Sustainability Report FY23
Including FY23 Greenhouse
Gas Inventory Report
Doing Milk Differently For A Healthier World
SUSTAINABILITY
REPORT 2023
Synlait is delighted to present its fifth
Sustainability Report.
For a number of years we have taken
leadership positions in sustainability
across a number of key metrics,
and we are proud to hold ourselves
accountable to these on an annual
basis.
Our company’s purpose is ‘Doing
Milk Differently for a Healthier World’,
and our world-class sustainability
credentials are core to our DNA.
This will be the last Sustainability
Report under the old five-year
Sustainability Strategy (2018-2023).
Later this year we will be working
to provide a revised Sustainability
Report alongside our new
Sustainability Strategy, both of which
will be closely aligned to our wider
business strategy.
For now, please enjoy this progress
update.
CONTENTS
Welcome from CEO Grant Watson 03
Materiality Matrix 04
Sustainability Governance 05
Net Positive for the Planet 07
Climate 09
Water 11
Circular Economy 13
Animal Welfare & Healthy Farming 14
Lead With Pride™ 16
A Healthier Synlait 17
Safe Workplace 18
Talent Attraction & Development 19
Diversity & Inclusion 20
World Class Value Chain 23
Safe Food 24
Sustainable Supply 25
Appendix 1: Key Sustainability Metrics 27
Appendix 2: FY23 Greenhouse Gas Inventory Report 29
WELCOME TO SYNLAIT’S
2023 SUSTAINABILITY REPORT
Report Scope
This report reviews Synlait Milk
Limited’s (Synlait) social and
environmental performance for the
year ended 31 July 2023. The scope
of this report includes all entities in
which Synlait Milk Limited has more
than 50% ownership.
In FY23, 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 less than 50% shareholdings in
Sichuan New Hope Nutritional Foods
Co. Ltd and Primary Collaboration New
Zealand Limited, excluding them from
the scope of this report.
In FY23, Synlait’s manufacturing
and processing sites were Synlait
Dunsandel, Synlait Pokeno, Synlait
Auckland, Dairyworks Hornby and
Talbot Forest Cheese in Temuka.
However, the Temuka cheese
plant was non-operational in FY23.
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.
Please note: The 2023 Sustainability
Report now includes the Synlait
Greenhouse Gas Report (as Appendix
2). Deloitte's assurance applies only to
that section of this report.
SUSTAINABILITY REPORT 2023PAGE 01 & 02
Kia ora koutou,
Welcome to our FY23 Sustainability
Report.
It has been an extremely challenging
year for Synlait. We delivered a poor
financial result due to challenging
global market conditions, including
material reductions in customer
demand, CO2 shortages, extreme
weather events, the COVID-19
pandemic, inflationary impacts on
our cost base, and costs associated
with the launch and stabilisation of
our enterprise resource planning
(ERP) system.
Despite these challenges, our team
delivered several sustainability
successes that I am proud to
celebrate in this report.
Maintaining our B Corp™ status
We were recently recertified
as a B Corporation, the gold
standard accreditation globally for
sustainability. This demonstrates to
customers that Synlait is committed
to considering the impact of our
decisions on workers, customers,
farmers, suppliers, community, and
the environment.
Being a B Corp™ means that Synlait
meets the highest standards of
verified social and environmental
performance, public transparency,
and legal accountability to balance
profit and purpose. Synlait has
been a certified B Corp™ since June
2020, and is the only New Zealand
headquartered dairy processor
to have this accreditation. It is
increasingly requested by Synlait’s
global customers and is a competitive
differentiator in sales negotiations.
Maintaining China market access
Another key recertification success
in 2023 was achieving the State
Administration for Market Regulation
(SAMR) re-registration, which secures
our China market infant formula
access through until September
2027. This registration is critical to
our largest customer, The a2 Milk
Company, and provides a strong
foundation to our partnership.
Maintaining relationships with our
farmer suppliers
We successfully established our
Synlait Farmer Leadership Team,
which provides us with a direct
conduit to our farmer base. The team
helps us support our farmer suppliers
in applying farming best practice,
and they in turn probe our strategy
and approach, providing direction
and feedback. We also increased the
share of our farmer suppliers in the
Lead With Pride™ programme from
69% to 77%.
Maintaining industry connections
Synlait became one of the founding
shareholders in AgriZero
NZ
, a
unique technology and research
partnership between the New Zealand
Government’s Ministry for Primary
Industries (MPI) and some of New
Zealand’s largest agribusinesses.
AgriZero
NZ
aims to give farmers the
tools to reduce their own on-farm
emissions, such as methane vaccines,
alternative feed, and ruminant biotech,
to help New Zealand meet agricultural
emissions reduction targets.
Finally, in 2024 we will release
Synlait’s revised Sustainability
Strategy, to better align our objectives
with the refresh of our broader
business strategy, and to align with
modern reporting standards.
I am proud of the work our team have
done to achieve the above highlights
– these are what make Synlait a
unique and amazing place to work.
Ngā mihi.
Grant Watson
CEO
9 January 2024
MATERIALITY
MATRIX
This year, Synlait is refreshing its Sustainability Strategy to bring it into line with industry best practice, and to further
strengthen Synlait’s industry leading credentials.
As the first step in the Sustainability Strategy refresh process, Synlait conducted an in-depth stakeholder engagement
programme to ascertain what is most material – that is, what is most important and impactful regarding Environmental-
Social-Governance (ESG) issues and how they contribute to Synlait’s business success. This is an integral
commencement point for our Sustainability Strategy refresh and will form the basis of the strategy going forward.
Community engagement
Clear transparent reporting
Nutrition and health
Animal welfare
Water
Climate change
Food safety and quality
Wellbeing of people and communities
Business, supply chain and farm resilience
Biodiversity
Human rights
Transparent ESG governance structure
Board engagement
and oversight
Engaged, accountable leaders
Product innovation
Competitive milk pool
B Corp™ maintenance and improvement
Responsible procurement
EnvironmentSocialGovernanceValue chain
Healthy farming (holistic approach)
Circular economy,
waste and packaging
Employee ESG training
Product provenance and traceability
Customer partnerships
and diversification
Culture of diversity, equity,
inclusion and belonging
Future-focused system
ESG engagement with stakeholders
Importance to our stakeholders
Importance to our business success
MODERATEHIGH VERY HIGH
WELCOME FROM
CEO GRANT WATSON
PAGE 03 & 04SUSTAINABILITY REPORT 2023
SUSTAINABILITY
GOVERNANCE
BOARD OF
DIRECTORS
The purpose of the People,
Environment and Governance
Committee (The 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.
• The Director of Quality, Regulatory
and Laboratory is responsible for
ensuring that we manufacture
products under world-class food
safety and quality standards.
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
Chief Operating
Officer
Director of
Operations
President China
and Director of
Foodservice
People,
Environment
and Governance
Committee
Board of
Directors
Audit and Risk
Committee
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.
B CORP ADDITIONS
(2023)
Governance changes made in
2023 as part of Synlait's B Corp™
re-certification included:
• New social and environmental
performance metrics, which are
now linked to the compensation
and job descriptions of the
Executive Leadership Team;
• Board review of the company’s
social and environmental
performance;
• Synlait also added Purpose
and Stakeholder Consideration
clauses to its constitution after
the changes were ratified by way
of a Special Resolution at the
2023 Annual Meeting.
BOARD OF
DIRECTORS
EXECUTIVE
LEADERSHIP TEAM
PAGE 05 & 06SUSTAINABILITY REPORT 2023
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.
CLIMATE
How we contribute to reducing
greenhouse gas emissions in line
with the Paris Agreement and stay
below 1.5 ̊C of warming by 2100.
CIRCULAR ECONOMY
How we substantially reduce our
manufacturing and packaging waste
and promote reusing and recycling.
PAGE 07 & 08
ANIMAL WELFARE &
HEALTHY FARMING
How 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. We develop
sustainable and resilient farming
systems that respect and care for
animals, soil, and biodiversity.
Our partners putting
Whakapuāwai to work
• We have been assisting
LH Dairy – Manuka Flat in
Culverden Basin with riparian
planting as well as regenerating
biodiversity in particular gullies.
The farm owners are also
working towards retiring land
around key waterways and
streams. The programme’s long-
term vision is to increase native
corridors and plant a wide
range of unproductive land.
• We worked with BC & TE Brown
in Geraldine, by supplying 2000
mixed natives to improve water
quality along a 1.1km spring fed
stream.
• The Methven Lions is in its
third year of the partnership
and has been allocated about
2000 native species, grasses
and seedlings to plant. They are
currently identifying new areas
to plant about 4,000 additional
plants. This project is planned
to continue until 2028.
What is Whakapuāwai?
Whakapuāwai means “to cause
to blossom, develop, flourish,
prosper, thrive”. It is Synlait’s
commitment to restoring
and regenerating native
ecosystems, waterways and
wetlands, flora and fauna.
Whakapuāwai is our
sophisticated nursery and
planting operation and
a mechanism for customers
and suppliers to collaborate
on revegetation projects –
a valuable tool for restoring
ecosystems and biodiversity,
and sequestering carbon
through on-farm planting to help
meet GHG reduction targets.
CASE STUDY
CELEBRATING
FIVE YEARS OF
WHAKAPUĀWAI
The two-hectare site at Synlait's
Dunsandel facility can grow more
than 100,000 native trees and
shrubs annually.
On-farm planting is a partnership
with Synlait and its farmer suppliers.
Synlait raises seedlings at its nursery
onsite in Dunsandel then distributes
to farmers along with support, advice
and assistance with planting.
Synlait aims to plant 60,000 in the
next calendar year.
Synlait has been involved with 67
planting projects across Canterbury.
