Sustainability
Learn about RFM’s incorporation of sustainability considerations in the management of agricultural assets.
RFM seeks to operate in a sustainable manner by considering the impact of its activities on the environment, the people within the business and the local communities where we operate.
As an externally managed fund, RFF adopts the Sustainability Policy of the Responsible Entity, RFM.
Applying sustainable practices is in the best interest of investors and the environment, and RFM believes that good environmental practices typically produce good farming outcomes. Environmental sustainability is defined as responsible stewardship of natural systems and resources. RFM's farming activities are dependent on using these natural systems and resources. To ensure sustainable productivity now and into the future, we recognise it is important that these assets are managed appropriately.
RFM’s business is also dependent on its people and other stakeholders, such as the communities in which the company operates. Social aspects of sustainability consider the impact of our activities on these stakeholders.
Appropriate governance is another important element of sustainability, please refer to the Corporate Governance Statement for further information on this aspect.
RFM aims to provide information to investors about sustainability initiatives relevant to RFF. During FY23, continued progress was made on commitments outlined in the FY22 Annual Report. Key initiatives and progress on commitments are presented below.
FY23 highlights
Governance
- Implementation of a Sustainability Policy considering environmental and social aspects.
- Updated Risk Management Policy to include climatic considerations.
GHG emissions
- Greenhouse gas (GHG) emissions quantification.1
- Improved knowledge of emissions profile and data capture processes.
Sustainability reporting progress
- Continued review of evolving sustainability reporting.
Carbon feasibility studies
- Engaged with multiple lessees to carry out carbon sequestration feasibility analysis.
Diversity
- Formalised target of 40% female representation on the RFM Board by 2026.
Community engagement
- Engaged with and supported several groups throughout the year.
Safety
- Implemented ongoing improvements to the safety management system.
Progress of sustainability focus areas
As part of the development of the Sustainability Policy, RFM identified a number of environmental and social focus areas. Progress achieved in FY23, and future actions in these areas are presented below:
Climate change and climate-related risk management
Projects
FY23 progress
- Second year of macadamia orchard monitoring program.
- Two macadamia progeny field trials planted.
- Recycling project on macadamia irrigation installation.
Future actions
- Continue macadamia program, project and trial.
Responsible production and consumption projects
RFM recognises that the sustainability of natural resources is linked to responsible consumption and production. We seek to minimise environmental impacts by improving resource efficiency and reducing waste and pollution, aligning with our aim to produce more with less. The following are key examples of our initiatives in this area.
- Orchard monitoring program: The program is in its second year of operation and was expanded to include additional Permanent Samples Plots (PSP). The PSP provide data to improve precision agronomic management concerning nutrient efficiency and yield.
Image: Macadamia orchard monitoring program PSP including communications, vapour pressure deficit sensor, sap flow meter and soil moisture sensor at Riverton, central Queensland, September 2023.
- Progeny trial: In collaboration with The University of Queensland, the trial seeks to develop resource efficient macadamia cultivars capable of producing higher yields and high-quality nuts. Trees planted in Maryborough and Rockhampton in FY23
- Polyethylene pipe recycling: Included as part of the installation of an irrigation pipeline to supply water from the Fitzroy River to several water storages within the macadamia developments. The recycling program reduced waste from pipe welding. Believed to be a first of its kind, the project is estimated to recycle approximately 18 cubic metres of polyethylene plastic shavings which would otherwise have become landfill.
Image: Polyethylene waste recycling program during installation of the rising main pipeline, Rookwood Farms, central Queensland, July 2023.
- myBMP Certification: Occurring on cotton properties, the certification focuses on farm level improvements to promote sustainable production through efficient water use, water storage and water quality as well as maintaining and enhancing soil structure and fertility.
- Hort360 Reef Certification: The certification attained for Bundaberg macadamia orchards promotes standards to protect sensitive marine environments such as the Great Barrier Reef from potential run-off, including sediment and fertiliser.
Certifications
FY23 progress
- Awarded accreditation with Hort360
Reef Certification. - Commenced myBMP Certification.
Future actions
- Finalise myBMP Certification.
