Synlait releases Integrated Climate Report
Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com
NZX: SML
ASX: SM1
27 November 2024
Synlait releases Integrated Climate Report
Synlait Milk Limited (Synlait) advises that it has released its first Integrated Climate Report,
incorporating the company’s sustainability report, climate-related disclosure and greenhouse gas
inventory for the financial year ended 31 July 2024 (FY24).
Key metrics include:
• A 20% decrease in Scope 1 greenhouse gas emissions
1
compared to FY20, when the company
onboarded its North Island milk supply.
• A 11% increase in Scope 2 emissions compared to FY20 due to Synlait’s use of its electrode
boiler in Dunsandel (instead of coal-fired boilers).
• A 40% decrease in the modelled nitrogen loss off Synlait suppliers’ farms since FY18.
• A 9% decrease in on-farm greenhouse gas emissions per kilo of milk solids since FY20.
Synlait Acting CEO Tim Carter commented: “This was one of the most challenging times in Synlait’s
history; however, these are metrics, and progress, we can be proud of. If we can inch closer to our
ambition to be ‘net positive for the planet’ during the disruption of the last financial year, there should
be no doubt that we will get there in the future.”
“Synlait has long been committed to reducing emissions from our value chain. Thankfully our farmers
are forward-thinkers and are making progress. It is great to see their hard work reflected in these
results.”
Synlait Chair George Adams added: “Synlait’s approach to sustainability is commercially smart. Being
able to show that we can help global businesses meet their greenhouse gas reduction targets gives us
a competitive advantage.”
For more information contact:
Media
Jo Scott
Communications Lead
P: +64 021 883 123
E: jo.scott@synlait.com
Investors
Hannah Lynch
Head of Strategy & Corporate Affairs
P: +64 021 252 8990
E: hannah.lynch@synlait.com
1
Excluding the Synlait-owned farms.
---
DOING MILK
DIFFERENTLY FOR A
HEALTHIER WORLD
Integrated Climate
Report 2024
FOREWORD
This is the first Integrated Climate Report from Synlait Milk Limited (Synlait). It incorporates Synlait’s
mandated climate-related disclosure, sustainability report and greenhouse gas inventory for the 2024
financial year (FY24) which ran from 1 August 2023 to 31 July 2024. This report covers all Synlait subsidiaries
including Dairyworks Limited and Synlait Milk (Dunsandel Farms) Limited, both wholly owned subsidiaries of
Synlait. It excludes companies or investments that Synlait does not hold a majority ownership stake in.
Aspects of this report have been produced to align with the Aotearoa New Zealand Climate Standards (NZ
CS 1, NZ CS 2 and NZ CS 3). A climate-related disclosure (CRD) requirement matrix has been provided.
In compliance with the Aotearoa New Zealand Climate Standards, we have conducted a scenario analysis
which is contained within this report. A scenario is a believable but hypothetical sequence of events leading
to a plausible future outcome. It is important to note that scenarios are not forecasts and do not necessarily
represent management’s performance expectations for Synlait. The scenarios cannot, and should not be
relied upon as fact and may be subject to change due to circumstances unforeseen at the time of analysis.
Scenario analysis offers a potential path to the future to help assess our business model and strategy’s
resilience while identifying climate-related risks and opportunities. Any risks or opportunities outlined in this
document are intended for guidance purposes and not as predictive forecasts.
Deloitte has provided a reasonable assurance (Scope 1 and 2) and limited assurance (Scope 3) over our
greenhouse gas data (GHG). However, this applies only to the GHG Inventory report. The GHG Inventory
report and assurance opinion can be found on pages 42 to 54.
Synlait takes a proactive approach to sustainability reporting.
This Integrated Climate Report will be produced annually, as is our Annual Report. Work is also well
underway on the company’s first Modern Slavery Statement which will be published in early 2025.
A copy of this report (as well as previous annual, interim and sustainability reports) is available at:
synlait.com/investors/
Previous greenhouse gas inventory reports are available at: synlait.com/sustainability/
REPORTING
Synlait’s biodiversity programme, Whakapuāwai,
based at the company’s Dunsandel headquarters.
