LIC 2024 Sustainability Report

There's always room for improvement
Livestock Improvement
Corporation Limited (LIC)

Sustainability Report
For the year ended 31 May 2024
The DNA of a
more profitable and
sustainable dairy herd
for New Zealand
farmers

This report presents information about
LIC’s environmental, social and economic
performance for the year ended 31 May 2024
and has been reviewed by LIC’s Board of
Directors. LIC has reported in accordance
with the Global Reporting Initiative (GRI)
Standards for the period 1 June 2023 to
31 May 2024.
The report is intended to meet our commitment to
report on LIC’s environmental, social and economic
performance, but it’s also an opportunity to
demonstrate how we are responding to sustainability
challenges facing our farmers and the New Zealand
dairy sector. It outlines how we are helping farmers
understand and improve their emissions and
demonstrates that, with a sharper focus on herd
improvement, NZ farmers can produce high quality
milk products from sustainable, high performing cows.
Our external auditors KPMG have performed
procedures to ensure that financial data included
in this Sustainability Report is consistent with LIC’s
Annual Report.
We are committed to open and transparent reporting
on sustainability and will continue to further develop
our reporting framework over time.
About
this report
LIC Sustainability Report
2

Contents
Who we are 4
Why sustainability matters to LIC 5
Key Highlights 6
Letter from the Chair & Chief Executive 7
Our strategy 9
Environmental Sustainability 14
Reducing the environmental footprint of our national herd 17
Reducing the environmental footprint of our business 25
-Science-aligned emissions targets 25
-Our emissions 26
Social sustainability – caring for our people 32
Governance Structure 33
Caring for our people 35
Employee Data 40
Economic Sustainability 42
Our Business 47
How we work 49
How we create value 52
Engaging with our stakeholders 54
Materiality Assessment 56
GRI content index 57
For the year ended 31 May 2024
3

Who we are
We exist to deliver superior genetics and technological
innovation to help our shareholders sustainably farm
profitable animals.
LIC is a New Zealand dairy farmer-owned co-operative and leader in pasture-
based dairy genetics and herd improvement.
LIC is headquartered in the Waikato, with over 25 sites across New Zealand,
Australia, UK and Ireland. With origins dating back to 1909, LIC has a long history of
delivering world-leading innovations for the dairy sector. This is even more relevant
to farmers today given the rapid change the sector is undergoing and the growing
climate challenges we’re facing. Who we are and what we do has never been more
important for Kiwi farmers, our sector and New Zealand.
As a farmer-owned co-operative, all of our profit is returned to our farmer
shareholders in dividends or reinvested into new solutions and research and
development (R&D).
LIC shares are listed on the NZX. To be a shareholder in LIC, you have to farm dairy
cows in New Zealand, supply a New Zealand milk processor and buy a minimum
amount of qualifying products and services from LIC every season.
LIC Sustainability Report
4

Why sustainability matters to LIC
Kiwi farmers, our sector and the New Zealand Government are focused
on a more sustainable approach to farming, so we must continue to
improve our environmental credentials.
Sustainability is not only important to us as a business, but also because of the
critical role we play in helping dairy farmers meet their own sustainability goals.
Our strategy focuses on building a strong, sustainable co-operative, leading in
our field and delivering value for our shareholders and sector. As a co-op, we
understand the role we must play in driving positive change through collective
action on climate change in New Zealand and supporting our farmer shareholders
on the journey. We are committed to driving sustainability improvements and
helping to reduce emissions on-farm, with projects and initiatives in both these
areas underway.
At LIC we believe in supporting our farmers and their herds in reducing biogenic
methane. We have expanded our number of trial animals in recent years to focus
on R&D in this area, as well as improving heat tolerance, on behalf of the sector. We
expect this research to lead to lower methane-emitting bulls in our bull team, as well
as contributing to lower methane emissions in the national herd.
We support our 9,000+ shareholder farmers through genetics, genomics, milk
testing and diagnostics, together with leading research and innovation, to produce
the most sustainable and efficient animals and the highest value product.
For the year ended 31 May 2024
5

Key Highlights
Environment
Supporting shareholders
to produce the most
sustainable and efficient
animals and reducing
emissions at LIC
‘BeHerd’ Engagement
survey result
Five-year rolling
average increase
in genetic gain
(Genomic Breeding Worth)
For long-term users of LIC
genetics (across 2018 –
2023 cohorts)
2023/24 change compared to 2018/19 (base year)Up 1.3% from 389.4 kgMS
prior rolling 3-year average
3.46% decrease
on previous year
Total revenue
from continuing
operations
MILLION
MILLION
Lost time injury
frequency rate
Total
dividends
Full time
equivalent
employees
R&D and
investment in
business
Investment & capital spend
(excluding NMR share sale)
$27.6m up 34.1% from last year
R&D investment $21.2m up
14.2% from last year
1
Source: New Zealand Dairy Statistics 2022-23
74
$
267.3

$
48.9
Reduction in LIC’s
Scope 1 & 2 CO
2

Emissions
Rolling 3 year
average milk
production
Cows in
national herd
14.7
%

Increase in LIC’s
biogenic methane
CO
2
Emissions
2.6
%

2.35
900
+

Social
Caring for our staff and our farmer shareholders
Economic
Delivering value to our farmer shareholders by investing in initiatives to help
them breed the most profitable and sustainable animal
MILLION
$
26.8
$
20.5
394.5
kgMS
1
gBW
4.67

MILLION
1
Down 3.3% from $276.5
million last year
Final dividend declared
$8.3 million or 5.84
cents per share, Special
dividend paid $18.5 million
or 13 cents per share
This is the first result from our
new engagement survey using
Microsoft’s Viva Glint software in
May 2024 and is just below the top
quartile of global organisations
using the same tool. There was an
84% employee response rate.
(Per 200,000
hours worked)
Up from 2.23 last year
Plus close to 1,700
seasonal workers
If we’re milking fewer cows, we need to milk better ones.
LIC Sustainability Report
6

Letter from the Chair
& Chief Executive
Our ongoing focus on sustainability is important and we’re pleased to
report on the progress we’ve made in the last year. This report is an
important way for us to be transparent, hold ourselves accountable
and measure the progress we are making on our sustainability journey
as we deliver on our commitments to our farmer shareholders. This is
also our first year of climate reporting and our Climate Statements for
the year ended 31 May 2024 are available on LIC’s website at Climate
Disclosure Reporting.
Sustainability is at the heart of everything we do for farmers today
and in the future
The most significant impact we can make as a business is through helping to reduce
the environmental footprint of the national dairy herd.
While making meaningful contributions to New Zealand’s emissions targets is
a long-term game, now is the time to help our farmer shareholders breed more
efficient and climate-friendly cows. We continue to roll up our sleeves and sharpen
our focus on providing farmers with the tools they need to do just that.
While we are continuing to provide farmers with precision genetics and technology
tools today, we are also keeping a watchful eye on what farmers need in the future.
To this end, we continue to invest heavily in research and development (R&D) to
help farmers do what they do best, but for a changing world.
For the year ended 31 May 2024
7

Partnering to breed a low
methane cow
We are always looking at how we can innovate to
provide our farmers with a range of products to help
them solve climate change challenges. The successful
programmes we have built with our partners are
enabling us to make significant progress towards
achieving our commitment to help farmers reduce
emissions on farm.
Our methane research programme, in collaboration
with CRV and Pāmu and with funding from the NZ
Agricultural Greenhouse Gas Research Centre
(NZAGRC), is progressing well. We continue to
investigate the link between methane emissions
from bulls and their offspring with the intention of
breeding more climate-friendly cows that produce
less methane.
The programme is now in its fourth year. We initially
found that a bull’s genetics do play a role in how much
methane they emit: the lowest bulls in the trial emitted
around 15-20% less methane than the average after
accounting for food eaten. Last year, these bulls were
mated with heifers from Pāmu farms and we are now
testing the methane emissions from these offspring
to ensure the genetic variation is representative of
their fathers and will report on these results in the
coming year.
We hope to produce a methane breeding value and
give dairy farmers the opportunity to access low
methane elite genetics by 2026. This has the potential
to make a real difference to farmers by helping to
ensure emissions reductions don’t come at the cost of
reducing milk production.
Developing a genetic solution for
heat tolerance
Another long-term commitment we have made is to
our heat tolerance research programme. The aim of
the programme is to provide New Zealand farmers
with high genetic merit dairy cows with improved heat
tolerance.
Heat stress has significant welfare implications
for animals. For dairy cows it can also impact feed
intake, milk production, fertility and calf birth weight.
Introducing the ‘slick’ gene into the country’s dairy
herd could allow for a significant improvement in dairy
cow performance in hotter temperatures over the
long term.
We have completed a climate-controlled study
on calves, which was a follow-on from a pilot trial
conducted last year to test the response to cold
stress. This trial had positive results, showing no
significant difference in response to colder conditions
between slick calves and non-slick calves.
Today, our commitment remains to breed
better cows, faster
Over the last year, we invested $21.2 million into our
R&D efforts, which includes both our methane and
heat tolerance programmes. We are committed to
these investments and are continually innovating to
create a sustainable future for New Zealand’s dairy
sector and the farmers within it.
The dairy sector needs to continue to evolve – for
climate change and because of it, and therefore the
production efficiency of our national herd has never
been more important.
Efficient cows produce more milksolids per kg of feed
eaten, have a fertility advantage and have a lower
emissions footprint per kg of milksolids.
Farmers consistently using our genetics are breeding
genetically superior animals, and at a faster rate. In
fact, long-term users of LIC genetics have continued
to double the rate of genetic gain in their herds
over the last 10 years – these gains are cumulative
and permanent, delivering long-term benefits into
the future.
Throughout the last year we have worked hard to
support both our organisation and farmers through
managing cost pressures and other challenges.
We would like to thank our employees and farmer
shareholders for their ongoing support and hard work.
We continue to believe that the co-op is in a strong
position to navigate the unique challenges facing the
dairy sector, both now and into the future. We look
forward to keeping you updated on LIC’s sustainability
journey and how we are continuing to push for more
improvement that will support New Zealand farmers to
reduce intensity of emissions and retain their position
as the world’s most efficient dairy milk producers.
Corrigan Sowman David Chin
Chair Chief Executive
17 September 2024
LIC Sustainability Report
8

Our strategy
How we drive value
for our farmers
Doing what we are good at.
Playing to our strengths.
Our Farmers
Deepen our understanding
of the current and future
needs of all of our farmers.
Animal
Most sustainable &
efficient animal. Highest
value products.
Data & Digital
Modernising the
animal data & digital
capabilities.
Innovation
Research &
development.
Responsive innovation.
Creating value for our farmer shareholders is at the heart of everything we do.
Our strategy focuses on building a strong
sustainable co-operative, leading the world in
our field and delivering outstanding value for our
customers, shareholders and sector, next year, in
five years and for another 100 years.
Our three commitments.
Our strategy makes three commitments
to our farmer shareholders.
Operational Excellence
We commit to getting the basics right and
delivering for you, on time, every time.
Faster Genetic Improvement
We commit to having your back when
it comes to helping you meet the
environmental challenges you face,
in particular animal efficiency and
methane mitigation.
Software Reliability
and Performance
We commit to being better at delivering
our software to you. We renew our
commitment to continuous improvement
and transparency around delivery of
new features.
For the year ended 31 May 2024
9

Measuring our
three commitments
If we can measure it, we can manage it.
Our farmers rightly ask how they can hold us accountable for
delivering on the commitments – this continues to be a priority for us.
There are measures and targets in place for each commitment and
progress is monitored throughout the year. The measurements provide
our business with clear goals and expectations for what delivering on
our commitments looks like.
The measurements and targets are not about perfection, they are
the improvement we are aiming for. We report to farmer shareholders
annually on progress at events such as our Annual Meeting.
While these metrics have been recognised as important to
farmers and these targets are where we believe we can improve
and make a difference, we know that the needs of farmers can
change. The measurements and targets are reviewed and updated
annually as needed.
10
LIC Sustainability Report

2023-24 Commitment Measurements
We’re pleased to report that we have
achieved most of our Commitment targets this
year, although we recognise that the semen
quality batch issue experienced in November
2023 is not represented in the below metrics.
Key: Target met Some exceptions Target not met
Operational excellence:
38
%
Herd
Testing
50% reduction in negative
feedback received on Herd
Testing set ups
Achieved
99.4
%
Johne’s Disease
Testing
10 working day turnaround
time for test results
(from the sample being
collected on-farm)
10
Achieved
Artificial Breeding
Deliver a Non-Return Rate
(at an AB Tech group level)
within +/- 9.99% of the
AB Supervisor average
for the area
99.9
%
of AB Tech groups
(1 AB technician near
low group)
Achieved
3.3
%
Artificial Breeding
Achieve a sexed semen
NRR differential of <=5%
compared to conventional
fresh semen
Achieved
99.8
%
Artificial Breeding
98% of frozen semen straws
on-farm at least one day prior
to the required-on-farm date
(for all orders placed 7 days
in advance of the required-
on-farm date)
Achieved
99.2
%
Milk Pregnancy
Testing
10 working day turnaround
time for test results
(from the sample being
collected on-farm)
10
Achieved
75
%
Customer
Experience Centre
Answer 70% of calls within
30 seconds
Achieved
99
%
GeneMark
®
4-week turnaround time for
test (from booking week)
for 95% of samples
Achieved
4
For the year ended 31 May 2024
11

