GRI Content and Index

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 subsidiaries. The full list of Nufarm companies can be found on pages 110-113 of our 2020 Annual Report.

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

With the world’s population increasing in size and prosperity, Nufarm plays an important role in helping farmers deliver food security and improved nutrition to a growing population. We recognise the challenges they face in using limited natural resources in a sustainable way while responding to climate volatility and growing pressures on biodiversity. We aim to create long term shareholder value by helping farmers get more from their land through the provision of crop protection 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.

 

We partner with leading industry and research organisations around the world to develop and offer new 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), Dicamba and Mecoprop-p. We sell these in leading brands such as: Crucial, Agroxone, Weedmaster, Amicide, Credit and Diablo. 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.

 

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 BEYOND YIELD™ strategy. Nuseed distributes high yielding sunflower, sorghum and canola seed, adding a new oilseed crop, carinata, to the portfolio in 2020.

 

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.

 

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. These regulators have determined that glyphosate is safe to use in accordance with label directions.

 

In 2015 the International Agency for Research on Cancer (IARC) listed glyphosate as a probable carcinogen in Monographs Volume 112. The preamble to the Monographs explains that the Monographs represent the first step in carcinogen risk assessment and it carefully distinguishes between a cancer “hazard” and a cancer “risk”. The preamble defines a cancer ‘hazard’ is an agent that is capable of causing cancer under some circumstances, and a cancer ‘risk’ as an estimate of the carcinogenic effects expected from exposure to a cancer hazard.

 

The Monograph notes that it evaluates cancer hazards (not cancer risks). It highlights that the distinction between a hazard and risk is important, and that the Monographs identify cancer hazards, even when risks are very low at current exposure levels. As a result of these definitions, many common, everyday products, such as aloe-vera, pickled vegetables and coconut oil, have been identified by IARC as probable carcinogens.

 

Regulatory bodies in major agricultural markets have reviewed their assessment of the risk of glyphosate to human health following the IARC decision. Each of these regulatory bodies has 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.

 

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 Europe. 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. This is expected in the next few months.

 

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 honey bee populations are not in decline in Australia. The Australian chemical reconsideration is now in progress with 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.

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 30 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. While a small portion of our sales in Latin American were direct to farmers or farming companies, with divestment of this business effective April 2020, the remaining Nufarm companies continue to focus on our agricultural distributor customers.

 

Our crop protection business is focused on five core crops across key geographies. Our core crops are cereals; corn; soybean; pasture, turf and ornamentals; and trees, nuts, vines and vegetables (TNVV) and our businesses are focused in Europe, North America and Asia Pacific; selling into 85 countries globally. Our seeds business continues to operate and sell in South America, with customers in more than 30 countries across the four key regions.

 

Our global footprint means we manufacture, source and deliver high quality products at competitive prices.

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 2020 Annual Report. A 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 percent 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 percent of Nufarm Ltd shares. Other major shareholders include HSBC Custody Nominees (Australia) Limited 23.9 percent, JP Morgan Nominees Australia Pty Limited with 14.9 percent and Citicorp Nominees Pty Limited with 14.7 percent.

 

102-8: Information on employees and other workers

At the end of our 2020 financial year we employed 2,702 people (2019 3,315 people) across five regions, a decrease of 18 percent predominantly due to the sale of our Latin American business (580 people), effective April 2020. All data provided for 2020 included in this report excludes headcount activity from the Latin American business sale.

 

a.  The total number of employees by employment contract and gender: Most of our workforce remain full time with 88 percent permanent employees (2019: 91 percent). While women make up 25 percent of our workforce, they only make up 9 percent of our non-permanent workers.

 

b. The total number of employees by employment contract and region: Through 2020 we have had ongoing regional and global transformation projects, this has continued to increase efficiencies in our Australian and global teams based in Australia and New Zealand. We have increased personnel within our North American business with the start-up of our new manufacturing site in Greenville and growth within Nuseed.

 

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 3 percent of our workforce operating with part time arrangements down from 5 percent in 2019. A significant increase in flexible working arrangements have been initiated due to Covid-19 and continue due to our remote working capability.

 

d. We employ casual, 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 accountant, 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 percent of the full time equivalent (FTE) workforce was employed in seasonal contract roles across all of our manufacturing locations this year. This is an increase on last year’s 12 percent due to the extra production resources needed in the second half of our 2020 financial year as Australia began recovering from the drought.

 

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 13-16 of our 2020 Corporate Governance Statement

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 12 crop protection manufacturing facilities located in eight countries with the most significant locations being in Australia, Austria, 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 facilities in Linz, Austria and Laverton North, Australia. Our manufacturing sites use these 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 that sell directly to growers and 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 2020, our global procurement organisation operates out of three key hub locations in Australia, China and Switzerland. We have since closed our Swiss operation. 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. 

 

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 has 15 seed production operations in nine countries with the most significant being in Australia, Latin America and North America.

