At Coles’ recent annual general meeting, shareholders expressed deep dissatisfaction with the supermarket’s handling of key environmental issues, particularly the contentious practice of salmon farming in Tasmania’s Macquarie Harbour. Concern centred on the plight of the endangered Maugean skate fish, which has been severely affected by farming practices in the harbour, home to a dwindling population of only 40 to 120 adult skates.
Environmentalists argue that recent government funding of $28 million to improve water quality in the harbour effectively permits the ongoing pollution associated with the salmon industry, exacerbating risks to the species’ survival.
Although Coles noted that salmon sourcing from Macquarie Harbour has nearly halved since 2014, it has not committed to a full transition away from the area. Frustrated shareholders demanded action, warning the board that allowing the skate to go extinct could seriously harm Coles’ brand and shareholder value.
Prior to the meeting, Coles advised shareholders to reject a resolution that would mandate ending the procurement of salmon from Macquarie Harbour by April 2025, citing a preference for a multi-stakeholder approach backed by the government.
Further complicating matters, Coles’ chairman highlighted the strain of rising costs, linking recent supermarket challenges to broader economic pressures. He expressed disappointment over what he described as political scapegoating of supermarkets in the current cost-of-living crisis, contrasting it with the positive collaboration seen with government during the Covid-19 pandemic and other crises.
While Coles reaffirmed its commitment to offering discounts, the Australian Competition and Consumer Commission (ACCC) recently accused the supermarket of deceptive pricing practices, with 245 product discounts allegedly misleading customers during a period of significant inflation.
Shareholders also confronted Coles on its lagging deforestation policies, pointing out that competitors Woolworths and Aldi have already set deforestation-free targets for their supply chains by 2025. Outside the meeting, environmental advocates raised concerns over deforestation’s impact on endangered species like the koala.
Greenpeace and other groups criticised Coles for falling behind on critical sustainability commitments, urging the company to align with industry standards on forest conservation and biodiversity protection.
In response, Coles’ leadership outlined a broader sustainability approach, stating that their strategy focuses on four key areas: energy, emissions, waste management, packaging, and sourcing.
However, critics remained sceptical, pressing for specific commitments on deforestation, which remains a point of contention for many shareholders concerned about the company’s environmental impact and its broader role in combating biodiversity loss.
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