Sustainability Report Released

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






NZX: SML
ASX: SM1


23 January 2023

Sustainability Report released: reduction in GHG emissions remains on track

Synlait Milk Limited (Synlait) has published its 2022 Sustainability Report, which demonstrates a
continued improvement in the milk nutrition company’s greenhouse gas (GHG) emissions, with
significant progress made on-farm through the efforts of its farmer suppliers.

Synlait’s farmer suppliers experienced a particularly challenging 2021/2022 season, leading to
reduced milk volumes supplied. Due to reduced milk production, Synlait’s on-farm emissions intensity,
per kg of milk solids, increased 1% over the past year. This equates to a 9% reduction compared to
Synlait’s FY18 base year when targets were first set.

However, Synlait’s absolute on-farm emissions decreased by 3.2% compared to FY21. This reduction
was despite growth in our supply base. Alongside GHG reduction, our farmers have reduced nitrogen
loss per kg of milk solids by a staggering 29% against an FY18 base year, and by 9.4% since FY21.

Total off-farm (scope 1 and 2) emissions have remained steady since last year, with a 1% reduction.
Emissions intensity per kg of product has reduced by 21% compared to FY18. Significant reductions in
off-farm emissions are expected in FY23, with the completion of two key decarbonisation projects.

Synlait CEO Grant Watson commented: “We are extremely proud of Synlait’s continued world-class
commitment to sustainability, a journey that began in 2017. It is imperative we continue to prioritise
our environmental and social impact.”

“Disruption has tested our resilience in recent years, but we remain committed to building a future
where food production positively impacts people and the planet. We are also committed to continuing
to lead the way in sustainability and engaging our farmers, customers, staff, and wider community with
us on this journey.”

“We continue to make notable progress against our environmental targets, and the effort by our
farmer suppliers towards reducing their impact on the environment stands out in our FY22 results.”

This is Synlait’s fourth Sustainability Report which reviews the company’s social and environmental
performance and achievements for the year ended 31 July 2022. The report can be viewed here.

Synlait’s Greenhouse Gas Inventory Report was also released today and can be viewed here
1
.

For more information contact:
Hannah Lynch
Head of Corporate Affairs & Brand
P: +64 21 252 8990
E: hannah.lynch@synlait.com


1
This inventory is prepared in accordance with the requirements of the Greenhouse Gas Protocol and ISO 14064-1:2018 specification. Where relevant, the inventory is
aligned with industry or sector best practice for emissions measurement and reporting. On-farm emissions are directly obtained from OVERSEER®, a New Zealand farm
management software.

---

Doing Milk Differently For A Healthier World
SUSTAINABILITY
REPORT 2022

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 2022.
The scope of this report includes all
entities in which Synlait Milk Limited
has more than 50% ownership. In
FY22, Synlait Milk Limited wholly
owned Synlait Milk Finance Limited,
The New Zealand Dairy Company
Limited, Eighty-Nine Richard Pearse
Drive Limited, Synlait Business
Consulting (Shanghai) Co., Ltd,
Dairyworks Limited and Dairyworks
(Australia) Pty Limited, Synlait Milk
(Holdings) No.1 Limited and Synlait
Milk (Dunsandel Farms) Limited.
Synlait has shareholdings in Sichuan
New Hope Nutritional Foods Co.
Ltd and Primary Collaboration New
Zealand Limited. Synlait has a less
than 50% shareholding in these
entities, excluding them from the
scope of this report.
In FY22, Synlait’s manufacturing
and processing sites were Synlait
Dunsandel, Synlait Pokeno, Synlait
Auckland, Dairyworks Hornby and the
Temuka cheese plant. The Temuka
cheese plant was non-operational
in FY22. Synlait’s leased Auckland
warehouse on Westney Road and
Dairyworks’ leased Gerald Connelly
warehouse in Christchurch have
been included in some environmental
metrics, such as electricity, LPG, waste
and GHG emissions. Our other sites –
ABOUT THIS
REPORT
Synlait’s Research and Development
centre in Palmerston North, our
China office in Shanghai and central
Christchurch office – 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.
The Synlait Dunsandel farms
(acquired in FY21) commenced
operation under Synlait control
in FY22. They were included for
the first time this year in our social
and environmental reporting and
considered as a Synlait business unit.
From a GHG accounting perspective,
the farms’ emissions were included
in scope 1 and 2 emissions. The land
was leased to graze cattle and did
not supply us with milk during the
2021-2022 season.
Our on-farm indicators cover all
contracted milk suppliers. They
exclude the Synlait Dunsandel farms.
In FY22, 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).
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.
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
PAGE 01 & 02SUSTAINABILITY REPORT 2022

The entrance to Synlait Pokeno where 120 members
of our team work.
CONTENTS
About this Report 02
Introduction 05
Our Heart, Head, Hands 07
Our Sustainability Framework 09
Sustainability Governance 11
Materiality Analysis 13
UN Sustainable Development Goals 15
Made With Better Milk 17
Net Positive for the Planet 21
Climate 23
Water 29
Welfare 35
Circular Economy 39
A Healthier Synlait 43
Safe Workplace 45
Talent Attraction and Development 49
Diversity and Inclusion 53
Culture and Community 57
World Class Value Chain 61
Safe Food 63
Healthy Farming 67
Sustainable Supply 73
Transparency 77
SUSTAINABILITY REPORT 2022PAGE 03 & 04

Kia ora koutou
Over the past 11 months, I have had
the privilege of leading Synlait as
CEO. One of the things I have always
admired about Synlait is its world-
class sustainability credentials. It
is, therefore, an absolute pleasure
to provide an update on our
performance in this area to you,
our shareholders, and wider Synlait
stakeholders.
Adapting to the post-pandemic
world means 2022 has presented
many challenges for almost all New
Zealand companies. I want to thank
our Synlait community, especially our
staff and farmer suppliers, for their
commitment and hard work as we
jointly navigate labour shortages,
inflation, geopolitical dynamics, and
operational and supply chain stability.
In addition, during the year, we have
realigned our organisational structure,
implemented SAP and completed the
first year of our two-year recovery
plan to get our business back on
track financially after a period of
significant change and instability.
Our refreshed strategy –
the B Corp™ effect
While our purpose to Do Milk
Differently for a Healthier World
remains the same, we have reviewed
our ambition and strategy as we
enter FY23. Our refreshed strategy
will enable greater focus and
accountability, which is vital in our
progression towards our ambitions.
Six metrics were selected to measure
our success and reflect our ambition
to balance people, planet, and profit.
One of these metrics is our B Corp™
score, which we aim to progressively
increase with the support of
continuous improvement plans.
During the strategy refresh process,
one of our key assumptions was that
sustainability is no longer a nice-to-
have – it has become a core business
enabler. Embedding sustainability
into our purpose and culture, our
on-farm standard (Lead with Pride™)
and customer partnerships (via our
Made with Better Milk programme),
are essential components of Synlait’s
competitive advantage model.
Delivering against our
environmental targets
To align with a 1.5-degree warming
scenario, Synlait has committed to
reducing Scope 1 and 2 emissions
by 45% by 2028. During FY22, we
progressed two key decarbonisation
projects: the maximisation of our
electrode boiler, so that it runs at
full capacity and supplies the entire
Dunsandel facility, and the conversion
of our Boiler 2 from coal to biomass.
Our absolute Scope 1 and 2 emissions
have plateaued since FY20 and,
thanks to these two projects, we
expect a clear reduction from FY23.
On-farm, we have committed to
achieving a 30% reduction in GHG
emissions per kg of milk solids by
2028. To enable this, we developed
a GHG mitigation tool and incentive
scheme, which our farmer suppliers
have widely adopted. Between FY18
and FY22, our on-farm GHG emission
intensity reduced by 9%. To accelerate
the development of solutions to
mitigate biological emissions from
agriculture, we have also decided
to invest in the Centre for Climate
Action Joint Venture, alongside the
New Zealand government and other
primary industry partners.
Finally, we have further developed our
Made with Better Milk programme,
with partnerships actively progressed
with farmers and customers in
sustainable packaging, animal welfare
and regenerative agriculture.
On-farm excellence
remains a key focus
Coming back to our refreshed
strategy, our six key enablers also
include achieving on-farm excellence.
I have particularly valued getting to
know our farmer suppliers. It is critical
to Synlait that we engage our farmers,
add value on-farm, and share a united
vision. Over the coming years, we will
aim to improve our payment systems,
digital tools, and industry and
community engagement, alongside
our Lead with Pride™ and Made with
Better Milk programmes. We have also
elevated milk supply to the Executive
Leadership Team, with the addition of
the Director of On-Farm Excellence
and Business Sustainability role to
ensure we achieve this.
FY22 PRODUCTION*
206,239MT
FY22 REVENUE
$
1,660.6M
FY22 TOTAL EMPLOYEES*
1,267
FY22 MILK SUPPLIERS*
282
KEY
HIGHLIGHTS
*
Indicates that data quality was reviewed
by an independent third party.
FY22 CONTRACTED MILK SUPPLY*
(‘000)
82,979kgMS
We are on a journey to become
an employer of choice once again
For Synlait to become an employer of
choice, we need to further stabilise
and rebuild our culture following
a period of constant change and
reorganisation. To strengthen
engagement, we are actively
promoting internal talent and resetting
our health, safety, and wellbeing
performance via the launch of a new
internal campaign called Synlait Safe.
The resilience of our Synlait
community has been tested over
the past two years, but we remain
committed to building a future where
food production positively impacts
people and the planet. We are also
committed to continuing to lead the
way in sustainability and engaging
our staff, farmers, customers, and
community with us on this journey.
Nga mihi.
Grant Watson
CEO
SUSTAINABILITY REPORT 2022PAGE 05 & 06

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 PURPOSE
HEAD OUR AMBITIONHANDS OUR STRATEGY
During FY22, Synlait refreshed its
strategy. The company’s purpose,
Doing Milk Differently For A
Healthier World, was not changed.
However, our ambition and strategy
were both reviewed and updated.
Synlait’s ambition now has six
metrics that measure success.
Our four business units are:
Advanced Nutrition
Ingredients
Consumer
Foodservice
The refreshed strategy will
be presented in next year’s
sustainability report.
SYNLAIT'S
STRATEGY
FY23-FY27
1
2
3
4
SUSTAINABILITY REPORT 2022PAGE 07 & 08

Our framework is based on the following three enabling pathways:
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 Papatūānuku. 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.
Synlait’s sustainability framework will be reviewed to align with the refreshed strategy in FY23.
OUR SUSTAINABILITY
FRAMEWORK
SUSTAINABILITY REPORT 2022PAGE 09 & 10

