Sustainability Report Released

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






NZX: SML
ASX: SM1


1 December 2021

Sustainability Report Released: GHG Improvements Exceed Expectations

Synlait Milk Limited (Synlait) today published its Sustainability Report which demonstrates a significant
improvement in the milk nutrition company’s greenhouse gas (GHG) emissions.

Synlait’s on-farm emissions intensity, per kg of milk solids, reduced 5% over the past year, or 10%
compared to our FY18 base year when targets were first established. Total off-farm (scope 1 and 2)
emissions have remained stable since last year, however, emissions intensity per kg of product, has
reduced by 24% compared to FY18.

Synlait Director – Sustainability, Brand, Beverages and Cream Hamish Reid commented: “Our
sustainability journey started in 2017, when we realised that business could no longer talk about, and
plan for, perpetual continuity. Since then, we have chosen to pivot, building, and delivering on, our
sustainability strategy, and we are making some impressive gains, which have exceeded our own
expectations.”

“We still have a long way to go – as a company, as an industry, and as a country, but here at Synlait
we are determined to change, and to inspire others to join us.”

This is Synlait’s third sustainability report which reviews the company’s social and environmental
performance and achievements for the year ended 31 July 2021. The full Sustainability Report can be
viewed here
.

Synlait’s Greenhouse Gas Inventory Report can be viewed here
.

For more information contact:
Jessica Thorn
Senior Communications Advisor
P: +64 27 548 4895
E: jessica.thorn@synlait.com

---

SUSTAINABILITY REPORT 2021

WELCOME TO OUR
SUSTAINABILITY
REPORT.
This sustainability report reviews
Synlait Milk Limited’s (Synlait) social
and environmental performance and
achievements for the year ended
31 July 2021.
The scope of this report includes all
entities in which Synlait Milk Limited
has more than 50% ownership.
In FY21, Synlait Milk Limited fully
owned Synlait Milk Finance Limited,
The New Zealand Dairy Company
Limited, Eighty-Nine Richard Pearse
Drive Limited, Synlait Business
Consulting (Shanghai) Limited, Synlait
Milk (Dunsandel Farms) Limited
(incorporated in August 2020),
Dairyworks Limited and Dairyworks
(Australia) Pty Limited. On December
2020, Synlait Foods (Talbot Forest)
Limited was amalgamated into
Dairyworks Limited. Sichuan
New Hope Nutritional Foods, in
which Synlait has less than 50%
shareholding, is excluded from the
Sustainability Report’s scope.
In FY21, Synlait’s manufacturing
sites were Synlait Dunsandel,
Synlait Pokeno, Synlait Auckland,
Talbot Forest Cheese (Temuka) and
Dairyworks (Christchurch). Synlait’s
leased Westney Road warehouse
(Auckland) and Dairyworks’ leased
Gerald Connelly warehouse
(Christchurch) have been included
in some environmental metrics, such
DATA QUALITY
ASSESSMENT
Synlait engaged an independent
third party to undertake a
review of key elements (marked
with an asterisk *) of this report
for completeness and accuracy.
ABOUT THIS
REPORT
as electricity, LPG, waste and GHG
emissions. Our other sites - Synlait’s
innovation centre (Palmerston North),
China office (Shanghai) and Press
House office (Christchurch) - are
negligible in terms of environmental
impact and are excluded from the
scope of all Environment indicators.
They are nevertheless (unless
otherwise stated), included in the
People and Enterprise indicators.
Our on-farm indicators cover all
contracted milk suppliers. In FY21,
Synlait’s direct milk suppliers were in
Canterbury and the Waikato. Unless
another period is indicated, this report
covers the period of Synlait’s financial
year, 1 August to 31 July annually.
Some on-farm metrics are based on
the milking season (1 June to 31 May)
or on OVERSEER®’s reporting period
(1 July to 30 June).
The Synlait Dunsandel farms (acquired
in FY20) were leased to a farming
business, that operated them and
sold the milk back to Synlait, up until
May 2021. Therefore, environmental
impacts from the farms are included
not as scope 1 and 2 (direct impacts),
but as scope 3 (supply chain) impacts.
Synlait’s commitment to elevating
people and planet to the same level
as profit was recognised in June
2020 when we became part of the
B Corp
TM
community.
B Corp
TM
is a community of leaders
driving a global movement of people
using business as a force for good.
Certified B Corporations
TM
consider
the impact of their decisions on
their workers, customers, suppliers,
community, and the environment.
This movement resonates strongly
with Synlait’s purpose of Doing Milk
Differently For A Healthier World.
Learn more about what being a
B Corp
TM
means for our people,
our community, and our customers
at: synlait.com/bcorp
SUSTAINABILITY REPORT 2021

Milk, separated at source, is unloaded into the
appropriate silos at Synlait Dunsandel’s Milk
Reception Bay.
CONTENTS
About this report 01
Introduction 04
Our Heart, Head, Hands 06
Our sustainability framework 08
How we operate 10
How we create value 12
Our materiality analysis 14
UN Sustainable Development Goals 16
Made With Better Milk 18
Net positive for the planet 22
Climate 24
Water 30
Welfare 36
Circular economy 40
A healthier Synlait 44
Safe workplace 46
Talent attraction and development 50
Diversity and inclusion 54
Culture and community 58
World class value chain 62
Safe food 64
Healthy farming 68
Sustainable supply 74
Transparency 78
Appendix - GRI content index 82
SUSTAINABILITY REPORT 2021PAGE 02 & 03

Kia ora, and welcome to Synlait’s
third Sustainability Report.
Our sustainability journey started in
2017, when we realised that business
could no longer talk about, and
plan for, perpetual continuity. As a
business in the food and fibre sector,
we could no longer define ‘winning’
as we had in the past when the health
of our climate, soil, biodiversity, water,
and animals were suffering.
Our business is dependent upon
natural systems and we are seeing
them decline. On the one hand,
over past 70 years since the
industrialisation of food, our industry,
has done brilliantly at feeding billions
of people cheaply, but this has come
at a cost.
Agriculture is responsible for 30% of
the world’s greenhouse gas emissions
(GHG) and 70% of freshwater use. As
humans we have been responsible for
60% of patuanuku’s (mother nature’s)
deforestation and 40% of biodiversity
loss. We cannot continue along this
path – 10 billion people’s lives and
millions of other species depend on
us to make a course correction.
So, since 2017, we have chosen to
pivot, building, and delivering on, our
sustainability strategy. We have bold
10-year targets across our on-farm
and off-farm operations. We have
work plans across 12 sustainable
innovation platforms, and we are
making some encouraging progress
which is set out in this report.
As we published this report, we
also announced Synlait’s on-farm
emissions intensity, per kg of milk
solids, reduced 5% over the past
year or 10% compared to our FY18
base year when targets were first
established. Total off-farm (scope
1 and 2) emissions have remained
stable since last year, however,
the emissions intensity, per kg
of product, has reduced by 24%
compared to FY18. We have a
long way to go – as a company,
as an industry, and as a country,
but we are determined to change,
and to inspire others to join us.
The commercialisation of
our sustainability strategy is
extremely important. If we can
secure premiums for our products
off the back of our investment in
sustainability initiatives – that can
be reinjected into further gains.
As you will read in this report, we
are again making good progress
in this space. By way of example,
in April, we launched Made With
Better Milk, a value-add premium
ingredients offering that brings
together three propositions:
1. Synlait’s best practice Lead
With Pride™ farming system.
2. Our modern processing
facilities with the industry’s
most ambitious sustainability
strategy being implemented.
3. Our corporate purpose which
is symbolised by our B Corp™
certification.
New Zealand-made milk nutrition
ingredients are well known for
quality and safety; however, we
need to keep differentiating
ourselves. Made With Better Milk
provides our global customers with
the opportunity to differentiate the
products they market to consumers
based on a supply chain that takes
better care of people and animals,
and generates better outcomes for
climate, water, soil, and biodiversity.
This is the future we are working
toward – New Zealand made
food respected for being good for
people and the environment. And,
accordingly, we, as a commercial
business, will be rewarded for the
value of that. I hope you find our
progress encouraging.
Ngā manaakitanga.
Dr John Penno,
CEO
Hamish Reid,
Director – Sustainability,
Brand, Beverages and Cream
DrJohn Penno,
CEO
Hamish Reid,
Director – Sustainability,
Brand, Beverages and Cream
FY21 PRODUCTION*¹
215,000MT
FY21 REVENUE
$
1,367.3M
FY21 CONTRACTED MILK SUPPLY*
(‘000)
86,820kgMS
FY21 TOTAL EMPLOYEES*
1,264
FY21 MILK SUPPLIERS*
277
KEY
HIGHLIGHTS
*
Indicates that data quality was reviewed
by an independent third party.
1
Production figures for FY18-FY20 were restated
following a change in the reporting system used.
This has led to minor variations in the FY18-FY20
intensity metrics disclosed throughout this report.


17

5.8 Other E missions - B iomass
No biomass was combusted by Synlait during this reporting period.
6. GHG INVENTORY ASSURANCE
Deloitte Limited has been appointed as the third-party independent assurance provider. A reasonable
level of assurance has been given over the Scope 1 and 2 assertions and quantifications included in this
report and a limited level of assurance over the Scope 3 assertions and quantifications.

Person responsible:
Hamish Reid, Director of Sustainability and Brand


Dated:
17/11/2021



SUSTAINABILITY REPORT 2021PAGE 04 & 05

OUR HEART, HEAD, HANDS
$2 billion in revenue
Zero injuries
Zero defects
Zero losses
Beverages
and Cream
Nutritionals
Ingredients
Consumer
Foods
2
+
ZERO
Net +ve impact on
planet and communities
+ve place to grow with
100% engagement
A Healthier
Synlait
World Class
Value Chain
Net Positive for
the Planet
DOING MILK
DIFFERENTLY
FOR A HEALTHIER
WORLD
DOING MILK
DIFFERENTLY
FOR A HEALTHIER
WORLD
HEART OUR PURPOSEHEAD OUR AMBITIONHANDS OUR STRATEGY
CONSUMER
FOODS
A manufacturer of consumer fresh
milk, cheese, butter, and yogurt
products in the New Zealand and
Australia domestic markets under
our own and/or private label brands.
NUTRITIONALS
Offers a whole of supply chain
solution for large-scale, world-
class, multinational brand owners
of infant, children, and adult
formulated nutritional powders.
This business also manufactures
specialised nutritional ingredients
such as base powders for others to
blend and package, and lactoferrin
as a high value ingredient.
BEVERAGES
AND CREAM
A growing business focused
on product development and
innovation to manufacture
high-specification, long-life
consumer-packaged beverages,
foodservice cream products,
and ready to feed infant formula.
INGREDIENTS
An efficient and focused business
that manufactures high-quality whole
and skim milk powder and milk fat
products from a differentiated milk
supply for leading multinationals and
large Chinese customers.
In FY21 Synlait restructured its organisation into four business units:
PAGE 06 & 07SUSTAINABILITY REPORT 2021

Our strategy continues to be supported by three enabling pathways:
OUR SUSTAINABILITY
FRAMEWORK
Net Positive for
the Planet
World Class
Value Chain
A Healthier
Synlait
A HEALTHIER
SYNLAIT
A Healthier Synlait is about
strengthening our company. It is
about building systems that support
and develop our people, making sure
that we are all safe and establishing
a culture of kotahitanga or unity,
growing a diverse and inclusive
organisation and continuing to
manage our risks.
WORLD CLASS
VALUE CHAIN
World Class Value Chain is core to
our reputation. It covers healthier
farming practices, safe food and
market access, manufacturing
excellence, building a sustainable
supply chain, and transparency. Our
teams are doing great work in this
space because we are constantly
asking ourselves: how can we think
differently and make things better?
NET POSITIVE
FOR THE PLANET
Net Positive for the Planet represents
the stand we are taking for the
planet. We are delivering against the
sustainability targets we launched
in FY18 and look to be instrumental
in the industry’s response to climate
change, eliminate water degradation,
implement a circular economy,
and lead stewardship for animals,
biodiversity and soil.
SUSTAINABILITY REPORT 2021PAGE 08 & 09

TECHNICAL SERVICES (MANUFACTURING)
SITE SERVICES, ENERGY, MAINTENANCE
Supply
Supply
Optimise
Supply
NUTRITIONAL
PRODUCTS
INGREDIENT

PRODUCTS
BEVERAGES AND

CREAM PRODUCTS
CONSUMER FOODS
Synlait Pokeno and Auckland:
D4, wetmix and blending and canning
Talbot Forest Cheese
Synlait Dunsandel:

DLP1
Synlait Dunsandel: D3, wetmix,

lactoferrin, blending and canning, whey
Synlait Dunsandel:

D1, D2, AMF
NETWORK PLANNING
LOGISTICS
CORPORATE SERVICES (INCLUDING SUSTAINABILITY)
QUALITY AND LABORATORY
TECHNICAL SERVICES (PRODUCT)
PROCUREMENT AND MILK SUPPLY
Order
Order
Order
Supply
WE HAVE ALIGNED STRUCTURE TO
STRATEGY TO RESET HOW WE OPERATE
PAGE 10 & 11SUSTAINABILITY REPORT 2021

WHAT WE DO
HOW WE
CREATE VALUE
WHAT WE HARNESS
Social
Customers, farmer suppliers, regulators,
community
Human
New Zealand and China-based staff
Strengths-based approach to development
Health and safety leadership
Physical
Owned New Zealand-based assets
Integrated manufacturing systems
Financial
NZX/ASX listings
Long-term strategic shareholder base
linked to growth markets
Shareholder capital
Intellectual
Lead with Pride
TM
programme
Expertise to design, build and operate
world-class facilities
Innovation centre
Natural
Water, energy, land, milk
OUTCOMES
Nutritional, safe products
Health and essential nutrition
Trusted brands, product traceability
Extensive product range
Industry challenger
Recognised for on-farm sustainability
standards: Lead With Pride
TM
Catalyst for change
Long-term, high-growth partnerships
Market access
Achieved due to regulatory and
quality accreditations
Capability to grow
Talented employees
Innovative and agile culture: Kotahitanga
(unity or solidarity, in te reo Māori)
World-leading engagement results
Environmental stewardship
On-track to reduce on-farm and
off-farm environmental impacts
Certified B Corp
TM

