Sustainability

Why procurement leaders in manufacturing must rethink risk in the age of supply chain volatility

By Eamon Williams, procurement solutions specialist, OneAdvanced For procurement leaders in Australia’s manufacturing sector, risk is no longer a minor consideration; it’s a daily reality. From the Red Sea shipping crisis to the ongoing impact of inflation, trade tariffs and the wars in Ukraine and the Middle East, procurement professionals are navigating an era defined by disruption. In the past, risk management was largely about switching from unreliable suppliers or ensuring compliance with agreed service levels. Today, that’s just the beginning of the challenge facing the profession. The volatility of modern supply chains requires a more dynamic, data-driven and holistic approach to risk, one that goes beyond spreadsheets and static supplier assessments. The good news is that the manufacturing sector’s procurement leaders now have access to a new generation of technology solutions that are designed for this environment. Source-to-contract platforms offer real-time visibility, predictive insights, and built-in agility, giving businesses the tools to make smarter, faster, and more resilient procurement decisions. The risk landscape has shifted The global business environment has fundamentally changed over the past five years. The pandemic exposed the fragility of lean, just-in-time supply chains. Since then, the list of disruptive forces has grown to include wars in Ukraine and the Middle East, economic sanctions, climate-related events, inflation and labour shortages across critical sectors. According to the Australian Bureau of Statistics, nearly one in five businesses (19 per cent) reported supply chain disruptions in 2024, up from 15 per cent the previous year. For procurement leaders, this means risk can arise from almost anywhere and often without warning. A supplier operating in a previously stable region may suddenly become inaccessible. A shipping lane may close due to military action or piracy. A raw material price may spike due to climate-related harvest failure. These scenarios are no longer theoretical. The latest McKinsey Global Supply Chain Leader Survey suggests that when it comes to supply chain resilience, companies are taking their foot off the gas. Traditional risk models, which rely on past performance and static supplier records, are ill-equipped to deal with these variables. A supplier with a perfect track record may still be highly exposed […]

A decade of natural gas delivers $127 billion boost to QLD economy

Queensland’s natural gas industry contributed $127 billion to the state economy while supporting nearly 60,000 jobs in its first decade of LNG exports, economic analysis commissioned by Australian Energy Producers has found. The Economic Impact of Queensland Natural Gas and LNG 2014–24 report, by Lawrence Consulting, found the industry directly spent $58.6 billion in Queensland over the last decade, including $42.5 billion with more than 3,000 local businesses, community groups and charities. Australian Energy Producers Queensland Director Keld Knudsen said the findings reaffirmed the gas industry is a key driver of Queensland’s economic prosperity and energy security. “As Queensland’s natural gas industry celebrates the significant milestone of a decade of LNG exports, it is worth reflecting how the industry has transformed Queensland’s economic and energy future,” Mr Knudsen said. “This investment is paying dividends for all Queenslanders, delivering reliable and affordable energy for millions of homes and businesses, while unlocking billions of dollars each year in economic activity and government revenue to help fund the essential services and infrastructure our communities rely on.”. Key findings of the sector’s contribution in the period 2014-24 include: $127 billion added to Queensland’s Gross State Product $58.6 billion spent across Queensland over the decade which comprised: $42.5 billion in spending with 3,178 businesses and 307 community groups $7.2 billion in payments to the Queensland Government $695 million paid to local councils $8.2 billion in wages to Queensland workers Mr Knudsen said Queensland’s LNG export industry is an integral part of regional communities across the state, underpinning local jobs, businesses and services. “Every LNG tanker that departs Gladstone represents around $4.5 million in royalties paid to the state, $11.2 million in spending with local businesses, and millions more in salaries, community contributions and taxes.” “Long-term policy certainty is key to driving more investment in new gas supply and […]