SUSTAINABILITY
GOVERNANCE
BOARD OF
DIRECTORS
The purpose of the People,
Environment and Governance
Committee (Committee) is to assist
the Board on all material matters in
relation to people, the environment,
and governance at Synlait.
This includes establishing a coherent
framework for management of
the Human Resource policy and
remuneration structure, enabling
Synlait to attract, retain and reward
talent; and establishing policies and
strategies to ensure Synlait meets
its commitment to create a business
impact that is net positive for the
planet across its entire value chain.
Key responsibilities include:
• To monitor and review the
effectiveness of our Human
Resources strategy, talent
management and processes;
• To review Synlait’s investment
strategies against our
sustainability commitments;
• To monitor and review
the effectiveness of our
sustainability strategies; and
• To review and approve progress
against strategies and targets.
The Committee consists of at least
three members, the majority of
whom are independent directors.
Committee meetings are held at
least five times a year.
EXECUTIVE
LEADERSHIP TEAM
All members of our Executive
Leadership Team share responsibility
for our social and environmental
performance. In line with our goal
of balancing people, planet and
profit, our corporate scorecard
includes people and environmental
metrics, alongside financial, quality,
production, and sales indicators.
The Executive Leadership Team
members are directly accountable for
delivering specific programmes under
our sustainability framework:
• The Director of On-Farm
Excellence and Business
Sustainability is responsible for
milk supply, on-farm excellence,
and sustainability, ensuring that
our milk pools remain highly
competitive while continuing to
accelerate our environmental
targets on and off-farm.
• The Director of People and
Culture is responsible for
health, safety and wellbeing,
diversity and inclusion, and the
development of a framework that
strengthens our capability and
culture, creates career pathways
for key talent, and promotes high
performing teams.
Chief Financial
Officer
Chief Executive
Officer
Director
of Quality,
Regulatory and
Laboratory
Director of
Ingredients
Director of
On-Farm Excellence
and Business
Sustainability
CEO Dairyworks
and Director of
Consumer
Director of People
and Culture
Director of
Advanced
Nutrition
Director of
Strategy,
Innovation and
Corporate Affairs
Director of
Operations
President China
and Director of
Foodservice
People,
Environment
and Governance
Committee
Board of
Directors
Audit and Risk
Committee
• The Director of Quality,
Regulatory and Laboratory is
responsible for ensuring that
we manufacture products under
world-class food safety and
quality standards.
The other Executive Leadership
Team members directly or indirectly
support the achievement of our
social and environmental goals. For
example, our four business units aim
to embed sustainability into their
products, processes and/or customer
relationships, in particular via our
Made With Better Milk programme.
BOARD OF
DIRECTORS
EXECUTIVE
LEADERSHIP TEAM
PAGE 11 & 12SUSTAINABILITY REPORT 2022

MATERIAL TOPICS
To improve and sustainably
develop as an organisation we
need to identify, understand, and
closely manage our performance
on the economic, social, and
environmental topics most material
to us and our stakeholders.
In FY20, we performed a full
desktop materiality assessment.
This involved reviewing reports from
suppliers, customers, investors,
and other external stakeholders to
assess relevant issues that could
impact value. Working from a long
list of topics, a shortlist was created
and discussed within a group of key
internal stakeholders.
In FY22, we analysed our internal
and external contexts to update this
list and review the ranking of our
most material topics. We considered
our new strategy and organisational
priorities, such as being an
employer of choice, achieving
on-farm excellence and improving
manufacturing efficiencies.
FOOD SAFETY AND QUALITY
HEALTH, SAFETY AND WELLBEING OF EMPLOYEES
EMPLOYEE ENGAGEMENT, CULTURE, AND CAPABILITY
PROFITABILITY
MARKET ACCESS
CLIMATE CHANGE
CUSTOMER PARTNERSHIPS AND DIVERSIFICATION
WATER QUALITY
OPERATIONAL EXCELLENCE
COMPETITIVE MILK POOL
LAND, BIODIVERSITY, AND REGENERATIVE AGRICULTURE
PRODUCT INNOVATION
ANIMAL WELFARE
SUSTAINABLE PACKAGING, WASTE, AND RECYCLING
NUTRITION AND HEALTH
PRODUCT PROVENANCE AND TRACEABILITY
INFORMATION SERVICES
RESPONSIBLE PROCUREMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
16
14
17
15
18
MATERIALITY
ANALYSIS
PAGE 13 & 14SUSTAINABILITY REPORT 2022

OUR CONTRIBUTION TO THE UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS (SDGS)
UN SDGsSDG TargetHow We ContributeSynlait ProgrammePage
NO HUNGERHealthy farming69
Safe food65
Safe workplace47
Diversity and inclusion55
Water31
Climate25
Talent attraction and development51
Diversity and inclusion55
Safe workplace47
Circular economy41
Climate25
Culture and community59
Healthy farming69
Made With Better Milk19
Welfare37
Sustainable supply75
Transparency79
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 partner with key customers on the development of on-farm and off-farm sustainability projects to
advance our mutual sustainability goals.
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
PAGE 15 & 16SUSTAINABILITY REPORT 2022

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.
The Made With Better Milk
programme leverages the integrity
of our approach to milk production,
transparent supply chain practices,
and verified sustainability claims. It
means we can provide our global
customers opportunities to share the
sustainable value we are creating.
Made With Better Milk has two main
objectives:
1. Enabling our customers to reach
their corporate sustainability
commitments and targets
through collaborative projects
on-farm and/or on-site. For
example, this could involve
partnering on the trial of new on-
farm technologies and practices
such as regenerative agriculture
or new effluent management
systems. Sustainability benefits
are monitored, reported, and
allocated to customers to
demonstrate progress toward
meeting their targets.
MADE WITH
BETTER MILK
PRODUCT
COLLABORATING
ACROSS THE VALUE
CHAIN TO ADVANCE
SUSTAINABILITY
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.
2. Helping our customers
differentiate their brands
through sustainability related
product attributes and claims.
We have a team of highly
skilled technologists to work
with customers on new
product development. We are
also able to provide support
with marketing collateral and
product certifications. A good
example of this is our verified
grass-fed milk pool which
customers can use to make
grass-fed milk claims on pack.
SUSTAINABILITY REPORT 2022PAGE 17 & 18

OUR TAILORED SOLUTIONS
Tailored solutions are value propositions that we can co-develop with our customers. This could be in the form
of new product development or collaborative projects on-farm or on-site. Three examples are summarised below:
THE MADE WITH BETTER MILK PROGRAMME HAS BEEN DEVELOPED
TO OFFER EVER-EVOLVING STANDARD AND TAILORED SOLUTIONS
In FY22 we focused on developing
the Made With Better Milk programme
and the associated marketing
collateral. The programme consists
of ‘standard’ and ‘tailored’ solutions.
Standard solutions are value
propositions that already exist –
things that we already do and that
may be of interest to our customers,
for use in their corporate or brand
communications. Tailored solutions
are those we can co-develop with our
customers. This could be in the form
of tailored new product development
or collaborative projects on-farm or
on-site.
GHG reduction
New Zealand is one of the
world’s lowest greenhouse
gas (GHG) milk producers
1
,
and despite this, Synlait has
ambitious plans to further
reduce on-farm GHG emissions.
We can meet our emission
reduction targets faster
through mutually beneficial
collaborations with customers
on their own net-zero pathways.
By partnering with customers,
we can work with our farmers
to identify new technologies
and innovative measures which
could be utilised on-farm to
reduce GHG emissions.
In exchange for co-funding the
GHG reduction initiatives, Synlait
can allocate the GHG emissions
factors from the participating
farms to the customer for their
GHG reporting. On-farm GHG
mitigations as well as individual
farm emissions are audited
by a third party each year,
providing our customers with
assurance that they can claim
the GHG reductions in their own
reporting.
Regenerative agriculture
Regenerative agricultural
practices have the potential to
rebuild soil health and sequester
carbon, increase biodiversity,
and conserve water, and make
farms more resilient to extreme
climate events.
We are currently participating
in a five-year pilot study with
AgResearch, Danone and ten
farmer suppliers to measure
soil health improvements
and compare the effects
of conventional versus
regenerative agriculture
practices. We are also working
with SAI Platform on the
development of a global
regenerative agriculture
framework.
We wish to provide
opportunities for customers to
collaborate and co-invest in
on-farm regenerative projects
with us and our farmer suppliers.
Should customers have their
own regenerative agriculture
frameworks, we can explore how
they could be applied to our
New Zealand pastoral farming
system. These projects are a key
step to adopting regenerative
agriculture principles in a
way that is relevant to New
Zealand farmers, whilst helping
our customers meet their
sustainability targets within their
supply chain.
Sustainable packaging
By 2025, 100% of Synlait
product packaging will be
reusable, recyclable, or
compostable.  It is part of our
circular economy strategy, which
recognises the inherent value
of all materials, keeping them
in the loop and out of landfill.
It means that recycled content
and recyclability need to be
achieved together.
Achieving a circular model for
our packaging means that we
must reimagine all aspects
of our business and apply
sustainability principles in all
packaging decisions. We are
seeking to close the loop by
incorporating recycled content
in both primary and secondary
packaging within our portfolio.
We also want to partner with
customers and suppliers so that
recyclability is achieved while
maintaining the functional and
technical properties required
for their products. Thanks
to our team of packaging
technologists, we can apply
sustainable packaging design
guidelines when working on
new packaging developments.
1
Mapping the carbon footprint of milk for dairy cows, A. Mazzetto, S. Falconer, and S. Ledgard.
The menu of solutions we offer
to customers is dynamic and ever
evolving as we align with new trends
and market expectations. We have
also initiated discussions with existing
and future partners (for example,
Agtech start-ups, solution providers,
certification bodies) to determine how
we could craft unique solutions for our
customers.
In February 2022 we captured
imagery and filmed interviews
on-site, on-farm, and in-studio.
We used the footage to create a
portfolio of marketing collateral
that will be used to promote Made
With Better Milk, including a new
website that was launched in August
(madewithbettermilk.com). The
website provides customers with high-
level information regarding a selection
of value propositions and encourages
them to get in contact to discuss their
specific requirements.
Additional marketing and informative
content such as fact sheets and blog
articles are under development, these
will help customers understand what
we could collaborate on and how
we could help them to achieve their
sustainability goals.
PAGE 19 & 20SUSTAINABILITY REPORT 2022

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.
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 1.5 ̊C of warming by 2100.
PAGE 21 & 22
One of the native plants grown and supplied
through our Whakapuāwai Programme.
PAGE 21 & 22SUSTAINABILITY REPORT 2022

CLIMATE
Our industry is a significant
contributor to New Zealand’s
greenhouse gas (GHG) footprint
and Synlait is committed to playing
its part in our 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
fertilisers can reduce costs
and assist in the reduction of
nitrous oxide, which is a potent
greenhouse gas.
In 2018, we committed to not
building any additional coal-
fired manufacturing facility. Our
roadmap towards a low-emitting
future requires us to, over time,
replace our existing coal use
with more renewable sources of
energy. In 2022, we achieved
two major milestones in our
decarbonisation journey with the
conversion of one boiler (out of
three) from coal to biomass, and
the upgrade of our electrode
boiler at Synlait Dunsandel.
Part of the team behind the conversion of Boiler Two
from coal to biomass, at Synlait Dunsandel.
PAGE 23 & 24SUSTAINABILITY REPORT 2022

