1. Mapping of Australian System against Unilever SAC Unilever Sustainable Sourcing – Australian Dairy Industry 1. August 27th, 2012, Southbank www.sustainable-living.unilever.com

2. Why this benchmark? To acknowledge the high standard of Australian dairy farming systems To assure this high level for Unilever To reduce future work for Unilever suppliers, their farmers and Unilever To get Australian dairy farming systems in Annex I of the Unilever Scheme rules

3. How is this benchmark organised? On-going work since autumn 2011 Dairy Australia (Helen, Rob, Robin and Catherine) developed first version First version discussed in May 2012 in Brussels (Helen & Klaas Jan) Included benchmark in Unilever Benchmark spread sheet in July 2012 Further discussion on benchmark in August 2012 Workshop and farm visits will help to finalize the benchmark Final benchmark will be evaluated by SSDT team Unilever

4. Ultimate goal is to have Australian dairy farming systems accepted as sustainable by Unilever Certification In or out Do’s and don’ts Independent The seal is the story System costs Self Verification Measured improvement Action plans Unilever driven Tell your own stories Value chain investment *See latest version of scheme rules

5. Performance levels per question type Mandatory : where 100% compliance is required Must: 80% of the total must and min. 80% of each chapter is required Should: recommended but not required Metrics: Report on continues improvement Minimum standard to become recognised as sustainable

6. Performance per chapter 82 % 53 % 67 % 85 % 44 % 100 % 70 % 89 % 100 % 90 % Continuous improvement Agrochemicals and fuels Soils Biodiversity Waste Energy and Greenhouse gases Social and human capital Value chain and local economy Animal welfare Click on links for more Training Water Total performance is 78%

7. Overall conclusions Best farms will be compliant with Sustainable Agricultural Code already Risks are the 20% dairy farms that do not participate in industry programs Chapters that need improvement: –Soils, Waste, Energy and Biodiversity –Comparable to European results First sustainable supply should be possible in 2012 –Dependent on way forward (Industry Standard or individual self-assessment process)

8. Next steps Visit dairy farms to verify and finalize benchmark External verification of the benchmark process by SSDT Unilever –Leading to partly or fully recognition of Australian dairy farming systems Develop improvement plan with focus on metrics and non-compliant chapters Analyse and manage sustainability risks not covered by the SAC Support Dairy Australia with developing the Sustainability Plan