Supplier Responsible
Sourcing CodeLion Pty Ltd
ABN 50 128 004 268

Table of Contents
1. INTRODUCTION

4

1.1
1.2
1.3
1.4
1.5

6
6
6
7
7

PURPOSE OF THIS CODESCOPE
TRANSPARENCY AND COMPLIANCE
SUPPLIER ASSESSMENT, MONITORING AND VERIFICATIONANNUAL REPORTING

2. LEGAL AND CONTRACT COMPLIANCE

8

3. BUSINESS INTEGRITY

8

4. HUMAN RIGHTS AND LABOUR STANDARDS

8

4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9

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9
9
9
10
10
11
11
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EMPLOYMENT IS FREELY CHOSEN
FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING ARE RESPECTED
CHILD LABOUR SHALL NOT BE USEDWORKING CONDITIONS ARE SAFE, HEALTHY AND HYGIENICFAIR WAGES ARE PAID
WORKING HOURS ARE NOT EXCESSIVE
WORKERS ARE TREATED FAIRLY AND WITH RESPECT
REGULAR EMPLOYMENT IS PROVIDEDENGAGING OVERSEAS WORKERS IN AUSTRALIA AND NEW ZEALAND

5. PROTECTION OF THE ENVIRONMENT

13

5.1 ENVIRONMENTAL PERMITS
5.2 ENVIRONMENTAL MANAGEMENT SYSTEMS

13
13

6. MATERIAL SPECIFIC REQUIREMENTS FOR SUSTAINABLE SOURCING

13

6.1
6.2
6.3
6.4
6.5
6.6
6.7

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13
14
14
14
14
14

ANIMAL WELFARE
SUGAR
COFFEECOCOA
PALM OIL AND DERIVATIVES
SOY
PACKAGING

7. GLOSSARY OF TERMS AND DEFINITIONS15

APPENDIX 1 - INTERNATIONAL LABOUR STANDARDS
2

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CEO’s Foreword
At Lion we define our core purpose – our central objective – in terms of the value we deliver for society.
We exist to champion sociability and help people to live well. This commitment extends to building atransparent and ethical supply chain.
As a leading beverage company with a portfolio that includes many of our region’s favourite beer andwine brands as well as other adult beverages, we believe the scale of our operations provides both an
obligation and an opportunity to help drive positive change.
We aim to do this by acting with integrity and upholding business ethics – including having strict policies
on anti-bribery and corruption, conflicts of interest and protecting privacy, implementing sustainablesourcing practices and upholding the human rights of our own people, as well as those impacted by our
extended value chains.
Our consumers expect transparency and want to know where Lion products come from and how they
are made. They put their trust in our brands and expect us to do the right thing. We respect this trust
and take our responsibility to honour it seriously.
But we can’t achieve this alone.
We rely on thousands of suppliers providing us with raw materials such as hops and barley, as well as
packaging and other goods and services to keep our business operating all year round.
This Responsible Sourcing Code outlines Lion’s clear expectations of all our suppliers when it comes tosustainable sourcing practices spanning human rights, the environment and business ethics. We
recognise this area is continually evolving and this Code will be regularly updated to ensure we aredelivering on the expectations of our customers, consumers and the community.
I thank you for your ongoing partnership and commitment to continuous improvement. Together, I
believe we can make a positive and enduring difference to our communities.
If you have any questions about this Code, please don’t hesitate to contact your Lion procurement
representative.

Stuart Irvine
CEO, Lion
Date: 9 September 20203

1.

Introduction

For Lion, sustainability is about doing the right thing for the long term. For the Long Term is our vision
for a better future. A future where everyone enjoys the benefits of sociability and living well, and where
our people, customers, suppliers and all the communities we touch thrive and prosper. And it’s thisvision that underpins our sustainability strategy with a clear focus on wellbeing, community and theenvironment.
The pillars of Lion’s environmental sustainability strategy are:
1. Take action on climate change
2. Adopt a circular economy
3. Promote responsible sourcing
These priorities were selected through our materiality assessment process and are considered to behighly material for the long term sustainability of our business.
Through responsible sourcing, Lion is committed to upholding human rights in our value chain. We willcontinue to work with our suppliers to promote decent working conditions in our supply chain and toensure there are no instances of forced and child labour and modern slavery in the supply chain within
and beyond our first tier suppliers.
Our Procurement Policy and Supplier Responsible Sourcing Code embrace the International Bill of
Human Rights 1, the International Labour Organisation’s (ILO) Declaration on Fundamental Principles andRights at Work 2, the UN Guiding Principles on Business and Human Rights 3 and enact within our value
chains the UN Global Compact (UNGC) core values of human rights, labour standards, the environment
as well as anti-corruption and its 10 principles.

