Aldi Australia

OVERALL
Owned	GER
Rating

Budget supermarkets

The first Australian ALDI store opened in January 2001. Today they operate over 400 stores throughout Australia. ALDI stores do not offer free shopping bags to its customers.

Company Ownership

Aldi Stores Supermarkets Pty Ltd	AUS	website	email
Aldi Sud       owns 100% of Aldi Stores Supermarkets Pty Ltd	GER	website
Budget supermarkets Aldi was founded in Germany by the Albrecht brothers is 1913. In 1960 Aldi split into 2 independent groups, Aldi Nord (North) and Aldi Sud (South). Aldi's Australian operations are part of Aldi Sud.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
Aldi Stores Supermarkets Pty Ltd
Fishing policy Green rating in Greenpeace Canned Tuna Guide. "ALDI Australia took 4th place. It is taking improved sustainability seriously, thanks to its commitment to traceability and transparency on its labels. ALDI is currently only sourcing pole and line and FAD-free tuna, but should make some firmer policy commitments. By offering the consumer clear sustainability messaging on cans and in-store advertising, ALDI are going the extra mile to promote responsible fishing practices. Unfortunately, ALDI still uses yellowfin tuna, so be sure to choose its more sustainable Portview skipjack option instead." [Source 2017][More on Oceans] Australian Packaging Covenant signatory Signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation. [Source 2017][More on Packaging]	High free range stocking densities For eggs to be labelled free range, the Model Code of Practice says there should be a maximum of 1500 hens per hectare. In 2018 Choice updated its list of which egg brands meet the Model Code. According to the report, this company uses a stocking density of 10,000 hens per hectare for its free range eggs, well in excess of the Model Code. [Source 2018][More on Animal Rights]	Misleading labelling In July 2011 Aldi Foods provided a court enforceable undertaking to the ACCC in relation to the labelling of 'Just Organic' honey manufactured by Spring Gully Foods and sold exclusively through Aldi supermarkets. Both companies were ordered to change the labels, inform consumers by corrective notices, and establish and implement a compliance program. [Source 2011][More on Governance] ecoBiz Partner (QLD) ALDI operate 56 stores in Queensland. At these stores ALDI began using a unique moveable bulkhead system which allows a single truck to deliver frozen goods, fresh foods and non-perishables in the one load, thereby eliminating 400 journeys each year. Also, by making 60% of journeys during off peak times they maintain fuel consumption of 47 litres per 100 kms of diesel fuel. Eco-efficiency features standard across ALDI stores include, air lock air-conditioning, smart lighting, cross ventilation and natural air flow. ALDI stores also utilise reusable pallets, recycle all wrapping plastics and use rainwater tanks to irrigate landscaped areas. ecoBiz is the Department of Environment and Resource Management's eco-efficiency partnership program with Queensland Business. [Source 2011][More on Climate Change] GM-Free brands Aldi branded items were rated 'green' in Greenpeace's 2011 Truefood Guide, except for chicken products. This signifies a clear policy on excluding GM-derived ingredients, including oils derived from GM crops, and animal products from animals fed on GM crops. Chicken products may be fed GM grain. [Source 2011][More on Genetic Engineering] Microbeads phase out This company has agreed to phase out the use of microbeads in their own-brand products by 2017. These particles are not retained by wastewater treatment so end up in the ocean. While microbeads aren't thought to be a health hazard to consumers, they are a threat to the marine environment. [Source 2016][More on Oceans] UTZ certification This company sells UTZ certified chocolate, promoting fair and sustainable cocoa production. However this only represents a fraction of this company's total chocolate sales. [Source 2017][More on Eco-Certification] Fairtrade products This company sells Fairtrade Certified chocolate and coffee under its Just Organic house brand. However this only represents a fraction of their total chocolate and coffee sales. [Source 2015][More on Workers Rights] Removal of artificial food colouring To improve the nutritional content of ALDI Australia's exclusive brand lines and branded food items, artificial food colours have been removed. The artificial colours were replaced with natural substances or nothing and the reformatted products are of the same quality and taste. Six artificial colours identified in a University of Southampton study and an additional 8 used in Australian manufacturing were removed. [Source 2013][More on Product Safety] DrinkWise contributor This company makes voluntary contributions to DrinkWise Australia, a not-for-profit organisation established in 2005 by the alcohol industry, whose stated goal is to help bring about a healthier and safer drinking culture in Australia. [Source 2015][More on Irresponsible Marketing] Cage-free eggs commitment In 2016 this company committed to phasing out cage-eggs by 2025. [Source 2016][More on Factory Farming] Food and Grocery Code of Conduct signatory This company has signed up to the Food and Grocery Code of Conduct, which governs certain conduct by grocery retailers and wholesalers in their dealings with suppliers. It has rules relating to grocery supply agreements, payments, termination of agreements, dispute resolution and a range of other matters. [Source 2015][More on Governance] Sourced locally Most brands in store are ALDI's generic brands, under their own private label and 80% of these are sourced from local manufacturers. This is unlike the trend with generic house brands for the two major supermarkets that are increasingly sourcing their house brand products from overseas. [More on Governance] Adulterated oregano In April 2016 Choice tested oregano samples from 12 brands and found that only 5 were 100% oregano. The other seven, including Stonemill (Aldi), contained between 50% and 90% ingredients other than oregano, such as olive leaves. Choice referred the matter to the ACCC. As a result this company has agreed to only use 100% oregano. (http://bit.ly/2fzEvUe) [Source 2016][More on Irresponsible Marketing]
Aldi Sud