Key: Target met Some exceptions Target not met
Faster Genetic Improvement:
Software Reliability:
34
%
Premier Sires Bull
Team genetic gain
3-year rolling average rate
of increase in the gBW of the
Premier Sires bull teams to
exceed the 10-year historical
average rate of increase by
20%, resulting in 31.7% target
Achieved
31.2
%
Sire Proving Scheme
Bull Team genetic gain
3-year rolling average rate
of increase in the gBW of the
Sire Proving bulls to exceed
the 10-year historical average
rate of increase by 20%,
resulting in 29.2% target
Achieved
20.5gBW
Rate of genetic
gain on farm
17 gBW 5-year rolling
average gain (for herds
with >80% replacements
sired by LIC bulls)
Achieved
99.9
%
MINDA
®
availability
including allowable
downtime
Available 99% of time
Achieved
9 7. 7
%
MINDA
®

performance

95% of events are
processed through the
holding pen within 5 minutes
5
Achieved
98.9
%
MINDA
®
availability
excluding allowable
downtime
Available 97% of time
Achieved
100
%
MINDA
®

Roadmap
95% delivery of the
published MINDA
®
and
integrations roadmap
Achieved
99.9
%
Integrated
software partners
LIC systems are available
to receive information
from integrated partners
99% of time
Achieved
LIC Sustainability Report
12

For the year ended 31 May 2024
13

Environmental
Sustainability
The most significant impact we can make is through helping to
reduce the environmental footprint of the national dairy herd.
The dairy sector needs to continue to evolve, for climate change and
because of it. At LIC, we are committed to reducing the environmental
footprint of our business.
Herd improvement is what we do - we provide farmers with the precision
genetics and technology tools they need to improve their herds and
be more sustainable, while remaining profitable and productive. We’re
amplifying this through genomic science to deliver results for farmers at a
faster rate.
The results some farmers are achieving show that, if we sharpen our focus
on herd improvement, we can reduce intensity of emissions and continue to
have the world’s most efficient dairy herd. High producing, climate-friendly
cows aren’t just a hope for the future - they exist in the national herd today
and are well within reach for every dairy farmer. We simply need more of
them and our products and services provide farmers with an opportunity to
do just that.
LIC Sustainability Report
14

By assessing genetic data, our models estimate that over the past 30 years
the genetic improvement in our Premier Sires
®
semen delivered on-farm has
resulted in a 11% reduction in enteric methane and 14% less urinary nitrogen
emission intensity per kilogram of milksolid produced, noting that the size
of the dairy herd increased 80% during that period (1993 to 2023 increase
- New Zealand Dairy 2022/23 Statistics report), which increased absolute
methane emissions of the national herd.
The increased rate of genetic improvement in production and fertility traits
without any increase in animal liveweight, and the shorter generation
interval that genomic selection enables has created a consistent trend of
New Zealand farmers breeding more emissions efficient cows and, year-on-
year, they’re doing it faster.
New Zealand dairy farmers continue to embrace a range of tools to improve
herd sustainability and productivity. The New Zealand Dairy Statistics
report 2022/23, produced by LIC and DairyNZ, shows that over 80% of
cows were herd tested and this is one of a number of tools that farmers
are using to help improve milk quality and production. The percentage of
cows artificially inseminated increased to 82.0% from 81.4% in the previous
season. This reflects a continued trend of New Zealand farmers remaining
focused on improving the production efficiency of their herds, and utilising
data and insights to support on-farm decisions.
Furthermore, the trend of declining cow and herd numbers also continued
but was accompanied by a 0.3% increase in kilograms of milksolids
processed compared to the previous season.
Key Metrics
Urinary nitrogen
Urinary nitrogen deposited from cattle, particularly lactating cows, is a source of
surplus nitrogen which is susceptible to be lost as a contaminant to its surrounding
environment either as nitrous oxide, a potent greenhouse gas, or leached from
the soil as nitrate. Similar to methane, the recent trends of improved efficiency are
greater than the long-term trend.
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
1990
199520002005201020152020
2025
Urinary Nitrogen per milksolids
(Kg Nu/Kg MS)
Mating Year
Team Weighted Average, All Breeds, LIC gBV's 11 April 2024
Nitrogen - Premier Sires 1989 to 2023
For the year ended 31 May 2024
15

Methane per Milksolids
(kg CH
4
/kg MS)
Breeding Worth
BW (LIC GE - 9 May 2024)
BW compared to methane per milksolids (kg CH
4
/kgMS)
0.2
0.25
0.3
0.35
0.4
-400-2000200400600800
Enteric methane
Enteric methane is a key emission from ruminant livestock
and the main greenhouse emission produced in pastoral dairy
farming. Using our genetic data, LIC has been able to model
the genetic potential enteric methane emissions relative to
milksolids production for the lifetime of the female progeny of the
Premier Sires teams. The 2023/24 season was consistent with the
previous season. The consistent trend over the past nine years
can be attributed to better genomic selection and uptake of the
genomically selected Forward Pack products by farmers. Forward
Pack and genomic selection results in shorter generation interval,
which is now showing a consistent trend, greater than the 30-year
average trend.
0.20
0.22
0.24
0.26
0.28
0.30
0.32
Enteric methane per milksolids
(Kg CH
4
/Kg MS)
Mating Year
Team Weighted Average, All Breeds, LIC gBV's 11 April 2024
Methane - Premier Sires 1989 to 2023
1990
1995
2000
20052010201520202025
LIC Sustainability Report
16

Reducing the environmental
footprint of our national herd
We’re helping farmers breed better cows and get the best from them.
As part of our commitment to faster genetic gain, our
team of scientists has investigated the full spectrum of
MINDA
®
herds in search of the ‘best cows’ and whether
a clear correlation existed between genomic Breeding
Worth (gBW) and milk production efficiency.
All cows aren’t created equal
The research reaffirms that the best cows (with high
gBW) are more efficient at turning feed into milk – they
produce more, have a fertility advantage and are more
emissions efficient. If we’re going to help our sector
meet its environmental goals, New Zealand farmers
must breed more of those highly efficient cows that sit
at the top, and fewer of those who sit at the bottom.
We don’t need more cows – we need
better cows
At an individual farm level there can be many variable
factors, but it is conceivable that by 2030 a farmer’s
whole herd could be performing at the level of their
top 25% cows today. The goal is to maintain total milk
production from fewer cows, therefore reducing on-
farm emissions intensity.
Breeding better cows, faster, is the key to helping
farmers solve the challenge of being profitable and
sustainable. We’ve made good progress over the years
but, to continue on this trajectory, we need to sharpen
our focus.
For the year ended 31 May 2024
17

Long term users of LIC genetics are already doing
this – they’ve doubled the speed of improvement
in their herds over the last decade. They’re
breeding better cows faster, and genomics is the
key contributor.
Over the past 30 years we have invested significantly
in genomics and, alongside farmers’ herd
management decisions, it has played a key role in the
faster rates of genetic improvement we’ve seen.
The increased utilisation of genomics in our breeding
programme and increased farmer uptake of young
genomically selected sires has gone hand-in-
hand with higher rates of increased genetic gain in
farmers’ herds.
Genomic records, ancestry information and
technology allow us to accurately identify elite bulls
at a young age so we can start using those animals to
breed the next generation of cows sooner. The use of
genomics in our breeding programme means we can
reduce the generation interval from five years to two.
Farmers are making the switch to high gBW genomic
bulls for the value that they deliver on farm. Genomic
sires feature in our premium artificial breeding
offerings, including the Premier Sires
®
Forward Pack,
A2/A2, Alpha
®
and liquid sexed semen. During the
2023/24 year, 79.5% of fresh semen straws used for
breeding replacements were from our premium bull
teams (2.25 million straws), up from 78.9% the year
prior (2.30 million straws).
Long-term users of LIC genetics are ahead of the
pack and moving at pace to increase the speed of
improvement in their herds.
0
50
100
150
200
250
300
350
gBW
Average Genetic merit of animals born each year,
sired by LIC bulls (gBW)
LIC Sustainability Report
18

Key updates and refinements to our herd improvement toolbox
1. Enhancing our GeneMark
®

DNA testing service
GeneMark
®
Genomics
LIC has combined its DNA parentage testing and
genomic evaluation services into one service to
help farmers identify their highest genetic merit
animals to improve their herd. Every eligible sample
for female animals sent to LIC’s GeneMark
®
lab will
receive parent verification as well as a confirmed
genomic evaluation (GEv). By offering parentage
verification and genomic evaluation in one service,
farmers can take the guesswork out of matching
calves to their parents for added precision in their
breeding programme, while also receiving data to
assist in selecting the highest genetic merit animals
to join their milking herd. The significant number of
genotypes that will be collected through the use of
this product will also enable the selection of the best
genomic heifers as bull dams to drive approximately
9% improvement in the rate of genetic gain (equating
to a reduction of 1.4 years in the cow-to-bull pathway).
Identify calves with genetic variants
During the course of a five-year research programme,
LIC scientists discovered multiple genetic variants
that impact animal health to the tune of up to $10
million in lost production each year across the
national dairy herd. Animals that are tested through
GeneMark
®
are now automatically screened for
variants that have the most impact, free of charge,
and farmers are informed of any affected animals in
their herd. Identifying these animals via GeneMark
®

helps to ensure that farmers rear the healthiest,
higher performing animals.
2. Animal health testing
Johne’s disease is a contagious infection estimated
to cost New Zealand more than $40 million in lost
production each year. It is caused by a bacterium
which infects the gut of dairy cows and other
ruminant animals. Common side effects include lower
milk production, difficulty reproducing and rapid
weight loss.
This disease is common in dairy cows, but it can be
difficult to detect. LIC provides individual animal
testing for Johne’s disease; in the year ended 31 May
2024 testing increased by 10% to a record level of
nearly 1.28 million tests.
For the year ended 31 May 2024
19

LIC has developed an innovative JD testing reporting
dashboard that combines the Johne’s test results with
other animal data held in MINDA
®
. The dashboard
is now undergoing beta testing. The purpose of the
dashboard is to identify any trends in relation to
Johne’s disease. The dashboard will help farmers
optimise value from their livestock by presenting
information in an accessible way to assist vets and
farmers to monitor and enhance their on-farm.
Johne’s control strategies, creating the opportunity
to drive down Johne’s prevalence and improve animal
health and production.
In addition, LIC has conducted analysis of data
collected over the last ten years from 2,700 dairy
herds over 16 regions to identify risk factors and
associations. Results from this analysis will offer
valuable insights for disease management and are
expected to be published later in 2024.
3. Sexed semen
We have a state-of-the-art laboratory solely
dedicated to the production of sexed semen, which
sits alongside our bull farm and semen processing
lab and is the world’s biggest fresh sexed semen
sorting facility.
Our fresh sexed semen is accelerating genetic gain
within our dairy herds by enabling farmers to get
more high-quality replacement heifer calves from top
performing cows. We are the only provider of fresh
sexed semen in New Zealand, which delivers a higher
conception rate than frozen sexed semen options. A
resulting pregnancy has approximately a 90% chance
of producing a heifer, providing more high genetic
merit heifer calves to enable the best to be selected
and be part of the next generation of our national
dairy herd.
Sexed semen non-return rate performance for the
most recent season was back within the expected
range of no less than below 5% compared to
conventional fresh semen after disappointing results
in the previous season – the actual result was 3.3%
below conventional fresh semen. We continue to work
on maintaining results going forward.
4. HoofPrint and BeefPrint
Our HoofPrint and BeefPrint indexes rank our artificial
breeding bulls on their environmental efficiency. The
10-point ranking systems enable farmers to select
bulls based on their predicted ability to generate
offspring with a lower environmental impact –
the higher the score, the more environmentally
efficient they are.
HoofPrint ranks and compares enteric methane and
urinary nitrogen per kilogram of milksolids produced.
BeefPrint is based on the same methodology
principles, although it ranks beef bulls for their lifetime
enteric methane and urinary nitrogen per kilogram of
meat produced.
77
8
9
BEEFPRINT
®
LIC Sustainability Report
20

Looking to the future
Our R&D investment and focus on innovation
is helping Kiwi dairy farmers retain their
position as the most efficient milk producers in
the world, playing a critical role in helping the
sector meet its climate targets.
We are one of the largest investors in R&D in the
primary sector. In the reporting period we invested
$21.2 million, the equivalent of 7.9% of revenue.
We invest in the areas where we have unique
capability to maximise the value our farmer
shareholders generate from their livestock and their
product, taking innovations from lab to paddock.
5. FarmWise
®
consultants
Our FarmWise
®
consultants are increasingly focused
on helping farmers adjust to changing seasons and
weather patterns. They tailor solutions appropriate
to the farm and region, including changes to calving
and milking patterns, stocking rates, cropping
and alternative pasture species. Anticipating and
planning for change rather than relying on historical
methods and thinking is critical to navigating
climate change.
For the year ended 31 May 2024
21