Scale has not been a deciding factor
in FY23, with some projects consisting
of 120 plants on farm, right through to
larger projects with 3,500 plants.
PAGE 07 & 08SUSTAINABILITY REPORT 2023
TARGETS
On-farm
Science Based Target initiative
(SBTi) – 30% reduction in
Scope 3 GHG emissions from
on-farm purchased goods and
services, per kilogram of milk
solids, by FY28, from a FY20
base year.
Off-farm
Science Based Target initiative
(SBTi) – 45% reduction in
absolute Scope 1 and 2 GHG
emissions by FY28 from a
FY20 base year.
FY23 KEY INITIATIVES
Two low emission boilers
operational at Synlait Dunsandel
(Scope 1 and 2)
Our biomass conversion of Boiler
Two at Synlait Dunsandel went live,
removing coal as its fuel. This sits
alongside our FY19 commissioning
of New Zealand’s first large-scale
electrode boiler to supply process
heat to its Advanced Dairy Liquid
Packaging Facility. The two projects
have enabled us to realise a
reduction of Scope 1 greenhouse
gas (GHG) emissions in FY23,
progressively increasing to 58,000
tCO2e in FY26, when the projects
are expected to reach full capacity.
AgriZero
NZ
Public-Private
Partnership (Scope 3)
Synlait announced it is one of the
founding shareholders in AgriZero
NZ
,
a unique partnership between the
New Zealand Government’s Ministry
for Primary Industries (MPI), Synlait
and a number of New Zealand’s
largest agribusinesses. The research
and investment partnership works to
give farmers the tools reduce their
own on-farm emissions, such as
methane vaccines, alternative feed,
and ruminant biotech.
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Absolute Scope 1 and 2 GHGs emissionstCO2e108,002113,547126,296125,466127,993120,755
- Absolute Scope 1 GHGs emissionstCO2e101,079106,512117,492116,962116,896113,004
- Absolute Scope 2 GHGs emissionstCO2e6,9237,0358,8048,50411,0977,751
Total Scope 1 and 2 emissions excluding Synlait FarmstCO2e108,002113,547126,296125,466126,863113,504
Scope 1 and 2 GHG emissions per tonne of producttCO2e0.780.730.650.580.620.60
FY23 CLIMATE RESULTS – OFF-FARM (SCOPE 1 & 2)
CLIMATE
Scope 3 GHG emissions
on-farm per kilo of milk solids
FY18
FY19
FY20
FY21
FY22
FY23
FY28
Target
7.88
11.83
11.39
11.91
11.42
10.94
11.10
Total Scope 1 and 2 emissions
excluding Synlait Farms
FY18
FY19
FY20
FY21
FY22
FY23
FY28
Target
78,327
113,547
126,296
125,466
126,863
113,504
108,002
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Scope 3 on-farm GHG emissions (total)tCO2e752,320722,821911,573991,033906,170936,757**
- South IslandtCO2e752,320722,821771,406849,452760,666800,989
- North IslandtCO2e--140,167141,581145,504135,768
Scope 3 GHG emissions on-farm per kilo of milk solidskg11.8311.3911.9111.4210.9411.10
Scope 3 farmer supplier emissions per kg of FPCM*kg0.870.840.880.850.810.84
FY23 CLIMATE RESULTS – ON-FARM (SCOPE 3)
*
FPCM refers to "Fat and Protein Corrected Milk" and is sometimes called "Energy Corrected Milk" (ECM). It is the calculation of standardising milk production for
comparison between cows.
**
These FY23 results reflect a below average milk production season due to poor weather conditions. Emissions intensity has risen due to reduced production,
and due to some farmers purchasing extra feed to compensate for the unfavourable growing season.
PAGE 09 & 10SUSTAINABILITY REPORT 2023
FY23 KEY 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,
which completed in April 2023. We
are now using this technology on
Synlait owned farms.
Lactoferrin process optimisation
This programme aims to improve
existing lactoferrin processes and
achieve lower chemical, salt and
water usage in a more sustainable
manner.
The GE CIP (clean in place) used
by the lactoferrin operations,
where the chemical usage and silo
selection was optimized resulted
in reduced chemicals and water
usage reductions when the project
was completed in June 2023.
WATER
FY22 WATER RESULTS – OFF-FARM
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Off-farm water consumption
absolute (including Synlait Farms)
m³1,927,4842,232,8692,823,4542,636,2474,830,9884,213,045
Off-farm water consumption
(excluding Synlait Farms)
m³1,927,4842,232,8692,823,4542,636,2472,678,3092,925,593
Off-farm water use per tonne
of product
m³13.8614.3614.6212.2712.9912.46
Nitrogen (in kg) discharged per
tonne of product (Dunsandel
and Pokeno only)
g41.440.533.431.22 9.128.7
On-farm water use per
kilogram of milk solids
Off-farm water use per
tonne of product
FY18FY19
FY19
FY20
FY20
FY21
FY21FY22
FY22FY23
FY23
4.17
14.36
3.35
14.62
12.271.4
12.991.52
12.46
13.86
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.
FY23 WATER RESULTS – ON-FARM
Description of metric/targetUnitFY18FY19FY20FY21*FY22FY23
Waterways fenced to the stock-
exclusion standard of the New
Zealand Dairy Tomorrow Strategy
%----100%100%
Total on-farm water consumptionm³-266,075,593257,061,367-114,466,404128,006,885
On-farm water use per kilogram
of milk solids
m³-4.173.35-1.41.52
Nitrogen loss on-farm to
waterways per kilogram of
milk solids
g41.440.533.431.22 9.128.7
*
In FY21, water consumption data for the Canterbury region was deemed too incomplete to include in official reporting. These factors included: 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. This issue was resolved in future reporting years.
FY28
Target
FY28
Target
3.3411.1
PAGE 11 & 12SUSTAINABILITY REPORT 2023
SYNLAIT FARMER LEADERSHIP TEAM ESTABLISHED
In November 2022, the Synlait Farmer Leadership Team was established. The eight farmers are a conduit between
Synlait and our farmer supplier base. The team helps us support our farmer suppliers in applying farming best practice,
and they in turn probe our strategy and approach, providing direction and feedback. We will become stronger
leveraging this team’s expertise.
FY23 ANIMAL WELFARE & HEALTHY FARMING RESULTS
ANIMAL WELFARE & HEALTHY FARMING
Adam
Williamson
South Island
Dan
Schat
South Island
Henry
Bolt
South Island
Gary
Michael
South Island
Rebecca
Hubbard
North Island
Susie
Woodward
North Island
Phill
Everest
South Island
Co-Chair
Will
Burrett
South Island
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Average length of farmer partnership with Synlait (as of 31 May) in years
- South Island#-6.87. 88.08.99.7
- North Island#--1.01.92.72.8
Lead with Pride™ certified farmer suppliers (as of 31 May)%28%49%57%62%69%77%
Percentage of pasture in
cow feed as 30 June 2023
Palm kernel expeller (PKE)
free Lead With Pride™ milk
80.4%
SOUTH
72%
FY22
70.8%
NORTH
68%
FY23
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.
FY23 KEY INITIATIVES
Waste management improvements
A key waste improvement project
commenced in June 2022 at Synlait
Dunsandel in collaboration with
our waste management provider. In
FY23 Synlait continued 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.
Recycling lining of 25kg bags
One of our main packaging
items is a 25kg milk powder bag
which is composed of an outer
paper bag (recyclable) and an
inner plastic liner that is difficult
to recycle. We are working with
our waste partners on solutions
such as washing and recycling of
our "contaminated" liners, which
contain residues of milk powders.
FY23 CIRCULAR ECONOMY RESULTS
CIRCULAR ECONOMY
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Non-hazardous waste recycled or recovered%84%78%79%80%85%71%*
Reusable, recyclable or compostable packaging sold, by weight (Synlait)%--99.3%99.1%99.2%99.7%
Non-hazardous waste
recycled or recovered
Reusable, recyclable or compostable
packaging sold, by weight (Synlait)
FY18
FY19
FY20
FY20
FY21
FY21
FY22
FY22
FY23
FY23
84%
78%
79%
99.3%
80%
99.1%
85%
99.2%
71%*
99.7%
FY28
Target
99%
*
There have been some challenges with validating the non-hazardous waste data from third party suppliers. This is being investigated and expect to update in
early 2024.
PAGE 13 & 14SUSTAINABILITY REPORT 2023
CASE STUDY
EVOLVING LEAD WITH
PRIDE™ TO SERVE OUR
FARMERS BETTER
FY23 marks almost 10 years of the
Lead With Pride™ programme.
Over the past year, Lead With
Pride™ has been streamlined to give
freedom to those that are exhibiting
industry-leading farm practice, while
also supporting farmers that are new
to the programme. The changes
Synlait has made are based on
farmers’ feedback that Lead With
Pride™ should recognise longevity
and good performance.
Changes to auditing and incentives
Lead With Pride™ has created three
different audit programmes:
1. Primary Audit – farmers who
are new to the programme
undergo a thorough audit every
year. There is a wider scope
of improvements they must
demonstrate at each audit.
2. Secondary Audit – the scope of
the audit is reduced for farmers
that have been in the programme
for more than two years. Farms
on a secondary audit haven’t
From FY25, it is proposed that
the incentive programme will now
take into account farmers’ actual
greenhouse gas emissions and
reductions.
quite hit some key KPIs which
means they have a less intensive
audit than farms on a primary
audit, but more intensive than
farmers on a tertiary audit. The
KPIs relate to environmental and
milk quality performance.
3. Tertiary audit – for farmers
achieving their KPIs and who
have been a part of Lead With
Pride for more than two years.
These farmers have one 'full'
audit every three years. They
still receive an audit each year,
but the scope is reduced and
focused on outcomes achieved.
