United Nations Global Compact, supporting the ten principles of the United Nations Global Compact on human rights, labour, environment, and anti-corruption. Nuseed Nutritional is committed to making the UN Global Compact and its principles part of the strategy, culture, and day-to-day operations, and to engaging in collaborative projects which advance the broader development goals of the United Nations.

   

Both Nuseed Nutritional products, Aquaterra® and Nutriterra® are making positive social, environmental, and economic impacts; contributing to these goals through advanced plant genetics that preserve ocean resources, rebuild soil, improve farmer livelihoods, and nourish people.   Aquaterra® and Nutriterra®  are produced from the world’s first plant-based source of long chain omega-3 fatty acids and were each certified as a Friend of the Sea this year

 

Friend of the Sea is a global certification standard established by the World Sustainability Organisation for products and services that respect and protect the marine environment.  The label is the aquaculture industry’s most trusted identifier of responsible seafood and omega-3 production, awarding sustainable practices in Fishers, Aquaculture, Fishmeal and Omega-3.

 

The World Sustainability Organisation also administers the Friend of the Earth® certification for sustainable production of crops with respect to safeguarding the ecosystem, protection of wild fauna and flora, protection of soil and water resources, prohibition of the use of dangerous substances, responsible waste and energy management, social responsibility of the whole chain and legal compliance. Aquaterra® and Nutriterra® were measured against these standards to earn the Premium Plant-based designation from Friend of the Sea.

   
102-13: Membership of associations

As a part of our commitment to the responsible development and use of our products, we are a member of CropLife and belong to a range of regional and global taskforces that provide technical information relating to various products.  These include the 2,4-D Taskforce in North America and Europe, the MCPA Taskforce in Europe, the Glyphosate Renewal Group (GRG) and the Joint Glyphosate Task Force in North America. 

 

To support ongoing safe and sustainable production, our manufacturing sites have memberships to numerous chemical, health and safety and environmental organisations, some examples include: Chemical Industries Association (CIA)Chemistry Australia, Responsible Care Indonesia, Chimie France, Crop Protection Association UK, Chlorine Covenant Group UK, Chamber of Commerce Austria, Union de industries de la protection des plantes (UIPP) France, UK Medical and Healthcare Regulatory Authority, Australian Environment Business Network (AEBN) and National Institute of Occupational Health and Safety (NIOSH) Malaysia. 

2. Strategy
102-14: Statement from senior decision-maker
A Message from Managing Director and CEO
 

By 2050, food output will need to expand by as much as 50 per cent in some parts of the world to meet the demands of 9.7 billion people wanting more, higher quality and diverse food. At the same time, our food production system will be under increasing pressure from climate change impacts, water scarcity, urbanisation, and soil degradation.

 

The importance of increasing productivity on land is clear. 

Not increasing productivity to meet growing food needs will mean the need to clear more land. The destruction of native vegetation that this entails will only worsen the climate problem.

 

At Nufarm, we focus our efforts where we can have the greatest influence. Central to our sustainability approach is enabling our growers to produce more from less, responding to the global demand for more food, while at the same time providing products that help them adapt to climate change impacts and minimise unintended environmental consequences.

 

The products that Nufarm supplies are supportive of and consistent with increased sustainability in agriculture and simultaneously help us meet the challenge of feeding the world.

 

One of the key tools that enhances productivity and sustainability at the same time is modern crop protection technology. Without the benefits of modern herbicides, for example, farmers would be faced with much lower yields.

 

Another important example of our commitment to sustainability is in our seed technologies business. This business facilitates the growing of crops that positively impact global environmental issues and provides new economic opportunities for farming communities.

 

In 2021, we have continued to broaden our approach to sustainability and more explicitly recognising the role we play in improving the sustainability of modern agriculture.

 

Our 2021 Sustainability Review provides an overview of our key areas of focus. This disclosure against the Global Reporting Initiative’s (GRI) sustainability reporting standard, provides additional detailed information on our approach to key sustainability issues and analysis of our performance for the year.

 

Thank you for your interest in this important area. I look forward to continuing to update you on Nufarm’s progress and welcome feedback and engagement on our approach.

 

Greg Hunt

Managing Director and Chief Executive Officer

102-15: Key impacts, risks, and opportunities

The Board is committed to identifying, assessing, monitoring, and managing its material business risks. The company recognises a number of sustainability risks related to its crop protection and seeds businesses: 

 

Strategic 

 

Climate: As an input supplier to global agriculture, demand for crop protection products and seed is influenced by climatic conditions that help determine the timing and extent of cropping activity as well as weed, pest, and disease pressures. The magnitude and frequency of significant weather events will increase, and their volatility will make them hard to predict. Agriculture, and the wider food production system, is already a major source of greenhouse gas emissions and growers are acting, either voluntarily or as mandated by government policy in their local area, to reduce their greenhouse gas emissions and reduce their carbon footprint. Transition risks include changes to product demand driven by adaptation policy and regulation, operational changes driven by fossil fuel and carbon footprint reduction and/or compliance with policy and regulation and operational costs driven by suppliers passing on transition costs. Physical risks include changes in product demand driven by climate unsuitability by acute physical events and impacts on supply chain and operations driven by acute and chronic physical events. 

 

Demand for new/different products and supporting manufacturing capability: Regulatory policies can have an impact on the availability and usage of crop protection products and, in some cases, can result in the restriction or removal of certain products from the market, which may have a material adverse effect on the financial performance of Nufarm. Over time, our synthetic crop protection products may become less commercially viable in certain markets. This may bring the opportunity to increase our biological and other sustainable solutions presence in those markets.  

 

Capability to execute strategy: Whilst the impact of Covid-19 has not been significant on our business operations, the flow-on effect of this pandemic on how and where the global population lives and works remains to be seen. Uncertainties around economic policy-setting and the geo-political environment will impact movements around the globe and previously well-established supply chains may continue to be disrupted. The cost of capital may potentially increase. 

 

Operational Sustainability & Compliance 

 

Product contamination/quality: Nufarm manufactures and supplies a range of crop protection products which must be manufactured, formulated, and packaged to exact standards, with strict quality controls. This ensures we meet product regulations; however, it can increase the amount of hazardous wastewater produced at our manufacturing sites. 

 

Workplace safety: Operation of Nufarm’s manufacturing sites across the globe require major hazard facility licences. Operating within these environments can lead to personal injury, loss of life, harm to the off-site environment or disruption to local communities. We also have employees who spend significant time driving on public roads. 

 

Environment harm: The manufacture of our products produces air emissions and waste, which if not properly managed have the potential to cause environmental harm. We consume energy from non-renewable resources and produce greenhouse emissions, contributing to climate change impacts. The improper use of our products has the potential to negatively impact non-target species. If abandoned on farm, used packaging and obsolete product have the potential to contaminate agricultural land and local waterways. 

 

Weather Volatility: As an input supplier to global agriculture, demand for crop protection products is influenced by climatic conditions that help determine the timing and extent of cropping activity as well as weed, pest, and disease pressures. While certain conditions may increase demand for crop protection products, extreme climatic conditions, such as prolonged drought or excessive flooding, may reduce demand for those products. An increase in extreme weather events due to changing climatic conditions could also result in operational disruptions such as physical damage to our manufacturing facilities or disruption to our supply chain for key raw material inputs or delivery of finished goods to our customers. 

 

Human rights and resources: We have a global supply chain, and we recognise that our suppliers operate in countries with different human rights regulatory frameworks than our own. This introduces the potential for indirect human rights impacts in our supply chain and reputational harm. As a global employer we bring together a diverse group of employees which needs to be taken into consideration to ensure all employees are engaged to achieve Nufarm’s goals. Loss of key employees can be disruptive, impacting business knowledge and skills.  

 

Regulatory Compliance: Nufarm’s global footprint requires compliance with government legislation and regulations across all the countries within which we are established to maintain our licenses to operate. New legislation or changes to requirements could have an adverse impact on our operations, financial position or relationship with key customers and suppliers. This includes requirements relating to occupational health and safety, environment, product registration, sanctions and anti-bribery, data privacy, taxation, and review of contractual obligations with key suppliers and customers. 

 

A list of the business risks managed by Nufarm and their potential impacts on stakeholders is set out on pages 26 to 29 of our 2021 Annual Report

3. Ethics and integrity
102-16: Values, principles, standards, and norms of behaviour

Developed by our people and approved by our Executive leadership team, Nufarm lives and breathes our RARE values. 

 

We believe all incidents can be prevented and that we are all responsible for making sure everyone who works at, or visits our sites, goes home safely. Our actions are anchored by our RARE values and guided by our ONE NUFARM behaviours. 

 

Our employees are encouraged to unearth the possibilities, every day. We aim to provide an inclusive work environment where individuals are valued for their diversity and empowered to reach their full potential. This is a reference to our high performing culture and also reflects the three principles of our employee value proposition – own your growth, stay curious and come as you are. 

 

 

Each year we have RARE awards, where employees all over the world are nominated by their peers for their outstanding achievements in embodying Nufarm values in their work. 

 

To further support our values, Nufarm has a Board approved Code of Conduct which guides employees’ decision-making and behaviour. The Code of Conduct has executive ownership through the Nufarm leadership team. New employees are inducted into the code when they join the organisation. The Code of Conduct is supported by policies such as, our Human Rights Policy, our Anti-Bribery and Anti-Corruption Policy and our Whistle-blower Policy. To help our people put our values and Code of Conduct into practice in their day-to-day activities, we have nine employee behaviours. 

 

At the core of our HSE policy is the objective to carry out our business with no adverse effect on our people, the community, and the environment and to strive for sustainable development and continuous improvement. 

 

Our Nufarm behaviours 

102-17: Mechanisms for advice and concerns about ethics

Nufarm has a whistle-blower policy to support our Code of Conduct. This provides a mechanism for current and former employees or their family, suppliers, and other third-party service providers to anonymously report unethical, illegal, or unsafe activity or misconduct. In 2019 we launched an independently operated Integrity Helpline where employees can confidentially raise these types of concerns for resolution.  

 

Our Board Risk and Compliance Committee has oversight of our whistle-blower policy and any information received via this process. 

 

Nufarm maintains a dedicated internal legal team across its key regional operations, which is supported externally as required, and can provide advice to employees on ethical and lawful behaviour if required.  

4. Governance
102-18: Governance structure

Nufarm is committed to high standards of corporate governance and has a range of policies and procedures in place to support this aim. Nufarm is listed on the Australian Securities Exchange and in our financial year 2021, we complied with the fourth edition of the ASX Corporate Governance Principles and Recommendations (ASX Principles). 

 

Board of directors 

 

Nufarm’s highest governing body is the Board of Directors. The Board’s responsibility is to oversee the company’s operations and ensure that Nufarm carries out its business in the best interests of all shareholders and with proper regard to the interests of all other stakeholders. Our Board Charter defines the Board’s individual and collective responsibilities and describes those responsibilities delegated to the Managing Director and senior executives.  

 

Board committees 

 

The Board is supported by four committees: 

 

  • The Risk and Compliance Committee: The Risk and Compliance Committee is responsible for reviewing and reporting to the Board on the effectiveness of Nufarm’s risk framework, (including the health, safety, and environment (HSE) framework), in meeting compliance requirements and ensuring Nufarm is operating within the risk appetite established by the Board. The Risk and Compliance Committee Charter was updated this year to specifically include Environmental, Social and Governance (ESG) responsibilities. 

     

  • The Nomination Committee: The Nominations Committee develop the criteria and framework for Director succession planning to ensure the Board maintains the appropriate size and composition. 

     

  • The Human Resources Committee: The Human Resources Committee is responsible for reviewing and making recommendations to the Board in relation to Nufarm’s Board and executive remuneration strategy, structure, and practice. The committee is also responsible for seeking and approving independent remuneration advisers who provide independent remuneration advice, as appropriate, on Board, Chief Executive Officer, and other key management personnel remuneration strategy, structure, practice, and disclosure. 

     

  • The Audit Committee: The Audit Committee is responsible for the integrity of Nufarm’s financial statements and the effectiveness of Nufarm’s internal and external audit functions.  

     

  • The Innovation Committee: The Board established the Innovation Committee in July 2021 and is responsible for the oversight of Nufarm’s strategy, policies, and procedures with regard to the development and adoption of innovative solutions and technologies in crop protection and seed technologies. It is an advisory body to the Board.
102-19: Delegating authority

The Board has delegated authority for the management of Nufarm’s sustainability aspects to the Managing Director and Chief Executive Officer (CEO).

 

This responsibility is delegated to the CEO’s group executive leaders as per GRI disclosure 102-20. These leaders have regional managers and, in some cases, also site/country managers in their reporting structure who have day to day management of these sustainability issues. Qualified professional subject matter experts provide additional support for the management teams. Nufarm’s global group provides sustainability oversight at a corporate level. 

 

102-20: Executive-level responsibility for economic, environmental, and social topics

Our executive leadership team report directly to Greg Hunt, Nufarm’s Managing Director and Chief Executive Officer and the members of that team with responsibility for economic, environmental, or social topics are:  

 

The Chief Financial Officer, Paul Townsend, is responsible for management of financial matters. 

 

The Group Executive Manufacturing and Supply Chain, Elbert Prado, is responsible for management of health, safety, and environment matters. 

 

The Group Executive People & Performance, John Holding, is responsible for Nufarm’s human resources. 

 

The Group Executive Portfolio Solutions, Rico Christensen is responsible for management of product stewardship matters; and 

 

The Group General Counsel and Company Secretary; Fiona Smith, is responsible for management of risk and compliance. 

 

Paul and Rico both joined Nufarm during our 2021 financial year. 

102-22: Composition of the highest governance body and its committees

Our Board members are selected for their experience and skills to ensure the Board properly discharges its responsibilities.  