CLIMATE TARGETS
On-farm
30% reduction in Scope 3
GHG emissions from on-farm
purchased goods and services¹,
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 reset our Scope 1 and 2
greenhouse gas emissions targets
in FY21 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.
FY22 INITIATIVES
Greenhouse gas on-farm
mitigation tool
The GHG mitigation incentive
scheme and tool that we have been
developing since FY18 has now been
fully integrated into our Lead With
Pride™ programme, with all certified
farmers participating in the scheme.
This development has amended
the way we incentivise our Lead
With Pride™ certified farmers. The
incentives have changed to recognise
and reward the implementation of
GHG mitigation measures on-farm, as
they are based on the number and
type of mitigation measures employed
by our farmers. By incentivising
mitigations instead of progress
against a baseline, we are supporting
early adopters, not penalising them.
Even when in the same region, all
farms are diverse in environmental
profiles and farm systems. We
therefore cannot have a blanket
approach to GHG mitigation. Our tool
effectively assesses the impact of
various emission reduction measures
on each specific farm. Our farmers
review their current practices and
footprint. They then determine what
GHG mitigation techniques they can
integrate into their operations.
A holistic range of over 40 mitigation
options are available to these
farmers, with information and
support to implement. As of the
more recent season, we can see the
most adopted practices include soil
testing and conditioning to improve
soil structure and fertility, balanced
diets for herds, nutrient management
and effluent technology, riparian
planting, and waste measurement
and management.
There are three tiers of incentives
on offer for farmers, based on the
different mitigation techniques
employed on-farm. The number of
participating farmers receiving the
top tier incentive increased by 30%
across the 2021-2022 season.
By the end of the season, 72%
of our Lead With Pride™ farmers
were receiving the highest level
of incentive payments, and the
remaining 28% were on the second
tier of incentive payments. This
is a testament to the efforts of
these farmers. We appreciate how
engaged our farmers have been
with this scheme and are proud of
what they have achieved already.
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 2021-2022 milk season, Synlait had 278 farmer suppliers, located in the Canterbury and Waikato regions.
2
The target boundary includes biogenic emissions and removals from bioenergy feedstocks.
At full capacity, the upgraded
electrode boiler is predicted to save
over 18,000 tonnes of CO2 per
year. This would represent a 13%
reduction versus our FY20 base
year scope 1 and 2 emissions.
Forklift electrification
In FY22, we have continued our
plan to replace our LPG-fuelled
forklifts with battery-electric forklifts.
We are gradually phasing out our
LPG forklifts as they need to be
retired. When an LPG forklift is
at the end of its useful life, it is
replaced with an electric forklift.
This was identified at the beginning
of this transition as being the most
economically viable approach.
Across our four sites, 55% of
our mobile plant fleet are now
electric as of July 2022. Synlait is
committed to fully electrify its fleet
of forklifts by 2025.
Boiler Two conversion to biomass
Over FY22 we progressed our
project to replace coal with biomass
in Boiler Two at Synlait Dunsandel.
This conversion is co-funded by
the Government Investment in
Decarbonising Industry (GIDI)
programme, managed by the
Energy Efficiency and Conservation
Authority (EECA), as well as Synlait’s
strategic customer and shareholder,
The a2 Milk Company.
The biomass, or 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. Another
benefit of wood pellets is that they
are expected to result in a boiler
efficiency increase of 6%, from
approximately 82% to 88%.
The commissioning of Boiler Two
on wood pellets was delayed (it was
initially meant to go live in August
2022) due to design and build
challenges. The team continues
to show significant resilience in
overcoming these setbacks, and
we expect to start the first “burn
campaigns” with wood pellets in
early 2023.
”Burn campaigns” are periods
during which we only burn wood
pellets for optimum efficiency, and
then return to coal. By 2026 we
expect to be exclusively burning
biomass in Boiler Two. Once fully
transitioned to wood pellets, this
project is estimated to save 40,000
tonnes of CO2 per annum, a 28%
reduction versus our FY20 base
year scope 1 and 2 emissions.
In the longer term, coal will also
be phased out in Boilers One
and Three at Dunsandel. We will
begin planning phase two of our
Decarbonisation Roadmap in FY23.
Electrode boiler maximisation
In FY19, Synlait commissioned
New Zealand’s first large-scale
electrode boiler at Synlait
Dunsandel to supply process
heat to its Advanced Dairy Liquid
Packaging Facility. In New Zealand,
more than 80% of the electricity
generated each year is qualified as
renewable – mainly from hydro and
geothermal sources.
It was identified that the 6 MW
capacity of this boiler could
potentially be upgraded to 12 MW.
This led to the electrode boiler
maximisation project, also co-
funded by EECA’s Government
Investment in Decarbonising
Industry (GIDI) Fund. In FY22,
significant progress was made,
including scope review, system
design, and phasing implementation
timeline development.
Our goal is to connect the electrode
boiler to the entire Dunsandel site,
enabling a typical running rate of up
to 10 MW, where it was previously
2 MW. The project will also come
with a new system that allows
Synlait to consume electricity when
time-of-use rates are less expensive
than coal prices.
PAGE 25 & 26SUSTAINABILITY REPORT 2022

FY18FY19FY20FY21FY22FY18-FY22
evolution
Total Scope 3 on-farm
GHG emissions*
754,992 tCO
2
e731,935 tCO
2
e856,622 tCO
2
e930,065 tCO
2
e899,869 tCO
2
e19%
- Canterbury*754,992 tCO
2
e731,935 tCO
2
e735,277 tCO
2
e808,398 tCO
2
e761,637 tCO
2
e-
- Waikato*--121,345 tCO
2
e121,666 tCO
2
e138,232 tCO
2
e-
On-farm GHG emissions per
tonne of milk solids*
11.87 tCO
2
e11.48 tCO
2
e11.17 tCO
2
e10.72 tCO
2
e10.85 tCO
2
e-9%
FY18FY19FY20FY21FY22FY18-FY22
evolution
Total Scope 1 and 2
GHG emissions*
121,512 tCO
2
e127,162 tCO
2
e142,413 tCO
2
e142,298 tC
2
2e141,007 tCO
2
e16%
- Scope 1*114,589 tCO
2
e120,127 tCO
2
e133,609 tCO
2
e133,794 tCO
2
e129,910 tCO
2
e13%
- Scope 2*6,923 tCO
2
e7,035 tCO
2
e8,804 tCO
2
e8,504 tCO
2
e11,097 tCO
2
e60%
Total Scope 1 and 2 emissions
excluding Synlait Farms*
121,512 tCO
2
e127,162 tCO
2
e142,413 tCO
2
e142,298 tC
2
2e139,877 tCO
2
e15%
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
e0.69 tCO
2
e-21%
Total energy consumption*
2
347,145 MWh377,086 MWh446,541 MWh436,365 MWh428,104 MWh 23%
Energy consumption per tonne of
product*
2,495 kWh2,425 kWh2,313 kWh2,031 kWh2,076 kWh-17%
Total coal consumption
(Synlait Dunsandel only)*
54,287 tonnes56,807 tonnes56,889 tonnes56,467 tonnes53,861 tonnes-1%
Coal consumption per tonne
of product*
0.39 tonnes0.37 tonnes0.29 tonnes0.26 tonnes0.26 tonnes-33%
On-farm GHG emissions
per tonne of milk solids*
Absolute Scope 1 and 2 GHG
emissions (excluding Synlait Farms)*
Scope 1 and 2 GHG emissions
per tonne of product*
FY23 ON-FARM PLANS
• Continue to support farmers with the GHG tool and make improvements for FY24.
• Monitor the emergence of new, proven and commercially available GHG
mitigations for incorporation into the GHG tool.
FY22 CLIMATE RESULTS – ON-FARMFY22 CLIMATE RESULTS – OFF-FARM
1
FY18
FY18
FY18
FY19
FY19
FY19
FY20
FY21
FY20FY20
FY22
FY21
FY22
FY21
FY22
0.87 tCO₂e
0.82 tCO₂e
0.74 tCO₂e
0.66 tCO₂e
0.69 tCO₂e
FY28
Target
FY28
Target
On-farm emissions by type*
CH₄: 65%
CO₂: 16%
N₂O: 19%
FY23 OFF-FARM PLANS
• Start the first biomass “burn campaigns” in Boiler Two.
• Monitor the performance and efficiency of Boiler Two on wood pellets, as well as the upgraded electrode boiler.
• Begin planning Phase Two of our Decarbonisation Roadmap.
1
Unless otherwise stated, off-farm climate results include all Synlait and Dairyworks manufacturing sites, as well as leased warehouses
where applicable.
2
This indicator includes all energy sources for our manufacturing and warehousing operations – electricity, coal, natural gas, diesel and LPG.
78,327
7.88
11.92 tCO₂e
11.41 tCO₂e
11.25 tCO₂e
10.73 tCO₂e
10.85 tCO₂e
121,512 tCO₂e
127,162 tCO₂e
142,413 tCO₂e
142,298 tCO₂e
139,877 tCO₂e
*
Indicates that data quality was reviewed by an independent third party.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 27 & 28SUSTAINABILITY REPORT 2022

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 nitrate leaching.
We work alongside them to identify
their water-related risks and create
farm environment plans that
mitigate these risks.
In our processing sites, our
priority is to improve the
treatment and quality of our
wastewater, with sodium and
nitrogen being the two main
chemicals that we aim to
reduce. Over time, we will also
strive to improve our water
efficiency and consider systems
that enable us to endlessly clean
and reuse the water we need in
our manufacturing processes.
A wider view of the Rakaia Gorge, whose river runs
close to many of our farmer suppliers in Canterbury.
SUSTAINABILITY REPORT 2022PAGE 29 & 30

WATER TARGETS
On-farm
20% reduction in water use per
kilogram of milk solids by 2028,
from a FY19 base year.
45% reduction in nitrogen loss to
waterways per kilogram of milk
solids by 2028, from a FY18 base
year.
Off-farm
20% reduction in water use per
tonne of product by 2028, from a
FY18 base year.
20% reduction of nitrogen discharge
per tonne of product by 2028
(Synlait Dunsandel and Pokeno
only), from a FY18 base year.
Sodium Adsorption Ratio (SAR)
90th percentile of 10 (Synlait
Dunsandel only).
FY22 INITIATIVES
Nitrogen reduction technology trial
Nitrogen leaching, mainly from cow
urine, can be a cause of water quality
degradation. In 2020, Synlait began
partnering with a farmer supplier
to trial a new technology with the
potential to 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. The lysimeters
simulate the impact of the solutions
separately to the farm.
Early results in 2021 indicated that
the farm’s soil characteristic could
be a limiting factor and reduce the
efficacy of the technology. This led to
the extension of the trial on both the
paddocks and the lysimeter facility.
The paddock trial ended in late
FY22, while the lysimeter work to
test the different nitrogen inhibitors
will continue until November 2022.
We expect the trial’s final results and
report to be ready by April 2023.
New Zealand’s nitrogen
fertiliser cap
Since July 2021, a synthetic
nitrogen fertiliser threshold of 190
kilograms per hectare per year
applies to all grazed land, as part
of the New Zealand Government’s
Essential Freshwater policy. Our
farmers are required to inform
their regional councils of the
application of synthetic nitrogen
by 31 October 2022.
Our Lead With Pride™ farmers
were prepared for this new
requirement due to already being
required to complete an approved
Nutrient Management Plan. These
plans are revised annually, as are
relevant nutrient budgets.
We continuously provide support
to our suppliers to reduce nitrogen
usage and make the most of the
190 threshold. Our team also
collaborated with the top 10% of
nitrogen users from our supply
base on reduction plans.
Over the 2021-2022 season, our
farmers have shown a commitment
to meeting the nitrogen fertiliser
threshold. A prolonged drought
experienced in the North Island
this season led to insufficient grass
growth for the regular application
of synthetic nitrogen fertiliser.
National increases in fertiliser
prices have also driven down the
use of synthetic nitrogen.
Wastewater sodium reduction
The presence of sodium in
wastewater is a result of the use
of chemicals for the hygienic
cleaning of plant equipment. Synlait
Dunsandel also uses sodium from
salt for the extraction of lactoferrin
in milk. Lactoferrin is a natural
protein present in cow’s milk that
has antibacterial, antimicrobial and
anti-inflammatory properties. Synlait
produces lactoferrin as a high-value
ingredient for nutritional products.
High levels of sodium can, over
time, have adverse effects on the
soil of the land where wastewater is
irrigated, such as reduced infiltration
rates and ponding. Synlait Dunsandel
has therefore been developing
several initiatives to reduce the
sodium content in its wastewater,
which is irrigated onto adjacent farms
Across FY21 and FY22, we optimised
lactoferrin salt usage to reduce salt
consumption without affecting the
quality of the lactoferrin extraction
process. We have also finalised a
trial that investigated the use of
potassium-based (versus sodium-
based) cleaning chemicals and
demonstrated that these chemicals
were fit for purpose in our plants.
However, the trial also showed that
changes to our capital infrastructure
would be required to enable the
permanent use of these potassium-
based chemicals.
As mentioned, lactoferrin elution salt
and cleaning chemicals are the key
contributors to sodium discharge.
Our plans for FY23 include reviewing
and optimising our plant Clean-In-
Place (CIP) processes across all
Synlait Dunsandel’s 200+ sub-circuits
and investigating the feasibility of
recovering salt and CIP chemicals
within our Lactoferrin facility.
Site loss optimisation
Flushing occurs at the end of each
production run when water is pushed
through the milk silos to prepare for
the next run and purge the drains.
In FY21, work was completed to
optimise flushing processes at
Synlait Dunsandel. Site losses were
mitigated by adjusting pipe purges
and automated flush and purge
timers. The systems have been
optimised to recover the milk without
impact on product or processes.
In our Advanced Dairy Liquid
Packaging Facility, these changes are
expected to save 40,000m
3
of water
annually. In the rest of the Dunsandel
site, optimising flushing processes
in the milk reception area will save
1,000m
3
of water annually.
In FY22, the focus was on
optimisation of flushing in our
lactoferrin extraction process.
Changes to milk flushing in this
process are estimated to save over
4,000m
3
of water per year, with
the project due for completion in
December 2022.
PAGE 31 & 32SUSTAINABILITY REPORT 2022