Bangladesh Safety Accord signatory This company has signed the 'Accord on Fire and Building Safety in Bangladesh', a program endorsed by Bangladeshi and international unions and labor rights organizations. The ground-breaking program includes independent safety inspections with public reports, mandatory factory building renovations, the obligation by brands and retailers to underwrite the cost of repairs, and a vital role for workers and their unions – all in a legally-binding, enforceable agreement. [Source 2018][More on Workers Rights] Farm animal welfare The 2017 Business Benchmark on Farm Animal Welfare (BBFAW) report ranks global food companies on how they are managing and reporting their farm animal welfare policies and practices. This company appeared in tier 3, "Established but Work to be Done", with tier 1 being the best, and tier 6 the worst. [Source 2018][More on Animal Rights]	Efforts to pay a living wage This company is doing little or nothing to ensure workers are paid enough to live on, according to this 2014 report by the Clean Clothes Campaign which grades companies on their efforts to ensure workers in its supply chain receive a living wage. [Source 2014][More on Workers Rights] Child labour scorecard This website by German NGO Earth Link rates companies on their corporate policies against child labour, production monitoring and accusations of child labour. This company received at least one red mark, indicating poor performance in one or more of these areas. [Source 2013][More on Human Rights] 'D' rating at rankabrand.org Rank a Brand searches the websites of brands for the answers to carefully targeted questions. From this they calculate sustainability scores based on the themes of environment, climate, labor issues, and transparency. Brands owned by this company received a 'D'. [Source 2016][More on Sustainability Reporting]	D rating in Green to the Core report Aldi received an overall score of 'D' in Consumer Focus's 2009 Green to the Core report, which rates the UK's top nine supermarkets on how well they inform consumers about sustainability issues and help them make more sustainable choices. The report uses four environmental indicators: climate change, sustainable farming, sustainable fishing, and waste and recycling. Aldi "scored highly in some areas - 100 per cent closed door freezers and a high proportion of sustainable content in packaging. However, let down by lack of information for consumers in many areas and could do better in the amount of UK in-season produce." [Source 2009][More on Packaging] Special bargains from China This 2009 report by SUDWIND (part of the German Clean Clothes Campaign) uncovers massive rights violations in Chinese factories that supply special bargains to Aldi. 'The mostly female employees worked up to 91 hours per week and yet were hardly able to make a living from their meager wages. The work load is enormous, and mistakes are being punished by fines. Fundamental labour and women's rights such as the right to maternity leave and to freedom of association are being suppressed.' [Source 2009][More on Workers Rights] Sweatshop labour Named in the Clean Clothes Campaign 'Cashing In' report on five top global retailers: Carrefour, Walmart, Tesco, Aldi, and Lidl, highlighting poor working conditions where these discounters produce their clothes and taking the companies to task for failing to take sufficient action to address these problems. [Source 2009][More on Workers Rights] Pesticides policy This 2011 report by Pesticide Action Network UK compares the top nine UK supermarkets' policies on pesticides. Aldi came equal last in the report, after failing to make any progress despite being the lowest performer in 2009. [Listed under Information due to age of report] [Source 2011][More on Product Safety] Dominate small retailers As a discount chain store, they have been criticised for running smaller retailers out of business. Bavarian dairy farmers picketed Aldi stores, which they blame for a ruinous 15% plunge in milk prices since 2001. [listed as Information due to age of article] [Source 2004][More on Governance] Detox commitment Greenpeace launched its "Detox My Fashion" campaign in 2011 to expose the direct links between global clothing brands, their suppliers and toxic water pollution around the world. As a result, many companies, including this one, committed to Greenpeace's Detox Program. [Source 2018][More on Habitats] Animal testing In 2008 Ethical Consumer (UK) gave Aldi a rating of 3 out of 4 for its animal testing policies, placing them in the top 3 of 19 supermarket and convenience store chains operating in the UK. [Listed under information due to age of report] [Source 2008][More on Animal Testing] Fur free retailer This retailer has committed to being a fur free retailer, as recognised by the International Fur Free Retailer Program. [Source 2016][More on Animal Rights] Leather Working Group member This company is a member of the Leather Working Group, a multi-stakeholder group who's objective is to develop and maintain a protocol that assesses the compliance and environmental performance of tanners and promotes sustainable and appropriate environmental business practices within the leather industry. [Source 2016][More on Multi-Stakeholder Initiatives] Transparency Pledge The Apparel and Footwear Supply Chain Transparency Pledge (Transparency Pledge) helps demonstrate apparel and footwear companies' commitment towards greater transparency in their manufacturing supply chain. Transparency of a company's manufacturing supply chain better enables a company to collaborate with civil society in identifying, assessing, and avoiding actual or potential adverse human rights impacts. This is a critical step that strengthens a company's human rights due diligence. This company has not committed to the Transparency Pledge, but will begin publishing supplier factory information in 2017. [Source 2017][More on Sustainability Reporting] Better Cotton Initiative member This company is a member of the Better Cotton Initiative, a voluntary initiative which encourages the adoption of better management practices in cotton cultivation to achieve measurable reductions in key environmental impacts, while improving social and economic benefits for cotton farmers, small and large, worldwide. [Source 2018][More on Multi-Stakeholder Initiatives] Commitment to zero deforestation 3/5 The Forest 500 identifies, ranks, and tracks the governments, companies and financial institutions worldwide that together could virtually eradicate tropical deforestation. Rankings are based on their public policies and commitments and potential impacts on tropical forests in the context of forest risk commodities (palm oil, soya, beef, leather, timber, and pulp and paper). This company received a score of 3/5. [Source 2016][More on Forests] Palm oil scorecard - WWF This company received a score of 6.5 out of a possible total of 12 in the WWF Palm Oil Buyers' Scorecard 2013. This report measures if major retailers and consumer goods manufacturers are acting responsibly in terms of palm oil use and sourcing. [Source 2013][More on Palm Oil] C- grade in 2018 Ethical Fashion Report C- grade in the Baptist World Aid Australia's 'Ethical Fashion Report 2018', which grades companies, from A to F, on the strength of their systems to mitigate against the risks of forced labour, child labour, and exploitation in their supply chains. Assessment criteria fall into four main categories: policies, knowing suppliers, auditing and supplier relationships, and worker empowerment. [Source 2018][More on Workers Rights] Company profile This 2010 Der Spiegel article explores "What Makes the Aldi Discount Empire Tick". [Source 2010]