Financial capability
Lead With Pride
TM
incentive payments
Competitive margins
Revenues reinvested
On-farm
Reward New Zealand’s most
innovative farmer suppliers
Source differentiated milk streams
Operations
Operate world-class facilities
Process differentiated milk streams
Implement best practice food safety,
quality and regulatory systems
In-house laboratory
Products
Invest in infant nutrition, ingredients and
everyday dairy
Customers
Develop and manufacture specialised
products for global brands
Sustainability
Set industry-leading targets and roadmaps
DOING MILK DIFFERENTLY FOR A HEALTHIER WORLD
PAGE 12 & 13SUSTAINABILITY REPORT 2021

MATERIAL TOPICS
To improve as an organisation we
need to identify, understand and
closely manage our performance
on the economic, social and
environmental topics that are most
material to us and our stakeholders.
In FY20, we performed a full desktop
materiality assessment, reviewing
reports from suppliers, customers,
investors and other external
stakeholders to assess relevant
issues that can affect value.
Working from a long list of topics,
a shortlist was created and then
discussed with a group of key
internal stakeholders.
In FY21, we took into account our
internal and external contexts to
update this list and review the
ranking of our most material topics.
FOOD SAFETY
HEALTH, SAFETY AND WELLBEING OF EMPLOYEES
PROFITABILITY
CLIMATE CHANGE
WATER QUALITY
CUSTOMER DIVERSIFICATION
LAND, BIODIVERSITY AND REGENERATIVE AGRICULTURE
ANIMAL WELFARE
PRODUCT PROVENANCE AND TRACEABILITY
ORGANISATIONAL CAPABILITY AND CULTURE
PLANT-BASED PRODUCTS AND INNOVATION
PLASTIC PACKAGING, WASTE, REUSE AND RECYCLING
CYBER SECURITY
SOCIAL RESPONSIBILITY
NUTRITION
WHAT MATTERS MOST
TO OUR STAKEHOLDERS
AND TO OUR BUSINESS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
PAGE 14 & 15SUSTAINABILITY REPORT 2021

HOW WE CONTRIBUTE TO THE UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS (SDGs)
UN SDGsSDG TARGETHOW WE CONTRIBUTESYNLAIT SIP
1
PAGE
NO HUNGERHealthy farming68
Safe food64
Safe workplace46
Diversity and inclusion54
Water30
Climate24
Talent attraction and development50
Diversity and inclusion54
Safe workplace46
Cicular economy40
Climate24
Culture and community58
Healthy farming68
Sustainable supply74
Culture and community58
Welfare36
Sustainable supply74
Transparency78
2.4 - Ensure sustainable food production systems and implement resilient
agricultural practices that increase productivity and production, help maintain
ecosystems and strengthen capacity for adaptation to climate change
3.4 - Reduce premature mortality from non-communicable diseases through
prevention and treatment and promote mental health and well-being
5.5 - Ensure women’s full and effective participation and equal opportunities for
leadership at all levels of decision-making in political, economic, and public life
7.2 - Increase substantially the share of renewable energy in the global energy mix
12.5 - By 2030, substantially reduce waste generation through prevention,
reduction, recycling and reuse
12.6 - Encourage companies to adopt sustainable practices and to integrate
sustainability information into their reporting cycle
13.2 - Integrate climate change measures into national policies, strategies
and planning
15.2 - By 2020, promote sustainable management of all types of forests, halt
deforestation, restore degraded forests and increase afforestation
15.3 - Combat desertification, restore degraded land and soil, and strive to
achieve a land degradation-neutral world
17.17 - Encourage and promote effective public, public-private and civil society
partnerships, building on the experience and resourcing strategies
of partnerships
We ensure men and women have access to equal opportunities and proactively support
female leadership.
Our climate roadmap includes initiatives to replace fossil fuels with renewable energy.
We strive to build meaning into staff roles and provide development opportunities for all.
We aim to reduce our gender pay gap to below 5% and review our recruitment, remuneration and
development processes regularly.
We have a comprehensive health and safety management system that covers all our workers,
contractors and temporary staff.
We have targets to reduce manufacturing waste sent to landfill and improve our packaging sustainability.
We encourage key suppliers to improve their sustainability performance.
We measure and disclose our social and environmental results and these undergo external
third-party assessments.
Climate change is integrated into our strategy, risk management, planning and project
management processes.
Our Whakapuāwai programme is dedicated to restoring native ecosystems, waterways, and wetlands.
We partner with farmer suppliers, dairy organisations, universities and research institutes to improve
sustainability in dairy farming.
We collaborate with key suppliers and customers to advance our sustainability goals together.
We engage our employees, farmer suppliers, non-profits and local communities to expand the impact
of our Whakapuāwai programme.
We aim to protect animals and biodiversity on farm and improve soil health via sustainable
farming practices.
We aim to improve on-farm and off-farm water quality and wastewater treatment.
We aim to reduce on-farm and off-farm water usage and improve water efficiency.
We focus on improving the resilience and sustainability of farming systems via our
Lead With Pride
TM
programme.
We provide food which is safe, nutritious and of the highest quality.
We promote and encourage our employees’ mental health and wellbeing.
CLEAN
WATER AND
SANITATION
AFFORDABLE
AND CLEAN
ENERGY
DECENT WORK
AND ECONOMIC
GROWTH
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
CLIMATE ACTION
LIFE ON LAND
PARTNERSHIPS
FOR THE GOALS
GOOD HEALTH
AND WELLBEING
GENDER
EQUALITY
6.3 - Improve water quality by reducing pollution and minimizing release of
hazardous chemicals
6.4 - Substantially increase water-use efficiency across all sectors and ensure
sustainable withdrawals of freshwater
8.5 - Achieve full and productive employment and decent work for all women
and men, and equal pay for work of equal value
1
Sustainable Innovation Platform
PAGE 16 & 17
SUSTAINABILITY REPORT 2021

Synlait’s Made With Better Milk Whole Milk Powder.
Synlait is working with our farmer
suppliers to evolve New Zealand’s
reputation as a responsible and
sustainable producer of food.
Together we are harnessing our
natural capital to differentiate
ourselves and create value.
Made With Better Milk provides
our global base of food-producing
customers with opportunities to
add value to their products and
communicate the integrity and
provenance of the ingredients
they use.
The programme brings three
propositions together:
1. Milk used for our Made
With Better Milk products is
streamed from our highest
performing Lead With Pride™
farms.
2. Our modern processing
facilities have the industry’s
most ambitious sustainability
strategy being implemented.
3. In 2018 we placed
sustainability at the centre
of our corporate purpose –
in evidence by securing B
Corp™ certification in 2020.
MADE WITH
BETTER MILK
PRODUCT
CREATING VALUE
FROM OUR
SUSTAINABILITY
INVESTMENT
Consumers and customers
globally are demanding a new
approach to food and New
Zealand is well placed to play
a strong role in the supply of
sustainable food to the world.
The industrialisation of food
production over the past 70 years
has successfully fed billions of
people, but that has often come
at a great cost to the health of
our climate, soil, biodiversity,
water, and animals. But it is not
too late to turn over a new leaf,
to build back the respect that our
biosphere so desperately calls for.
Streaming milk from our Lead With
Pride™ farms provides our customers
with the level of assurance and
transparency they seek from their
supply chain. Lead With Pride™
farms are audited by an external
third party each year. Additionally,
we have state of the art plants
that are agile and capable
of segregating milk streams
throughout the factory that are
aimed at different customers and
products.
SUSTAINABILITY REPORT 2021PAGE 18 & 19

Looking out over the next several
years to 2028, 44 value propositions
have been identified, based on
our environmental and social
sustainability roadmaps.
The value propositions are in
different stages of development.
Some are available now; some are
in development but could be fast-
tracked within a few months to meet a
specific customer request, and others
are more long-term aspirations.
Our aim is to enable our customers
to meet their needs at a brand and/
or corporate level. For example, some
value propositions will help them
achieve their corporate commitments
and targets, such as reducing their
supply chain’s greenhouse gas
emissions. Other value propositions
will provide opportunities for their
brands to differentiate through unique
product claims and labels, such as
grass-fed certification.
Grass-fed certification
Although the grass-fed
herd may be perceived as
ubiquitous in New Zealand, not
all grass-fed claims are equal.
The provenance of Synlait’s
grass-fed milk is verified by
AsureQuality, a state-owned
enterprise that provides auditing
and assurance certification for
the New Zealand food sector.
The AsureQuality Grass-Fed
standard requires that each
farm is audited annually; that the
diet of cows consists of at least
95% grass; and that the milk
produced is segregated from
farm to factory.
Numerous studies have shown
that, compared to milk from
cows with total mixed-ration
(TMR) or grain-based diets,
the nutrient profile of grass-
fed milk has unique properties
that are beneficial for human
health. It has higher levels of
heart-healthy omega-3 fatty
acids, and up to five times the
levels of conjugated linoleic
acid (CLA), which is thought to
help regulate immune function,
maintain cardiovascular health,
and provide anti-inflammatory
properties.
Grass-fed milk has higher levels
of beta-carotene, an antioxidant
and a source of vitamin A,
which is important for a healthy
immune system, and eye and
skin health, as well as higher
levels of vitamin B2, which is
known to help reduce tiredness
and fatigue.
Palm free milk
The clearing of tropical forests
for palm oil plantations has
led to widespread loss of
biodiversity, soil degradation,
greenhouse gas emissions, and
human rights violations.
Palm Kernel Expeller (PKE), a by-
product of the palm oil industry,
has increasingly been fed to
dairy cows in the past few years,
becoming the largest imported
animal feed in New Zealand in
2018. At Synlait, we believe that
we should remove palm inputs
from our supply chain to prevent
global deforestation. Several
European studies have also
indicated a general consumer
preference for “palm free”
products.
We source palm free milk from
farmer suppliers that have
committed, through our Lead
With Pride™ programme, not to
use PKE. This milk is segregated
throughout our supply chain to
ensure its integrity. These farms
are audited annually to ensure
they are PKE free, and they also
provide documentation about
their feed plans. Furthermore,
we undertake testing to verify
that their raw milk is PKE free.
Farmer suppliers who are PKE
free are financially rewarded
with a dedicated incentive
payment.
Low GHG milk
Climate change is one of the
world’s greatest threats, and
livestock – including the cows
used for dairy farming – is
a significant contributor to
global greenhouse gas (GHG)
emissions.
Recent analysis of 55% of global
milk production, including the
major milk producing countries,
found the average New Zealand
dairy farm’s GHG footprint to
be 48% less than the average
of 18 countries studied. In FY21,
Synlait farmer suppliers had
an average GHG footprint of
0.84 kgCO
2
e per kg of Fat and
Protein Corrected Milk.
We actively work with our
farmer suppliers to help them
reduce on-farm emissions. Using
Overseer®, a complex modelling
tool, each farm has access to
the detailed profile of its GHG
footprint, including a breakdown
of emissions by source and type
of greenhouse gas. Additionally,
we require our Lead With Pride™
farmers to develop a detailed
GHG Management Plan. From
the 2020-2021 milk season,
they must also provide evidence
to show how GHG reduction
measures are effectively being
implemented on the farm, with
the impact of these measures
determining the amount of
incentive payments Synlait will
award them.
A CLOSER LOOK AT THREE
VALUE PROPOSITIONS
MADE WITH BETTER MILK INCLUDES EIGHT DIFFERENT CATEGORIES
WITH SEVERAL VALUE PROPOSITIONS IN EACH CATEGORY
CATEGORY 1
CATEGORY 5
CATEGORY 3
CATEGORY 7
CATEGORY 4
CATEGORY 8
CATEGORY 2
CATEGORY 6
HEALTH AND
NUTRITION
WASTE AND
PACKAGING
PEOPLE AND
LIVELIHOODS
PRODUCT SAFETY
AND QUALITY
CLIMATE
TRANSPARENCY
AND PROVENANCE
ANIMAL
WELLBEING
NATURE
PAGE 20 & 21SUSTAINABILITY REPORT 2021

NET POSITIVE
FOR THE PLANET
ENVIRONMENT
OUR AIM IS TO HAVE
A NET POSITIVE
IMPACT ON THE
PLANET.
Achieving this means taking stock of
our current environmental footprint
and implementing initiatives both
on-farm and off-farm to reduce
greenhouse gas (GHG) emissions,
eliminate water degradation,
transition from a linear to a circular
economy, procure sustainable
packaging and improve the welfare
of the animals and ecosystems we
depend on. We have developed
four Sustainable Innovation
Platforms that inform our actions for
environmental stewardship.
WATER
How we strive to eliminate
over-consumption and
degradation of water resources.
CIRCULAR ECONOMY
How we substantially reduce our
manufacturing and packaging
waste, and promote reusing and
recycling.
The Whakapuāwai nursery at Synlait
Dunsandel is planted with locally sourced
native trees and shrubs.
WELFARE
How we develop sustainable
and resilient farming systems
that respect and care for
animals, soil, and biodiversity.
CLIMATE
How we contribute to reducing
greenhouse emissions in line
with the Paris Agreement and
stay well below 2 ̊C of warming
by 2100, and ideally, 1.5 ̊C.
SUSTAINABILITY REPORT 2021PAGE 22 & 23