About 80% of farms across
Canterbury currently meet the Lead
With Pride™ KPIs, therefore many
suppliers will graduate to the triennial
audit. There are some exceptions to
this and the Synlait team will work
with those that still require additional
audits. In the North Island, farmers
meeting KPIs is at about 50%.
Updated GHG mitigation tool
Based on valuable farmers’ feedback,
Synlait has made significant updates
to the GHG mitigation tool to be
implemented in FY24. These
updates gave farmers more options
to achieve the financial incentives
available, while also encouraging
continuous improvement.
Why Lead With Pride™
is different
• ISO accredited,
incentivised, best practice
dairy farm certification
• Independently audited
• Emphasis on people,
animals, environment,
and quality of the milk
• Positive approach to
regulatory reform
• Sustainability message that
aligns with Synlait’s vision
• Focus on individual farms’
continuous improvement
• Tailored on-farm support
team
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. 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™ 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, designed to encourage
continuous improvement in dairy
farming practices. Each year, Lead
With Pride™ certified farms are
independently audited to the
ISO/IEC 17065 standard.
LEAD WITH PRIDE™
Henry Bolt
PAGE 15 & 16SUSTAINABILITY REPORT 2023
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 three Sustainability Innovation
Platforms (SIPs) that underpin the
People pillar of our Sustainability
Strategy.
TALENT ATTRACTION
& 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.
DIVERSITY
& 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.
FY23 KEY INITIATIVES
Launch of Synlait Safe
Synlait Safe was launched in
November 2022 and is a reset
of Synlait’s commitment to safety
and wellbeing. Synlait Safe is
a programme of activities and
initiatives that challenges us to
think differently about safety and
wellbeing – to develop and improve
our culture, our leadership practices
and it requires change at every level
of the business. The results of this
programme have been impressive.
Since launch, we have seen our Total
Recordable Incident Frequency Rate
SAFE WORKPLACE
(TRIFR) reduce by 30% in FY23 to
10.6 (FY22: 14.9). We launched with
on-site activations during a two-
week period across the business,
with approximately 85% of staff
attending at least one of the events.
We asked employees to identify
their top 5 reasons for working
safely (their Personal Big 5 – PB5™ ),
be it people, activities, future plans
or events they may have. We have
also seen a steady increase, of at
least 20%, in positive behaviours
such as Safety Observation reports,
resulting in quicker response time
to addressing hazards. With the
introduction of a new reward and
recognition programme, which
hands out ‘Milk Tokens,’ we’ve seen
a 10-fold increase in awards. Other
positive safety behaviours, such as
reverse parking and ‘questioning
behaviours’ indicate a stronger staff
commitment to proactively address
hazards. We refreshed and launched
an assurance programme to confirm
the presence of critical controls (we
call ‘safety essentials’) to manage
critical risk (fatality prevention), and
over 400 employees have attended
our behavioural safety training
programme.
FY23 SAFE WORKPLACE RESULTS
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Health and Safety Committee meetings held as planned%---95%41%82%
Total Recordable Injury Frequency Rate (TRIFR)* #18.913.79.921.014.910.6
Total Recordable Injury Frequency Rate (TRIFR)*Employee fatalities
FY18
FY19
FY20
FY21
FY22
FY23
18.9
13.7
9.9
21.0
14.9
10.6
FY24
Target
9.0
*
Total Recordable Injury Frequency Rate (TRIFR) is calculated as (annual total of recordable injuries (medical and lost time) x 1,000,000 hours) /actual employee
hours worked.
0
FY22
0
FY21
0
FY23
SUSTAINABILITY REPORT 2023PAGE 17 & 18
FY23 KEY INITIATIVES
Leadership programmes
We have revamped our Leading at Synlait programme to
leverage the great tools we have to support our people
leaders to get the best out of their teams. The focus of the
programme is on utilising Gallup Strengths, engagement
and talent conversations that are focused on understanding
an individual's aspirations, and to help team members
deliver positive results and increased engagement.
Development opportunities
At the start of FY24, a new performance optimisation
programme called Vantaset, was established. Vantaset
will enable a greater focus on the creation of meaningful
development plans over time to help Synlait deliver on its
strategy and enable our team members to build capability
where it matters the most.
FY23 TALENT ATTRACTION AND DEVELOPMENT RESULTS
Employee engagement ratio* – SynlaitEmployee turnover rate – Synlait
FY23 KEY INITIATIVES
Revised Matua (Parental Leave) policy
The Matua (Parental Leave) policy has been in place since late 2019 and was developed to support employees taking
time to raise a family, and their need to balance the return to work and cost of childcare post-parental leave. It is
designed to retain employees when faced with the decision whether or not to return to the workplace after childbirth.
In FY23 we revised the policy to reflect the government changes to the ‘twenty hours’ free childcare’, expanding it
from three to five year olds to include two year olds at Early Childhood education centres. Previously Synlait had
provided this itself.
Approximately 40 employees are accessing the policy at any one time, and during the time of the policy, some
employees have accessed the policy more than once. Typically, these employees have been female, but over the
past eighteen months, there has been a small shift to male employees taking time to raise their child under this policy.
FY23 DIVERSITY AND INCLUSION RESULTS
TALENT ATTRACTION & DEVELOPMENTDIVERSITY & INCLUSION
Gender pay gap – SynlaitWomen as managers or
senior specialists – Synlait
FY18
FY19
FY20
FY21
FY22
FY23
34%
36%
37%
36%
37%
40%
FY18
FY18FY18
FY19
FY19FY19
FY20
FY20FY20
FY21
FY21FY21
FY22
FY22FY22
FY23
FY23FY23
18%
18%3.75:1
13%
10%
3.58:1
13%
13%5.20:1
10%
14%5.30:1
14%
23%4.90:1
13%
18%5.70:1
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Employee turnover rate – Synlait%18%10%13%14%23%18%
Employee engagement ratio* – Synlait#3.75:13.58:15.20:15.30:14.90:15.70:1
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Woman as managers or senior specialists – Synlait%34%36%37%36%37%40%
Gender pay gap – Synlait%18%13%13%10%14%13%
*
Engagement Ratio is engaged staff:actively disengaged staff (excluding Synlait China and Dairyworks) this figure is from our April 2023 survey.
PAGE 19 & 20SUSTAINABILITY REPORT 2023
FARMER SUPPLIER
CONFERENCE AND
DAIRY HONOURS
AWARDS
We bring our farmer suppliers
together at an annual winter
event designed to update them
about what is happening at Synlait
and celebrate their successes
at the Dairy Honours Awards.
Congratulations to our 2023
award winners!
DOING MILK
DIFFERENTLY AWARD
BP Dolan Farms Ltd
FOR A HEALTHIER
WORLD AWARD
Dewhirst Land Company
KOTAHITANGA
AWARD
Jersey Oaks Ltd
QUALITY BY
DESIGN AWARD
Align Farms Ltd
SUPREME LEAD
WITH PRIDE™ AWARD
North Island: Torrens Land Ltd
South Island: K & T Pastoral for
Mt Hutt Dairies Ltd
BEST MILK
QUALITY AWARD
North Island: Green Grass (2003) Ltd
South Island: Lieuwes Abbott Ltd
BEST MILK
QUALITY AWARD
WEIGHTED BY FARM SIZE
South Island: Ngāi Tahu Farming Ltd –
Waimakariri
GREENHOUSE
GAS AWARD
North Island: S and J Brighouse Ltd
South Island: Mount Rivers Ltd for
Mount Rivers Holdings
LOWEST SOMATIC
CELL COUNT AWARD
North Island: Maharee Farms Ltd
South Island: Lieuwes Abbott Ltd
SYNLAIT SAFE
AWARD
North Island: Landcorp Pamu
South Island: Partners in Cream Ltd
for Ngāi Tahu Farming Ltd – Timutimu
1 Jersey Oaks Ltd, 2 Brendon Dolan from BP Dolan Farms, Canterbury, 3 Tessa and Kyle Weaver and the Mt Hutt Dairies team.
Sam Mallard, Align Farms
1
23
PAGE 21 & 22SUSTAINABILITY REPORT 2023
FY23 KEY INITIATIVES
State Administration for Market Regulation (SAMR)
Recertification achieved
Synlait was extremely pleased that the State
Administration for Market Regulation (SAMR) notified
it of the successful re-registration of The a2 Milk
Company’s Chinese labelled 至初® Infant Formula
(stages one, two and three) at its Dunsandel facility
alone, which will allow it to manufacture and export
this product for the China market until September
2027. As the manufacturer of those products, the
SAMR registration is held by Synlait and attached to
its Dunsandel facility. The re-registration is pivotal for
the ongoing success of the manufacturing and supply
agreement that Synlait and The a2 Milk Company have.
FY23 SAFE FOOD RESULTS
Percentage of production covered
by a 2nd or 3rd party assessed
HACCP² programme
100%
FY22
100%
FY23
Audits completed for critical and
high-risk suppliers who were due
for their three-yearly audit
FY19
FY20
FY21
FY22
FY23
22.2%
26.3%
63.6%
64.3%
Percentage of production
covered by FSSC 22000¹
FY20
FY21
FY22
FY23
74%36.2%
65%
98%
100%
SAFE FOOD
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Number of consumer recalls of products for food safety reasons#001100
WE PROVIDE MILK
NUTRITION FOR
CONSUMERS AROUND
THE WORLD.
As demand for our products
continues to increase, we have
invested in global 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.
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.
WORLD CLASS
VALUE CHAIN
ENTERPRISE
1
Food Safety System Certification (FSSC) 22000 is an internationally accepted auditing and certification to ensure the provision of safe food, feed, and packaging
to the consumer goods industry.
2
Hazard Analysis and Critical Control Point (HACCP) is an internationally recognised system used to identify and manage significant food safety hazards,
and ensure food safety.