INTEGRATED CLIMATE REPORT 2024PAGE 02
SYNLAIT MILK LIMITED
PAGE 02
CONTENTS
Welcome from Acting CEO 04
FY24 sustainability metrics 05
1. Sustainability report 06
1.1 Refreshing our strategy 07
1.2 Our refreshed commitments 08
1.3 B Corp
TM
and AgriZero
NZ
09
1.4 Climate 11
1.5 Nature 15
1.6 Wellbeing 18
2. Climated-related disclosure 22
2.1 A word from our Chair 23
2.2 Governance 24
2.3 Strategy 27
2.4 Climate risk assessment 35
2.5 Metrics and targets 38
3. Greenhouse gas inventory 42
Appendices 55
Appendix one: Key sustainability metrics 56
Appendix two: Climate-related disclosure matrix 57
Appendix three: Climate-related disclosure adoption provisions 58
Appendix four: Scenario narratives 58
Appendix five: Glossary 59
Appendix six: Synlait Strategy FY24 – FY28 60
Synlait’s climate-related disclosure (CRD)
complies with the Aotearoa New Zealand
Climate Standards (NZ CS) issued by
the External Reporting Board (XRB).
Information about the adoption provisions
Synlait has elected to use is located in the
appendices.
STATEMENT OF
COMPLIANCE
Our sustainability approach is
underpinned by:
We are committed to:
INTEGRATED CLIMATE REPORT 2024PAGE 03
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
I am pleased to welcome you to
Synlait’s first Integrated Climate Report,
incorporating our sustainability report,
our first climate-related disclosure and
our greenhouse gas inventory for FY24.
FY24 was one of the most challenging
times in Synlait’s history. It is often during
such times, that organisations can back
away from delivering corporate social
responsibility or sustainability commitments.
That was not the case for Synlait.
Our team will always focus on what
more our company could have done in
FY24. However, the fact we managed to
take steps forward in our sustainability
journey despite facing high-profile crises
is significant.
This shows sustainability is embedded in
Synlait. If we can inch closer to our ambition
to be ‘net positive for the planet’ during
the disruption of FY24, there should be no
doubt that we will get there in the future.
That is commercially smart.
Going above and beyond
Parts of this report fulfil our requirements
under the Aotearoa New Zealand
Climate Standards (NZCS). These
standards, mandated under the Financial
Sector (Climate-related Disclosures
and Other Matters) Amendment Act
2021, provide a crucial framework for
us to navigate climate-related risks and
opportunities. Since coming into effect
on 1 January 2023, we have diligently
worked to ensure compliance with these
standards.
However, our commitment to
sustainability and climate action
predates any regulatory requirement. We
have been on this journey for quite some
time, driven not just by obligation, but by
a genuine desire to do what’s right.
As a climate reporting entity, we
understand the importance of
transparency and accountability which
is why we have publicly released
sustainability reports since 2018 and
greenhouse gas inventories since 2020.
This report is more than just a legal
obligation – it is testament to our ongoing
efforts to integrate sustainability into
every aspect of our business.
FY24 metrics
FY24 saw a 20.0% drop in our Scope 1
greenhouse gas emissions (excluding
Synlait Farms) compared to FY20. This has
largely been achieved through efficiencies
such as increasing use of biomass instead
of coal to fuel our boilers.
Our Scope 2 emissions (excluding
Synlait Farms) increased by 5.1% in FY24
(compared to FY20). These emissions
result from our use of electricity and this
growth is explained by the increasing use
of our electrode boiler at Dunsandel.
Synlait has long been committed to
reducing the emissions attached to our
value chain (Scope 3). Our largest source of
these are from our 250+ farmer suppliers.
Thankfully, our suppliers are forward-
thinking farmers who care about the
environment and they are making progress.
Since FY18 the modelled nitrogen loss
off our suppliers’ farms has decreased by
40.1% while Scope 3 on-farm emissions per
kilo of milk solids was 9.2% lower in FY24
than in FY20 (when we onboarded milk
supply in the North Island).
Synlait was the first dairy processor in
New Zealand to financially incentivise
farmers to improve outcomes for the
environment, animals, people and the
milk they produce. It is great to see the
hard work by our farmers reflected in
these results.