Economic Reform Roundtable :Productivity

Australia is holding a roundtable on Productivity this month Lifting productivity is critical to growth in real wages, incomes, jobs and overall living standards. It needs to be done in a sustainable and inclusive way to ensure all Australians can benefit. Recent trends Lower growth in labour productivity has been a longstanding challenge for Australia. Australia’s average productivity growth in the 2010s was at the lowest rate in 60 years . – Reflecting this slowdown, Treasury downgraded its long-run annual labour productivity growth assumption from 1.5 to 1.2 per cent in 2022. – Even small movements in productivity growth will have large impacts on wages and living standards over time. The 2023 Intergenerational Report found that a decline from 1.2 per cent to 0.9 per cent growth per year would reduce per capita real income by more than $10,000 per person in 40 years’ time. This challenge is not unique to Australia, with labour productivity over the past decade slowing in most major advanced economies. A number of countries, including the United States, Canada and New Zealand have also downgraded productivity growth assumptions in official forecasts. Australia’s productivity slowdown has been broad based. Productivity growth in the market sector, excluding mining, has slowed over time. This has been compounded by weaker productivity growth in the non-market sector and mining industry in more recent years. Productivity growth accelerated temporarily during the COVID-19 pandemic before reversing. Productivity returned back to levels observed in 2019 as employment and consumption trends normalised and the labour market recovered strongly. – During this recovery, strong capital growth still did not keep pace with growth in hours worked, resulting in a decline in the capital to labour ratio which has weighed on recent productivity growth. – Treasury and the Reserve Bank of Australia (RBA) are monitoring the […]

Fuel and fertiliser for the future: regional hydrogen and ammonia power Aussie farming

Hiringa Energy, Sundown Pastoral Company and the NSW Government have announced Financial Close has been reached on their Good Earth Green Hydrogen and Ammonia (GEGHA) project. GEGHA has satisfied all development milestones, with construction scheduled to begin in October this year. This achievement highlights the sustained opportunity for Australia’s green hydrogen industry, proving right-sized, demand-led projects can succeed. The GEGHA project is an integrated solar energy to low-carbon hydrogen and ammonia operation. Once complete the plant will be located adjacent to Sundown’s Joint Venture Wathagar cotton ginning facility, near Moree NSW. GEGHA will produce up to 4,500 tonnes of low-carbon ammonia annually, displacing high-carbon fossil fuel-based nitrogen fertilisers and removing up to 17,000 tonnes of CO₂-equivalent emissions each year – the same as taking 6,500 passenger cars off the road or planting half a million trees. GEGHA fertiliser will be consumed by Sundown to support production of its positive net-zero, traceable Good Earth Cotton, with excess supply also available for other regional growers. In addition to ammonia production, the facility will supply ~224 tonnes of green hydrogen per annum for direct use. Green hydrogen is set to be consumed as part of Hiringa’s heavy-vehicle refuelling network, as well as on-farm to displace diesel in irrigation pumping, further decarbonising the agricultural supply chain from paddock-to-port. “Getting the green light for green fertiliser production isn’t just about producing low-carbon ammonia,” says Hiringa co-founder and CEO Andrew Clennett. “It’s a model for overcoming the obstacles that have held back the establishment of these new green industries. By strategically partnering with Sundown Pastoral Co, we’re anchoring demand with supply to meet the immediate needs of the agricultural sector.” Transforming supply chains GEGHA will offer East Coast Australia’s first green fertiliser supply, delivering regional producers with competitive, stable pricing for their fuels and feedstocks. […]

Precision with Purpose: ANCA Unveils 2025–2030 Sustainability Strategy

Global technology leader, manufacturing and engineering services, ANCA has launched its inaugural Sustainability Strategy 2025–2030, a bold and transformative roadmap that embeds environmental responsibility, innovation, and community impact at the core of its operations. Designed with the same engineering precision that has defined ANCA for over 50 years, this strategy represents a shift in how the company is shaping the future of advanced manufacturing. “Sustainability is not a finish line – it’s a commitment to evolving how we think, design, and operate,” said Martin U. Ripple, CEO of ANCA Group. “As engineers, we know progress is built on deliberate, smart steps. We’re proud to take this next step in our journey by integrating sustainability into every layer of our business.” Anchored in Climate Science: Science Based Targets Initiative As part of its environmental commitments, ANCA has aligned its climate goals with the Science Based Targets initiative (SBTi) – a globally recognised framework that helps businesses reduce greenhouse gas (GHG) emissions in line with the latest climate science and the goals of the Paris Agreement. ANCA has committed to reducing absolute Scope 1 and 2 GHG emissions by 42% by 2030 from a 2023 baseline, and to cutting Scope 3 emissions by 25% in the same timeframe. The SBTi alignment demonstrates ANCA’s dedication to ambitious, science-driven climate action. Emissions reductions will be achieved through a combination of energy efficiency improvements, adoption of renewable energy, and collaboration across the supply chain. Strategic Foundations: Governance, Innovation, and Impact Governance & Oversight An ANCA Sustainability Steering Committee will drive implementation, bringing together leaders from Operations, Finance, HR, and Business Units to ensure sustainability is embedded across decision-making and operations. Double Materiality Lens Guided by a double materiality assessment, ANCA’s strategy focuses on the intersection of business impact and global need – targeting the areas […]