 

During our financial year 2021, the composition of Nufarm’s Board of Directors was as follows: 

 

Skills Matrix 

During 2021, as part of the ongoing succession planning for the Board, the Nomination Committee continued to review the Board skills matrix which took into consideration the skills and experience the Board currently requires but also the skills and experience that will be required for the Company during its next phase of development. The Board skills matrix and the assessment of the current Directors is included in the following table. 

 

102-23: Chair of the highest governance body

John Gillam was appointed Chairman on 24 September 2020, succeeding the prior Chairman Donald McGauchie. 

 

The Board also appointed Lynne Saint and Dr David Jones as new independent Non-Executive Directors on 18 December 2020 and 23 June 2021 respectively. Anne Brennan retired as an independent Non-Executive director on 18 December 2020 and Frank Ford advised of his intention to retire at the 2021 Annual General Meeting on 17 December 2021. 

102-24: Nominating and selecting the highest governance body

Nufarm has a Board Nomination Committee which reviews and undertakes appropriate background and screening checks into potential new Board members prior to their appointment. The committee considers the range of qualifications, experience, expertise and diversity of a potential Director to ensure the Board maintains an appropriate skills mix. 

 

When considering new appointments to the Board, the Nomination Committee oversees the preparation of a role description which includes the key attributes identified in the Board Charter and the relevant skills required taking into account the current Board skills matrix, and the Inclusion and Diversity Policy. Based on their findings, the committee will recommend a potential candidate to the Board of Directors. 

 

Either the Board or the company can appoint a Director. All Directors appointed by the Board to a casual vacancy are required to stand for election at the first annual general meeting following their appointment. All Board members are required to submit themselves for re-election at the annual general meeting of shareholders if they wish to continue to hold their position beyond three years. The Board has a non-executive Director tenure policy that provides for non-executive Directors to retire after nine years (or twelve years in the case of a Chairman who has served in the role of Chair for less than six years) from the first date of election of shareholders.

 

Further information on these processes can be found in our 2021 Corporate Governance Statement on page 33-36 of our 2021 Annual Report

102-25: Conflicts of interest

Board members must identify any conflicts of interest they may have in dealing with the company’s affairs and then refrain from participating in any discussion or voting on these matters. Directors and senior executives must disclose any related party transaction in writing. Information on cross Board memberships and major shareholdings is made publicly available to interested parties as it arises through our Annual Report and statements released to the ASX.    

 

During 2021 the Board formalised its procedure for dealing with conflicts of interest by approving a Conflict-of-Interest Policy to ensure that Directors and senior officers disclose any conflicts of interest and that any conflicts are appropriately addressed. 

 

Further information on this policy can be found in our 2021 Corporate Governance Statement on page 36 of our 2021 Annual Report

102-26: Role of highest governance body in setting purpose, values, and strategy

The Board is responsible for approving economic, environmental, and social strategies, policies, and goals.  This year the Board approved Nufarm’s Climate Change PolicyHuman Rights PolicyAnti-Bribery and Anti-Corruption Policyand refreshed our Code of Conduct.  

 

Nufarm’s Health, Safety and Environment Policy was developed by senior employees and approved by Nufarm’s Chief Executive Officer (CEO).   

 

The Board Risk and Compliance Committee review key safety metrics and health, safety, and environment compliance performance. 

 

The Board approved Nufarm’s 2020 Modern Slavery Statement our 2021 Annual Sustainability Review. This 2021 GRI Content and Index was approved by Nufarm’s Chief Executive Officer.

102-28: Evaluating the highest governance body’s performance

The Board is committed to regularly reviewing its own performance and effectiveness as well as those of the Committees and individual Directors. The Board conducted an externally facilitated review in FY2020 and undertook a self-assessment in FY2021. Each Board Committee undertook an assessment of their performance during FY2021 and were satisfied that they were discharging their responsibilities as set out in their respective Charters. An assessment of director performance is undertaken by the Nomination Committee with feedback sought from all Directors prior to the Board considering recommending a director for election or re-election to shareholders. Further information can be found in our 2021 Corporate Governance Statement on page 37 of our 2021 Annual Report. 

102-29: Identifying and managing economic, environmental, and social impacts

The Board is responsible for the company’s risks and has delegated the oversight of Nufarm’s companywide risk management framework to the Board Risk and Compliance Committee. This Committee is responsible for overseeing and monitoring the identification, assessment, management, prioritisation and reporting of financial and non-financial risks that are material to the operations and achievement of Nufarm’s strategy. The Charter was updated this year to specifically include Environmental, Social and Governance (ESG) responsibilities. 

 

Our risk management framework is an important control for protecting shareholders, stakeholders and our own people from adverse risk events and has been designed to support the achievement of our strategic objectives. It is a structured and proactive process which identifies and assess risks, including those resulting from potential financial, environmental, and occupational health and safety impacts. 

 

Our risk management process is to identify and assess risk, respond to the risk through risk treatment strategies then monitor the success of our approach and the effectiveness of control measures. Risks are systematically identified at different levels of the business (site, region, global) as well as across the different functional departments. There is a formal reporting mechanism through to our Executive Risk, Health, Safety and Environment Committee, and our Board Risk and Compliance Committee and ultimately the Board. The Group Risk Policy and Group Risk Management Framework were updated this year, with a greater focus on leadership and culture and integration of risk management into core business activities and decisions. 

 

We have an independent internal audit process to provide risk and compliance management assurance. The Board has delegated oversight on the effectiveness of the internal audit function and internal controls to the Board Audit Committee. Both the Board Risk and Compliance Committee and Board Audit Committee are chaired by Independent Directors. 

102-30: Effectiveness of risk management processes

Our Board Risk and Compliance Committee has been tasked by the Board to assess the effectiveness of our risk management framework, including whether it is operating within the risk appetite set by the Board and whether Nufarm’s management is taking corrective actions for risks that fall outside the agreed risk appetite level. These risks include those arising from relevant environmental, social and governance impacts. 

 

The Board Risk and Compliance Committee is an advisory body only and will report findings and recommendations to the Board. 

102-31: Review of economic, environmental, and social topics

Nufarm’s Board meets as often as required and during FY2021 met 11 times including a Board strategy session. Health safety and environment performance is reviewed at every Board meeting and significant economic, environmental, or social issues are tabled and discussed as they arise. 

 

The Board Committees that support the Board; the Risk and Compliance Committee; the Nomination Committee; the Human Resources Committee; the Audit Committee and the Innovation Committee meet at least three times per year.  The Risk and Compliance Committee is specifically tasked with reviewing relevant environmental, social and governance risks and impacts at each of its meeting. 

102-32: Highest governance body’s role in sustainability reporting

The report was reviewed and approved by Nufarm’s Chief Executive Officer.

102-33: Communicating critical concerns

Critical concerns are reported to the relevant Group Executive and the appropriate Board Committee; critical sustainability concerns are reported to the Board Risk and Compliance Committee and if appropriate, delegated to management to resolve with ongoing reporting until their resolution to the appropriate Board Committee.

102-34: Nature and total number of critical concerns

There were no critical sustainability concerns reported to the Board Risk and Compliance Committee this year.

102-35: Remuneration policies

Nufarm’s remuneration framework seeks to motivate executives and employees to create value for shareholders in a manner consistent with the company’s values. 

 

The framework is based on the principle of rewarding performance that manages inherent industry volatility, improves shareholder outcomes, and strengthens the business to deliver long term value. The Board adapts the framework to respond to stakeholder feedback and the needs of the business. 

 

Key Management Personnel 

 

At Nufarm, our Executive Key Management Personnel (KMP) are those people with authority and responsibility for planning, directing, and controlling the activities of Nufarm.  

Nufarm’s remuneration strategy and reward frameworks reflect the importance of improving the performance of the business and lifting returns on funds employed, as well as supporting a goal to attract, motivate and retain a high performing workforce. 

 

Fiscal year 2021:

 

Our Executive key management personnel (KMP’s) were remunerated through both fixed and variable pay mechanisms; fixed annual remuneration (FAR), short term incentive (STI) and long-term incentive (LTI). FAR includes cash remuneration and superannuation. The core elements of Nufarm’s remuneration strategy and policy for the Executive KMPs for our financial year 2021 were: 

 

  • A continued focus on managing working capital, profitability and improving returns on funds employed which is fundamental to the way in which Nufarm operates and is therefore a key element of the way performance is measured and assessed at a group level. 
  • An overall framework underpinned by the core principles of driving business objectives, creation of value, simplicity, flexibility, line of sight and retention.
  • An STI plan which rewards year on year growth, profitability, cash flow management, and selling, general and admirative (SG&A) expenses to maintain a focus on cost control. The STI program also rewards delivery of personal or team objectives. Objectives were driven by Nufarm’s strategy and the goals to deliver on sustainable innovation and business discipline across the business, these may focus on relevant economic or environmental topics and safety performance.
  • An LTI plan which creates long term value for the organisation and shareholders.

 

The Board Human Resources Committee (HRC) reviews Executive KMPs’ remuneration annually to ensure there is a balance between fixed and at risk pay, and it reflects both short-term and long-term objectives aligned to Nufarm’s strategy. The Board reviews the Chief Executive Officer’s (CEO) remuneration based on market practice, performance against agreed measures and other relevant factors. The CEO undertakes a similar exercise in relation to senior executives. The results of the CEO’s annual review of senior executives’ performance and remuneration are subject to Board review and approval. Within the remuneration framework the Board has discretion to ‘clawback’ LTI plan and STI (cash and equity). This year, the Board through the Human Resource Committee (HRC) appointed Egan Associates as a remuneration consultant to provide a remuneration recommendation for Executive KMP for FY22.

 

Outlook for fiscal year 2022:

 

From 1 October 2021, a summary of Executive KMP remuneration is as follows:

The EIP payout is set annually as a percentage of FAR or base salary with a focus on four main performance elements:

Non-financial strategic objectives include Environmental, Social & Governance (ESG) ones. Full details of our FY22 remuneration policy can be found on pages 60-61 of our 2021 Annual Report.

 

 

The company has employment contracts with the CEO and Executive KMPs which have been structured to be compliant with the termination benefits cap under the Corporations Act. The company may terminate the contract of the CEO and Managing Director by giving six months’ notice, in which case the CEO would be entitled to a termination payment of twelve months FAR inclusive of any notice paid in lieu. The contract also provides for payment of applicable statutory entitlements. The company may terminate the contract of other executives by six months’ notice in which case a termination payment equivalent to twelve months FAR will be paid including notice period paid in lieu. 

 

Board of Directors 

 

Nufarm’s operations are managed under the direction of the Board. The Board oversees the performance of Nufarm management in seeking to deliver superior business and operational performance and longterm growth in shareholder value. The Board recognises that providing strong leadership and strategic guidance to management is important to achieve our goals and objectives. 

 

Fees for Nonexecutive Directors (NED) are set at a level to attract and retain Directors with the necessary skills and experience to allow the Board to have a proper understanding of, and competence to deal with, current and emerging issues for Nufarm’s business. The Board seeks to attract Directors with different skills, experience, expertise, and diversity. Additionally, when setting NED Director fees, the Board considers factors such as external market data on fees and the size and complexity of Nufarm’s operations. The Nonexecutive Directors’ fees are fixed, and NED Directors do not participate in any Nufarm incentive plan. 

 

Remuneration policies and fiscal year 2021 rewards for both key management personnel and Directors are disclosed fully on pages 53 to 73 of our 2021 Annual Report.

 

102-36: Process for determining remuneration

We use a global remuneration framework to govern employee remuneration decisions and practices. The framework adopts a principal of equal pay for equal work and determines remuneration levels based on factors including job description, local market remuneration rates, the skills and experience of the employee and criticality of the role. We engage external services from independenremuneration specialists or market data providers on a case-by-case basis.

102-37: Stakeholders’ involvement in remuneration

The Board’s policy regarding Nonexecutive Directors (NED) remuneration is to position Board remuneration at the market median with comparably sized listed entities. Nufarm shareholders are provided with details of remuneration for Executive Key Management Personnel on an annual basis and are invited to vote on the remuneration report at the company’s Annual General Meeting (AGM).

At our December 2020 AGM, 80.78 per cent of votes cast approved adoption of the remuneration report and 19.22 per cent voted against adoption of the financial year 2020 remuneration report.  In the remuneration report for the performance period 1 October 2020 – 30 September 2021, 95.3 per cent of votes cast approved adoption of the remuneration report and 4.7 per cent voted against adoption of the remuneration report. 

 

From time to time, meetings are also held with individual investors and proxy advisor firms to seek feedback on remuneration structures and planned changes to those structures. 

5. Stakeholder engagement
102-40: List of stakeholder groups, 102-43: Approach to stakeholder engagement and 102-44: Key topics and concerns raised

In the course of our business, we engage with the stakeholder groups shown below. We are working to incrementally expand upon our initial materiality study, which was undertaken in 2017. Last year we refreshed it, engaging both internal and some external stakeholders; in particular, key customers and financiers. This year we broadened the study again, engaging with investor groups. 

 

The materiality study showed that issues around sustainable agriculture resonated the most strongly with all of our external stakeholders. Our customers viewed customer relations and having products with a lower environmental footprint as very important to them. Our financiers rated compliance very highly while emphasising the importance of transparency.  Our investors considered the governance frameworks that ensure we conduct our business ethically and lawfully as  very important to them.  The safety of our own people and that of our customers and communities, continues to be recognised as a key issue with both internal and external stakeholders. 

 

Our material sustainability topics can be found in GRI disclosure 102-47.

