Strategic Plan FY2022-FY2024 Sheep Sustainability Framework | Strategic Plan 2022–24 1 Contents Strategy on a page..................................... 3 Background................................................ 4 Situational analysis................................... 7 Strategic Plan ............................................ 9 Approved by Sheep Sustainability Framework Steering Group and Sheep Sustainability Framework Board – 12May 2022. Stakeholder engagement ........................ 10 Care is taken to ensure the accuracy of the information contained in this publication. However, Sheep Sustainability Framework cannot accept Data collection and reporting.................. 11 responsibility for the accuracy or completeness of the information or opinions contained in the document. You should make your own enquiries before making Continuous improvement........................ 12 decisions concerning your interests. Sheep Sustainability Framework accepts no liability for any losses incurred if you rely solely on this publication and excludes all liability as a result of reliance by any person on such information or advice. FY2023 activities ..................................... 13 Apart from any use permitted under the Copyright Act 1968, all rights are expressly reserved. © Sheep Sustainability Framework 2022. Published in July 2022. 2 Strategy on a page THE SHEEP SUSTAINABILITY FRAMEWORK The role of the Sheep Sustainability Framework is to monitor, measure, and report industry performance against sustainability priorities. THE SHEEP SUSTAINABILITY FRAMEWORK VISION Sustainably producing the world’s best sheep meat and wool, now and into the future F22-F24 OVERALL STRATEGIC OBJECTIVE To embed the Sheep Sustainability Framework (SSF) into the Australian sheep industry THREE STRATEGIES STAKEHOLDER ENGAGEMENT DATA COLLECTION AND REPORTING CONTINUOUS IMPROVEMENT Impactful and insightful Defensible and accessible Active and curious Development and execution of a ◼ collection and reporting of SSF ◼ evaluation of Framework progress Stakeholder Engagement Strategy data in an annual report and relevance every 12 months that comprises initiatives to: ◼ provision of an easily accessible, ◼ investigation and resolution ◼ promote and communicate user-friendly, and regularly updated of an identified SSF gap via the SSF, and web-based data reporting dashboard a deep dive process ◼ facilitate a two-way consultation ◼ development and execution of ◼ review of industry materiality study that encourages SSF ownership an Indicator Reporting Plan to ◼ responses to contemporary and and identifies opportunities for ensure all indicators have metrics emerging trends in sustainability improvement of the SSF along the and data by the F24 report e.g., scientific findings, changes sheep meat and wool supply chains. ◼ development of protocols in measurement and reporting, for the collection and the evolution of customer needs, reporting of each metric. consumer expectations, etc. ◼ professional development of the Steering Group in key sustainability concepts ◼ collaboration and alignment with other industry frameworks, including the Australian Beef Sustainability Framework Steering Group, Australian Agriculture Sustainability Framework, and the Grains Industry Sustainability Framework. Sheep Sustainability Framework | Strategic Plan 2022–24 3 Background Framework development and launch The Sheep Sustainability Framework (SSF) is a food and fibre framework launched in April 2021. The SSF sets the industry vision, defines sustainability for the Australian sheep industry and articulates the key themes and priorities on which the industry must focus in order to realise the vision. The 18-month design and development process involved identification and quantification of industry impacts on sustainability, extensive consultation with industry stakeholders, expert guidance on indicator and metric development, and industry approval. The role and function of the SSF The role of the Sheep Sustainability Framework is to monitor, measure, and report industry performance against sustainability priorities. The Framework will assist the industry in better understanding its opportunities, challenges, and impacts. It will also demonstrate sustainable practices and identify areas for improvement. Data and trends gathered through the Framework will identify opportunities on-farm, in transport, processing and at the customer interface where practices can be improved by both the industry and individuals. In doing so, it can be used by industry to help protect and grow access to investment, finance, customers, and markets by providing credible evidence of performance and improvement. Further, individual enterprises may use the Framework to understand the industry’s material issues and consider these in their forward planning. The Sheep Sustainability Framework recognises that industry sustainability encompasses the environment, the animals, the people, and their prosperity. Further, it is acknowledged that each sheep meat producer and wool grower will have their own enterprise relevant sustainability goals that reflect their geographical, climatic, and operating environment. The Framework does not set industry policies, goals or targets, drive extension or adoption, audit or certify individual businesses or impose costs or reporting requirements on individual businesses. Sheep Sustainability Framework | Strategic Plan 2022–24 4 Governance Sheep Producers Australia (SPA) and WoolProducers Australia (WPA) are the peak industry councils (PIC) for the sheep meat and wool industries respectively. These bodies lead the Framework and have the mandate