CLIMATE
Scientists are observing changes in
the Earth’s climate in every region
and across the whole climate
system. However, according to the
Sixth Assessment Report from the
Intergovernmental Panel on Climate
Change, strong and sustained
reductions in emissions of carbon
dioxide and other greenhouse
gases such as methane could limit
climate change.
The dairy industry is a significant
contributor to New Zealand’s
greenhouse gas footprint and
Synlait is committed to playing its
part in the country’s necessary
transition to a low carbon economy.
We believe that efficient and
profitable farming can align with
reducing GHG emissions. For
example, optimising nitrogen
fertiliser usage can reduce costs
and assist in the reduction of nitrous
oxide, which is a potent GHG.
In 2019 Synlait Dunsandel commissioned
New Zealand’s first large-scale electrode boiler to
provide process heat to the advanced dairy liquid
packaging facility.
OUR COMMITMENT
We have an ambitious energy
masterplan to reduce emissions
from our manufacturing
processes. We are transitioning
to renewable energy and will
not build another coal-fired
manufacturing facility.
Our roadmap towards a low-emitting
future requires us to, over time,
replace our coal use with biomass or
electricity, explore on-site electricity
generation and reduce our transport
emissions. In the short term, our
greatest emissions gains are
expected to be from transitioning
our boiler fuel from coal to biomass
and from maximising the utilisation
of our electrode boiler installed at
Synlait Dunsandel.
PAGE 24 & 25SUSTAINABILITY REPORT 2021

CLIMATE TARGETS
On-farm
30% reduction in Scope 3
GHG emissions from on-farm
purchased goods and services
1
,
per kilogram of milk solids, by
FY28 from a FY20 base year.
This Scope 3 target meets the
Science Based Targets initiative’s
(SBTi) criteria for ambitious value
chain goals, meaning it is in line
with current best practice.
Off-farm
45% reduction in absolute Scope
1 and 2 GHG emissions by FY28
from a FY20 base year.
2

We have reset our Scope 1 and 2
greenhouse gas emissions target
to align with the New Zealand
Government’s commitment to
keep warming to 1.5 ̊C versus pre-
industrial levels. The target was
approved by the Science Based
Targets initiative (SBTi) in April 2021.
FY21 INITIATIVES
Synlait Dunsandel Boiler
Two moves to biomass
A trial started in FY20 to replace
coal with biomass in Boiler Two at
Synlait Dunsandel has progressed to
become a fully-fledged permanent
project with wood pellets phased in
from April 2022.
The wood pellets are made from
waste wood shavings and sawdust.
A renewable form of energy, they
are sourced from New Zealand’s
plantation forests and timber
processing industry.
During the year, the Government
Investment in Decarbonising Industry
(GIDI) programme, managed by the
Energy Efficiency and Conservation
Authority (EECA), approved our
application to co-fund the capital
and operational funds required to
transition the boiler to wood pellets.
With the funding in place and capital
investment approved, we are working
with engineering consultants and
suppliers to install a bulk wood pellet
hopper, and to design and modify
safety systems for feeding wood
pellets instead of coal into Boiler
Two. The boiler currently accounts for
around 40% of our coal consumption.
Initially, the boiler will combust wood
pellets over a series of successive,
periodic campaigns. By 2026 we
expect to be exclusively burning
biomass in Boiler Two. Once fully
transitioned to wood pellets, this
project will save around 40,000
tonnes of CO
2
per annum.
In the longer term, coal will also
be phased out in Boilers One and
Three at Dunsandel. We are currently
exploring additional opportunities for
the sourcing of biomass in the
South Island.
Greenhouse gas on-farm
mitigation tool
We have been working with our
farmer suppliers since 2018 to
help them understand how their
management of the farm impacts on
GHG emissions. Each year, each farm
receives a report with their unique
emissions profile, based on their own
farm data and then modelled by the
Overseer® software.
To maintain our leading position
in managing reduction of GHG
emissions we have amended the way
we incentivise our Lead With Pride™
certified farmers. The incentives
have changed to recognise and
reward the implementation of
mitigation measures on the farm.
1
Scope 3 on-farm GHG emissions are the emissions from the farms that Synlait has a direct agreement with for the supply of
raw milk. In the 2020-2021 milk season, Synlait had 280 farmer suppliers, located in the Canterbury and Waikato regions.
2
The target boundary includes biogenic emissions and removals from bioenergy feedstocks.
Dryer packing carbon dioxide
In packing whole milk and
infant base powders we use a
combination of carbon dioxide (CO
2
)
and nitrogen (N
2
) gases to modify
the internal atmosphere in the bulk
bags. This displaces oxygen and
ensures optimum product shelf life
and quality. Synlait has undertaken
a project to optimise the gas mix
ratios in our bulk bag formats to
achieve the same specification of
residual oxygen whilst maintaining
shelf life, quality, and safety
standards. This project has saved at
least 680 tonnes of CO
2
gas across
our packers on Dryer 2 and Dryer 3.
Electrified forklifts
Synlait has a plan to replace its LPG-
fueled forklifts with battery-electric
forklifts. However, with a fleet of 88
forklifts across four sites, it is not
economically viable to replace all
at once, so they are being replaced
as age and condition require. By
the end of August 2021, 50% or 39
out of 77 inside operating forklifts
had been replaced with an electric
version. Of the 11 external operating
forklifts, three are electric and the
remainder run on diesel or LPG.
Synlait intends to fully electrify its
fleet of forklifts by the end of 2025.
To facilitate the incentive scheme,
we have developed a tool that
assesses the impact of various
emission reduction measures on
farm. As all farms are different, it is
not expected that farmers are able to
complete all the mitigations available.
It provides an opportunity for farms
to review their current situation and
to determine how they can further
reduce emissions, from the list of
possible mitigations provided. The
tool then automatically calculates the
level of incentive payment available
to the farmer. The more actions they
adopt, the more points they earn, and
the higher the incentive they are paid.
During FY21, we held several local
events with our community of farmer
suppliers to present the new tool
to them and gather their feedback.
Comments were considered and the
tool adjusted. The final version of
the tool and new incentive payment
will apply from the 2021/2022 milk
season.
Where mitigations are available
and make economic sense, it will
be expected these are more widely
adopted into farming practice over
time. Synlait recognises that dairy
farmers are facing more regulatory
reform, but incremental change is
aligned with the Synlait philosophy of
continual improvement.
By having an incentive payment as
well as a tool for GHG mitigations
we hope to empower our farmers to
actively manage the emissions from
their farms.
De-tuning our Pokeno gas boiler
The 25MW gas boiler installed at
Pokeno was designed to supply two
milk dryers. With the plant currently
operating one dryer, the boiler
has not been operating at peak
efficiency – often cycling off and
on and causing higher gas use and
maintenance requirements.
To reduce gas usage the boiler has
been detuned to 18MW, decreasing
its load from 38 tonnes per hour
to 27 tonnes. At the lower load the
boiler runs more consistently, more
efficiently and will save the company
substantially in gas consumption and
maintenance costs. Although it is yet
too early to confirm these numbers,
so far we have seen a reduction
of more than 10% in our gas
consumption. This is also expected
to have a positive impact on carbon
dioxide emissions in the coming year.
PAGE 26 & 27SUSTAINABILITY REPORT 2021

FY18FY19FY20FY21FY18-FY21
evolution
Total scope 3 on-farm GHG emissions*758,120 tCO
2
e727,574 tCO
2
e863,041 tCO
2
e931,028 tCO
2
e23%
- Canterbury*758,120 tCO
2
e727,574 tCO
2
e740,226 tCO
2
e800,522 tCO
2
e-
- Waikato*--122,815 tCO
2
e130,506 tCO
2
e-
On-farm GHG emissions per tonne of
milk solids*
11.92 tCO
2
e11.41 tCO
2
e11.25 tCO
2
e10.73 tCO
2
e-10%
FY18FY19FY20FY21FY18-FY21
evolution
Total scope 1 and 2 GHG emissions*121,512 tCO
2
e127,162 tCO
2
e142,413 tCO
2
e142,298 tCO
2
e17%
- Scope 1*114,589 tCO
2
e120,127 tCO
2
e133,609 tCO
2
e133,794 tCO
2
e17%
- Scope 2*6,923 tCO
2
e7,035 tCO
2
e8,804 tCO
2
e8,504 tCO
2
e23%
Scope 1 and 2 GHG emissions per tonne
of product*
0.87 tCO
2
e0.82 tCO
2
e0.74 tCO
2
e0.66 tCO
2
e-24%
Total energy consumption*
4
347,145 MWh377,086 MWh446,541 MWh436,365 MWh26%
Energy consumption per tonne of product*2,495 kWh2,425 kWh2,313 kWh2,031 kWh-19%
Total coal consumption
(Synlait Dunsandel only)*
54,287 tonnes56,807 tonnes56,889 tonnes56,467 tonnes4%
Coal consumption per tonne of product*0.39 tonnes0.37 tonnes0.29 tonnes0.26 tonnes-33%
On-farm GHG emissions
per tonne of milk solids*
Absolute scope 1 and 2
GHG emissions*
Scope 1 and 2 GHG emissions
per tonne of product*
FY22 ON-FARM PLANS
• Monitor uptake of the GHG tool and make improvements for FY23.
• Work on the feasibility and design of a trial to test a methane inhibitor in partnership with one of our farmer suppliers.
FY21 CLIMATE RESULTS – ON-FARMFY21 CLIMATE RESULTS – OFF-FARM
3
FY18
FY18
FY18
FY19
FY19
FY19
FY20
FY20FY20
FY21
FY21FY21
0.87 tCO₂e
0.82 tCO₂e
0.74 tCO₂e
0.66 tCO₂e
FY28
Target
FY28
Target
On-farm emissions by type*
CH₄: 65%
CO₂: 15%
N₂O: 20%
FY22 OFF-FARM PLANS
• Implement transition to wood pellets in Boiler Two at Synlait Dunsandel.
• Start the design and engineering work to optimise our electrode boiler.
3
Unless otherwise stated, off-farm climate results include all Synlait and Dairyworks manufacturing sites,
as well as leased warehouses where applicable.
4
This indicator includes all energy sources for our manufacturing and warehousing operations – electricity,
coal, natural gas, diesel and LPG. FY18-FY20 figures have been restated as we previously excluded LPG.
78,327
7.88
11.92 tCO₂e
11.41 tCO₂e
11.25 tCO₂e
10.73 tCO₂e
121,512 tCO₂e
127,162 tCO₂e
142,413 tCO₂e
142,298 tCO₂e
*
Indicates that data quality was reviewed by an independent third party.
For more information on our GHG emissions and calculation methodologies,
please refer to our FY21 GHG Inventory Report, published on our website.
*
Indicates that data quality was reviewed by an independent third party.
For more information on our GHG emissions and calculation methodologies,
please refer to our FY21 GHG Inventory Report, published on our website.
PAGE 28 & 29
SUSTAINABILITY REPORT 2021

Synlait staff have helped a number of Synlait milk
supplier's with riparian planting on their farms in
Canterbury and the Waikato.
WATER
Water is a scarce resource that
needs to be carefully managed,
and we know that farming can have
an impact on water availability as
well as quality. On-farm, our goal
is to help our farmer suppliers
optimise their water intake and
minimise water degradation, in
particular through nutrient leaching
and runoff. This allows the broader
scope of sediment and phosphorus
losses overland, which is a problem
especially in heavier sloped
Waikato soils. We work alongside
them to identify their water-related
risks and create farm environment
plans that mitigate these risks.
In our processing sites, our long-
term ambition is to adopt a circular
approach to water. This would mean
reusing a large proportion of water.
For the small amount that could
not be reused, we would treat and
clean the water to the same, if not
superior, quality level as when we
sourced it. We continuously seek
solutions to improve the treatment
of our wastewater, with sodium
and nitrogen being the two main
elements that we need to address.
PAGE 30 & 31SUSTAINABILITY REPORT 2021