 

102-41: Collective bargaining agreements

Our Board approved Human Rights Policy recognises and respects employees’ rights and freedoms to join or not to join organisations of their choosing, to associate freely and bargain collectively. This year we estimate at least 24 per cent of our employees were covered by a collective bargaining agreement; these employees are primarily based at our manufacturing sites; this is down from 28 per cent last year.

 

Our approach to freedom of association and collective bargaining is outlined in GRI disclosure 407. 

102-42: Identifying and selecting stakeholders

We engage with the stakeholders who we have a direct relationship with, who are potentially impacted by our activities or who have the potential to impact upon our business or operations. These stakeholders include employees, customers, investors, suppliers, government regulators, industry groups, local communities and non-government organisations.

102-43: Approach to stakeholder engagement

Refer to GRI disclosure 102-40.

102-44: Key topics and concerns raised

Refer to GRI disclosure 102-40.

6. Reporting Practice
102-45: Entities included in the consolidated financial statements

This provides information about the sustainability practices and performance of Nufarm’s businesses including wholly owned subsidiaries. A full list of the entities included in our consolidated financial report can be found on pages 135-138 of our 2021 Annual Report.

 

A number of entities are included in these statements that are not covered by the environmental data in these reports; however, it is estimated that this sustainability report addresses 90 per cent of Nufarm’s environmental footprint.

102-46: Defining report content and topic Boundaries

The content of this GRI Content and Index was informed by the approach set out in the Global Reporting Initiative (GRI) standard for identifying material topics. 

 

In defining the initial sustainability topics for evaluation, we undertook a desktop study of external sources, including analyst reports, media, industry bodies and some peers and also internal Nufarm documents, such as our internal strategies and internal and external communications.  

 

These topics were validated by senior business leads, then assessed for materiality and priority with internal and external stakeholders via a survey. These groups were asked to evaluate the significance of the sustainability topics to: 

 

  • Nufarm’s business: identifying the issues that have the greatest long-term impact on our ability to deliver our strategies considering the potential and actual social, economic, and environmental impacts of our business. 
  • The stakeholder: when making decisions or assessments about their long-term relationships with Nufarm.



These findings were again validated with senior business leads and members of our executive management team and are summarised in GRI disclosure 102-47. 

 

The material topics fall within Nufarm’s supply chain, operations and also the use of Nufarm’s products by growers.  

102-47: List of material topics

Our material topics & summary response

The following material topics have guided the content of this report.

 

Further information on these topics is also available in this GRI Content and Index and also in our 2021 Annual Sustainability Review.

102-48: Restatements of information
102-49: Changes in reporting

There are no significant changes in the material topics and topic boundaries this year. 

102-50: Reporting period

Our GRI content and index provides information about the sustainability practices and performance of Nufarm’s businesses including wholly owned subsidiaries for the year 1 October 2020 to 30 September 2021 (referred to in this report as 2021). This reporting period aligns with our financial reporting for 2021.  

 

In July 2020, Nufarm changed our financial year end from 31 July to 30 September to better align the half year reporting period with our key sales periods. Reporting periods prior to 2021 represent the year 1 August to 31 July. 

102-51: Date of most recent report

Our most recent, previous Sustainability Review and GRI Content and Index were both released in December 2020for our 2020 financial reporting year.  

102-52: Reporting cycle

Nufarm has a 12-month reporting cycle.

102-53: Contact point for questions regarding the report

For further information about this GRI Content and Index, please contact Nufarm’s head office on +61 (0) 3 9282 1000. 

102-54: Claims of reporting in accordance with the GRI Standards

This document has been prepared in accordance with the Global Reporting Initiative’s (GRI) Sustainability Reporting Standard, 2018: Core option. Nufarm aims to be open and transparent with our stakeholders about our positive and negative environmental, social, and economic impacts. In keeping with this objective, we are progressively working towards a report that is prepared in accordance with GRI’s comprehensive option and address these disclosures here where we can. 

Further information relating to our sustainability approach and performance is communicated through our website (www.nufarm.com), our Annual General Meeting, our 2021 Annual Sustainability Review and disclosures to the Australian Securities Exchange (ASX). 

102-55: GRI content index

To aid transparency, we have prepared this GRI Content and Index website in the format of the GRI content index.  

102-56: External assurance

This GRI Content and Index and our 2021 Sustainability Review have both been verified internally in accordance with Nufarm’s Statement on verifying unaudited periodic corporate reports

Nufarm obtained external assurance for the financial data reported in our 2021 Annual Report, excerpts of which are included in GRI disclosure 102-7.  

Topic-specific Standards

GRI 200: Economic

GRI 201: Economic Performance (2016)
201-1: Direct economic value generated and distributed

The economic value of our business extends beyond our own financial performance. Our contribution includes the direct employment of 2,678 people, along with the indirect employment that comes with significant operating locations, support of farming practices to improve efficiency and productivity, the support of local suppliers, capital investment programs, payment of taxes and contribution to local communities.  

201-2: Financial implications and other risks and opportunities due to climate change

This year the Nufarm Board adopted its first Climate Change Policy and agreed to commence work on improving our disclosures on how climate change may impact our organisation and the communities we are part of, progressing towards the framework contained in the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. 

 

As an input supplier to global agriculture, demand for crop protection products and seed is influenced by climatic conditions that help determine the timing and extent of cropping activity as well as weed, pest, and disease pressures. The magnitude and frequency of significant weather events will increase, and their volatility will make them hard to predict. Agriculture, and the wider food production system, is already a major source of greenhouse gas emissions and growers are acting, either voluntarily or as mandated by government policy in their local area, to reduce their greenhouse gas emissions and reduce their carbon footprint.  

 

Transition risks include changes to product demand driven by adaptation policy and regulation, operational changes driven by fossil fuel and carbon footprint reduction and/or compliance with policy and regulation and operational costs driven by suppliers passing on transition costs. Physical risks include changes in product demand driven by climate unsuitability or acute physical events and impacts on supply chain and operations driven b acute and chronic physical events. 

 

Further details of our climate related risks and opportunities can be on pages 15 to 17 of our 2021 Annual Report. 

201-3: Defined benefit plan obligations and other retirement plans

While retirement benefits provided to employees vary between regions and local employment conditions, we contribute to retirement plans for employees, meeting local regulatory requirements as a minimum. Liabilities relating to employee benefits are disclosed in Note 22, on pages 117 to 118 of our 2021 Annual Report

 

Remuneration and remuneration policies for our Board of Directors and senior executives are disclosed in the Remuneration Report on pages 58 to 74 of our 2021 Annual Report. 

GRI 204: Procurement Practices (2016)
103: Management Approach for procurement practices

We source from more than 3,000 suppliers located in over 40 countries. Our most significant suppliers manufacture the chemicals and packaging we use to manufacture our products. Like us, they have the potential for environmental impacts through air emissions, hazardous waste, effluent, resource consumption and greenhouse gas emissions and must manage the potential occupational health and safety risk to their workers from the use of hazardous chemicals. 

 

Our Global Supplier Code of Conduct sets expectations of our suppliers on matters such as business conduct, environmental performance, human rights, child and forced labour and employee health and safety. The code guides our supplier selection and the ongoing evaluation of supplier relationships. 

 

Our Board approved Human Rights Policy establishes a zero-tolerance stance on all forms of modern slavery in our operations and expects our suppliers and contractors in our supply chain share this goal.  

 

We partner with EcoVadis to conduct corporate social responsibility (CSR) assessments of selected suppliers. These assessments evaluate suppliers’ environmental, social, ethical, and sustainable procurement policies, actions, and results. This process helps increase our supply chain transparency and is an important step towards improving the sustainability of our supply chain.  

 

The strict regulatory requirements and complex chemistry associated with the crop protection industry means there is a relatively small pool of suppliers who are registered to supply our active ingredients. Our supply chain strategy has us manufacturing close to our customers and we try to support local suppliers where the materials we need are available in the local market.

204-1: Proportion of spending on local suppliers

Local suppliers are those that are located in the same country as the procuring manufacturing site. This year our manufacturing locations in Australia, Indonesia, Malaysia, Austria, France, the UK, and the US, purchased aat least 19 per cent of their total spend from suppliers located in the same country

GRI 205: Anti-corruption (2016)
103: Management approach to anti-corruption

Nufarm is committed to conducting business with high ethical standards and in full compliance with the law, including all anti-bribery, anti-corruption, and other related laws in all countries in which we operate. Our Code of Conduct requires lawful and ethical behaviour and applies to Nufarm Directors, employees as well as contractors and suppliers when working on Nufarm’s behalf. 

 

In October of 2020 we implemented an Anti-bribery and Anti-Corruption Policy which applies to all Directors, officers and employees of Nufarm. The Policy strictly prohibits the making or receiving of unlawful improper payments, or the giving or receiving of anything of value or improper advantage, to or by any individual or entity with the intent of securing a business advantage for Nufarm to which it is not legally entitled. The policy prohibits improper payments to persons or entities including public officials, any Nufarm customer or any other individual or entity with whom Nufarm does business. Breaches of the Anti-bribery Policy are reported to the Risk and Compliance Committee. 

 

Our Global Supplier Code of Conduct sets out our requirements on suppliers not to provide personnel gifts or benefits to Nufarm representatives and not to engage in actions that could be considered to unfairly influence a Nufarm decision-maker. A Nufarm employee must not request anything of value from a supplier. 

 

In the case that untoward behaviour is suspected, Nufarm provides an Integrity Helpline to allow such behaviour to be reported anonymously and investigated by an impartial party. This is further supported by our whistle-blower policy. 

205-2: Communication and training about anti-corruption policies and procedures

Our regional legal counsel teams provide training at least every two years to sales, marketing and procurement management and staff covering topics relevant to their region such as, competition law and our anti-corruption and anti-bribery policies.

 

New employees are inducted into our Code of ConductLast year we undertook employee awareness activities to accompany the launch of the new Integrity Helpline and we continue to reinforce its use with employees. 

205-3: Confirmed incidents of corruption and actions taken

There have been no confirmed incidents of corruption this year.

GRI 206: Anti-competitive Behaviour (2016)
103: Management approach to anti-competitive behaviour

Nufarm’s Code of Conduct guides our work and represents our commitment to fair, ethical, and professional business practices and legislative requirements. We abide by trade control and sanction laws and do not engage in anti-competitive behaviour. We have legal counsel available in each of our significant regions of operations to provide advice to employees to ensure service arrangements are not anti-competitive. 

We require all Nufarm Directors, employees, contractors, and consultants to be familiar with and uphold the company’s Code of Conduct in all business dealings.  

There have been no legal actions against the company for anti-competitive behaviour, anti-trust or monopoly practice this year.

GRI 300: Environment

Environmental management
103: Management approach to environmental management systems

The key potential environmental impacts of our manufacturing operations relate to soil and groundwater contamination, waste, effluent, and emissions. We manage our impacts through an environmental management system (EMS) comprised of our corporate health, safety, and environment (HSE) policy, corporate standards and procedures. 

 

Our manufacturing sites have environmental management systems that meet local regulatory requirements and align with the more stringent, internal standards that we have set for ourselves.  Our crop protection manufacturing sites in Merak, Indonesia, Port Klang, Malaysia, Linz, Austria, Gaillon, France and Wyke, UK are all certified to IS014001 for best practice Environmental Management Systems. This year Nufarm’s Board approved our target to certify all our crop protection manufacturing sites to this standard by 2025 with our sites in Kwinana and North Laverton, Australia and Chicago Heights, Alsip, and Greenville in the US to still obtain certification. 

 

Our EMS is managed from a corporate level down through to a regional and site level and is supported at each of these levels by qualified and industry experienced environmental professionals. Where the need arises for very specialist advice, we engage appropriately qualified and experienced external consultants to advise on the issues at hand. We provide environmental training to our employees and contractors as a part of their induction program. 

 

We apply the same risk management principles to environmental risks as we do to safety. We systematically evaluate the environmental significance in our aspects and impacts and put control measures in place to reduce environmental risk to as low as reasonably practicable.  Our manufacturing sites have a risk assessed environmental aspects and impacts register in place. 

 

Four years ago, we commenced an environmental improvement program at our manufacturing sites to strengthen and further improve our environmental management systems. This began with each site undertaking an environmental gap analysis against the corporate requirements and implementing gap closure plans. These plans focus on the key potential environmental impacts of our manufacturing sites such as soil and groundwater, waste, effluent, and emissions.  

 

Restrictions limiting personnel and external environmental professionals accessing our sites due to Covid-19 has slowed our progress in closing out the remaining actions over the last 18-months.  However, we have continued to make progress again this year with 98 per cent of the plans completed, up from 88 per cent last year.  

 

Last year we established a corporate environmental audit program at our crop protection manufacturing sites which is an in-depth audit against the requirements of our corporate environmental standards and procedures.  Seven of our crop protection manufacturing sites have participated in an audit.  Covid-19 travel restrictions has disrupted audit plans and the use of external auditors to complete the remaining audits is currently under review.  Sites agree on timelines to close out audit actions and progress is monitored at site, regional and corporate level. 

GRI 301: Materials (2016)
103: Management approach to materials

The majority of materials used in the manufacture of Nufarm’s products are man-made materials such as chemicals and plastic and carboard packaging. We use a wide range of these materials and do not have a global information system that identifies whether the materials are entirely or partially sourced from renewable content. 

 

Safety and environmental protection are front of mind when selecting materials. When developing our products, we prioritise the use of solvents and adjuvants with the lower ecological profile, and where feasible, sourced from natural materials. We apply United Nations (UN) packaging standards to our products to protect them on their journey, so they arrive at our customers in the same condition they left our site, minimising the risk of loss of containment of potentially hazardous chemicals during transit or storage.  