SUSTAINABILITY REPORT 2023PAGE 23 & 24
TARGETS
100% of our procurement
tenders will include social
and environmental criteria
by 2028.
FY23 KEY INITIATIVES
Optimising our supply chain
Consistent world-wide shipping
shortages across FY22 and FY23
have been a significant challenge
for our logistics and export teams.
However, the rail siding and Dry
Store 4 that were commissioned in
FY21 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. This year,
the rail siding, when compared
to equivalent trucking of goods,
reduced our emission by 777 tCO2.
Sustainable procurement
in contracts
In FY21, Synlait adopted a more
formalised approach to integrating
sustainability into procurement
policies and processes. All
procurement tenders have a
desktop assessment completed to
calculate the level of sustainability
risk and impact associated with the
supplied product or service. Our next
step is to incorporate sustainability
criteria into other components of the
procurement cycle, such as supplier
reporting, reviews, and audits.
SUSTAINABLE SUPPLY
Procurement tenders issued during the year that
include both social and environmental critera
Supplier expenditure with New Zealand
registered companies – Synlait
80%
FY22
66%86.8%
FY23FY23
FY23 SUSTAINABLE SUPPLY RESULTS
Description of metric/targetUnitFY18FY19FY20FY21FY22FY23
Supplier expenditure with New Zealand registered companies – Synlait%86.3%88.4%86.8%--86.8%
Procurement tenders issued during the year that include both social
and environmental critera
%---87%80%66%
PAGE 25 & 26SUSTAINABILITY REPORT 2023
Related section in report Description of metricUnitFY18FY19FY20FY21FY22FY23
CEO LetterB Corp™ points – Group#-----89.5
B Corp™ points – Synlait#--80.480.480.49 7.7
B Corp™ points – Dairyworks#-----56.6
Net Positive for the PlanetInvestment in Whakapuāwai$-365,758953,876559,630245,724320,000
Staff partcipation in Whakapuāwai%---22%17%1%
Total number of native trees and shrubs supplied by the nursery – to Dunsandel site#---1681440
Total number of native trees and shrubs supplied by the nursery – to Synlait Dairy Farms#---52,80240,90051,336
Total number of native trees and shrubs supplied by the nursery – to other community areas#---1,3203,62010,330
ClimateTotal energy consumptionMWh347,145377,086446,541436,365428,104420,391
kWh of energy per tonne of productkWh2,4952,4252,3132,0312,0762,077
Total coal consumption – Dunsandel onlyMT54,28756,80756,88956,46753,86141,949
Coal consumption per tonne of productMT0.390.370.290.260.260.21
WaterNitrogen (in kg) discharged per tonne of product – Dunsandel and Pokeno onlykg0.280.320.380.310.270.36
Sodium Absorption Ratio (SAR) 90th percentile of 10 – Dunsandel only#13.1611.2413.6213.813.814.26
Water recovered and reused in manufacturing operations – Pokeno only%--17%27%19%14%
Nitrogen loss on-farm to waterways per kilogram of milk solidsg41.440.533.431.22 9.128.7
Healthy FarmingPercentage of farms with significant environmental non-compliances (as of 30 June)%-2%3%1%1%1%
Lead With Pride™ certified milk (as of 31 July)%33%51%65%72%79%78%
Circular EconomyTotal waste producedMT4,2965,2498,2426,7447,0997,343
Total hazardous waste (landfilled and recycled)MT458584312319378331
Total non-hazardous waste (landfilled and recycled) MT3,8384,6657,9306,4256,7217,012
Total waste (landfilled + recycled) per tonne of productkg313443313436
Total non-hazardous waste by type of treatment (recycled and recovered)MT3,2383,6376,2695,1265,7315,181
Total non-hazardous waste by type of treatment (landfilled)MT6001,0281,6611,2991,3672,162
LCA sales coverage%-45%51%70%50%38%
Reusable, recyclable or compostable packaging sold, by weight – Dairyworks%-----82.3%
Safe WorkplaceHealth and safety actions completed before due date – Synlait%---60%58%52%
Employee fatalities#---000
Diversity and InclusionWomen as managers or senior specialists – Synlait%34%36%37%36%37%40%
Women as managers or senior specialists – Dairyworks%---24%25%39%
Women in senior leadership team – Group%14%14%25%24%25%27%
Women in senior leadership team – Synlait%14%14%25%31%27%30%
Women in senior leadership team – Dairyworks%----20%20%
APPENDIX 1: KEY SUSTAINABILITY METRICS
PAGE 27 & 28SUSTAINABILITY REPORT 2023
CONTENTS
1. About this Report 31
GHG Inventory Assurance 31
Statement of Intent 31
Base Year and Reporting Period 31
Targets 31
2. GHG Inventory Full Results for FY23 32
3. Persons Responsible 35
4. Boundaries 35
Organisational Boundary 35
Operational Boundary 36
5. Methodologies and Uncertainties 37
Emissions Source Inclusions, Exclusions Methodologies
and Uncertainties 37
On-Farm Emissions 44
Emissions Factors 45
Base Year Recalculation Policy 46
GHG Information Management and Monitoring Procedures 46
Other Emissions – HFC, PFC, NF3 and SF6 46
Other Emissions – Biomass 46
Restatements 47
6. Sign Off 48
7. Appendix 1: Glossary 49
8. Appendix 2: Legal Entities 50
9. Appendix 3: Auditors Report 51
FY23 GREENHOUSE GAS
INVENTORY REPORT
APPENDIX 2:
NOTE: Deloitte has provided assurance on the following FY23
Greenhouse Gas Inventory Report only (Appendix 2 – pages 31-50).
PAGE 29 & 30SUSTAINABILITY REPORT 2023
1. ABOUT THIS REPORT
This report is the annual greenhouse gas (GHG) emissions inventory report for Synlait Milk Limited (Synlait). The inventory
is a complete and accurate quantification of the amount of GHG emissions that can be attributed to Synlait’s operations
within the declared boundary, scope, and reporting period.
The inventory and this report have been prepared in accordance with the requirements of the Greenhouse Gas Protocol:
A Corporate Accounting and Reporting Standard (2004) and ISO 14064-1:2006 Specification with Guidance at the
Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals. Throughout this report,
where appropriate, figures have been rounded to the nearest whole number. This is Synlait’s sixth GHG Inventory Report.
previous inventories can be found at synlait.com/sustainability.
GHG Inventory Assurance
Deloitte Limited has been appointed as the third-party independent assurance provider. A reasonable level of assurance
has been given over the Scope 1 and 2 assertions and quantifications included in this report and a limited level of
assurance over the Scope 3 assertions and quantifications.
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 and Reporting Period
The base year is 1 August 2017 to 31 July 2018. This is the first 12-month period where GHG emissions were calculated.
This document covers emissions for the period 1 August 2022 to 31 July 2023, known as financial year 23 (FY23).
Targets
In 2021 Synlait upgraded their Science Based Targets for Scope 1 and 2 emissions out to 2028. These targets have
the company working toward a reduction in emissions from the 2020 baseline. 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 is 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.
2. GHG INVENTORY FULL RESULTS FOR FY23
Table 1: GHG Emissions by Scope
FY18
(base year)
FY19FY20FY21FY22FY23FY18-FY23
Evolution
Scope 1(1) Direct GHG
Emissions¹
101,079106,512117,492116,962116,896113,00412%
Scope 1 Excluding
Synlait Farms
(1) Direct GHG
Emissions
101,079106,512117,492116,962115,941105,9065%
Scope 2(2) Indirect GHG
emissions from
imported energy
6,9237,0358,8048,50411,0977,75112%
Scope 2 Excluding
Synlait Farms
(2) Indirect GHG
emissions from
imported energy
6,9237,0358,8048,50410,9237,59810%
SubtotalScope 1 and 2
Emissions (tCO₂e)
108,002113,547126,296125,466127,993120,75512%
Subtotal Excluding
Synlait Farms
Scope 1 and 2
Emissions (tCO₂e)
108,002113,547126,296125,466126,863113,5045%
Scope 3(3) Indirect GHG
emissions from
transportation and
distribution
42,99146,28746,56053,05757,33556,09130%
(4) Indirect GHG
emissions from
products and
services used by
the organisation
1,0051,6603,5473,4182,4383,101209%
(5) Indirect GHG
emissions from
the use of the
organisation’s
products
-------
(6) Indirect GHG
emissions from
other sources –
on-farm emissions
2
752,320722,821911,573991,033906,170936,75725%
SubtotalScope 3 Emissions
(tCO₂e)
796,316770,768961,6801,047,508965,943995,94925%
Total Emissions
(tCO2e)
904,318884,3151,087,9761,172,9741,093,9361,116,70423%
1
Coal emissions have been restated back to base year due to a change in methodology. Full disclosure of this restatement on page 47.
2
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 to make
robust comparisons. Please refer to our FY22 GHG Inventory Report for previous results we have disclosed and the on-farm emissions section for full
disclosure of the methodology and uncertainties around farm emissions.