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Related News

Woolies, Coles, Aldi caught up in child labour scandal
15th Dec 2015 — Burmese men, women and children are being sold to factories in Thailand and forced to peel prawns that ends up in global supply chains.

Woolworths, Coles and Aldi are embroiled in a child labour scandal, with all three supermarket chains confirming they sell prawns or seafood supplied by a Thai company at the centre of the allegations.

Graphic evidence of forced labour, including child labour, has been uncovered at a prawn peeling factory owned by major seafood supplier Thai Union.

An investigation by Associated Press found hundreds of workers at the company's factories working under poor conditions with some workers, mainly from Myanmar, locked inside or otherwise unable to leave the factory. Female workers sort shrimp at a seafood market in Mahachai, Thailand.

Children were observed working the production line and witnesses told the news wire service they worked under the threat of violence.

The Thai Department of Fisheries shows Thai Union has several facilities approved to export seafood to Australia.

The child and forced labour was seen at the Gig Peeling Factory in Samut Sakhon, about an hour's drive from Bangkok. Win Win Than, 25, says she tried to run away but was caught and handcuffed in a small room inside the shed. Win Win Than, 25, says she tried to run away but was caught and handcuffed in a small room inside the shed.

The scandal could lead to a prawn shortage over summer with consumers expected to hunt out Australian farmed prawns and pressure retailers to withdraw the products from its shelves.

All three of Australia's major supermarket retailers are conducting investigations into their supply chain after confirming to Fairfax Media they use Thai Union as a supplier.

Take action - have your say. See the Greenpeace campaign where you can call on the Government to make accurate seafood labelling mandatory.

Supermarkets still squeezing suppliers in agreements, says ACCC chairman
23rd Oct 2015 — The Australian Competition and Consumer Commission`s chairman has criticised major supermarket chains over their implementation of the voluntary grocery industry code of conduct.

The Australian reports that chairman Rod Sims has said Woolworths and Aldi had continue to pressure suppliers, ahead of the Australian Food and Grocery Council`s Industry Leaders Forum today. "It is unfortunate that the major retailers haven`t got off to a great start in implementing the code," The Australian reports Sims as saying.

The code was launched in July, and aimed to bring in a truce between suppliers and retailers.
  [source]