 

Through partnering with local service providers and non-profit organisations we safely collect empty used product containers. These include drumMUSTER in Australia, AG Container Recycling Council (ACRC) in the US, Packmittel-Rücknahme Agrar  (PAMIRA) in Germany and COVADA-Adivalor in France.  These organisations and others like them collect used agricultural chemical packaging from farmers and distributors and recycle the materials. Through these mechanisms, we reduce the impact our products have on landfill space and on non-renewable resources.  

 

We support our customers in taking back old or damaged product either directly, or through organisations such as Agsafe’s ChemClear in Australia and Cleanfarms in Canada. Where possible we rework these material back into new product to the extent allowed by our strict quality standards and product regulatory controls otherwise, we ensure it is appropriately disposed of.  

GRI 302: Energy (2016)
103: Management approach to energy

We undertake two primary types of manufacturing at our operations: synthesis and formulation. Synthesis involves chemical reactions, where formulation is the blending of chemicals. Synthesis activities are more resource intensive, consuming approximately 80 percent of our total energy use. The primary energy consuming activities at our manufacturing sites are:

 

  • boilers, which generate steam to heat materials or provide space heating;
  • electricity for producing chlorine and powering process equipment; and
  • fuel for onsite vehicles, such as forklifts.

 

Our manufacturing site at Wyke, UK has an onsite combined heat and power (CHP) plant which is a very efficient means of generating steam and electricity from gas combustion.

 

We seek to continuously improve the energy efficiency at our manufacturing sites through activities like improving steam systems and upgrading the energy efficiency of equipment and lighting. We also work to reduce the environmental footprint of our products. One of the ways we do this is through the development of higher yield products which are more efficient to transport.

302-1: Energy consumption within the organization and 302-3 Energy intensity

Nufarm’s energy consumption decreased this year  (2.7 per centcompared to 2020 This is primarily due to an extended maintenance shut down at one of our synthesis site and also the closure of our 2,4-D synthesis in Linz, Austria in March this year. 

 

302-2: Energy consumption outside of the organization

Indirect energy consumption outside of Nufarm occurs in both our upstream and downstream supply chains with the most significant consumption due to transportation of raw materials to our manufacturing sites and transportation of finished product to our customers. Nufarm supports our customers and growers with field agronomists and sales team, the nature of these jobs requires our people to drive long distances across the year. The fuel consumed by these vehicles has not been included in the fuel consumption report in GRI disclosure 302-1. We are a global organisation with our head office in Melbourne, Australia, which also necessitates international travel.

 

We do not collect data on indirect energy used outside of our organisation.

302-4: Reduction of energy consumption

During 2021 we undertook third party energy audits at our North American sites. These audits have identified energy efficiency and solar projects which will contribute to our carbon reduction target.  We also completed significant upgrades to a compressor and cooling tower this year at our UK site in Wyke, saving 1,800 GJ of energy. 

GRI 303: Water and Effluents (2018)
103: Management approach to water and effluent

Water and water scarcity were not identified as material issues for Nufarm in our materiality study.  We continue to report water and effluent related information here to support greater transparency.  

303-1: Interactions with water as a shared resource

At our manufacturing sites we withdraw and consume water for: 

 

Production: Many of our products are water based and high-quality fresh water is needed to maintain our product quality standards. Our synthesis operations consume more water and generate more effluent than our formulation activities. All sites use third-party supplied water for production. 

 

Heating: Some of our raw materials are solid at ambient temperatures and need to be melted for formulation and synthesis. Our steam heating systems use third party supplier water which we treat internally to prevent damage to equipment. At most site’s condensate is recycled through the boiler, saving both energy and water. 

 

Cooling: Single-use cooling water is our largest water consuming activity; however single-use cooling water is only used where there is a close and abundant supply of water. Our manufacturing facility at Gaillon in France use local groundwater while our site at Linz in Austria withdraws water from the Danube. Single use cooling water comprises over 85 per cent of our water withdrawal and discharge. Our other manufacturing sites use third-party supplied water for cooling and recycle it.  

 

Cleaning: There are strict quality and regulatory controls on our products that require us to thoroughly clean our production equipment between production campaigns. Where we can, we reuse the water generated from cleaning, however the standards in place can limit the suitability of wash water for recycling and reuse application. 

 

We maximise the return of water to its local catchment to the extent the water quality allows:  

 

Rainwater: We have bunding at our sites to protect soil and water from potential loss of containment. These controls also minimise rainwater run-off, so we have test and release procedures in place for captured rainwater. Our significant sites divert rainwater to their onsite wastewater treatment facilities and smaller sites divert contaminated rainwater to waste. 

 

Cooling water: Uncontaminated single use cooling water is safely released back into the Seine in France and Danube in Austria in line with local environmental licences. Monitoring and third-party impact assessments have determined this has negligible environmental impact on the rivers. 

 

Effluent: Where our sites have access to third-party sewage infrastructure, we have onsite wastewater treatment facilities which allows us to treat and discharge wastewater in line with licence conditions. We have both manual and online monitoring in place to ensure we meet licence condition prior to discharge. Where we discharge to a local sewer, our wastewater undergoes additional treatment before being ultimately released to the environment. 

 

Waste: Our more contaminated water is treated as a waste and is transferred off-site to licenced third party treatment facilities or incineration, as reported in GRI disclosure 306-5. 

 

Each of our manufacturing sites has been tasked with establishing a water stewardship program. The program involves a comprehensive water balance, identification of water related impacts in the catchment area and Nufarm’s influence on these, an assessment of risk, and control measures to manage these risks. This process identifies opportunities for improving the quality or reducing the quantity of our discharged water.  

 

Over the years we have progressively upgraded our wastewater treatment facilities to improve the quality of our discharges. Solvent extraction plants are in place at our sites in Pipe Rd, Laverton and Wyke, UK.  

 

We had no significant impact on natural water bodies from either effluent discharges or run-off from our sites this year. 

 

Indirect water consumption 

 

Our growers mix our product with water to spray it on their crops. We support growers to optimise their water usage by developing multi-action products and products that support more complex tank mixes. This allows growers to achieve their desired outcomes with reduced water and energy use.

There are local regulatory limits in place at all locations where we discharge rainwater, cooling water and effluent and we monitor these to ensure compliance. Our largest facilities have online monitoring which immediately stops effluent from discharging if limits are approached.  

 

In the absence of local regulatory limits, our sites in Victoria, Australia have established ecosystem protection parameters for discharged rainwater to a local creek, applying the methodology set out in the Australian and New Zealand Guidelines for Fresh and Marine Water Quality. Discharges are routinely monitored against these parameters. 

303-3: Water withdrawal and 303-4: Water discharge

We reduced our surface water withdrawal this year by nearly 30 per cent, which is mostly due to the closure of our synthesis operations in Linz, Austria in March 2020.  This was matched by a significant reduction in returned surface water and effluent from the same site.   

 

We have a significant wastewater project ongoing at our site in Wyke, in the UK where we are developing a biological wastewater treatment plant that would allow us to treat our synthesis wastewater on site using a membrane bio reactor (MBR) and UV treatment. This technology was initially trialled in partnership with Cranfield University. Currently, we transport approximately 200ML of wastewater every year to a third-party wastewater treatment facility in a neighbouring county.  This project is progressing through the engineering design and planning approvals phase. 

 

303-5: Water consumption

Consumed water is water that is no longer available for reuse in the communities or ecosystems local to our manufacturing sites. We consume water in our finished product, effluent, steam, and waste.  The reduction in water consumption this year is primarily due to the closure of 2,4-D synthesis at our site in Linz, Austria.

 

 

GRI 304: Biodiversity (2016)
103: Management approach to biodiversity

We locate our manufacturing operations in industrial zones where they have minimal impact upon areas of high biodiversity or protected areas. Each operating site has an environmental aspects and impacts register which considers potential risks to flora, fauna and natural habitats. Where necessary, we implement control measures to reduce the risk to as low as reasonably practicable.

304-1: Operational sites owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity value outside of protected areas

Our crop protection manufacturing site in Gaillon, France, is located in a small industrial zone on the Seine River in Normandy. Areas both on and near to the site have been identified under The Zone naturelle d’intérêt écologique, faunistique et floristique (ZNIEFF) and Natura 2000.

 

ZNIEFF identifies territories of particular ecological interest which can contain rare, remarkable, protected or threatened flora, faunas or habitats. A large area of land, that was previously used for industrial purposes but is now lightly forested, partially extends onto our site. It is valued for its rich flora and fauna with species that are unique to this part of the Seine valley. A further four ZINIEFF areas are within approximately 1km of our site.

 

Natura 2000 is an European ecological network of Special Protection Areas (SPAs) and Special Areas of Conservation (ZSC) established to conserve habitats and species within those zones. Six of these sites are within 200 -400 m of Nufarm’s boundary and include, natural habitats on the Seine River, migratory bird wintering and nesting areas and protected and rare fauna.

304-2: Significant impacts of activities, products, and services on biodiversity

To the best of our knowledge, our operations have had no impacts on protected areas this year.

304-3: Habitats protected or restored

We have not needed to protect or restore any habitats this year.

304-4: IUCN Red List species and national conservation list species with habitats in areas affected by operations

The Eurasian Thick-knee Burhinus oedicnemus is a bird that nests in the ZENIFF area on and adjacent to our site in Gaillon and which is classified in the IUCN Red List species as “least concern”. The portion of this zone that is within Nufarm’s boundary is secured and separate from our site’s operations so as not to impact upon it.

GRI 305: Emissions (2016)
103: Management approach to emissions

Our manufacturing sites generate combustion emissions such as nitrogen oxides (NOX), sulphur oxides (SOX), carbon monoxide (CO) and greenhouse gas emissions (GHG) from boilers and vehicle use. We source electricity and steam from third parties, contributing to our Scope 2 GHG emissions.  

 

This year Nufarm’s Board approved a Group target of a 30 per cent reduction in Scope 1 and 2 GHG emissions from our manufacturing sites, by 2030.  With the majority of our GHG emissions derived from energy use, we intend to achieve this target through energy efficiency and renewable energy projects. Nufarm has voluntarily set this target to reduce our impact on climate change, none of our sites generate sufficient emissions to require participation in a regulated emissions reduction program in their jurisdiction. 

 

Each manufacturing site reports greenhouse gas emissions internally on a quarterly basis. 

All of our significant sites have environmental licences for process emissions such as volatile organic compounds (VOCs) and particulate matter (PM). We have been successful over the last few years in significantly reduce our hazardous air pollutants (HAPs) and this year we have turned out attention to our VOC emissions through setting a Board approved target to reduce VOC’s by 25 per cent by 2025.  We are currently piloting an incinerator technology to eliminate these emissions as well as investigating other alternatives.  We do not generate emissions of persistent organic pollutants (POPs).   

 

We use scrubbers, filters, and incinerators to control air emissions, monitoring compliance through both online and internal measurements with regular verification by third parties. 

We use refrigerants in process equipment and air conditioning. Where we have identified domestic air conditioning units still contain R22 we are progressively replacing these with non-ozone depleting substances and where possible, refrigerants that also has a lower global warming potential. We have preventative maintenance plans in place at all sites to prevent or minimise leakage from refrigeration systems, as a result we have very low emissions of ozone-depleting substances

305-1: Direct (Scope 1) greenhouse gas (GHG) emissions, 305-2: Energy indirect (Scope 2) GHG emissions, 305-3: Other indirect (Scope 3) GHG emissions and 305-4: GHG emissions intensity

Our scope 1 and 2 emissions fell this year by over 6 per cent when compared with 2020. Almost a third of this due to a footprint reduction that came with the sale of our Latin American business in 2020.  The balance is mainly attributed to lower emission electricity in Australia and also an extended maintenance shutdown at our North Laverton synthesis site.  

 

Nufarm does not capture or report Scope 3 indirect greenhouse gas emissions. 

 

305-5: Reduction of GHG emissions

This year we established a Board approved Climate Change Policy which sets the framework for our response to climate change, and we have also taken steps to meet the commitments made in this policy.  We set a target of a 30 per cent reduction in our scope 1 and 2 greenhouse gas emissions from our manufacturing sites by 2030 which we intend to deliver from renewable electricity, local solar and energy efficiency projects.  This will be measured from our 2020 emissions footprint and progress to deliver on these commitments will be disclosed in our annual sustainability reporting. 

 

Enabling sustainable farming practices 

 

We contribute to improved climate outcomes with the products we produce and distribute.  Crop protection products enable seed to be planted directly into previously untilled soil.  No-till farming is recognised globally as an important conservation agriculture practice with the Food and Agricultural Organisation of the United Nations (FAO) estimating it reduces on farm fuel emissions by up to 60 per cent, supports soil carbon sequestering and improved soil moisture retention during drought.  These benefits improve crop productivity while helping growers reduce their impacts on climate change. 

 

Over 23 per cent of our product portfolio comprises crop protection products that enable sustainable farming practices. 

 

Nuseed Carinata 

 

Nuseed Carinata is an independently certified, scalable, and sustainable non-food oilseed cover crop used in the production of low-carbon fuel.  After the crop is harvested the oil is extracted and the remaining fiber is used as a source of traceable non-GMO plant protein. 

 

Nuseed Carinata addresses many sustainability challenges.  It reduces emissions by replacing fossil fuels, removes atmospheric carbon, and restores soil carbon as it grows and improves soil health. Grown between main crops, Nuseed Carinata generates extra income for growers from existing farmland and rewards certified sustainable farming practices.  

 

Aviation and other, difficult to decarbonize transport sectors, are looking for sustainably scalable fuel innovations to substantially reduce their carbon emissions. 

 

Nuseed Carinata is independently certified by the Roundtable on Sustainable Biomaterials (RSB) and is listed by the International Civil Aviation Organization (ICAO) as having similar greenhouse gas (GHG) savings as top performing feedstocks, primarily waste and used cooking oil. 