 

Nuseed produces canola, carinata, sunflower and sorghum seed available to growers through local sales, distribution and retail networks specific to each Nuseed region – Australia, Europe, North America and South America. Quality Assurance (QA) teams and protocols are in place throughout Nuseed’s global supply chain.

 

Nuseed Carinata seed is currently produced in South America as a contract cover crop and processed into a low carbon renewable fuel in Europe.

 

Nuseed Omega-3 Canola is the world’s first land-based source of comprehensive omega-3 for Nuseed’s aquafeed customers. It is produced under contract in the U.S. with supply chain transparency certified by Excellence Through Stewardship (ETS), requiring industry best practices in biotechnology. ​

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

During our 2020 financial year there have been several significant changes in our organisation:

 

1.In 2019 we constructed a new formulation facility in Greenville, Mississippi in North America to allow us to more efficiently supply crop protection product in this market. We commenced operation of this facility early this year delivering social benefits in an economically depressed region with the creation of new jobs as well as environmental benefits by reducing fuel and greenhouse gas emissions through manufacturing closer to our market. In 2020 we sold our Latin American crop protection business to Sumitomo Chemical Company Limited, Nufarm’s largest shareholder. Separation of the businesses was completed on April 1, 2020, at which time Nufarm ceased being the operator of the Fortaleza crop protection facility and selling crop protection products in this market. Nuseed continues to operate seed facilities in the region and sell seed products in the market.

 

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

 

3. 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:

 

Protecting the safety, health and wellbeing of our people and communities: 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, implement risk reduction measures and foster a culture where people’s health and safety is front of mind in all we do.

 

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.

 

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 and 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

Nufarm supports the global efforts towards achieving the United Nations Sustainable Development Goals, known as Transforming our world: the 2030 Agenda for Sustainable Development. We practise the standards established by a number of industry groups to which we belong. We are committed to Responsible Care, a global, voluntary initiative developed by the chemical industry that operates in over 65 countries, which aims to ensure the safe management of chemicals throughout their lifecycle while driving continuous improvement in the areas of environmental protection and health and safety.

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 Glysophate 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

 

 

 

 

 

 

Nufarm’s purpose is to create long term shareholder value by helping farmers get more from their land through the provision of crop protection solutions and seed technologies. With the world’s population increasing in size and prosperity, our products and solutions play an important role in helping farmers feed more people while using fewer natural resources, including land and water.

 

Our approach to environment, social and governance issues supports the creation of long-term value for our shareholders. In 2020 we updated our materiality study to include feedback from external stakeholders for the first time. While the majority of our sustainability issues have not changed, the findings have helped inform the way we report and identified an opportunity to more explicitly recognise the contribution we make to improving the sustainability of modern agriculture. This feedback will focus our priorities and reporting for 2021 and we intend to further expand external participation in the materiality study in coming years.

 

The safety of our people continues to be our most important priority and in 2020 we achieved our best ever safety performance. This is particularly pleasing given the context of the global COVID-19 pandemic and is testament to the commitment of every single employee to ensuring we all return home safely every day. We also remain committed to promoting the safe and responsible use of our products and, along with a range of other initiatives, we were proud to participate in an industry collaboration to change packaging systems across Europe to reduce the risk of product spills and improve the speed and ease of handling product for farmers.

 

One of our most significant achievements this year has been the commercialisation of our proprietary Nuseed Omega-3 Canola oil and carinata crop. These plant-based solutions are helping address global challenges, with our omega-3 canola oil reducing pressure on wild-fish stock and our carinata crop providing a new, best-in-class feedstock for biofuel production to help reduce greenhouse gas emissions.

 

Reducing our energy and resource consumption and minimising adverse environmental impacts is a key part of our manufacturing excellence strategy. In 2020 we made further progress in strengthening our environmental control systems and undertook a range of projects that have reduced our scope 1 greenhouse gas emissions and identified opportunities for future energy savings. We also undertook a range of individually small projects that have contributed to reducing waste.

 

An engaged workforce is key to delivering on our business strategy and we know that diverse workforces contribute to better engagement with customers and communities and create high performing cultures. Inclusion and diversity at Nufarm is about living our values of Responsibility, Agility, Respect and Empowerment. We launched our Inclusion and Diversity strategy last year and in 2020 our focus has centred on educating employees to minimise potential bias and increasing gender equality within our workforce. Female representation has increased from 24 percent to 25 percent however we still have a way to go before we reach our target of at least 30 percent.

 

Our governance framework is fundamental to demonstrating accountability to stakeholders and promoting a culture of ethical, lawful and responsible behaviour. In 2020 we updated our Board governance structures to reflect the company’s needs and the evolving expectations of our external stakeholders. We reviewed all governance policies to ensure they reflect a high standard of corporate governance and introduced a new whistle-blower policy and platform. We also refreshed our Code of Conduct and this is ready to be relaunched in 2021.