In its first year the programme, backed by the New
Zealand Agricultural Greenhouse Gas Research
Centre and partnering with CRV, measured the feed
intake and methane emissions from 281 young bulls
set to father the next generation of New Zealand’s
dairy cows. We found there is genetic variation in the
amount of methane emitted after accounting for the
feed eaten by the bulls, with the lowest bulls emitting
around 15-20% less methane than the average. The
second year of the research measured methane
emissions from approximately 300 young bulls from
LIC’s 2022 Sire Proving Scheme and CRV’s 2022
Progeny Scheme.
In collaboration with Pāmu, we are breeding from bulls
that we have identified to be high or low methane
emitters. Now that their daughters have been born
we will measure their emissions as growing yearlings
and during their first milking season to ensure their
methane emissions are representative of their fathers.
The target is to generate 200 daughters from 25 of
the highest and 200 from 25 of the lowest methane
sires from 1,050 pregnancies. We are tracking these
animals from birth and have recently received the
first group of heifers into our methane measuring
facilities on our Tauwhare farm, with results from the
measurements expected in early 2025. We will also be
measuring standard measurements such as growth
rates, reproductive performance and milk production.
Variation in methane emissions of trial bulls
Methane Research Programme
0
20
40
60
80
100
120
140
036912151821242730333639424548
g CH4/kg DM
Our methane research programme has confirmed that bulls’ genetics play a role in how much methane they emit,
highlighting the potential for farmers to breed low methane-emitting cows in the future.
Inseminations
with bulls that
are either high or
low for methane
production.
2022
400 heifer
calves born
2023
Methane
measurements
from daughters
2024
Include
methane variation
in bull selection
2026
First daughter
lactations:
For herd testing
and analysis of milk
composition
2025
Estimated
timeline to offer
low-methane
genetics
LIC Bull
Catalogue includes
low methane
emitting bulls
2027
CH
4
LIC Sustainability Report
22

LIC is conducting a seven-year breeding programme assessing the impact of the ‘slick’ gene in
cattle, which produces a short hair coat and improves heat tolerance.
Heat stress has significant welfare implications for
animals. Dairy cows are especially susceptible to
heat stress due to their high metabolic heat load
associated with the demands of lactation. For dairy
cows it also impacts feed intake, milk production,
fertility and calf birthweight.
The pilot trial found cows with the ‘slick’ gene had
lower rumen temperatures (0.5-1.0°C) compared to
their non-slick counterparts when the Temperature
Humidity Index exceeds 73 (around an ambient
temperature of 26°C and a humidity of 60%).
Furthermore, no significant differences in rumen
temperatures have been observed between the two
groups during the New Zealand winter months.
The aim of the breeding programme is to provide
New Zealand farmers the opportunity to have high
genetic merit dairy cows with improved heat tolerance
by 2029. Before we offer heat tolerant genetics to
farmers, we want to make sure cows that have the
‘slick’ coat also have the high genetic merit and milk
production expected of New Zealand dairy cows.
We are using genomic technology to speed up the
breeding programme as we can screen an animal’s
DNA at birth to determine whether it possesses the
slick gene.
The current step in the breeding programme is
to mate slick genetics with elite cows on selected
commercial farms in New Zealand. This step will
significantly increase the rate of genetic improvement
of animals with slick genetics, while increasing the
number of slick animals on the ground and the
diversity in LIC’s breeding programme. The trial work
remains ongoing to ensure that, when these genetics
are released to New Zealand farmers, LIC has a robust
understanding of the performance of the slick gene
and its potential to improve the welfare of our dairy
cows in the future. If progress continues as expected,
in 2029 farmers will be able to breed from high
genetic merit SLICK KiwiCross
®
sires, with the resulting
offspring having a significant improvement in animal
welfare and milk production during heat stress events.
Increasing heat tolerance in cows
For the year ended 31 May 2024
23

Farmers are proactively looking at ways
to mitigate consumer, environmental and
animal welfare concerns
That’s why over the past few years we have been
running a breeding programme to develop an easily
identifiable dairy-beef product with good calving
ease and growth traits, targeting the crossbreed and
Jersey markets. This programme could support an
increase in value from calves but is reliant on the full
supply chain being in place, including rearers, finishers
and processors, as well as beef being a financially
viable option.
The performance of animals being bred is being
compared to other beef breeds each season.
We continue to lead the ‘Resilient Dairy’ research programme, with investment and support from
MPI and DairyNZ. The seven-year Sustainable Food and Fibre Futures programme, launched
in June 2019, seeks to enhance the health and wellbeing of the national dairy herd and drive a
step-change in sustainable milk production by producing better cows.
This programme involves investing in new disease
management technologies and advancements
in genomic science to produce better cows with
improved health, wellbeing and environmental
resilience. We are using our genomics sequencing
technology to find genetic strands and discover which
cows have particular viruses or bacteria.
Milkomics™
The Milkomics
™
workstream has identified and
quantified a significant number of species in milk,
including bacteria, viruses, protozoans and fungi.
Our team has produced a dashboard that allows us
to compare the number of bacteria at the individual
farm level and at a regional scale. We have enough
baseline data to establish national baselines for the
species present and can produce individual farm
reports. Knowing what microbes and viruses are
present within the herd and at what level means
that pathogens can be dealt with in a timely and
appropriate fashion. By comparing the qualitative
and quantitative profile of targeted pathogens with
profiles obtained from a national, regional and/or
farm level it should be possible to identify potentially
problematic microbes and viruses and establish a
plan to eradicate these from the herd if appropriate.
Facial eczema
Facial eczema is a disease caused by the ingestion of
toxic spores of a fungus that grows on pastures in New
Zealand. The fungus prefers warm, moist conditions
and is seen mostly in the North Island, typically over
the summer and autumn. The disease causes liver
damage, in the worst cases affected animals die. The
challenge in collecting facial eczema phenotypes is
the incidence varies from season to season. Herds
can be impacted one year and not impacted again
for several years. However, climate change is likely to
increase the presence of the fungus.
A milk biomarker test has been a breakthrough in the
collection of phenotypes. The test has been validated
and used to investigate the genetic susceptibility of
facial eczema and the biomarker has been used to
identify herds with liver damage via blood sample.
Over 10,000 individual cows have been blood sampled
over the past 3 years and testing has confirmed we
can measure genetic variation in facial eczema,
with around 23% estimated due to genetics. LIC has
developed the facial eczema breeding value (FE) to
enable farmers to breed cows that are more resistant
to the disease.
Resilient Dairy is a long-term research programme
and we look forward to updating shareholders as
more findings from the programme become available.
Dairy-beef productResilient Dairy: Innovative breeding for a sustainable future
LIC Sustainability Report
24

Reducing the environmental footprint of our business
LIC is a Climate Reporting Entity and we have published our first
Climate Statements for the year ended 31 May 2024. LIC has
adopted certain exemptions available for the first year of reporting
and this Sustainability Report has been prepared on the same basis
for consistency.
Our focus has been on accurately reporting the emissions directly associated
with our operations and activities, as well as those emissions that occur
upstream and downstream of our value chain where we have significant
influence. As a result, LIC has adopted the first year exemption provision in
relation to not reporting Scope 3 emissions calculated to ensure we can fully
report our Scope 3 emissions once we have materially established our full
value chain.
In October 2021, LIC pledged its support for Pathways to Dairy Net Zero, a new
global initiative which aims to accelerate climate change action and reduce
greenhouse gas (GHG) emissions across the dairy sector.
We have a public, science-aligned, emissions reduction target. We are working
with suppliers to reduce their emissions, and we consistently build sustainability
into our purchasing decisions.
Science-aligned emissions targets
LIC previously set the below emission reduction targets based on science
using tools and methodologies freely available from the SBTi (Science Based
Target initiatives) as well as the NZ Government Climate Change Response
Act 2020, to reduce our greenhouse gas emissions and contribute to limiting
the temperature increase to 1.5°C of pre-industrial levels against our 2018/19
base year:
While we have been working hard on reducing emissions, the organisation is
in the process of reviewing the above targets and the base year calculation
to ensure that the metrics are appropriate given the challenges with sufficient
novel technology and innovation being available to achieve the targeted
emissions reduction, as well as to reflect LIC’s unique role in assisting the New
Zealand dairy sector to drive down methane emissions.
Reduction of
Scope 1 & 2 emissions
(excluding biogenic
methane) by 2030
46.2
%
10
%

Reduction of
Scope 1 biogenic
methane by 2030
For the year ended 31 May 2024
25

We first measured our emissions in the 2018/19
financial year (1 June 2018 – 31 May 2019).
These measurements currently serve as
our base year for all future emissions to be
compared against
From our base year 2018/19 to 2023/24 we have had
an overall reduction in our total Scope 1 & 2 CO
2

emissions of 14.7%, the equivalent of 716.9 tCO
2
.
Our 2023/24 Scope 1 biogenic methane emissions
have increased by 2.6% from base year, the equivalent
of 83.2 tCO
2
. However, most of the increase was due
to a significant increase in trial animals compared
to base year, which is expected to decrease again
over time.
The table to the right highlights our scope 1 & 2
emissions profile and how we are tracking compared
with the base year.
Our emissions
2018/19 Base year2023/24Reduction/Increase
Scope 1
Direct emissions tCO
2
-e
4,502.33,944.3
-12.4%
Scope 2
Indirect emissions tCO
2
-e
377.1218.3
-42.1%

Scope 1
Biogenic methane - Direct emissions CH4 (tCO
2
-e)*
3231.13,314.3
2.6%
Total Scope 1 & 2 emissions8,110.57,476.9
-7.8%
*Increase in biogenic methane is primarily due to an increase in trial animals compared to the base year.
The 2018/19 Scope 1 – Direct emissions base year has been recalculated to include Crop N
2
O 50.3 tCO
2
-emissions
to ensure comparability with the current year. Crop N
2
O is not a material emissions source but is higher than the
de minimis threshold under Ministry for the Environment guidance material
2
.
2
Measuring emissions: A guide for organisations: 2024 detailed guide |
Ministry for the Environment
LIC’s top ten emissions sources were:
ScopeEmission source2018/192023/24
23/24 change
from base year
Scope 1
Diesel2,756.02,327.9
-15.5%
Petrol regular568.1337.6
-40.6%

LPG stationary commercial84.393.6
11.1%

Natural Gas distributed
commercial
89.592.1
3.0%

Excreta N
2
O689.3696.4
1.0%

Fertiliser N
2
O84.4105.2
24.6%

Crop N
2
O50.389.4
77.8%

Indirect N
2
O emissions140.5135.9
-3.3%

Scope 1 Biogenic methaneEnteric fermentation methane3,193.53,219.1
0.8%

Scope 2Electricity377.1218.3
-42.1%

LIC Sustainability Report
26

Fuel emissions continue to decline with petrol
emissions having a 40.6% reduction from base year
and diesel reducing by 15.5%. LIC diesel emissions
decreased by 16.7% from the previous reporting year,
however this is likely to stagnate until viable vehicle
alternatives are available to reduce our fleet diesel
emissions. Petrol emissions decreased from the
previous year by 30.9%.
Total Scope 1 agricultural biogenic methane
emissions increased by 2.6% from base year in the
2023/24 reporting year due to increased stock
numbers, including animals in LIC trials across NZ
that are not on LIC farms. The number of beef and
heat tolerant trial animals increased from 172 in the
base year to 447 animals in 2023/24, equating to an
additional 537 tCO
2
emissions. The total number of
trial animals reduced by 53 animals in the 2023/24
reporting year compared to 2022/23 and is expected
to continue to reduce in the future. This also
impacted elements of Scope 1 CO
2
emissions.
Further initiatives we have underway or planned for 2024/25 to help reduce our emissions are outlined in the table below:
ObjectiveActions
Reduce fuel emissions
– Scope 1 emissions
• Replacing fuel-based vehicles with EVs/Hybrids wherever practical – target of
50% of 30 vehicles due to be replaced in 2024/25
• Install further EV charging stations at LIC locations and in employee homes for
LIC EV vehicles
• Purchase electric ATV for Awahuri bull farm
Reduce use of artificial
fertilisers – Scope 1 emissions
• Whole farm soil testing to enable targeted fertiliser applications on
paddock basis
Energy reduction plan
– Scope 1 emissions
• Energy audit at Newstead
• Implement initiatives from Year 1 of the LIC Energy Strategy 2024–2030 – Trial
IoT system, data analysis from newly installed solar systems.
Reduce biogenic
methane emissions
• Methane reduction research programme to breed for lower methane emitting
bulls in future
• Reduce stocking rate while keeping production level - increased feed growing
on farm utilisation and conversion to milk, reduce bought-in feed
• Improve effluent management at our dairy farm
Improve Scope 3
data capture
• Survey staff on transport information to and from work
Staff engagement
• Organise events to engage with staff in reducing their carbon footprint
including guest speakers
GHG fuel emissions tCO
2
-e
Season
05001,0001,5002,0002,5003,0003,5004,000
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
DieselPetrol regularPetrol premiumPetrol premium
For the year ended 31 May 2024
27

