Woolworths shareholders demand urgent action to deliver genuine deforestation-free commitment

Woolworths shareholders are today calling on the supermarket to ensure its deforestation-free commitment is not just hollow words, lodging a set of resolutions ahead of the company’s annual general meeting (AGM). The resolutions, co-filed by ethical share trading platform SIX and the Wilderness Society, call for Woolworths to ensure its no-deforestation commitment applies to Australia’s largest driver of deforestation—beef—and to stop relying on a dodgy timber certification scheme.

The shareholder resolutions come just days after Woolworths effectively gutted its no-deforestation commitment, labelling beef as a “low-risk” commodity for deforestation, despite the significant deforestation risk it exposes the company to. This revelation was made in its sustainability report, which also disclosed that Woolworths will continue to rely on a flawed certification for timber products like pallets.

In August 2024, Woolworths announced a “no deforestation” target, promising to eliminate deforestation from its supply chains by 31 December 2025. The commitment followed mounting public pressure and was welcomed as an acknowledgment that the company’s operations could be contributing to forest destruction in Australia. Now, with about four months until the deadline for Woolworths to have achieved deforestation-free status, the supermarket has yet to disclose progress that will ensure its supply chains are free from bulldozed koala habitat.

Australia is a global deforestation hotspot. Every day, forests and bushland—home to endangered species—are bulldozed to make way for beef pasture and to produce timber products. Woolworths is one of the country’s biggest buyers of Australian beef and a major user of timber pallets. Shareholders are concerned that Woolworths is effectively ignoring the deforestation-risk associated with these two commodities instead of taking credible action, leaving forests and wildlife exposed to further destruction, as well as eroding public trust in Woolworths’ ability to meet its climate commitments.

Woolworths’ so-called “new no-deforestation goal” comes just weeks after NSW and QLD’s State-wide Land Clearing Studies (SLATS) confirmed agriculture was the number one driver of deforestation in the two states, while forests in NSW are still logged to make pallets used to transport groceries across the country.

Woolworths is failing to make sure its supply chain is free from forest and bushland destruction, despite tens of thousands of customers pressuring the supermarket through petitions, community events and social media.

The resolutions urge Woolworths to act on beef as the high risk commodity that it is and reconsider its reliance on a dodgy timber certification, in line with the best practice requirements of the Science Based Targets initiative. As one of Australia’s largest retailers and the first of the two major supermarkets to commit to deforestation-free supply chains, the Wilderness Society says Woolworths has a unique opportunity to lead on forest protection if it acts now.

“The resolutions send a clear signal that shareholders think it’s time for Woolworths to get real and properly deal with deforestation-risk. They won’t accept empty promises,” said Victoria Jack, Campaigner for the Wilderness Society. “Woolworths made a public commitment to ensure the products it’s sourcing and using are deforestation-free, and both customers and investors are expecting them to deliver meaningful action.” 

“By lodging these resolutions, shareholders are holding Woolworths to account and making sure deforestation will be in the spotlight at the AGM in October.

“With about four months until Woolworths needs to prove its groceries are not coming from deforestation, Woolworths must ensure its commitment and actions reflect the scale and urgency of Australia’s deforestation problem.

“Woolworths has chosen to rely on a flawed classification of beef as ‘low risk’ not because it’s accurate, but because it suits them. It’s not in line with international best practice. And at the same time they’re relying on a dodgy certification for their timber products, which won’t ensure their supply chain is free from pallets made of native forests.

“Aussie families don’t expect to be eating groceries that could be from bulldozed koala habitat. Yet without robust implementation of genuine corporate deforestation-free commitments, that’s what could be on the shelves.”

Phoebe Rountree, Campaigns Manager at SIX, said, “In the very same week Coles announces they’ll source deforestation-free beef for their own brand products, Woolworths is winding back their own deforestation-free commitments. It is a disturbing development.

“Shareholders won’t allow Woolworths to weasel out of their no- deforestation commitments.

“Shareholders expect better. We shouldn’t need to lodge resolutions to get Woolworths to stick to their own commitments on deforestation.  Shareholders shouldn’t need to step in to stop Woolworths taking careless risks with their own brand by damaging nature. 

“This resolution marks a clear message from shareholders to Woolworths on nature risk. It’s time Woolworths listens and acts.” 

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This information is not investment or financial product advice. The Wilderness Society is providing factual information only and does not make any recommendations regarding any investment, including any investment in Woolworths shares. All decisions made by shareholders are at their own risk. Consumers should make their own assessment, and consider obtaining independent advice, before making any financial or investment decisions.