Other achievements showcased in this
report include:
• our increased B Corp
TM
score.
• a new partnership with Nestlé to
further lift on-farm sustainability.
• improvements to our on-farm
greenhouse gas emission
measurement.
Finally, I would like to acknowledge
the team behind our environmental
programme Whakapuāwai. FY24 saw
the programme distribute its 250,000
th
native plant. These native seedlings
have been used in on-farm or community
planting projects which sequester
carbon and protect waterways.
Whakapuāwai translates as ‘to cause
something to blossom, flourish or thrive’.
This programme is a living example of
Synlait’s B Corp
TM
commitment to use
business as a force for good.
The Synlait team will always want to
do even more for people and planet.
However, Synlait distributing a quarter of
a million native plants across Canterbury
through Whakapuāwai is a standout
achievement we can all be proud of.
Tim Carter
Acting CEO
INTEGRATED CLIMATE REPORT 2024PAGE 04
SYNLAIT MILK LIMITED
PAGE 04
ACTING CEO
WELCOME
SUSTAINABILITY METRICS
IN COAL USE PER TONNE OF
PRODUCT COMPARED TO FY23
15%
SCOPE 2 GHG EMISSIONS COMPARED
TO FY20 (EXCLUDING SYNLAIT FARMS)
5.1%*
PLANTS DISTRIBUTED BY SYNLAIT SINCE
WHAKAPUĀWAI WAS LAUNCHED IN 2019
250,000
THE SCORE SYNLAIT’S DUNSANDEL TWO FARM
ACHIEVED IN ITS LEAD WITH PRIDE
TM
AUDIT
99.25%
ON-FARM GHG EMISSIONS PER TONNE
OF MILK SOLIDS COMPARED TO FY20
9.2%
IN MODELLED NITROGEN LOSS
ON-FARM COMPARED TO FY18.
40.1%
PLASTIC REMOVED FROM DAIRYWORKS’
PACKAGING (AND LANDFILL) EVERY YEAR
11.5TONNES
FARMER SUPPLIERS
LEAD WITH PRIDE
TM
CERTIFIED
77%
SYNLAIT PRODUCT PACKAGING REUSABLE,
RECYCLABLE OR COMPOSTABLE
99.7%
*largely due to increasing use of the electrode boiler at Dunsandel.
Synlait began FY24 with too much production capacity
across its facilities, unsustainably high levels of debt,
significantly higher interest rates, and sharply declining
demand for infant formula at a macro level.
These challenges were evident in FY24’s financial result.
While revenue was up 2% to $1.64 billion, a $114.6
million impairment against our North Island assets due to
underutilisation, coupled with foreign exchange impacts,
increased financing, legal and consultancy costs (attached
to deleveraging and The a2 Milk Company disputes), and
softening global demand for lactoferrin contributed to an
overall net loss after tax of $182.1 million.
The financial result was disappointing. However, the metrics
on this page are numbers we can be proud of.
They show sustainability is embedded in our business and,
that even during challenging times, Synlait makes progress
towards our amibition of being ‘net positive for the planet’.
SCOPE 1 GHG EMISSIONS COMPARED
TO FY20 (EXCLUDING SYNLAIT FARMS)
20.0%
INTEGRATED CLIMATE REPORT 2024PAGE 05
SYNLAIT MILK LIMITED
SUSTAINABILITY
REPORT
CHAPTER ONE
SUSTAINABILITY REPORT
PAGE 06
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
REFRESHING
OUR STRATEGY
This led to the development of three new pillars for Synlait’s sustainability efforts. FY24 marked the halfway point for
Synlait’s 10-year Sustainability Strategy.
A lot has changed in the world since it
was introduced in 2018. Ensuring the
company is still focussing on the right
goals to achieve its ambition to be ‘net
positive for the planet’ is important so
FY24 saw the sustainability team lead a
strategy refresh.
This started with listening. We
interviewed 62 stakeholders, including
customers, farmer suppliers, in-house
subject-matter experts, Board members,
investors and key partners on what
they felt were the material issues facing
Synlait.