PAGE 31 & 32SUSTAINABILITY REPORT 2023
2. GHG INVENTORY FULL RESULTS FOR FY23 (CONTINUED)
Table 2: GHG Emissions by Source
Emissions SourcesFY18 (base year)
tCO
2
e
FY19
tCO
2
e
FY20
tCO
2
e
FY21
tCO
2
e
FY22
tCO
2
e
FY23
tCO
2
e
Scope 1
LPG470503586531362427
Coal¹94,791100,02897,96596,40298,46587,253
Biomass--8--2
Diesel – Milk Tankers4,3024,1966,0356,7917,0917,055
Diesel – BoilerNot applicableNot applicable9069824026
Distributed Natural Gas16316910,05810,7488,6579,778
Company Vehicles and Combi737684243296349
Bus0 1251051237079
Packing Gas1,2661,3491,7191,103936819
Refrigerants0 200190118
Synlait Farms On-Farm----9567,098
Scope 2
Electricity6,9237,0358,8048,50410,9237,598
2
Synlait Farms Electricity----174153
Scope 3
Gas Transmission Losses19201,181639515361
Electricity Transmission
Losses
5655336677291,003855
Synlait Farms Electricity
Transmission Losses
----1618
Waste to Landfill4211,1081,6992,0509041,804
Coal and DAF Transport2122096351,8451,822210
Road Freight (outbound)2,4812,6833,4755,9565,6791,377
Road Freight (inbound)2,1522,2652,6884,1624,1413,647
Sea Freight (outbound)25,54025,15125,83129,56233,13436,170
Sea Freight (inbound)9,37711,9838,9717,9074,7686,834
Air Freight (outbound)3925511,6172,468913686
Air Freight (inbound) 009938601,047
Inter-warehouse Road Freight5596056443385882
Inter-warehouse Sea Freight3077561,306352688412
Rail Freight---59237194
Car Mileage4922151324
Staff Commute----2,9193,922
Taxi34ExcludedExcludedExcludedExcluded
Air Travel1,8141,8291,2233353411,486
Hotel stays15024149203463
Farmer Suppliers On-Farm
3
Emissions
752,320722,821911,573991,033906,170 936,757
Total GHG Emissions904,304884,2691,087,9501,172,9541,091,3871,116,704
Table 3: FY23 GHG Emissions by Gas Type
FY23 Emissions by TypeTotal - tCO
2
eCO
2
- tCO
2
eCH
4
- tCO
2
eN
2
O - tCO
2
eHFC - tCO
2
e
Scope 1 and 2 Emissions120,755 113,918 5,0661,7710
On-Farm Scope 3 Emissions936,757 159,268 599,484 178,005 0
Table 5: Emissions Intensity by Gas Type
FY23 Emission Intensity MetricsTotal - tCO
2
eCO
2
- tCO
2
eCH
4
- tCO
2
eN
2
O - tCO
2
eHFC - tCO
2
e
Scope 1 and 2 Emissions
Per Tonne of Finished Product
0.600.5400.0260.0370
Scope 3 On-Farm Emissions
Per Tonne of Milk Solids
11.101.97.12 .10
Table 4: Emissions Intensity – Total and Per Year
Emission Intensity Metrics FY18
tCO
2
e
FY19
tCO
2
e
FY20
tCO
2
e
FY21
tCO
2
e
FY22
tCO
2
e
FY23
tCO
2
e
FY18-FY23
Evolution
Scope 1 and 2 Emissions
Per Tonne of Finished Product
0.780.730.650.580.620.60-24%
Scope 3 On-Farm Emissions
Per Tonne of Milk Solids
11.8311.3911.9111.4210.9411.10-6%
Table 6: Scope 3 On-Farm Emissions Per kg of Fat and Protein Corrected Milk (FPCM)
FY18
tCO
2
e
FY19
tCO
2
e
FY20
tCO
2
e
FY21
tCO
2
e
FY22
tCO
2
e
FY23
tCO
2
e
FY18-FY23
Evolution
Scope 3 On-Farm Emissions
Per kg of FPCM
0.870.840.880.850.810.84-3.4%
Table 7: Biomass Combustion
Quantity (tonnes)Tonnes Biogenic CO
2
Mobile Combustion00
Stationary Combustion20111.73
1
Coal emissions have been restated back to base year due to a change in methodology. Full disclosure of this restatement on page 47.
2
The electricity emissions factor decreased by 0.050 kgCO₂e/unit. If not for emissions factor change, total emissions would be 12,549 tCO₂e.
3
Farmer Suppliers on-farm emissions have been restated back to base year. Full disclosure of this restatement on page 47.
PAGE 33 & 34SUSTAINABILITY REPORT 2023
3. PERSONS RESPONSIBLE
4. BOUNDARIES
The Board of Directors are responsible for the Greenhouse Gas Inventory report. This report has been approved by
Paul McGilvary, Acting Chair and the Board of Directors.
Organisational Boundary
Organisational boundaries were set with reference to the methodology described in the GHG Protocol and ISO14064-
1:2018 standards. The figure below shows the context of the overall structure including dormant entities. The operation
boundary is indicated by the grey shading. Synlait uses an operational control consolidation approach. See Appendix 2
for a full list of the active entities that have been included and excluded in the emissions inventory:
Figure 1: Legal Entities
Operational Boundary
There are several sites (also referred to as business units) that Synlait operates. The following table outlines in more
detail sites that have been included or excluded in the emissions inventory.
Table 8: Business Units
Business Unit/Sites Description/Function LocationInclusionsReason/Notes
Synlait CorporateCorporate emissions
across all Synlait sites
DunsandelIncludedIncludes emissions which are not site specific for
Synait.
Synlait DunsandelMilk processing and
manufacturing site
DunsandelIncludedIncludes manufacturing and site-specific emissions
only. This is the main operational and administration
site for Synlait.
Dunsandel FarmsDairy farmsDunsandelIncludedSynlait Milk Limited had direct control in FY23.
Includes on-farm and electricity emissions.
Richard Pearce Drive
(RPD) Auckland
Milk powder canning
and blending site
AucklandIncludedIncludes manufacturing and site-specific emissions
only.
Westney Road WarehousingAucklandIncludedLeased premise.
Synlait PokenoMilk processing and
manufacturing site
WaikatoIncludedIncludes manufacture and site-specific emissions only.
Synlait Research and
Development Centre
Research and
development, part of a
larger shared campus
Palmerston
North
ExcludedOffice space leased and emissions estimated to be
de minimis.
Synlait ChristchurchSatellite officeChristchurchExcludedOffice space leased and emissions estimated to be
de minimis.
Synlait ChinaSatellite officeShanghaiExcludedOffice space leased and emissions estimated to be
de minimis.
Jerry Green Street
Warehouse
WarehousingAucklandExcludedNew leased premise which Synlait commissioned in
late FY23. As it was only open for a short time during
FY23 this site has been excluded but will be included
from FY24.
Dairyworks CorporateCorporate emissions
across all Dairyworks
sites (including Talbot
Forest Cheese and
leased warehouse)
ChristchurchIncludedIncludes emissions which are not site specific for
Dairyworks.
Talbot Forest CheeseCheese production
factory, milk supplied by
Synlait
TemukaIncludedIncludes manufacture and site-specific emissions only.
Non-operational in FY23.
Dairyworks Hornby Gerald
Connolly Place
Dairy processing factoryChristchurchIncludedIncludes manufacture and site-specific emissions only.
The New Zealand
Dairy Company
Limited
(New Zealand)
Eighty-Nine
Richard Pearse
Drive Limited
(New Zealand)
Primary
Collaboration NZ
Ltd (New Zealand,
16%)
Sichuan New
Hope Nutritionals
(China, 25%)
Dairyworks
Limited
(New Zealand)
Bright Dairy
Holding Limited
(Cayman Islands,
39.01%)
Synlait Milk
(Dunsandel
Farms) Limited
(New Zealand)
The a2 Milk
Company (NZ)
Limited (New
Zealand, 19.83%)
Synlait Milk
Limited
(New Zealand)
Synlait Milk
Finance Limited
(New Zealand)
Other shareholders
(NZX and ASX,
all <10%)
Synlait Milk
(Holdings) No.1
Limited
(New Zealand)
Synlait Business
Consulting
(Shanghai)
Limited (China)
Dormant entity
PAGE 35 & 36SUSTAINABILITY REPORT 2023
5. METHODOLOGIES AND UNCERTAINTIES
Emissions Source Inclusions, Exclusions Methodologies and Uncertainties
The GHG emissions sources included in this inventory were identified with reference to the methodology in the GHG
Protocol and ISO14064-1:2006 standards.
Where relevant, the inventory is aligned with industry or sector best practice for emissions measurement and reporting.
An operational control consolidation approach is used to account for emissions.
As adapted from the GHG Protocol, these emissions were classified under the following categories:
• Direct GHG emissions (Scope 1): Emissions from sources that are owned or controlled by the company.
• Indirect GHG emissions (Scope 2): Emissions from the generation of purchased electricity, heat and steam consumed
by the company.
• Indirect GHG emissions (Scope 3): Emissions that occur because of the company’s activities but from sources not
owned or controlled by the company. Our scope 3 emissions have been further categorised using the Scope 3
Standard categories.
Table 9 provides an overview of how data was collected for each GHG emissions and an explanation of any uncertainties
or assumptions made.
Table 9: Emissions Source Data Inclusions, Processes and Uncertainties
Emissions SourcesScopeScope 3
Category
Business Unit
Reported
PurposeData Process/Uncertainties
LPG1-Synlait Dunsandel,
Synlait Pokeno,
Westney Road
ForkliftsThe supplier provides a monthly usage
report. Talbot Forest Cheese was not
operational during FY23.
Coal1-Synlait DunsandelProcess heatSub-bituminous coal. Weighbridge
tonnage recorded from supplier
invoices monthly is combined with the
Gross Calorific Value (GCV) of the coal
as assessed from a monthly sample
taken of delivery which serves as a
custom emission factor.
Biomass2-Synlait DunsandelProcess heatThe supplier provides a usage report.
Diesel – Milk Tankers1-Synlait Corporate,
Synlait Dunsandel,
Synlait Pokeno
Road transport
of milk from farm
to manufacturing
sites, and transfer
of milk between
factories
Our transportation partner is
contracted to use their vehicles for milk
transportation – they are not owned by
Synlait. However, as most milk tankers
have Synlait branding and do transport
for Synlait exclusively, diesel used for
milk transportation has been allocated
to Scope 1. A system is in place to
record L diesel usage that is then
provided to Synlait.