To ensure we are accurately reporting GHG
data we use Toitū Envirocare’s external carbon
calculator. Some data quality improvements
have been made since our last report. Our full
GHG Inventory Report is reviewed by LIC’s Senior
Leadership Team.
We are not currently utilising carbon credit
offsetting. The Board will review our position on
offsetting over time as our emission calculations
continue to mature. LIC’s farms would also
likely be impacted if an agriculture farm-level
emissions pricing scheme is introduced in future.
Emission ScopesLIC GHG inventory inclusions
Scope 1
Direct GHG
emission sources
Diesel, petrol, reticulated
natural gas and LPG, and
agricultural emissions
from our farms (excluding
biogenic methane)
Scope 2
Indirect GHG
emission sources
Purchased electricity
Scope 3
Other GHG
indirect
emission sources
Methane from our livestock
and the onsite wastewater
treatment plant at our
Newstead Head Office
LIC Sustainability Report
28

What we’re doing to improve business sustainability
Environmental Management System
We have an Environmental Management System as
a framework to manage our environmental impacts.
This includes an Environmental and Sustainability
Management Committee, which has representatives
from each business unit. The committee reviews
the environmental aspects and the inherent and
residual risk of all activities, products and services
of our business and suppliers and contractors, and
evaluates current/suggested controls to avoid,
mitigate or remedy any adverse effects of each
aspect. The members of the committee maintain
LIC’s Environmental Aspects Register for each area of
the business.
Strategy Documents
In March, the Environment Team presented the
Environment and Sustainability Strategy for 2024-
2027 to the Senior Leadership Team (SLT). The
strategy encompasses waste reduction, greenhouse
gas inventory improvements, transition planning,
energy initiatives, and the integration of Te Ao Māori
Principles for environmental sustainability, along
with work in the biodiversity space, and sustainable
transport solutions. A survey was conducted in
February 2024 which will be used to further shape our
strategy and transition plan going forward.
The Energy Strategy for 2024-2030, an in-depth
companion to the Environment and Sustainability
Strategy, was also presented to the SLT in April.
The Energy Strategy is based on a ‘record, replace,
reduce’ framework to help LIC transition to cleaner
energy sources.
Solar panels
LIC has a target of reducing its Scope 2 GHG
(Greenhouse Gas) emissions from electrical power
usage by 46.2% by 2030. Rooftop solar power panels
have been installed at Innovation Farm and our
Newstead head office has installed more than 480
solar panels that are expected to produce over 1,500
kilowatt hours per day in summer and half that in
winter. This is conservatively estimated to reduce
our grid usage by approximately 20% and Scope 2
GHG emissions by 13%. Further to the environmental
benefits, solar power can potentially provide added
resilience to the organisation’s power supply, with
an additional power source to electricity through the
grid. In future, we will consider where we can introduce
battery capability and solar panels across other
LIC sites.
Initiatives to support our staff and suppliers to
reduce their greenhouse gas emissions include:
• Vehicle tracking to enable vehicle efficiency
• Allowing employees to charge their EVs while
at work through our significant footprint of EV
chargers at various LIC sites
• Soft plastics recycling, e-waste, and battery
collections on site
• Environmental Training Module – the course offers a
brief overview of LIC’s Environmental Management
System and Environmental Policy
• Polystyrene recycling at Newstead and Riverlea –
includes polystyrene from either work or personal
activities
• Changed our Waikato milk supplier to Dreamview
Creamery, a local Raglan supplier who uses
sustainable practices and provides the milk in
reusable glass bottles
Vehicles
To help reach our targets we’re transitioning our
fossil fuel company cars to include options of EV and
hybrid models and we continue to grow the number
of vehicles that are EV or hybrid, with the current fleet
including 10% EVs and 19% hybrid vehicles.
We have 69 EV chargers installed, including 34 home
chargers for employees with company vehicles and 1
super-fast (60kw/hour) charger at our Head Office in
Waikato. Staff with personal EVs are able to charge
For the year ended 31 May 2024
29

their vehicles on site at no cost to them with the aim of
encouraging staff to select an EV when purchasing a
new car. We have upgraded the power infrastructure
at head office, which will allow for an additional 26
chargers to be installed as demand increases. We
have plans to add a further seven chargers in the
near future.
Travel
We encourage video conferencing for meetings
involving our people and partners to reduce travel
where possible and support flexible working with the
benefit of reduced emissions from commuting.
Farms
We have an ongoing programme of investment
to continue to upgrade our waste management
infrastructure across our farms, as well as shade
planting for animal welfare and riparian planting
to lessen the impact of our farming activities on the
environment. Each LIC farm has its own individual
environmental management plan and staff are
trained to ensure compliance. The Farm Environment
Plans cover aspects such as soil type, stocking rates/
policy, riparian plantings, waterways, flood risks,
effluent, pasture renewal/cropping, fertiliser use and
GHG emissions. They are comprehensive documents
that review our whole farm system and identify
areas for improvement in terms of environmental
performance. We have set timelines for implementing
the improvements we have identified.
We have numerous policies relating to animal welfare
and all animals entrusted to our care are treated with
respect in accordance with the Dairy Cattle Code of
Welfare 31/10/2019 (a Code of Welfare issued under
the Animal Welfare Act 1999).
We also use fencing to keep our animals away from
waterways and sensitive areas on our farms.
We are working, in partnership with Ravensdown,
to install an EcoPond effluent treatment system
trial at Innovation Farm. The EcoPond uses a dosing
system and is expected to reduce up to 99% of
methane emissions derived from microorganisms in
the effluent pond. The system is expected to reduce
water pollution and GHG emissions and could also
serve as an educational resource for our staff and
visitors, showcasing the benefits of responsible water
management.
On LIC farms we generate waste oil from our
equipment. Scrap metal oil filters and other parts
are recycled and we are in the process of procuring
a 1,000 L waste oil storage tank. An external party
will then collect the waste oil for no charge and
recycle the oil.
Water management
We have consents to discharge trade-waste
from operations at Riverlea in the Waikato and in
Christchurch and have a consent to discharge to land
from the wastewater treatment plant (WWTP) at head
office. The WWTP uses anaerobic reticulation to treat
waste before being fed through a wetland filtration
system and finally discharging to land. We also have
several bore water wells on farm.
There have been a number of instances of planned
discharges which breach existing resource consent
conditions (notably in Christchurch) but no unplanned
events/ discharges.
We have been working with Christchurch council for
some time and in June completed an upgrade of
the Tradewaste treatment facilities in Christchurch,
which should mean that the site discharges should
now be within resource consent levels for the
upcoming season.
Waste management
We recycle farm materials such as silage wrap and
plastic drums and are seeking new ways to reduce
water and energy use across all our sites. E-waste
items, such as obsolete laptops and phones, are sold
where possible or recycled.
Our animal health laboratory at Riverlea in Hamilton
receives numerous polystyrene cool store boxes and
we have a recycling process to manage this waste. We
also allow LIC staff to bring in clean polystyrene from
their homes to recycle at work. In 2023/24 we diverted
66.8 m
3
of polystyrene from landfill, recycled through
an external company.
We began a food waste recovery system in our onsite
cafeteria at Newstead and have diverted over three
tonnes of food waste from landfill since July 2023
through a local worm farm in the Waikato. We are
in the process of expanding this service across the
Newstead campus and investigating food waste
recovery at our other sites.
LIC expanded its soft plastic recycling scheme to
Christchurch in late 2023. The scheme allows staff
to bring in soft plastics from home as well as recycle
all viable soft plastics from our processes. In 2023/24
we recycled 378 bags of soft plastics through the
programme, equating to approximately 2.3 tonnes of
soft plastics being diverted from landfill.
LIC Sustainability Report
30

Our Australian subsidiary, Beacon Automation
Pty Ltd, produces heat patches and is working on
identifying options to recycle plastic waste from the
production process and produce products that could
be more environmentally friendly. They have also
calibrated their machinery so that they need less raw
material to produce their products and in turn reduce
the volume of scrap waste to landfill through the
production process. This change has reduced waste
by approximately 3%.
Waste left on farm
When AB services are performed on farm, our
technicians generally leave materials that have been
used during the process, such as gloves and wipes,
although we are looking at options to safely recycle
items such as gloves. This year we had 50 of our
Spring technicians participate in a trial to recycle
insemination gloves and sheath bags. So far, we
have diverted over 200kgs of soft plastics that would
have been left on farm to Future Post to contribute to
the manufacturing of their fence posts. The next step
is to roll this out nationally for the 2024 Winter and
Spring AB seasons.
Where we perform services on farm that collect
biological material, such as herd testing, strict
processes are followed to minimise the chance of any
transfer of disease between farms.
To minimise the risk of disease transferral:
• Our AB Technicians ensure that boots are cleaned
and disinfected on entering a farm, use single-use
gloves that cover up shoulder and chest area,
single-use disposable sheaths and isopropyl wipes
to clean equipment between farms;
• An additional antibiotic is added to semen diluent
that targets M.bovis; and
• New young bulls are quarantined from existing
bulls for a period of time, bulls used for
international markets are quarantined and tested
as required under regulations and double-fencing
is used to separate individual bulls in the core
bull team, as well as daily monitoring for any
health concerns.
For the year ended 31 May 2024
31

Social sustainability –
caring for our people
We are focused on fostering a culture that
embraces change, builds capabilities,
encourages people and ultimately drives results
to deliver greater customer value. We invest in our
people to develop their talent and ensure they
are in a positive and safe working environment.
Alongside our full-time employees, in peak season we
also employ close to 1,350 seasonal employees in the
Artificial Breeding (AB) area and 350 other seasonal
or casual workers throughout the year to help in other
areas of the business, such as herd testing. Each year,
our qualified AB technicians visit farms in their local
area, artificially inseminating millions of cows, with the
peak season being from September to December.
For LIC social sustainability is all about
caring for our people, ensuring that they
have the tools and support they need to
continue to deliver value to our farmer
shareholders.
Key Metrics
More than 900 full-time
equivalent employees,
of which 582 are women
Over 9,000 farmer
shareholders
Lost Time Injury
Frequency Rate (per
200,000 hours worked)
up from 2.23 last year
900
9,000
2.35
LIC Sustainability Report
32

Governance
Structure
Our governance structure includes a Board
of Directors, Shareholder Reference Group,
and Senior Leadership Team. These groups
all contribute to driving value for our farmer
shareholders.
Board of Directors
Our Board is responsible for the overall governance of
LIC on behalf of our farmer shareholders to improve
the prosperity and productivity of our customers.
LIC Directors set the vision and long-term goals
of the co-operative. This includes the strategy to
achieve that vision, as well as the monitoring of its
implementation. Information on sub-committees of
the Board is available in the governance section of
LIC’s annual report.
The Board must be comprised of at least six elected
farmer directors, and up to four independent
directors to allow specialist expertise to be added
when needed, while balancing the number of Elected
Directors between the North and South Island.
At the annual meeting in October 2023, Board Chair
Murray King stepped down and Victoria Traynor was
elected as Elected Director for South Island in his
place. Corrigan Sowman was appointed as Board
Chair and Board Director Ken Hames was replaced by
Duncan Coull as North Island Director.
Elected Directors Matt Ross and Dr Alison Watters
have both advised that they are not seeking re-
election at the end of their current terms. Appointed
Director Candace Kinser is due to retire by rotation
in October 2024 and has decided not to seek re-
appointment.
Left to right (as at 31 May 2024): Victoria Trayner, Ben Dickie, Candace
Kinser, Matt Ross, Corrigan Sowman, Tim Gibson, Alison Watters, Duncan
Coull, Sophie Haslem
For the year ended 31 May 2024
33

Shareholder Reference Group
Our Shareholder Reference Group is an independent body of shareholders
who work collaboratively with our Board and management. The group serves
to promote the interests of shareholders and help us deliver on our purpose
and vision.
The Shareholder Reference Group is solely comprised of farmer shareholders. It
is made up of 12 members across four territories. Eight members are elected by
shareholders and four are appointed by the existing members of the Shareholder
Reference Group to ensure diversity and a broad range of skills in the Group.
Senior Leadership Team
Our SLT is tasked with working alongside the Board to develop and implement
our short and long-term strategy and to establish the key metrics that we will be
measured against, so that we know we are delivering on the commitments made
to shareholders.
From left to right (as at 31 May 2024): Mark Hooper (Chair), Michelle Oldham-Smith, Phil Lowe, Andrew Wiffen, Dan
Joho, Aleisha Bloomfield, Johan van Ras, Ben Smith (Deputy Chair), Jared Clarke, Mark Benns, Shaun Baxter.
From left to right: Brent Mealings (Chief Financial Officer), Roz Urbahn (Chief People Officer and Acting GM NZ
Markets), David Chin (Chief Executive), Mark Julian (GM Operations & Service), Emma Blott (GM Commercial),
Richard Spelman (Chief Scientist), Dhaya Sivakumar (Chief Information Officer)
LIC Sustainability Report
34

