E.SUS.0016 - ESG scan for the Australian sheepmeat industry
This project will help the Australian sheepmeat industry stay competitive by aligning sustainability credentials with global buyer expectations, reducing compliance burden, and unlocking new market opportunities.
| Project start date: | 14 July 2025 |
| Project end date: | 25 August 2026 |
| Publication date: | 04 June 2026 |
| Project status: | In progress |
| Livestock species: | Sheep |
| Relevant regions: | National |
|
Download Report
|
|
Summary
This project was undertaken to help the Australian sheepmeat industry understand and respond to emerging ESG expectations that are increasingly influencing buyer procurement decisions in key export markets. The work focused on identifying which ESG topics are most likely to translate into material information requests, compliance burdens or competitiveness risks over the next 3-5 years, and where the largest gaps exist between market expectations and current Australian standards, assurance settings and data availability.
Objectives
The project sought to analyse emerging international ESG and sustainability reporting requirements across key sheepmeat export markets (e.g. EU, UK, US, China, Middle East, Japan, India), identifying near-term (3–5 years) compliance risks and research or policy priorities. Assess opportunities to strengthen trade relationships by aligning Australia’s sustainability credentials with market expectations. Review Australian domestic standards to identify gaps against global requirements and examine market research on how sustainability influences purchasing decisions in target markets to support continued market access and competitiveness.
Key findings
ESG engagement occurs through both government-to-government channels focused on trade rules and market access, and more prominently through business-to-business demands, where buyers require detailed sustainability data via questionnaires and third-party platforms. Although sustainability-linked import regulations remain limited, indirect pressure is increasing through mandatory reporting and global retailer standards, especially in EU and UK supply chains. Key challenges include inconsistent terminology, rising expectations for measurable evidence (e.g. climate, land use, traceability), and misalignment between domestic standards and buyer requirements. Growing focus on nature and human rights due diligence is also driving the need for improved supplier capabilities and clearer guidance.
Benefits to industry
The project provides industry with a clear, consolidated view of where ESG expectations are likely to affect competitiveness and market access, and where they are less material. By clarifying how buyer ESG requirements are transmitted and where domestic standards do and do not support responses, the findings help industry prioritise action, reduce duplication and avoid unnecessary compliance burden. The work also supports more consistent and credible communication of Australia’s sustainability credentials to key customers.
MLA action
MLA will use the project outcomes to inform future investment priorities, particularly in research, standards alignment and capability-building initiatives for industry. Insights will also be used to strengthen in-market engagement.
Future research
Clarify and consistently apply key sustainability terminology (e.g. ESG, reporting, disclosure) to reduce confusion, reputational risk and support credible claims. Strengthen MLA’s in-country capability to engage with business-led sustainability requirements and feed insights back to industry early. Build supplier capability to efficiently meet priority buyer and platform expectations, particularly on responsible business conduct and human-rights due diligence. Align domestic frameworks with commonly used buyer standards and develop a streamlined, buyer-ready evidence pack to reduce duplication and improve consistency.
More information
| Project manager: | Courtney Nelson |
| Contact email: | reports@mla.com.au |