to take the SSF outputs and use them as supporting evidence to set relevant industry policy. Rural research and development corporations (RDCs) Australian Wool Innovation (AWI) and Meat & Livestock Australia (MLA) support the SSF by providing funding along with strategic and secretariat support. The first Sustainability Steering Group (SSG) designed and developed the framework. The SSG is responsible for leading the framework by setting the strategy and implementation plans and representing and promoting the SSF in relevant settings. The SSG features strong representation across sheep-producing regions and the wool and meat value chain. A Consultative Committee, made up of representatives from these groups, will be formed in late 2022 to provide ongoing input to the Framework. An Industry Forum will also be developed to discuss issues specific to internal stakeholder groups. Expert working groups will also be convened when necessary. The industry will report progress against the SSF annually. Note that separate performance indicators will be included for the sheep meat and wool sectors as relevant and where data exists. Sheep Producers Australia To make top level decisions and Approve and Wool Producers Australia to improve the Framework Lead Sustainability Steering Group To develop, build and deliver the Framework Consultative Committee To be established following Framework consultation. Perspectives and expert working groups Made up of industry and other stakeholders. Australian Wool Innovation Support To provide strategic and secretariat support and Meat & Livestock Australia Table 1: Sheep Sustainability Framework governance structure Sheep Sustainability Framework | Strategic Plan 2022–24 5 The Framework audience The primary audience of the SSF are those stakeholders in the value chain who are highly engaged and invested in the industry. The monitoring, measuring, and reporting of industry performance by the SSF will be highly relevant in their decision-making. At the ‘bookends’ of value chain are stakeholders who will be indirectly influenced by the SSF. Grass-roots producers will be communicated to by their state farming organisations (SFO), PICs and RDCs. Consumers will have relevant and targeted messaging conveyed by the marketing and communications functions from the RDCs. SFOs Grass Agricultural and Industry Customers Banking Government Media Curious General roots and and and producers processing groups markets and finance research activities consumers consumers corporations Diagram 1: The SSF audience along the value chain Sheep Sustainability Framework | Strategic Plan 2022–24 6 Situational analysis Strength, Weaknesses, Opportunities and Threats (SWOT) The SWOT analysis shows that the key strength of the SSF is that it has been developed through a thorough and inclusive process. In terms of weakness, it is understood that the challenge of effecting change is made more difficult by industry fragmentation, along with the complexity of issues and a lack of awareness. The opportunities now are to drive engagement and awareness of the SSF; to gather and disseminate the data; and to ensure continuous improvement of the framework. The threats are that in a fragmented industry, there will lack of clarity of accountability for improving practice, while aggressive activism may erode the effectiveness of the framework. STRENGTHS WEAKNESSES What are the current positives for the SSF? What are the current shortcomings for the SSF? ◼ Thorough and well-constructed document ◼ Collaborative process, ensuring ◼ Diverse nature of industry, buy-in along the supply chain making traction difficult ◼ Industry backing ◼ Complexity of the issues ◼ Current lack of awareness OPPORTUNITIES THREATS Where are the opportunities that What are the external risks to the SSF? exist to deliver on the SSF? ◼ Industry fragmentation ◼ Engaging stakeholders, and ◼ Lack of clarity and accountability explaining the benefits for delivering the Framework ◼ Gathering and disseminating robust data ◼ Aggressive activism, eroding ◼ Continually strengthening the Framework Framework effectiveness Diagram 2 : SSF strengths, weaknesses, opportunities and threats Sheep Sustainability Framework | Strategic Plan 2022–24 7 Issues and implications The situation analysis shows that there are significant reasons to believe that the SSF can drive change – sustainability is recognised as an important issue; the SSF is an excellent piece of work; and the current strong operating environment, making it more likely that industry players will be open to change. However, effecting change will not be easy. There are many actors along the value chain and the range of approaches will need to be considered in light of the stakeholder. Communication and messaging needs to be kept simple; and there are many organisations in the sheep industry, so there needs to be clarity about roles and responsibilities. ISSUES IMPLICATIONS Sustainability is recognised as a key issue for all stakeholders The time is right for SSF SSF is excellent work, built from a collaborative process We are starting from a place of positivity and goodwill The operating environment is strong (high demand, low interest rates, strong season) Stakeholders are more likely to embrace change if they are performing Large and diverse group of stakeholders along the supply chain Need for segmented approach to effect change Producers are resistant to bureaucracy and regulation Keep it simple Different groups and bodies in the industry We need to be clear on roles and responsibilities Table 2: Sheep Sustainability Framework issues and implications summary Moving the framework forward The 