1 The International Bill of Human Rights consists of the Universal Declaration of Human Rights, the International Covenant on

Civil and Political Rights and the International Covenants on Economic, Social and Cultural Rights. It is widely regarded as thefundamental human rights framework in the international community.
2 The Declaration on Fundamental Principles and Rights at Work refers to freedom of association and the effective recognitionof the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the effective abolition of childlabour and the elimination of discrimination in respect of employment and occupation.
3 The United Nations Guiding Principles on Business and Human Rights, endorsed by the United Nations Human Rights Council
in 2011, are the authoritative global standard for States and business to prevent and address the risk of adverse impact onhuman rights linked to business activity.

4

Lion & Sustainable Development Goals
Measures relevant to our Suppliers
Strategy Priority: Take Action on Climate Change•

By 2030, reduce scope 3 4 carbon emissions by 30% from 2015 level

Strategy Priority: Adopt a Circular Economy•••

By 2025, all consumer packaging material will be 100% recyclable
By 2025, increase use of recycled content in packaging material to 50%
Continue light weighting packaging where appropriate withoutcompromising product safety, integrity and shelf-life

Strategy Priority: Promote Responsible Sourcing
•
•
•
•
•

By 2020, ensure our sourcing of paper and packaging does not contribute to
global deforestation
By 2020, all our first tier suppliers to have completed our responsible
sourcing risk assessment
Implement supplier monitoring program to support the implementation of
the Code
Increase supply chain traceability and transparency, disclosure of risks andcompliance
Combat modern slavery within our supply chain

To view Lion’s complete sustainability strategy and mapping to the full suite of SDGs visit
https://sustainability.lionco.com/our-strategy/

4 Scope 3 emissions are indirect emissions other than scope 2. These are emissions beyond Lion’s operational control such as extraction andproduction of purchased materials, agriculture, transport related activities, waste disposal, etc.

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1.1

Purpose of this CodeThe purpose of this Code is to support the implementation of Lion’s Procurement Policy, which captures
Lion’s commitment to responsible sourcing through three core principles:
1. Promoting human rights and ethical sourcing
2. Promoting sustainable sourcing
3. Building strong commercial outcomes and productive partnerships

1.2

Scope

The requirements in this Code (except Section 6 - Material Specific Requirements for Sustainable
Sourcing) apply to all:••co-manufacturers; andsuppliers who supply Lion Group and any of its majority owned subsidiaries:‐ inputs and ingredients used in production of any of Lion’s consumer products; and‐ not for re-sale goods and services that are not used in making Lion brand products such as
consumables, furniture, computers, plant and equipment, machinery and so on.

Material specific requirements only apply to the suppliers of materials detailed in Section 6.
This Code applies to all first tier suppliers (including brokers and agents) and their suppliers in all
geographic locations unless otherwise specified. First tier suppliers are those with a direct supply
relationship, contract or purchase order with Lion or one of its majority owned subsidiaries.
This Code may also apply to suppliers who supply to entities where Lion Group has a minority
shareholding and where:• the entity’s product is marketed under the Lion brand; and/or• the commodity or industry supply chain is, or potentially is, medium or high risk with respect tohuman rights or the environment.
Materials used in products that are made under licence for another Brand Owner are excluded from thescope where the Brand Owners’ specifications differ from Lion’s.
Lion expects this Code to be fully adopted by our suppliers by 30 June 2020.

1.3

Transparency and Compliance

Suppliers and their suppliers must respect the rights of workers in accordance with relevant nationallaws, acknowledge the International Labour Organisation’s conventions 5 and comply with Lion’s
Responsible Sourcing Code (this Code). Our aim is to continually increase the transparency of our

5 ILO conventions - International labour standards are legal instruments drawn up by the ILO's constituents (governments,

employers and workers) and setting out basic principles and rights at work. They are either conventions, which are legallybinding international treaties that may be ratified by member states, or recommendations, which serve as non-binding
guidelines.