Responsible production and consumption projects
RFM recognises that the sustainability of natural resources is linked to responsible consumption and production. We seek to minimise environmental impacts by improving resource efficiency and reducing waste and pollution, aligning with our aim to produce more with less. The following are key examples of our initiatives in this area.
- Orchard monitoring program: The program is in its second year of operation and was expanded to include additional Permanent Samples Plots (PSP). The PSP provide data to improve precision agronomic management concerning nutrient efficiency and yield.
Image: Macadamia orchard monitoring program PSP including communications, vapour pressure deficit sensor, sap flow meter and soil moisture sensor at Riverton, central Queensland, September 2023.
- Progeny trial: In collaboration with The University of Queensland, the trial seeks to develop resource efficient macadamia cultivars capable of producing higher yields and high-quality nuts. Trees planted in Maryborough and Rockhampton in FY23
- Polyethylene pipe recycling: Included as part of the installation of an irrigation pipeline to supply water from the Fitzroy River to several water storages within the macadamia developments. The recycling program reduced waste from pipe welding. Believed to be a first of its kind, the project is estimated to recycle approximately 18 cubic metres of polyethylene plastic shavings which would otherwise have become landfill.
Image: Polyethylene waste recycling program during installation of the rising main pipeline, Rookwood Farms, central Queensland, July 2023.
- myBMP Certification: Occurring on cotton properties, the certification focuses on farm level improvements to promote sustainable production through efficient water use, water storage and water quality as well as maintaining and enhancing soil structure and fertility.
- Hort360 Reef Certification: The certification attained for Bundaberg macadamia orchards promotes standards to protect sensitive marine environments such as the Great Barrier Reef from potential run-off, including sediment and fertiliser.
Governance
FY23 progress
- Implementation of Sustainability Policy considering environmental and social aspects.
- Updated Risk Management Policy to include climatic considerations.
Future actions
- Review and update of relevant policies as required.
Scope 1 and Scope 2 emissions
FY23 progress
- Quantified Scope 1 and Scope 2 emissions from assets for which RFF receives the operational proceeds.
- Improved internal knowledge of RFF emissions profile.
- Developed internal processes for primary data capture for ongoing emissions analysis.
Future actions
- Quantify appropriate Scope 1 and Scope 2 emissions to enable comparison.
- Utilise cattle supplement program and deep-rooted perennial pastures with legumes on appropriate grazing assets, which can decrease emissions intensity.
- Use of precision agricultural practices to optimise fertiliser application.
Emissions quantification
RFM quantified RFF’s FY23 Scope 1 and Scope 2 emissions in accordance with the Australian National Greenhouse Gas Inventory (NGGI) method.
As an agricultural real estate investment trust, most of RFF’s assets are subject to triple-net leases. RFM does not have operational control over these types of assets and the emissions are the responsibility of lessees. Therefore, the emissions quantified are for properties for which RFF receives the operating proceeds.1
As assets are usually operated by RFF during their initial development phase, the pool of operated assets are likely to change year-to-year. However, quantification enables RFM to better understand the emission profiles across invested agricultural sectors and better incorporate emission considerations into management decisions.
Quantification and potential reduction strategies were presented to RFM’s senior management team. Emissions were primarily generated by methane from cattle, and fuel and fertiliser from cropping. Activities which seek to address these emissions include:
- Herd management practices to improve livestock feed utilisation and breeding efficiency to improve weight gains and reduce methane emissions per kilogram produced.
- Establishment of deep-rooted perennial pastures with a mix of legumes which improves weight gains and reduces enteric fermentation emissions.
- Installation of solar energy where feasible.
- Precision agricultural management to promote informed decisions about land use and management, such as fertiliser application.
Image: Video equipped drone used to locate cattle as part of muster process, Cerberus, central Queensland, May 2023.
- Sectors and properties include: cattle (Yarra and Cerberus), cropping (Baamba Plains, Maryborough sugarcane properties) and macadamia orchards (Beerwah and Bauple).
Carbon project feasibility
FY23 progress
- Engaged with multiple lessees to carry out carbon sequestration project feasibility analysis, specifically, environmental plantings, human induced regeneration, and soil carbon.