 

Our contribution to a more sustainable future is a source of pride for our employees. While we know there is much more work to do, we are taking positive steps that will build a more resilient business to create value for all of our stakeholder groups.

 

We appreciate your interest in our progress and I invite you to explore our new Global Reporting Initiative (GRI) Content and Index for more information.

 

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:

 

Product regulation: The crop protection industry is highly regulated with government controls and standards imposed on all aspects of the industry’s operations. Crop protection products are subject to regulatory review and approval in all markets in which they are sold, with the requirements of regulatory authorities varying from country to country. Strict regulation of crop protection products provides protection for communities, growers and the environment, however changes in regulations and the cost of compliance can have economic impacts on both Nufarm and our growers.

 

Product 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 waste water 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: The manufacture of products produces air emissions and waste, which if not properly managed has the potential to cause environmental harm. We consume energy from non-renewable sources 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.

 

Climate: 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 as a result of 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.

 

Refer to GRI disclosure 102-46 which shows where these risks can potentially impact our value chain and how they are considered in the reporting boundaries of this report.

 

A list of the business risks managed by Nufarm and their potential impacts on stakeholders is set out on pages 14 to 17 of our 2020 Annual Report.

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

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

 

 

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 these 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. 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.

 

102-17: Mechanisms for advice and concerns about ethics

Nufarm has a whistleblower 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. Last year 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 whistleblower 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 (ASX) and in our financial year 2020, we complied with the third edition of the ASX Corporate Governance Principles and Recommendations (ASX Principles) and where appropriate, early adopted the fourth edition of the 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 nomination and governance committee: The nominations and governance committee develop the criteria and framework for Director succession planning and retention to ensure the Board maintains the appropriate size and composition.

 

  • The human resources (HR) committee: The responsibilities of the HR committee include to review and make recommendations to the Board in relation to Nufarm’s Board and executive remuneration strategy, structure and practice. The committee is responsible for seeking and approving independent remuneration advisers who will 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 risk and compliance and HR committees have joint oversight of Nufarm’s material social aspects while making recommendations to the Board on matters of policy and practice.

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.

 

The Chief Financial Officer, Paul Binfield, 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; Tiago Muniz (Acting), 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.

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 2020, the composition of Nufarm’s Board of Directors was as follows:

 

102-23: Chair of the highest governance body

During 2020 the chair of Nufarm’s Board of Directors was Donald McGauchie acting as a non-executive officer. On the 30st of July 2020 we announced that Donald would be retiring from the Board and John Gillam would replace him as Chairman in our 2021 financial year.

102-24: Nominating and selecting the highest governance body

Nufarm has a Board nomination and governance committee which reviews and undertakes appropriate background and security checks into potential, new Board members. The committee considers the range of skills, experience and expertise of a potential Director to ensure the Board maintains an appropriate skills mix.

 

In conjunction with the human resources committee, the nominations and governance committee ensure the diversity policy is applied to the selection of Board members. 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, however all Board members are required to submit for re-election at the annual general meeting of shareholders if they wish to continue to hold their position beyond three years.

 

Further information on these processes can be found in our 2020 Corporate Governance Statement on pages 23-26 of our 2020 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 2020 Annual Report and statements released to the ASX.

 

Further information on this policy can be found in our 2020 Corporate Governance Statement on Page 25 of our 2020 Annual Report..

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

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 approves Nufarm’s Modern Slavery Statement, our 2020 Annual Sustainability Review and this 2020 GRI Content and Index were approved by our CEO.

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

Each year each Board committee will self-assess whether it has discharged its responsibilities as set out our Board Charter. The Nomination and Governance Committee oversees the Board and individual Director performance. Further information can be found in our 2020 Corporate Governance Statement on Page 26 of our 2020 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. 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 committee, risk and compliance committee and ultimately the Board.

 

We have an independent 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 economic, environmental and social impacts.

 

The 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 will normally meet six times per year; health safety and environment performance is reviewed at every Board meeting and significant economic, environmental or social issues are tabled as they arise.

 

The Board committees that support the Board; the risk and compliance committee; the nomination and governance committee; the human resources (HR) committee; and audit committee are specifically tasked with reviewing relevant economic, environmental and social impacts and meet at least three times per year.

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 delegated for resolution.

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 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.

 

Our key management personnel (KMP’s) are renumerated 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 KMPs for our financial year 2020 were:

 

  • A renewed 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 and cash flow management through the addition of SG&A and Stock Cover measures. The STI program also rewards delivery of personal or team objectives. Team 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 human resources Board committee (HRBC) 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 CEO’s remuneration based on market practice, performance against agreed measures and other relevant factors, while 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).

 

The company has employment contracts with the CEO and 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 long‑term 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 non‑executive 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 non‑executive Director fees, the Board considers factors such as external market data on fees and the size and complexity of Nufarm’s operations. The non‑executive Directors’ fees are fixed, and non‑executive Directors do not participate in any Nufarm incentive plan.