Emissions SourcesScopeScope 3
Category
Business Unit
Reported
PurposeData Process/Uncertainties
Diesel – Boiler1-Talbot Forest Cheese,
Dairyworks
Process heatMonthly invoices provide the amount of
fuel purchases in litres.
Diesel – Combi Lift1-Synlait DunsandelWarehouse
operations
Diesel purchases are provided in litres
at the end of each financial year.
Diesel – Synlait Bus1-Synlait DunsandelEmployee
transportation
Diesel purchases are provided in litres
at the end of each financial year.
Petrol and Diesel –
Company Cars
1-Synlait Corporate,
Dairyworks Corporate
Business travelFuel card information provides fuel
purchases in litres by fuel type.
Distributed Natural Gas1-Richard Pearce Drive
(RPD) Auckland,
Synlait Pokeno
Process heatMonthly invoices provide consumption
data in kWh and GJ.
Packing Gas1-Synlait Dunsandel,
Richard Pearce Drive
(RPD) Auckland,
Synlait Pokeno,
Talbot Forest Cheese,
Dairyworks Hornby
Gerald Connolly Place
Used for packingThe suppliers provide a monthly usage
report.
Rental Cars 1-Synlait Corporate,
Dairyworks Corporate
Business travelThe suppliers provide a monthly usage
report. The report includes travel
distances and class of rental vehicle.
Travel distances are entered by the
rental car company and are captured
in the report from the travel agent. If
distances are coded incorrectly or not
entered a standard measurement of
50km per day of hire is applied to the
booking. This report and its associated
GHG emission calculations have
been independently verified by Toitū
Envirocare.
Refrigerants1-Synlait Dunsandel,
Richard Pearce Drive
(RPD) Auckland,
Synlait Pokeno,
Talbot Forest Cheese,
Dairyworks Hornby
Gerald Connolly Place
All units and
systems that use
refrigerants such
as air-conditioning,
chillers, fridges
Suppliers confirm whether any top
ups have occurred and if so, provide
amount and type of gas.
PAGE 37 & 38SUSTAINABILITY REPORT 2023
Emissions SourcesScopeScope 3
Category
Business Unit
Reported
PurposeData Process/Uncertainties
Electricity2-Synlait Dunsandel,
Richard Pearce Drive
(RPD) Auckland,
Synlait Pokeno,
Westney Road,
Dunsandel Farms,
Dairyworks Hornby
Gerald Connolly Place,
Talbot Forest Cheese
Office and
manufacturing use
The supplier provides a monthly usage
report.
Gas and Electricity
Transmission Losses
33Synlait Dunsandel,
Richard Pearce Drive
(RPD) Auckland,
Synlait Pokeno,
Westney Road,
Dairyworks Hornby
Gerald Connolly Place,
Talbot Forest Cheese
Losses during
transmission
Default transmission loss amount is
used which is incorporated into the
emissions factor provided by MfE and
applied to total electricity and natural
gas KWH use.
Waste to Landfill35Synlait Dunsandel,
Richard Pearce Drive
(RPD) Auckland,
Synlait Pokeno,
Westney Road,
Dairyworks Hornby
Gerald Connolly Place,
Talbot Forest Cheese
Manufacturing
and office waste
Waste data is accessed directly through
the waste management provider’s
online portal for all sites except
Dunsandel which receives a separate
excel report from the supplier. The
mixed waste non methane recovery
emissions factor is applied to all sites.
Coal Transport34Synlait DunsandelTransportation
of coal and DAF
sludge
Road freight for transporting coal to
Dunsandel is estimated based on
weight of coal purchased and distance
to Dunsandel using the road freight
emissions factor and included in
Scope 3.
DAF Transport34Synlait Dunsandel,
Synlait Pokeno
Transportation
of DAF sludge
The supplier records km and converts
to L diesel usage based on average fuel
efficiency for each vehicle type.
Emissions SourcesScopeScope 3
Category
Business Unit
Reported
PurposeData Process/Uncertainties
Outbound Freight
(Sea, Road, Air)
34Synlait Corporate,
Dairyworks Corporate
Delivery of finished
goods to national
and international
customers
Distances in kilometres are calculated
from origin to destination countries
and multiplied by the weight of goods
delivered to obtain tonnes per kilometre
(TKM). We have made the following
assumptions:
1. Consignments travel directly to
final destination.
2. The road components for sea and
air freight (from original location
to port and from port to final
destination) are 50km at each
end unless the carrier is the rail
transport provider from Synlait
Dunsandel to Lyttleton Port (the
emissions from this carrier are
included in rail freight), making
it an estimated 100km of road
freight.
3. Air consignments are >3700km
therefore the long-haul emissions
factor is to be used.
4. Synlait – As this was the first
financial year that Synlait has
reported using SAP data we found
issues with record completeness.
Origin, destination, and weight
data is obtained from “Shipping
Schedule” export which is derived
from our ERP system (SAP). The
“Shipping Schedule” export
contained missing weight data
for approximately 34% of sea and
road journey entries. Therefore,
an estimation of weight was
applied to these entries. This was
calculated by taking the average
weight of the other deliveries on
the same route.
5. All air freight movements have
been calculated using actual
weights derived from third party
documents such as waybills or
other export documentation.
6. Dairyworks - Data is based on
actuals. The data has been
extracted from our ERP system.
5. METHODOLOGIES AND UNCERTAINTIES (CONTINUED)
PAGE 39 & 40SUSTAINABILITY REPORT 2023
Emissions SourcesScopeScope 3
Category
Business Unit
Reported
PurposeData Process/Uncertainties
Inbound Freight
(Sea, Road, and Air)
33Synlait Corporate,
Dairyworks Corporate
Procurement
of ingredients
and packaging
materials
Synlait – As this was the first financial
year that Synlait has reported using
SAP data, we found issues with record
completeness (missing weights and/
or transport mode) which meant that
taking a spend based approach was
determined the most reliable. Auckland
Council published emission factors
were applied to spend data recorded
against the air, general, road and sea
general ledgers from SAP. Full citation
of emissions factors used is Market
Economics Limited, 2023, Consumption
Emissions Modelling, report prepared
for Auckland Council utilising the
following codes: 113 – Air transport
freight services, 127 – Road transport
freight services, 131 – Sea transport
freight services.
Dairyworks – Data is based on actuals.
Sales reports have been used to
calculate the outbound sea and road
freight.
Inter-warehouse Freight
(Road and Sea)
33Synlait CorporateMovement of
goods between
sites and
warehousing
facilities
The total weights moved between
each site are multiplied by distance
between the sites. Assumed all inter-
island transfers travelled by sea and
are transported to and from the nearest
port to the site.
Rail Freight
(Inbound, Outbound,
and Inter-warehouse)
33Synlait CorporateMovement of
goods between
Lyttleton port and
Dunsandel
Rail siding became operational in May
2021. Trip data is obtained from internal
recording via an excel query.
Reimbursed
Car Mileage
36Synlait CorporateStaff use of own car
for business travel
Kilometres travelled is calculated
from staff mileage claims. Using MfE
emission factor for private car default
petrol.
Emissions SourcesScopeScope 3
Category
Business Unit
Reported
PurposeData Process/Uncertainties
Staff Commute36Synlait Corporate,
Dairyworks Corporate
Staff travel from
home to work and
back home
Current financial year FTE head count
for each site used to extrapolate
on results from a company-wide
survey that collected data on type
of vehicle used, distance travelled
to most frequent site, and number of
days worked on-site per week. Staff
who indicated they travelled by the
Synlait provided bus are excluded
from the staff commute totals as diesel
is accounted for already. Staff who
indicated they used air transport were
excluded as this is captured in the air
travel emission data as it is booked by
our travel agent.
Air Travel and Hotels36Synlait Corporate,
Dairyworks Corporate
Business travelThe supplier provides a monthly usage
report. The report includes travel
distances and class of travel. Hotel
information includes location and
number of nights. This report and its
associated GHG emission claims have
been independently verified by Toitū
Envirocare.
On-Farm Emissions36Dunsandel Farms and
Milk Suppliers
Supply of raw milkOn-farm emissions are GHG emissions
from the dairy farms that Synlait has
a direct supply agreement with, for
the purchase of raw milk. They do
not include emissions from other
agricultural products or dairy products
purchased from other suppliers for
processing. On-farm emissions are
directly obtained from OVERSEER®, a
farm management software that models
agricultural GHG emissions based
on various parameters, such as the
production of effluent, the application of
nitrogen fertiliser and the supplements
provided to the cows. For more details,
please see the dedicated section below.
5. METHODOLOGIES AND UNCERTAINTIES (CONTINUED)
PAGE 41 & 42SUSTAINABILITY REPORT 2023
Table 10: Emission Exclusions
Emissions SourcesScopeScope 3
Category
Business Unit
Excluded
Exclusion Details
Refrigerants 34Westney RoadRefrigerants have been excluded due to access issues.
This site is leased therefore it is considered scope 3.
Purchased Goods
and Services
31AllEmissions from dairy cows when they are outside of
the farm or wintering, i.e., when they are removed from
milking platforms and sent to other farms during winter, are
excluded. More information of on-farm exclusions is available
in the on-farm emission section. GHG emissions from
non-milk suppliers (for example, packaging, raw materials,
equipment, services) are excluded from the inventory.
Capital Goods32AllEmissions from capital assets are excluded due to a
lack of data availability, however emissions from energy
consumption for any construction work or testing of new
equipment is included.
Downstream
Transportation
and Distribution
39AllFreight activities not paid for by Synlait have been included
in Category 4, as all inbound and outbound freight
activities are captured under this category. It not feasible
to differentiate the contractual agreements for each
consignment to separate freight paid or not paid for by
Synlait. Freight movement beyond destination warehouse
(i.e., distribution centre, retailer and/or end customer) is not
included due to lack of data and likely to be de minimis. To-
date we have been unable to collect outbound courier data
from suppliers. Most courier items are estimated to be less
than 2kg, therefore are considered de minimis.