China’s greening steel industry signals an economic reality check for Australia

Cristoph Nedopil, Director Griffith Asia Institute, Griffith University Australia has flourished as an export powerhouse for decades. Much of this prosperity has been driven by the nation’s natural endowment with two important raw products for producing steel the traditional way: iron ore and metallurgical coal. Worth more than A$100 billion in 2024, Australia’s iron ore shipments to China make up about 55% of everything we export there. But a transformation has been taking place in China’s steel industry, which is under intense pressure to decarbonise. Earlier this year, Beijing formally expanded its national emissions trading scheme to cover steel production. And just this month, it issued another decree requiring steelmakers to increase their share of green energy in steel production. Prime Minister Anthony Albanese’s recent visit to China may have looked like a celebration of normalised diplomatic or trade ties. Behind the scenes was a quiet but critical economic pivot. Australia’s economic future depends on whether it can green its exports fast enough to meet the decarbonisation needs of its biggest market. A greener China In China, no new permits for coal-based steelmaking appear to have been issued since early 2024. However, China has been approving new, greener steelmaking capacity, using electric arc furnace (EAF) technology, the main low-emissions technology in steel. These furnaces use high-voltage electric arcs, powered ideally by green energy, to melt scrap steel or what’s known as direct reduced iron (DRI). Through that process, they limit carbon emissions by reducing the use of thermal coal for electricity and metallurgical coal for iron making in blast furnaces. In total, China has now installed enough electric arc furnaces to produce more than 160 million tonnes of steel annually. That’s about the same as the total steel output of Japan and the United States combined. China’s current 10% share of steel production from electric arc furnaces still remains below the country’s 15% target. But […]

ON Accelerate 9 showcases national innovation potential in deep tech

CSIRO, Australia’s national science agency, celebrated the progress and achievements of its latest ON Accelerate cohort at a showcase in Melbourne yesterday. ON Accelerate tackles the barriers that hold deep tech research back, fast-tracking breakthrough ideas into real-world applications and market-ready ventures. The showcase highlighted the incredible strides made by the 11 deep tech teams since the three-month program began in April. Each team was selected for their groundbreaking solutions and ideas at the cutting edge of technology, including drug development, healthcare delivery and sustainability. The ON Accelerate 9 cohort has collectively reached several key milestones, including over $33.8 million in grant funding and capital investment, demonstrating their potential to address critical market needs and drive financial progress. Each of the 11 teams achieved technology validation through the program, with their accomplishments ranging from advancing novel medical treatments and diagnostic tools to developing sustainable industrial solutions. Dr Jen Taylor, Executive Director of Future Industries at CSIRO, highlighted the impact of this year’s cohort in industries vital to Australia’s future, including biotech and healthcare innovation. “We’re incredibly proud to support the next wave of Australian researchers endeavouring to solve society’s most critical challenges,” Dr Taylor said. “Establishing connections with the broader innovation ecosystem, including mentors, investors and customers, is crucial for success, yet no easy feat, and continues to be a key barrier impacting Australian research translation. “We’re committed to breaking down these barriers and unlocking pathways for success, ensuring this cohort continues on its impressive growth trajectory to boost Australia’s global research competitiveness and contribute to future economic growth.” Dr Brennan Mills of I-VADE, from Edith Cowan University, was announced as the ON Accelerate 9 recipient of the esteemed 2025 Stanford Australia Foundation Hawkins Ueland & CSIRO ON scholarship. The scholarship offers an ON Accelerate alum the opportunity to […]

