Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sheep health, welfare and productivity
• Wool harvesting and clip preparation
• Environment, climate change and carbon
• Education and extension
• Fibre quality, innovation and textile development
• Interior textiles and floor coverings
• Market access, sustainable production and improved trading environment

Environmental Achievements

• Initiated an on-farm life cycle assessment (LCA) for wool, showing an 80% reduction in wool's carbon footprint using the "system expansion allocation" method.
• Southern Livestock Adaptation project concluded, providing insights into adapting livestock production to climate change.
• Investigating ways to reduce wool’s carbon footprint post-farm gate, including energy reduction in manufacturing and developing cold-water washable finishes.

Social Achievements

• Lifetime Ewe Management (LTEM) program increased lambs weaned per hectare by 30%, achieved through a 15% increase in ewe stocking rate, a 50% reduction in ewe mortality and a 15% increase in weaning rates.
• Trained 1304 shearers and 886 wool handlers, with an additional 372 participants in introductory workshops.
• Breeding Leadership Course completed by the next generation of wool industry leaders.
• Mothers and Babies program launched to drive demand for Merino wool in baby and infant wear, addressing misconceptions about wool allergies.

Governance Achievements

• Implemented an industry engagement strategy to improve communication and collaboration with woolgrowers and supply chain partners.
• Reviewed and implemented a government relations strategy to strengthen relationships with government stakeholders.
• Maintained a strong focus on accountability and internal control, engaging leading professional services firms for audits and advice.

Climate Goals & Targets

Environmental Challenges

• Significant negative impact of wild dogs on the wool industry.
• Controlling flystrike in high dag country and seasons.
• Maintaining adequate numbers of highly skilled shearers and wool handlers.
• Addressing the misconception that wool is scratchy and can cause allergies.
• Australia’s reliance on China as the major buyer of Australian wool.

Mitigation Strategies

• Invested over $1.5 million in wild dog control, leveraging funding from other sources.
• Fast-tracked R&D program to deliver welfare-improved methods of flystrike prevention, including genetic research and breeding, intradermals, and pain relief.
• Funded training for shearers and wool handlers across a range of skill development activities.
• Undertook scientific research to validate and communicate the health and wellbeing benefits of Merino products for babies.
• Investigating new processor and retail markets for Australian wool in Vietnam, Russia, and Central and South America.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Lightweight Cool Wool fabrics and yarns
• Cold-water washable wool finishes
• Quick-dry wool finishes

Environmental Metrics

ESG Focus Areas

• Sustainability
• Animal Welfare
• Environmental Impact

Environmental Achievements

• AWI’s ‘Wear Wool, Not Fossil Fuel’ campaign had strong positive results highlighting wool's natural, renewable, and biodegradable qualities.
• Research into methane-reducing supplements for sheep.
• Research demonstrated positive environmental impacts of exclusion fencing.

Social Achievements

• 4,031 novice and intermediate wool harvesting participants were trained, with an 81% retention rate.
• AWI’s Flystrike Extension Program expanded, providing woolgrowers with practical information and tools.
• AWI Industry Relations Officers appointed in NSW, SA, and VIC to improve grower engagement.

Climate Goals & Targets

Environmental Challenges

• Shortage of shearers and wool handlers.
• Managing flystrike.
• Decreasing revenue due to a reduced wool levy and challenging global economic conditions.
• Potential phase-out of live exports from Australia.
• Likelihood of an El Niño weather pattern (low rainfall).

Mitigation Strategies

• Investing in training and retention of wool harvesting staff, improving shed design, and researching biological wool harvesting.
• Expanding the Flystrike Extension Program.
• Increasing efficiencies to reduce administrative costs.
• Collaborating with industry participants to leverage funds efficiently.
• Developing a three-year Strategic Plan to address key industry issues and exploit opportunities.

Supply Chain Management

Responsible Procurement

• Collaboration with various partners including brand partners, RDCs, retailers, universities, and government.

Climate-Related Risks & Opportunities

Physical Risks

• El Niño weather pattern (low rainfall)

Opportunities

• Promoting wool's eco-credentials.

Sustainable Products & Innovation

• New performance wear capsule collection
• Sustainable processing with a focus on natural dyeing

Environmental Metrics

ESG Focus Areas

• Sustainability
• Circular Economy
• Supply Chain Responsibility

Environmental Achievements

• Partners are adopting water-saving dyeing technologies and incorporating recycled materials into products (e.g., Xinao's REMAKE Sustainable Yarn collection with 40% recycled nylon and 60% superfine Merino wool).
• Increased focus on regenerative wool certifications.

Social Achievements

• Collaboration with partners on technical transfer, QA, and staff training in wool dyeing techniques (Vietnam).
• Engagement with procurement managers in NATO countries to promote Merino wool properties for workwear.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased Australian wool production (3.8% drop).
• Price degradation for superfine Merino wool.
• Market downturn in some regions (e.g., Italy, Germany).
• Gas crisis in Bangladesh impacting yarn production.
• Overstock of fabrics and finished products in Japan.
• Consumer uncertainty and cautious purchasing by brands.

Mitigation Strategies

• Promoting Merino wool properties and exploring new market categories (e.g., occasion wear in India, sportswear).
• Focusing on quality certifications in addition to sustainability certifications.
• Leveraging opportunities in emerging markets (e.g., Latin America).
• Supporting partners with technical transfer and market development initiatives.
• Diversification of supply chains by brands to reduce reliance on China.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promoting sustainable practices among partners.
• Technical support and training for partners.

Climate-Related Risks & Opportunities

Physical Risks

• Climate variability impacting purchase planning and sell-out.

Transition Risks

• Regulatory changes around hazardous chemicals (e.g., ZDHC).

Opportunities

• Growing demand for sustainable and bio-based alternatives.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Partners' sustainable yarn collections.

Awards & Recognition

• Not disclosed