305-6: Emissions of ozone-depleting substances (ODS) and 305-7: Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions

 

GRI 306: Waste (2020)
103: Management approach to waste

Responsible management and reduction of waste is a growing challenge faced by companies and communities alike and Nufarm is no exception. We operate continuous chemical synthesis operations, batch formulation processes and packing lines which can generate both hazardous and non-hazardous waste.  

 

We work to reduce the environmental footprint of our manufacturing sites through systematically applying the principles of the waste hierarchy to our waste streams. Each of our manufacturing sites has a pollution prevention plan in place which identifies key environmental outputs, including waste, and prioritises initiatives based on regulatory outcomes or achieving the most significant environmental and financial benefit. 

 

Progress on pollution prevention activities is monitored through site management meetings or dedicated site health, safety, and environment management meetings.

We use third party providers to process and dispose of our waste; carrying out segregation and some simple cleaning activities on site to prepare the waste for safe collection and disposal. 

 

Due to the nature of our products 90 per cent of our waste is hazardous. Regulatory restrictions and limited disposal options mean we have to send much of our hazardous waste to off-site incinerators to ensure safe destruction. Where possible, we use energy recovery disposal options. We work to reduce the quantity of hazardous waste through better onsite segregation of non-hazardous and hazardous waste and robust vessel clean out practices. 

 

Strict quality and regulatory requirements demand thorough cleaning of production vessels and pipelines between manufacturing batches. This process produces wash waters which we store and reuse wherever possible. We do not include the volume of wash water reused on our sites in the data presented here as we do not consider these to be waste. Regulatory requirements restrict our ability to reuse all the wash water we generate and once we identify we are unable to reuse these materials they are reclassified and disposed off-site as a waste. We actively work to improve our cleaning procedures and production planning to reduce the quantity of wastewater produced. 

 

Our synthesis operations have recovery processes in place to recover and reuse or sell production by-products such as hydrochloric acid and sodium hydroxide. Old engineering equipment, such as pumps, vessels and piping are reused on site where possible or otherwise diverted off-site to scrap metal. 

 

We use bulk raw materials wherever the volume and availability of material allows; eliminating waste from spent chemical containers. Where bulk raw materials are not an option our raw materials are delivered in bulk bags and drums, these are reused on site or made safe for off-site recycling. 

 

Large steel and plastic drums are cleaned by waste service providers and recycled or reused. Intermediate bulk containers (IBC’s) are 1,000L containers widely used within the chemical industry for raw materials and distribution of finished product. At the end of their life, these are stripped down; the steel cages reused, and the plastic bladder recycled.  

 

Our packaging processes can generate some waste carboard, labels and plastic bottles which are normally recycled. The strict regulatory requirements associated with labelling our products means we have rigorous controls in place to ensure the right version of a label is applied to a product. We do small label runs and print some labels in house to reduce label wastage.  

We take responsibility for the waste packaging generated by customers using our products through the container collection and recycling initiatives outlined in GRI disclosure 301

 

We evaluate waste service providers as a part of the contracting process and have committed to auditing our significant waste suppliers, prioritising our hazardous waste suppliers first.  Our policy is to audit hazardous waste suppliers every three years, Covid-19 restrictions have made limited our ability to visit waste supplier sites to conduct audits, however we were able to audit 10 per cent of our hazardous waste providers this year.  

306-3: Waste generated

Our waste is comprised of many small, discrete streams; meaning that reducing our waste and its impact comes through small, incremental improvements. Each waste stream and their root cause needs to be identified and procedural changes or technology implemented to deliver a more sustainable outcome for the material. Our manufacturing teams actively engage in this continuous improvement process. 

 

This year Nufarm’s Board approved our target to reduce our hazardous waste by 20 per cent by 2025.  It is anticipated that the development and construction of a treatment plant at our facility in Chicago Heights, US, will make a significant contribution to this target.  We are currently piloting technology that we hope will remove all chemicals from wastewater, diverting the waste from incineration and also allowing the cleaned water to be reused in manufacturing.

  

The closure of one of our Australian sites and 2,4-D synthesis at our site in Linz, Austria this year, saw an increase in waste at these locations due to closure activities. However, the closure of these plants will ultimately help us to lower our waste footprint, as occurred this year with reduction in our waste footprint flowing on from the sale of our LATAM business in 2020.  

Our site in Linz, Austria developed and piloted a process this year to allow the reuse of an Ammonium Sulphate solution, a by-product of copper fungicide production.  While the material has other uses, due to its low grade, the site has been unable to find someone willing to process it.  Instead, we have been forced to dispose of the material. A full-scale process plant will be constructed next year, redirecting nearly 8,000 tonnes of the material to reuse as a fertiliser input. 

306-4: Waste diverted from disposal
306-5: Waste directed to disposal
GRI 307: Environmental Compliance (2016)
103: Management approach to environmental compliance

Nufarm is committed to being fully compliant with environmental regulations in the jurisdictions in which we operate as set out in our global Code of Conduct. Our manufacturing sites have environmental management systems that meet local regulatory requirements and align with the more stringent, internal standards that we have set for ourselves. 

 

Ensuring environmental compliance of our manufacturing operations is the responsibility of our local manufacturing managers with the support of the site’s environmental manager. Any non-compliances are reviewed and actioned within the site’s management forum while also being reported through to our corporate health, safety, and environment function. Our Board Risk and Compliance Committee has oversight of environmental compliance, with any material non-compliance being escalated to this forum.  

 

From time-to-time incidents may arise that result in the regulators issuing remedial notices as a part of their regulatory oversight to support licence holder compliance. We work with these regulators to ensure full compliance with their requirements while also addressing the underlying cause of the incidents. We have a goal of zero non-compliance with regulatory requirements. 

307-1: Non-compliance with environmental laws and regulations

To the best of our knowledge Nufarm has had no significant fines or non-monetary sanctions due to non-compliance with environmental laws or regulations at our operating sites during 2021, however this year the French non-government organisation, la Ligue des Protections des Oiseaux (The League for the Protection of Birds) filed a claim against six crop protection companies, of which Nufarm is one. The organisation alleges damage to bird population and diversity in France from agricultural use of Imidacloprid. Nufarm distributed imidacloprid in France until 2017 with approval from the French and European authorities and in full compliance with their requirements. The matter is ongoing. 

 

While we have a goal of zero non-compliance with regulatory requirements, this year we received two remedial notices. One of these were closed out in the same period, the other well progressed and we anticipate it will be closed to the regulators’ satisfaction during our financial year 2022.  We have also had some minor exceedances of emission discharge limits.  

 

We undertake a large volume of routine environmental monitoring and we increased these activities further this year with ongoing soil and groundwater studies. 

 

GRI 308: Supplier Environmental and Social (414) Assessment (2016)
103: Management approach to supplier environmental and social assessment

We established a supplier corporate social responsibility (CSR) assessment program five years ago and to support us in this activity we engaged Ecovadis, a global leader in this field. Our global supply team is responsible for the management of our ethical sourcing program. 

 

The assessments evaluate suppliers’ environmental, social, fair business and sustainable procurement policies, actions, and results. Through the Ecovadis platform we are able to identify potential or actual environmental and social impacts at our assessed supplier’s operations: 

 

  • The environmental element of the assessment includes environmental policies and management systems, regulatory breaches, waste management, hazardous chemicals management, REACH compliance, energy consumption, greenhouse gas emission, pollution incidents, measures to reduce environmental impacts and sustainable procurement practices.  
  • The social element of the assessment addresses human and labour rights – such as working hours, vacation leave, workplace health and safety, controls for discrimination and harassment, recruitment processes, skills development, and modern slavery controls. 

 

We use a risk-based approach to determine supplier priority for CSR assessment. This considers the risk associated with the supplier’s country of operation, their importance to Nufarm and their industry. The focus of our program is on higher risk, direct suppliers (i.e., raw material and packaging). We have a number of important chemical suppliers in China and India who were given a high priority for CSR assessment based on country risk.  More recently we have expanded our program to include waste suppliers. 

 

Ecovadis has assessed more than 75,000 suppliers globally and we benchmark our suppliers against this.  In 2021 Nufarm’s assessed suppliers scored an average of 55, compared to Ecovadis’ average global score of 43.5; Ecovadis considers suppliers with a score over 45 to be engaged in major CSR topics and therefore the CSR risks are limited.  

 

On average, Nufarm’s assessed supplier’s rate 33 per cent above the Ecovadis population average on environmental themes and 22 per cent above the population average on social themes. After their initial assessment, we invite our suppliers to undertake a reassessment every year to help drive continuous improvement.  This year 94 per cent of our suppliers undertook a reassessment and achieved an average 3.2 per cent increase in their overall CSR score. 

 

In 2019 we implemented an additional and more targeted improvement process to focus on our lowest preforming suppliers. We have an internal hurdle rate for our suppliers based on both their CSR assessment score and an internal rating against our quality standards. Where a supplier falls short of our expectations, our global supply team actively works with the supplier to improve their performance and reduce their environmental and social risk and will take appropriate remedial action if required. We partner with the supplier to establish mutually agreed upon corrective action plans which are then managed through EcoVadis. We undertake quarterly reviews and audits with each of the suppliers to help keep them on track with their improvement commitments.

308-1: New suppliers that were screened using environmental and social (414-1) criteria

We work to build long term relationships with our suppliers and there is not a significant turnover in our major supplier base. Our existing suppliers are our most important and continue to be the focus of our supply chain CSR program.  

 

All suppliers, including new ones, are subject to our Global Supplier Code of Conduct and ongoing evaluation process, however new suppliers represent a small portion of our total spend.  Where a new supplier is identified as potentially high risk, they are requested to undertake a CSR assessment. This year we did not assess any of Nufarm’s new direct suppliers on environmental and social criteria through our CSR assessment program. 

308-2: Negative environmental and social (414-2) impacts in the supply chain and actions taken

This year we again expanded the CSR assessment of our existing suppliers, increasing the number of suppliers that have completed CSR assessments from 135 in 2020 to 155 in 2021. We measure this as a percentage of direct procurement spend and the 155 suppliers represents 64 per cent of our direct spend on materials (53 per cent of our total spend). 

 

 

Most of our suppliers operate hazardous chemical manufacturing operations and can have similar potential environmental and social impacts to Nufarm. They generate chemical waste and effluent, consume energy, generate air and greenhouse gas emissions, have people working with and around dangerous goods and from time to time may have minor violations of their compliance requirements. 

 

In 2021, 18 per cent of our assessed suppliers (17 per cent of our direct spend) participated in our targeted improvement program due to their CSR scores not meeting our internal hurdle rate.  These suppliers may have triggered inclusion in this program on either social, environmental, procurement, ethical business grounds or a combination of these factors.  While they are not considered to have significant environmental or social impacts, they represent a higher CSR risk than our other suppliers and we want to support our suppliers in improving their performance. 

 

We are pleased to see that this focus on lower performing suppliers is starting to drive change and reduce the potential sustainability impacts in our supply chain. Through agreed continuous improvement plans and auditing these suppliers regularly, we have seen that they are investing in sustainability improvements which has resulted in an average score increase of 4.1 per cent since last year.   

 

Of the 155 suppliers who have participated in a CSR assessment to date, over 70 per cent were able to demonstrate that they had ISO14001 or ISO45001 in place at least at one of their operational sites. 

GRI 400: Social

GRI: 401 Employment (2016)
103: Management approach to employment

Our people and culture play an important role in delivering our strategy and we attribute much of our success to the commitment and expertise of our employees. We aim to attract and retain good employees through delivering on our employee value proposition.

 

Our Group Executive People and Performance reports directly to the CEO and sets our people and employment policies. These are implemented through the local human resources teams that we have in each of our significant locations. Our Human Resources Board Committee has direct oversight on key people and performance strategies and our Inclusion and Diversity Policy. 

Policies and expectations of behaviours are provided upon joining Nufarm as part of our onboarding program. 

 

Our compensation framework provides competitive salaries for employees in line with local market conditions. We also support employees’ rights to join unions and bargain collectively.  

We support flexible work arrangements where the nature of the role allows and recognising the different needs of our employees this could take the form of remote work, altered work hours or part-time work. 

 

We have an established performance and development program, Grow Plan Succeed where employees’ objectives are aligned to the business strategy and regular check-in meetings take place between employees and their managers to ensure they grow and succeed. We provide other development and training opportunities for employees such as our NuLead Principles Leadership Training, our mentorship program, unconscious bias training and relevant skill development specific to roles and functions. 

 

We ask for frequent feedback from all employees through our continuous listening program Nufarm Voice. This program gathers feedback and insights on key drivers to employee satisfaction. As a business we listen, celebrate success, and take actions to continuously improve. 

 

We hold annual RARE awards across all our regions where we celebrate the achievements of our employees in demonstrating our company’s RARE values (Responsibility, Agility, Respect, Empowerment). Employees nominate their peers for consideration for an award. 

401-1: New employee hires and employee turnover

We continue to recruit across the career lifespan with 41 per cent (2020: 26 per cent) of new hires aged less than 30 years of age, 46 per cent between 30-50 years (2020: 57%) and 13 per cent over the age of 50 (2020:17 per cent). We saw considerable renewal of our workforce across 2021, particularly within the ‘under 30’ cohort with a new hire rate of 52% and a turnover rate of 32%. 

401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees

In order to attract and retain the best talent, our regions provide a range of benefits to our employees that best suit their employees and the local employment market. While these are different within each Nufarm business, examples of the types of employment benefits offered within the Nufarm Group include: paid parental leave, health care, access to wellbeing resources, study assistance, and an employee assistance program. 

 

In most cases the same benefits are available to both full-time and part-time employees working within the same business. Non-permanent employees receive the legal entitlements applicable to their locations as a minimum. 