As well as Synlait taking broader
responsibility for sustainability across
its value chain, the top priorities identified
were:
• Wellbeing of people and
communities
• Animal welfare
• Circular economy (waste and
packaging)
• Climate change
• Water
• Resilience (business, supply chain
and farm)
MORE TARGETED PROGRESS
Previously, Synlait included approximately 100 commitments and key
performance indicators (KPIs) in its Sustainability Strategy.
Our stakeholder review identified an urgent need to more effectively target
action. This is about delivery – ensuring we have the resources in the right
place to deliver on our commitments. As part of this review, we made some
strategic decisions on where Synlait should take a market leadership, or
‘first-mover’ approach, and where we will align to industry best practice.
Synlait’s strength in our approach is via our on-farm connection to nature
and through our market leading Lead With Pride™ programme, where we
can leverage our existing strengths to best serve our customers, farmers
and planet, and support the business overall.
Like many other businesses, Synlait is facing financial pressures so, to
ensure shareholder support, we ensured our sustainability initiatives
aligned to commercial drivers. That is, they give us a right to play
with customers, add value to our farmer suppliers and a right to win
commercial opportunities and revenue drivers.
Our key commitments, which have an end date of FY28, have not
changed. They are:
• 30% intensity reduction in on-farm emissions
1
• 45% absolute reduction in Scope 1 and 2 emissions
1
• 20% reduction in water use per tonne of product
2
• 20% reduction of nitrogen discharge per tonne of product
2
• 99% of total non-hazardous manufacturing waste diverted from landfill
1
From a baseline year of FY20
1
From a baseline year of FY18 in Dunsandel
Mitigation and Adaptation
Climate change is one of the biggest
issues facing the planet. Synlait has set
science-based targets to cut business
and on-farm emissions and is working
to ensure supply chain resilience.
PILLAR 1:
CLIMATE
People and Animal
The wellbeing of both people and
animals is important to our business.
Synlait takes a leadership approach to
caring for both across our value chain.
Biodiversity and Soil Health, Water
and Waste/Circular Economy
As a business closely connected to
New Zealand’s whenua (land), Synlait
is committed to improving biodiversity,
soil health, and water while embracing
the circular economy.
PILLAR 3:
WELLBEING
PILLAR 2:
NATURE
Page 11Page 15Page 18
PAGE 07
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
OUR REFRESHED COMMITMENTS
CLIMATEWELLBEINGNATURE
Our revised sustainability strategy has 35 commitments and KPIs that are focused on key areas where Synlait
can make an impact. These include our science-based targets on greenhouse gas (GHG) commitments.
Mitigation
On-Farm
Operations
Supply Chain
AdaptationBiodiversity and Soil HealthWaterWaste/Circular EconomyPeopleAnimal
• 30% reduction in GHG On-
Farm per kgMS by by FY28
from a FY20 base year.
• Establish a Science-
based Targets initiative
(SBTi) Forestry, Land and
Agriculture (FLAG) target
for on-farm emissions.
• 100% of Lead With
Pride
TM
farms have a
farm resilience plan
incorporating climate
adaptation.
• Estsblish a science-based
target for biodiversity and
soil health with agreed
roadmap and action
strategy.
• 100% of Lead With
Pride
TM
farms have a
farm resilience plan
incorporating biodiversity
and soil health.
• Broadening Whakapuāwai
into an ecological centre
of excellence, that is
significantly contributing
to restoring biodiversity
and contributing to cutting
edge ecological projects.
• Nature targets and
accounting are managed
across the Synlait business.
• 20% reduction in water
use per tonne of product
by FY28, from a FY18 base
year for our Dunsandel site.
• 20% reduction of nitrogen
discharge per tonne of
product by FY28 from a
FY18 base year for our
Dunsandel site.
• 99% of total non-hazardous
manufacturing waste will
be diverted from landfill by
2028.
• 100% of product packaging
will be reusable, recyclable,
or compostable.
• At least 50% recycled
content in all packaging.
• Total Recordable Injury
Frequency Rate below five.
• Positive net wellbeing score
accross business.