- Submission of two carbon abatement project applications with the Clean Energy Regulator, which are now conditionally registered.
Future actions
- Continued review of carbon abatement opportunities.
Carbon projects
RFM continued to conduct due diligence, profiling the risks and opportunities across the available Australian carbon credit methodologies. We engaged with multiple lessees to carry out carbon sequestration project feasibility analysis for environmental plantings, human induced regeneration, and soil carbon.
Two applications were submitted with the Clean Energy Regulator (CER) for carbon abatement projects on cattle properties under the Human-Induced Regeneration Method. These projects are now conditionally registered. The projects will establish forest cover through assisted regeneration on land that has not had forest cover for at least the last ten years.
RFM will continue to assess projects with the potential to benefit RFF and/or it’s lessees.
Sustainability reporting
FY23 progress
- Reviewed evolving sustainability reporting standards.
Future actions
- Continue towards alignment with evolving sustainability reporting requirements.
Sustainability reporting update
This year, the International Sustainability Standards Board (ISSB) issued two sustainability reporting standards, IFRS S1 and IFRS S2, relating to sustainability disclosure. Locally, The Treasury of the Australian Government has carried out consultation on climate-related financial disclosure. Based on these consultation papers, climate-related disclosure is likely to become mandatory, with mandated reporting potentially commencing for the largest entities from 2024/25 onwards. At this stage, RFF is likely to be part of cohort 3 (2027/2028) for mandatory reporting.
As part of the FY22 Annual Report RFM presented how climate-related risks and opportunities were considered using the Taskforce on Climate related Financial Disclosure framework. During FY23, further progress towards aligning with sustainability reporting frameworks by establishing emissions and updating policies and procedures.
RFM will continue towards alignment with evolving sustainability reporting requirements.
Resourcing and oversight
FY23 progress
- Dedicated resource for sustainability analysis and reporting.
- Established sustainability as a responsibility within the leadership team.
Future actions
- Continue to improve internal processes to aid with ongoing reporting on sustainability topics.
Renewable energy
FY23 progress
- Converted nine bore pumps from diesel to solar energy.
Future actions
- Continue to explore renewable energy options where viable.
Health, safety, and wellbeing
FY23 progress
- Ongoing improvements to safety management system.
- Additional training.
- Improved Employee Assistance Program service.
Future actions
- Continue improvements to existing processes and standards.
Safety
The safety of RFM employees and contractors is a priority. RFM supports, promotes, and protects the health, safety and wellbeing of employees.
A culture of safety is fostered through our management system that is focused on precision and practicality. These principles are promoted through our online platform which includes policies, procedures, risk assessments, meetings, machinery inspections and other safety tasks.
Throughout the year the implementation of the online platform was significantly broadened. Improved approaches to safety are monitored on an ongoing basis and all incidents are reported monthly to the Board. Safety obligations are also included in RFF lessee agreements.
Staff at Riverton undertaking routine maintenance, central Queensland, September 2023.
Training
FY23 progress
- Implemented additional training, including:
Mental health
Indigenous cultural awareness
Anti-discrimination and human rights
Emissions reporting
Diversity, equity, and inclusion
Workplace, health and safety.
Future actions
- Implement additional training focusing on identified areas including health, safety and wellbeing.
Diversity, equity and inclusion
FY23 progress
- Formalised target of 40% female representation on the RFM Board by 2026.
- Improved recruitment processes to establish gender-balanced shortlists whenever possible.
Future actions
- Ongoing review of relevant processes.
Diversity, equity and inclusion
RFM values its employees and recognises them as one of its greatest assets. We are committed to maintaining gender balance throughout the organisation and ensuring equity across genders in respect of remuneration, benefits and equal work. We aim to attract people with diverse skills, experience and backgrounds, and create a fair and flexible working environment that promotes personal and professional growth.
RFM has committed to achieving 40% female participation on the RFM Board by 2026 and continues to aim for gender balanced shortlists in recruitment whenever possible. RFM's corporate team consists of 46% female representation and we continually strive to provide opportunities and improve the gender balance in our operational and corporate teams.
Image: RFM corporate staff, Canberra office, September 2023.
