Letter from the Chair – October 2025

The magazine of the Australian Institute of Company Directors recently carried an article headlined ‘Is ESG dead?’ (ESG stands for Environmental, Social and Governance, a framework used by companies to report on their ethical credentials).  The article talked about recent global geopolitical shifts favouring individual rights over collective action, which has led some commentators to suggest that ESG is finished.

We saw, for example, the Net-Zero Banking Alliance (NZBA) fold earlier this month. The NZBA was an international grouping of 150 banks that had undertaken to align their investment portfolios with a target of net zero emissions by 2025.

The author of the article argued that current approaches to ESG are indeed defunct. He says that what is emerging will not be just a compliance obligation or a means to spin a company’s ethical credentials. ESG will instead be a genuine ‘anti-fragility strategy’, unlocking long-term value and resilience for companies as they address genuine long-term challenges and opportunities.

I think this is a good description of the Sheep Sustainability Framework. The Framework allows us to talk openly to our stakeholders (customers, government, Non-governmental organisations, etc) about our industry, and I don’t see any abatement in the demand for reassurance that Australian lamb and wool are produced in a responsible manner. The Framework is just as valuable to those working within the industry to identify where we need to improve to remain prosperous in the long term.

Our fourth annual report has just been released. I encourage you to read it, and to think about what actions the industry needs to take in response.