 

Renumeration policies and fiscal year 2020 rewards for both key management personnel and Directors are disclosed fully on pages 39 to 53 of our 2020 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 independent remuneration specialists or market data providers on a case by case basis.

102-37: Stakeholders’ involvement in remuneration

The Board’s policy regarding non‑executive 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 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 2019 AGM, 98.4 percent of votes cast approved adoption of the remuneration report and 1.3 percent 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 progressively expand upon out initial materiality study, which was undertaken in 2017. This year we refreshed it, engaging with both internal and some external stakeholders; in particular, key customers and financiers. We will continue to evolve our study, broadening it to other important external stakeholders.

 

The materiality study (refer to GRI disclosure 102-47) 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. The safety of our own people and that of our customers and communities, continues to be recognised as a key issue with internal stakeholders.

 

102-41: Collective bargaining agreements

Our 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 at least 28 percent of our employees were covered by a collective bargaining agreement; these employees are primarily based at our manufacturing sites, this is down from 32 percent last year due to the sale of our Latin American business in March 2020. 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 110 – 113 of our 2020 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 percent of Nufarm’s environmental footprint.

102-46: Defining report content and topic Boundaries

The content of this report 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 impact 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.

 

Nufarm has identified its sustainability risks and potential impacts across our value chain to the extent possible. We established our reporting boundary around the elements of our value chain where we have the ability to identify and influence potential impacts. These risks are reflected in our material sustainability topics and this report discloses our approach to managing them and our performance.

 

102-47: List of material topics

Our materiality study identified the following material topics, these are prioritised from most significant in the top right to least significant in the bottom left hand corner. These topics have guided the content of this report.

 

Nufarm’s material topics

102-48: Restatements of information

The following restatements have been made:

 

102-49: Changes in reporting

In 2019 we commenced construction of a new formulation facility in Greenville, Mississippi in North America, which was completed and commissioned in 2020. Both actual and estimated data from this facility is now included in this report; where estimates have been used, they are included as footnotes to the relevant tables.

 

During 2020, Nufarm sold its Latin American crop protection business to Sumitomo. Data from the crop protection facility at Fortaleza is included in the report up to March 31, 2020, except where directly indicated otherwise.

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 August 2019 to 31 July 2020 (referred to in this report as 2020). This reporting period aligns with our financial reporting for 2020.

 

On the 23rd of July 2020, Nufarm announced that we would change our financial year end from 31 July to 30 September to better align the half year reporting period with our key sales periods. Our 2021 GRI content and index will be aligned with our new financial reporting period.

102-51: Date of most recent report

Our most recent, previous Sustainability Report was released in October 2019, for our 2019 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 sustainability report, 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), annual general meeting, 2020 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

Nufarm obtained external assurance for the financial data reported in our 2020 Annual Report, excerpts of which are included in GRI disclosure 102-7. The balance of this report has not undergone external verification.

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 2,702 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 Nufarm undertook a high-level gap assessment against the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, developing a high level 3-year road map to report on climate-related financial information.

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 on pages 93 to 95, Note 26 of our 2020 Annual Report.

 

Remuneration and remuneration policies for our Board of Directors and senior executives are disclosed on pages 39 to 53 of our 2020 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 including 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 human rights policy establishes a zero-tolerance stance on all forms of modern slavery in our operations and ensures suppliers and contractors in our supply chain share this goal.

 

We partner with EcoVadis to conduct corporate social responsibility (CSR) assessments of selected suppliers. The 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 significant manufacturing locations, being in Australia, the UK, Austria, France and the United States purchased an average of 35 percent of our total spend from local suppliers.

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 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 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 whistleblower policy.

 

As a part of our ongoing internal audit program we consider corruption risks in high rated or key exposure countries, such as Indonesia and Egypt where we have manufacturing and sales offices as well as other countries which we sell into, such as in the African and Middle Eastern Regions. We have a rotational audit plan, with each sales country being subject to audit every 24 or 36 months during normal business; we have had some disruptions to this plan this year due to COVID related travel restrictions.

During 2020 we assessed the business undertaken in African and Middle Eastern countries for risks related to corruption. This represented approximately 10 percent of the countries into which Nufarm distributed its products but only a small percentage of our total sales. No significant risks related to corruption were identified.

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 conduct and in 2020, employee awareness activities were undertaken to accompany the launch of the new Integrity Helpline.

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. Five of our crop protection manufacturing sites are ISO14001 certified and we have committed to implementing ISO14001 certified environmental management systems at of all our crop protection sites by 2024.


The 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. Each of our manufacturing sites have a risk assessed environmental aspects and impacts register in place.


Three 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.

 

We made significant progress again this year in closing out these actions, with 88 percent of the plans completed, up from 65 percent last year.

 

This 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. Five of our crop protection manufacturing sites participated in an audit with the balance of site audits deferred until COVID 19 restrictions allow travel and site visitors again. 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. In developing our products, we prioritise the use of solvents and adjuvants with the lowest 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, the Ag Container Recycling Council (ACRC) in the United States and PAMIRA’s agricultural packaging recovery system in Germany. 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. Where possible we rework it into new product to the extent allowed by our strict quality standards and product regulatory controls otherwise, we ensure it is appropriately disposed of.

