Sustainability claims for international markets

Australian Organic Limited (AOL)
Sustainability Claims for International Markets
24 February 2024

1
Australian Organic Limited (AOL) welcomes the opportunity to provide input on the Sustainability
Claims for International Markets consultation. We appreciate the recognition of the organic sector within the discussion paper and acknowledge the important work being undertaken to ensure robust and credible sustainability claims that align with evolving international market requirements.

Healthy soils are the foundation of sustainable agriculture, playing a critical role in carbon sequestration, water retention, and ecosystem resilience. Organic farming systems actively enhance soil fertility, support biodiversity, and minimise chemical inputs, ensuring long-term environmental sustainability. By maintaining natural ecosystems and reducing synthetic chemical use, organic agriculture contributes to regenerative land management and improved biodiversity outcomes, directly supporting international sustainability goals.

Quick Industry Snapshot

Australia’s agriculture is largely export-driven, with over 72% of all production going overseas1. The organic sector plays an increasing role in sustainable agriculture and has demonstrated strong domestic and export growth:

• Certified Organic Land: Australia has over 53 million hectares of certified organic farmland2,
representing approximately 12.4% of arable farmland nationwide and about 60% of the global
organic land mass.
• Market Size: The Australian organic industry contributes AUD $2.6 billion to the economy3,
constituting roughly less than 1% of the global organic industry’s AUD $360 billion value4.
• Employment & Export Growth: With 3,035 certified organic businesses, the sector supports
over 22,000 full-time equivalent workers, with 29% annualised export growth 5 . Key export
markets include the United States, Singapore, and Malaysia 6.

The Organic Sector’s Strength in Sustainability Claims

The organic industry is well-positioned to lead sustainability assurance due to its stringent data collection, certification requirements, and traceability systems. Organic certification ensures environmental sustainability, soil health, biodiversity, and responsible resource management.

1 Department of Agriculture Fisheries and Forestry 2023, Snapshot of Australian Agriculture 2023.
2 Australian Organic Limited 2023, Australian Organic Market Report 2023.
3 Australian Organic Limited 2023, Australian Organic Market Report 2023.
4 https://www.precedenceresearch.com/organic-food-market
5 Australian Organic Limited 2023, Australian Organic Market Report 2023.
6 Australian Organic Limited 2023, Australian Organic Market Report 2023.

2
Many organic certifiers use advanced auditing platforms, maintaining comprehensive evidence and verification processes that align with sustainability claims expectations in key export markets. This structured, verifiable approach provides a strong foundation for credible sustainability claims.

Strategic Investment to Strengthen Sustainability Claims

AOL has highlighted in its Pre-Budget Submission7 the need for strategic investment to enhance sustainability assurance frameworks. The National Organic Standard Bill 8 has generated significant momentum for the introduction of organic domestic regulation in Australia. It remains a key industry priority, with ongoing discussions aimed at addressing identified concerns and advancing regulatory clarity for organic certification and trade, ensuring consistency in organic claims both domestically and internationally.

Investment in data management, certification infrastructure, and industry-wide traceability would allow the organic sector to lead in sustainability verification, reduce compliance burdens, and ensure alignment with global sustainability claim requirements.

Challenges in Certification and the Need for Third-Party Verification

Certification plays a critical role in substantiating sustainability claims, particularly as international markets increasingly require third-party verification of sustainability credentials. However, a shortage of qualified auditors continues to create bottlenecks in sustainability claim verification across multiple sectors. Investment in auditor training and retention is essential to ensure that organic certification remains a strong, trusted model for sustainability claims.

Call to Action: Leveraging Organics in Sustainability Claims

For Australia to remain competitive in global markets, targeted investment in certification systems, sustainability data infrastructure, and organic-specific verification methods is required. The organic sector operates at a high level of traceability and compliance, making it primed to lead in sustainability assurance.

AOL urges the government to recognise the existing organic certification framework as a model for sustainability claims assurance, leveraging its data integrity, traceability, and verification mechanisms to support credible sustainability claims.

We appreciate the opportunity to contribute to this consultation and look forward to ongoing discussions on how the organic industry can support Australia’s leadership in sustainability claims.

7 https://treasury.gov.au/consultation/2024-25-pre-budget-submissions
8 https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=s1434
3
ABOUT AOL

Australian Organic Limited (AOL) is the peak industry body for the organic industry in Australia that strives to create a positive impact for humans, animals, and the environment, now and into the future. AOL is led by an experienced team committed to progressing the interests of the organic sector and delivering a world where organics is recognised for its environmental, social, and economic benefits.

4