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upstream value chain and give our customers confidence that their trusted brands are being sourced
responsibly and from sustainable sources.
We recognise that not all our suppliers are at the same level of compliance with the requirements of thisCode. However, we expect that all our suppliers will develop clear plans to achieve compliance and beable to demonstrate continuous improvement and progress.

1.4

Supplier Assessment, Monitoring and Verification

1.4.1

Supplier Assessment
To assess the level of risk across its suppliers, Lion requires high priority suppliers to complete
Sedex Self-assessment questionnaires (SAQ) for all their sites that supply product or service to
Lion. Brokers and agents must ensure their suppliers complete the Sedex SAQ for all facilities
that Lion is supplied from.
High priority suppliers and brokers are determined on the type of transactions, country oforigin and sectorial risk rating. Lion will use the suppliers’ self-assessment combined withcountry and sectoral risk rating to determine the level and frequency of its supplier monitoringprocess.

1.4.2

Monitoring and Verification
Lion expects all suppliers to have systems in place to actively monitor and record theircompliance with the laws and standards as outlined in this Code. When requested by Lion,
suppliers must submit a copy of their company compliance systems documentation, as
evidence of their compliance with the laws and this Code, within the stipulated timeframe.
For materials where Lion requires specific certification(s), suppliers are required to provide
evidence of the relevant certification(s).
Lion reserves the right to request or conduct independent audits to verify suppliers’
compliance with this Code. Independent audits must be conducted by SAAS accredited or BSCI
authorised auditing companies.
Suppliers must use all reasonable endeavours to assist Lion in conducting such an audit,
including, without limitation, allowing site access to Lion’s representatives and supplying all
relevant requested evidence of certifications and compliance.

1.5

Annual Reporting
All packaging and raw materials suppliers are required to submit annual reports providing
information on:•••

Quantity of materials supplied to Lion
Carbon emissions
Water use
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Packaging suppliers will also be required to provide:• Packaging unit weights• Packaging recycled content and recyclability
The annual reporting will be based on calendar year and Lion will provide a reporting template
for the required information.

2.

Legal and Contract Compliance
Lion expects its suppliers to enter into written contracts with Lion setting out the terms andconditions of our supply arrangements. The contracts may include provisions dealing withresponsible sourcing standards and practices, and may incorporate Lion’s Supplier Responsible
Sourcing Code (this Code) by reference.
Lion and its suppliers will be legally bound by commitments given under the contracts, including
any commitments in relation to responsible sourcing standards and practices.

3.

Business Integrity
Lion takes very seriously the ethical and lawful conduct of our people. Lion has establishedinternal policies setting out the standards of integrity that Lion expects of its employees whencarrying out business, e.g. policies in relation to anti-bribery and corruption, conflicts of interest
and privacy.
Similarly, Lion expects its suppliers to establish their own internal processes and policies settingout appropriate standards of business integrity.

4.

Human Rights and Labour Standards

4.1

Employment is freely chosen

4.1.1

The Supplier shall under no circumstances use, or in any other way benefit from,forced, bonded or prison labour in line with ILO Convention No. 29 on Forced
Labour and ILO Convention No. 105 on Abolition of Forced Labour. Where theSupplier is using prison labour under a legal framework, it must notify Lion.

4.1.2

The Supplier shall only use or employ workers with a legal right to work.

4.1.3

All workers, including employment agency staff must be validated by the Supplierfor their legal right to work by reviewing original documentation. The Suppliershall implement processes to enable adequate control over agencies with regards
to the above points and related legislation.
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4.1.4

Workers shall not be required to pay recruitment fees, lodge deposits or theiridentity papers (or passports) with their employer and shall be free to leave theiremployment after reasonable notice.

4.1.5

The Supplier shall not restrict its workers freedom of movement.

4.2

Freedom of association and the right to collective bargaining are respected

4.2.1

The Supplier should grant its employees the right to freedom of association andcollective bargaining in accordance with all applicable laws and regulations. Where
the right to freedom of association and collective bargaining is restricted underlaw, the Supplier should facilitate, and not hinder, the development of parallelmeans for independent and free association and bargaining.

4.2.2

The Supplier shall ensure workers representatives are not discriminated against
and have access to carry out their representative functions in the workplace.