 

We have an ongoing project to rationalise our product range to reduce obsolete stock and drive efficiencies in our supply chain, reducing waste and impact on the environment.

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 in 2020 increased slightly (< 0.5 percent) compared to 2019. This is due to the inclusion of externally sourced cooling and compressed air at our site in Linz, Austria and an increase in production at our Australian manufacturing sites in response to an improvement in drought conditions in the second half of the year. These increases were mostly off-set by the reduction in our energy footprint with the sale of our Brazilian site in Fortaleza. Eight percent of our energy was from renewably sourced electricity.

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

This year our Pipe Rd, Australia site installed a condensate recovery system in one of our processing plants which will deliver an anticipated 6,200 GJ gas saving for the site. Unfortunately, this plant could not be commissioned due to COVID 19 restrictions, but it will be brought online as soon as is practicable. This project will also deliver greenhouse gas emissions, water and effluent reductions.

 

Our site in Port Klang, Malaysia has been actively pursuing energy and greenhouse gas reduction projects for the last two years. While this is a small site and only contributes to a small percentage of our overall footprint, through reducing their use of air conditioning and implementing higher set points on all units they were able to reduce their site’s energy consumption by 360 GJ or 9 percent, this year.

 

During 2020 we undertook third party energy audits at each of our European sites which represent over 50 percent of our total energy footprint. These audits have been used to establish internal energy reduction targets along with a program of energy efficiency projects that will be implemented at these sites over the next couple of years.

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 latest materiality study. Recognising that we will continue to evolve our materiality study we have reported the water related information that we have available to support our ongoing efforts to improve our 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 percent 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 off-site 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 waste water treatment facilities and smaller sites divert any 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 waste water treatment facilities which allows us to treat and discharge waste water 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 waste water 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 waste water 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.

 

This year, in the absence of local regulatory limits, our sites in Victoria, Australia established ecosystem protection parameters for discharged rainwater, applying the methodology set out in the Australian and New Zealand Guidelines for Fresh and Marine Water Quality. Discharges will be routinely monitored against these parameters.

 

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

Our surface and ground water withdrawal and discharge increased this year due to the need for extra single use cooling water in Europe due to a warmer than usual Summer.

 

We have undertaken two significant waste water projects this year:

 

Our site in Linz, Austria implemented a process to recover Hydrogen Chloride (HCl) from a waste water stream. This project was implemented towards the end of our 2020 financial year, diverting approximately 200 tonnes of HCl from effluent. In 2021 we anticipate that we’ll recover as much as 1,800 tonnes of HCl and save 1,200 tonne of Sodium Hydroxide, which was used to neutralise the HCl in our waste water treatment plant. 

 

Our site in Wyke, in the UK is developing a biological waste water treatment plant that would allow us to treat our synthesis waste water 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 waste water every year to a third-party waste water treatment facility in a neighbouring county.

 

While still at the pilot phase, the results are very promising and the project will progress through the design and planning approval in 2021 with construction to start in late 2021/early 2022. Once fully operational, this waste water treatment plant will significantly improve the quality of the discharged water, allowing the now non-hazardous waste water to be discharged to the domestic sewer. It will also reduce energy and scope 3 greenhouse gas emissions that result from transporting large quantities of waste water.

 

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.

 

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

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. With the majority of our GHG emissions coming from energy use, we primarily focus on achieving GHG improvements through improving our energy efficiency. None of our sites generate sufficient emissions to require participation in a regulatory emissions reduction program in their jurisdiction.

 

All of our significant sites have environmental licences for process emissions such as volatile organic compounds (VOCs) and particulate matter (PM). We have taken measures in the last couple of years to significantly reduce our hazardous air pollutants (HAPs) and we don’t 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 containing R22 we are progressively replacing these with non-ozone depleting substance and where possible, one 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.

 

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

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

Nufarm’s overall GHG emissions declined this year due to a reduction in Scope 1 emissions. With the improvement of drought conditions in Australia we were able to increase production in the second half of this year leading to increase Scope 3 GHG emissions.

 

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

 

305-5: Reduction of GHG emissions

Crop protection

This year we reduced our Scope 1 GHG emissions, by approximately 3,200 tonne or 17 percent. This was achieved by our manufacturing site in Wyke, UK and represents 11 percent reduction in the site’s total GHG emissions. The site operates a significant refrigeration system and while using a refrigerant with very low ozone depleting potential, it had a very high global warming potential. Last year we started a program to improve the reliability, maintenance and monitoring of refrigerant gas levels and this year replaced the gas with one with a significantly lower global warming potential. Overall we reduced our scope 1 and 2 greenhouse gas emissions by 2.5 percent when compared with last year.