401-3: Parental leave

As a part of our approach to support employees with family commitments we provide parental leave to all permanent employees in all regionsThis year parental leave was accessed by almost three per cent of the workforce. Men represented 53 per cent (less than two per cent of the male workforce) of parental leave taken while women represented 47 per cent (five per cent of the female workforce).

 

 

GRI 402: Labour/Management Relations (2016)
103: Management approach to labour/management relations

All permanent employees are engaged under an employment agreement, amongst other conditions, this documents minimum paid notice period in the case of a significant operational change. While notice periods will vary between the different regions of Nufarm’s operations, we comply with local regulatory requirements as a minimum and exceed them in many circumstances. The most common notice periods range from 1 month to 3 months.

402-1: Minimum notice periods regarding operational changes

We comply with regulatory minimum notice periods in all locations and endeavour to exceed them when possible; prior to significant operational changes we have minimum notice periods starting from 1 month (4 weeks) with regulatory requirements in some locations providing for more. Our collective bargaining agreements in Australia and Europe provide for a consultation process in the case of a significant operational changes and we allow for a consultation process and notification beyond the contractual agreement wherever we can. 

 

We announced significant operational changes in 2020 to close our Raymond Rd site in Laverton North, Australia. Decommissioning of the site is expected to be completed during our financial year, 2022. The 56 impacted employees were given 12-18 months’ notice of redundancy with the final 12 employees to finish decommissioning the site on 28 February 2022. In the case of 2,4-D operations at our facility in Linz; the 30 impacted employees were advised that production would cease at the end of March 2021; giving them 9 months’ notice of redundancy.  

 

The notice period given to all employees, as in the above example, is well in excess of local regulatory requirements and contractual minimum requirements. All employees receive full entitlements at the end of their employment and reemployment support is provided. 

GRI 403: Occupational Health and Safety (2018)
103: Management approach to occupational health and safety

As a manufacturer and distributor of crop protection products, some of our employees work with potentially hazardous chemicals and chemical processing equipment. We also have employees who spend significant time driving on public roads. Ensuring our employees go home safely every day is our top priority. We take responsibility for the health and safety of both our own employees and non-Nufarm workers working at our locations or when working on Nufarm business at locations not controlled by Nufarm. 

 

Governance oversight of the health and safety strategy and performance sits with the Nufarm’s Board Risk and Compliance Committee. Last year we established an Executive Risk, Health, Safety and Environment Committee to assist with overseeing, directing, and supporting the implementation and operation of the risk management framework and internal compliance and control system across the Company.  Executive oversight for Nufarm’s safety strategy is assigned to our Group Executive – Manufacturing and Supply Chain who reports directly to Nufarm’s Chief Executive Officer (CEO). Safety strategy execution and performance is the responsibility of our Regional General Managers and cascades through to supply chain managers at operating locations and senior functional leaders in each region. Each region has a senior health, safety and environment manager and each manufacturing location has its own team of experienced health, safety, and environment professionals. 

 

Our CEO approved corporate Health, Safety, and Environment (HSE) Policy describes our commitment to preventing adverse health and safety impacts on our people and communities. We seek to comply with all relevant local health and safety regulations and with our corporate and location specific safety standards and procedures. 

 

We track the effectiveness of our occupational health and safety management at all levels of the organisation through a number of key leading and lagging performance indicators including lost time injury frequency rate (LTIFR) and audit findings and results. Our manufacturing sites also establish their own location specific performance measures, tailored to suit their local needs, including incident rates, loss of primary containment and completion of scheduled preventative maintenance activities. We respond quickly to correct any deteriorating trends in these measures. Lessons learnt and initiatives undertaken at one particular site are shared as relevant across the Nufarm safety network. 

403-1: Occupational health and safety management system

Our remodelled safety management system (SMS) has been in place across our global operation since 2015. It comprises our corporate Health, Safety, and Environment (HSE) Policy, HSE standard, HSE procedures and site specific HSE procedures. These apply to all Nufarm employees and non-Nufarm persons working on Nufarm sites.  

 

The SMS framework cascades from the corporate level down through to regional and site levels and is supported at each level by qualified and industry experienced health and safety professionals and line managers. Where the need arises for specialist advice, we engage appropriately qualified and experienced external consultants to advise on the issues at hand.  

 

Our SMS aligns with industry practice for the plastics and chemicals industry as described by relevant global and regional bodies such as Chemistry Australia. It also aligns well with other established standards such as ISO 18001 Health and Safety Management Standard.  

 

Our SMS is subject to continuous improvement arising from both internal and external review and developments.  

 

Health and safety audits  

 

We focus our Health and Safety corporate audits on our chemicals manufacturing sites to assure that required procedures are in place and remain effective. The schedule for these audits is two yearly unless previous audit results or issues arise that would see benefit from more frequent audits at particular locations. In addition to these corporate audits, sites undertake continuous auditing to assess their compliance with and effectiveness of procedures.  Travel restrictions arising from the global Covid-19 pandemic has made on site corporate auditing very challenging over the past year. Alternative approaches including engaging local experienced consultants is underway. 

 

Good practices identified during these audits are transferred to other sites facing similar challenges. Reports and improvement actions arising from the audits are discussed by the group executive and Board Risk and Compliance Committee. Our sites are also regularly audited by government authorities to confirm compliance and we use external auditing organisations on an ad-hoc basis to test particular sites if a benefit is identified.  

403-2: Hazard identification, risk assessment, and incident investigation

The most significant safety hazard risks we manage relate to the processing of various chemicals at our manufacturing sites.  

 

Risk controls to enable safe processing of chemicals are well known and established across the global chemicals manufacturing industry. Depending on the type of hazard under consideration, we apply these industry best practice quantitative and qualitative risk assessment methodologies to understand the level of inherent risk and the appropriate hierarchy and layers of controls to be applied to reduce the risk to an acceptable level as defined by regulators and/or industry best practice.  

 

These range from the relatively simple 5-Whys type approaches used for non-routine and routine tasks through to sophisticated hazard and operability studies (HAZOP), layers of protection analysis (LOPA) and Human Factors analysis. For these types of assessment, we use specialist facilitators and a cross-sectional team to analyse complex, low frequency, high consequence scenarios that have potential to occur at major hazard facilities. Our safety methodologies and their application are described in our corporate safety standard and in its cascading detailed corporate procedures. Nufarm engineers, safety and other professionals are trained and experienced in their application. If the need is identified for further specialist expertise, we engage relevant external resources to support the activity. The less complex hazard assessments carried out at a site’s operations level are supported and facilitated by trained health and safety professionals working with staff who supervise and operate the plant and equipment.  

 

Hazard identification and risk assessment processes are subject to site level, corporate level and regulator audits to ensure the quality and ongoing effectiveness of these activities. Output from these audits are used as an additional input into improvements in our safety management system (SMS). Leading and lagging performance indicators are also reported and tracked monthly and quarterly right through to Board level to ensure process safety measures are being sustained appropriately.  

 

We manage risks using a hierarchy of controls, with the first consideration being to remove the hazard entirely and, if this is not feasible, to manage the risks using engineering controls. The next option in order of priority and effectiveness is reducing the risks through administrative, procedural controls. Personal protective equipment is used to protect people as a last line of defence. Depending on the hazard type and the assessed risk level, multiple layers of risk controls are established such that if any single control fails, it will not result in a negative event occurring. 

 

Our HSE standard requires that all employees and non-Nufarm persons remove themselves from any situation where they believe illness or injury could result and to bring these unsafe conditions to the attention of management. They do this without fear of adverse consequence, and reporting safety risks is part of our culture. This approach is further supported by our Whistle-blower Policy which provides protection for all employees and non-Nufarm persons reporting a safety related concern covered by our Board approved Human Rights Policy or Code of Conduct. Our Integrity Helpline also provides a confidential mechanism for all employees to report safety concerns. 

 

Process safety management 

 

In 2017 we launched our process safety management (PSM) program. The program was designed to take a systematic and best practice approach to identify and control hazards at manufacturing sites where a loss of containment could result in a catastrophic incident involving fatalities inside and/or outside the site boundary and/or significant environmental damage or negative community impact. 

 

At the core of this program is our PSM standard. This addresses critical risk control factors such as facility design and construction, hazard identification, assessment and control, operations process safety, hazardous materials management, asset integrity and reliability, management of change, competence and training and emergency planning and response. 

 

Compliance with PSM requirements is audited by our corporate teams and by regulators in the relevant jurisdiction. Compliance with PSM requirements is also subject to the major hazard facility (MHF) licensing regulations in many of the jurisdictions in which we operate. Our Pipe Road and Raymond Road sites in Australia are classified as MHF sites while our sites in Linz, Austria, Gaillon, France and Wyke, UK, all fall under Europe’s Seveso III directive.  This year our Pipe Road and Raymond Road sites were issued 5-year unconditional Major Hazard Facility license’s by the government regulator, WorkSafe. This is the highest level of WorkSafe licence to operate available and reflects the high standard and sustainable deployment of Nufarm’s process safety management processes and culture at these sites. 

 

Leading and lagging performance indicators are also reported and tracked quarterly right through to Board level to ensure process safety measures are being appropriately maintained.  

 

The Board Risk and Compliance Committee and the Executive Risk and HSE Committee undertook PSM training during 2021. The purpose was to ensure they understood the principles of PSM, the Board and Executives responsibilities, the PSM metrics and their meaning and the PSM risks across the business.  

 

Incident Management 

 

Hazards and incidents are recorded in our incident reporting and investigation system which is available to all staff. Investigations are participatory, and the methodologies used depend on the severity of the hazard or event or its potential.  

 

Each operating site runs incident management training programs and has trained HSE professionals and engineers to facilitate more complex investigations using methodologies such as root cause analysis (RCA).  

 

The high hazard to injury reporting ratio across Nufarm sites demonstrates that people feel safe in reporting hazards and near misses without the concern of adverse consequences.  

 

Serious incidents are notified to the Nufarm Chief Executive Officer within 24 hours of occurrence. 

403-3: Occupational health services

Some of our employees work with hazardous chemicals as a part of our manufacturing operations.

 

We take the same risk-based approach to occupational health management as we do to safety through systematically assessing risk and implementing the hierarchy of controls.

 

We provide occupational health services to employees across all of our operations globally. The type and arrangements vary between sites depending on the size of the manufacturing site, the nature of the hazards at that site and the availability of local medical services. Some sites have an onsite medical centre staffed by a company doctor, company occupational health nurses and ancillary health professionals; some sites have occupational health nurses, while others contract with a local provider to deliver those services.

 

These services are available to employees during working hours on site, where this is not the case, Nufarm will ensure transportation is available for employees who have to travel to an off-site clinic.

 

We have medical surveillance programs specific to the type of manufacturing process, materials and potential exposures at our sites along with the requirements of the relevant health authorities. We maintain confidential employee medical records, in accordance with the medical profession’s standards and practices.

403-4: Worker participation, consultation, and communication on occupational health and safety

Health and safety committees 

 

We believe employee participation is central to the development and ongoing improvement of systems of work and procedures for safe operation of plant and equipment. There are active Health, Safety and Environment (HSE) committees across our business starting at the top with the Board Risk and Compliance Committee, which has governance oversight for occupational health and safety. The Board Risk and Compliance Committee meets three times per year. 

 

Our manufacturing sites typically have a health, safety and environment management team which will meet with regularity that ranges from monthly to quarterly, depending on the site needs. Amongst other activities, this forum will review progress on health and safety action plans, incidents and investigation findings, health and safety metrics, findings from site and corporate audits and establish and track the health and safety strategy and priorities for the site. 

 

Site based health and safety committees provide an important communication and planning channel where employees and management work together to identify improvements in employee engagement, safety culture and the SMS, and also review and deploy lessons arising from incidents. In many regions it is a regulatory requirement to involve employee elected representatives with prescribed roles and powers and we comply with these requirements. Typically, these committees would meet either monthly or quarterly. 

403-5: Worker training on occupational health and safety

All employees and non-Nufarm persons undergo occupational health and safety induction training when joining the company. Further training is provided depending on a person’s role in the organisation and the hazards they may encounter while performing their job.

 

Workers on a chemical manufacturing site can receive training in areas such as chemical safe handling procedures, confined space entry, chemical and electrical isolation procedures, fire safety, permit to work and dangerous goods.

 

We use training needs assessments and competency-based training approaches where appropriate. Delivery of training is normally a combination of classroom style training along with on-the-job, supervised training using qualified personnel. Individual training records are maintained, and our training systems ensure follow-up refresher training is scheduled as required.

403-6: Promotion of worker health

Employee wellbeing contributes to productivity and the achievement of our business objectives. 

 

We provide a range of health and lifestyle promotion programs to support the wellbeing of our employees. The programs are developed locally, with input from employees to identify and target specific needs of each workforce. Initiatives include the training of mental health first aiders and regional Employee Assistance Programs (EAP) which provide employees with independent and confidential support services. We also provide an online library of materials to support wellbeing which is available to employees on the company intranet.  

 

With the spread of Covid-19 across the globe this year all of our locations have responded rapidly to put Covid-19, safe operating plans in place. Significant effort has been put into providing our site-bound and remote working employees with health and wellbeing programs to help manage both their physical and mental health through the pandemic. Programs include a third-party triage service, flexible work arrangements, third party hosted web sessions on managing stress and anxiety and training in personal hygiene and protective equipment.  

 

Mental Health Awareness Week 

 

This year we gave mental health a priority with our first global Mental Health Awareness Week, which we held at the beginning of October.  

 

This week-long campaign was fully embraced right across the business and successfully demonstrated a united, One Nufarm approach. Work has already commenced on our 2022 campaign.