3-year SSF Strategic Plan must drive an evolution of the SSF - from a document with low exposure to one with high profile and awareness; from one that may provoke suspicion among industry players to one that is trusted; from focus on the producer to focus on the whole supply chain. The document must have complete metrics, and it needs to be continually evolving to reflect the latest science. Through all of this, it will inform the industry of the required improvements and serve as compelling evidence to drive change. FROM TO Little exposure High profile, with high awareness Suspicion will erode profitability and have onerous requirements Trust Producer focus Whole if supply chain relevance Incomplete, aspirational metrics Complete, real metrics Static document Dynamic document, constantly reflecting latest trends and latest science Limited impact Informing and driving change Table 4: Sheep Sustainability Framework movement required from FY2022–FY2024 Sheep Sustainability Framework | Strategic Plan 2022–24 8 SHEEP SUSTAINABILITY FRAMEWORK Strategic Plan FY2022–FY2024 Overall objective for FY22–FY24 To embed the SSF into the sheep industry so it becomes a living, working industry instrument where its use is part of ‘business as usual’. Three strategies The activation of three strategic areas, each with supporting activities, will be required to move the SSF forward and propel it towards its objectives: STRATEGIES Stakeholder engagement Data collection and reporting Continuous improvement We actively appraise and improve the OPERANDI Our promotion and consultation MODUS Our data must be as defensible as framework and ourselves. activities must make impact and practicable and easily accessible to all. We are curious and conversant with generate insights. current and emerging material topics. Stakeholder engagement strategy Protocols for data collection SSF review SUPPORTING ACTIVITIES Keeping up with Framework promotion Indicator reporting plan contemporary thinking Framework consultation Visual insights reporting function Framework fellowship Sheep Sustainability Framework | Strategic Plan 2022–24 9 Strategy 1 Stakeholder engagement Impactful and insightful Our promotion and consultation activities must make impact and generate insights. Producing both food and fibre, the Australian sheep industry comprises tens of thousands of farming enterprises, operates over a vast area, spans many jurisdictions, and is overseen and supported by numerous, different-sized organisations. As a result, the stakeholder landscape is both large and complex. The Stakeholder Engagement Strategy is how the SSF will inform, involve, consult, and partner with the breadth of sheep meat and wool supply chain stakeholders who influence, drive, and implement industry actions. The Stakeholder Engagement Strategy acknowledges two separate but related needs – the need for promotion and communication of the SSF, and the need for a dynamic two-way consultative mechanism that drives ownership and improvement of the SSF. SUPPORTING ACTIVITY 1 SUPPORTING ACTIVITY 2 Framework promotion Framework consultation The Framework Promotion focus of the Stakeholder Industry ownership and endorsement of the SSF Engagement Strategy involves design and requires more than just communication and promotion. optimisation of messaging via vehicles such as A sound consultative approach that comprises real the annual report, media releases, Newes and opportunities for all parties to listen and respond is Wether, social channels and the SSF website to: required to build trust and understanding between the SSF and key stakeholders across the sheep meat ◼ raise awareness of the SSF and wool supply chains from farm to consumers. ◼ improve understanding of role and function of SSF ◼ illustrate use and application of the SSF The Framework Consultation focus of the Stakeholder ◼ update industry on key SSF activities Engagement Strategy concerns itself with the and developments. customisation of interactions with priority stakeholders to drive industry ownership, application, and The supporting RDCs AWI and MLA have well-established endorsement of the Framework. This includes proactive communication channels through which the SSF can targeted single stakeholder meetings, consultative deploy messaging to extend the relevant audience committees, industry forums, annual report launch reach. This includes regular e-newsletters, website news events, speaking engagements and participation in updates, social channels, and relevant industry events. workshops, conferences, and round table discussions. Sheep Sustainability Framework | Strategic Plan 2022–24 10 Strategy 2 Data collection and reporting Defensible and accessible Our data must be as defensible as practicable and easily accessible to all. Tracking industry progress with defensible data is the keystone of the Sheep Sustainability Framework. Sound reporting will reliably track changes over time, showcase strong performance, and identify areas that require improvement. Moreover, it demonstrates industry transparency and a willingness to continuously evaluate, renovate and innovate the production of ethically, environmentally, socially, and financially responsible sheep meat and wool. Defensible data is accurate, valid, reliable, and timely. Defensible data, reported in an accessible fashion, empowers informed decision making, and helps prioritise resources. From a strategic point of view, defensible and accessible data increases efficiency while helping to eliminate doubt. The confident evaluation of trending data will inform each strategic phase of the SSF. Three supporting activities will underpin the Data Collection