FY18FY19FY20FY21FY22FY18-FY22
evolution
Total on-farm water consumption
(mainly for irrigation)*
2
-266,075,593m
3
257,061,367m
3
N/A114,466,404m
3
-
- Canterbury*-266,075,593m
3
256,839,432m
3
N/A114,259,350m
3
-
- Waikato*--221,935m
3
281,995m
3
207,054m
3
-
On-farm water consumption
per kg of milk solids*
-4.17m
3
3.35m
3
N/A1.4m
3
-
Total on-farm nitrogen loss*2,621,975 kg2,428,443 kg2,679,658 kg2,755,742 kg2,417,307-8%
- Canterbury*2,621,975 kg2,428,443 kg2,274,582 kg2,312,105 kg1,978,681-25%
- Waikato*--405,076 kg443,637 kg438,626-
On-farm nitrogen loss per kg
of milk solids*
41g38g35g32g29g-29%
FY18FY19FY20FY21FY22FY18-FY22
evolution
Total water consumption including
Synlait Farms*
1,927,484m
3
2,232,869m
3
2,823,454m
3
2,636,247m
3
4,830,988m
3
151%
Total off-farm water consumption*1,927,484m
3
2,232,869m
3
2,823,454m
3
2,636,247m
3
2,678,309m
3
39%
Off-farm water consumption
per tonne of product*
13.86m
3
14.36m
3
14.62m
3
12.27m
3
12.99m
3
-6%
Water recovered and reused
in manufacturing operations
(Synlait Pokeno only)*
--17%27%22%-
Total nitrogen discharge
per tonne of product (Synlait
Dunsandel and Pokeno only)*
0.28kg0.32kg0.38kg0.31kg0.27kg-4%
90th percentile SAR
(Synlait Dunsandel only)*
13.1611.2413.6213.8013.805%
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*
FY22 WATER RESULTS – ON-FARM
1
FY22 WATER RESULTS – OFF-FARM
1
FY23 ON-FARM PLANS
• Review the results of the nitrogen leaching trial and decide on next steps.
• Continue providing support to farmers to reduce their usage of synthetic nitrogen fertilisers.
FY23 OFF-FARM PLANS
• Initiate site-wide clean-in-place (CIP) optimisation at Synlait Dunsandel and complete
preliminary feasibility studies for salt and chemical recovery in the Lactoferrin plant.
• Identify further water efficiency and recovery opportunities.
100%
FY22
Waterways fenced to the stock-
exclusion standard of the New
Zealand Dairy Tomorrow Strategy*
3
FY19
FY19
FY19FY19
FY20
FY22
FY20
FY20FY20
FY21
FY22
FY21
FY22
FY21
FY22
-
38g
0.32kg
3.35 m³
1.40 m³
35g
32g
29g
0.38kg
0.31kg
0.27kg
FY28
Target
FY18
FY18FY18
41g
FY28
Target
FY28
Target
FY28
Target
1
All indicators in this table are aligned with OVERSEER®’s reporting period, which is 1 July to 30 June.
2
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.
3
This is the New Zealand Dairy Sector Strategy, which focuses on caring for our animals, people, and planet into the
future. A requirement is to exclude stock from waterways through use of fencing.
1
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
12.99 m³
*
Indicates that data quality was reviewed by an independent third party.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 33 & 34SUSTAINABILITY REPORT 2022

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 closely align
with the outcomes sought by
regenerative agriculture, which
has been gaining traction
around the world over the
past few years. Synlait aims to
contribute to the development
of global and local regenerative
agriculture frameworks, and
to lead their implementation
on the ground in partnership
with our farmer suppliers, while
ensuring they are applicable
and relevant in the New Zealand
pastoral farming system.
Milk supplied by Synlait comes from cows that are
predominantly pasture-fed.
SUSTAINABILITY REPORT 2022PAGE 35 & 36

FY22 INITIATIVES
Animal health and wellbeing
In FY22, we introduced additional
animal health and wellbeing
assessments for all farmer suppliers
who supply one of our key global
customers.
Our Milk Supply team completed
training in January 2022 to further
their skills and knowledge in this
area, better engage with our farmers
on animal health and wellbeing, and
support these assessments.
During the year, our team worked
alongside our third-party auditors
to complete all of the required
assessments before the end of the
milk season. Next year, every Lead
With Pride™ certified farm supplying
this key customer will have a total of
two assessments.
Soil health partnership
Synlait has partnered with Danone
and AgResearch, a New Zealand
Crown Research Institute, on a five-
year soil health and regenerative
agriculture study. Co-funded by
the Ministry for Primary Industries'
Sustainable Food and Fibre Futures
fund, the project is being conducted
on ten farms in the Canterbury,
Waikato, and Otago regions.
The project has two main objectives:
• At farm level, it aims to help
farmers assess soil health in
a more comprehensive way,
encompassing soil chemical,
physical, organic matter, and
biological indicators. In FY22,
we completed base soil health
measurements across all farms
and developed improvement
plans with the ten farmers.
• On two adjacent paddocks on
each farm, the project aims
to compare “conventional”
versus “regenerative”
practices. In FY22, on all ten
farms, one paddock was sown
with a standard ryegrass-
clover seed mix, and the other
with a hyper-diverse seed mix
containing 17 different species.
Each paddock will then be
split in two and receive either
standard or reduced levels of
synthetic nitrogen fertilisers.
Measurements and modelling are
being carried out to understand
the impact of these practices
on the farms’ profitability and
environmental performance, such
as nitrogen leaching, nitrous oxide
emissions and soil carbon.
Field days were held in Canterbury
and Waikato, that extended beyond
the participating farms. These field
days were an opportunity to discuss
the project and raise awareness on
the assessment of soil health.
Biodiversity for beneficial insects
In August 2021, Synlait joined a five-
year, cross-industry project led by
The New Zealand Institute for Plant
and Food Research on beneficial
insect diversity.
The ambition of this project is to
prove that there is a wider number
and diversity of insects when there
are native plants on a farm, and
that these are beneficial insects,
either because they are pollinators
or because they prevent or control
pests. We expect this project to
provide us with valuable science-
backed guidance as to which
native plants to prioritise in our
Whakapuāwai programme.
In FY22, one Whakapuāwai farm and
six control farms (without any native
plantings) contributed to this study.
We plan to onboard two additional
Whakapuāwai farms in FY23.
We also aim to raise awareness of
our farming community on the topic
of beneficial insects. We sent a
questionnaire to all our Whakapuāwai
farmers and published short articles
presenting a “Bug of the Month” in
Leading Edge, our monthly farmers’
newsletter.
SAI Platform’s Regenerative
Agriculture programme
SAI Platform is a non-profit,
global organisation focused on
the development of sustainable
agriculture with over 160 member
companies. In 2021, SAI Platform
developed a Regenerative Agriculture
programme to address the need for a
global standard to avoid duplication
and simplify the approach for farmers.
Alongside other member companies,
Synlait has contributed to the
initial development phases of
the draft standard. Our focus
has predominantly been on the
applicability and implementation of
the framework in a New Zealand dairy
farming context.
SAI Platform aims to release the
first version of the regenerative
agriculture standard in 2023. Once
published, Synlait will consider
piloting the standard with volunteer
farmer suppliers, ideally in partnership
with one or more customers.
FY22 WELFARE RESULTS
1
FY23 PLANS
• Repeat the animal wellbeing assessments and monitor progress in the participating farms.
• Complete year two activities as planned in the soil health project, with a particular focus on providing
technical support to farmers.
• Continue participating in the insect diversity project and apply learnings in our Whakapuāwai programme.
• Continue to support the SAI Regenerative Agriculture Programme and investigate further ways of
supporting regenerative agriculture principles in New Zealand and among our farmer suppliers.
Percentage of pasture in
cow feed as 30 June 2022*
2
Somatic cell count average*
FY19
FY20
FY21
FY22
152,700
148,219
146,218
147,000
FY18
155,000
Palm kernel expeller (PKE) free
Lead With Pride™ farms*
1
All welfare indicators are for the milk season each year, so from 1 June to 31 May.
2
This indicator is based on the average percentage of pasture in diet when the cows are on the dairy platform. It does not take into account
the cows' diet of the herd when off platform during winter.
82%
FY21
72%
FY22
74.2%
WAIKATO
81.0%
CANTERBURY
*
Indicates that data quality was reviewed by an independent third party.
PAGE 37 & 38SUSTAINABILITY REPORT 2022

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.
Our ambition is to adopt 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.
One of our main packaging items is the 25kg
multi-wall bag that we use for our bulk milk powders.
PAGE 39 & 40SUSTAINABILITY REPORT 2022