• 40% to 50% women
as managers or senior
specialists (remuneration
grade 16 and above.)
• Gender pay gap <8% by FY26.
• Establish a Modern Slavery
Policy and Management Plan.
• 100% high value/high risk
contracts with wellbeing
criteria.
• 100% high value/high
risk contracts with animal
wellbeing criteria.
• 100% high value/high risk
contracts with GHG criteria.
• Business continuity and
resilience assessments
complete across key
markets.
• 100% high value/high risk
contracts with biodiversity
and soil health criteria.
• 100% high value/high
risk contracts with water
criteria.
• 100% high value/high risk
contracts with waste and
circular economy criteria.
• Animal Health and Welfare
Plan in action across all
Synlait farms.
• Climate adaptation
integrated into 10
Year Asset Plan and
management decision
making.
• 45% absolute reduction in
Scope 1 and 2 emissions
by FY28 from a FY20 base
year.
• Quantity: Demonstrating an
improvement in water use
efficiency across our entire
supply base.
• Quality: 100% of farms
taking action to achieve
catchment specific water
quality objectives.
• 45% reduction in nitrogen
loss to waterways per
kilogram of milk solids by
2028 from a FY18 base year.
• Establish a science-based
approach to on-farm water.
• 100% of Lead With
Pride
TM
farms have a
farm resilience plan
incorporating waste
reduction initiatives.
• Execute Social
Responsibility Strategy 2.0
across 100% of Lead With
Pride
TM
farms.
• Top quartile supplier Net
Promoter Score.
• 100% of Lead With Pride
TM
farms have an Animal
Health and Welfare Plan in
action.
PAGE 08
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
RIGHT TO PLAY
OUR STRONG FOUNDATIONS
AMBITION
TO FY29
KEY ENABLERS
OF EXECUTION
Business
commitment
Integrated sustainability
throughout all
Synlait functions
Lead With Pride™
Whakapuāwai
Customer
relationships
World-class
manufacturing
and supply chain
Sustainability progress,
reporting and credentials
-30% GHG on-farm
per kgMS by FY28
Regenerative
agriculture and
soil health
100% of product packaging reusable,
recyclable or compostable
Natural ecosystems
and biodiversity
Value chain – balanced nature,
climate, financial procurement
-45% GHG absolute
Scope 1 and 2 by FY28
Water
stewardship
Lead With Pride
TM
farmer leadership
Science-based nature targets
for water, biodiversity and soil
-20% water use and
N discharge by FY28
B Corp™
B Corp™
Score of 105
Roadmap to net
zero emissions
Mentally safe environment
for our people to thrive
Whakapuāwai ecological
centre of excellence
99% of non-hazardous waste
diverted from landfill by FY28
Value chain
collaboration
RIGHT TO WIN
OUR COMPETITIVE ADVANTAGE MODELS
OUR OPPORTUNITIES
RESPONDING TO OUR CUSTOMERS
LEAD WITH
PRIDE™
3
B CORP™
CERTIFICATION
7
NATURE
LEADERSHIP
4
BEST IN CLASS
CUSTOMER MANAGEMENT
6
LOW CARBON
MILK
5
FARMER SUPPLIER
BUSINESS RESILIENCE
SUPPORT
2
SPECIALTY
MILK PREMIUMS
1
WHAKAPUĀWAI
8
CO2
CO2
OUR REFRESHED SUSTAINABILITY STRATEGY
PAGE 09
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
B CORP
TM
:
UNDERPINNING OUR
COMMITMENTS
Synlait’s mission to be a catalyst for
change means we are pioneers who are
not afraid to be the first and set the bar
for other businesses.
In 2020, we became the first New
Zealand-headquartered dairy processor
to be certified as a B Corp
TM
.
B Corp
TM
certification means a business
is meeting high standards of verified
performance, accountability, and
transparency on factors from employee
benefits and charitable giving to supply
chain practices and input materials.
Our score in 2020 was 80.4. We were
recertified in December 2023 and,
because we are always challenging
ourselves to be even better, have lifted
our score from 80.4 to 97.7 – a lift of 21.5%.
