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Message from Group CEO

Welcome to Metcash’s ESG Report for 2025, which marks the completion of our three-year roadmap to reporting in accordance with the Global Reporting Initiative (GRI). This milestone reflects our desire to provide stakeholders with comprehensive and standardised disclosures of our approach to material environmental, social and governance topics.

I am pleased to share with you our continued progress and achievements towards creating a sustainable future for all our stakeholders. We are on track to deliver our 2030 emissions target, with a 3.3%¹ reduction in Scope 1 and 2 greenhouse gas emissions compared to the prior year. This progress supports our pathway towards a 42% reduction by 2030, and net-zero Scope 1 and 2 emissions by 2040. This year we opened our 5-star Green Star rated facility in Truganina, Victoria, Australia’s largest single-story warehouse. This all-electric facility, supported by a 2.7MW rooftop solar system and powered by 100% renewable electricity, is another major step in our pathway to lower-carbon operations. Our solar program achieved its largest expansion to date in FY25, bringing our total installed capacity to 8,289 kWp.

Our focus on waste reduction and circular economy principles continues to deliver strong results. Using business as usual figures, we achieved a 73% diversion rate from landfill across our major distribution centres² keeping us on track to meet our 80% target by 2028. Through our partnership with End Food Waste Australia, we have made significant strides in food waste awareness, while our Food Rescue Program delivered over 2.3 million meals this year — our largest contribution to date.

Attracting, engaging and motivating great people who deliver extraordinary results, individually and in teams, is vital to our success and I am proud of our continued progress in building an inclusive and thriving workplace. We maintained our strong safety performance with a 4% reduction in our Total Recordable Injury Frequency Rate (TRIFR) to 13.8. Over 450 frontline and senior leaders completed our ‘Leading Health and Safety at Metcash’ program, reinforcing our culture of safety accountability. Our commitment to diversity, equity and inclusion is reflected in our 43% female representation for Non-Executive Directors and our gender-neutral pay gap across the organisation as recognised by the Workplace Gender Equality Agency (WGEA).

This year our teams made design improvements to packaging, including removing unnecessary outer cartons, reducing plastic packaging, migrating to high recycled cardboard content and replacing expanded polystyrene with cardboard alternatives. We also improved communication with consumers about recyclability by increasing the use of the Australasian Recycling Label across the packaging of our private label products. These achievements earned Metcash an ‘Advanced’ rating from the Australian Packaging Covenant Organisation.

We are on track to deliver our responsible sourcing commitments by the end of 2025, across over 900 private label products, with significant progress in ethical sourcing standards and supply chain transparency. The launch of our MetPlanet Sustainability Hub strengthened supplier engagement and collaboration, providing resources and tools to support our partners with our joint sustainability objectives.

Our commitment to supporting thriving local communities continues to drive meaningful impact. Through the IGA Community Chest program, we contributed over $2.5 million to approximately 1,400 local and national communities and charities. Since 2010, this program has donated over $40 million, making a tangible difference across Australia. Our partnership with Greening Australia saw approximately 105,000 new trees funded through our ‘Buy One, Get One Tree’ program, contributing to climate-resilient, biodiverse environments.

Innovation in product stewardship has been demonstrated through our leadership in coffee pod recycling, where we became the first participant in Australia’s grocery market to partner with Planet Ark on the PODCycle collection system. Our participating IGA stores successfully recycled over 30,000 used coffee pods this year.

Looking ahead, we are preparing for implementation of the new Australian Accounting Standards Board S2 climate-related disclosure requirements. From 2026, we will publish two complementary reports: a climate-led Sustainability Report addressing the requirements under the AASB S2, disclosed alongside our financial statements, and our comprehensive GRI-aligned ESG Report in August. This dual approach will ensure we meet regulatory requirements while maintaining our commitment to holistic GRI-led ESG reporting that serves the diverse needs of our stakeholders.

I am optimistic about the opportunities ahead as we continue to embed sustainability into our core business operations and support our independent retailers in their own sustainability journeys. Together, we are building a more sustainable future for our communities, our planet and future generations.

I trust you find this report informative and thank you for your ongoing engagement with our sustainability efforts.

 

Doug Jones, Chief Executive Officer
Download 2025 Report
Download Appendix 1 - GRI Index