none
none

ALDI ADVOCATES ETHICAL AUSTRALIAN FRAMEWORK

12-09-2017
by 
in 

Aldi's Australian presence is growing fast, taking up 13% of the market with 2017 sales expected to top the $8 billion mark. As a leading competitor to the 'big two' supermarkets, Aldi is shaping up its act when it comes to how it sources goods and conducts business. 

Already praised for having ethical chocolate domestically, and strong animal rights advocacy and measures overseas, the supermarket giant is unifying its policies across divisions, and turning Aldi Australia that little bit more ethical. 

As part of widespread reforms, Aldi is insisting that their Australian suppliers sign up to rigorous ethical sourcing programs and auditing regimes. The pressure it is placing on its own suppliers to sharpen their corporate social responsibility systems is viewed by industry experts as part of Aldi’s global initiative for the next five years. 

In a recent report to its industry clients, Britain’s IGD Retail Analysts warned that suppliers should take note of the growing importance of corporate and social responsibility to Aldi.

“As ethical standards become more important for both Aldi businesses, suppliers should review their sourcing and make changes in production to meet Aldi’s growing focus in this area,’’ IGD said.

“Branded manufacturers will have to improve the health credentials of their products and invest in sustainable sourcing in order to better compete with Aldi’s own ranges.”

With cheap pricing and ethical sources on its side, Aldi stands to take up more and more of the domestic supermarket market as time goes on. 

In documentation obtained by The Australian, a clear timeline is visible for Aldi's changes and overhauls. 

Starting in August, suppliers to Aldi have needed to include social audit information in all tenders. By November, they need to become a member of one of two leading corporate and social responsibility groups, Supplier Ethical Data Exchange (Sedex) or the Business Social Compliance Initiative (BSCI).

In addition, suppliers must provide an internal ethical sourcing policy, and share accepted third-party audits. 

“All social audits for production facilities that supply product to Aldi stores must be carried out by one of the audit companies approved by the BSCI,’’ the presentation to local suppliers states.

“Suppliers must proactively review social audit reports and provide corrective action for non-compliances in a timely manner. It is the responsibility of the supplier and production facility to discuss the findings and provide supporting documentation or photos showing corrective actions for noncompliances.”

A spokesman for Aldi said that “in addition to requiring high social standards throughout the supply chain, we also aim to source raw materials responsibly, lessen our impact on the environment, support Australian businesses and give back to the communities we operate in, and help make healthy choices affordable for our customers.” 

Related news & editorials

  1. 20.02.2018
    20.02.2018
    by      In
    An in-depth analysis of the battery industry in Australia has shown that lithium totals a $2 trillion investment opportunity, and despite investment in other kinds of battery technology, Australia must act or be left behind in lithium tech. 
    The Association of Mining and Exploration Companies (AMEC... Read More
  2. 20.02.2018
    20.02.2018
    by      In
    Lockheed Martin Australia has opened a new $12 million Lockheed Martin Australia House on the edge of Canberra’s Parliamentary Triangle. 
    The new office was opened by Defence Industry Minister Christopher Pyne, who said the company has cemented its ongoing commitment to Australia's defence industry... Read More
  3. 20.02.2018
    20.02.2018
    by      In
    Expressions of interest have now opened for trade works on the Osborne Naval Shipbuilding Precinct infrastructure project, promising up to 600 new construction jobs, and ongoing maintenance procedures. 
    Under the project, new facilities will be required to support the continuous build programs for... Read More
  4. 20.02.2018
    20.02.2018
    by      In
    With 'temporary' demountable structures making up more than one-in-ten classrooms in NSW, it is clear the education system is struggling to keep up with expansion. 
    Facing a future with more than five thousand demountables, many of which remain in place for upwards of ten years, the Centre for... Read More