As a group, Synlait and Dairyworks’
combined score is now 89.5 having lifted
from 80.4 in 2020.
The improvements came from changing
our constitution to include purpose
and stakeholder consideration clauses
while improving the measurement and
management of the greenhouse gas
footprint across our value chain.
Our sustainability credentials are
increasingly requested by our key
global customers so our B Corp
TM
accreditation is a valuable competitive
differentiator for Synlait. Our B Corp
TM
recertification proves that Synlait meets
the highest standards of verified social
and environmental performance, public
transparency, and legal accountability to
balance profit and purpose.
It is completely aligned with our purpose:
Doing Milk Differently for a Healthier
World.
PROMOTING EQUITABLE
LEADERSHIP THROUGH
AGRIZERO
NZ
Synlait is one of the founding
shareholders of AgriZero
NZ
, a world-first
investment fund established between
Government and major agribusiness
companies to help pasture-based farmers
in Aotearoa New Zealand reduce their
agricultural emissions.
AgriZero
NZ
has a bold ambition to ensure
all farmers have equitable access to
affordable, effective tools to reduce
biogenic methane and nitrous oxide
emissions, supporting a 30% reduction
in emissions by 2030 and enabling
development and adoption of solutions to
drive towards ‘near zero’ by 2040.
Since its inception in February 2023, the
partnership has invested more than $34
million in multiple companies developing
practical solutions to reduce agricultural
emissions, to accelerate the development
with a focus on pastoral farming and to
bring the tools to New Zealand farmers.
This includes novel probiotics, low
emissions pasture, a methane-reducing
daffodil extract and two methane vaccine
development programmes.
AgriZero
NZ
also has over 80 other
potential investment opportunities on its
radar, as it continues to scan the globe for
solutions that will work on pastoral farms.
SUSTAINABILITY REPORT
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SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CLIMATE
PILLER 1:
• Reduction in coal use: Investing in
our assets to allow us to remove
coal as a fuel in our processes by
2030 and reduce our Scope 1 and 2
GHG Emissions by 45% by 2028.
• GHG on-farm: Utilising Lead
With Pride
TM
and our customised
greenhouse gas tool to support and
incentivise our farmers to reduce
GHG on-farm. We are also working
closely with farmer suppliers to
implement new technologies and
change our farming systems to
reduce GHG on-farm.
• Climate adaptation: The effects
of climate change will produce
more extreme weather events, and
our focus has to be on building
resilience across our business
and our farmer suppliers. We are
integrating climate adaptation
strategies across the business to
offset the potential physical impacts.
Synlait’s Dunsandel facility is home to
New Zealand’s first large-scale electrode boiler
• Sustainable procurement: Our
climate change responsibility
extends through our value chain,
and we are focused on how we can
make more sustainable choices
in our procurement, incorporating
a balanced climate and financial
approach to procurement contracts,
such as optimising shipping and
sourcing to reduce GHG.
• Whakapuāwai nursery: Our
biodiversity programme,
Whakapuāwai grows over 60,000
native plants each year. We provide
these to our farmers and community
groups for planting projects. FY24
saw us distribute our 250,000
th
plant. We now have years of plant
growing expertise to support our
farmer suppliers to sequester
carbon on their farms.
• Net Zero: We are committed to
setting our long-term Net Zero
target during this period.
Climate change is one of the biggest issues we face as a planet and Synlait is
dedicated to meeting our commitments here. Our science-based targets remain
unchanged, we have roadmaps established, and we are dedicated to meeting these
by 2028.
Our climate strategy is bigger than just meeting our targets. We are committed to:
CLIMATE TARGETS
On-Farm
Mitigation:
• 30% reduction in GHG On-Farm per
kgMS by by FY28 from a FY20 base
year.
• Establish a Science-based Targets
initiative (SBTi) Forestry, Land and
Agriculture (FLAG) target for on-farm
emissions.
Adaptation:
• 100% of Lead With Pride
TM
farms have
a farm resilience plan incorporating
climate adaptation.
Operations
Mitigation:
• 45% absolute reduction in Scope
1 and 2 emissions by FY28 from a
FY20 base year.