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.
FY22 INITIATIVES
Waste management improvements
A key waste improvement project
commenced in June 2022 at Synlait
Dunsandel in collaboration with our
waste management provider.
Project scoping identified that 30%
of the site’s general waste could be
recycled. The first step, completed in
FY22, was to assign individual waste
streams and systems to individual
business units. The second step,
which is planned for FY23, will be
to optimise the operations of each
business unit specific to its waste
streams. The site will also install a
compactor system to reduce the
volume of general waste by a ratio
of 3:1 and increase waste transport
efficiency.
Our waste provider also conducted
a waste audit of Dairyworks, which
enabled the development of a plan to
transition some waste streams from
landfill to recycling.
DAF sludge recovery
One of the waste by-products from
the dairy industry is commonly known
as Dissolved Air Floatation (DAF)
solids, or DAF sludge. Most DAF
solids generated at our Pokeno and
Dunsandel sites are provided to local
pig farmers as stock food.
During FY21 and FY22, Synlait did
a review of all the existing and
emerging alternative options for
DAF disposal and recovery. We
now aim to study the feasibility of
the most promising options, such
as biodigestion, which creates both
renewable energy and fertiliser from
organic waste.
Life Cycle Analyses
Life Cycle Analyses (LCAs) cover the
entire lifecycle of a product to assess
their environmental impacts. These
impacts include water consumption,
non-renewable energy and minerals,
GHG emissions, land-use and
ecotoxicity.
In FY22 Synlait completed an LCA for
its anhydrous milk fat (AMF) drums
using the Ecodex tool. In previous
years, we have completed LCAs for
three of our other key products.
Dairyworks also used Ecodex to
analyse the environmental impact
of block cheese and grated cheese,
which represent 84% of Dairyworks’
total product volumes. We created
several scenarios based on different
packaging options to compare their
environmental benefits.
Transition to new 25kg powder bags
One of our main packaging items
is a 25kg milk powder bag which is
composed of an outer paper bag
and an inner plastic liner. In FY21, we
explored various options to improve its
environmental profile.
Following trials to test alternative
bag options, in FY22 we decided to
transition to a bag that is FSC certified,
with 8% less paper and 20% more
recycled content.
Next year, we will endeavour to find a
solution for the washing and recycling
of our "contaminated" liners, which
contain residues of milk powders.
Dairyworks' packaging projects
Improving the environmental profile
of cheese packaging is challenging.
Multiple layers of plastic are used to
maintain product quality and enhance
shelf-life. However, these layers often
prevent recyclability.
In FY22, Dairyworks developed a
2025 sustainable packaging roadmap
and achieved further improvements
to its products’ packaging.
Following comprehensive trials,
Dairyworks completed a phased
transition to downgauge materials for
all its 5kg foodservice products. This
will lead to a 30% packaging material
reduction and enable the products to
be recycled.
A three-year project to downgauge
the material used for all block
cheeses was also completed in
July 2022. This has achieved a 23%
reduction in packaging material
across all block cheese products.
Synlait’s Swappa Bottle
Over the last 12 months we piloted
our own Synlait branded fresh milk
in reusable stainless-steel bottles.
The trial in two supermarkets in
Christchurch was very successful,
however, we have made the difficult
decision to cease production of
Synlait Swappa Bottle.
A significant investment was needed
to take Swappa Bottle from a pilot
product to a nationwide proposition,
and the economics to do this did not
stack up. Developing new ideas is
a core part of Synlait’s DNA and
our purpose to do milk differently.
We remain committed to this.
FY22 CIRCULAR ECONOMY RESULTS
1
FY23 PLANS
• Finalise waste improvement projects at Synlait Dunsandel and Dairyworks,
and consider rolling out to other manufacturing sites.
• Complete feasibility studies for the disposal and recovery of our DAF solids.
• Continue implementing the Dairyworks sustainable packaging roadmap.
Synlait reusable, recyclable
or compostable packaging sold,
by weight*
Dairyworks reusable, recyclable
or compostable packaging sold,
by weight*
Total non-hazardous
waste recycled or recovered*
FY18FY19FY20FY21FY22FY18-FY22
evolution
Total waste produced*
2
4,296 MT5,249 MT8,242 MT6,744 MT7,099 MT65%
- Non-hazardous*3,838 MT4,665 MT7,930 MT6,425 MT6,721 MT75%
- Hazardous*458 MT584 MT312 MT319 MT378 MT-18%
Total waste production per tonne of product*31kg34kg43kg31kg34kg11%
Total non-hazardous waste by type of treatment*3,838 MT4,665 MT7,930 MT6,425 MT6,721 MT75%
- Recycled*1,986 MT2,132 MT3,032 MT2,095 MT3,667 MT86%
- Recovered*
3
1,252 MT1,505 MT3,237 MT3,031 MT2,064 MT65%
- Landfilled*600 MT1,028 MT1,661 MT1,299 MT1,367 MT128%
Non-hazardous waste recycled*84%78%79%80%85%1%
LCA sales coverage*
4
-45.1%50.6%69.5%71.8%-
FY19
FY20
FY21
FY22
78%
79%
80%
85%
FY18
84%
FY28
Target
99.1%99.2%
FY21FY22
1
Unless otherwise stated, the below results include all Synlait and Dairyworks manufacturing sites, and leased warehouses where applicable.
2
The increase in waste production over the FY18-22 period is mainly due to an increase in production as well as the inclusion of Dairyworks
in our reporting scope.
3
By “recovered”, we mean that the nutrients in the waste streams served a useful purpose and replaced other materials.
Recovered waste streams include DAF, Waste Activated Sludge and whey.
4
These are the Synlait sales generated by Synlait product categories (excluding Dairyworks) for which an LCA was conducted.
99
82.3%
FY22
*
Indicates that data quality was reviewed by an independent third party.
PAGE 41 & 42SUSTAINABILITY REPORT 2022

Our process technician inspects the dryer, following
our COVID-19 control protocols in early 2022.
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 and
people 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.
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
wellbeing, with an aspiration
of zero harm.
PAGE 43 & 44SUSTAINABILITY REPORT 2022

The launch of Synlait Safe, our new internal health
and safety campaign.
SAFE
WORKPLACE
A safe workplace is fundamental to
how we operate at Synlait. In the
last financial year, we have renewed
our vision and areas of focus for
safety and wellbeing at Synlait.
We continue to mature our safety
and wellbeing culture through the
‘Employer of Choice’ enabler which
forms part of our refreshed strategy.
Our goal remains the same, to
ensure everyone gets home safe,
every day, but our new tagline
is: Work Safe, Home Safety.
We’re focusing on building a safe
workplace by ensuring our team
members are fit for work, have the
equipment and materials they need
to do their job safely, and understand
our risks and critical controls for
keeping them safe. This concept
has become holistic and extends
beyond physical safety, through
incorporating health and wellbeing.
It is a non-negotiable at Synlait that
the mental and physical wellbeing
of our people is being supported in
addition to their physical safety.
A healthy and safe workplace is
the responsibility of all our people.
Our leaders demonstrate care for
the safety and wellbeing of their
teams, and team members look out
for each other. Health and safety
at Synlait means taking ownership
and responsibility, modelling
safe and healthy behaviours,
and building and sticking to our
policies, procedures, and systems.
PAGE 45 & 46SUSTAINABILITY REPORT 2022

SAFE WORKPLACE
TARGETS
Total Recordable Injury Frequency
Rate (TRIFR) of 10.0 by end of FY23.
FY22 INITIATIVES
Launch of Synlait Safe 702
We have developed a new internal
health and safety campaign, Synlait
Safe, which was launched in
November 2022.
Synlait Safe is about confirming
Synlait’s commitment to the
continuous improvement of our high
standards for health and safety.
Synlait Safe means the health, safety,
and wellbeing of our team is number
one, and is embedded in our culture.
Our vision is to ensure:
• We invest in protecting our
people.
• Everyone understands critical
risk controls and how to keep
safe.
• Our leaders demonstrate care
for the safety and wellbeing of
their teams, and we look out for
each other.
• Safety is continually improved by
monitoring and measuring what
matters.
• Our standards are high and
communicated.
• Our culture is visible and
consistent in all Synlait sites.
The launch of Synlait Safe resets our
safety journey. We are resetting our
minimum expectations for controlling
critical risk, improving our induction
and training requirements, and
stepping up our focus on wellbeing
to ensure we set our people up for
success.
We introduced a new health and
safety module in Synlait’s Leadership
Essentials course for frontline
leaders to support the Synlait Safe
commitment, called Achieving
Zero Harm. Our core Synlait Safe
campaign is also supported by a
psychology-based behavioural safety
training programme to be released
in FY23.
COVID-19 response
This was a key priority for Synlait,
to minimise the spread of COVID-19
transmission, and ultimately protect
our people, their families, and our
operations during the pandemic.
Our control measures included
limiting and segregating site access,
increased hygienic cleaning and
sanitation practices, and the use
of advanced personal protection
equipment and physical distancing
controls. No more than 5.8% of our
team were away with COVID-19 at
any one time.
Our COVID-19 Response
Management team conducted
regular assessments of our risk
profile against the New Zealand
government’s public health
measures. Following a period
of consultation with our people
and a risk assessment, the Group
implemented a COVID-19 Workplace
policy in FY22. This included the
introduction of our Rapid Antigen
Testing programme and Vaccination
Policy.
Our experience and lessons in
managing COVID-19 have been
captured in our Pandemic Playbook.
With the inevitable risk of further
unforeseen health events, this
resource will be invaluable to
the protection of our people and
operations.
Wellbeing
As part of our continued monitoring
of our team’s wellbeing, Synlait
included a wellbeing-centric question
as an additional section in our July
2022 Gallup employee engagement
survey. This section had several
questions around wellbeing, such
as rest and recovery, workplace
stress, employee worry and where
to access resources. There was
also opportunity for employees to
communicate what we need to add
or do better. This informed a new
wellbeing programme that was
implemented in September 2022.
Health monitoring
Synlait engaged an occupational
health nurse to reinstate our health
monitoring programme in November
2021, as it was previously paused
due to COVID-19 restrictions. The
programme includes routine health
checks for our staff, such as hearing
and lung function assessments.
From September 2021, we also
implemented environmental
monitoring, such as noise, dust,
fumes, and ergonomics monitoring.
At Dairyworks, a new onboarding
process was introduced in FY22,
including physical assessment
and identification of knowledge
gaps. Specialised injury prevention
guidance was developed for every
workstation at Dairyworks, and is
employed in training. Furthermore,
98% of the Dairyworks workforce
completed annual comprehensive
health assessments.
FY22 SAFE WORKPLACE RESULTS¹
FY23 PLANS
• Roll-out and monitor the uptake of our Synlait Safe and Wellbeing programmes.
• Launch our Critical Risk ‘Safety Essentials’ and critical control verification programme.
• Continue reviewing and adjusting our COVID-19 response.
• Dairyworks to roll out refreshed health and safety strategy. This prioritises focus
on TRIFR, critical risks, health and safety actions, and safety leadership and culture.
Health and safety actions
completed before due date*
1
Safe Workplace results exclude Synlait China.
2
When employees log a health and safety risk or incident onto our portal, actions are assigned to the relevant staff with a due date.
3
High turnover, COVID-19 and a high action identification period led to delays in action close-out.
4
Committee structures were impacted by change in membership following reorganisation in FY22. We also focused on our critical
risk programme and TRIFR.
5
Due to COVID-19 controls, in-person meetings were compromised in FY22. These were re-instated in August.
6
Synlait has re-introduced TRIFR as a Key Performance Indicator, recognising it as a significant industry-accepted benchmark
metric to monitor and compare our safety performance alongside our other key metrics.
FY21FY22
Health and safety actions completed before due date*
2
58%49%
- Synlait*60%58%
- Dairyworks*
3
39%27%
Employee fatalities – Group*00
Health & Safety Committee meetings held as planned*95%38%
- Synlait*
4
95%41%
- Dairyworks*
5
100%8%
TRIFR*
6
--
- Synlait*2115
58%
SYNLAIT
27%
DAIRYWORKS
*
Indicates that data quality was reviewed by an independent third party.
PAGE 47 & 48SUSTAINABILITY REPORT 2022

A member of our logistics team alongside whole
milk powder stored in one of our dry stores.
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 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
supporting engagement, talent
development, and organisational
culture through building a
new leadership development
programme that better equips
our people leaders. We have
also introduced new technical
development opportunities for
our operational teams.
PAGE 49 & 50SUSTAINABILITY REPORT 2022