WATER TARGETS
On-farm
20% reduction in water use per
kilogram of milk solids by 2028.
45% reduction in nitrogen loss to
waterways per kilogram of milk
solids by 2028.
Off-farm
20% reduction in water use per
kilogram of product by 2028.
20% reduction of nitrogen
discharge per kilogram of product
by 2028 (Synlait Dunsandel and
Pokeno only).
Sodium Adsorption Ratio (SAR)
of 10 (Synlait Dunsandel only).
FY21 INITIATIVES
Reducing nitrogen leaching on-farm
Nitrogen leaching, mainly from
cow urine, can be a cause of
water quality degradation. Synlait
partnered in 2020 with a farmer
supplier to trial a new technology
that can reduce nitrogen leaching
and promote grass growth. The
system automatically detects and
chemically treats urine patches in a
paddock. The trial included several
paddocks to measure pasture growth
and a lysimeter installation to test
the effect of different solutions on
nitrate leaching. Early results in 2021
indicated that the farm’s soil type
could be a limiting factor and reduce
the efficacy of the technology. We
have modified the treatment in line
with leaf analysis and decided to
extend the trial on both the paddocks
and lysimeter facility for another year
to confirm these results and continue
investigating the impact of various
nitrification inhibitors.
Supporting farmers to meet
the nitrogen fertiliser cap
From July 2021, a synthetic nitrogen
fertiliser threshold of 190 kilograms
per hectare per year will apply to
all grazed land, as part of the New
Zealand Government’s Essential
Freshwater policy. Under the new
regulations, farmers are required
to provide regional councils with
information regarding the application
rates of synthetic nitrogen per
hectare for the previous 12-month
period. We are providing specific
support for farmers who, in the past,
have been above this threshold.
Our Lead With Pride™ farmers are
prepared for this new requirement
as they already have an approved
Nutrient Management Plan, which is
revised annually, as well as relevant
nutrient budgets.
Tackling sodium discharges
The presence of sodium in
wastewater is a result of the use of
chemicals for the hygienic cleaning
of plant equipment. Synlait also
uses sodium for the lactoferrin
manufacturing process. Lactoferrin is
a natural protein present in cow’s milk
that Synlait produces as a high-value
ingredient for nutritional products.
The company has been developing
initiatives to reduce sodium at Synlait
Dunsandel as it impacts the soil
on the land where wastewater is
irrigated. A higher level of sodium in
irrigation water may lead to changes
in soil structure, which in turn can
affect infiltration rates and cause
ponding.
The three identified initiatives involve:
1. Reducing and recovering sodium
in the lactoferrin process.
2. Reducing the usage volume of
caustic cleaning chemicals.
3. Using alternative cleaning
chemicals, such as a potassium-
based product.
Across Synlait Dunsandel, our teams
are focused on cleaning process
optimisation which will essentially
result in reducing both chemical and
water consumption.
In the lactoferrin plant, careful
analysis of the process found that
more sodium chloride (salt) than
required was being added at the end
of each batch. This additional salt
was eliminated through a change in
automation, saving up to 30 tonnes
during the season. Recovery of
salt via membrane filtration is also
being investigated to reduce sodium
discharge by another 12% by FY23.
Site loss optimisation
In FY21 we conducted a high-level
review of milk and effluent discharges
to determine the quantum of milk lost
through flushing processes at Synlait
Dunsandel. Flushing occurs at the
end of each production run when
water is pushed through the milk silos
to prepare for the next run. We found
we could save more than 3,000m³
of milk per annum by adjusting the
pipe purges and automated flush and
purge timers. The systems have been
optimised to recover the milk without
impact on product or processes; the
result was a 1% gain in milk yield and
less effluent to be treated.
Recycling water at Synlait Pokeno
Synlait Pokeno is allowed to take
between 900 and 1,250 cubic
meters of water every 24 hours from
industrial bores. Our team focuses
on getting the wastewater treatment
right so they do not have to source
additional water from the bores.
Using reverse osmosis, process
water is cleaned and ‘polished’ to a
state that it can be put back through
the treated water system and reused
for production. That saves us from
having to treat bore water as well
as extra wastewater, which would
otherwise need to be pumped to the
municipal wastewater plant at a cost.
Improving wastewater
treatment and recovery
At Synlait Pokeno, a Sequencing
Batch Reactor (SBR) is used to
process wastewater. It generates
three types of outputs. The first
output is waste activated sludge,
which consists of special bacteria.
To avoid being sent to landfill, this
sludge is dewatered and then used
by a vermicomposting company
to feed their compost worms.
Vermicomposting produces a high-
quality compost that local farmers
can use to improve their soils.
The second output from the SBR
is treated wastewater. We are
investigating options to recover
this water, for example by treating
and sending it back in the process
system or by supplying neighbouring
businesses in Pokeno that need
water. The third output from the SBR
is DAF sludge, some of which is sent
to pig farmers as stock food (see the
Circular Economy section).
In the past year, Synlait Pokeno
has also installed an ammonia and
nitrate analyser to sample and
diagnose wastewater in real time.
By testing the wastewater flow, we
can see changes to ammonia and
nitrate levels in real time and make
informed decisions to adjust the SBR
programme as required. This enables
us to fast track the treatment, save
energy and optimise the system.
PAGE 32 & 33SUSTAINABILITY REPORT 2021

FY18FY19FY20FY21FY18-FY21
evolution
Total on-farm water consumption
(mainly for irrigation)*
6
-266,075,593 m
3
257,061,367m
3
N/AN/A
- Canterbury*-266,075,593 m
3
256,839,432m
3
N/AN/A
- Waikato*--221,935m
3
281,995m
3
27%
On-farm water consumption per kg of
milk solids*
-4.17m
3
3.35m
3
N/AN/A
Total on-farm nitrogen loss*2,621,975 kg2,428,443 kg2,679,658 kg2,755,742 kg5%
- Canterbury*2,621,975 kg2,428,443 kg2,274,582 kg2,312,105 kg-12%
- Waikato*--405,076 kg443,637 kg-
On-farm nitrogen loss per kg of milk
solids*
41g38g35g32g-23%
FY18FY19FY20FY21FY18-FY21
evolution
Total off-farm water consumption*1,927,484m
3
2,232,869m
3
2,823,454m
3
2,636,247m
3
37%
Off-farm water consumption
per tonne of product*
13.86m
3
14.36m
3
14.62m
3
12.27m
3
-11%
Water recovered and reused
in manufacturing operations
(Synlait Pokeno only)*
--17%27%-
Total nitrogen discharge
per tonne of product
(Synlait Dunsandel and Pokeno only)*
0.28kg0.32kg0.38kg0.31kg9%
90th percentile SAR
(Synlait Dunsandel only)*
13.1611.2413.6213.805%
On-farm water consumption
per kilogram of milk solids*
Off-farm water consumption
per tonne of product*
Off-farm nitrogen discharge
per tonne of product (Synlait
Dunsandel and Pokeno only)*
On-farm nitrogen loss per
kilogram of milk solids*
FY21 WATER RESULTS – ON-FARM
5
FY21 WATER RESULTS – OFF-FARM
7
FY22 ON-FARM PLANS
• Continue to monitor the nitrate leaching trial.
FY22 OFF-FARM PLANS
• Continue to trial solutions to recover salt and reduce sodium discharges.
• Identify further water efficiency and recovery opportunities.
100%
FY21
Waterways fenced to the stock-
exclusion standard of the New
Zealand Dairy Tomorrow Strategy*
FY19
FY19
FY19FY19
FY20
FY20
FY20FY20
FY21
FY21FY21
-
38g
0.32kg
3.35 m³
35g
32g
0.38kg
0.31kg
FY28
Target
FY18
FY18FY18
41g
FY28
Target
FY28
Target
FY28
Target
5
All indicators in this table are aligned with OVERSEER®’s reporting period, which is 1 July to 30 June.
6
Several factors affect the overall accuracy of our on-farm water consumption data. These factors include: missing data
from farms, the inability to distinguish between large blocks and individual farms in some water consents and irrigation
schemes, data recording gaps and spikes from water meters. In addition, milking shed or stock water usage is not recorded
on most farms and water usage from year to year varies significantly depending on the weather conditions. In FY21,
water consumption data for the Canterbury region was deemed too incomplete, therefore we decided not to disclose the
associated indicators. We will endeavour to improve the quality of our on-farm water consumption data in the next few years.
7
Unless otherwise stated, off-farm water results include all Synlait and Dairyworks manufacturing sites.
3.3423
11.10.22
4.17 m³
0.28kg
14.36 m³
13.86 m³
14.62 m³
12.27 m³
*
Indicates that data quality was reviewed by an independent third party.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 34 & 35
SUSTAINABILITY REPORT 2021

Cows walk along specifically designed and
maintained tracks to protect against lameness.
WELFARE
Our Welfare strategy aims to
protect and enhance life on land,
both below ground and above
ground, and includes all living
beings in the wider farm ecosystem.
More precisely, our strategy
focuses on three areas: animal
health and wellbeing, soil health
and biodiversity. These focus areas
are closely related to the concept
of regenerative agriculture, which is
gaining traction around the world,
although definitions and evaluative
processes differ from one company
to the other. Nevertheless,
organisations are beginning
to align on key objectives of
regenerative agriculture. These
key objectives include to measure
and improve soil health, which
is why Synlait has committed
to carrying out research in this
field. We are investing in on-field
research to gain a science-based
understanding of the impact of
regenerative agriculture.
PAGE 36 & 37SUSTAINABILITY REPORT 2021

FY21 INITIATIVES
Animal health and wellbeing
We have recently made significant
changes to our animal health and
welfare requirements. Farmer
suppliers will now monitor clear
welfare metrics such as mastitis,
lameness and damage to cows’ tails,
and this information will be collected
by trained auditors to enable data
benchmarking.
We have also worked with one key
customer over the past 12 months to
align the animal health and welfare
pillar in Lead With Pride™ with their
brand requirements. The farms that
supply this customer will have one
extra animal welfare inspection in
FY22, increasing to four inspections
per annum in FY23.
The auditors will all be PAACO
certified. Professional Animal
Auditor Certification Organisation
(PAACO) is an organisation that
provides animal welfare training and
certification credentials for auditors.
Internal training of our Milk Supply
team will also occur over the next
season to provide them with a better
understanding of animal wellbeing.
Soil health partnership
Synlait has been working over
the past two years with New
Zealand Crown Research Institute
AgResearch to better measure
and improve soil health, as part
of a wider ambition to explore the
potential benefits of regenerative
agriculture in New Zealand.
Two key observations contributed to
our decision to initiate this project.
First, the assessment of on-farm
soil health is often limited to
chemical measures of soil fertility.
Yet, to gain a more complete
picture of soil health, measures
of organic matter, physical and
biological properties should be
included. Secondly, regenerative
agriculture, which primarily aims to
improve soil health and biodiversity,
is gaining traction around the
world – and New Zealand farmers,
consumers, and regulators are
eager to understand its potential
benefits on the dairy sector.
In partnership with a group of
our farmer suppliers based in
Canterbury and Waikato, Synlait
and AgResearch have developed
a comprehensive soil health
measurement protocol as well
as a guidance tool that provides
recommendations to farmers when
their soil indicators are outside
their target range. In addition to the
farmers’ own insights, the guidance
tool was reviewed and enhanced
by the feedback of multiple New
Zealand soil scientists, experts,
and regenerative agriculture
practitioners.
This project will evolve into a full
five-year pilot study that will start
in FY22 with six of our farmer
suppliers. More information will be
disclosed in December 2021
.
Biodiversity for beneficial insects
Because of the strong alignment
with our Whakapuāwai programme,
Synlait has decided to join a five-
year project led by New Zealand
research organisation Plant and
Food Research, that will assess the
ecosystem services provided by
beneficial insects (i.e. insects that
contribute to pollination or pest
control) that are associated with
certain native plant species.
The project will monitor beneficial
insect diversity on multiple farms
in Canterbury, across the arable,
dairy, forestry and beef and sheep
industries.
The study aims to provide farmers
with evidence that within five years
of establishing native plantings,
beneficial insects will improve yields
and yield stability under variable
weather conditions. We expect this
project to provide us with valuable
science-backed guidance as to
which native plants to prioritise in
our Whakapuāwai programme.
Non-deforestation commitment
Land use change has caused the
decline of many of New Zealand’s
indigenous ecosystems and species.
To prevent further biodiversity loss,
Synlait has implemented a new land
conversion policy with its farmer
suppliers. From 1 June 2021, Synlait
will only accept new or increased
milk supply from farms that meet
District Plan regulations and
whose land has not been recently
converted from (i) a High Carbon
Stock area such as a native forest,
or (ii) a High Conservation Value
area such as a native bush, a native
tussock/grassland, a wetland, or
any protected area. Minimal levels
of conversion may be accepted if
considered as having a negligible
impact. Synlait is also in the process
of developing a policy regarding
the development of peatlands and
organic soils from unproductive
land to pasture – this policy will be
published in FY22.
FY21 WELFARE RESULTS
8
FY22 PLANS
• Complete the new animal wellbeing assessments and monitor progress in the participating farms.
• Continue investigating ways of supporting regenerative agriculture principles in New Zealand
and among our farmer suppliers.
Percentage of pasture in
cow feed as 30 June 2021*
9
Somatic cell count average*
FY19
FY20
FY21
152,700
148,219
146,218
FY18
155,000
Palm kernel expeller (PKE) free
Lead With Pride™ farms
10
68%82.7%76.2%
FY20CANTERBURYWAIKATO
8
With the exception of pasture data, all welfare indicators are for the milk season each year, from 1 June to 31 May.
9
This indicator is based on the pasture in diet when the cows are on the dairy platform. It does not take into
account the diet of the herd when they are off-platform during winter.
10
Information on PKE free farms is captured at the beginning, and not at the end, of the milk season.
*
Indicates that data quality was reviewed by an independent third party.
82%*
FY21
PAGE 38 & 39SUSTAINABILITY REPORT 2021

Synlait’s newly launched Swappa Bottle concept is
simple: Drink, Return, Repeat.
CIRCULAR
ECONOMY
In a circular economy, all biological
and technical materials are reused,
recovered or recycled back
endlessly into the production cycle.
By increasing the availability of
materials and reducing the cost
of disposal to landfill, shifting to
the circular model also presents
economic opportunities beyond
environmental and social benefits.
In particular, the use of plastics and
plastic pollution has been under
the spotlight and is pressuring
manufacturers to develop
alternative packaging solutions.
Synlait is on a path towards a
fully circular model in which our
operations will generate minimal
waste to landfill and our materials
will be kept in the economy and
out of the environment.
PAGE 40 & 41SUSTAINABILITY REPORT 2021