Adaptation:
• Climate adaptation integrated into
10 Year Asset Plan and management
decision making.
Supply Chain
Mitigation:
• 100% high value/high risk contracts
with GHG criteria.
Adaptation:
• Business continuity and resilience
assessments complete across key
markets.
SUSTAINABILITY REPORT
PAGE 11
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
113,547
126,304
125,465
108,002
KEY INITIATIVES
AND RESULTS
CLIMATE
Lead with Pride
TM
Lead With Pride
TM
is Synlait’s dairy
farm assurance system where farmers
are independently assessed across
four essential areas: Environment,
Animal Health, Milk Quality, and Social
Responsibility. Certified farmers receive
financial incentives on top of milk prices.
FY24 saw the number of Synlait farmer
suppliers that are certified reach 77%.
It also saw significant changes to the
programme including:
• Better measurement of how feed
choice impacts deforestation
• Increased incentive to irrigate
efficiently
• Recognising the value of biodiversity
and climate adaptation plans
• Encouraging the replacement of high
emissions refrigerants
Coal Boiler CO Sensors
FY24 saw us install carbon monoxide
sensors on our coal boilers at Dunsandel.
The system improves combustion
efficiency through oxygen regulation. This
decreases the amount of fuel required
and is expected to lower each boiler’s
emissions by between 1 and 2%.
All terrain e-bikes
Early in FY24, Synlait’s Dunsandel farms
welcomed a fleet of UBCO electric bikes.
These rugged, all-terrain e-bikes provide
a quiet, emissions-free alternative to
traditional farm vehicles, allowing staff
to quickly and efficiently move around
the property while minimising our carbon
footprint.
Key achievements in FY24 were a 20.01% decrease in our Scope 1 emissions against
FY20, which was the year we introduced our North Island milk supply. Scope 2 emissions
increased 5.1% largely due to increased use of the electrode boiler at Dunsandel and
Scope 3 on-farm emissions were down 9.2% per tonne of milk solids against FY20.
In addition, we introduced a new AgResearch tool Life Cycle Assessment, to improve
how we measure on-farm emissions. We now have increased rigour around the data we
report due to a widening of the factors being taken into account. For example, we now
incorporate how our farmers manage livestock over winter, soil types and any change in
their land use (including deforestation).
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Scope 3 total on-farm GHG emissions (tCO
2
e)705,259700,8381,024,6291,122,3631,082,6511,033,5751,090,931
Scope 3 GHG emissions on-farm per kg/ms11.9511.5913.7313.1313.2713.0612.47
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Absolute scope 1+2 GHG emissions (tCO
2
e) 108,002113,547126,304125,465127,036120,459113,261
Total scope 1+2 excluding Synlait Farms108,002113,547126,304125,465126,862113,572103,228
FY24 MITIGATION RESULTS – ON-FARM
FY24 MITIGATION RESULTS – OPERATIONS AND SUPPLY CHAIN
Scope 3 GHG emissions on-farm
per kg/ms
Total scope 1+2 excluding
Synlait’s farms
(tCO
2
e)
FY18
FY18
FY19
FY19
FY20
FY20
FY21
FY21
FY22
FY22
FY23
FY23
FY24
FY24
FY28
Target
FY28
Target
9.61
69,467
11.59
13.73
13.13
13.27
126,862
13.06
113,572
12.47
103,228
Absolute scope 1+2 GHG
emissions
(tCO
2
e)
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY28
Target
69,467
113,547
126,304
125,465
127,036
120,459
113,261
108,00211.95
One of the fleet of all-terrain e-bikes
introduced at Synlait’s Dunsandel Farms.
PAGE 12
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CASE STUDY
BELLBIRDS AND
BIODIVERSITY:
THE BENEFITS
OF SYNLAIT’S
WHAKAPUĀWAI
Synlait launched one of its most
ambitious projects for the environment in
2019. Whakapuāwai is a wide-reaching
biodiversity programme.
Over the past five years, more
than 250,000 seedlings grown at
Whakapuāwai have been distributed to
farms and community projects across
Canterbury.
More than 55% of Synlait’s farmer suppliers
now have Whakapuāwai plantings on
their properties – many providing valuable
protection to riparian waterways.