4.3

Child labour shall not be used

4.3.1

The use of child labour is strictly prohibited in line with ILO Convention 138 on the
Minimum Age, and Convention 182 on the Elimination of the Worst Forms of Child
Labour. If children are found to be working directly or indirectly for the Supplier,the Supplier shall seek a sensitive and satisfactory solution that puts the bestinterest of the child first.

4.3.2

The Supplier shall comply with the national minimum age for employment or theage of completion of compulsory education and shall not employ any person under
the age of 15, whichever of these is higher. However, if local minimum age law is
set at 14 years of age in accordance with developing country exceptions under ILO
Convention 138, this lower age may apply.

4.3.3

Young workers under 18 years of age must not be employed to work in conditions
which harm their physical, mental and emotional development and wellbeing.

4.4

Working conditions are safe, healthy and hygienic

4.4.1

The Supplier shall provide a safe, healthy and hygienic working environment,bearing in mind the prevailing knowledge of the industry and of any specifichazards. Adequate steps shall be taken to prevent accidents and injury to healtharising out of, associated with, or occurring in the course of work, by minimising,so far as is reasonably practicable, the causes of hazards inherent in the working
environment.

4.4.2

The Supplier shall provide potable drinking water, clean toilet facilities, adequate
lighting and ventilation, personal protective equipment (PPE) and, if appropriate,sanitary facilities for food storage.

94.4.3The Supplier shall provide adequate safeguards against fire and shall ensure
strength, stability and safety of buildings and equipment (including dormitory
accommodation where provided).

4.4.4

The Supplier shall have a documented emergency plan including notification andevacuation procedures; fire detection and suppression equipment, adequate
number of clearly marked and easily accessible exits and appropriate first aid
supplies.

4.4.5

The Supplier shall identify hazardous materials, chemicals and substances, andensure their safe handling, movement, storage, recycling, reuse and disposal. All
the applicable laws and regulations related to hazardous materials, chemicals andsubstances shall be strictly followed.

4.4.6

Workers shall receive regular and recorded health and safety training including
emergency drills and evacuation, and such training shall be repeated for new orreassigned workers.

4.4.7

Dormitory buildings, where provided, shall be clean, safe, and meet the basic
needs of the workers. There shall be adequate space for each worker, adequate
heat and ventilation, access to potable water, clean toilets and showers, clean
facilities for food preparation and storage. Workers shall be able to enter and leave
the dormitory buildings freely at any hour.

4.4.8

The Supplier shall assign responsibility for health and safety to a senior
management representative.

4.5

Fair wages are paid

4.5.1

Wages and benefits paid for a standard working week shall meet or exceed,
national legal standards. In any event, wages should always be enough to meetbasic needs and to provide some discretionary income for workers and theirfamilies.

4.5.2

All workers shall be provided with written and understandable information about
their employment conditions in respect to wages before they enter employment
and about the particulars of their wages for the pay period concerned each timethat they are paid.

4.5.3

Deductions from wages as a disciplinary measure or any deductions from wages
not provided for by Law shall not occur without the expressed permission of theworker concerned. All disciplinary measures should be recorded.

4.6

Working hours are not excessive

4.6.1

Working hours comply with any Law and benchmark industry standards, whicheveraffords greater protection to ensure the health, safety and welfare of workers.
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4.6.2

Suppliers shall comply with all applicable laws for workers’ entitlements to breaks,
rest periods, parental leave, public and annual holidays.

4.6.3

In any event, workers shall not on a regular basis be required to work in excess of
60 hours (excluding overtime) per week unless permitted by national law or undera collective bargaining agreement.

4.6.4

Workers shall be provided with at least one day off for every 7 day period on
average.

4.6.5

Overtime shall be reasonable, shall not be excessive, shall not be demanded on aregular basis and shall always be compensated at a premium rate.

4.7

Workers are treated fairly and with respect

4.7.1

There is no unlawful discrimination in hiring, compensation, access to training,
promotion, termination or retirement based on race, caste, national origin,religion, age, disability, gender, marital status, sexual orientation, union
membership or political affiliation.

4.7.2

Physical abuse or discipline, the threat of physical abuse, sexual or otherharassment and verbal abuse or other forms of intimidation shall be prohibited.