Caring for our people
Wellness
Creating a supportive and sustainable internal culture
across our business has been vital to achieving the
successful results we’ve seen in recent years.
‘Well Aware’ is our centralised health and wellness
strategy, incorporating physical, mental and social
wellbeing, and has been in place for around four
years. The Well Aware Hub on the LIC intranet
provides a one-stop shop for information on a well
body, well mind, and a balanced life for our staff.
‘Mental Wellbeing at Work’ is the flagship programme
of the ‘Well Aware’ strategy and is available to all
permanent and fixed contract staff. It is designed
to support our employees to thrive within a work
environment through an introduction to a holistic
approach to wellbeing, and connection to support
services we have available under each area (well
body, well mind, well life). In addition, Well Aware
also offers a compulsory module called ‘Supporting
Mental Wellbeing at work’ for all people leaders. This
module is led by a registered EAP psychologist and
is designed to upskill our people leaders on how to
appropriately support employees experiencing an
emotional/mental crisis.
A Resilience workshop module is also in the final
stages of being completed, this workshop will be
available for all staff to sign up to.
EAP Services continue to remain our EAP provider and
this support is free, confidential, and available to all
LIC staff and their immediate family members.
The ‘Well Aware’ strategy promotes health and
wellbeing at every level, leading to an engaged, safe
and sustainably high-performing workforce. The
programme continues to organise a series of guest
speakers to provide staff with additional information
to support mental, emotional and physical
wellbeing at work. Recent examples in the past year
have included:
• How to claim back your energy – mid-year energiser
strategies
• This changes everything: the menopause talk
• The power of financial wellbeing
• From burnout to thriving
Organisational Health
The focus is always on improving with the support of
our employees. We have previously used the McKinsey
Organisational Health Index (OHI) methodology to
survey employees on the impact of our organisation
practices and culture on performance against
international benchmarks. This year we decided to
review the type of survey we were using.
In partnership with Microsoft Viva Glint, LIC’s new
‘BeHerd’ survey helps us build on our previous work
to create a positive working environment where
employees can all be their best selves. This was
launched in May 2024 for the first time to permanent
employees. We achieved a high response rate of 84%
participation in the survey.
The result was 74 out of 100 in engagement, which
was based on two key questions: ‘How happy are
you working at LIC’ and ‘I would recommend LIC
as a great place to work’. The results from over
forty questions in the survey and a large volume of
verbatim comments has provided excellent material
for insights and for opportunities for improvement to
be identified. The next BeHerd survey is intended to
be repeated in November 2024.
We are also currently creating a specific survey for our
employees that work at LIC in seasonal roles, which is
due to go out later in 2024.
For the year ended 31 May 2024
35

Diversity, Equity & Inclusion
Given the size and nature of our business we have a
diverse workforce. To continue recognising diversity in
the workplace and creating an inclusive environment,
we have a staff-led Diversity, Equity and Inclusion
Committee to champion these concepts.
Regular communications are sent out to all of LIC
on key events and topics of interest. The Diversity,
Equity & Inclusion newsletter highlights cultural and
international events and celebrations, and provides
information on topics relating to diversity, equity and
inclusion.
For 2023/24 the Committee focused on
• Implementation of a Te Ao Māori Strategy; and
• Establishment of a Women in Leadership group.
Te Ao Māori
With the partnership of Tira (formerly Tutira Mai) we
have finalised a Te Ao Māori Strategy. The strategy
identified a summary of next steps to embed into LIC:
1. Principles – strategy name Te Whakapiki, reinforce
in team meetings, display on website, compose
a karakia.
2. Knowledge – provide learning opportunities
and improve through practice to include te reo
and tikanga.
3. Legacy – how we act now should be about people’s
mana and what is left behind should benefit those
that are yet to come. Mana whenua and its story of
the land that LIC is on. By active communication,
publish whakapapa and include on website, display
signage and iconography.
A key part of our Head Office campus was rebuilt over
the past year and officially opened in November 2023.
As part of this project local mana whenua kaumātua,
Ngāti Haua, our cultural advisor and a cultural artist
were consulted and invited for a blessing of the
building. The blessing was a special opportunity to
acknowledge and bury Piki, the Mauri stone that was
gifted to LIC by Ngāti Haua. The stone was blessed
and buried under our new walkway into the building,
and a plaque added to acknowledge the stone’s
significance.
Women in Leadership
LIC launched the Women in Leadership group in
2023, which showcased two panel discussions and a
Knowledge Share.
During 2023/24:
• 68 members have now joined the online Women in
Leadership group.
• We held two Women in Leadership focused panel
discussions:
-One with three prominent leaders at LIC and
focussed on the challenges they have faced as
women in leadership positions and the strategies
they employed to overcome them.
-Another with four up-and-coming leaders at LIC.
The discussion focused on the challenges they
have faced as women new to leadership and one
panellist brought a different perspective as a
father of four young women.
• There was a presentation by Linda Cooper,
previous LIC CFO and Chair of Agri-Women’s
Development Trust. Linda joined us on International
Women’s Day to talk through some of the highlights
and challenges she has faced during her career.
The Committee’s focus for 2024 has also been to
review roles and responsibilities and create a Purpose
Statement. The Committee aims to be more focused
on prioritising deliverables and targets. Key projects
that have been identified are:
• Women in Leadership
• Te Whakapiki Strategy
• Neurodiversity
• Family and Caregiving
• Hiring
• Knowledge Share presentations
The latest employee survey collected demographic
statistics, which will be again used to identify areas
where further objectives could be focused.
LIC Sustainability Report
36

Ethnic Diversity %
Based on responses to the 2024 BeHerd survey
Asian British European Indian
Māori NZ European Other (includes Pacifica)
Prefer not to disclose
Engagement with Diversity Works NZ is ongoing and
our membership of this organisation allows access to
a wide range of resources.
57
3
5
11
5
3
12
4
For the year ended 31 May 2024
37

Health & Safety (H&S)
The health and safety of our staff, our customers, contractors, and anyone else we come in contact with, remains our highest priority.
Our health and safety system provides the framework to keep workers healthy and safe, regardless of their location.
Our Health, Safety and Wellbeing policy sets out our
commitments and reflects our intent to continue to
develop our health and safety culture. The focus is
on becoming more proactive - where we continue to
take personal ownership, learning safety lessons from
our safety events, and anticipate future safety risks
and needs.
The annual ACC Accredited Employers Programme
audit was completed over three days in February
2024. LIC successfully passed the audit, retaining
its secondary level accreditation. The auditor
noted several examples of continuous improvement
initiatives. These included: highlighting investigations
and actions taken concerning fatigue management,
the development of a new “Plant and Equipment
checklist” to assess risks associated with new and
changed equipment, a thorough operations review
by an external agency to confirm risk assessment
and controls as well as follow-up manager training.
The auditor also noted the development of improved
contractor control processes and increased quality
and quantity of records of contractor monitoring,
improvement of risk registers with significant input
from staff, and evidence of improved awareness.
The auditor highlighted several areas for
improvement, including the need to standardise
methods for recording PPE issued to workers,
increasing employee representation across under-
represented workgroups, targeted analysis of first aid
and emergency equipment requirements across sites,
and ensuring that appropriate processes are in place
to ensure that any claimant entitled to indexation is
promptly identified and provided with this entitlement.
Plans are currently underway to address these areas.
Some of the specific focus areas for the Health, Safety
& Environment (HSE) team this year included:
1. Leadership development
• A learning group was created to review platform
use in Herd Testing to improve risk understanding
with the aim of introducing better controls.
• Collaborative response between the HSE team
and Shannon lab leadership team to address risk
control shortcomings in minimising exposure to MEK
(methyl ethyl ketone), a hazardous substance used
in the AB long last liquid laboratory.
• AB leaders proactively requested tailored risk
management training for leaders and H&S
Representatives following MEK risk control review,
which the HSE Team provided.
2. Working together
As part of our focus on improving our staff
engagement, we have invested in improving our
workers’ voice in health and safety and wellbeing.
LIC has one elected H&S Representative for every 19
permanent workers. Our Health & Safety Governance
Forum, chaired by our Chief Executive Officer and
attended by a range of managers and employee
representatives from business units, allows workers
and senior leaders to collaborate on H&S matters. The
forum specifically reviews critical risks reporting from
each business unit and tracks improvement against
the 48-hour event reports and seven-day event
investigation timeframes.
LIC is finalising consultation with workers on changing
the current single workgroup to multiple workgroups
that work better for business units and better
represent workers in the regions. Initial feedback
from teams is that they have welcomed the reset
and the opportunity to formalise how workers will be
represented in their own work areas, especially for
those who predominately work out in the field.
LIC Sustainability Report
38

3. Critical risk management
SLT members and Board Directors spend time with
workers to understand our critical risk profiles and
gain assurance that the controls are effective. During
the year, 17 SLT and 9 Director site visits were carried
out, reviewing all critical risks in a range of locations.
The improved understanding of our risk profiles allows
us to ensure adequate resources are made available.
A number of H&S site visits, including 121 H&S audits,
by the team provides another layer of assurance that
critical risks are identified and controlled.
LIC has 66 identified instances of hazards that pose
an extreme risk to workers’ health and/or safety,
based on the LIC enterprise risk matrix rating
(extreme risks are deemed to be critical H&S risks).
The HSE team has assisted all but one of the
business units and national teams with a review
and consolidation of their risk registers, and work is
underway with the outstanding team. This exercise
has resulted in a risk register that is significantly
shorter and clearer, saving time taken to conduct
risk reviews.
4. Asking the right questions
We have set specific H&S objectives designed to
focus our attention on improving our systems and
practices. Our progress against these objectives is
reviewed on a quarterly basis by the H&S Governance
Forum. LIC has also started a review of ‘violence and
threatening behaviour’ risk following several adverse
experiences by staff while serving our customers. This
is unacceptable and additional controls are currently
being developed. The objectives for 2024/25 have
been refreshed and H&S reporting to senior leaders
and board members continues to be reviewed and
improved.
5. Supporting our injured and ill workers
As a member of the ACC Accredited Employers
Programme we are responsible for the vocational,
medical and social rehabilitation of our workers. There
has been a steady improvement in rehabilitation and
return to work rates for our injured employees over the
last three years. In the last year both the number of
claims and the associated rehabilitation costs have
decreased. For the last three years, we have attained
secondary level accreditation against ACC audit
standards.
6. Improving the safety of our
AB technicians
Providing secure, appropriate Artificial Breeding (AB)
facilities is not only critical to creating a safe working
environment, but it also gives our AB technicians
the best opportunity to get cows in-calf. To help our
farmers get the best results from our AB service and
ensure the safety of our AB technicians, we have
developed a national standard which details the
minimum requirements that an AB facility must meet
for us to provide our AB technician service.
We are working with farmers to further remove the
risk of working from heights, which we consider to be
a critical risk, in relation to herringbone sheds. The
first step was to cease the AB service from the pit of
a herringbone shed on a trolley from May 2023, and
we continue to work with our farmers to move away
from working from the pit of the herringbone shed
altogether by May 2025.
LIC has also signed the Farm Without Harm pledge
by Safer Farms, reinforcing our dedication to creating
safer conditions across our farms and protecting our
people from preventable harm.
For the year ended 31 May 2024
39

Employee Data
This employee data relates to the total
LIC group and is sourced from our Human
Resource (HR) system. The data for
permanent and fixed-term employees is
reported on a full-time equivalent (FTE) basis.
We employed a total of 1,688 seasonal workers
throughout the year ended 31 May 2024 (1,747 for
prior year), particularly during peak season for a
relatively short period of time, primarily as artificial
insemination technicians, with 1,344 technicians and
assists in this area and 344 other seasonal or casual
workers throughout the year to help in other areas of
the business, such as herd testing.
The reporting period is for the financial year ended 31
May 2024 (FY24), with final permanent and fixed-term
employees reported as at 31 May and comparatives
for the prior period (FY23). Our only significant
location is New Zealand, with less than 5% of
employees employed in any other individual country.
Our HR system does not currently capture gender
options alternative to male/female. Some age data is
not available as employees are not obliged to disclose
date of birth.
PermanentFixed term/CasualTotal
FY23FY24FY23FY24FY23FY24
Female487.2521.981.560.1568.7582.0
Male323.0319.213.015.0336.0334.2
Total810.2841.194.575.1904.7916.2
FTEs by employment contract by gender
Full-timePart-timeTotal
FY23FY24FY23FY24FY23FY24
Female540.2548.228.533.9568.7582.1
Male326.8322.89.211.3336.0334.1
Total867.0871.037.745.2904.7916.2
FTEs by employment type by gender
Number of FTEs (Permanent and fixed-term/casual)
FY23FY24
New Zealand879.6890.2
Australia19.120.0
UK & Ireland6.06.0
Total904.7916.2
FTEs by employment contract by region
LIC Sustainability Report
40