403-7: Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Our products are heavily regulated in all jurisdictions in which they are marketed and sold, including the very specific requirements for product labelling and provision of safety data sheets. All of our products undergo a rigorous health and safety assessment as a prerequisite for the provision of this safety information for our customers. Regulatory controls require our products to be labelled with the active ingredient and its content along with any relevant dangerous goods markings. Our safety data sheets provide further detail on the chemical composition of the product, safe use instructions and disposal, handling and storage and measures to protect the environment in the case of an accidental spill.

 

We also provide extensive technical information to assist growers to get optimal benefit from our products. This is supplemented by training and advice on using our products safely and sustainably. Through our membership of CropLife and other industry associations we are also supporting advocacy and education for the safe and sustainable use of crop protection products.

403-8: Workers covered by an occupational health and safety management system

Our safety management system (SMS) applies to all Nufarm employees and non-employees whose work/workplace is controlled by Nufarm. Contracted labour and services people are covered by Nufarm’s SMS and any incidents involving contractors are captured in our incident reporting system and included in our injury statistics. 

 

Our SMS is documented and self-audited by sites at a set frequency. In addition, we undertake corporate audits every two years or more frequently if required. All Nufarm employees and non-employees whose work/workplace is controlled by Nufarm work under an internally audited safety management system. 

 

Our site in Merak, Indonesia, holds an ISO18001 certification for their safety management system. This externally certified system covers approximately 3 per cent of our employees. It also covers all non-employees who work at that site. 

The journey towards zero injuries is never a straight line. This year we saw some deterioration in our company-wide safety performance following earlier improvement. This is measured through Nufarm’s headline safety metric, our Serious Injury Frequency Rate (SIFR), which comprises both Lost Time Injuries (LTIs) and Medical Treatment Injuries (MTIs) per million hours worked, including contractors. 

 

We are encouraged by what our people are achieving and the maturing safety culture which has seen our people remain focused on injury prevention during a time where Covid-19 has caused significant disruption to their normal daily routines.  

 

We continue to prioritise the health and safety of our employees while ensuring we deploy Covid-19 safe work practices in line with government directives and business best practice. Our employees are understandably fatigued by the Covid-19 induced changing working conditions and community restrictions. We are very conscious that such distractions can increase the risk of incidents and work hard to continually reinforce safe work practices in this challenging environment. 

 

We have directed our efforts into adopting best practice virus transmission prevention protocols to ensure our people remained safe and healthy while they kept Nufarm operating, whether it was while working on our manufacturing sites, in the field, or from their homes. We are committed to putting safety at the front of everything we do, and this is especially important during such unprecedented times. 

 

Against this backdrop, several of our manufacturing sites have again delivered on our aspirations of Everyone Goes Home Safely through reaching new injury free milestones.  Unfortunately, other sites which had previously achieved significant injury free milestones, have had injuries. While there have been a number of contributing factors, despite our best efforts, we believe that Covid-19 fatigue has contributed to the increase in the Lost Time Injury Frequency Rate (LTIFR).

 

The nature of the injuries incurred was predominantly manual handling related injuries with some contact and burn injuries.  

 

 

The severity of injuries, as measured by the length of time a person is absent from work, decreased significantly this year.  

 

 

When calculating the severity rate, a limit of 365 days is placed on time away from work for any individual injury incident. In May 2019 we had a serious incident which contributed 365 days of lost time. This lapsed in May 2020 resulting in the sharp reduction of our 12-month rolling average severity rate. 

 

Nufarm does not have consolidated information across our group on work related ill health.

GRI 404: Training and Education (2016)
103: Management approach to training and education

Our training programs are primarily aimed at providing employees with training that is relevant to their current role and responsibilities. These programs are broadly based across roles and regions. They span from training our salespeople to employee apprenticeship programs at our manufacturing sites.  

 

We also provide leadership development programs to build the skills that will develop our next generation of leaders. NuLead Principles continues to be used to develop and design leadership programs with local relevance in each region.

  

A Global leadership program was designed to develop key capability of our most senior 114 leaders, including the executive team.  The program connected our most senior leaders across the globe and provided a forum to share learnings, common language, and consistent frameworks to be utilised across the business. 

 

We operate a Human Resources Management System, NTouch, as our global learning management system (LMS) platform. Our manufacturing sites also operate their own learning platforms to support site specific training as well as practical, hands on training. These tools provide a wide range of tailored training such as site induction, permit to work, confined space entry, dangerous goods handling, emergency response, spill clean-up etc.

404-1: Average hours of training per year per employee

Last year we rolled out 96 on-line training courses in our new global LMS.  This year we rolled out an additional 51 on-line training courses in our global LMS this year, this delivered at least one new training module to 806 employees (30 per cent of the workforce). 

 

At our manufacturing sites we also provided an estimated 35,000 hours of safety related training and 1,400 hours of environmental training.

404-2: Programs for upgrading employee skills and transition assistance programs

We provide support for employees leaving the company due to termination of employment on a region-by-region basis. This could take the form of career transition support, language programs or other employee specific tuition programs. 

404-3: Percentage of employees receiving regular performance and career development reviews

Our performance and career development program, Grow Plan Succeed, is now recognised as a key business process with recent improvements to align with our refreshed business strategy and leadership principles. This is a company-wide program that aligns employee priorities and career development goals with business objectives. All employees are expected to participate in this program, which includes continuous check-in conversations with managers and matrix managers to discuss progress against agreed goals providing employees with real time feedback to support performance achievements and development objectives. We capture these objectives and check-in conversations in NTouch. 

 

This year we introduced auto archive, enabling an improved user experience and more accurate actual reporting.  The removal of open objectives across multiple time periods has contribute to the decline observed, however this improvement provides more accurate actual reporting moving forward.

 

GRI 405: Diversity and Equal Opportunity (2016)
103: Management approach to diversity and equal opportunity

Nufarm is a global organisation that aims to provide an inclusive work environment where individuals are valued for their diversity and empowered to reach their full potential. We believe we are stronger when our plans and operations reflect the thinking of all our people, representing a broad range of backgrounds, cultures, and experience. Diversity, respect for others and equal opportunity sit at the foundation of our core values on which our Code of Conduct has been built. 

 

We work to provide equal opportunities for all employees and do not tolerate employment decisions based on attributes unrelated to job performance. We act in accordance with local legislation and cultural considerations that may impact workplace decisions and actions. 

Nufarm’s focus on gender diversity is designed to empower all employees by actively addressing the barriers to equality and creating a level playing field and inclusive culture for both men and women. To this end we are committed to working towards a target of not less than 35 per cent of either gender making up our workforce by 2025. 

 

We have revised our inclusion and diversity strategy for 2025 with oversight from our Executive Inclusion and Diversity Steering CommitteeOur Human Rights and Inclusion and Diversity policies provide further details of our position and management framework for diversity and equal opportunityFull details of progress on diversity and equal opportunity can be found in the Corporate Governance section of our 2021 Annual Report on pages 4142. 

405-1: Diversity of governance bodies and employees

Gender diversity 

 

We are focused on improving female representation across all areas of the business and maintained 30 per cent of all new hires being female in 2021 (2020:30 per cent). Females represented 28 per cent of people leaving the business compared to 24 per cent last year. Overall, we have increased female representation to 26 per cent across the organisation (2020:25 per cent). 

 

Female representation increased in Information Technology by 7 per cent (2020: 13 per cent), Finance by 4 per cent (2020:51 per cent) and Portfolio Solutions by 1 per cent (2020: 42 per cent).  Portfolio, Finance and Corporate are functions that already meet our new target of no less than 35 per cent of either gender by 2025.

 

 

 

Our Executive and Senior management employee category went up 4 per cent to 25 per cent representation (2020: 21 per cent) as did our People Manager category by 1 per cent while all other categories remained stable in female representation. 

 

Females appointed at the executive and senior management category represented 56 per cent (2020: 37 per cent). Females represent 22 per cent of all people leadership positions across Nufarm (2020: 20 per cent). 

 

The Board considers gender diversity as an important factor in its succession planning. The per centage of female Non-executive Directors remains consistent at 25 per cent (2020: 25 per cent). 

 

 

Age group diversity 

 

We continue to employ across the career lifespan, with 55 per cent of our workforce aged between 30-50 years of age (2020: 55 per cent). Nufarm’s greater than 50 years age group has increased 2 per cent representing 33 per cent of our total workforce (2020: 31 per cent).  This can be attributed to the ageing workforce along with the sourcing talent with greater experience and/or with required specialised skills. 

 

 

Cultural diversity 

 

Our global footprint enables a culturally diverse workforce of leaders and teams, representing local cultures and customers in nearly 100 countries. Twenty-five per cent of non-executive board members reside outside Australia (2020: 11 per cent) as do 50 per cent of executive team members. Our executive and senior management team remains culturally diverse with at least 15 different cultural backgrounds represented. Nufarm’s employee self-disclosed data indicates that our workforce originates from no less than 63 different countries and speaks at least 37 different languages. Nufarm also has at least 8 per cent of employees working in a different country to their birth country. 

 

405-2: Ratio of basic salary and remuneration of women to men

Our planned annual gender pay analysis for 2021 did not occur due to salary freeze being put in place.  This was in response to the uncertainty of potential Covid-19 business disruptions.  

 

Nufarm’s short term incentive plan included a non-financial team component that aims to drive a collaborative growth mindset culture. This component is measured based on team performance, contribution and behaviour and minimises bias associated to individuals. 

GRI 406: Non-discrimination (2016)
103: Management approach to non-discrimination

Our Board approved Human Rights Policy sets out our position on matters such as collective bargaining, modern slavery, inclusion and diversity and equal opportunity. Nufarm is committed to the protection of human rights in our business and supply chain. Respect for one another is one of our core values and the respect for human rights is embedded in our Code of Conduct.  

 

We promote a culture of inclusion, diversity, and equity, fostering workplaces free from discriminatory activities and practices. We apply these principles in the treatment of one another, in the recruitment and compensation of our employees, in training and development opportunities and in all of our dealings with our business partners. 

 

Nufarm takes all reasonable measures to ensure equal opportunities for all employees and that we provide a work environment free from discrimination, harassment, sexual workplace bullying, victimisation, and vilification. We educate our employees to understand these principles and provide transparent mechanisms for unacceptable practices to be called out and investigated. Decisions based on attributes unrelated to job performance are not tolerated and breaches of our position on non-discrimination can result in disciplinary action. 

 

Nufarm acts in accordance with local legislation and cultural considerations that may impact workplace decisions and actions. We have an independently operated Integrity Helpline where employees can anonymously raise concerns regarding potential discriminatory behaviour. 

406-1: Incidents of discrimination and corrective actions taken

We had no confirmed incidents of discrimination in 2021. 

GRI 407: Freedom of Association and Collective Bargaining (2016)
103: Management approach to freedom of association and collective bargaining

Our Board approved Human Rights Policy sets out our position on matters such as collective bargaining, modern slavery, inclusion and diversity and equal opportunity. Nufarm is committed to the protection of human rights in our business and supply chain. The policy recognises and respects employees’ rights and freedoms to join or not to join organisations of their choosing, to associate freely and bargain collectively. 

 

We pride ourselves in providing supportive work environments and communicating directly with employees on issues of fair treatment. Unionisation is legal in the countries in which we have manufacturing operations so the choice to negotiate directly with Nufarm or seek the help of a third party is ultimately up to our employees. 

 

Our Global Supplier Code of Conduct requires our suppliers to comply with all relevant labour laws for their judications and we evaluate this through our Corporate Social Responsibility (CSR) assessment program with EcoVadis. This assesses whether suppliers have engaged in a social dialogue with their employees – as defined by the International Labour Organisation (ILO), a social dialogue is a mechanism to promote better living and working conditions as well as social justice. Within this scope, EcoVadis assesses the extent of the social dialogue in place, considering workers unions, employee representative on workers councils and collective agreement conditions.  

407-1: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Nufarm’s operations do not present a significant risk of violating worker’s rights to exercise freedom of association.  

 

Of the 155 suppliers who have participated in a CSR assessment to date, the majority were able to demonstrate that they had established a social dialogue with their employees. These suppliers are not considered to be at significant risk of violating workers’ rights to exercise freedom of association. While some of our chemical manufacturing suppliers did not make this demonstration there is no evidence workers’ rights to exercise freedom of association or collective bargaining were violated by these suppliers during the reporting period.

GRI 408: Child Labour & GRI 409: Forced and Compulsory Labour (2016)
103: Management approach to child labour and forced and compulsory labour

Our Board approved Human Rights Policy sets out our position on matters such as collective bargaining, modern slavery, inclusion and diversity and equal opportunity. Nufarm has adopted a zero-tolerance approach to all forms of modern slavery across our business and supply chain. Modern slavery includes child labour, forced and compulsory labour and also human trafficking. We are committed to only employing people who have freely given their consent to work for us. 

 

We have due diligence processes and controls in place to prevent modern slavery entering our business through our own recruitment practices such as verification of age, identification and legal work status, the provision of employment contracts or terms of employment for all employees.  Where we use third party labour hire, we require them to comply with the local regulations, employment standards and awards through the contractual terms of their engagement. 

 

Nufarm complies with the reporting requirements of the UK Modern Slavery Act 2015 and the Australian Commonwealth Modern Slavery Act 2018.  We publish our Modern Slaver statement six months after the end of our financial year, our most recent statement is our 2020 Modern Slavery Statement.  This statement describes the actions we have taken to identify and minimise the risk of modern slavery in our operations and supply chain. 

 

Our Board Risk and Compliance committee has oversight of our modern slavery risk and management response.  

 

Our Global Supplier Code of Conduct prohibits our suppliers from engaging in any form of modern slavery and the use of any child labour must conform to national laws and the International Labour Organisations (ILO) standards on workers age. We evaluate the effectiveness of our suppliers controls to prevent child labour through our Corporate Social Responsibility (CSR) assessment program with EcoVadis. 