FY21 CIRCULAR ECONOMY RESULTS
11
FY22 PLANS
• Monitor the results of the Synlait Swappa Bottle trial and roll-out to additional supermarkets and locations.
• Start implementing Dairyworks’ sustainable packaging roadmap.
Reusable, recyclable or compostable
packaging sold, by weight*
15
Total non-hazardous
waste recycled or recovered*
FY18FY19FY20FY21FY18-FY21
evolution
Total waste produced*
12
4,296 MT5,249 MT8,242 MT6,744 MT57%
- Non-hazardous*3,838 MT4,665 MT7,930 MT6,425 MT67%
- Hazardous*458 MT584 MT312 MT319 MT-30%
Total waste production per tonne of
product*
31kg34kg43kg31kg2%
Total non-hazardous waste by type of
treatment*
3,838 MT4,665 MT7,930 MT6,425 MT67%
- Recycled*1,986 MT2,132 MT3,032 MT2,095 MT5%
- Recovered*
13
1,252 MT1,505 MT3,237 MT3,031 MT142%
- Landfilled*600 MT1,028 MT1,661 MT1,299 MT116%
Non-hazardous waste recycled*84%78%79%80%-5%
LCA sales coverage*
14
-45.1%50.6%69.5%-
FY19
FY20
FY21
78%
79%
80%
FY18
84%
FY28
Target
99.3%99.1%
FY20FY21
11
Unless otherwise stated, results include all Synlait and Dairyworks manufacturing sites, and leased warehouses where applicable.
12
The waste production increase over the FY18-21 period is mainly due to increased production and the inclusion of Dairyworks in our
reporting scope. Waste indicators were reviewed and now include Dissolved Air Flotation (DAF), Waste Activated Sludge (WAS) and whey.
These by-products were previously excluded as they are predominantly water. We now determine the solids percentage, and included
only this component in the re-stated FY18-21 waste numbers.
13
By “recovered”, we mean that the nutrients in the waste streams served a useful purpose and replaced other materials. This includes
DAF provided as stockfood, WAS provided for vermicomposting and whey applied to farmland as fertiliser. Synlait does not practice
“waste-to-energy”.
14
These are the sales (in value) generated by product categories for which an LCA was conducted. This indicator excludes Dairyworks’ sales.
15
This indicator excludes Dairyworks.
99
CIRCULAR
ECONOMY TARGETS
99% of total non-hazardous
manufacturing waste will be
diverted from landfill by 2028.
100% of product packaging
will be reusable, recyclable,
or compostable by 2025.
100% of our plastic milk bottles
will be composed of 100% recycled
and/or renewable bio-based plastic
by 2028.
FY21 INITIATIVES
Disrupting the market
with stainless steel
In a New Zealand first, we launched
our own Synlait branded fresh milk
in reusable stainless-steel bottles,
with the aim of disrupting traditional
milk packaging. We believe that by
providing consumers with choice we
can empower a nation to step away
from using plastic bottles at scale.
This project has been a year in
the making. Synlait Swappa Bottle
was made available to consumers
in October 2021, initially at two
supermarkets in Christchurch during
a six-week trial period. We have
been able to leverage our existing
fresh milk manufacturing assets
built at Synlait Dunsandel in 2018 to
manufacture Synlait Swappa Bottle.
The 1.5 litre bottles are filled,
labelled with a cardboard recyclable
sleeve, and sealed with a recyclable
tin lid and tamper-proof label. The
advantage of using stainless steel
over glass is the steel’s durability
and longer life span, as well as better
protection from light degradation.
Launched as a single SKU – standard
homogenised milk – the trial with
Foodstuffs South Island’s retail stores
has several goals but primarily aims to
see if consumers are willing to move
towards a circular model for milk. The
key steps are that they use, rinse and
return the reusable stainless-steel
bottles for them to be sterilised and
refilled at Synlait Dunsandel.
Life Cycle Analyses (LCAs)
In FY21 we continued using the
EcodEx software to assess the
environmental impact of our products
across their entire lifecycle, from the
extraction of raw materials to product
disposal. The impacts assessed are
GHG emissions, water consumption,
non-renewable energy and minerals,
land use, and eco-toxicity. So far, we
have completed LCAs for three of our
key product categories: consumer-
packaged infant formula cans, fresh
milk bottles and whole milk powder
bags. A fourth LCA for our anhydrous
milk fat (AMF) drums is also under
way. Finally, we have used the
EcodEx tool to make scenarios and
compare different packaging options,
helping us understand the type and
extent of the environmental benefits
achieved when making a change on
our products’ packaging.
Trialing new 25kg powder bags
One of our main packaging items is
the 25kg multi-wall bag that we use
for our bulk milk powders. Composed
of an outer paper bag and an inner
plastic liner, we explored various
options to improve its environmental
profile – looking at criteria such
as resource optimisation, recycled
content, and recyclability.
In FY21 we carried out trials in our
plants to test a couple of alternative
bags. The trial showed us that we
would not be able to use the option
with the most downgauged paper
liner due to quality and technical
constraints; but that we could still
transition to a bag with slightly less
paper (-8%), and a higher recycled
content (20%), than our current bag.
The paper is also FSC certified,
assuring us that it is sourced from
sustainably managed forests. The
change to the new bag will be
implemented during FY22.
Unfortunately, although technically
recyclable, the plastic liner is
difficult to recycle in practice as it
is contaminated with milk powder.
We are actively working with our
waste management provider to find
a facility in New Zealand that can
wash the liners, and therefore make
recycling possible.
Dairyworks’ sustainable
packaging roadmap
Cheese packaging is often made of
multiple layers of plastic materials
that are required to maintain product
quality and shelf life. For this reason,
improving the environmental profile
of cheese packaging is often quite
challenging.
In FY21, Dairyworks decided to
downgauge the plastic packaging of
two key products, a 1kg cheese block
and a 5kg grated cheese foodservice
pack. This will lead to a reduction of
22 tonnes of plastic per annum. The
team is looking at other opportunities
for packaging reduction in each of
the manufacturing lines.
Dairyworks and Synlait are working
together on a sustainable packaging
roadmap to collectively achieve
100% reusable, recyclable, or
compostable packaging by 2025.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 42 & 43
SUSTAINABILITY REPORT 2021

A HEALTHIER
SYNLAIT
PEOPLE
WE ARE CREATING
OPPORTUNITIES FOR
ALL TO THRIVE.
By building support for our ambition,
commitment, and actions, together
we can transform our industry,
benefit our country, and leave a
legacy for future generations.
Our commitment to sustainability
reaches throughout our team
members, farmer suppliers and the
wider community.
This section of the report focuses
on the four Sustainability Innovation
Platforms (SIPs) that underpin the
People pillar of our Sustainability
Strategy. They are:
TALENT ATTRACTION
AND DEVELOPMENT
The ways we recruit and develop
highly skilled people and create
a legacy of committed leaders to
transform our industry for
the better.
CULTURE
AND COMMUNITY
The ways we plan to make a
tangible contribution in the areas
where we work, uniting our
employees, suppliers, and local
communities around ecosystem
regeneration projects.
Process technicians at Synlait Dunsandel’s
Blending and Canning facility regularly carry out
quality checks.
DIVERSITY
AND INCLUSION
The ways we ensure the wellbeing
of our people by building a
positive workplace culture that
aligns with our values and appeals
to a diverse range of employees.
SAFE WORKPLACE
The ways we aim to achieve
integrated health, safety, and
wellness, with an aspiration of
zero injuries.
PAGE 44 & 45SUSTAINABILITY REPORT 2021PAGE 44 & 45

A warehouse operator prepares an order of fresh
milk and cream in the Synlait Dunsandel coolstore
for delivery to Foodstuffs South Island stores.
SAFE
WORKPLACE
A safe workplace is fundamental
to how we operate at Synlait and is
continuously being further developed.
Everyone Home Safe, Well Every Day
is our bottom line. This concept has
become holistic and extends beyond
physical safety, through incorporating
health and wellness. It is a non-
negotiable at Synlait that the mental
and physical well-being of our people
is being supported in addition to their
physical safety.
A safe workplace is the
responsibility of our people at all
levels of the business, including
senior leadership. To us at Synlait,
personal safety is about taking
ownership and responsibility,
developing the right behaviours,
and building appropriate
procedures, policies, and systems.
Over the last financial year, we
have evaluated our safety culture
and updated our health and safety
strategy at Synlait, engaging the
wider organisation in this process.
We are further prioritising health
and wellness, to ensure we are
going beyond meeting the needs
of our people.
PAGE 46 & 47SUSTAINABILITY REPORT 2021

SAFE WORKPLACE
TARGETS
100% of all health and safety
committee meetings are completed
on time.
100% of senior leadership “safety
walk and talks” are completed as
scheduled.
FY21 INITIATIVES
Health and safety culture review
After several years of improvement,
it was time to conduct an
independent review of our safety
culture, processes, and systems.
This was carried out alongside the
organisational, food safety and
quality culture reviews. The purpose
of these reviews was to drive a
united approach to the way we
work across Synlait to deliver on our
purpose: Doing Milk Differently For A
Healthier World. Several actions were
undertaken including:
• A safety perception survey across
all Synlait employees.
• A dozen focus groups with staff
from all levels.
• Over 20 individual interviews
with the executive team and key
senior leaders.
• Site walks.
• A review of health and safety
documentation.
Findings indicated that based on
the Bradley Curve (a safety maturity
model), our safety culture still needed
to be strengthened. An action plan
was developed to manage our
critical risks (see below) and health
and safety open days were held at
all sites to present the findings and
gather feedback. The open days
were well attended and fostered
valuable discussions around safety.
Managing critical risks
A comprehensive improvement
plan has been developed for the
next two to three years focused
on managing our critical risks and
driving our safety culture towards a
more interdependent state. One of
the first steps taken was to align on
the definition of our critical risks. At
Synlait, a critical risk is an event that
can kill or permanently disable one
or more people. We have defined
eight high level critical risks in
our organisation: vehicles, mobile
plant and pedestrian interaction;
hazardous substances; critical lift,
drop or collapse; fire, explosion and
thermal energy; electricity; working
at heights; machinery; and confined
space. Our newly developed Critical
Risk Management Standard and
Framework ensures the ongoing
management of our greatest risks are
clear and robust. We are progressing
process safety methodology and
have programme teams set to
manage the ongoing development.
Our next step is to develop risk
analyses, commonly called safety
bowties, to ensure we have a deep
understanding of these critical risks,
the right controls in place to prevent
them from occurring, as well as
appropriate measures to keep our
people safe if an event does occur.
Health and wellbeing
Beyond our existing network of
mental health advocates, we have
worked on three initiatives to
improve the health and wellbeing
of our staff. Firstly, we developed a
wellbeing bowtie to identify wellness-
related risks, preventive measures,
and remediation actions. Secondly,
we partnered with Southern Cross
Healthcare, to provide access to
their Being Well online platform
for employees. and Finally, an
occupational health nurse will be
engaged during FY22 at Synlait
Dunsandel to perform routine health
checks for our staff, such as hearing
and lung function assessments, and
support our COVID-19 initiatives.
COVID-19
Our goal at Synlait is to keep our
people safe, keep their families
safe, keep our facilities running,
and keep COVID-19 away – not just
for us, but for all New Zealanders.
Our response is managed by
Synlait’s COVID-19 Management
Team, which meets regularly and
assesses the company’s risk profile
against Government’s public health
measures. Synlait has created, and
implemented, its own versions of
the Alert Level Frame and COVID-19
Protection Framework to mirror the
Government’s response. Measures
include, limiting all site access to
teams essential to running and
maintaining operations, daily health
declarations and temperature
checking as a prerequisite for
anyone entering our sites, increased
hygienic cleaning and sanitation
practices across non-production
workspaces, and extended advanced
personal protection equipment
and physical distancing controls. In
addition to this, Synlait is consulting
with staff and contractors on the
implementation of rapid antigen
testing and a vaccination policy.
FY21 SAFE WORKPLACE RESULTS¹
FY22 PLANS
• Improve leadership safety training and development.
• Continue progress on critical risk management.
• Identify opportunities to further support mental wellbeing.
Health and safety actions
completed before due date*
1
Safe Workplace results exclude Synlait China.
2
When employees log a health and safety risk onto MySafety, our health and safety portal, actions are assigned to the
relevant staff with a due date.
3
Results are for Dairyworks' Christchurch site only, and exclude Talbot Forest Cheese. A new health and safety reporting
system was recently introduced at Talbot Forest Cheese so we expect to be able to include the site's data from FY22.
FY21
Health and safety actions completed before due date - Group*58%
- Synlait*²60%
- Dairyworks*
3
39%
Employee fatalities - Group*0
Health & Safety Committee meetings held as planned - Group*95%
- Synlait*95%
- Dairyworks*100%
Note: This year, we have decided to shift from TRIFR (reported in previous years) to more lagging safety indicators.
Although we acknowledge TRIFR is a widely used safety metric, we do not believe it accurately captures the safety
culture, level of controlled risk or performance of an organisation. To replace a TRIFR, we have introduced two new
metrics: the percentage of health and safety committee meetings held, and the percentage of actions completed on time.
60%39%
SYNLAITDAIRYWORKS
*
Indicates that data quality was reviewed by an independent third party.
PAGE 48 & 49SUSTAINABILITY REPORT 2021

The use of social collaboration tools keeps Synlait
staff connected across our entire business.
TALENT
ATTRACTION AND
DEVELOPMENT
Synlait is committed to building
an engaged and empowered
workforce. We believe that by
investing in our people we will
attract the diverse and innovative
workforce we need to exceed
our customers’ expectations
today and into the future. We are
constantly evaluating the support,
opportunities, and environment
our employees need to be
successful. Over the last
financial year, we have focused
on reviewing and renewing our
approach to talent development
and organisational culture to
ensure it is fit for purpose and
harnesses the full potential and
capability of our people.
PAGE 50 & 51SUSTAINABILITY REPORT 2021