FY22 INITIATIVES
Employee engagement
Due to COVID-19 and a significant
reduction in product demand from
our largest customer, The a2 Milk
Company, unfortunately we had to
resize our organisation. Demand has
subsequently started to recover, and
we are now progressively rebuilding
our workforce.
The organisational reset in early FY22
resulted in a higher rate of turnover
during the financial year. Since then,
a key focus has been to rebuild
engagement through equipping our
people leaders with further skills and
support in the three following areas:
1. Engagement action plans:
The goal of these plans is for
teams to collaboratively analyse
their team engagement results,
identify areas of opportunity for
improvement, and agree on key
actions to improve results.
2. Perform and Grows: Perform and
Grow is the system we use for
employees and their managers
to jointly define performance
goals and a development
plan. Guidance was given to
people leaders on the effective
completion of monthly Perform
and Grow check-ins, as well as on
specific aspects such as creating
attainable and measurable goals
with their teams.
3. People management: Bite-
sized learning sessions were
introduced to provide focused
guidance to people leaders on
key responsibilities, such as
Perform and Grows, development
planning, remuneration, retaining
talent, and managing leave.
Embedding stronger leadership
Significant work was completed to
refresh how we develop our leaders,
with a focus on frontline first-time
leadership capability. This resulted
in a new leadership development
programme with three stages:
• The first stage is a refreshed
introductory course, named
Leadership Essentials, comprised
of four modules: management
essentials, health and safety,
food safety and quality, and Lead
at Synlait. The latter provides
important leadership skills, such
as the completion of Perform and
Grow reviews or identification of
harassment and bullying.
• The second stage is Adaptive
Leadership, including courses
on advanced situational
leadership, accelerating change
and transition, and commercial
acumen.
• The third stage is the Boss
to Coach programme, run
independently by an external
performance management
consultancy. This is comprised of
two four-day sessions per year,
and support in between these to
consolidate learning.
Developing further capability
Synlait has committed to developing
the capabilities of our operational
team members, with qualifications that
will further strengthen their repertoire
of skills and experience. We have
invested in the following programmes:
1. New Zealand Diploma in Dairy
Technology: Each year, Synlait
fully funds the completion of this
diploma by Synlait employees.
The diploma is targeted towards
employees seeking to develop
a career in the dairy industry. In
FY22, eight employees received
the diploma.
2. Certificate in Competitive
Systems and Practices: This
programme is designed to train
people on lean and competitive
manufacturing systems. Synlait
has supported fifteen participants
to take on this study part-time.
Learning is integrated into the
roles of the participants, with
a combination of in-classroom
training and practical projects
where theory is applied to
business-as-usual responsibilities.
3. Primary ITO Dairy Processing
Qualifications: Primary ITO
leads work-based training in
the New Zealand food and fibre
sector. In FY22, we created
a technical development
programme for our process
technicians in manufacturing.
Participants will achieve the Dairy
Processing Levels three and four
qualifications, which will then be
recognised in our performance
review system.
Dairyworks cultural transformation
In June 2021, a new culture
framework was rolled out at
Dairyworks. The framework is
comprised of the different values
and behaviours encouraged in the
wider organisation. It is embedded
into every meeting, and every review
cycle for development.
The new framework has introduced a
reward and recognition system in the
operations team. An award is given
out monthly to recognise a person
who stands out for role-modelling the
Dairyworks values and behaviours.
FY22 TALENT ATTRACTION AND DEVELOPMENT RESULTS
FY23 PLANS
• Restabilise our teams and improve our overall engagement ratio.
• Improve organisation-wide team action planning sessions.
• Roll out our new Leadership Essentials programme.
• Continue to support development opportunities for our people.
Employee turnover rate – Group*
2
13%
FY20
10%
FY19
18%
FY18
FY18FY19FY20FY21FY22FY18-FY22
evolution
Engagement ratio

(ratio of engaged staff to actively disengaged staff)*
1
3.75:13.58:15.2:15.3:14:9:1-
Employee turnover rate*---22%25%-
- Synlait*18%10%13%14%23%28%
- Dairyworks*---48%34%-
1
Excludes Synlait China and Dairyworks.
2
FY21-FY22 is Group, and prior to this is Synlait only.
3
Restated due to an error in the FY21 publication.
FY22 Engagement ratio –
Engaged staff:actively disengaged staff
(excluding Synlait China and Dairyworks)*
5.301
5.20
4.90
1
1
FY21
FY20
FY22
25%
FY22
22%
FY21
3
*
Indicates that data quality was reviewed by an independent third party.
PAGE 51 & 52SUSTAINABILITY REPORT 2022

Our Dunsandel team gather for the launch of Synlait
Safe, our new internal health and safety campaign,
next to the pink pathway.
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 they belong and that their
uniqueness and contribution
is appreciated. When this
is achieved, we will have a
workplace where our people
feel empowered to grow. This
will help us to be creative and
agile, to reduce risk, and to
drive better business outcomes.
SUSTAINABILITY REPORT 2022PAGE 53 & 54

FY22 DIVERSITY AND INCLUSION RESULTS
1
FY23 PLANS
• Develop a system to specifically support and improve Diversity and Inclusion
at Synlait using the benchmarking conducted in FY22.
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.
FY22 INITIATIVES
Creating a respectful workplace
The Lead at Synlait course in Stage
1 of our new leadership programme
(see previous chapter) now
includes a module called Creating a
Respectful Workplace, developed in
FY22. This is expanding the way we
train our leaders to raise awareness
on the importance of a respectful
and psychologically safe workplace,
free from discrimination.
This module educates our leaders on
how to create a respectful, inclusive,
fair, and transparent environment at
work. Content includes the teaching
of anti-harassment and anti-bullying
mechanisms.
Diversity and Inclusion
in engagement survey
In May 2022, Synlait added a
Diversity and Inclusion section to
its quarterly employee engagement
survey. Alongside disclosing their
ethnicity, our employees responded
to the listed statements below,
answering on a scale of strongly
disagree to strongly agree.
• I always trust my company to be
fair to everyone.
• I have the same opportunities
for advancement as other
colleagues in my organisation.
• At work, I feel comfortable being
myself.
• If I raised a concern about ethics
and integrity, I am confident my
employer would do what is right.
• Everyone at this company is
treated fairly, regardless of ethnic
background, race, gender, age,
disability, or other differences not
related to job performance.
• At work, people are always
treated with respect.
• Diversity and inclusiveness
issues are openly discussed.
The response rate was 80%, which
enabled us to model data via site,
gender, and management level, as
well as across the wider organisation.
We continue to build a greater
understanding of the ethnicity
component of our workforce.
These responses are driving further
development in our diversity and
inclusion workplan, such as the
addition of the Creating a Respectful
Workplace module in our leadership
programme.
This section of the survey will now
be repeated annually each May to
monitor progression.
Our workplace policies to
support diversity and inclusion
Matuā, our parental leave policy,
continues to be a unique fixture
in New Zealand and at Synlait. 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.
In FY22, 41 primary carers benefited
from full pay for 26 weeks and
over 30 families benefited from the
childcare subsidy.
Matuā plays a core role in ensuring
Synlait is an attractive place to work
for parents.
Gender pay gap – Synlait only*Women as managers or
senior specialists – Group*
FY18
FY19
FY20
FY21
2
FY22
34%
36%
37%
37%
37%
FY18FY19FY20FY21FY22FY18-FY22
evolution
Gender pay gap*
- Synlait*18%13%13%10%14%-23%
- Dairyworks*---32%29%-
Women as managers or senior specialists – Group*---37%37%-
- Synlait*34%36%37%36%37%9%
- Dairyworks*---38%34%-
Women in senior leadership team – Group*---24%25%-
- Synlait*14%14%25%31%27%93%
- Dairyworks*---0%20%-
FY18
FY19
FY20
FY21
FY22
18.3%
13.1%
12.5%
10.2%
14.0%
FY23
Target
1
All Diversity and Inclusion results exclude Synlait China.
2
FY21 and FY22 percentages are a weighted average across both Synlait and Dairyworks.
<5%
*
Indicates that data quality was reviewed by an independent third party.
PAGE 55 & 56SUSTAINABILITY REPORT 2022

One of our farmer suppliers carries native plants
supplied by our Whakapuāwai programme to plant
on his farm.
CULTURE AND
COMMUNITY
The backbone of our community
outreach programme is Synlait’s
Whakapuāwai initiative.
Whakapuāwai translates to
‘everybody thriving’, which
underpins our purpose Doing Milk
Differently for a Healthier World.
Whakapuāwai is supported by a
plant nursery that we have built
next to our Dunsandel facility. 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; and
• Our local communities, who
also wish to restore areas of
shared value.
SUSTAINABILITY REPORT 2022PAGE 57 & 58

FY22 CULTURE AND COMMUNITY RESULTS
FY23 PLANS
• Update our Whakapuāwai programme strategy, including setting new targets and developing a new roadmap.
FY22 INITIATIVES
Synlait Dunsandel nursery
Operating since December 2020, the
Synlait Dunsandel nursery facilitates
the growth of native seedlings into
plants. It also facilitates the storage
and ergonomic manoeuvring of plants
prior to being collected and planted
on farms.
Synlait’s more challenging financial
performance in FY21 meant we
temporarily reduced the budget
allocated to Whakapuāwai. 44,664
seedlings were grown in the
Dunsandel nursery in FY22. We intend
to increase this to 55,000 in FY23.
All new starters at Synlait visit the
Whakapuāwai nursery to plant and
learn about the initiative in our
induction programme, Synlait101.
However, there were very few
Synlait101 courses organised during
the year due to COVID-19, which
meant we had limited opportunities
for planting. This year, 144 plants were
planted in the 15ha land adjacent to
the nursery by the efforts of our new
employees.
Farms
In FY21, we recognised that the
end-to-end process of successfully
growing seedlings to planting them
out requires specialised expertise.
To ensure the survival and optimal
growth rates of seedlings, effective
site preparation, favourable species
selection, quality planting and
sufficient maintenance are essential.
This, alongside the impact of the
pandemic, led to the decision to
stop employee voluntary on-farm
planting. Instead, we now contract
experts to ensure higher quality
planting, and longevity of the plants.
We are nevertheless planning to
find alternative ways to continue
engaging our staff community in this
programme.
To help us maintain and grow on-
farm planting during COVID-19,
we employed Brailsfords, a local
Canterbury company who specialise
in the design and development
of native plantings on farms, to
support Whakapuāwai. We now
also partner with an additional six
local contractors who manage the
planting process on-farm, including
site preparation and maintenance.
This has improved efficiency
and increased the profile of the
programme in the local community.
The significant flooding in Canterbury
in May 2021 meant that a proportion
of the on-farm planting in FY22 was
focused on re-planting two large sites
that were destroyed. This remedial
effort meant that less resources
were available for new plantings.
Approximately 4,000 plants had to
be re-planted at these sites.
42% of our supply base have now
engaged in Whakapuāwai’s on-farm
planting programme.
Community
In FY22, Synlait contributed 2,000
plants to the Lion’s Club Walkway
in Methven, and 1,000 plants to
the Lowlands Hinds Catchment, to
support long-term community and
catchment projects that enhance
biodiversity and improve water
quality in Canterbury.
The pandemic meant that, once
again, minimal engagement could be
made with local schools. However,
an additional 620 plants were
donated to Canterbury community
groups, including school fundraisers.
Strategy review
In July 2022, we commenced a
review of Whakapuāwai’s broader
programme strategy. The scope
includes how we approach on-
farm planting projects, reviewing
our plans for the Whakapuāwai
site at Dunsandel to ensure they
remain aligned to our growth
ambitions, expanding our community
engagement, and reviewing our
internal engagement planting
programmes. The review will be
completed by the end of FY23.
FY19FY20FY21FY22FY19-FY22
evolution
Investment in Whakapuāwai*$365,758$953,876$559,630$245,724-33%
Staff participation in Whakapuāwai Day*
1
--22%17%-
Total number of native trees and shrubs supplied by the nursery*--54,29044,664-
- to the Dunsandel Whakapuāwai area*--168144
- to Synlait dairy farms*--52,80240,900-
- to other areas in the community*--1,3203,620-
1
The scope of this indicator is limited to Synlait Dunsandel as the Whakapuāwai
programme is not yet available to employees based in other sites.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 59 & 60SUSTAINABILITY REPORT 2022