Engagement
FY23 progress
- Engaged with a number of organisations to build community partnerships.
Future actions
- Expansion of partnerships with identified organisations.
Community partnerships
RFM continues to engage and provide support to organisations connected to the agricultural industry, regional service providers, community groups, and organisations linked to our employees, including:
- Hartley Lifecare: supported accommodation for people with disabilities.
- Yoorana: Maryborough based womens domestic violence and resource service.
- Queensland Agricultural Workforce Network: Queensland Government program.
- Tahen Project: RFM project to mentor Cambodian farmers in the village of Tahen to develop a sustainable and diversified agricultural enterprise.
- AgCAREERSTART: program introducing young Australians to the agriculture industry.
Industry development
FY23 progress
- Engaged with Advance Rockhampton – Rockhampton Regional Council and Queensland Agricultural Workforce Network (QAWN) through in-kind donation.
Future actions
- Participate in the Ag Program providing opportunities for multiple positions in the program across horticulture, livestock and cropping.
Governance
FY23 progress
- Review of all policies and updates including:
– Corporate Governance Statement
– Risk Management Policy
– Code of Conduct
– Equal Employment Opportunity
– Diversity Policy
– Leave Policy. - Implementation of Sustainability Policy.
Future actions
- Review and update of all relevant policies as required.
- Implement two new policies to formalise our employment practices:
– Sexual Harassment Policy
– Reward and Recognition Policy.
Additional information
Responsible production and consumption projects
Responsible production and consumption projects
RFM recognises that the sustainability of natural resources is linked to responsible consumption and production. We seek to minimise environmental impacts by improving resource efficiency and reducing waste and pollution, aligning with our aim to produce more with less. The following are key examples of our initiatives in this area.
- Orchard monitoring program: The program is in its second year of operation and was expanded to include additional Permanent Samples Plots (PSP). The PSP provide data to improve precision agronomic management concerning nutrient efficiency and yield.
Image: Macadamia orchard monitoring program PSP including communications, vapour pressure deficit sensor, sap flow meter and soil moisture sensor at Riverton, central Queensland, September 2023.
- Progeny trial: In collaboration with The University of Queensland, the trial seeks to develop resource efficient macadamia cultivars capable of producing higher yields and high-quality nuts. Trees planted in Maryborough and Rockhampton in FY23
- Polyethylene pipe recycling: Included as part of the installation of an irrigation pipeline to supply water from the Fitzroy River to several water storages within the macadamia developments. The recycling program reduced waste from pipe welding. Believed to be a first of its kind, the project is estimated to recycle approximately 18 cubic metres of polyethylene plastic shavings which would otherwise have become landfill.
Image: Polyethylene waste recycling program during installation of the rising main pipeline, Rookwood Farms, central Queensland, July 2023.
- myBMP Certification: Occurring on cotton properties, the certification focuses on farm level improvements to promote sustainable production through efficient water use, water storage and water quality as well as maintaining and enhancing soil structure and fertility.
- Hort360 Reef Certification: The certification attained for Bundaberg macadamia orchards promotes standards to protect sensitive marine environments such as the Great Barrier Reef from potential run-off, including sediment and fertiliser.
Emissions quantification
Emissions quantification
RFM quantified RFF’s FY23 Scope 1 and Scope 2 emissions in accordance with the Australian National Greenhouse Gas Inventory (NGGI) method.
As an agricultural real estate investment trust, most of RFF’s assets are subject to triple-net leases. RFM does not have operational control over these types of assets and the emissions are the responsibility of lessees. Therefore, the emissions quantified are for properties for which RFF receives the operating proceeds.1
As assets are usually operated by RFF during their initial development phase, the pool of operated assets are likely to change year-to-year. However, quantification enables RFM to better understand the emission profiles across invested agricultural sectors and better incorporate emission considerations into management decisions.
Quantification and potential reduction strategies were presented to RFM’s senior management team. Emissions were primarily generated by methane from cattle, and fuel and fertiliser from cropping. Activities which seek to address these emissions include:
- Herd management practices to improve livestock feed utilisation and breeding efficiency to improve weight gains and reduce methane emissions per kilogram produced.