Got Solar? Share the power: National energy trial needs volunteers

Australians with rooftop solar are being invited to take part in a first-of-its-kind research project exploring how communities can buy and sell clean energy directly with each other. Led by Deakin Business School, the Virtual Energy Network (VEN) study is testing how households and small businesses can benefit from peer-to-peer energy trading – allowing those with solar or battery systems to sell their excess energy to others who don’t have solar but want to access greener, cheaper power. ‘This is a potential game changer for how we share renewable energy,’ said Dr Andrea La Nauze, the project’s lead researcher and an energy economist at Deakin University. ‘It’s about empowering people with solar to decide where their surplus power goes and how much they charge for it, while giving more Australians access to clean energy – even if they can’t install panels themselves.’ The trial is now recruiting 400 participants from across Australia, including individuals and community groups, to join an online platform where sellers and buyers of energy can connect based on pricing preferences. Participants don’t need to live in the same suburb – or even the same state – but they do need to be with the same energy retailer. Sellers could include households, small businesses, or even larger operations with multiple properties. For example, parents could share their excess energy with their children or other extended family members to help with cost-of-living pressures. Buyers, meanwhile, can benefit by accessing power that’s cheaper than typical electricity prices, while supporting local renewable energy use. The VEN trial is funded through Energy Consumers Australia’s Grants Program and delivered in partnership with QuantumNRG, ReThink Sustainability and WinZero. Dr La Nauze said the project was inspired by a successful community-led energy trading initiative in Wingecarribee, NSW, and could help lay the foundation for […]

AREMA calls for urgent reform on incentives for hot water heat pumps

New South Wales and Victoria, supported by initiatives taken by the Commonwealth Government, created bold programs to support electrification and net zero through providing rebates to home and business owners that install hot water heat pumps. While well intentioned, there are major flaws within these programs, including: Safety – some of the equipment on the market have inherent risks and are being installed by an untrained cohort. Performance – some of the hot water heat pumps for sale simply do not give the electricity savings and hot water indicated. Fraud & waste – unscrupulous and untrained people are selling and installing poorly made and designed products to an unsuspecting population to obtain the incentives. Industry has been engaging on these issues with governments, for the last couple of years, but there remains no certainty that significant reforms are forthcoming. AREMA argues that if reform is not possible over this year, then the incentive programs in place now should be put on hiatus until these issues are resolved. So what needs to happen? Product standards for safety and minimum energy performance needed to be in place. We are still waiting for these to be developed, implemented and put into regulations. The trade needed to be trained and licensed. The knowledge and skills needed includes both plumbing and refrigeration expertise. The licensed plumber and fridgies out there needed to have their skills lifted before these programs recommence. There needed to be a robust compliance regime to ensure questionable products and people are kept out the market. To be clear, there are well-engineered hot water heat pumps on the market from all over the world, that are being installed by competent and experienced technicians. These products deliver hot water efficiently and with a markedly reduced electricity bill and lower emissions Sadly, these products […]

As the Latrobe Valley moves away from coal jobs, could a green worker’s cooperative offer a solution?

Gregory Patmore, Emeritus Professor of Business and Labour History, University of Sydney. Worker cooperatives may sound like something out of the 19th century, but they still exist in the age of global capitalism. In Spain, for instance, the Mondragon Corporation is a huge worker-run cooperative based around 95 collectives – the largest cooperative in the world. Worker cooperatives produce products or services. But they are run very differently. Workers can become members of the cooperative they work for by buying a share of the business. This gives them a vote in how the business is run and a share of net income, after costs have come out. Co-ops do not have external shareholders – the profits stay with workers. Rather than bosses deciding and workers carrying out the tasks, worker cooperatives are based on democratic principles. Big decisions are discussed and then voted on, and each member gets one vote. They offer a direct way for workers to control their production and shape the economy. In Australia, these models peaked in the 1980s. Most are gone, though a few older cooperatives are still running, such as Tasmanian recycling cooperative Resource Work Collective, founded in 1993. In recent years, there’s been renewed interest in the model. The Earthworker cooperative network focused on Victoria’s Latrobe Valley. The goal: find new types of employment and products in a coal area undergoing transition. Coal plants in the Latrobe Valley provided jobs for generations of workers. Their closure poses real challenges. Pictured: worker hardhats left on the fence at Hazelwood Power Station after it closed in 2017. Dorothy Chiron/Shutterstock How well does the model work? Mondragon is the most well-known example. Founded in 1956 in the Basque region of northern Spain, Mondragon grew and became self-sustaining. It has developed supporting institutions such as research and development companies and even a university. It also established a credit […]

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