There were 17 permanent employees (2%) covered by a
collective bargaining agreement at 31 May 2024, and
a further 26 (1.5%) seasonal workers during the period.
For employees not covered by collective bargaining
agreements, individual contracts are entered into at
the time of employment.
During the year, there were 33 females (no males)
on parental leave and 19 females returned from
parental leave.
If significant operational changes are proposed
within the organisation, LIC will consult with
potentially impacted employees for a two week
period on the proposed changes, with a minimum of
six weeks in total from notice of proposed change
until implementation of any final changes. For
any employees covered by collective bargaining
agreements, notice period and provisions for
consultation and negotiation are specified in those
agreements.
LIC engages with suppliers to provide workers, such
as IT contractors, recruitment firms and directly with
independent contractors. This number is not material
compared to the number of LIC employees.
The ratio of the annual total compensation for
the organisation’s highest-paid individual to the
median annual total compensation for all permanent
employees (excluding the highest-paid individual)
for the year ended 31 May 2024 was 7.25:1 and 6.35:1
for the annual relative % increase, noting that total
compensation includes bonus payments.
<30 yrs age30-50 yrs age>50 yrs ageAge not disclosedNZ region FY24%
Female253066164
Male32663536
Total28561296
%295813100
<30 yrs age30-50 yrs age>50 yrs ageAge not disclosedNZ region FY24%
Female283186763
Male518174037
Total334925107
%314623100
New permanent employee headcount hires, by gender and age group for primary region
Employee headcount turnover, by gender and age group for primary region
For the year ended 31 May 2024
41

Economic Sustainability
Delivering value for our farmer shareholders
is at the centre of everything we do, and
strong financial performance enables us to
do just that – through our herd improvement
products and services, a solid dividend and,
importantly, the right R&D investment to
keep their herds profitable and sustainable
into the future.
On 18 July 2024 the LIC Board announced its
financial result for the 2023/24 year, ending the year
with no debt and a modest profit and dividend for
shareholders while continuing to invest in innovations
for shareholders.
The Board noted that the 2023/24 financial year
had produced some difficult conditions for the co-
operative with a reduced milk price environment, a
subsequent reduction in activity driving a lower bull
valuation, ongoing cost inflation, tax changes, and
a semen quality issue that resulted in over $2 million
worth of credits paid to farmers ($1.4 million impact on
NPAT and Underlying Earnings).
Farmer shareholders are the heart of our co-operative
and it was a particularly difficult year for them with
a lower milk price environment alongside continuing
high input and debt servicing costs. The impacts of
the lower milk price were felt across New Zealand and
were reflected in the 3.3% reduction in revenue.
Throughout the 2023/24 financial year the
organisation identified cost savings to offset reduced
revenue and this allowed the co-op to still post a profit
and pay out a dividend to its shareholders.
LIC Sustainability Report
42

Key Metrics from 2023/24 full year results
Summary of financials*
Underlying
Earnings
Total
Dividends
Outlook
Total assets,
Strong balance
sheet with no debt
at year-end
Total
Revenue
Down 41.6% from $23.7
million last year
Includes the $18.5m Special
Dividend paid earlier this year
The co-op expects Underlying
Earnings* for 2024/25 to be in
the range of $16-22 million
Down 6.2% from $382.3
million last year
Down 3.3% from $276.5
million last year
$
13.9
m
$
26.8
m
$
16-22
m
$
358.6
m
$
267.3
m
Net Profit
After Tax (NPAT)
Down 71.7% from $27.4
million last year
$
7. 7
m
*For notes to the financial information please reference our FY24 Annual Report.
Tax
LIC’s Audit, Finance and Risk board sub-committee oversees tax
compliance, including LIC’s Tax Policy and annual Tax Management
Plan, which identifies areas of tax change. LIC seeks to comply with all
aspects of the New Zealand and international tax acts for jurisdictions
that our subsidiaries reside in. Management has responsibility to
ensure that it has a broad understanding of all major tax issues
that arise from the ordinary business, major transactions, business
structures or strategies undertaken by LIC. LIC uses external tax
experts and tools to ensure appropriate tax compliance governance
and controls are in place.
Tax legislation enacted in March 2024 removed the ability to
depreciate commercial buildings for tax purposes from the 2024/25
income tax year. The application of this tax change created a one-
off, non-cash accounting adjustment to tax expense at year end
of approximately $4 million, with a corresponding increase in LIC’s
deferred tax liability balance.
For the year ended 31 May 2024
43

241
249
263
277
267
20202021202220232024
Revenue ($ millions)*
20202021202220232024
Operating Expenses ($ millions)**
209
217
230
246246
Financial Metrics
These charts represent our key financial metrics to provide a historical
summary of our performance.
20202021202220232024
EBIT ($ millions)**
33.2
31.9
33.4
31.0
21.7
20202021202220232024
R&D spend ($ millions)*
14.8
17.1
18.2
18.6
21.2
Total Dividends ($ millions)***
20202021202220232024
18.1
17.8
40.4
23.3
26.8
Full year dividend declaredSpecial dividend paid
20202021202220232024
Funding ($ millions)
16
19
64
55
42
-2
0
0
00
CashDebt
* Data excludes Discontinued Business operations – the Automation business was divested in June 2021
** Excludes bull team & nil paid share revaluations and Discontinued Operations
*** The full year dividend declared is paid in the subsequent year, while special dividends are paid within the year
LIC Sustainability Report
44

20202021202220232024
Return on equity %
6.0%
7.8%
9.1%
9.2%
2.8%
20202021202220232024
% Premium (incl Genomic) Replacement Straws
54.0%
60.0%
71.0%
78.9%
79.4%
$0.00
$0.50
$1.00
$1.50
$2.00
May-19May-20May-21May-22May-23May-24
LIC Share Price $
0
50
100
150
200
250
300
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
10.00
07/0808/0909/1010/1111/1212/1313/1414/1515/1616-1717/1818/1919/2020/2121/2222/2323/24
FC
New Zealand Milk Price Payouts kg/MS
Fonterra Milk PriceFonterra DividendLIC Revenue $m (excl. Automation)
For the year ended 31 May 2024
45

20202021202220232024
Revenue *NZ$000240,932249,013 263,182276,506267,288
R&D spendNZ$000
(14,844)(17,124)(18,184)(18,577)(21,215)
Net profit after taxNZ$00017,48722,94426,72327,352
7,734
EBIT **NZ$00032,22431,90433,37230,95521,712
Underlying EarningsNZ$00022,68522,26125,67723,73213,856
Total dividends***
NZ$m
18.117.840.423.326.8
Cents per share12.7512.5128.4316.3818.84
Gross yield %23.014.726.422.823.4
Operating cashflowNZ$000
52,01840,45657,13036,79140,052
Net capital & investment spend****NZ$000(21,401)(16,115)(17,889)(20,581)(27,600)
Total AssetsNZ$000379,940382,005385,610382,291358,608
Total Equity/Net AssetsNZ$000290,242294,123293,057297,494274,913
Sales data
Premium (incl Genomic) straws 1,666,5641,792,648 2,071,321 2,303,5372,248,792
Other replacement straws1,397,386 1,206,049 864,709 616,923582,337
Total straws (NZ)4,438,732 4,343,830 4,322,316 4,418,2634,230,761
International straws857,427 1,059,777 1,055,168 1,035,8881,020,756
Herd testing samples10,407,918 11,170,13411,199,277 11,274,64110,207,239
GeneMark
®
testing768,943 629,166 728,876 757,851661,339
Animal health testing1,045,487 1,294,996 1,571,509 1,723,4891,808,327
MINDA
®
animals6,998,649 7,006,900 6,912,997 6,807,1646,688,007
Trends
For our full financial results please refer to our FY24 Annual Report
* Excludes Discontinued Business operations – the Automation
business was agreed to be divested in June 2021
** Excludes bull team & nil paid share revaluations and
Discontinued Operations
*** Includes dividends declared, which are paid in the subsequent
year. There was an additional Special Dividend of $14.2
million, or 10 cents per share, paid in January 2022 following
the Automation divestment. The 2023 dividend includes an
additional amount of $4.3 million to return cash retained from
dividends paid in 2022 to repay nil paid shares (2022 included
a similar additional amount of $5.7 million). There was an
additional Special Dividend of $18.5 million, or 13 cents per
share, paid in February 2024 following the sale of National Milk
Records shares
**** Excluding proceeds from sale of National Milk Records plc
shares in 2024
LIC Sustainability Report
46

Artificial
Breeding (AB)
Heat detection
products
MINDA
®
Herd
management
software
DNA parentage
testing and
genomic
evaluation service
Herd testing of
milk samples,
including EZ
Link
®
scanning
AB dairy and beef genetics
and technician services, with
products such as Premier
Sires
®
, Sexed Semen, Short
Gestation Length, Alpha
®
,
Customate, training of AB and
DIY technicians,
deep freeze storage
LIC heat patch, LIC Bulls-i
®
,
Kamar
®
Heatmount detectors
Our Business
We are the DNA of the New Zealand dairy sector,
breeding up to 75% of cows in the national dairy
herd. We take our role seriously as an important
player in the team supporting farmers with the right
herd improvement tools to breed more efficient and
climate resilient cows.
Our primary sector is the New Zealand dairy sector.
Our core customers are New Zealand dairy farmers.
Other customers include veterinarians who support
farmers, international semen distributors, overseas
dairy farmers, users of dairy herd data and beef
producers.
Keeping New Zealand farmers profitable and
sustainable is critical. We are owned by New Zealand
dairy farmers and therefore invest to fund research
and technology which will benefit not only this
generation of farmer shareholders and their herds,
but successive generations and their herds.
LIC exists to deliver superior genetics and
technological innovation to help our shareholders
sustainably farm profitable animals.
For the year ended 31 May 2024
47

Farm
accessories
Electronic plate meters,
EID readers and wands
TagsFarmWise
®

Range of NAIT approved
electronic (EID) tags and
management tags from Allflex,
Z Tags and Flexa
Consulting service for farm
visits and project work
SPACE
™
satellite
and pasture
cover evaluation
reporting
Animal
health testing
On Farm
Support
Bovine Viral Diarrhoea (BVD),
Johne’s disease, milk pregnancy
testing, Staph aureus
Increase efficiency of farm
operations, including assisting
with herd records, herd testing,
weighing and DNA sampling
LIC Sustainability Report
48

NZ Markets
Sales operations, contact
centre, customer training,
marketing, communications,
oversight of product
development, including
MINDA
®
herd management
Operations &
Service
Research &
Development
CommercialTechnologySupport Services
People &
Performance
Artificial breeding collection
& insemination, herd milk
testing, genetic diagnostics,
animal health testing, LIC bull
and dairy farms, FarmWise
®

consultants, on-farm support
Genetic, genomic and
reproduction research
and development and
analytics; both inhouse and in
collaboration with university
and sector partners; animal
evaluation, bull selection
International genetics sales,
business development, new
ventures, investments and
partnerships, leverage of beef
opportunities
Development and support of
customer facing systems such
as MINDA
®
and LIC internal
systems and IT infrastructure
Payroll, finance & accounting,
procurement, legal, intellectual
property, governance,
shareholder services, risk
management, property
management, Business
Information Unit, NAIT
transformation, enterprise
project management office
People & Performance
partners; employee
experience, organisational
development, health, safety
and environment
How we work
LIC is structured to best support farmers and
our operational teams to effectively supply
products and services to customers, as well
as to leverage opportunities to deliver genetic
improvements to farmers and better returns to
shareholders.
For the year ended 31 May 2024
49

Key categories of goods and services we procure
Labour hire
Professional consulting services
IT software and hardware
Laboratory supplies
Building materials and products
Farm supplies
Recruitment services
The most critical component of LIC’s supply chain is
our permanent and seasonal employees, as well as
our bull team. For our external suppliers our Strategic
Procurement team has policies and processes in place
to identify and manage critical risks that could impact
our supply chain. An example is our New Zealand
and international air freight and technology services.
Where there is a higher risk to our products and
services, particularly during peak season or where
components are sourced internationally, at least
one year of input components are held in advance
of need, such as consumables used for artificial
insemination and diagnostics testing.
The Procurement Policy requires that all procurement
decisions should also take into consideration the
potential impact to the environment, sustainability,
Health and Safety and compliance with any other
relevant legislative obligations and we continue
to work with suppliers in relation to sustainability
measures. For example, this year we changed our
Waikato milk supplier to Dreamview Creamery, a local
Raglan supplier who uses sustainable practices and
provides the milk in reusable glass bottles.
Partnerships
Partnerships are critical to our work and are a
strategic priority to develop. We work with others to
deliver to farmer needs, collaborating or partnering
with other organisations to deliver a seamless service
to farmers. We already work closely with other sector
participants, including:
• DairyNZ and NZ Animal Evaluation Ltd (subsidiary
of DairyNZ)
• Government ministries and agencies on joint
funding of R&D, such as MPI, MBIE and Callaghan
Innovation
• Milk processors
• Specialist beef operations
• Sexing Technologies, providing the critical
technology for our sexed semen product
• Rural professionals, such as vets
• Animal wearable device companies
• Research specialists, such as at Auckland
University and Massey University
We are focused on building relationships with other
sector companies such as processors, fertiliser
companies and device companies.
Our Supply Chain
New and ongoing initiatives with partners of
note include:
Farmlands, Silver Fern Farms and
LIC – Leadership and Governance
Development training
We have partnered with Farmlands and Silver Fern
Farms to offer shareholders of all three companies
the opportunity to learn more about governance in
co-operatives and develop skills needed to operate
at board level through a unique leadership and
governance development programme called “To
the Core”.
Fonterra’s Governance Development Programme
We also partner with Fonterra who offer one LIC
shareholder a place in its Governance Development
Programme to build their governance capabilities
and leadership skills. Running for approximately one
year, the content is provided by Fonterra and Massey
University’s College of Business.
Rural Support Trust
We have partnered with Rural Support Trust to
provide farmer facing staff with a resource that
offers guidance on providing mental health support
to farmers.
LIC Sustainability Report
50

