Synlait Supports Zero Carbon Bill

Synlait Milk Ltd · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

SYNLAIT MILK LIMITED ANNOUNCEMENT NZX: SML
ASX: SM1
8 MAY 2019

SYNLAIT SUPPORTS ZERO
CARBON BILL
Synlait (NZX: SML; ASX: SM1) applauds the government's bold Zero Carbon Bill announcement today,
including new methane targets.
These targets are aligned with Synlait’s commitment to sustainability announced in June 2018.
Synlait has committed to achieve on-farm reduction of greenhouse gas emissions (GHGs) by 35% per
kilogram of milk solids (kgMS) by 2028, including a reduction of methane by 30%.
Synlait also has targets for its manufacturing sites and supply chain including reductions of GHGs by 50%
per kilogram of finished product by 2028.
“We believe we need to play our part and help lead our industry to a low emissions future. We’re making
good progress and exploring new avenues,” says Synlait’s CEO, Leon Clement.
“As part of this work we have been investigating methane reduction and are pursuing some encouraging
technologies that decouple the correlation between methane generation and herd size,” says Mr Clement.
Synlait’s farming programme Lead With Pride™ was also given a boost in June 2018 under the new
sustainability strategy. Higher incentive payments have led to many more farmers moving towards
certification, with Lead With Pride™ certified milk supply expected to increase 40% by the end of FY19.
The programme recognises and rewards milk suppliers who achieve dairy farming best practice. As part of
that programme GHG mitigation plans and benchmarking were introduced as well as incentives for
farmers with palm kernel expeller (PKE) free farms. There has been strong interest in PKE incentives from
both our South Island and our North Island milk suppliers.
However, Synlait recognises that farm profitability is also very important, and milk suppliers will need
assistance to achieve Zero Carbon Bill targets.
“Best practice will get us some way to achieving these goals, but we need some ground-breaking
technology to get us there in the end. Synlait will be working alongside its farmers to help them to meet
targets whilst maintaining farm profitability,” says Mr Clement.
“Whilst we don’t have all the answers yet, it’s important we set a goal and seek solutions. This will most
definitely be a team effort.”

Synlait Milk Ltd · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

Synlait also recognises some of the wider industry challenges around working towards these targets, but
acknowledge the government has: put in place a review in 2024, to ensure the targets are reviewed in line
with available technologies; and taken a science-based approach to the targets whilst considering the
response from other Paris signatories.
“We believe it is important we come together as leaders of our industry, as a scientific community, and
across the public sector to address our shared challenges. This is the problem of our age and we must
protect New Zealand’s reputation as a safe and responsible producer of food for our global markets, and
the future prosperity of our communities and the environment,” says Mr Clement.

ENDS

For more information about Synlait visit www.synlait.com
or contact:
Jessica Thorn
Senior Communications Advisor, Synlait Milk
P: +64 3 373 3353
E: Jessica.thorn@synlait.com