FY21 INITIATIVES
Engagement survey
Our quarterly engagement surveys
help us keep our finger on the pulse
to identify what’s working well and
what we need to improve. This year
our engagement ratio increased from
5.20 to 5.30 polling in the top 20%
of organizations in the Australia, New
Zealand, and Oceania region (Gallup
Database). Our executive leadership
team continues to meet regularly to
discuss how to drive engagement
higher, and we actively encourage
our leaders to use their engagement
survey results to analyse the current
work environment, encourage
discussion, and build actionable steps
to improve the work environment.
Culture transformation
2021 was a challenging year for
Synlait, and we recognised early on
that if want to achieve our objectives
and prosper in a more volatile,
uncertain, and complex world, we
need to strengthen our culture.
Therefore, this year has seen us take
a critical look at our safety, quality
and organisational culture.
We empowered our people to
share their views through surveys,
interviews and focus groups about
our culture so they can help shape
our future. With high levels of
engagement in the process, we are
now able to leverage our peoples’
views and insights about our culture
to inform our culture transformation
planning. The results showed us that
our purpose of Doing Milk Differently
For a Healthier World resonates with
many of our staff but lacks a direct
line of sight with day-to-day work
activities. It also indicated that we
need to improve how we collaborate
across teams, connect with
customers and empower our people
to act through removing barriers to
ownership and accountability.
This process enabled our senior
leaders to gain insight into the needs
of our business and the expectations
of our people to help catalyse faster
decision making, drive innovation
and empower our people to act
and progress closer towards our
purpose and ambition. We believe
to achieve this we need to transform
our organization by deepening the
connection between our company,
our customers and suppliers, our
teams and our people and ensuring
we have the structures, systems, and
processes in place to support high
performance. To make this a reality in
the next year we will rally around our
purpose, connecting employees to
leaders so they feel more informed,
connected, and inspired. We will also
remove barriers to cross functional
work across the business, embed
great leadership and ensure how
we attract and select talent, manage
performance, and motivate our people
promotes and rewards ownership,
collaboration, and inclusion.
Embedding great leadership
At Synlait we offer a range of
professional, management and
leadership development programmes
for both individuals and teams to
equip our leaders to inspire and lead
effectively. These include online
courses, face to face workshops,
and publicly available programmes
across a range of topics including
accelerating change and transition,
commercial acumen, situational
leadership and Gallup’s “boss to a
coach” programme.
Internal feedback from our
managers and people has revealed
opportunities for us to improve
how we support our first-time
leaders, particularly those that are
internally promoted within Synlait.
In response, we have developed
an internally delivered ‘Leadership
Essentials’ programme that will
commence in January 2022. This
eight-month programme will provide
first time leaders with the essential
management and leadership skills
through face-to-face training, peer
learning and ongoing coaching to
fuel growth in our people and shape
a passionate, innovative, inclusive
and performance focused culture.
Future Leaders Programme
Our Future Leaders programme grew
in FY21 with two new Future Leaders
starting the programme in January
2021. With the programme now in its
third year, it was timely to conduct
a review to ensure the programme
was identifying and equipping high
potential graduates for success in
high growth and operations roles
at Synlait.
As an outcome the programme has
been revised to:
1. Fast track Future Leaders
knowledge of the dairy industry
and dairy processing during the
first year by completing rotations
in roles that relate to how Synlait
plans, sources, processes,
delivers milk to our customers.
2. Allow for tailored career
opportunities in years two and
three, through completing two
or three, six-to-nine-month
rotations specifically aligned to
areas of the business they will
have the most impact and are
passionate about; and
3. Foster a greater sense of
connection, community and
belonging between Future
Leaders by participating in
bimonthly connection sessions.
FY21 TALENT ATTRACTION AND DEVELOPMENT RESULTS
FY22 PLANS
• Maintain or improve engagement ratio.
• Strengthen our people’s connection to Doing Milk Differently for a Healthier World
by recognising and celebrating meaning and positive impact of work.
• Remove barriers to cross functional working.
• Promote greater ownership and accountability.
• Launch Leadership Essentials programme for frontline, first time leaders.
Employee turnover rate – Group*
13%
FY20
28%
FY21
6
10%
FY19
18%
FY18
FY18FY19FY20FY21FY18-FY21
evolution
Engagement ratio
(ratio of engaged staff to actively disengaged staff)*4
3.75:13.58:15.2:15.3:1-
Employee turnover rate*
- Synlait*18%10%13%22%17%
- Dairyworks*5---48%-
4
Excludes Synlait China and Dairyworks.
5
The high turnover rate at Dairyworks is due to the Talbot Forest Cheese site in Temuka being temporarily
shut down for a period of two years, as well as certain functions being outsourced instead of internalised.
The increase in turnover at Synlait is mainly the effect of the restructuring process launched in November 2020.
6
The FY21 turnover rate is a weighted average across both Synlait and Dairyworks.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 52 & 53
SUSTAINABILITY REPORT 2021

The Synlait Dunsandel cafe provides a comfortable
place for staff to connect during their breaks.
DIVERSITY
AND INCLUSION
Synlait aspires to employ and
embrace a diverse range of talents
to reflect the diversity of the people
and communities in the markets
that we serve. We want to be a
place where everyone feels valued
and respected, where our people
feel that their uniqueness and
contribution is valued and that
they belong. When all of these
things are happening, we will
have a workplace where our
people feel empowered and can
grow, helping us be creative and
agile, reduce risk and driving
better business outcomes.
PAGE 54 & 55SUSTAINABILITY REPORT 2021

FY21 DIVERSITY AND INCLUSION RESULTS
7
FY22 PLANS
• Initiate the setup of employee networks sponsored by senior executives, designed to
connect, support and give voice to all employees.
• Organise a minimum of six diversity celebration events, celebrating the diversity of our
workforce across thought, gender, and ethnicity.
• Expand our Leadership curriculum training programme to include ‘Respect in the Workplace’,
a module that raises awareness and educates our leaders for the creation of a respectful
and psychologically safe workplace, free from bullying, harassment, and discrimination.
DIVERSITY AND
INCLUSION TARGETS
<5% Gender pay gap
achieved by 2023.
40-50% Mix of women who
hold leadership positions
(team leads, supervisors,
specialists and above).
0 regretted losses of
high-potential women.
FY21 INITIATIVES
Our workplace policies to
support diversity and inclusion
During FY21 we continued to support
our workplace policies designed
to encourage greater diversity and
inclusion at Synlait.
Matuā, our parental leave policy, is
unique in New Zealand as it includes
full pay for maternity leave for the
primary carer for 26 weeks, two
weeks of paid leave for partners,
and payment of a childcare subsidy
from birth to three years, when the
government subsidy applies. Forty-
one primary carers have benefited
from full pay for 26 weeks and over
30 families are benefiting from the
childcare subsidy. Matuā plays a core
role in ensuring Synlait is an attractive
place to work for parents.
Our support continues for Tāwariwari,
our flexible working policy, that
formalises flexible working to support
a range of situations including part
time work, job sharing, and career
breaks. The Synlait Way of Working
allows our employees to choose
times, locations, and spaces to work
in that best suit their daily work
programme. In FY22, we will be
updating these policies to ensure they
align with the requirements of our new
organisational structure.
Unconscious bias training
Alongside our policies to support a
diverse and inclusive workforce, we
have piloted an unconscious bias
e-learning module that has been
accessible to all staff in FY21. The
uptake of this was minimal so as we
move forward into the next financial
year, we will look to integrate this into
our face-to-face leadership training
to encourage diverse and inclusive
thinking and arm our people with the
tools and strategies to mitigate bias.
Diversity and inclusion events
Over the course of the year, we also
celebrated Maōri Language Week,
Diwali, and Chinese New Year. These
colourful cultural celebrations brought
to life through the commitment
and engagement of our people,
showcased different cultures
language, dress, food and customs
to heighten understanding and
awareness.
Gender pay gap – Synlait only* Women as managers or
senior specialists – Group*
FY18
FY19
FY20
FY21
8
34%
36%
37%
37%
FY18FY19FY20FY21FY18-FY21
evolution
Gender pay gap*
- Synlait*18.3%13.1%12.5%10.2%-44%
- Dairyworks*---31.5%-
Women as managers or senior specialists - Group*---37%-
- Synlait*34%36%37%36%7%
- Dairyworks*---38%-
Women in senior leadership team - Group*---24%-
- Synlait*14%14%25%31%115%
- Dairyworks*---0%-
FY18
FY19
FY20
FY21
18.3%
13.1%
12.5%
10.2%
FY23
Target
7
All Diversity and inclusion results exclude Synlait China.
8
The FY21 percentage is a weighted average across both Synlait and Dairyworks. Please note that
Dairyworks and Synlait use different HR systems so the methodology to calculate this indicator was different.
<5
*
Indicates that data quality was reviewed by an independent third party.
PAGE 56 & 57
SUSTAINABILITY REPORT 2021

Almost 80,000 plants went into the ground
during the 2021 planting season as part of our
Whakapuāwai programme.
CULTURE AND
COMMUNITY
The backbone of our community
outreach programme is our
Whakapuāwai initiative, now in its
second year. Whakapuāwai roughly
means ‘everything thriving’, which
underpins our purpose of Doing Milk
Differently for a Healthier World.
Whakapuāwai is supported by a
plant nursery that we have built next
to our Dunsandel site. The nursery
provides native plants for:
• A 15-hectare area adjacent to
the nursery, which we plan to
extensively landscape and plant
so that it becomes an area our
employees can use to walk,
exercise and meet;
• Our farmer suppliers, who
aim to protect and restore
natural ecosystems on their
properties, such as waterways
and wetlands;
• Our local communities, who
also wish to restore areas of
shared value.
Whakapuāwai is an important
factor in our cultural development.
The project relies on high levels
of employee involvement and
participation. Synlait employees
can use one paid day a year to
contribute to the programme. It
is a way for them to engage with
their communities and contribute
to environmental restoration in the
places where they live and work.
PAGE 58 & 59SUSTAINABILITY REPORT 2021

FY21 CULTURE AND COMMUNITY RESULTS
FY22 PLANS
• Review the model of our Whakapuāwai programme, with the goal of
further improving scalability and efficiency of the planting experience.
CULTURE AND
COMMUNITY TARGETS
80% staff participation in
Whakapuāwai.
FY21 INITIATIVES
Synlait Dunsandel nursery
The nursery was completed in
December 2020. It has been
designed to facilitate the manoeuvre
of plants by the nursery team in an
ergonomic and efficient way, for
example, seedlings are laid out on
raised benches instead of on the
ground. It has also been set up to be
observed and controlled remotely,
including for irrigation.
The nursery takes young seedlings
from growers and grows them
until they are ready to be planted
out. They are then potted using an
automated tray filler and dibbler that
enables the team to pot seedlings
three to four times faster than if
doing it manually. The nursery grew
a total of 80,000 seedlings during
FY21. However, due to this year’s
disappointing financial performance,
we have had to reduce volumes to
40,000 seedlings for the next season.
All new Synlait employees visit the
Whakapuāwai nursery as part of their
induction programme. This year, 168
seedlings were planted in the 15ha
land adjacent to the nursery thanks to
our new starters.
Farms
We are on a continuous learning
process as our planting programme
with our farmer suppliers evolves.
Firstly, we have recognised that the
end-to-end process of successfully
growing seedlings to planting them
out requires specialised expertise.
We have learnt that high seedling
survival and growth rates require
good site preparation, species
selection, quality planting and
effective maintenance. We also
realised that the farmers needed
more support from Synlait prior to the
planting, to appropriately set up and
prepare their sites. Finally, in some
cases, the planting happened to be
quite physically demanding for our
volunteer employees.
To address these challenges, we
engaged Brailsfords, a local company
specialised in the design and
development of native plantings on
farms. Brailsfords has streamlined the
process and significantly improved
the planting experience for all the
stakeholders involved. They identify
the best sites on farm, define the
ideal position of the different species,
and prepare the planting using a
range of specialist cultivation tools.
They also use a colour-coding system
to ensure the right species are
planted in the right positions.
Brailsfords has also developed and
patented a guarding system for
seedlings, SeedlingSock™ (patent
pending), which has led to further
efficiency gains in the planting
process. Last year, we had used
a cardboard wrap and weed mat,
which our employees had to install
with each individual plant. The new
socking system means the seedlings
are pre-wrapped and ready to be
put into the ground as they are. The
system is highly efficient – a team of
four can pre-sock between 3,000 and
5,000 seedlings in just one day. The
socks are made of plastic, which we
recognise are not the ideal material to
put out on farm, but the design makes
them more resistant to wind and rain,
and also better supports aftercare
processes. As the plants grow, the
Seedling Socks will be removed and
packaged for recycling.
Last year, COVID-19 delayed our tree
planting schedule, but our employee
and farmer volunteers still managed to
actively put plants into the ground. A
total of 10 Synlait farms were involved
in the programme across the Spring
2020 and Autumn 2021 planting
seasons. We also organised a ‘Click
and Collect’ system for our farmers
to collect plants from our nursery for
free, for them to plant themselves. The
flooding in Canterbury in May 2021
unfortunately impacted our planting
effort, which means we will need to
spend time next year on remediation
in some of the affected farms.
Community
Because most of the Whakapuāwai
planting is organised in the
South Island, we wanted to seek
opportunities in the North Island
for our employees in Pokeno,
Auckland and Palmerston North to
have a similar planting experience.
In FY21, the teams there were able
to contribute to local community
planting projects, including through
our partnership with the non-profit
organisation Trees That Count.
Conversely, in the South Island,
members of our local communities
participated in our on-farm plantings.
Several Christchurch schools and
Synlait business partners provided
volunteers to plant alongside our
employees.
FY19FY20FY21FY19-FY21
evolution
Investment in Whakapuāwai*$365,758$953,876$559,63053%
Staff participation in Whakapuāwai Day*
9
--22%-
Total number of native trees and shrubs supplied by the nursery*--54,290-
- to the Dunsandel Whakapuāwai area*--168
- to Synlait dairy farms*--52,802-
- to other areas in the community*--1,320-
9
The scope of this indicator is limited to Synlait Dunsandel as the Whakapuāwai programme is not yet available to employees based in
other sites. Staff participation is calculated based on time spent by our employees - not on the number of participants. Finally, as our
reporting system was implemented during the Autumn planting season, we have not captured any data from the Spring planting season.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 60 & 61
SUSTAINABILITY REPORT 2021

WORLD CLASS
VALUE CHAIN
ENTERPRISE
WE PROVIDE MILK
NUTRITION FOR
CONSUMERS AROUND
THE WORLD.
As demand for our products continue
to increase, we have invested in
accreditations and certifications
that provide us with a competitive
advantage and reputational
credibility.
Our customers can trust our
commitment to the highest standards
of food production and delivery.
The Sustainable Innovation Platforms
under this section are:
HEALTHY FARMING
The ways we work hand in hand
with our farmer suppliers to
achieve long term, sustainable
milk production. This begins
with Lead With Pride™, a
transformational programme that
guarantees the integrity of our
milk and the way it is produced.
TRANSPARENCY
The ways we seek success
beyond profit and undertake
processes to measure our
sustainability performance
against global standards.
Palletising Process Technicians at Synlait
Auckland prepare the robot to place finished
product cartons on an empty pallet.
SUSTAINABLE
SUPPLY
The ways we ensure that
throughout our supply chain our
products meet our sustainability
objectives and have a positive
impact on people and the planet.
SAFE FOOD
The ways we ensure our
processing systems meet the
highest food quality and safety
standards. Our approach to
nutrient production enables
our customers to confidently
differentiate their products based
on quality and provenance.
SUSTAINABILITY REPORT 2021PAGE 62 & 63

