Sustainability Report

only11 November 2021

The Manager, Companies Australian Securities Exchange

C mpanies Announcement Centre 20 Bridge Street

SYDNEY NSW 2000

useDear Sir/Madam,

2021 Sustainability Report

Attached is GrainCorp Limited's 2021 Sustainability Report.

personalThe Sustainability Report has been prepared in accordance with the guidelines of the internationally recognised Global Reporting Initiative G4 framework for a 'core' sustainability report.

This announcement is authorised for market release by the GrainCorp Limited Board.

Yours faithfully,

GrainCorp Limited

Annerly Squires

Company Secretary

For

GrainCorp Limited

Level 28, 175 Liverpool Street

Sydney NSW 2000 Australia

T [phone]

F [phone]

60 057 186 035

graincorp.com.au

Sustainability Report 2021

r personal use only

Growing together

INTRODUCTION	SUSTAINABILITY	ENVIRONMENT	ETHICAL CONDUCT	SAFETY, PEOPLE	SUPPORTING	02
AT GRAINCORP	AND TRANSPARENCY	AND COMMUNITY	INFORMATION

GrainCorp is a leading diversified Australian agribusiness, with an integrated operating model connecting

onlygrowers to domestic and international consumers in over 50 countries.

Our purpose is to proudly connect with customers and rural communities to deliver value through innovation and expertise.

use

Introduction

03 Message from the Chairman

1. Message from the Managing Director and CEO
2. About GrainCorp
3. How we operate

Sustainability at GrainCorp

1. GrainCorp's sustainability commitment
2. Engaging with our stakeholders
3. Material topics 2021
4. Sustainability roadmap
5. Sustainability governance
6. Continued resilience throughout COVID-19

Environment

1. Water, waste, energy and emissions

1. Climate change and adaption response

Ethical Conduct and Transparency

25 Responsible sourcing

30 Food safety and consumer confidence

Safety, People and Community

36 Workforce health and safety

40 People, Diversity and Inclusion and Employee Engagement

46 Community

Supporting information

1. Industry Associations
2. KPMG Assurance Statement
3. Index

58 Corporate Directory

	Reporting Suite FY21
			Annual Report							Corporate Governance
			2021							Statement 2021
							Sustainability Report
							2021
						Growing together
	Annual		Sustainability			Corporate Governance
	R port		Report			Statement
rpersonal

These reports are available on our website at graincorp.com.au

About this report

GrainCorp publishes an annual Sustainability Report to provide an account of our performance in the areas of safety and health, environment, people, community and governance.

This Sustainability Report has been prepared in accordance with the guidelines of the internationally recognised Global Reporting Initiative G4 framework for a 'core' sustainability report.

Sustainability Report cover image credit:

Tom Koerstz, Area Manager, Dubbo North.

Acknowledgement of Country

GrainCorp acknowledges the Traditional Owners and their custodianship of the lands across Australia and pays respect to Elders past, present and emerging. We recognise their rich cultures and continued connection to land, waters and the community.

INTRODUCTION	SUSTAINABILITY	ENVIRONMENT	ETHICAL CONDUCT	SAFETY, PEOPLE	SUPPORTING	03
AT GRAINCORP	AND TRANSPARENCY	AND COMMUNITY	INFORMATION

Message from the Chairman

onlyThis year, we have taken an entirely new approach to our Sustainability Report, capturing more of what we are already doing, identifying areas where more work is required and setting a clear path to complete that work.

useThe agriculture industry is at the forefront of the challenges and the opportunities created by sustainability and key Environment, Social and Governance (ESG) matters.

GrainCorp is a leading Australian agribusiness, with a value chain stretching from our growers on the east coast of Australia (ECA), through our valuable infra tructure network, to our processing and food production sites and

o r ports and export operations. Our activities encompass almost every aspect of sustainability and ESG and, as these areas continue to dominate political and policy discussions across the globe, we have an opportunity to seek and identify best practice in these areas and help lead our industry.

personalon the material ESG topics identified by our key stakeholders through our recent engagement process.

This year, we have taken an entirely new approach to our Sustainability Report, capturing more of what we are already doing, identifying areas where more work is required and setting a clear path to complete that work. The form of our Sustainability Report has also changed. As international ESG reporting standards and frameworks continue to evolve, it is vital

for GrainCorp to present its ESG reporting in a uniform and transparent

ma	er. The decision to report in accordance with the Global Reporting
Initiative (GRI) framework and to start to align with both the Task Force on
Climate-related Financial Disclosures (TCFD) framework and the United
Nati	ns Sustainable Development Goals (SDGs), is designed to create a
flexible reporting framework that will accommodate GrainCorp's diverse
bu iness portfolio, while at the same time delivering consistent, assessable
information to market and ESG analysts. Importantly, we are reporting

In completing this year's Sustainability Report, we have found much to c l brate at GrainCorp. Our commitment to safety remains paramount and this is evidenced by our response to the COVID-19 pandemic and the strength and resilience of our staff in maintaining operations without interruption and keeping our people safe.

r

Our Modern Slavery Statement was issued earlier in the year, and work is ongoing to expand and improve this commitment. As part of our targeted growth strategy, we have invested in key projects such as Hone (page 28) and FutureFeed (page 23), each of which are good examples of how sustainability and ESG are integral to our strategy.