 

Seeds Technologies

We harvested our first commercial crops of Nuseed Omega-3 Canola this year; the world’s first land-based source for Omega-3, developed in collaboration with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Grains Research and Development Corporation (GRDC) in Australia. Aquaterra® and Nutriterra® are Nufarm’s solution to sustainable Omega-3 for the aquiculture and human nutrient markets. Growing Omega-3 canola produces 94.5 percent less GHG emissions than sourcing the equivalent amount of oil from wild, caught fish.

 

The first certified Nuseed Carinata harvest and shipment to Europe’s largest biodiesel producer was completed this year. It was processed into a renewable fuel with best in class greenhouse gas (GHG) reduction. Nuseed Carinata is a scalable and sustainable oilseed cover crop used to produce renewable fuel, without requiring additional farmland, from one of the lowest carbon feedstocks available, carinata oil. Nuseed Carinata is certified by the Roundtable of Sustainable Biomaterials (RSB) for the European Renewable Energy Directive (RED) standard. A co-product of crushing carinata to extract the non-food oil is a high protein, non-GMO meal for animal feed.

Nuseed Carinata also provides substantial carbon sequestration, crop diversity and soil health benefits, further contributing to its sustainability and carbon reduction certification.

 

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

Our NOx air emissions increased this year as a result of a boiler being off-line at our manufacturing site in Wyke, UK and needing to increase throughput through our less efficient top-up boiler.

 

We increased air emissions monitoring at our facility in Linz, Austria allowing us to more accurately calculate volatile organic compounds (VOCs) in our emission. This has led to the restatement of these emissions. We are working on a solution to reduce these emissions, being the single most contributing source to this type of emissions. While this has been challenging, the team has identified a safe means of using existing incineration technology. A pilot will be carried out in the coming months.

 

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.

 

This year we have endeavoured to adopt the new GRI-306 Waste 2020 reporting standard early, with the intention of progressively improving data collection and disclosure.

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 over 70 percent of our waste is also hazardous. Due to regulatory restrictions and limited disposal options we have to send much of our hazardous waste for off-site incineration. We use energy recovery options wherever possible, replacing fossil fuels. 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 disposed off-site as a waste. We actively work to improve our cleaning procedures and production planning to reduce the quantity of waste water 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. We audited 10 percent of our waste providers this year. While COVID 19 restrictions limited the program, we will continue with onsite auditing once site visits are again permitted. Our waste suppliers have also started to participate in our corporate social responsibility (CSR) assessment program this year, which is outlined in GRI disclosure 308.

306-3: Waste generated

Our waste is comprised of many small, discrete streams; 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, the focus of Nufarm’s pollution prevention activities has been on greenhouse gas emissions (refer GRI disclosure: 305-5), air emission (refer GRI disclosure: 305-6/305-7) and waste water (refer GRI disclosure: 303-3) projects, however, our sites have successfully implemented a number of smaller waste improvement projects. These include, reducing hazardous waste wash water by over 100KL across a number of different process plants, working with a supplier to change raw material packaging to a recyclable material, optimising dust collectors clean out procedures to allow the material to be reused rather than disposed of as a hazardous waste, diverting timber pallets from landfill to refurbishment and identifying a recycler to take and cleanout drums, diverting them hazardous waste disposal.

 

While these activities have helped to reduce our waste generated this year, the fall in total waste quantity was largely due to the sale of our Brazilian manufacturing site at Fortaleza at the end of March, 2020.

 

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 reported through 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

Nufarm has had no fines, non-monetary sanctions or disputes due to non-compliance with environmental laws or regulations at our operating sites during 2020.

 

While we have a goal of zero non-compliance with regulatory requirements, this year we received nine remedial notices. Two of these were closed out in the same period; the remainder are well progressed, and we anticipate they will be closed to the regulators’ satisfaction during our financial year 2021.

 

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 four 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 initial focus of our program was on high 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 some specific indirect supplier industries, such as waste and logistics service providers.

 

After their initial assessment, we invite our suppliers to undertake a reassessment every year to help drive continuous improvement. We measure improvement through benchmarking our suppliers’ performance against other suppliers assessed by Ecovadis.

 

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. 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 assessed 4 new direct suppliers on environmental and social criteria through our CSR assessment program, these represented 6 percent of our total year’s direct procurement spend.

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 suppliers increasing the number of suppliers that have completed CSR assessments from 117 in 2019 to 136 in 2020.

 

We measure this as a percentage of direct procurement spend; last year the 117 assessed suppliers represented 49 percent of our spend while this year the 136 assessed suppliers represented 48 percent of our total direct procurement spend in Australian dollars. Despite the increased number of assessed suppliers, the devaluation of the Australian dollar in 2020 has contributed to the plateauing of the metric this year as has the sale of our Latin American business and the accompanying reduction in procurement spend on assessed suppliers.