and Reporting strategy. SUPPORTING ACTIVITY 1 SUPPORTING ACTIVITY 3 Protocols for data collection Visual insights reporting function This approach concerns the generation of written The annual demonstration of sheep industry performance procedures and protocols for the collection of using static data embedded in a PDF document limits reportable data for each metric. Written, tested both the accessibility and readability of the report. and validated protocols reduce data collection The transition to a customisable, web-based visual error and eliminate single-person dependency. insights dashboard will ensure SSF data is easily New or updated protocols will be added if more accessible, intuitively presented, and simple to interpret. representative metric data or improved methods of Improving the overall user experience will make the data collection and reporting become available. SSF more meaningful and impactful over time. SUPPORTING ACTIVITY 2 Indicator reporting plan It is a foundational principle of the SSF that all indicators are reportable either using direct metrics or by an appropriate proxy. The inaugural 2021 Framework document reports data for 55% of its indicators, thus necessitating the development and execution of an Indicator Reporting Plan, with a target to ensure 100% of indicators have metrics and a data source by the FY2024 report. Sheep Sustainability Framework | Strategic Plan 2022–24 11 Strategy 3 Continuous improvement Active and curious We actively appraise and improve the framework and ourselves. We are curious and conversant with current and emerging material topics. Continuous improvement for the SSF is defined as the practice of regular re-examination of the Framework to ensure its focus and administration remain relevant. It is important that mechanisms are in place to identify potential issues or gaps in the SSF, and appropriate modifications can be implemented. Further, in order to maintain its value as an industry leadership initiative, the SSF must be responsive to current topics and new developments in relevant subject areas. Continuous improvement will be informed by three supporting activities. SUPPORTING ACTIVITY 1 ◼ information and updates on live material SSF review issues such as mulesing and biosecurity ◼ CSIRO webinars on planetary boundaries, water The 12 monthly SSF review will focus on the health and use, land use, nutrition, radiative forcing relevance of the SSF through specific activities. i.e.: ◼ MLA CN30 webinars ◼ overall evaluation of SSF progress ◼ trade access ◼ tracking against Indicator Reporting Plan ◼ investment and finance ◼ confirmation of material topics and identification ◼ reporting regulations and standards. of any new or emerging topics. SUPPORTING ACTIVITY 3 SUPPORTING ACTIVITY 2 Framework fellowship Keeping up with contemporary thinking Establishing relationships and collaboration with other Effective examination of the SSF will require the SSF sustainability framework groups will allow better sharing Steering Group members and industry stakeholders of information and insights and ensure framework to have a working knowledge and awareness of the alignment. Whilst commonality is recognised with the prevailing and emerging trends in key sheep meat and Australian Beef Sustainability Framework, it must be wool sustainability topic areas e.g., scientific findings, acknowledged that many sheep producers and wool improvements in measurement and reporting, the growers also have cropping in their operation. This evolution of customer needs, consumer expectations. suggests that collaboration with the relevant cropping The SSF will engage with experts and service providers framework would prove useful. In the first instance, to inform Steering Group members and industry collaborative opportunities will be created with: stakeholders about a range of relevant sustainability ◼ The Australian Beef Sustainability topics in the most appropriate delivery mode and Framework Steering Group setting. The topics/programs are likely to include: ◼ Grain Growers and Behind Australian Grains – The ◼ carbon agriculture training with Professor Australian Grains Industry Sustainability Framework Richard Eckard from Melbourne University ◼ The Australian Agricultural Sustainability Framework. Sheep Sustainability Framework | Strategic Plan 2022–24 12 SHEEP SUSTAINABILITY FRAMEWORK FY2023 activities The SSF has begun FY2023 by initiating the activities aligned with the three strategies identified in the FY2022-FY2024 SSF Strategic Plan. STRATEGY ACTIVITY TIMING Activation of stakeholder engagement strategy Q1-Q4 FY2023 Activation of communication plan Q1-Q4 FY2023 Stakeholder engagement Consultative committee meeting Q2 FY2023 Industry forum Q3 FY2023 Completion of written protocols for data collection Q1 FY2023 Completion of indicator reporting plan for FY2023 and FY2024 Q1 FY2023 Data collection and reporting Launch of mid-year update Q2 FY2023 Launch of second annual update Q3 FY2023 Inaugural ABSF and SSF combined steering group meeting Q1 FY2023 SSG skill building: carbon in agriculture Q1 FY2023 Continuous improvement SSF review Q3 FY2023 Deep dive into data identification and collection for the theme of looking Q1-Q2 FY2023 after our people, our customers and the community Sheep Sustainability Framework | Strategic Plan 2022–24 13 For more information, please contact Sarah Hyland Secretariat – Sheep Sustainability Framework Level 1, 40 Mount Street North Sydney NSW 2060 E: shyland@mla.com.au T: +61 (2) 9463 9395 FACEBOOK-SQUARE /sheepframework TWITTER-SQUARE @Sheep_Framework LINKEDIN linkedin.com/company/69276802 www.sheepsustainabilityframework.com.au