McPherson’s has advanced its environmental, social, and governance (ESG) initiatives by embedding AASB S2 governance directly into its formal governance framework. The company completed a preliminary Climate Risk and Opportunity (CRRO) assessment, identifying key transitional, physical, and operational risks and opportunities relevant to its operations and supply chain. This was supported by a detailed Responsible/Accountable/Consulted/Informed (RACI) matrix, assigning clear ownership for the monitoring, management, and oversight of climate-related risks and opportunities across all levels of the organisation.
Material actions and disclosures
The company is conducting a Scope 1, 2, and 3 GHG emissions assessment, with completion expected during FY27. This assessment will provide the emissions baseline needed to inform target-setting and to respond to the growing number of data requests from customers managing their own Scope 3 reporting obligations.
McPherson’s is also advancing its other material ESG focus areas, including sustainable packaging and supply chain management, including modern slavery. The company has improved the recyclability of product packaging to support circular economy principles and reduce barriers to recycling. Additionally, it has implemented ‘Specright’ software to strengthen packaging specification management and support sustainable packaging reporting.
Regarding supply chain management and modern slavery, the company has strengthened supplier due diligence, modern slavery risk management, and supply chain visibility through the implementation of the ‘iPro’ (SAAS) modern slavery risk management platform. This platform has enabled more efficient risk assessment, monitoring, and reporting processes across the company’s supplier base.
Forward commitments
In FY27, McPherson’s plans to continue embedding governance and data systems, finalising its emissions baseline, and progressing metrics and target-setting work in preparation for FY28 disclosures. These actions will ensure the company is well-positioned to meet its own obligations and to support the reporting needs of stakeholders across its value chain.
The company remains committed to driving further progress against its ESG priorities, not only to meet regulatory obligations and manage risk but to realise the opportunities that ESG integration presents.
These developments are part of the company’s broader strategy to integrate ESG into its operations, better positioning it to meet regulatory obligations while seeking to create long-term value for shareholders, customers, and the communities in which it operates.