- Establishment of deep-rooted perennial pastures with a mix of legumes which improves weight gains and reduces enteric fermentation emissions.
- Installation of solar energy where feasible.
- Precision agricultural management to promote informed decisions about land use and management, such as fertiliser application.
Image: Video equipped drone used to locate cattle as part of muster process, Cerberus, central Queensland, May 2023.
- Sectors and properties include: cattle (Yarra and Cerberus), cropping (Baamba Plains, Maryborough sugarcane properties) and macadamia orchards (Beerwah and Bauple).
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Carbon projects
Carbon projects
RFM continued to conduct due diligence, profiling the risks and opportunities across the available Australian carbon credit methodologies. We engaged with multiple lessees to carry out carbon sequestration project feasibility analysis for environmental plantings, human induced regeneration, and soil carbon.
Two applications were submitted with the Clean Energy Regulator (CER) for carbon abatement projects on cattle properties under the Human-Induced Regeneration Method. These projects are now conditionally registered. The projects will establish forest cover through assisted regeneration on land that has not had forest cover for at least the last ten years.
RFM will continue to assess projects with the potential to benefit RFF and/or it’s lessees.
Sustainability reporting update
Sustainability reporting update
This year, the International Sustainability Standards Board (ISSB) issued two sustainability reporting standards, IFRS S1 and IFRS S2, relating to sustainability disclosure. Locally, The Treasury of the Australian Government has carried out consultation on climate-related financial disclosure. Based on these consultation papers, climate-related disclosure is likely to become mandatory, with mandated reporting potentially commencing for the largest entities from 2024/25 onwards. At this stage, RFF is likely to be part of cohort 3 (2027/2028) for mandatory reporting.
As part of the FY22 Annual Report RFM presented how climate-related risks and opportunities were considered using the Taskforce on Climate related Financial Disclosure framework. During FY23, further progress towards aligning with sustainability reporting frameworks by establishing emissions and updating policies and procedures.
RFM will continue towards alignment with evolving sustainability reporting requirements.
Safety
Safety
The safety of RFM employees and contractors is a priority. RFM supports, promotes, and protects the health, safety and wellbeing of employees.
A culture of safety is fostered through our management system that is focused on precision and practicality. These principles are promoted through our online platform which includes policies, procedures, risk assessments, meetings, machinery inspections and other safety tasks.
Throughout the year the implementation of the online platform was significantly broadened. Improved approaches to safety are monitored on an ongoing basis and all incidents are reported monthly to the Board. Safety obligations are also included in RFF lessee agreements.
Staff at Riverton undertaking routine maintenance, central Queensland, September 2023.
Diversity, equity and inclusion
Diversity, equity and inclusion
RFM values its employees and recognises them as one of its greatest assets. We are committed to maintaining gender balance throughout the organisation and ensuring equity across genders in respect of remuneration, benefits and equal work. We aim to attract people with diverse skills, experience and backgrounds, and create a fair and flexible working environment that promotes personal and professional growth.
RFM has committed to achieving 40% female participation on the RFM Board by 2026 and continues to aim for gender balanced shortlists in recruitment whenever possible. RFM's corporate team consists of 46% female representation and we continually strive to provide opportunities and improve the gender balance in our operational and corporate teams.
Image: RFM corporate staff, Canberra office, September 2023.
Community partnerships
Community partnerships
RFM continues to engage and provide support to organisations connected to the agricultural industry, regional service providers, community groups, and organisations linked to our employees, including:
- Hartley Lifecare: supported accommodation for people with disabilities.
- Yoorana: Maryborough based womens domestic violence and resource service.
- Queensland Agricultural Workforce Network: Queensland Government program.
- Tahen Project: RFM project to mentor Cambodian farmers in the village of Tahen to develop a sustainable and diversified agricultural enterprise.
- AgCAREERSTART: program introducing young Australians to the agriculture industry.
Rural Funds Group (ASX: RFF)
RFF is Australia’s first ASX listed diversified agricultural Real Estate Investment Trust (REIT) offering ownership in Australian farmland and income distributions, primarily from leasing agricultural assets.