One of the most exciting parts of this year's Sustainability Report is our Sustainability roadmap (page 11). As the starting point of our initial three-year rolling plan, we are committing to net zero carbon emissions by 2050. In FY22, we will develop a range of targets for our Scope 1, 2 and 3 emissions and, during FY23 we will review, and aim to improve upon, this net zero commitment.

In addition to climate change and emissions, the topic of responsible sourcing has been identified as highly material for GrainCorp and is an important part of the roadmap. Initially, our focus will be on GrainCorp ingredients and products, as we work with our suppliers to identify and set best practice standards. We will also continue to work with our customers to provide ingredient and product options that are both sustainable and commercially competitive.

I am pleased to present GrainCorp's Sustainability Report for FY21 and delighted by the enthusiasm of our management and operations teams to drive our sustainability efforts, to meet the challenges posed by ESG and to seize the opportunities.

I would like to thank you for continued support, and we look forward to sharing more with you as we deliver against the Sustainability roadmap.

Peter Richards

Chairman

The agriculture industry is at the forefront of the challenges and the opportunities created by sustainability and key Environment, Social and Governance (ESG) matters.

INTRODUCTION	SUSTAINABILITY	ENVIRONMENT	ETHICAL CONDUCT	SAFETY, PEOPLE	SUPPORTING	04
AT GRAINCORP	AND TRANSPARENCY	AND COMMUNITY	INFORMATION

Message from the Managing Director and CEO

onlyOur commitment to sustainability is an integral part of business and operations at GrainCorp.

GrainCorp has published a stand-alone Sustainability Report for

usealmost a decade, underscoring the importance of Environment, Social and Governance (ESG) matters within our business and the food and agriculture industry as a whole. At a global level, our industry must work to feed a growing population in a changing climate, with fewer resources. As a leading agribusiness and processing company, GrainCorp has a responsibility to be proactive in supporting this aim.

S stainability and ESG provide the foundation for our Company's Vision and Purpose and are integral to both strategy and culture at GrainCorp. This year marks a year of change in how we approach and communicate our ESG activities, to better respond to the expectations of our

personalstakeholders and the increasing demands of effective ESG management nd reporting.

As first step, we engaged directly with our stakeholders to understand their priorities in assessing the ESG impacts of GrainCorp's activities

a d identifying the potential ESG opportunities for our businesses. This e gagement process is ongoing and will be expanded in FY22 and FY23.

International ESG reporting standards and frameworks are continuing to ev lve. This year's Sustainability Report is presented in line with the Global Rep rting Initiative (GRI) framework. We have also committed to reporting in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) framework. Our initial work in this area is detailed on page 22.

At G ainCorp, we recognise the need to move quickly to adapt and respond to climate change. Today, we are committing to net zero carbon emissions by 2050. In the next 12 months, we will complete the work required to start r porting our Scope 3 emissions and set achievable, short-term emissions targets, on our way to net zero. While we have already responded well

to the impacts of climate change through key initiatives such the Crop

r

Production Contract (page 22) and FutureFeed (page 23), we recognise that a net zero value chain commitment requires us to work closely with our partners and suppliers. In FY22, we will strengthen our responsible sourcing practices, including conducting a review of key input policies and our supplier code of conduct.

This year's Sustainability Report highlights the imperative of a balanced and credible approach to ESG. Our rolling three-year plan is designed to ensure that we set ambitious and aspirational ESG goals and targets and that these are achieved through sustainability practices and initiatives that yield positive commercial outcomes. Our management team is accountable for the delivery of both short- and long- term goals and for ensuring that each is underpinned by a feasible, achievable action plan.

In presenting our Sustainability Report this year, I would also like to acknowledge our successes and achievements.

The COVID-19 pandemic has continued to challenge our people nationally and internationally, including during a large harvest year for Eastern Australia. Our learnings from last year, coupled with our continuous efforts to keep our people safe and our businesses operating, have enabled us to maintain continuity of service, whilst ensuring strict compliance with changing State and Federal Government legislation.

Our ability to rise to the challenge of COVID-19 speaks to our culture here at GrainCorp. This year saw our first employee survey since the demerger of the United Malt Business in 2020. I am proud to report that, of the 68 per cent of employees that completed the survey, 85 per cent felt satisfied working at GrainCorp. The results highlight the way our employees create an environment of teamwork and inclusiveness and the value of flexible working conditions.

As a Company so closely tied to the land, the way we interact with our regional communities is of paramount importance. This year, we launched

At GrainCorp, we recognise the need to move quickly to adapt and respond to climate change.

Today, we are committing to net zero carbon emissions by 2050.

the new GrainCorp Community Foundation and relaunched GrainCorp Silo Art. The launch of these programs followed months of consultation with our staff, our communities and the broader grains industry, to determine the best way for us to work and grow together, ensuring and optimising GrainCorp's contribution to the communities in which we live and work.

Robert Spurway

Managing Director and CEO