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.
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.
Synlait employees stand in the space where
new nutritional products will be packaged
and stored once construction is completed at
Synlait Pokeno.
SUSTAINABILITY REPORT 2022PAGE 61 & 62

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. COVID-19
also served to enhance consumer
interest in food safety and quality.
At Synlait, one of our core mantras
is Everyone Owns Quality. Every
day we require complete supply
chain integrity – from fresh milk
processing for our 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.
A process engineer weighs Synlait's lactoferrin at
our Dunsandel facility.
PAGE 63 & 64SUSTAINABILITY REPORT 2022

FY22 INITIATIVES
Right First Time
Right First Time (RFT) manufacturing
is the best guarantee for satisfied
customers and shareholders. As a
metric, RFT is useful to ensure focus is
placed where it is needed.
In FY22, we achieved a decrease in
non-right first time versus FY21, and
a reduction in product reclassification
due to non-right first time. This
shows not only that our projects are
successfully increasing RFT, but that
we are also better handling product
that is not RFT. Other benefits of this
include a reduction in the frequency
of extra environmental and product
testing.
A significant programme of work
in FY22 was the development of
additional metrics to support RFT, to
enable more comprehensive analysis
in this area. These metrics include
‘Right Last Time’ (RLT) and ‘Cost
to Quality’ (CTQ). RLT refers to the
product that is not downgraded, while
CTQ refers to the cost difference
between RFT and RLT.
These new metrics create a full
picture and encourage focus on
decision-making throughout the entire
process.
FSSC 22000 certification
FSSC 22000 is an advanced
framework employed to manage
food safety, based on existing ISO
standards. In FY22, we maintained our
FSSC 22000 certification for Synlait
Dunsandel and recertified this quality
standard in May 2022. This included
certifying our Advanced Dairy Liquid
Packaging Facility for the first time
since commissioning this site in 2019.
We are in the process of achieving
FSSC 22000 certification at our
Synlait Auckland and Pokeno sites.
This auditing is a two-stage process.
Stage one is a desktop audit focused
on our policies and procedures and
was passed in July 2022. Stage two,
in which the implementation of our
policies will be investigated in-depth,
will be in November 2022.
Finally, Dairyworks achieved FSSC
22000 certification in November
2021. Strengths highlighted during
certification were the in-depth risk
assessments completed by the wider
Dairyworks teams, and the visibility
the Dairyworks management team has
over the programme. This certification
will open Dairyworks to new markets
and customers.
Progress on SynQ and our
Food Safety and Quality culture
As a part of the wider Synlait culture
transformation work described in the
‘A Healthier Synlait’ chapter, building
the foundations of a strong Food
Safety and Quality (FSQ) culture
continues to be a key focus at Synlait.
SynQ is the name of the framework
we use to develop, manufacture, and
deliver safe and high-quality product
for our customers. SynQ also ensures
we meet our regulatory requirements.
In FY22, key achievements included
launching an in-house database for
Synlait FSQ documentation. This
platform replaced Synlait’s original
system for storage of all Quality and
Food Safety documents. This new
system enables greater flexibility and
ease of use, in addition to real-time
collaboration.
Additionally, Food Safety and Quality
modules have been developed as
part of the new leadership training
programme due to be rolled out in
FY23. This will enable leaders to
effectively build FSQ culture within
their teams, to drive improvements.
Synlait101, our Synlait introduction
course all new starters complete, has
also been re-invigorated to include a
greater focus on SynQ.
Quality at Dairyworks
A review of the Dairyworks Hornby
Cheese Plant HACCP was conducted
in February 2022. The HACCP format
was re-configured into a modern and
simplified format, for greater ease of
interpretation. The new format is fit for
purpose, with individual sections for
individual process lines, and is more
easily audited.
This HACCP review was conducted
collaboratively across functions,
including representatives from New
Product Development, Manufacturing
and Engineering teams. This work
led to a wider understanding of
its purpose and controls being
developed across the business.
Risk Management Programmes (RMP)
are a fundamental requirement for
food manufacturers. The RMP is
audited on a frequency dependent
on the level, or Step, of the site. The
higher the Step, the better the site is
performing and the less frequent the
audits. In FY22, all Dairyworks sites
and their new cool store achieved the
highest steps possible.
FY22 SAFE FOOD RESULTS
FY23 PLANS
• Focus on building a stable foundation for SynQ and FSQ Culture at Synlait.
• Action planned SynQ improvements in second half of FY23.
Percentage of production covered
by a 2nd or 3rd party assessed
HACCP programme*
100%
FY21
100%
FY22
Audits completed for critical
and high-risk suppliers who
were due for their three-yearly
audit (excluding Dairyworks)*
FY19
FY20
FY21
FY22
22.2%
26.3%
63.6%
Percentage of production
covered by FSSC 22000*
FY20
FY21
FY22
74%36.2%
65%
98%
FY18FY19FY20FY21FY22
Number of consumer recalls of products for food safety reasons*
1
00110
*
Indicates that data quality was reviewed by an independent third party.
1
Includes Synlait and Dairyworks
PAGE 65 & 66SUSTAINABILITY REPORT 2022

HEALTHY
FARMING
We have direct supply agreements
with 282 farmer suppliers in the
Canterbury and Waikato regions.
We continue to know them by name,
not as a number. We take pride in
strengthening and maintaining our
relationships with our suppliers.
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.
Animal health and wellbeing is one of the four pillars
of our Lead With Pride™ standard.
SUSTAINABILITY REPORT 2022PAGE 67 & 68

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.
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.
We also provide our entire farmer
supply base with technical support,
including tools and guidance
documents, and the expertise of
our team of sustainability advisors.
Although COVID-19 has made this
more difficult, we also support a
strong sense of community through
organising supplier events.
FY22 INITIATIVES
Lead With Pride™ standard
review and developments
In September 2021, the Milk Supply
team began reviewing the Lead With
Pride™ standards and verification
methods.
Farmer engagement and
comprehensive analysis of the
standards led to the simplification of
our requirements, to only retain those
where stakeholder value was clearly
identified. Our verification system
was also improved, the aim being to
reduce the complexity and pressures
of our auditing system on farmers.
To achieve improvements while
maintaining the high reputation of
Lead With Pride™, farmers and key
stakeholders, such as auditing bodies
and ISO standard representatives,
were involved at every stage.
The most significant improvement
made was the introduction of primary,
secondary, and tertiary audits. After
two years in Lead With Pride™, farmers
will have a reduction in the number
of requirements audited. These farms
will also have the frequency of a full
audit reduced from annual to once
every three years if they meet Farm
Environment Plan (if applicable) and
milk quality targets.
We also made changes to the
incentive scheme. Now, the incentive
for achieving over 85 points at audit
is paid on a pro-rata basis for each
pillar audited. This means the farmer
is rewarded for every pillar where
the 85-point audit score has been
met, rather than needing to meet the
criteria for all pillars to receive the
incentive.
The new system went live in June
2022 and has been well received.
We appreciate the input our farmers
have given to this process, and we will
continue to monitor its performance.
Lead With Pride™ Live
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.
In January 2022, we appointed one of
our farmer suppliers to act as a central
person between our farmers, our Milk
Supply team, and FarmIQ.
We focused on improving the
turnaround time to resolve system
issues and on strengthening
processes for data input and
communication between FarmIQ and
our farmers.
Our farmer representative worked on
improving the process for lodging and
investigating on-farm issues, resulting
in significantly reduced time between
issue lodging and resolution, and
better support for farmer suppliers.
Synlait Dunsandel farmland
In March 2020, Synlait acquired a
582-hectare farmland adjacent to our
Dunsandel facility. This farmland is
divided into two farms, D1 and D2.
Until May 2021, the two farms were
leased back to the supplier who
previously operated them. From May
2021 until January 2022, no stock
was on the sites during planning
processes for the farms. From
January until June 2022, the farms
grazed 200 young stock for the
nearby Lincoln University.
A team of nine people has been
established across the two farms.
With a target of 1,940 cows, so far
1,880 cows have been purchased as
stock for the two farms.
In addition to setting up the teams
and stock to operate the farms, we
have investigated how to improve
the farms’ assets. On D2 we
installed an innovative technology
for refrigeration, which uses CO
2

gas instead of Hydrocarbon for
refrigeration. This system offers
annual cost savings of 20% and
improves milk quality due to a lower
milk storage temperature.
FY22 HEALTHY FARMING RESULTS
FY23 PLANS
• Continue improving Lead With Pride Live (Powered by FarmIQ) to assist farmers
with both the Lead With Pride™ programme, and farm management in general.
• Stabilise the operations of the Synlait Farms, including optimising farm systems
and stocking rates, and improving farm irrigation.
1
There were one significant non-compliance in the Waikato region, and one in Canterbury.
Lead With Pride™ certified milk
(as of 31 July 2022)*
Lead With Pride™ certified farmer
suppliers (as of 31 May 2022)*
FY18FY19FY20FY21FY22FY18-FY22
evolution
Average length of farmer partnership with Synlait
(as of 31 May)*
- Canterbury*-6.87. 88.08.9-
- Waikato*--1.01.92.7-
Percentage of farms with significant environmental
non-compliances (as of 30 June)*
1
-2%3%1%1%-
Lead With Pride™ certified farmer suppliers
(as of 31 May)*
28%49%57%62%69%148%
Lead With Pride™ certified milk (as of 31 July)*33%51%65%72%79%139%
FY18FY18
FY19FY19
FY20FY20
FY21
FY22
FY21
FY22
33%28%
51%49%
65%57%
72%
79%
62%
69%
*
Indicates that data quality was reviewed by an independent third party.
PAGE 69 & 70SUSTAINABILITY REPORT 2022

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.
Right from their farm entrance, Synlait's Lead With
Pride™ certified farmers stand out.
PAGE 71 & 72SUSTAINABILITY REPORT 2022

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.
A bird's eye view of Synlait’s 600m long rail siding
hard stand where up to 30 wagons can be loaded
with containers filled from Dry Store 4.
SUSTAINABILITY REPORT 2022PAGE 73 & 74