4.8

Regular employment is provided

4.8.1

To every extent possible, work performed must be on the basis of recognised
employment relationships established through national law and practice.

4.8.2

Obligations to employees under labour or social security laws and regulations
arising from the regular employment relationship shall not be avoided through theuse of labour-only contracting, sub-contracting, or home-working arrangements, or
through apprenticeship schemes where there is no real intent to impart skills orprovide regular employment, nor shall any such obligations be avoided through theexcessive use of fixed-term contracts of employment.

4.8.3

Where workers are employed through a third party labour agency, the Suppliershall comply with ILO Convention 181 – Private Employment Agencies, 1997.

4.9

Engaging overseas workers in Australia and New ZealandIn addition to the human rights and labour standards under sections 4.1 to 4.8, the following
standards apply to Suppliers operating within Australia and/or New Zealand:

4.9.1

All people working in Australia or New Zealand are entitled to basic rights andprotections in the workplace. This includes overseas workers, which refers toworkers who are not Australian or New Zealand citizens or permanent residents,and may include ‘backpackers’, seasonal workers, or international students.
114.9.2In order to work in Australia or New Zealand, they must have a current visa withthe right to work in that country. It is a criminal offence to hire or refer illegal
workers. Fines apply to employers, labour hire companies, employment agencies
and anyone who allows illegal workers to work or refers them for work. Suppliers
are responsible for ensuring the workers engaged to provide goods and services to
Lion are legally allowed to work in the country they are employed regardless ofwhether the workers are employed directly by the Supplier or through a labour
hire intermediary.

4.9.3

Suppliers must validate the legal right to work in the country of employment forworkers on their facilities or providing a service to Lion at Lion’s sites. In Australia,
Suppliers can verify legal right to work using the free service Visa Entitlement
Verification Online (VEVO). In New Zealand, Suppliers can use the VisaView check.

4.9.4

Employment conditions of all workers (including overseas workers) must meet or
exceed the minimum employments rights set out by the relevant authorities:•

In Australia, the minimum requirements are known as the National Employment
Standards (NES) set by the Fair Work Act 2009 which apply to all employees covered by
the national workplace relations system, unless an applicable Modern Award conveys
more generous entitlements. For further information, refer to the “Fair Work
Information Statement” and fact sheets “Introduction to the National Employment
Standards” and “Foreign workers – Know your workplace rights!” on Fair Work
Australia’s website www.fairwork.gov.au.

•

In New Zealand, the Minimum Employment Rights and Responsibilities as set out at by
Employment New Zealand www.employment.govt.nz.

4.9.5

All overseas workers must receive an induction before starting work, in a language
they understand or with an interpreter present. The induction as a minimum must
include an explanation of workers’ basic rights, safety at work.

4.9.6

All overseas workers engaged to work in Australia must be provided a copy of the
Fair Work Information Statement and ‘My employment checklist’ available fromwww.fairwork.gov.au in a language they understand.

4.9.7

All overseas workers engaged to work in New Zealand must be provided a copy of
Employment New Zealand’s the Minimum Employment Rights and Responsibilities
in a language they understand.

4.9.8

Suppliers who engage overseas workers either employed directly or through a third
party labour hire company must:••have documented management systems and processes in place for monitoring compliancewith workplace laws with respect to overseas workers, including, without limitation, theminimum rights and conditions at work outlined above; andimplement processes to enable adequate oversight of any labour hire companies,
contractors or sub-contractors they use with regards to compliance with workplace laws,
correct rates of pay, hours of work and the minimum rights and conditions at work.
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5.

Protection of the Environment

5.1

Environmental Permits

5.1.1

The Supplier shall obtain and ensure currency of all relevant environmental
permits for its operations and facilities as required by national and local laws.

5.1.2

The Supplier shall comply with the requirements of all its environmental permits
and national and local environmental laws and regulations.

5.1.3

The Supplier’s facilities shall dispose of their production waste in accordance withlocal environmental laws and regulations.

5.2

Environmental Management Systems

5.2.1

The Supplier shall develop, document and implement an effective environmental
management system based on ISO 14001:2015 or a similar internationallyrecognised standard for its facilities that supply Lion.

5.2.2

The environmental management system must identify and document key
environmental impacts and implement controls to eliminate or minimise impact on
the environment, as a minimum, with respect to:
•
•
•
•
•

6.

waste reduction, reuse, recycling and disposal;
hazardous chemicals storage and management;
air and water emissions;energy use and carbon emissions; andwater use and wastewater discharge.

