● Environment Tasmania has filed the world’s first OECD complaint against a major retailer for environmental violations

● Complaint alleges Woolworths has violated the OECD Responsible Business Conduct Guidelines by:
○ Failing to conduct heightened due diligence for its Own-Brand salmon sourced from Macquarie Harbour farms despite evidence of harm to the endangered Maugean skate and World Heritage Area
○ Misleading consumers with its ‘responsibly sourced’ labelling on its Own-Brand salmon
○ Failing to disclose foreseeable nature-risk to shareholders associated with its salmon supply

● Complaint comes as Woolworths continues to face shareholder pressure over the skate

Today Environment Tasmania, submitted a first-of-its-kind Organisation for Economic Co-operation and Development (OECD) complaint against Woolworths Group for continuing to source from Macquarie Harbour for their Own-Brand salmon despite the potentially irreparable harm to the ancient Maugean skate and Tasmanian Wilderness World Heritage Area. Globally, Woolworths is the first retailer to receive an OECD complaint in relation to destruction of the environment.

The complaint was filed under the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, with the Australian National Contact Point at the Australian Treasury. The OECD Guidelines are internationally agreed responsible business conduct standards on a range of issues such as the environment, human rights and consumer interests. Governments expect multinational businesses to comply with the standards.

Kelly Roebuck, Vice Chair, Environment Tasmania said: “Woolworths continues to use excuses to keep selling Macquarie Harbour salmon instead of taking the actions expected of them under the OECD Guidelines. As one of the world’s largest and most profitable retailers, and as a major buyer of Tasmanian salmon, Woolworths has a duty to fulfill its obligations under international frameworks and shift procurement away from Macquarie Harbour salmon.”

The complaint argues that Woolworths is violating the OECD Guidelines by continuing to source from Macquarie Harbour salmon farms for its Own-Brand salmon despite the Australia Government’s Conservation Advice that identifies said farms as a “high-risk threat” to the endangered Maugean skate. Additionally, Woolworths’ labelling of its Own-Brand salmon as ‘responsibly sourced’ goes against the OECD standards on misleading and deceptive claims.

The complaint is one of the first worldwide to be filed since the OECD Guidelines were strengthened in 2023 to reflect the Kunming-Montreal Global Biodiversity Framework and supply chain due diligence expectations for businesses. Importantly the revised Guidelines expect companies to conduct “heightened” due diligence where biodiversity harms involve UNESCO World Heritage Areas and protected species. The Maugean skate is a protected species that is listed as a World Heritage Value under the Tasmanian Wilderness World Heritage Area. A third of Macquarie Harbour forms the World Heritage Area.

Globally, the complaint is also the first to hold a company to account for failing to disclose foreseeable risks to shareholders – in particular nature or biodiversity risk. Nature-risk has been recognized as a ‘material financial risk’, with more than half the world’s GDP (equivalent to US $58 trillion) moderately or highly dependent on nature.

James Overington, CEO, Environment Tasmania said: “Woolworths was the first company in the world to receive a shareholder resolution aimed at preventing a species extinction. Now they are the first retailer in the world to receive an OECD-complaint for biodiversity harms on a protected species and World Heritage Area. The Woolworths board and executives should be ashamed of having these many ‘firsts’ in environmental destruction associated with their brand.”

A recent report warned that companies and their directors who fail to consider nature risks are likely to see increased shareholder pressure and even litigation. This year, Woolworths is again facing shareholder resolutions calling for the supermarket giant to disclose and act on its impact to the Maugean skate.

“Shareholder resolution votes act as a barometer for investor sentiment. Last year, Woolworths faced one of the largest votes for a nature-risk resolution ever. Numerous institutional funds from Australian and abroad, representing millions of members, called for the Woolworths to act for the skate. If Woolworths had listened to their shareholders it may not have been necessary to lodge a complaint with the OECD,” concluded Roebuck.

–end–

Media contact:
James Overington, CEO, Environment Tasmania - [email protected]

Backgrounder:
Download the full complaint

About the complaint
Complaint summary:

● According to the OECD Guidelines, Woolworths has a responsibility to prevent severe environmental harms associated with its products. Heightened action is necessary for harms associated with protected species (i.e., the endangered Maugean skate) and UNESCO World Heritage site (i.e., Tasmanian Wilderness World Heritage Area).

● As early as 2013, Woolworths was made aware of and ought to have known severe environmental harms were occurring in Macquarie Harbour, including the World Heritage Area and the endangered Maugean skate; and that these impacts were directly linked to the company’s Own-Brand salmon supply chain through business partnerships.

● Woolworths’ relationship to the harm has escalated from ‘directly linked’ to ‘contributing to the harm’ given the severity and failures to take appropriate action expected by the OECD Guidelines.

● Despite evidence that certifications were not ‘fit and proper’ tests for Macquarie Harbour, Woolworths has continued to rely on these flawed certifications instead of taking the actions to prevent harm expected under the OECD Guidelines.

● Woolworths’ citing of government processes and claims of scientific uncertainty as reasons for not taking action violate the OECD Guidelines.

● Woolworths has not disclosed foreseeable risks to investors (e.g., nature and reputational risk associated with endangered species harms) as expected under the OECD Guidelines.

● Woolworths sells Macquarie Harbour salmon as ‘responsibly sourced’ in violation of the consumer interests standards of the OECD Guidelines.

● Complaint calls for Woolworths to align and comply with the OECD Guidelines by disclosing the risks to investors; immediately taking actions to stop selling Macquarie Harbour salmon; and removing its ‘responsibly sourced’ labelling.

Information on the complaint process

About the Save the Skate shareholder campaign
● The ‘Save the Skate’ shareholder campaign is a collaboration between SIX, Environment Tasmania, Neighbours of Fish Farming, Eko, Living Oceans Society, Reichstein Foundation, Ethinvest, and Ethical Investment Advisers.
● In 2024, 120 Woolworths shareholders filed resolutions calling for the company to act and disclose its impact its Own-Brand salmon has on the endangered Maugean skate.
● The disclosure resolution received 30.42% support, representing millions of super and pension fund members from Australia and abroad.
● According to the United Nations Principles for Responsible Investment, votes with support of 20% or more should prompt company action. Woolworths is yet to respond meaningfully to the 30% vote.
● 2025 shareholders resolutions have been submitted to Woolworths
● Shareholder resolutions have also targeted Coles.