Processing of Sold
Products
311AllOur ingredients are processed by our customers into a
multitude of products. It would be technically difficult to
estimate our share of our customers’ processing GHG
emissions.
Use of Sold Products311AllWe have carried Life Cycle Analyses for four of our key
products and in all cases GHG emissions from consumer use
represented less than 2.4% of total emissions.
End-of-life Treatment
of Sold Products
312AllWe have carried Life Cycle Analyses for four of our key
products and in all cases GHG emissions from consumer
disposal represented less than 0.3% of total emissions.
Downstream Leased
assets
313Not applicableSynlait does not operate this type of lease therefore it has
been excluded.
Franchises315Not applicableSynlait does not operate franchises therefore it has been
excluded.
Taxis36Synlait Corporate,
Dairyworks Corporate
Taxis have been excluded as the data was not feasible to
obtain in FY23. Charges for taxis are normally paid for on
credit cards or by cash withdrawal from credit cards. There
is no unique identifier to separate taxi charges from other
credit card charges. This source is also estimated to be de
minimis.
On-Farm Emissions
Emission Factor: The quantification of GHG emissions is conducted via the OVERSEER® software. Quantification of GHG
type: Each source of GHG data, broken down by type of GHG, is also extracted from OVERSEER®. This enables Synlait to
calculate the average proportion of CO2, CH4 and N2O gases within total GHG emissions across all dairy farms.
Custom Emission Factor(s): Unless otherwise stated the emission intensity for farm suppliers included in this report are
an average of the total milk pool. For custom emission intensity figures please contact sustainability@synalit.com.
Farms Reported: On-farm emissions are GHG emissions from the dairy farms that have an existing supplier contract with
Synlait during the reporting period, for the supply of raw milk.
Data Process/Uncertainties: On-farm emissions are directly obtained from OVERSEER®, a New Zealand farm
management software that models agricultural GHG emissions based on various parameters. OVERSEER® is a widely
used tool in New Zealand, also used as a regulatory tool by certain regional councils for farm resource consents. The
process is as follows:
1. Farm data (such as the nutrient budget) is entered into OVERSEER® by the farm manager or their consultant with the
help of Synlait Sustainability Advisors and/or contracted consultants. For more information on what is included in the
nutrient budget and feeds into OVERSEER®, refer to the OVERSEER® Boundary section below.
2. Once the current year’s data has been entered into OVERSEER®, Synlait staff check that farms have activated
software updates from OVERSEER®, which will update all farm calculations, including GHG emissions for all
measurement periods (including updates to previous years).
3. The modelled farm data, including GHG emissions, is then extracted from OVERSEER® using the OVERSEER® API to
a consolidation spreadsheet.
4. Where data is not available for a farm (for example, it has ceased to supply Synlait; it does not have an active
OVERSEER® account; or data is not available by our internal cut-off date), data may be manually entered, or we will
use previous years data. All care is taken to ensure that all farms with a current supply agreement are represented in
our on-farm emissions.
5. Exclusions are removed, if relevant, (see list of exclusions below).
6. Emissions from farms that supply Synlait, and other processers are adjusted in accordance with the percentage
of supply they give us. For example, if a farm supplies 20% of its milk to Synlait and 80% of its milk to another
processor, Synlait will take 20% of the total emissions for this farm.
7. Farms are weighted by milk supplied, then emissions and emissions intensities calculated.
5. METHODOLOGIES AND UNCERTAINTIES (CONTINUED)
PAGE 43 & 44SUSTAINABILITY REPORT 2023
OVERSEER® Boundary: The OVERSEER® software calculates emissions based on inputs. The following inputs are
included to determine overall tonnes of carbon equivalent.
• Enteric fermentation
• Dung deposited
• Imported effluent
• Animal dry matter
• Crop residue
• Burning of crop residues
• Nitrogen in excreta deposited
• Nitrogen added
• Nitrogen leached and volatilised from urine and fertiliser
• Electricity
• Fuel
• Animal transport
Exclusions:
• New farmer suppliers who come on after 31 May of the reporting year are excluded, as they would have only
supplied milk to Synlait for one month or less prior to the end of financial year.
• Emissions from dairy cows when they are outside of the farm or wintering are excluded, i.e., when they are removed
from milking platforms and sent to other farms during winter.
• Emissions from agricultural products or dairy products purchased from other suppliers for processing (with whom
there is no direct supply agreement) are also excluded.
• Management of young stock
Emissions Factors
Emissions factors released by the New Zealand Ministry for the Environment (MfE) (published July 2023) are used where
available. Where there are no appropriate MfE factors, United Kingdom DESNZ factors could be used (published June
2023). In FY23 we have also referenced the Market Economics Limited, 2023, Consumption Emissions Modelling, report
prepared for Auckland Council to apply a spend factor to our inbound freight.
Base Year Recalculation Policy
Base year data may need to be revised when material changes occur and have an impact on calculated emissions. Our
policy is to recalculate base year data and indicate in a footnote any recalculation or re-statement of previously disclosed
data, in any of the following situations:
• Changes are estimated to represent more than 5% of Scope 1, 2 or 3 emissions; or
• There are significant changes to our reporting boundaries, including the outsourcing or insourcing of emitting
activities; or
• There are significant changes in our calculation; or
• We discover significant errors, or cumulative errors that are collectively significant, in our previous disclosures; and
• Annually for our on-farm GHG data extracted from OVERSEER®. As science evolves and progresses our
understanding of farm systems, OVERSEER®’s software is updated. As a result, each year, we are required to update
our on-farm GHG data using OVERSEER®’s latest version and restate the numbers back to our base year (FY18)
to make robust comparisons. Past disclosures can be found in our previous GHG Inventory reports at synlait.com/
sustainability.
GHG Information Management and Monitoring Procedures
GHG emissions are measured annually and compared against the base year. Each source of GHG emissions has an Excel
spreadsheet which includes raw data and calculated GHG emissions. A master spreadsheet performs the consolidation
of all GHG emissions at group level.
This document provides an overview of boundaries and scopes, data collection processes and GHG measurement
methodologies for each emission source and is updated each year. More details are available in each of the GHG
emissions spreadsheets.
Synlait’s GHG Emissions Inventory Report, associated documents and spreadsheets are prepared by the sustainability
team. They are then reviewed internally.
Other Emissions – HFC, PFC, NF3 and SF6
Air conditioning units and chillers contain HFCs. The Dunsandel site has reported top-ups of gas for this reporting period,
HFC for the top up has been included in the inventory. Air conditioning is excluded from the inventory where offices are
leased. There are no operations that use PFC, NF3 or SF6.
Other Emissions – Biomass
Biomass was combusted by Synlait during this reporting period at our Dunsandel site. During the FY23 year Synlait
combusted 2011 tonnes of wood pallet biomass.
5. METHODOLOGIES AND UNCERTAINTIES (CONTINUED)
PAGE 45 & 46SUSTAINABILITY REPORT 2023
6. SIGN OFF
Person Responsible: Paul McGilvary, Acting ChairFrequency of Report:Annual
Dated: 9 January 2024Base Year:2017-2018
Restatments
The following emission sources have been restated since our last GHG inventory (FY22):
• Coal: To better report our coal use and its impact, we have amended the methodology for calculating emissions from
this source. Previously, the gross calorific value (GCV) used in the emissions calculation of coal was the default value
for the period sourced from MfE. We have instead used third-party sampling of the coal purchased to obtain the GCV
on a monthly basis. This GCV is then used as an input into the emissions calculation to obtain the Coal Energy used
in Giga joules (GJ) rather than using the MfE default value for CGV in calculation. The GCV changes each month as
a result of the testing. The MfE tCO2e/TJ FY23 emission factor is then used to calculate the restated emissions for
FY18-FY22.
• Scope 3 On-Farm Emissions per Kilogram of Fat and Protein Corrected Milk (FPCM): During FY23, an error was
discovered in the calculation for converting litres of milk into kilograms of milk collected. This impacted the Scope
3 on-farm emissions per metric tonne of FPCM metric, included on page 34, and not an error identified in the GHG
emissions inventory previously reported.
• On-Farm Emissions: Base year emissions have been restated this year due to an update in OVERSEER®’s software,
which impacts the calculation of our on-farm Scope 3 emissions. This is an annual process to continuously improve
our farm data. See our On-Farm Emissions and Base Year Recalculation Policy for more details. For more information
on emission data that were previously reported please refer to copies of previous GHG inventories.
5. METHODOLOGIES AND UNCERTAINTIES (CONTINUED)
PAGE 47 & 48SUSTAINABILITY REPORT 2023
7. APPENDIX 1: GLOSSARY8. APPENDIX 2: LEGAL ENTITIES
While all care has been taken to remove acronyms and abbreviations some have been included in this report for length.
Any acronyms and abbreviations used or other concepts which may need explanation have been included below in
alphabetical order.
Table 11: Glossary of Terms
This table provides a full list of included and excluded legal entities as detailed in figure 1 above.
Table 12: Legal Entities
AbbreviationNameDefinition (if required)
APIApplication Programming InterfaceAn API establishes an online connection between a
data provider and an end-user.
DAFDissolved Air FlotationDAF refers to the treatment of dairy wastewater
using Dissolved Air Flotation. The solids that remain
after the wastewater has been treated are then
transported to their disposal location.
DESNZUnited Kingdom Department for Energy Security and
Net Zero
Current government organisation responsible for
emission factors.
DWDairyworks-
Emissions-Any reference to ‘emissions’ in this report means
greenhouse gas emissions.