Material Specific Requirements for Sustainable Sourcing
As a minimum, all suppliers of agricultural commodities must demonstrate that they haveprocesses to monitor, identify, remedy and report any use of forced labour and child labour.
Lion reserves the right to request independent audits of suppliers’ processes.

6.1

Animal Welfare

6.1.1

Lion places significant importance on the welfare of the animals. Lion will only
source animal products from farms that have implemented animal welfare
standards and comply with relevant federal and state animal welfare legislation.

6.2

Sugar

6.2.1

All cane sugar supplied to Lion must be Bonsucro certified or Smartcane Best
Practice accredited, inclusive of all modules of the Smartcane Best Management
Practice program.
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6.2.2

Lion may accept alternative certification schemes, if deemed equivalent, at its
discretion.

6.3

Coffee6.3.1

As a minimum all coffee products (beans, crystals, powder and other forms) must
be 4C compliant. 4C Code of Conduct sets baseline criteria for sustainable coffee
production.

6.3.2

All coffee product suppliers including brokers must provide evidence of 4C
compliance and complete transparency of the upstream value chain from farm to
Lion. If a supplier does not have its own supply chain traceability program, Lion
may accept Fairtrade, Rainforest Alliance or UTZ certification.

6.4

Cocoa

6.4.1

All cocoa product (bean, powder and other forms) suppliers including brokers must
provide complete transparency of the upstream value chain from farm to Lion. If a
supplier does not have its own supply chain traceability program, Lion may accept
Fairtrade, Rainforest Alliance or UTZ certification.

6.5

Palm oil and derivatives

6.5.1

All palm oil and its derivatives supplied for use in Lion’s brands must be certified
through the physical supply chain certification models of the Roundtable for
Sustainable Palm Oil (RSPO). The acceptable RSPO certification models are identity
preserved, segregated or mass balance supply chain models.

6.6

Soy

6.6.1

Soy sourced from regions where soya production is likely to lead to deforestation
or loss of high value conservation areas must be either certified by the Roundtable
on Responsible Soy (RTRS) or the Sustainable Agricultural Network (SAN).

6.6.2

WWF identifies the following regions as high value conservation areas mostaffected by the expansion of soy production:
•
•
•
•

6.7

The Amazon;
Cerrado in Brazil;
Chaco region straddling Argentia, Bolivia and Paraguay; andAtlantic Forest on the east coast of South America.

Packaging
The resources we use in making our products are finite and we acknowledge our responsibility
to reduce waste and use resources more efficiently. Our consumers are increasingly conscious
14

of the environmental impact of product packaging and we recognise that the current economic
model of ‘take, make, dispose’ is not sustainable in the long term.
Lion is adopting the principles of a circular economy, reducing waste and reliance on natural
resources, improving packaging design and reducing costs. This means designing products andprocesses so that resources can be used in a ‘closed loop’ system to reduce demand on natural
resources.
To promote the circular economy, Lion has set the following targets to achieve by 2025:•

Reduce unnecessary packaging and implement lightweight packaging where possible;•

100% of consumer packaging is recyclable; and•Consumer packaging contains 50% or greater recycled content.

6.7.1

Any primary packaging with recycled content must meet food safety requirements
and not adversely impact packaging functionality and shelf-life.

6.7.2

All paper and board products must either have at least 50% recycled content orprovide a time bound plan to achieve at least 50% recycled content within the termof the supply contract.

6.7.3

Virgin content in paper and board must be certified under the Forest StewardshipCouncil (FSC) certification or Programme for Endorsement of Forest Certification(PEFC).

6.7.4

All plastics (rigid and flexible), should include recycled content where possible orprovide a time bound plan to introduce recycled content within the term of the
supply contract.

6.7.5

All glass and aluminium packaging material must have at least 50% recycledcontent or a time bound plan to achieve 50% recycled content within the term of
the supply contract.

7.