 

 

EcoVadis has assessed more than 60,000 suppliers globally and we benchmark our suppliers against this. In 2020 Nufarm’s assessed suppliers scored an average of 26 percent above the Ecovadis population average on environmental themes and 20 percent above the global average on social themes. Across all themes, Nufarm’s assessed suppliers score an average of 22 percent above the global average. This year 68 percent of our suppliers undertook a reassessment and achieved an average 2 percentage increase in their overall CSR score.

 

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. Our assessed suppliers have not had any significant environmental or social impacts in our supply chain this year.

 

In 2020, 17 percent of our assessed suppliers (20 percent 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.

 

We are pleased to see that our focus on lower performing suppliers is starting to drive change and reduce the potential sustainability impacts in our supply chain. Through auditing these suppliers regularly, we have seen that they are investing significantly in sustainability improvements at their operations and fifty-two percent of these suppliers have repeated a CSR assessment this year to support their own continuous improvement efforts.

 

Of the 136 suppliers who have participated in a CSR assessment to date, the majority were able to demonstrate that they had ISO14001 and ISO45001 in place at least at one of their operational sites.

 

We have not terminated any significant business relationships with suppliers on environmental or social grounds this year.

GRI 400: Social

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

Our people and culture play an important role in delivering on 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; 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 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 26 percent (2019: 33 percent) of new hires aged less than 30 years of age, 57 percent between 30-50 years and 17 percent over the age of 50 (2019:13 percent). This shift away for early in career to later in career has occurred mostly in the Sales and IT functions where we have sourced talent with greater experience and/or with required specialised skills.

 

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; participation in the company share plan, paid parental leave, health care, accident and injury insurance, 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 regions. This year parental leave was accessed by almost two percent of the workforce. Men represented 40 percent (less than one percent of the male workforce) of parental leave taken while women represented 60 percent (four percent 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 we see 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.

 

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. Some of the affected employees are engaged under an individual employment contract and others under a collective bargaining agreement.

 

Raymond Rd operations are expected to cease in mid calendar year 2021 followed by decommissioning of the site; the 56 impacted employees were given 12-18 months’ notice of redundancy. 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.

 

In both cases, the notice periods given to employees were well in excess of local regulatory requirements and contractual minimum requirements. All employees will receive full entitlements at the end of their employment and reemployment support has already commenced.

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 risk and compliance Board Committee. 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 safety 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.

403-1: Occupational health and safety management system

Our revamped 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.

We are a member of Responsible Care (an initiative of the international chemical industry to improve HSE performance) and through our membership we gain insight to advances in best practice that we can adopt across our own operations.

 

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.

 

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 HSE 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 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 Whistleblower Policy which provides protection for all employees and non-Nufarm persons reporting a safety related concern covered by our 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.

 

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.

 

We made good progress in closing out action items identified during the PSM gap audit in 2017 with 96 percent of actions now completed (2019: 83 percent).

 

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 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 safety 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.

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.

 

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 percent of our employees. It also covers all non-employees who work at that site.

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

 

We furthered our efforts to reverse this trend, reinvigorating our safety emphasis through stop work initiatives and safety leadership programs. The renewed effort has resulted in more people going home safely every day and in Nufarm achieving its lowest ever lost time injury performance across the business. Our Lost Time Injury Frequency Rate (LITFR) of 0.29 as a 12-month rolling average is down from 1.53 in 2019 and is on par with best practice in our industry.

 

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.

 

Over these months, 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.

 

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 sales people 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 has recently been launched and deployed in English to 956 employees, with current active participation of 48 percent, including through online and workshops. This includes 100 percent of the Senior Leadership Team from Nufarm. We plan to continue deployment through online training to the remaining staff in their national language for 2021.

 

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

We have rolled out 96 on-line training courses in our new global LMS this year, this delivered at least one training module to 1,827 employees (68 percent of the workforce) to date.

 

At our manufacturing sites we also provided an estimated 54,000 hours of safety related training and 1,700 hours of environmental training. We had intended to conduct more environmental training this year, however COVID restrictions on face-to-face training has delayed the implementation of some training plans.

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 in its third year. 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.

 

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 30 percent of either gender making up our workforce.

 

We established a three-year inclusion and diversity strategy in 2019 with oversight from our Executive Inclusion and Diversity Steering Committee. Our Human Rights and Inclusion and Diversity policies provide further details of our position and management framework for diversity and equal opportunity. Full details of progress on diversity and equal opportunity can be found in the Corporate Governance section of our 2020 Annual Report on pages 33-36.

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 31 percent of all new hires being female in 2020 (2019:31 percent). Females represented 24 percent of people leaving the business compared to 28 percent last year. Overall, we have increase female representation to 25 percent across the organisation (2019:24 percent).

 

Female representation increased in Portfolio Solutions (2019:39 percent), Supply Chain (2019: 19 percent) and Sales (2019:17 percent). Portfolio, Finance and Corporate are functions that already meet our target of no less than 30 percent of either gender. Geographically North America achieved our goal with Europe and ANZ making gradual progress closer to our goal of no less than 30 percent of either gender. All employee categories increased female representation in 2020 apart from the Executive and senior management category at 21 percent (2019: 23 percent).