House of Science Central Waikato (HSCW)
The House of Science Central Waikato (HSCW) is
committed to bringing scientific literacy tools to
schools across the Waikato region. Their vision is to
raise science literacy which will have huge economic
and social benefits to New Zealand. We are proud to
continue our collaboration that started in 2021 with
HSCW and support them in a variety of ways. This
includes providing HSCW with a LIC vehicle to deliver
science kits to rural schools in the Waikato. Some of
our fantastic R&D staff also volunteer their time each
week to put together the science kits.
LIC supports the dairy sector, rural communities and
our farmers by sponsoring a variety of initiatives,
events, programmes and organisations. This provides
opportunities and promotes excellence within the
sector. Examples include:
• New Zealand Dairy Industry Awards
• Lincoln University Dairy Farm
• Southern Dairy Hub
• South Island Dairying Development Centre
• South Island Dairy Event
• Owl Farm at St Peter’s School, Waikato
• Dairy Women’s Network
• Kellogg Rural Leadership Programme
• Massey University Dairy #1 Farm
• Ayrshire NZ Conference
• Jersey NZ Conference
• Holstein-Friesian Association Conference
• Smaller Milk and Supply Herds Conference
• Once a Day Conference
• Distributing computer equipment no longer needed
to rural schools
• Support of calf club and pet days in schools
Our employees are given a day off annually to do a
variety of volunteer activities in the community.
We are also members of Cooperative New Zealand,
the Sustainable Business Council, Toitū, and the
Climate Leaders Coalition.
Refer to our website for further details.
For the year ended 31 May 2024
51

How we create value
Value for our farmer shareholders is at the heart of our strategy.
We drive value, innovate, and deliver a positive impact for our customers and
shareholders by focusing on helping our farmers optimise value from their livestock
by helping them to produce the most sustainable and efficient animals and the
highest value product.
We estimate that LIC delivers at least $640 million of value on farm from the
products that farmers purchase from us:
• Genetic improvement of the dairy herd generates the majority of the value,
based on the increase in gBW over time.
• Health data provided to identify mastitis reduces the costs of treatment and
reduces the number of cows culled due to this issue. Other disease testing
identifies cows for farmer culling decision-making and reduces further spread of
disease within a herd.
• Production Worth data is used to identify lower performing cows, enabling
informed farmer decision making.
• Short Gestation Length (SGL) dairy inseminations provide an additional 21 days
of milk on average and beef inseminations provide an additional 8 days of milk
on average.
• SPACE
™
provides reporting on accurate pasture cover data.
• We are working towards being able to calculate the value of environmental
improvements through genetic improvements reducing enteric methane and
nitrogen impacts.
Genetic Merit
$
480
m
Health
(Johne’s, BVD,
Mastitis)
$
45
m
Short gestation
length genetics
$
14
m
Production
(Culling)
$
90
m
SPACE™
$
11
m
LIC contribution to value on Farm
LIC Sustainability Report
52

Relationships
Positive relationships
with shareholders,
farmers, vets,
government and
regulators, sector and
research partners,
employees and the
farming community
The resources we rely on
Value created for
our stakeholders
Shareholders /
CustomersEmployeesSector Partners
Government &
RegulatorsCommunity
Delivering quality
products and services,
advancing genetic
improvement of herds,
re-investing profits in
further R&D or returning
to shareholders
through dividends
Providing a safe
workplace with
development
opportunities and
strong engagement
Collaborating
on research and
development, providing
quality data inputs
Complying with
regulatory and
financial reporting
requirements, reducing
our own environmental
footprint and that
of the national herd,
responsible taxpayer
Providing employment,
lowering our
environmental
footprint, support
through sponsorship
and scholarships
Intellectual
capitalFinancial capital
Assets &
infrastructurePeople
Natural
environment
Our collective know-
how, systems and
intellectual property
that more than 50 years
of R&D has generated
Our farmers and
shareholders create a
strong financial base
to operate and invest
for the future, as well
as our banking partner
debt facilities
Our property,
equipment and
animals allow us to
run our business and
distribute products and
provide services
We rely on our talented
employees, sector
partners and suppliers
to help deliver our
products and services
New Zealand’s natural
environment is a key
factor, particularly
rain, sun and quality
soil supporting grass
growth for animals
For the year ended 31 May 2024
53

Engaging with our
stakeholders
The Board and Senior Leadership Team
regularly consider different stakeholders and
mechanisms to engage with them, as well
as making decisions on when not to engage.
This is commonly discussed at regular
management and Board meetings, with
recommendations made to Board, or requests
from the Board.
Our latest Net Promoter Score (NPS) was a positive
result of 8 based on 638 farmer shareholder responses.
NPS is a measure of customer experience that ranges
between -100 and +100.
LIC Sustainability Report
54

Our farmer
shareholders & customers
Our
People
Suppliers
& Partners
Regulators &
other agencies
Communities
Goal
Deepen our understanding of the
current and future needs of all
our farmers
Develop talent and foster a culture
that embraces change, builds
capability and drives better results
Work with others to deliver farmers’
needs, including partnering to deliver
a seamless service
Ensure long-term sustainability of our co-operative, farmers, environment and
the NZ dairy sector
How we engage
• In person with tailored advice
• Customer call centre
• Net Promoter Score and
other surveys
• Fieldays
®
, events and training
• Feedback groups
• Annual meeting, Shareholder
Reference Group, Roadshows
• Publications (such as The Bulletin)
• Digital channels
• BeHerd annual engagement survey
• Employee events and in-person/
online business updates
• Wide range of training &
development
• Internal communication, including
Chief Executive email updates
• Strategic procurement team
• Supplier evaluations
• Partnership relationships
• Collaboration with innovators &
researchers
• R&D investment
• Direct engagement with government
and agencies by CE and
relevant employees
• Submissions on proposed law and
regulation
• Support of sector groups
• Scholarships and internships
• Social media channels
Needs & expectations
• Deep customer relationships
• Quality products and services, on
time consistently
• Reliable MINDA
®
software that is
easy to use
• Ongoing genetic improvement
• Innovation
• Prompt issue resolution
• Positive culture
• Safe, diverse and inclusive
environment, where wellbeing
is important
• Investment through training and
development
• Market-comparable remuneration
and benefits
• Innovative working tools
• Reliable and sustainable supply
chain, providing quality inputs
• Strong, productive partnership
relationships
• Robust science-based R&D projects
• Strong governance and
management of legal requirements
• Insightful input on issues and
proposed change
• Appropriate and prompt response
to incidents
• Positive, proactive relationships
• High quality external reporting
• Positive employment and growth
opportunities
• Responsible organisation (e.g. as a
taxpayer, purchaser)
• Respond appropriately to
issues raised
• Transparent reporting
• Key partner to farming community
• Respect for diversity
Response
Our primary focus is delivering value
for our farmer shareholders and we
commit to operational excellence,
faster genetic improvement and
software reliability and performance
We live our corporate values:
“Integrity, Innovation, Spirit of
Co-operation, In tune and Passion”;
we work on providing a safe and
positive environment where our people
can thrive
We work with others to build long-term
trusted relationships, and will have
increasing focus on relationships with
other organisations in the agri sector
Collaborative interactions with
Government and agencies, respect for
our license to operate, strong focus on
compliance
We help farmers to meet the current
and future challenges, in particular
water quality and methane, through
research, investment and tools
For the year ended 31 May 2024
55

Materiality Assessment
In 2021 the Board and management
partnered with an external firm to refine
our strategy. The strategy was informed by
feedback from farmer shareholders, other
stakeholders and local and global trends.
The strategy is to do what we’re good at and play
to our strengths. It is built on four solid foundations,
Environment, Sustainable Co-operative, People and
Partnership, and at its core is about delivering value for
farmer shareholders.
When refining our strategy we also made three
commitments to our farmer shareholders. The second
commitment, faster genetic improvement, commits
to “having farmers’ backs when it comes to helping
them meet the environmental challenges they face, in
particular animal efficiency and methane mitigation”.
The strategy and commitments drive a focus on
improving sustainability within LIC as well as helping the
dairy sector to reduce its impact on the environment.
Management and the Board also worked together
to carry out a materiality assessment on topics
where the company may have significant economic,
environmental and social impacts. We identified
potential topics of importance based on our strategy
foundations, reports and guidance from the dairy
sector, farmer feedback and issues identified by
risk assessments. Materiality was determined by
considering the significance of our impact, the
importance of the issue to stakeholders and our ability
to control and/or influence the issue. Farmer elected
directors provided key input in relation to importance of
issues for stakeholders and LIC regularly holds farmer
engagement meetings in different regions, or brings
groups of farmers to the Waikato, to continue to gather
feedback that is used in reviewing the below topics.
The business has also run a series of workshops with
farmers on key drivers for ‘breeding the herd for your
farming future’.
TopicImpactReport referenceGRI Standard
Climate change
Supporting shareholders to produce the most
sustainable and efficient animals. Reducing
our emissions at LIC.
Reduce negative impacts
from direct and indirect
GHG emissions
Reducing the environmental
impact of our national herd
Reducing the environmental
footprint of our business
302-1,
302-3, 302-4,
305-1 to 6
Animal health & biosecurity
Providing animal health products and
information services to identify diseases and
health conditions. Working with farmers to
minimise risk on farm of disease spread.
Increase/continue positive
impact on animal welfare
Reducing the environmental
impact of our national herd
Employment and sustainable
income creation
Caring for our staff and our farmer
shareholders through meaningful employment
and sustainable income creation.
Increase/continue positive
impact on staff and farmer
shareholders
Social sustainability – caring for
our people
Delivering a strong result for
our farmers
201-1
Health, safety & wellbeing
Protecting the health and safety of people at
work, including their wellbeing.
Increase/continue positive
impact on staff
Social sustainability – caring for
our people
403-2
Human rights
Protecting the employment rights and
working conditions of our people, including
diversity and inclusion.
Increase/continue positive
impact on staff
Social sustainability – caring for
our people
406-1
Water
Using water responsibly, including water
quality, availability and disposal.
Reduce negative impacts on
environment
Reducing the environmental
footprint of our business
303-2
Waste
Improvement of waste management and
disposal practices.
Reduce negative impacts on
environment
Reducing the environmental
footprint of our business
306-3
Responsible procurement
Influence our key suppliers in relation to
sustainable business practices.
Reduce negative impacts on
environment and increase/
continue positive social impacts
Our business – our supply chain
LIC Sustainability Report
56

GRI content index
The report has been prepared in accordance with the Global Reporting
Initiative (GRI) Standard.
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
2-1Organisational details
Who we are - pg 4
2-2Entities included in the organisation’s
sustainability reporting
The report includes the full LIC
consolidated group of entities. A list is
available in the Annual report, corporate
governance report
2-3Reporting period, frequency and
contact point
About this report – pg 2, for enquiries
contact Communications@lic.co.nz
2-4Restatements of information There has been a minor restatement
of base year Scope 1 GHG data to
include Crop N
2
O
2-5External assuranceOur external auditors KPMG have
performed procedures to ensure that
financial data included in this report is
consistent with LIC’s Annual Report
Activities and workers
2-6Activities, value chain and other business
relationships
Our Business – pg 47
2-7Employees
Employee data – pg 40
2-8Workers who are not employees
Information unavailable/incomplete:
description included in Employee
data – pg 40. Data currently gathered
has insufficient detail to correctly
identify workers
Governance
2-9Governance structure and compositionGovernance structure – pg 33. There is
limited disclosure on under-represented
social groups (due to the nature of
our business farmer representation is
the most critical representation) and
only general information provided on
competencies
2-10Nomination and selection of the highest
governance body
Annual report, corporate
governance report
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
2-11Chair of the highest governance bodyAnnual report, corporate
governance report
2-12Role of the highest governance body in
overseeing the management of impacts
Annual report, corporate governance
report, Governance structure - pg 33
2-13Delegation of responsibility for
managing impacts
Annual report, corporate
governance report
2-14Role of the highest governance body in
sustainability reporting
Governance structure – pg 33, Annual
report, corporate governance report
2-15Conflicts of interestAnnual report, corporate
governance report
2-16Communication of critical concernsAnnual report, corporate governance
report, there is no specific disclosure
on the number and nature of critical
concerns communicated due to
confidentiality constraints – material
matters related to this report
are disclosed
2-17Collective knowledge of the highest
governance body
Annual report, corporate
governance report
2-18Evaluation of the performance of the
highest governance body
Annual report, corporate
governance report
2-19Remuneration policiesAnnual report, corporate
governance report
2-20Process to determine remuneration
Annual report, corporate governance
report, Annual Meeting
2-21Annual total compensation ratio
Employee data – pg 40
For the year ended 31 May 2024
57

GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
Strategy, policies and practices
2-22Statement on sustainable
development strategy
Letter from the Chair and Chief
Executive – pg 7
2-23Policy commitments
Annual report, corporate governance
report; Code of conduct & ethics
2-24Embedding policy commitments
2-25Processes to remediate negative impacts
2-26Mechanisms for seeking advice and
raising concerns
2-27Compliance with laws and regulations
Not applicable: there have been
no significant instances of
non-compliance, fines or non-monetary
sanctions; minor breaches reported
under Reducing the environmental
footprint of our business – pg 25
2-28Membership associations
Partnerships - pg 50
Stakeholder engagement
2-29Approach to stakeholder engagementMateriality assessment – pg 56
2-30Collective bargaining agreements
Employee data – pg 40
Sector Standard
13Agriculture Aquaculture and Fishing Sectors 2022
13.1EmissionsReferences included under topic
disclosures below as appropriate
13.2Climate adaption and resilience
LIC Climate Statements, available at
Climate Disclosure Reporting | LIC
13.3BiodiversityReferences included under topic
disclosures below as appropriate
13.4Natural ecosystem conversionNot considered applicable to LIC as we do
not undertake ecosystem conversion
13.5Soil healthNot considered material – soil
management included as part of Farm
Environment Plans which are referenced
in the report
13.6PesticidesNot considered material as we do not use
significant amounts of pesticide
13.7Water and effluentsReferences included under topic
disclosures below as appropriate
13.8WasteReferences included under topic
disclosures below as appropriate
13.9Food securityNot considered applicable to LIC as no
food loss incurred by our operations
13.10Food safetyReferences included under topic
disclosures below as appropriate
13.11Animal health and welfareNot considered a material issue. Some
information included in Reducing the
environmental footprint of our business
13.12Local communitiesReferences included under topic
disclosures below as appropriate
13.13Land and resource rightsNot applicable – no locations of
operations where land and natural
resource rights (including customary,
collective, and informal tenure rights are
impacted by operations
13.14Rights of indigenous peoplesReferences included under topic
disclosures below as appropriate. Te Ao
Māori strategy referenced in the report
13.15Non-discrimination and equal opportunityReferences included under topic
disclosures below as appropriate
13.16Forced or compulsory labourReferences included under topic
disclosures below as appropriate
13.17Child labourReferences included under topic
disclosures below as appropriate
13.18Freedom of association and collective
bargaining
References included under topic
disclosures below as appropriate
13.19Occupational health and safetyReferences included under topic
disclosures below as appropriate
13.20Employment practicesNot considered a material issue
13.21Living income and living wageNot considered a material issue
13.22Economic inclusionReferences included under topic
disclosures below as appropriate
13.23Supply chain traceabilityNot considered a material issue
13.24Public policyReferences included under topic
disclosures below as appropriate
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
LIC Sustainability Report
58

GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
305-6/
13.1.7
Emissions of ozone-depleting
substances (ODS)
(All 302) Reducing the environmental
footprint of our business – pg 25,
LIC Climate Statements available at
Climate Disclosure Reporting | LIC.
Additional sector recommendation not
included as we do not have land use
change emissions
306-3/
13.8.4
Waste generated
Social topic disclosures
401-1New employee hires and
employee turnover
Employee data – pg 40
401-3Parental leave
Information unavailable/incomplete:
not all data tracked currently. Employee
data – pg 40
402-1Minimum notice periods regarding
operational changes
Employee data – pg 40
403-2/
13.19.3
Hazard identification, risk assessment,
and incident investigation
Critical Risks management- pg 39
415-1/
13.24.2
Political contributionsAnnual Report, corporate governance
report – donations
Topics determined to be not material
Economic topic disclosuresExplanation
201-1/
13.2.2
Financial implications and other risks and
opportunities due to climate change
We have reported separately on this topic
as part of Climate Statement reporting
requirements available at Climate
Disclosure Reporting | LIC
201-3Defined benefit plan obligations and other
retirement plans
Not applicable: LIC does not operate a
defined benefit or retirement plan
Market PresenceExplanation
202-1 Ratios of standard entry level wage by
gender compared to local minimum wage
Information unavailable/incomplete: NZ
is only material market – not considered a
material issue
202-2Proportion of senior management hired
from the local community
Not applicable: all senior management
employed in NZ (most significant
market) are local
Indirect Economic ImpactsExplanation
203-1/
13.22.3
Infrastructure investments and
services supported
Not applicable: no significant
infrastructure investments, no impact on
communities and local economies
13.25Anti-competitive behaviourReferences included under topic
disclosures below as appropriate
13.26Anti-corruptionReferences included under topic
disclosures below as appropriate
Material topics
Economic topic disclosures
201-1/
13.22.2
Direct economic value generated
and distributed
Trend data, pgs 44 – 46, Annual Report,
Financial statements
201-4Financial assistance received
from government
Annual Report discloses R&D grants
and tax incentives received from
NZ Government in Note 1 to the
financial statements, no government
ownership of LIC
207-1Approach to tax
Economic Sustainability – Tax pg 43
207-2Tax governance, control;
and risk management
Economic Sustainability – Tax pg 43,
Annual Report external audit report
includes audit of tax disclosures
Environmental topic disclosures
302-1Energy consumption within
the organisation
(All 302) Reducing the environmental
footprint of our business – pg 25,
LIC Climate Statements available at
Climate Disclosure Reporting | LIC.
Additional sector recommendation not
included as we do not have land use
change emissions
302-2Energy consumption outside of
the organisation
302-3Energy intensity
302-4Reduction of energy consumption
305-1
13.1.2
Direct (Scope 1)
GHG emissions
305-2/
13.1.3
Energy indirect (Scope 2)
GHG emissions
305-3/
13.1.4
Other indirect (Scope 3)
GHG emissions
305-4/
13.1.5
GHG emissions intensity
305-5/
13.1.6
Reduction of GHG emissions
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
For the year ended 31 May 2024
59

203-2/
13.22.4
Significant indirect economic impactsNot applicable: no significant indirect
economic impacts identified
Procurement practicesExplanation
204-1 Proportion of spending on local suppliersNot applicable: majority of spending is
with local suppliers
Anti-corruptionExplanation
205-1/
13.26.2
Operations assessed for risks related to
corruption
Not applicable: corruption not
considered an issue in NZ, which is only
material market
205-2/
13.26.3
Communication and training about anti-
corruption policies and procedures
Not applicable: corruption not considered
an issue in NZ
205-3/
13.26.4
Confirmed incidents of corruption and
actions taken
Not applicable: no incidents
Anti-competitive behaviourExplanation
206-1/
13.25.2
Legal actions for anti–competitive
behaviour, anti-trust and
monopoly practices
Not applicable: no legal actions
Ta xExplanation
207-3Stakeholder engagement and
management of concerns related to tax
Not applicable – NZ is only
material market
207-4Country-by-country reportingNot applicable: NZ is only material market
MaterialsExplanation
301-1Materials used by weight or volume
Not applicable: as mostly services
provided (i.e. not manufacturing goods)
301-2Recycled input materials used
301-3Reclaimed products and their
packaging materials
EnergyExplanation
302-5Reductions in energy requirements of
products and services
Not applicable: GHG reporting is not
considered material by product/service
Water and effluentsExplanation
303-1/
13.7/2
Interactions with water as a
shared resource
Information unavailable/incomplete:
not considered to have material water-
related impact. This report does note
consents to discharge tradewaste
303-2/
13.7.3
Management of water discharge-
related impacts
Information unavailable/incomplete:
not considered to have material water-
related impact. This report does note
any breaches
303-3/
13.7.4
Water withdrawalInformation unavailable/incomplete:
not considered to have material water-
related impact
303-4/
13.3.5
Water dischargeInformation unavailable/incomplete: not
considered to have significant water-
related impact
303-5/
13.3.56
Water consumptionInformation unavailable/incomplete: not
considered to have significant water-
related impact
BiodiversityExplanation
304-1/
13.3.2
Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity value
outside protected areas
Not applicable: LIC does not have sites
that are adjacent to a protected area or
areas of high biodiversity
304-2/
13.3.3
Significant impacts of activities, products,
and services in biodiversity
Not applicable: no material impacts
304-3/
13.3.4
Habitats protected or restoredNot applicable: no such habitats. The
report notes riparian planting carried
out on farms
304.4/
13.3.5
IUCN Red List species and national
conservation list species with habitats in
areas affected by operations
Not applicable: operations do not affect
any such areas. NZ has 67 species
currently on the Red List. LIC does not
believe our operations affect the habitats
of species on the Red List
EmissionsExplanation
305-7/
13.1.8
Nitrogen oxides (NOx), sulfer oxides (Sox),
and other significant air emissions
Not applicable: LIC does not have
material air emissions
WasteExplanation
306-1/
13.8.2
Waste generation and significant
waste-related impacts
(All 306) Information unavailable/
incomplete: data is included in GHG
emission calculations to the extent
available and the report notes action
being taken to reduce waste
306-2/
13.8.3
Management of significant
waste-related impacts
306-4/
13.8.5
Waste diverted from disposal
306-5/
13.8.6
Waste directed to disposal
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
LIC Sustainability Report
60

GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
Supplier Environmental AssessmentExplanation
308-1New suppliers that were screened using
environmental criteria
Information unavailable/incomplete:
the report notes that consideration
of sustainability factors is part of the
Procurement policy and practices for
strategic procurement processes
308-2Negative environmental impacts in the
supply chain and action taken
Information unavailable/incomplete:
no material impacts identified
EmploymentExplanation
401-2Benefits provided to full-time employees
that are not provided to temporary or
part-time employees
Not applicable: not considered to be
material differences
Occupational Health and SafetyExplanation
403-1/
13.19.2
Occupational health and safety
management system
(All 403) Information unavailable/
incomplete: key information considered
material is provided in Health and Safety
section of the report, but not to the detail
specified by these disclosures
403-3/
13.19.4
Occupational health services
403-4/
13.19.5
Worker participation, consultation and
communication on occupational health
and safety
403-5/
13.19.6
Worker training on occupational health
and safety
403-6/
13.19.7
Promotion of worker health
403-7/
13.19.8
Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships
403-8/
13.19.9
Workers covered by an occupational
health and safety management system
403-9/
13.19.10
Work-related injuries
403-10/
13.19.11
Work-related ill health
Training and EducationExplanation
404-1Average hours of training per year
per employee
Information unavailable/incomplete:
not considered a material issue
404-2Programmes for upgrading employee skills
and transition assistance programmes
404-3Percentage of employees receiving
regular performance and career
development reviews
Information unavailable/incomplete:
not considered a material issue – LIC
has a specific tool for completing
and overseeing reviews and
development plans
Diversity and Equal OpportunityExplanation
405-1/
13.15.2
Diversity of governance bodies
and employees
Information unavailable/incomplete:
gender information is provided in report
(annual report for governance body) but
other diversity factors are not considered
a material disclosure
405-2/
13.15.3
Ratio of basic salary and remuneration of
women to men
Information unavailable/incomplete:
not considered a material issue
Non-discrimination
406-1/
13.15.4
Incidents of discrimination and corrective
actions taken
Not applicable: none identified
Freedom of Association and Collective BargainingExplanation
407-1/
13.18.2
Operations and suppliers in which the right
to freedom of association and collective
bargaining may be at risk
Not applicable: none identified
Child LabourExplanation
408-1/
13.17.2
Operations and suppliers at significant
risk for incidents of child labour
Not applicable: primary market in NZ,
none identified
Forced or Compulsory LabourExplanation
409-1/
13.16.2
Operations and suppliers at significant
risk for incidents of forced or
compulsory labour
Not applicable: primary market in NZ,
none identified
Security PracticesExplanation
410-1
Security personnel trained in human rights
policies or procedures
Not applicable: LIC does not employ
security personnel.
Rights of Indigenous PeoplesExplanation
411-1/
13.16.2
Incidents of violations involving rights of
indigenous peoples
Not applicable: No incidents reported
For the year ended 31 May 2024
61

GRIDisclosure titleLocation or reference - in Annual report
or links to materials on LIC website
Local CommunitiesExplanation
413-1/
13.12.2
Operations with local community
engagement, impact assessments and
development programmes
(All 413) Not applicable: no such
operations
413-2/
13.12.3
Operations with significant actual and
potential negative impacts on local
communities
Supplier Social AssessmentExplanation
414-1New suppliers that were screened using
social criteria
(All 414) Information unavailable/
incomplete: due to the sources of
supplies, not considered a material issue.
This report includes general content
on suppliers
414-2Negative social impacts in the supply
chain and actions taken
Customer Health and SafetyExplanation
416-1/
13.10.2
Assessment of the health and safety
impacts of product and service categories
Not applicable: not considered material
issue. H&S changes in relation to delivery
of AB services on farm in Herringbone
sheds is included in the report
416-2/
13.10.3
Incidents of non-compliance concerning
the health and safety impacts of products
and services
Not applicable: no incidents reported
Marketing and LabellingExplanation
417-1Requirements for product and service
information and labelling
Not applicable: products and services
relate to animals so not considered
material issue
417-2Incidents of non-compliance concerning
product and service information
and labelling
Not applicable: no incidents reported
417-3Incidents of non-compliance concerning
marketing communications
Customer PrivacyExplanation
418-1Substantiated complaints concerning
breaches of customer privacy and losses
of customer data
Not applicable: no complaints received
LIC Sustainability Report
62

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Newstead 3286
Hamilton
New Zealand
07 856 0700 | lic.co.nz