Glossary of Terms and Definitions

Terms
Lion or Lion GroupUN Global Compact

Definitions
Lion Pty Ltd and its related bodies corporate (as defined in the
Corporations Act 2001 (Cwlth)).
The UN Global Compact (UNGC) is a voluntary initiative based on CEO
commitments universal sustainability principles and align strategies andoperations with universal principles of human rights, labour,
environment and anti-corruption.
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UN Guiding principles on
Business and Human
RightsThe UN Guiding principles on Business and Human Rights are a set of
guidelines for States and companies to prevent, address and remedy
human rights abuses committed in business operations. The guidelines
were endorsed by the UN Human Rights Council in June 2011.
Sustainable Development The UN Sustainable Development Goals (SDGs) are a set of 17 global
Goals (SDGs)
goals and a universal call to action to end poverty, protect the planet andensure prosperity.
Majority owned
A company whose shares are 50% or more owned by a member of thesubsidiary
Lion Group.
First tier supplierFirst tier suppliers are those with contractual relationship with Lion or
one of its majority owned subsidiaries.
Upstream value chain
For Lion upstream value chain includes all activities upstream of ourmanufacturing sites including production and supply of raw materials,
any processing of raw materials before it is supplied to us as well asactivities such as storage, transport and shipping.
Sedex
The Supplier Ethical Data Exchange (Sedex) is an online data sharing
platform enabling buyers, suppliers and auditors to store, share andreport on social, ethical and environmental policies, practices andperformance.
SAQ
Self-assessment questionnaire. Sedex has a set of questions tailored
to industry sectors that suppliers complete and share with theircustomers to enable customers to assess suppliers based on their selfassessment.
SAAS accredited
Auditing companies accredited by the Social Accountability
Accreditation Services (SAAS) to conduct SA8000 audits andcertificates of compliance to the SA8000 Standard.
BSCI authorised
Audit companies authorized by the Business Social Compliance
Initiative (BSCI) to conduct BSCI audits.
Forced labour
Forced labour refers to any form of indentured servitude such as theuse of physical punishment, confinement, threats of violence as amethod of discipline or control such as retaining employees’
identification, passports, work permits or deposits as a condition of
employment. Where the Supplier is using migrant or prison labourers
under a legal framework, Lion Pty Ltd must be made aware to review
appropriate documentation maintained by the Supplier.
ILO
The International Labour Organisation (ILO) is a United Nations agency
dealing with labour issues, setting international labour standards,
developing policies programs to promote decent work opportunities
for all. The ILO has 187 member states (including Australia and New
Zealand).
Recruitment fees
A set fee or a percentage of income demanded from workers by alabour recruitment agent for job placement.
Child labour refers to work that:Child labour• is mentally, physically, or morally harmful to children;• can negatively affect their mental, physical, or social
development, and• interferes with their schooling:o by depriving them of the opportunity to attend school;16

by obliging them to leave school prematurely; orby requiring them to attempt to combine school attendancewith excessively long and heavy work.
An Environmental Management System (EMS) is a set of processes
and practices that enable an organisation to reduce its environmental
impacts and increase its operating efficiency. An effective EMS should
be based on ‘Plan-Do-Act-Check’ cycle and should include theorganisational structure, planning and resources for developing,
implementing and monitoring objectives for the protection of theenvironment.
ISO 14001 is the international standard that specifies requirements
for an effective environmental management system (EMS).
Bonsucro is an international not for-profit, multi-stakeholder
organization established in 2008 to promote sustainable sugar cane. Its
aim is to reduce 'the environmental and social impacts of sugarcane
production while recognising the need for economic viability. It does thisthrough setting sustainability standards and certifying sugar cane
products including ethanol, sugar and molasses.
The Smartcane BMP is an industry-led, voluntary program available to all
sugarcane growers across the state of Queensland. Smartcane BMP
assists growers to document, benchmark and continuously improve theiron-farm practices for productivity, profitability and stewardship.
Smartcane BMP has been benchmarked against the Bonsucro Production
Standard, demonstrating full alignment with the Standard’s indicators.
4C compliant refers to coffee that has successfully passed a verification
audit against the 4C baseline standard. The 4C baseline standard isdefined and maintained by the 4C Association and the 4C Code of
Conduct comprising social, environmental and economic principles forsustainable production, processing and trading practices of green coffee.
Fairtrade is a non-profit organisation aiming to help primary
producers in developing countries achieve better trading terms and topromote sustainable farming. Fairtrade focuses on certification ofcommodities, or products which are typically produced in developing
countries and exported to developed countries such as coffee, cocoa,
sugar, chocolate, fresh fruit, flowers and so on.
The Rainforest Alliance is an international non-profit organisation
working to conserve biodiversity and ensure sustainable livelihoods bytransforming land-use practices. A Rainforest Alliance Certified farm is
one that complies with 10 standards set in place by the Sustainable
Agriculture Network (SAN). These standards include ecosystemconservation, wildlife protection, and fair treatment and goodworking conditions for workers.
Rainforest Alliance and UTZ are merging. Both certification programs
will continue until the new certification program is established in
2019.
UTZ Certified is a certification program and a consumer label forsustainable farming of cocoa, coffee, tea and hazelnut.
ooEnvironmental
Management System