SUSTAINABLE
SUPPLY TARGETS
100% of our procurement
tenders will include social and
environmental criteria by 2028.
FY22 INITIATIVES
Optimising our supply chain
The rail siding and Dry Store 4 that
were commissioned last year at
Synlait Dunsandel are on track to
saving the company more than the
predicted 880 tonnes of carbon
dioxide per year, a notable success
from an environmental sustainability
perspective.
In FY21, we noted that extra
efficiency gains are made if the
export dairy-grade containers arrive
at Synlait Dunsandel full of imported
ingredients and leave filled with
our own finished powder products.
This is made possible when logistics
managers can match suppliers’
shipping arrangements with Synlait’s
shipping providers.
However, in FY22, consistent world-
wide shipping shortages have been a
significant challenge for our logistics
and export teams. These teams
have continuously problem solved to
ensure shipping timeframes are met,
and the process is of acceptable
quality, despite these shortages. Due
to this circumstance, efficiency gains
are going to be further progressed
in FY23.
Sustainable procurement
In FY21, Synlait adopted a more
formalised approach to integrating
sustainability into procurement
policies and processes. In FY22, all
procurement tenders had a desktop
assessment completed to calculate
the level of sustainability risk and
impact associated with the supplied
product or service.
If the outcome of the desktop
assessment concludes the risk is low,
a sustainability question bank is used.
Questions are centred on common
social and environmental issues, for
example, human rights, greenhouse
gas emissions, or product sustainability
certifications.
If the risk is determined to be 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 ranges between 5% and 30%.
A tangible example of recent tenders
that had customised sustainability
assessments is our coal supply. A
substantial weighting was allocated to
greenhouse gas emissions based on
our required steam energy demand.
A positive outcome of this process is
the enabling of future collaboration
between Synlait and our suppliers on
sustainability initiatives. We anticipate
progression in this area in FY23.
Alongside the potential collaboration
with our suppliers, our next step is to
incorporate sustainability criteria into
other components of the procurement
cycle, such as supplier reporting,
reviews, and audits.
FY22 SUSTAINABLE SUPPLY RESULTS
FY23 PLANS
• Continue optimising the rail siding so that it is fully utilised and efficient.
• Continue the use of the sustainability screening process in procurement.
• Integrate sustainability into other components of the procurement cycle.
FY18FY19FY20FY21FY22FY18-FY22
evolution
Non-milk supplier expenditure with New Zealand
registered companies (excluding Talbot Forest Cheese)*
- Synlait*
1
86.3%88.4%86.8%N/AN/A-
- Dairyworks*---94.6%90.1%-
Procurement tenders issued during
the year including both social and
environmental criteria*
87%
FY21
80%
FY22
1
Synlait will disclose this again in FY23. Due to the implementation of our new ERP system,
this data is unavailable for FY22 as historical data prior to FY23 is not able to be extracted.
*
Indicates that data quality was reviewed by an independent third party.
PAGE 75 & 76SUSTAINABILITY REPORT 2022

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.
Our B Corp™ certification sign greets all on entry to
Synlait Dunsandel.
PAGE 77 & 78SUSTAINABILITY REPORT 2022

TRANSPARENCY
TARGETS
120 points in the B Corp Impact
Assessment by 2029 (our third
recertification).
‘A’ Score in the CDP Climate
Change questionnaire by 2028.
FY22 INITIATIVES
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.
In February 2022, Synlait was rated
25.4 by Sustainalytics, an increase
from the previous year (24.5). 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 25.7.
Sustainalytics analyses a wide range
of ESG indicators to arrive at the
rating. These indicators include
governance, water management,
carbon intensity, employee
engagement and turnover, quality
certifications, and waste management.
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. The
CDP is a not-for-profit organisation
that encourages companies around
the world to measure, manage,
disclose, and ultimately reduce their
greenhouse gas emissions.
Annually, Synlait completes the CDP
Questionnaire with both quantitative
and qualitative information. This
includes our climate-related
governance, risks, opportunities, risk
management, targets, performance
and engagement with suppliers and
customers. Our disclosure can be
found on the CDP website.
In 2021 Synlait weakened its score
from B in 2020 back to a C. This led
us to invest more time and effort
into the completion of the 2022
questionnaire, including more detailed
financial analysis of our top climate
risks and opportunities. We hope that
this will result in an improved rating
later in the year.
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.
B Corps™ need to recertify every three
years, so we have been implementing
our plans to improve our scores
across all five sections of the B Corp™
assessment to make sure we remain
certified in 2023. This is being done
through engagement across our entire
organisation.
A change from our initial certification
is the inclusion of Dairyworks in the
scope of our recertification. The
Dairyworks team put together a
detailed improvement plan in FY21,
to prepare for 2023. A key step was
the development of a Dairyworks-
specific Sustainability Roadmap. We
completed a materiality assessment
and identified the most important
social, environmental, and economic
topics, from both business and
external stakeholder perspectives.
We then developed recommendations
for targets, workstreams, and
timelines across the most material
environmental topics, such as
sustainable packaging, waste, and
responsible procurement.
Climate-related
reporting standards
In October 2021, the External
Reporting Board of New Zealand
(XRB) began developing a set of
three standards for climate related
disclosures. The standards are being
based on the Financial Stability
Board’s Taskforce on Climate-related
Financial Disclosures Framework,
with the four pillars being governance,
strategy, risk management and
metrics and targets.
These standards are due to be
released in December 2022. They will
be compulsory for Synlait Milk Limited
and will need to be met in our FY24
disclosures.
We have set up a working group
comprising of representatives from
our finance, corporate affairs, risk, and
sustainability teams. Using currently
released drafts, we have completed a
gap analysis of the standards versus
our current disclosures. We have
identified that our annual completion
of the CDP questionnaire has
positioned us strongly for compliance.
In FY23, we will focus on addressing
remaining gaps with the final
standards on their release. We aim
to make our first partial disclosure
in FY23.
FY22 TRANSPARENCY RESULTS
FY23 PLANS
• Execute our Synlait and Dairyworks improvement plans to achieve B Corp™ recertification in 2023.
• Prepare for compliance with the new New Zealand Climate Related Reporting Standards.
1
The FY22 ESG Risk Rating of 25.7 is based on the methodology used by Sustainalytics in FY19, to enable a like-for-like comparison.
Sustainalytics updated their methodology in FY22 and under the new version our rating is 25.4.
FY19FY20FY21FY22
B Corp™*-80.480.480.4
CDP Score*-DBC
Sustainalytics ESG Risk Rating*
1
34.922.523.325.7
*
Indicates that data quality was reviewed by an independent third party.
B Corp™ Score*
FY20
FY21
FY22
80.4
80.4
80.4
Sustainalytics ESG Risk Rating*
FY19
FY20
FY21
FY22
34.9
22.5
23.3
25.7
FY29
Target
120
PAGE 79 & 80SUSTAINABILITY REPORT 2022

Printed in Christchurch, New Zealand
This document is printed on
environmentally responsible paper,
produced using Elemental Chlorine Free
(ECF), Third Party certified pulp from
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Management System.

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Doing Milk Differently For A Healthier World
GREENHOUSE GAS
INVENTORY REPORT
– FY22

CONTENTS
1. Introduction 01
2. GHG Inventory Summary for FY22 02
3. Organisational Boundary 05
4. Operational Boundary 07
5. Methodologies and Uncertainties 09
5.1 Emissions Source Data Processes and Uncertainties 09
5.2 Farmer Supplier Emissions 14
5.3 Emissions Factors 15
5.4 Base Year Recalculation Policy 15
5.5 GHG Information Management and Monitoring Procedures 15
5.6 Other Emissions – HFC, PFC, NF3 and SF6 15
5.7 Other Emissions – Biomass 15
6. GHG Inventory Assurance 16
Auditor’s Report 17

1. INTRODUCTION
Synlait Milk Limited (Synlait) combines expert and sustainable farming practices with state-of-the-art manufacturing
processes to produce a range of nutritional milk products that provide genuine benefits for human health and wellbeing.
Our purpose Doing Milk Differently For A Healthier World is based on three pillars that form our identity: being different,
providing essential nutrition, and leading with sustainability. Our disruptive, innovative spirit combined with resolute
determination to do the right thing for planet and people sets us apart from the competition.
In April 2021, Synlait upgraded its climate change targets, which were originally set in 2018. The reset targets are
approved by the Science Based Targets initiative (SBTi) and align with the New Zealand Government’s commitment to
keep global warming to 1.5 ̊C.
Synlait has committed to reduce:
• Absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 45% between FY20 and FY28.
• Scope 3 GHG emissions from on-farm purchased goods and services by 30% per kg of milk solids (kgMS) between
FY20 and FY28.
Statement of Intent
This inventory report forms part of Synlait’s commitments to sustainability and environmental best practice and informs
the senior management’s decision-making relating to the company’s sustainability strategy. We intend to make this report
publicly available through our website.
Base Year
The base year is 1 August 2017 to 31 July 2018. This is the first 12-month period where GHG emissions were calculated
and forms the base year for Synlait.
Base year emissions have been restated this year due to an update in OVERSEER®’s software
1
, which impacts the
calculation of our Scope 3 farmer suppliers’ GHG emissions.
Reporting Period
This document is our fifth GHG Emissions Inventory Report and is for the period 1 August 2021 to 31 July 2022 (FY22).
1
Please refer to our base year recalculation policy on page 15.
PAGE 01 GREENHOUSE GAS INVENTORY REPORT – FY22

2. GHG INVENTORY SUMMARY FOR FY22
Table 1: GHG Emissions by Scope
FY18
(base year)
FY19FY20FY21FY22FY18-FY22
Evolution
Scope 1(1) Direct GHG Emissions114,589120,127133,609133,794129,91013%
Scope 1 Excluding
Synlait Farms
(1) Direct GHG Emissions114,589120,127133,609133,794128,95413%
Scope 2(2) Indirect GHG emissions
from imported energy
6,9237,0358,8048,50411,09760%
Scope 2 Excluding
Synlait Farms
(2) Indirect GHG emissions
from imported energy
6,9237,0358,8048,50410,92358%
SubtotalScope 1 and 2 Emissions
(tCO
2
e)
121,512127,162142,413142,298141,00716%
Subtotal Excluding
Synlait Farms
Scope 1 and 2 Emissions
(tCO
2
e)
121,512127,162142,413142,298139,87715%
Scope 3(3) Indirect GHG emissions
from transportation and
distribution
42,99146,28746,56053,057254,80627%
(4) Indirect GHG emissions
from products and services
used by the organisation
1,0051,6603,5473,4182,439143%
(5) Indirect GHG emissions
from the use of the
organisation’s products
------
(6) Indirect GHG emissions
from other sources –
on-farm emissions
1
754,992731,935856,622930,065899,86919%
SubtotalScope 3 Emissions (tCO
2
e)798,988779,882906,729986,540957,11420%
Total Emissions (tCO
2
e) 920,500907,0441,049,1421,128,8381,098,12119%
1
Our farmer suppliers’ GHG data is extracted from OVERSEER®, a New Zealand farm management software that is used by all
our farmer suppliers. As science evolves and progresses our understanding of farm systems, OVERSEER®’s software is regularly
updated. As a result, each year, we are required to update our on-farm GHG data using OVERSEER®’s latest version and restate the
prior years' numbers back to our base year (FY18-FY21) to make robust comparisons. Please refer to our FY21 GHG Inventory Report
for previous results we have disclosed. Farmer suppliers’ emissions are for the period 1 July 2021 to 30 June 2022. New suppliers,
whose contract agreements started on 1 June 2022, were excluded from both the GHG footprint and milk solids production numbers,
as they would have supplied Synlait for only 30 days. See page 14 for full disclosure of the methodology and uncertainties around
farm emissions.
2
Restated, as more complete datasets were provided across all suppliers and customers for Dairyworks in FY22, whereas only the top three
were provided last year.
PAGE 02 GREENHOUSE GAS INVENTORY REPORT – FY22