408-1: Operations and suppliers at significant risk for incidents of child labour 409-1: Operations and suppliers at significant risk for incidents of forced and compulsory labour

We have a number of crop protection, seeds facilities and sales offices located in countries which are more vulnerable to modern slavery practices, these in include Egypt, Ukraine, and Indonesia. We reviewed our modern slavery self-assessment process this year and initiated a reassessment of operations in higher risk countries.  By the end of 2022 we aim to have completed reassessments of all operations, both those in higher risk and lower risk countries. This assessment re-examines our  controls in place to prevent modern slavery entering our operations and may lead to incremental improvement of specific controls. 

 

To the best of our knowledge none of our operations are at significant risk of modern slavery.  

 

We source chemical ingredients and crop protection products from suppliers who are located in countries which are more vulnerable to modern slavery practices, such as China, India, and Indonesia. While the risk of modern slavery exists in all supply chains and we have suppliers in higher risk countries, the complex nature of chemical manufacturing and the need for skilled workers, helps to reduce the industry risk to modern slavery practices.  

 

We are progressively assessing our suppliers in higher risk countries and in our 2020 Modern Slavery Statement, reported our progress in CSR assessments of these suppliers: 

 

 

Of the suppliers who have participated in a CSR assessment to date, almost 80 per cent were able to demonstrate that they have taken actions to address the risk of modern slavery. The majority of the suppliers who did not make this demonstration are located in Australia and the United States, both of which are lower risk countries, and they are suppliers of raw materials and packaging. 

 

There were no reported incidents of modern slavery practices within any of our assessed suppliers this year. 

GRI 410: Security Practices (2016)
103: Management approach to security practices

Nufarm engages security personnel to manage the safe access of people and vehicles to our manufacturing sites and maintain secure property boundaries. Providing security services is not a core Nufarm competency, hence at most locations a thirdparty security organisation is engaged to manage site security. Security service providers are required to abide by our Global Supplier Code of Conduct. 

410-1: Security personnel trained in human rights policies or procedures

Nufarm did not undertake formal human rights training with security personnel working at our sites this year.

GRI 411: Rights of Indigenous Peoples (2016)
103: Management approach to right of indigenous peoples

To the best of our knowledge, Nufarm’s operations and businesses do not occupy or impact upon indigenous owned or inhabited lands or territories in any of the regions in which we operate.

411-1: Incidents of violations involving rights of indigenous peoples

We have had no reported incidents of violations involving the rights of indigenous peoples this year.

GRI 412: Human Rights Assessment (2016)
103: Management approach to human rights assessment

We undertake human rights assessments as an element of our supplier Corporate Social Responsibility (CSR) assessments, this process is addressed under GRI disclosure 308.

412-2: Employee training on human rights policies or procedures

This year we developed training content and extended training of our employees in Nufarm’s modern slavery obligations, risks, and control measures. We provided modern slavery training to our crop protection regional leadership teams and to our human resource recruiters and business partners. In 2022 we plan to train our procurement teams and provide general modern slavery awareness training to the broader Nufarm community through our online training platform, nTouch.

412-3: Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

We undertook 20 new CSR assessments of our suppliers this year.  Our third-party CSR assessments include an assessment of human rights procedures and performance. 

GRI 413: Local Communities (2016)
103: Management approach to local communities

Our local communities are those that live or work in close proximity to our manufacturing sites. We are committed to being good neighbours and minimising any potential negative impacts on these communities. 

 

Each site has identified its local community stakeholders and the site manager is responsible for engaging with the community on issues relevant to that location. In some regions there are joint community/industry groups in place, and we participate in these forums.  

 

As an operator of major hazard facilities, there is a potential for some of our sites to have an off-site impact in the case of a major incident. Safety authorities and regulators typically require periodic confirmation and verification that we have adequate, effective, and sustained hazard controls in place. We are committed to full compliance with regulatory requirements in all jurisdictions in which we operate recognising that regulators play an important role in developing and enforcing industry standards to protect our communities and help maintain public confidence.  

 

Strict regulatory oversight, combined with our own process safety management systems, ensure we manage the risk from our operations to surrounding neighbourhoods to a community acceptable level. 

 

We have emergency response plans and procedures which are communicated to, and tested with, the community where relevant and appropriate. 

 

From time-to-time noise and odour may impact some in our local communities. We take these incidents very seriously and act quickly to investigate the cause of the problem and resolve the situation. Each of our manufacturing sites has a complaints handling and reporting process for these situations. 

413-2: Operations with significant actual and potential negative impacts on local communities

Our manufacturing sites are all located in industrial zones, five of which are in proximity to residential areas. Our Pipe Road and Raymond Road sites in Australia are classified as major hazard facilities sites while our sites in Linz, Austria, Gaillon, France and Wyke, UK, all fall under Europe’s Seveso III directive. All of these facilities have Nufarm’s process safety processes in place which are routinely audited internally by Nufarm corporate and externally by regulators according to their facility licensing and oversight requirements. 

 

Environmental Complaints 

 

This year we had one complaint where investigations identified our operations were the cause. This was a noise complaint at our site in Wyke, UK. While this did not have a significant negative impact, we worked to resolve the matter promptly. 

 

GRI 414: Supplier Social Assessment (2016)
103: Management approach to supplier social assessment

Our approach and performance on supplier social assessment can be found at GRI disclosure 308.

GRI: 415 Public Policy 2016
103: Management Approach

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415-1: Political contributions

Accordion Content

GRI 416: Customer Health and Safety (2016)
103: Management approach to customer health and safety

Crop protection is one of the most highly regulated industries in the world and we take the responsibility of developing and selling crop protection products very seriously.  

 

A new crop protection product is many years in the making, it begins with the development of the active ingredient (active); a process that uses cutting edge chemistry to design new molecules that specifically target current or emerging crop pest, weed or disease issues or provide further improvement over existing solutions. 

 

Nufarm partners with the developers of new actives, formulating these into crop protection products that the farmer can apply to their seeds, fields, or crops.   

 

We undertake rigorous and extensive testing and field trials to ensure the product is effective and safe for people and the environment, when used properly. This process can also take several years as we test, wait for results and test again. 

 

We apply standard scientific test methods and follow the pesticide guidelines set by the Organization for Economic Co-operation and Development (OECD) and the Food and Agricultural Organisation of the United Nations (FAO) as well as local regulatory requirements. The outcome of this work informs a very comprehensive, scientific product data package, which we submit to an independent regulator for assessment. 

 

Each new product is evaluated by the regulator in the country it is to be sold. If the regulator approves the product, it becomes registered to sell it in that country.  Across their life, crop protection products continue to undergo periodic, independent review and reassessment and also as new scientific information becomes available. 

 

Our commitment to this process is absolute; it is our promise to our customers that for every product we develop and sell, the proposed use patterns, label claims, directions for use, packaging and technical literature accurately reflect the outcome of scientific tests and assessments and comply with all conditions of registration.   

 

Crop Protection 

 

At Nufarm one of our core strengths is developing formulations that use active ingredients in new and innovative ways.  This capability allows us to create products that deliver more sustainable outcomes for growers. When designing new formulations, we aim to maximise efficacy while minimising potential risk to grower health and safety. One of the ways we do this is through using granulated products that reduce grower exposure risk during handling, such as our Kaiso Sorbie technology, a product we sell throughout Europe. 

 

Globally we belong to CropLife, an international organisation that undertakes stewardship activities and advocates for the safe and sustainable use of crop protection products. 

 

In Australia, Nufarm continues to invest in SprayWise® Decisions, an innovative platform that helps rural landholders and contractors to better plan and match the timing of chemical applications to prevailing local weather. SprayWise® Decisions is available to growers as an internet subscription service. Nufarm also runs the SprayWise® program which has been instrumental in helping growers better manage their spraying activities, minimising drift, reducing chemical use, and maximising spray effectiveness. SprayWise® helps growers minimise unintended impacts on off-target species when spraying crop protection products.

 

Seed Technologies 

 

Excellence Through Stewardship (ETS) is a global industry-coordinated organisation that promotes the universal adoption of stewardship programs and quality management systems for the full life cycle of biotechnology-derived plant products. Nuseed, our wholly owned subsidiary, belongs to this organisation ensuring our stewardship and quality management systems meet or exceed these internationally recognised standards, and applying them to our biotechnology portfolio globally, including DHA omega-3 canola. ETS will facilitate third party audits of Nuseed’ s biotechnology processes as part of our continuous improvement process.

416-1: Assessment of the health and safety impacts of product and service categories

Our regulatory team members play an active role in regulatory reviews around the world. We respond to questions or issues raised by regulators either in our own right, or as part of the relevant industry taskforce which will generate the necessary data. Nufarm participates in taskforces globally including the 2,4-D taskforce in North America and Europe and the Glyphosate Renewal Group (GRG) in Europe. 

 

All our products are developed and manufactured to strict global quality and safety standards. These standards were designed with a focus on ensuring our products are safe to use, with industry regulatory requirements as the baseline. Our standards also consider grower needs and application requirements to ensure we deliver a safe, effective product. 

 

We proactively work with our suppliers to access new innovations and best in class manufacturing processes of our raw material. We also collaborate with suppliers in some of our development work to ensure new and innovative solutions are included in our portfolio. These innovation trends could be driven by sustainability, performance, or application safety. We have laboratories in all our regions where we extensively test our products to ensure quality and safety levels and to meet the stringent regulatory requirements needed to sell our products around the world. Throughout our development process our products undergo compliance checks in line with regional requirements, e.g., REACH compliance in Europe.  

GRI 417: Marketing and Labelling (2016)
103: Management approach to marketing and labelling

Our products are heavily regulated in all jurisdictions in which they are marketed and sold, including the very specific requirements for product labelling and provision of safety data sheets. 

 

Each region has an experienced team of product regulatory professionals who work closely with their local regulators to ensure label compliance with the country regulations. There is a globally harmonized system of classification and labelling and most regulations are based on the United Nations’ globally Harmonised System (GHS) to ensure a high level of protection of health and environment. Our labels include statements relating to the intrinsic hazards of the product, in addition to relevant label particulars required by the local authority. 

 

We also generate safety data sheets for all our products and make them available in the various regions in line with local regulatory requirements. We have experts in each region to ensure the data is correct and are reviewed within guidelines. We further support the safe use of our products with 24-hour emergency helplines in the jurisdictions we operate. 

 

We provide extensive technical information to assist growers to get optimal benefit from our products. This is supplemented by training and advice on using our products safely and sustainably. Through our membership of CropLife and other industry associations we are also supporting advocacy and education for the safe and sustainable use of crop protection products. 

417-1: Requirements for product and service information and labelling

Regulatory controls require our products to be labelled with the active ingredient(s) and its content along with any relevant dangerous goods markings. Each product label provides critical information about how to handle and use pesticide products safely and legally. All regulatory authorities require extensive scientific data on the potential health and environmental effects of a pesticide before granting a registration, which is a licence to market that product.  

 

Our safety data sheets provide further detail on the chemical composition of the product, safe use instructions and disposal, handling and storage and measures to protect the environment in the case of an accidental spill.  

GRI 418: Customer Privacy (2016)
103: Management approach to customer privacy

We assess cyber threats on an ongoing basis, responding to the continually evolving nature of these threats. We have layers of protection in place to mitigate the risk of data loss or data privacy breaches.

 

We minimise exposure of our customer’s data to cyberattack by hosting material information systems within our network and protecting our network with robust controls such as: perimeter security, email filtering for phishing and malware, and anti-virus and anti-payload protection.

 

The privacy of our material information systems are protected with controls such as password protection and access authorisation. End points can be remotely disabled in case they are misplaced or stolen. Data processing agreements are in place for major information technology (IT) outsourcers. We have major incident management procedures which include activities to manage and escalate data security incidents.

 

We are currently implementing companywide enhancements to our data protection framework.

 

Our corporate risk management framework (refer GRI disclosure 102-30) provides internal assurance for our cyber security and data privacy, for details of our risk management framework, refer to page 48 of our 2021 Annual Report.

418-1: Substantial complaints concerning breaches of customer privacy and losses of customer data

There have been no substantiated complaints regarding breach of customer privacy or identified leaks, thefts or losses of customer data within the Nufarm Group this year.

GRI 419: Socioeconomic Compliance (2016)
103: Management approach to socioeconomic compliance

Nufarm’s Code of Conduct reflects our commitment to comply with relevant laws and corporate governance standards in all of the countries in which we undertake business. Our code provides overarching guidance on behaviours and is supported by procedures for sanction implications, ethical sourcing, and management of sensitive personal data. It also challenges us to exceed minimum compliance requirements. 

 

Our Board Risk and Compliance Committee is responsible for overseeing compliance management and ensuring the effectiveness of the policies and procedures in place to support legislative and regulatory compliance.  

 

Nufarm maintains a dedicated internal legal team across key regional operations, which is supported externally as required, to provide input on key legislative and regulatory compliance.

 

Nufarm has introduced an online global Integrity Helpline program to allow employees to report any unethical, illegal, or fraudulent behaviour. 

 

We value our licence to operate and have processes in place to stay abreast of new and changing regulations to ensure timely implementation of requirements. This includes requirements relating to occupational health and safety, environment, product registration, sanctions and anti-bribery, data privacy, taxation, and review of contractual obligations with key suppliers and customers. 

419-1: Non-compliance with laws and regulations in the social and economic area

To the best of our knowledge there have been no significant fines or monetary sanctions relating to breaches in social or economic laws and regulations within the Nufarm Group this year.

Performance Data

Click here to download our 2021 Performance Data Table (.xlsx file).