ISO 14001
Bonsucro

Smartcane BestManagement Practice(BMP)

4C compliant

Fairtrade

Rainforest Alliance

UTZ certified

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RSPO

RTRS

Sustainable Agriculture
Network (SAN)

Circular economy

Recyclable
Recycled content

FSC certified

PEFC certified

Rainforest Alliance and UTZ are merging. Both certification programs
will continue until the new certification program is established in
2019.
Roundtable for Sustainable Palm Oil (RSPO) is a non-profit
organisation that has developed a set of environmental and social
criteria which companies must comply with in order to produce
Certified Sustainable Palm Oil (CSPO).
Roundtable for Responsible Soy (RTRS) is an organization that
promotes responsible production, processing and trading of soy on a
global level. It has created the RTRS Standard for Responsible Soy
Production for certification of soy production that is sociallyequitable, economically feasible and environmentally sound.
The Sustainable Agriculture Network (SAN) is a coalition of non-profit
conservation organisations in America, Africa, Europe and Asia
promoting the environmental and social sustainability of agriculturalactivities through the development of standards for best practices,
certification and training for rural farmers.
A circular economy is an alternative to a traditional linear
economy (make, use, dispose) in which we keep resources in use foras long as possible, extract the maximum value from them whilst inuse, then recover and regenerate products and materials at the end ofeach service life.
Consumer packaging material that can be recycled through kerbside
recycling services available to most households in Australia and New
Zealand.
ISO 14021 defines recycled content as the proportion, by mass, ofrecycled material in a product or packaging. Only pre-consumer andpost-consumer materials shall be considered as recycled content. Preconsumer materials are those diverted from the waste stream during
a manufacturing process. Post-consumer materials are thosegenerated by households or by commercial, industrial andinstitutional facilities in their role as end-users of the product.
Forest Stewardship Council (FSC) is a global non-profit organisation
setting standards for sustainable forest management. FSC certificationand its label gives consumers confidence that the paper/board products
they buy has come from a forest and supply chain that is responsibly
managed.
Programme for the Endorsement of Forest Certification (PEFC) is a global
non-profit organisation promoting sustainable forest management
through independent third party certification.

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APPENDIX 1 - International Labour Standards
List of relevant International Labour Standards as defined by the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up recommendations:
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C87, Freedom of Association and Protection of the Right to Organise Convention, 1948
C98, Right to Organise and Collective Bargaining Convention, 1949
C29, Forced Labour Convention, 1930
C105, Abolition of Forced Labour Convention, 1957
C138, Minimum Age Convention, 1973
C090, Night Work of Young Persons (Industry) Convention (Revised), 1948
C182, Worst Forms of Child Labour Convention, 1999
C181, Private Employment Agencies, 1997
C100, Equal Remuneration Convention, 1951
C111, Discrimination (Employment and Occupation) Convention, 1958
The ILO call for Decent Work
C1, Hours of Work (Industry) Convention, 1919
C14, Weekly Rest (Industry) Convention, 1921
C95, Protection of Wages Convention, 1949
C131, Minimum Wage Fixing Convention, 1970
C135, Workers' Representatives Convention, 1971
C155, Occupational Safety and Health Convention, 1981
C161, Occupational Health Services Convention, 1985
R85, Protection of Wages Recommendation, 1949
R116, Reduction of Hours of Work Recommendation, 1962
R135, Minimum Wage Fixing Recommendation, 1970
R164, Occupational Safety and Health Recommendation, 1981
R184, Home Work Recommendation, 1996
R190, Worst Forms of Child Labour Convention Recommendation, 1999

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