FPCMFat and Protein Corrected MilkCan also be known as Energy Corrected Milk (ECM),
is the calculation of standardising milk production for
comparison between cows.
GHGGreenhouse Gas Emissions-
LPGLiquid Petroleum Gas-
MfENew Zealand Ministry for the Environment-
RPDRichard Pearce DriveSynlait site at 89 Richard Pearce Drive.
SYNSynlait-
TFCTalbot Forest CheeseDairyworks site that is not currently in operation
Entity Name Description/FunctionOwnershipInclusionsComment
Synlait Milk LimitedParent company100%Included-
Synlait Milk Finance LimitedWholly owned subsidiary,
holding company for
financing purposes.
100%IncludedNo activities that produced
GHG emissions therefore not
separately reported.
The New Zealand Dairy Company LimitedWholly owned subsidiary,
company that previously
owned the land at Richard
Pearse Drive. The company
was acquired at the same
time as land purchase.
100%IncludedNo activities that produced
GHG emissions therefore not
separately reported. Richard
Pearce Drive site captured
as a business unit.
Eighty-Nine Richard Pearse Drive LimitedWholly owned subsidiary,
company that previously
owned the land to Richard
Pearse Drive. The company
was acquired at the same
time as land purchase.
100%IncludedNo activities that produced
GHG emissions therefore not
separately reported. Richard
Pearce Drive site captured
as a business unit.
Synlait Business Consulting (Shanghai)
Limited
Wholly owned subsidiary,
satellite office for staff based
in China.
100%IncludedGHG emissions estimated to
be de minimis, therefore not
reported.
Dairyworks Limited and Dairyworks
(Australia) Pty Limited
Wholly owned subsidiaries,
dairy processing companies
in New Zealand and
Australia.
100%IncludedAcquisition (April 2020).
Sichuan New Hope Nutritional FoodsInfant formula company
registered in China, owns
the Akara and E-Akara
brands, which are exclusively
manufactured by Synlait.
25%ExcludedShareholding only, no
operational control.
Primary Collaboration New Zealand LimitedWholly foreign owned
entity designed to gain a
better understanding of the
complex Chinese market
and facilitate easier access
to China.
17%ExcludedShareholding only, no
operational control.
PAGE 49 & 50SUSTAINABILITY REPORT 2023
INDEPENDENT REASONABLE AND LIMITED ASSURANCE REPORT
TO THE BOARD OF DIRECTORS OF SYNLAIT MILK LIMITED
Report on Greenhouse Gas Emissions Inventory Report
We have undertaken a reasonable assurance engagement in relation to Scope 1 and 2 emissions and a limited assurance
engagement in relation to Scope 3 emissions within the Greenhouse Gas Inventory Report (the ‘Inventory Report’) of
Synlait Milk Limited and its subsidiaries (the ‘Group’) for the year ended 31 July 2023, comprising the Emissions Inventory
and the explanatory notes set out on page 31 to 50.
The Inventory Report provides information about the greenhouse gas emissions of the Group for the year ended 31
July 2023 and is based on historical information. This information is stated in accordance with the requirements of
International Standard ISO 14064-1 Greenhouse gases – Part 1: Specification with guidance at the organisation level for
quantification and reporting of greenhouse gas emissions and removals (‘ISO 14064-1:2018’) and the Greenhouse Gas
Protocol: A Corporate Accounting and Reporting Standard (2004) (‘the GHG Protocol’).
Board of Directors’ Responsibility
The Board of Directors are responsible for the preparation of the Inventory Report, in accordance with ISO 14064-1:2018
and the GHG Protocol. This responsibility includes the design, implementation and maintenance of internal control
relevant to the preparation of an Inventory Report that is free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on Scope 1 and 2 emissions and a limited assurance conclusion on Scope
3 emissions in the Inventory Report based on the evidence we have obtained. We conducted our reasonable and
limited assurance engagements in accordance with International Standard on Assurance Engagements (New Zealand)
3410: Assurance Engagements on Greenhouse Gas Statements (‘ISAE (NZ) 3410’), issued by the New Zealand Auditing
and Assurance Standards Board. That standard requires that we plan and perform the engagement so as to obtain
reasonable and limited assurance about whether the Inventory Report is free from material misstatement.
Reasonable assurance for Scope 1 and 2 emissions
A reasonable assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves performing procedures to
obtain evidence about the quantification of emissions and related information in the Inventory Report. The nature, timing
and extent of procedures selected depend on the assurance practitioner’s judgement, including the assessment of the
risks of material misstatement, whether due to fraud or error, in the Inventory Report. In making those risk assessments,
we considered internal control relevant to the Group’s preparation of the Inventory Report. We also:
• Assessed the suitability in the circumstances of the Group’s use of ISO 14064-1:2018 and the GHG Protocol as the
basis for preparing the Inventory Report;
• Evaluated the appropriateness of quantification methods and reporting policies used, and the reasonableness of
estimates made by the Group; and
• Evaluated the overall presentation of the Inventory Report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Limited assurance for Scope 3 emissions
A limited assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves assessing the suitability
in the circumstances of the Group’s use of ISO 14064-1:2018 and the GHG Protocol as the basis for the preparation
of the inventory report, assessing the risks of material misstatement of the inventory report whether due to fraud or
error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation
of the inventory report. A limited assurance engagement is substantially less in scope than a reasonable assurance
engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the
procedures performed in response to the assessed risks.
The procedures we performed were based on our professional judgement and included enquiries, observations of
processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification
methods and reporting policies, and agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures listed above we:
• Through enquiries, obtained an understanding of the Group’s control environment and information systems relevant
to emissions quantification and reporting, but did not evaluate the design of particular control activities, obtain
evidence about their implementation or test their operating effectiveness.
• Evaluated whether the Group’s methods for developing estimates are appropriate and had been consistently
applied. However, our procedures did not include testing the data on which the estimates are based or separately
developing our own estimates against which to evaluate the Group’s estimates.
• Undertook a site visit to assess the completeness of the emissions sources, data collection methods, source data
and relevant assumptions applicable to the site. The site selected for testing was chosen taking into consideration
their emissions in relation to total emissions, emissions sources, and sites selected in prior periods. Our procedures
did not include testing information systems to collect and aggregate facility data, or the controls at this site.
Inherent Limitations
Scope 1, 2 and 3 emissions
Non-financial information, such as that included in the Group’s Inventory Report, is subject to more inherent limitations
than financial information, given both its nature and the methods used and assumptions applied in determining,
calculating and sampling or estimating such information. Specifically, GHG quantification is subject to inherent uncertainty
because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine
emissions of different gases.
As the procedures performed for this engagement are not performed continuously throughout the relevant period
and the procedures performed in respect of the Group’s compliance with ISO 14064-1:2018 and the GHG Protocol are
undertaken on a test basis, our assurance engagement cannot be relied on to detect all instances where the Group may
not have complied with the ISO 14064-1:2018 and the GHG Protocol. Because of these inherent limitations, it is possible
that fraud, error or non-compliance may occur and not be detected.
The Group uses publicly available emissions factors in preparation of the Greenhouse Gas Inventory. We have agreed
these to their source, but the scope of the engagement does not provide assurance over the emissions factors or the
agricultural science used to determine the emissions factors.
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Scope 3 emissions
For the Scope 3 emissions, we note that a limited assurance engagement is not designed to detect all instances of non-
compliance with the ISO 14064-1:2018 and the GHG Protocol, as it generally comprises making enquires, primarily of the
responsible party, and applying analytical and other review procedures.
In addition, Scope 3 emissions relating to on-farm emissions (especially fertiliser and methane production for dairy cows)
are inherently uncertain due to the fact that they arise from natural processes which may vary depending on contributing
factors.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional
behaviour.
Our firm carries out other assignments for the Group in the areas of taxation compliance, climate risk assessment
advisory, financial and reporting advisory, and consulting support services. Other than in our capacity as assurance
provider and the provision of these services, we have no relationship with or interests in the Company or any of its
subsidiaries.
The firm applies Professional and Ethical Standard 3: Quality Management for Firms that Perform Audits or Reviews
of Financial Statements, or Other Assurance or Related Services Engagements, which requires the firm to design,
implement and operate a system of quality management including policies and procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory requirements.
Use of Report
Our assurance report is made solely to the directors of the Group in accordance with the terms of our engagement.
Our work has been undertaken so that we might state to the directors those matters we have been engaged to state
in this report and is for no other purpose. We accept or assume no duty, responsibility or liability to any other party in
connection with the report or this engagement, including without limitation, liability for negligence in relation to the
conclusions expressed in this report.
Reasonable Assurance Opinion for Scope 1 and 2 Emissions
In our opinion, the Scope 1 and 2 emissions of the Group within the Inventory Report for the year ended 31 July 2023
have been prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018 and the GHG
Protocol.
Limited Assurance Conclusion for Scope 3 Emissions
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the Group’s Scope 3 emissions within the Inventory Report for the year ended 31 July
2023 are not prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018 and the
GHG Protocol.
Chartered Accountants
9 January 2024
Christchurch, New Zealand
This reasonable and limited assurance report relates to the inventory report of Synlait Milk Limited and its subsidiaries (the ‘Group’) for the year ended 31 July 2023
included on the Group’s website. The Directors are responsible for the maintenance and integrity of the Group’s website. We have not been engaged to report on
the integrity of the Group’s website. We accept no responsibility for any changes that may have occurred to the information since they were initially presented on
the website.
The reasonable and limited assurance report refers only to the information named above. It does not provide an opinion on any other information which may have
been hyperlinked to/from this information. If readers of this report are concerned with the inherent risks arising from electronic data communication, they should
refer to the published hard copy of the information and related reasonable and limited assurance report to confirm the information included in the information
presented on this website.
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Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.