At Synlait’s Research and Development Centre
in Palmerston North a Technician measures the
viscosity of Ambient Drinking Yoghurt, a product
currently under development.
SAFE FOOD
Consumers are increasingly
becoming conscious of the origin
and provenance of the food they
buy. More than ever, consumers
require transparency and disclosure
from brands they trust. Over the past
18 months or more, the pandemic
has served to enhance consumer
interest in food safety and quality.
At Synlait, our mantra is Everyone
Owns Quality. Every day we require
complete supply chain integrity –
from fresh milk processing for South
Island consumers to packaging
complex blends of infant formula
into cans for international markets.
Rightfully, we take a no compromise
approach to product quality and
consumer safety with dedicated
in-house laboratory testing and
international regulatory expertise.
PAGE 64 & 65SUSTAINABILITY REPORT 2021

FY21 INITIATIVES
‘Right first time’ manufacturing is the
best guarantee for satisfied customers
and shareholders. To support this,
our people receive the relevant food
safety and quality training required
to perform their roles with care and
confidence.
Our Risk Management Programmes
comprehensively cover on-farm
practices, milk collection, material
sourcing, manufacturing processes,
testing, warehousing, and logistics.
We have mandatory testing to prove
the absence of microbial and chemical
contaminants. Every can of finished
infant formula is x-rayed to confirm the
content meets specification. We have
an independent certified, dedicated
chemistry and microbiology laboratory
at our Synlait Dunsandel site, as well
as in-process facilities at each Synlait
manufacturing sites (Dunsandel,
Pokeno and Auckland). All analyses
performed are ISO17025 certified and
IANZ accredited. All processes are
audited by an independent third party
through a minimum of four site visits
a year.
Food safety and
quality culture review
In FY21 we conducted a review of
our food safety and quality culture,
alongside the culture check and
safety review (see A Healthier Synlait).
We used a similar methodology of
one-to-one interviews and focus
groups. Having completed the
discovery phase, the food quality
team worked on an action plan.
Open days were held at our sites in
Auckland, Pokeno and Dunsandel, to
show and discuss findings with staff,
and introduce the next steps of the
quality culture review.
FSSC 22000 certification
We maintained our FSSC 22000
certification for Synlait Dunsandel
(with the exception of our advanced
dairy liquid packaging facility) and
recertified this quality standard in
May 2021. The next phase is to
implement FSSC 22000 at Synlait
Auckland and Synlait Pokeno. The
certification process is planned to
start there in FY22. We are confident
the foundations exist at both
sites and that our existing quality
assurance standards comply with
FSSC. Achieving certification is about
making sure we meet clauses such as
management responsibility, visibility,
and having the right cadence of food
quality and safety meetings.
Our Dairyworks team is also aiming
to achieve FSSC 22000 certification
at the Christchurch site. During the
past year we have worked on the
first stage of the audit phase and
are preparing for the second stage
in FY22, which will be focused on
creating a plan to achieve our food
safety goals.
Progress on SynQ and MyQuality
SynQ was a project to collate all
the systems and methods we use
to develop, manufacture, and
deliver safe food products for our
customers. The SynQ project began
in September 2019 and has now
become a ‘business as usual’ system.
A SynQ manual has been completed
and handed back to the Quality
Assurance team.
MyQuality, an online quality event
recording system, has been
operating since December 2019 and
is now engrained into the company
and part of our daily quality activity.
Product traceability
Tracking our milk from the farm gate
through our processing to the end
product in a can or bottle not only
meets regulatory requirements but
assures our customers that it came
from where the label says.
For raw milk to finished product we
need a system that can maintain
full traceability. We are moving from
a previously manual system to a
SAP-based system that provides
an electronic declaration solution
meeting our compliance obligations.
All dairy products require a relevant
EDec (eligibility declaration) attached
so the Ministry for Primary Industries
has full visibility of where products
are produced and distributed.
The ability to track the source of the
milk also enables the verification of
our milk streams, such as a2 milk,
or milk from our Lead With Pride™
certified farms destined to our Made
With Better Milk programme. For
The a2 Milk Company we stream
a2 milk and have a2 visibility all the
way through the process. Each milk
tanker arriving at Synlait Dunsandel
or Synlait Pokeno holds up to five
farms’ output of daily milk – around
1,000L per farm. We keep a record of
which silo each tankerload goes into
so every can of infant milk powder
can be traced back to base powder,
which can then be traced back to
the wet mix batch which, finally, can
be traced back to the farm.
FY21 SAFE FOOD RESULTS
FY22 PLANS
• Adapting our quality management systems to meet the requirements of our new multinational
customer for nutritional products.
• Aligning the quality team to Synlait’s new matrix organisational structure.
• Preparing Synlait Auckland, Synlait Pokeno and Dairyworks Christchurch for FSSC 22000 certification.
Percentage of production covered
by a 2nd or 3rd party assessed
HACCP programme – Group*
100%
FY21
FY18FY19FY20FY21
Number of consumer recalls for food safety reasons*
- Synlait*0000
- Dairyworks*¹0011
1
In FY20, Talbot Forest Cheese undertook a precautionary recall of a range of consumer products due to
the detection of Listeria monocytogenes in samples of these products. In FY21, Dairyworks made a recall
of a Deep South ice cream product due to an undeclared allergen - an ingredient was changed, and the
packaging was updated before the previous ingredient was effectively phased out from the product.
Audits completed for critical
and high-risk suppliers who
were due for their three-yearly
audit (excluding Dairyworks)*
Note: We changed our supplier
classification system and audit
procedures between FY19 and FY20.
In FY19 we counted all audits of raw
materials and packaging suppliers.
From FY20 onwards we will only count
audits of critical and high-risk suppliers,
which are meant to be audited once
every three years. Audit schedules
were disrupted during both FY20 and
FY21 due to COVID-19, which made it
impossible for our auditors to travel and
visit suppliers outside of New Zealand.
FY19
FY20
FY21
22.2%
26.3%
Percentage of production
covered by FSSC 22000
– Group*
Note: The slight decrease in
percentage is due to our production
volume increasing with the inclusion of
Dairyworks. FSSC 22000 certification of
Dairyworks’ Christchurch site is under
way and expected to be achieved by
the end of the 2021 calendar year.
FY20
FY21
74%36.2%
65%
*
Indicates that data quality was reviewed by an independent third party.
PAGE 66 & 67
SUSTAINABILITY REPORT 2021

A Synlait Lead With Pride™ certified farm in
Canterbury.
HEALTHY
FARMING
Over the past four years, the
number of farms that supply us
with milk has increased by 44%,
reaching a total of 280 in FY21.
Despite this growth, we know our
farmer suppliers by name, not
as a number, and take pride in
strengthening our relationships
with them through regular farm
visits throughout the year.
We often describe our farmer
suppliers as the most progressive
and innovative farmers of New
Zealand. Together, we aim to lead
the industry and uplift the social,
animal welfare and environmental
standards of dairy farming. Our
Lead With Pride™ programme,
which was created in 2013, had
exactly that goal – and it has since
then become the cornerstone of
our sustainable farming strategy.
PAGE 68 & 69SUSTAINABILITY REPORT 2021

Farmer suppliers who are Lead
With Pride™ certified take a holistic
approach to all aspects of farming.
The programme attracts farmers
who want to adhere to the highest
standards in terms of milk quality,
animal welfare, environmental
protection, and social responsibility.
In return, Synlait rewards them with a
financial incentive. Providing financial
support is essential to enable our
farmer suppliers to improve their
practices. Because Lead With Pride™
is our own standard, we are able to
introduce or modify the incentive
payments to reflect our priorities.
For example, in FY19 we introduced a
new incentive for farms that remove
palm kernel expeller from their feed.
Or, more recently, we transitioned our
greenhouse gas incentive payment
to encourage the implementation of
emissions reduction measures.
Synlait also provides our farmer
suppliers with technical support,
including through the development
of tools and guidance documents,
and the expertise of our team of
environmental advisors. Finally,
although COVID-19 has made this
more difficult, we normally organise
events within the community of Lead
With Pride™ certified farmers to share
best practices and experiences.
FY21 INITIATIVES
Lead With Pride™
standard developments
Synlait updates the Lead With Pride™
standard each year, to ensure that it
takes into account the most recent
knowledge and that its requirements
remain truly leading over time.
Farmers are included in this process
to ensure through collaboration that
standards are well positioned and fit
for purpose.
This year, Synlait notified Lead
With Pride™ participating farmers of
proposed changes to the standard in
December 2020, and then organised
a series of meetings to discuss these
changes. There were five interactive
meetings held to canvas views,
collaborate, and make adjustments
to the requirements, and achieve
practical implementation of changes.
Most of the changes proposed for
the 2021-2022 season were in the
animal health and welfare pillar.
New requirements include setting
parameters around disease and
welfare metrics including cow body
condition, lameness, mastitis, and
damage to tails. They enable the
collection of valid, audited data
supporting benchmarking for key
indicators within Lead With Pride™
farms.
Due to COVID-19 disruption there
was a reduction in on-farm field
days to provide extension learning
for farmers. However, through
collaboration with Farmlands, we held
three lameness prevention workshops
in the Waikato and Canterbury where
Neil Chesterton, a veterinarian with
expertise in lameness, was hosted
to present knowledge on lameness
management.
FarmIQ
The Lead With Pride™ Live programme
(powered by FarmIQ) enables an
electronic means for suppliers to
manage their farming operation as
well as the tasks required by the
standard. It is provided by Synlait to
all Lead With Pride™ certified farms
at no cost to the farmers. FarmIQ
enables efficient management of the
programme and a reduction in on-
farm audit time. Investment continues
into this platform to facilitate data
benchmarking and programme
efficiency.
Lead With Pride™ expansion
We strongly encourage our existing
farmer suppliers to adhere to our
Lead With Pride™ standards. We also
require all new farmer suppliers to be
certified within three years of signing
on as a milk supplier. 62% of our total
farmer suppliers across both the
Waikato and Canterbury regions were
certified as of 31 May 2021. We expect
over time that the vast majority of our
farmer suppliers will become Lead
With Pride™ certified.
Synlait Dunsandel farmland
In March 2020, Synlait acquired a
582-hectare farmland adjacent to our
Dunsandel facility. This acquisition
was carried out for several reasons,
including greater control over water
rights and wastewater application,
development of the rail siding
adjoining Dry Store 4 and the ability
to directly perform on-farm trials as
part of our sustainability journey. Until
May 2021, the two farms were leased
back to the supplier who previously
operated them. Since then, we have
been actively working on our plans
for the future operation of the farms.
These will be disclosed in FY22.
FY21 HEALTHY FARMING RESULTS
FY22 PLANS
• Focus on making Lead With Pride™ more valuable for farmers, and ensure it
aligns with areas that are important to consumers.
• Continue improving Lead With Pride Live (Powered by FarmIQ) to assist farmers
with both the Lead With Pride™ programme, and farm management in general.
2
There were two significant non-compliances in the Waikato region, and one significant non-compliance in Canterbury. All three
non-compliances were related to effluent management. Synlait has access to most information relating to its farmer suppliers’
resource consents (and, importantly, to all dairy effluent consents), however we are conscious this information may not be
complete. We are aiming to improve our data collection process for environmental non-compliances for the next reporting period.
Lead With Pride
TM
certified milk
(as of 31 July)*
Lead With Pride
TM
certified farmer
suppliers (as of 31 May)*
FY18FY19FY20FY21FY18-FY21
evolution
Lead With Pride™ certified farmer suppliers (as of 31 May)*28%49%57%62%124%
Lead With Pride™ certified milk (as of 31 July)*33%51%65%72%119%
Farms with a Farm Environment Plan (as of 31 May)*---86%-
Average length of farmer partnership with Synlait (as of 31 May)*
- Canterbury*-6.87. 88.0-
- Waikato*--1.01.9-
Percentage of farms with significant environmental
non-compliances (as of 30 June)²*
-2%3%1%-
FY18FY18
FY19FY19
FY20FY20
FY21FY21
33%28%
51%49%
65%57%
72%62%
*
Indicates that data quality was reviewed by an independent third party.
PAGE 70 & 71
SUSTAINABILITY REPORT 2021

Right from their farm entrance, Synlait's Lead With
Pride™ certified farmers stand out.
OUR FOUR
PILLARS
Environment –
Lead with foresight
New Zealand’s unique environment
is reflected in the quality of its milk,
so protecting the environment is both
good farming and good business.
For dairy farming to be sustainable,
our industry’s environmental
practices must be sustainable too.
To become Certified Members,
our farmer suppliers must achieve
excellence in the management of
water, effluent, biodiversity, soil
quality, energy and GHG emissions.
Milk quality –
Lead with greatness
It takes modern, innovative farming
methods to produce the highest
quality milk that our customers want
in their products. Our best suppliers
are dedicated to food safety. They
do this by daily milk monitoring and
focus on practices that ensure the
absolute integrity of their milk. Our
Certified Members are recognised
for excellence in areas that our
customers consider essential,
including dairy presentation and
infrastructure, hygiene practices,
milk cooling, residue management
and staff training.
Animal health and welfare –
Lead with care
The best dairy farmers know that
the health and welfare of their herd
directly impacts milk quality and
work hard to ensure a happy and
healthy herd. Certified Members
exceed New Zealand’s Animal
Health and Welfare standards.
This includes accurately monitoring
and recording animal health events
and outcomes so better decisions
can be made in the future, and
performance improved.
Social responsibility –
Lead with integrity
The greatest potential on any farm
lies in its people. By building cohesive
teams that have real drive and
passion, our farmer suppliers are able
to improve overall farm performance.
Taking a comprehensive human
resources approach, farmers
create more opportunities for
success, they also attract the best
employees. Certified Members take
a systems approach to recruitment,
management, health and safety
and training. They create a sense of
teamwork on farms and stand out as
an employer our industry respects.
The Lead With Pride
TM
programme
is comprised of four interdependent
pillars: Environment, Animal
Health and Welfare, Milk Quality
and Social Responsibility. These
pillars recognise the challenges
and complexities of sustainability
in the medium and long term,
and are supported by financial
incentives, per kilogram of milk
solids, designed to encourage
continuous improvement in dairy
farming practices. Each year, Lead
With Pride
TM
certified farms are
independently audited to the ISO/
IEC 17065 standard.
SUSTAINABILITY REPORT 2021PAGE 72 & 73