 

 

Females appointed to the executive and senior management category represented 33 percent and came from within our internal talent pool. Across the organisation promotions showed a higher female representation of 25 percent (2019:23 percent). Twenty-two percent of all internal lateral moves across the organisation were filled by females compared to 34 percent last year. Females represent 20 percent of all people leadership positions across Nufarm (2019:19 percent).

 

The Board considers gender diversity as an important factor in its succession planning. The percentage of female non-executive Directors reduced slightly to 25 percent due to the appointment of a new Director and the transition of the chairman to retirement (2019: 29 percent).

 

 

Age group diversity

We continue to recruit across the career lifespan with 26 percent (2019: 33 percent) of new hires aged less than 30 years of age, 57 percent between 30-50 years and 17 percent over the age of 50 (2019:13 percent). This shift away for early in career to later in career has occurred mostly in the Sales and IT functions where we have sourced 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 over 100 countries. Eleven percent of Board members reside outside Australia (2019: 15 percent). 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 5 percent 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 2020 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 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 (refer to GRI disclosure 102-16) 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 reported incidents of discrimination in 2020.

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

Our 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 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 136 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 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. As a policy, we do not employ child labour (persons under 18 years of age) in hazardous areas of our operations and only employ workers whose age conforms to legal age requirements. 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 any form of 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. Due to local labour shortfalls we sometimes need to employ a small number of foreign workers at our manufacturing facility in Port Klang, Malaysia. We recruit foreign workers directly and not through a third party, applying the same employment procedures and policies we use for all of our Malaysian 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.

 

In line with the requirements of the UK Modern Slavery Act, our Modern Slavery Statement describes the actions we have taken to identify and prevent, to the extent possible, modern slavery in our supply chain.

 

Our 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 have undertaken an internal assessment of all our operations and due to the internal controls, we have in place for recruiting workers, none of our operations are considered to be 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 at risk countries, the complex nature of chemical manufacturing and the need for skilled workers, helps to reduce the industry risk to modern slavery practices.

 

Of the suppliers who have participated in a CSR assessment to date, the majority were able to demonstrate that they have taken actions to address the risk of modern slavery. Of the suppliers who did not make this demonstration, some are suppliers of raw materials and active ingredients located in China and India, but also Australia, Germany, United Sates and France. China and India have a higher risk of modern slavery practices and we are actively managing 18 of these suppliers to improve their sustainability practices. 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 third-party security organisation is engaged to manage site security. Security service providers are required to abide by our 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.

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

We undertook CSR assessments of 4 new raw material suppliers this year, which included 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 likely cause. This was a noise complaint at our site in Gaillon, France. 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

We actively work with growers to educate them in the responsible and safe use of our products. 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 all our regions we provide training and advice on using our products safely and sustainably.

 

 

In Australia, Nufarm continues to invest in SprayWise® Decisions, an innovative internet subscription service that helps rural landholders and contractors to better plan and match the timing of chemical applications to prevailing local weather. 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.

 

 

Nufarm continues to provide spray guidance to product users through hands on educational workshops. These workshops reiterate good spraying practices, nozzle selection and provide growers with opportunities to ask questions.

 

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 consider the latest innovation trends for inclusion into 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.

 

Our products are 100 percent compliant with the regulatory body that approves the registration.

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 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 safely and legally handle and use pesticide products. 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. All Nufarm labels are 100 percent compliant.

 

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. Nufarm follows the standard and is 100 percent compliant in both format and detail.

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

Our operating model puts the customer at the heart of all we do and maintaining the confidentially of customer data is very important to us. Our global risk and compliance team have revised our Global Privacy Policy this year detailing our commitment to our customers on the privacy and protection of their personal data. We only collect and process personal data in line with applicable data protection laws in the regions we operate.

 

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 key customer facing applications within our network and protecting our network with robust controls such as: perimeter security, two factor authentication of material systems, email filtering for phishing and malware, and anti-virus and anti-payload protection. As a business to business organisation, we collect minimal personal data from our websites however we still protect these sites against Brute Force and Denial of Service Attacks.

 

The privacy of our customer’s data is protected with controls such as password protection and access authorisation, remote disabling of laptops in case they are misplaced or stolen, and 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 as a result of the General Data Protection Regulation (GDPR). Our customer facing applications are configured to meet the requirements of this regulation. We have Privacy Officers available in each of the significant regions of operation and they take an active role in educating employees who have contact with customer data about our data privacy procedures.

 

Our corporate risk management framework (refer GRI disclosure 102-30) provides internal assurance for our IT security controls.

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 behaviors 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 Risk and Compliance Board 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.

 

Our internal tax department has developed specific guidance on the group’s tax strategy and policies to ensure compliance and alignment with tax authorities on the treatment of transactions.

 

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

 

We value our license 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 2020 Performance Data Table (.xlsx file).