The rail siding at Synlait Dunsandel benefits people,
planet and profit while further extending our highly
integrated manufacturing facility from farm-to-port.
SUSTAINABLE
SUPPLY
Sustainable procurement means
making sure that we apply our
sustainability principles to our entire
supply chain, beyond the raw milk that
we source directly from our farmer
suppliers.
Our aim is to make sure that the
products and services we buy have the
lowest possible environmental
impact and the most positive
social results. By engaging with
our suppliers on sustainability,
we reduce our exposure to
supply chain risks. It also unlocks
opportunities to collaborate with
innovative suppliers that help us
meet our sustainability targets.
PAGE 74 & 75SUSTAINABILITY REPORT 2021

SUSTAINABLE
SUPPLY TARGETS
100% of our procurement
tenders will include social and
environmental criteria by 2028.
FY21 INITIATIVES
Optimising our supply chain
With the commissioning of a new rail
siding and adjacent 30,000 sqm Dry
Store 4 at Synlait Dunsandel, we have
transformed our import and export
operations in the South Island. The
rail siding and Dry Store have jointly
resulted in the reduction of 16,000
truck journeys each year between the
site and Christchurch.
The new rail-based transport between
Synlait Dunsandel and Port Lyttelton
provides positive environmental,
economic, and social outcomes.
Filling containers with export powder
products at the new Dry Store and
loading those containers onto rail
wagons instead of trucking product to
leased warehouses for packing into
containers in Christchurch saves the
company approximately 880 tonnes
of carbon per year and $8 million
in costs.
Extra efficiency gains are made if the
export dairy-grade containers arrive
at Synlait Dunsandel full of imported
ingredients such as lactose and can
leave full of powder products. This
is possible when logistics managers
can match suppliers’ shipping
arrangements with Synlait’s shipping
providers. This was particularly useful
in FY21 with the global shortage of
shipping containers.
Removing many trucks from the
road also means lower impact on
the road infrastructure between
Synlait Dunsandel and Lyttelton
and reduces safety risks at the
intersection next to our site.
Finally, the new rail and Dry Store
operation also gives Synlait greater
control and quality assurance for
exported products. The containers
are loaded and sealed at Synlait
Dunsandel, and the product is not
handled again until it reaches the
customer’s warehouse.
Procurement screening
for sustainability
In the past year Synlait has adopted
a more formalised approach to
integrating sustainability into
procurement policies and processes.
When planning a procurement
tender, category managers can
now use a desktop assessment to
determine the level of sustainability
risk and impact associated with the
supplied product or service.
If the risk is low, they can use a
generic “sustainability question
bank” to engage tenderers on
common social and environmental
issues, such as the respect of
human rights, greenhouse gas
emissions and waste. If the risk is
deemed high, then the procurement
and sustainability teams collaborate
to draft customised questions that
address the specific social and
environmental impacts associated
with the product or service.
Depending on the level of risk, the
weight allocated to sustainability
criteria may range between 5%
and 30%.
Below are tangible examples of
recent tenders that had customised
sustainability assessments:
• For the supply of our 25kg milk
powder bags, sustainability
criteria included health and
safety, living wages, business
ethics, FSC or PEFC certification,
recyclability and recycled content
of materials, as well as the
greenhouse gas footprint of the
products.
• For the supply of our cartons,
we reviewed aspects such
as the location of the forests
growing the timber as well as the
processing plants, greenhouse
gas emissions, FSC or PEFC
certification, health and safety
and general sustainability
policies.
• For the supply of waste
management services, we asked
about the tenderers’ sustainability
commitments and performance,
examples of initiatives enabling
their customers to divert waste
from landfill, use of technology
and innovations to reduce waste,
diversity and inclusion policies,
employee benefits and working
conditions, and health and safety.
We expect to apply this process
to all procurement tenders in the
next few years. The next step will
be to incorporate sustainability
criteria into other components of the
procurement cycle, such as supplier
reviews and audits.
FY21 SUSTAINABLE SUPPLY RESULTS
FY22 PLANS
• Continue optimising the rail siding so that it is fully utilised.
• Test, adjust and improve our new sustainability screening process for procurement.
3
Excluding Synlait China.
4
Synlait data is unavailable for FY21 due to our transition to a new ERP still being underway. We will re-disclose this data from FY22 onwards.
5
Excluding Synlait China and Dairyworks.
FY18FY19FY20FY21FY18-FY21
evolution
Non-milk supplier expenditure with New Zealand
registered companies*
- Synlait*³86.3%88.4%86.8%N/A⁴-
- Dairyworks*---94.6%-
Procurement tenders issued during
the year including both social and
environmental criteria*⁵
87%
FY21
*
Indicates that data quality was reviewed by an independent third party.
PAGE 76 & 77
SUSTAINABILITY REPORT 2021

Rakaia Gorge, Canterbury.
TRANSPARENCY
Synlait is committed to clear and
accurate reporting of sustainable
performance to our many
stakeholders. This commitment
is about going beyond
compliance. We recognise that
shareholders, customers, farmer
suppliers, employees and all our
other stakeholders require, and
deserve, greater disclosure and
transparency from us, especially
as a public listed company.
As well as producing this
Sustainability Report, Synlait
contributes annually to several
sustainability monitoring and
evaluation processes, which
use or verify our sustainability
metrics and performance over
the past year.
PAGE 78 & 79SUSTAINABILITY REPORT 2021

TRANSPARENCY
TARGETS
120 points in the B Corp Impact
Assessment by 2028.
‘A’ Score in the CDP Climate Change
questionnaire by 2028.
FY21 INITIATIVES
Science Based Targets initiative
Science-based targets show
companies how much and how
quickly they must reduce their
greenhouse gas emissions to be
in line with what the latest science
says is needed to prevent the worst
impacts of climate change.
In 2021, we reset our Scope 1 and
2 emissions reduction target from
our original target set in 2018. The
new target is approved by the
Science Based Targets initiative
(SBTi) and aligns with the New
Zealand Government’s commitment
to keep global warming to 1.5°C, the
most ambitious target of the Paris
Agreement.
Our Scope 3 target for on-farm
emissions has been adjusted to
reflect the new 2020 base year but
has otherwise not been changed,
as it already met SBTi’s criteria for
ambitious value chain goals.
CDP
Synlait supports the Carbon
Disclosure Project (CDP) by
completing the climate change
questionnaire that is sent each year to
all S&P/NZX50 companies.
In 2020 Synlait improved its score
to B from D in 2019. By achieving a
B, Synlait demonstrated it is taking
coordinated action on climate.
It reflects improvements made in
climate strategy and governance,
energy and GHG emissions
disclosures, climate risk management,
and project implementation.
The CDP also evaluates and
benchmarks a company’s
engagement with their suppliers on
climate change. In this rating, Synlait
achieved an A-, which reflects our
work to implement best practices
for GHG mitigation with our farmer
suppliers.
Sustainable Dairy Partnership
To support industry collaboration on
sustainable agriculture, we signed on
as a member of the SAI Platform in
December 2020 and joined one of
its key programmes, the Sustainable
Dairy Partnership (SDP).
The SDP provides standard
requirements and an assurance
model that provides dairy buyers
with confidence in the sustainability
of the dairy products they buy from
processors.
The SDP’s approach is to focus
on management systems and to
leverage work already done as part
of industry wide or company specific
programmes, to eliminate duplication
and costs associated with multiple
audits.
For Synlait, adhesion to the SDP’s
requirements was relatively seamless
as the criteria assessed in the
programme closely align with those
of our Lead With Pride™ standard,
such as on-farm GHG emissions, soil
nutrients, waste, water, animal welfare,
and product safety and quality.
ESG rating
The ESG (environmental, social and
governance) rating that underpins our
$100 million ESG-linked loans with
ANZ and BNZ banks is determined by
the Sustainalytics research agency.
Sustainalytics analyses a wide range
of ESG indicators such as governance,
water management, carbon intensity,
employee engagement and turnover,
quality certifications, and waste
management.
In February 2021, Synlait was rated
24.5 by Sustainalytics, an increase
from the previous year (21.3) mainly
due to a higher perceived risk on
climate and water issues. The lower
the score, the lower the likely impact
of ESG issues on the economic
value of the company. Using the
same methodology as in FY19 (for
comparability), our score was 23.3.
B Corp™
In June 2020 Synlait became a
certified B Corp™ company. B Corps™
are organisations that meet the
highest standards of verified social
and environmental performance,
accountability, and transparency. By
harnessing the power of business, B
Corps™ use profits and growth to a
greater end: positive impact for their
employees, communities, suppliers,
customers, and the environment.
B Corps™ need to recertify every
three years, so we have been
organising ourselves and developing
plans to improve our scores across
all five sections of the B Corp™
assessment to make sure we remain
certified in 2023.
The main change will be the inclusion
of Dairyworks in the scope of
the assessment. The Dairyworks
team has put together a detailed
sustainability roadmap, which it will be
implementing over the next two years.
FY21 TRANSPARENCY RESULTS
FY22 PLANS
• Continually improve our CDP, Sustainalytics and SDP scores.
• Implement our B Corp improvement plans across Synlait and Dairyworks.
6
The FY21 ESG Risk Rating of 23.3 is based on the methodology used by Sustainalytics in FY19, to enable a like-for-like comparison.
Sustainalytics updated their methodology in FY20. Under the new version our rating in FY21 was 24.5.
FY19FY20FY21
B Corp™*-80.480.4
CDP Score*-DB
Sustainalytics ESG Risk Rating*⁶34.922.523.3
*
Indicates that data quality was reviewed by an independent third party.
B Corp™ Score*
FY20
FY21
80.4
80.4
Sustainalytics ESG Risk Rating*
FY19
FY20
FY21
34.9
22.5
23.3
FY28
Target
120
PAGE 80 & 81SUSTAINABILITY REPORT 2021

GRI Standard DisclosureDisclosureReferencePage Number
Organisational profile102-1Name of the organisationSynlait Milk Limited
102-2OperationsOur strategy6
102-3Head officeDunsandel, New Zealand
102-4LocationsAbout this report1
102-5Legal type of entityLimited liability company
102-6Markets servedGlobal
102-7Scale of the organisationKey highlights5
102-8WorkforceKey highlights5
102-9Supply chainHow we create value12
Strategy102-14Managing Director statementIntroduction4
Ethics and integrity102-16Values, principles, standardsOur strategy6
Reporting practice102-45Entities includedAbout this report1
102-46Basis of report contentAbout this report1
102-47List of material topicsOur materiality analysis14
102-50Report period1 August 2019 – 31 July 2020
102-51Report dateNovember 2020
102-52Reporting cycleAnnual
102-53Contact informationsustainability@synlait.com
102-54GRI complianceAs above statement
102-55GRI context indexThis page
Material topicsRelated indicators
Economic201-1Direct economic value generated
and distributed
Key highlights
How we create value
5
12
204-1Expenditure on local suppliersSustainable supply74-77
Environmental 305-1Greenhouse gases (GHG) emissions
Scope 1
Climate24-29
305-2GHG Scope 2Climate24-29
305-3GHG Scope 3Climate24-29
305-4GHG emissions intensityClimate24-29
305-5Reduction of GHG emissionsClimate24-29
302-1Manufacturing Energy and Coal
Consumption
Climate24-29
303-1Nitrogen lossesWater30-35
303-5Water consumptionWater: On-farm and off-farm
consumption
30-35
GRI Standard DisclosureDisclosureReferencePage Number
Environmental306-2Total waste production and recyclingCircular economy40-43
307-1Non-compliance with environmental
regulations and laws
Healthy farming68-73
308-2Negative environmental impacts in
the supply chain and action taken
Healthy farming: Lead With Pride™68-73
Social404-3Percentage of employees receiving
regular performance and career
development reviews
Talent attraction and development50-53
405-1Diversity of governance bodies and
employees
Diversity and inclusion54-57
405-2Remuneration for men and women
and differential
Diversity and inclusion54-57
401-1Annual staff turnoverTalent attraction and development50-53
403-9Annual injury, severity and
fatality rates
Safe workplace46-49
413-1Operations with local community
engagement, impact assessments
and development programmes
Culture and community58-61
416-1Customer health and safety: Health
and safety impact assessment of
products
Safe food64-67
417-2Incidents of non-compliance
concerning product and service
information and labelling
Safe food64-67
Management Approach
103-1 Explanation of material topicsOur materiality analysis14
103-2Management approachIntroduction
Our strategy
Net positive for the planet
A healthier Synlait
World class value chain
4
6
22
44
62
103-3Evaluation of management approachResults within each Sustainable
Innovation Platform (SIP)
APPENDIX - GRI CONTENT INDEX
While this Sustainability Report follows the objectives of the Global Reporting Initiative and includes a wide range of
environmental and social disclosures, it is not intended to be a GRI Standards Core Option report. We have provided
a table linking our disclosed information to GRI indicators as a first step towards adopting the GRI methodology.
PAGE 82 & 83SUSTAINABILITY REPORT 2021

Printed in Christchurch, New Zealand
This document is printed on
environmentally responsible paper,
produced using Elemental Chlroine
Free (ECF), Tird Party certified pulp from
responsible Sources, and manufactured
under strict ISO 14001 Environmental
Management System.

Do you have feedback on our sustainability strategy and report?
Or have a question to ask our team? Contact us at: sustainability@synlait.com

---