Synlait supplier Jeanie Sanford’s family
farm at Greendale has extensive native
plantings.
“We began by planting a one kilometre
stretch alongside the Horarata River and
Bealey Stream as part of conditions for a
water consent back in 2011 and now have
tens of thousands of native plants across
multiple sites on the farm. Visitors often
remark on what a beautiful farm it is and
we love it. It looks great and has brought
the birdlife back – we have bellbirds
now.”
Sustainability Advisor Nick Vernon says
Whakapuāwai helps remove one of the
biggest barriers for farmers to undertake
native planting projects – cost.
“The reality is when you have a lot of
land to plant, you need a lot of seedlings.
Whakapuāwai makes that affordable.”
Jeanie Sanford agrees.
“Synlait’s support has been amazing. It’s
really helped us enhance our property
and protect its waterways while giving us
a real sense of accomplishment.”
FY24 saw Synlait employ Sarah Mason as
On-Farm Biodiversity Lead.
“My role is about ensuring we get the
right plants in the right place for our
farmers so we lift the value they get out
of the programme,” says Sarah.
Nick Vernon says Synlait has learnt a lot
over the past five years.
“We’ve learnt a lot about the variety of
ecosystems across Canterbury and are
now ecosourcing seeds for key planting
projects. We go out to the site that will
be planted, collect seeds from the area
which are grown into seedlings at the
nursery. That means we’re planting
natives that are right for the site and
won’t disrupt the ecosystem there.”
FY25 will see a focus on creating a long-
term plan to develop the Whakapuāwai
site at Synlait’s Dunsandel facility.
“That’s an important future step,” says
Sarah. “We want to develop the site so
we can grow more plants on-site and
ensure farmers and community groups
have a place they can come for relevant
advice on biodiversity projects.”
1. Look around to see what grants
are available for your project. The
Department of Conservation (DOC),
regional and local councils often offer
funding for fencing or pest control for
biodiversity projects.
2. Plan your project for areas that are
not covered by pivots as they deliver
lower economic returns for your
business.
3. Talk to your neighbours and see if
they are also interested in having a
planting project. Projects that span
multiple properties have greater
biodiversity benefits.
FIVE TIPS FOR FARM PLANTING PROJECTS:
4. Reach out to see if local community
and iwi are keen to be involved in
your project – they often are and an
additional 5 or 6 people can make a
big difference on planting day.
5. Factor in maintenance time to your
farming calendar. The more weeds
are kept under control, the faster the
project will grow.
Synlait’s Whakapuāwai biodiversity programme
grows around 40 species of native seedlings.
PAGE 13
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Nicky Halley (left) and the team at one of
Synlait’s Dunsandel farms.
CASE STUDY
CELEBRATION
FOR SYNLAIT’S
DUNSANDEL
FARMS
397 out of a possible 400 points is a
score anyone would be proud of so
Nicky Halley, the operations manager of
Synlait’s Dunsandel Farms, was chuffed
when he saw the Lead With Pride
TM
audit
result for the ‘Dunsandel Two‘ farm.
“I was actually relieved it wasn’t a perfect
score as I knew I’d get falsely accused of
rigging the system at the pub if that was
the case,” laughs Nicky.
Synlait farms Dunsandel One and
Dunsandel Two both became Lead with
Pride
TM
certified during FY24, a process
Nicky says was the end of a long journey.
“Both farms were vacant and had very old
equipment when they were purchased in
2020. We have worked hard to bring the
infrastructure up to scratch, get our team
in place, establish our herds (which came
from ten North Island farms) and our
SOPs (standard operating procedures).”
Nicky says undertaking the certification
process was worth it.
“The programme contains a lot of
valuable insight. I learnt a lot about
animal health metrics, particularly around
scoring pre-mating and pre-calving body
conditions. It was good to have access
to industry benchmarks so I could assess
our performance.”
“The whole team was involved in
attaining certification. There was a lot of
work to do – from ensuring maintenance
records are accurate to establishing
functional recycling systems.”
Nicky says the focus now is on ensuring
they keep striving for excellence.
“I know we’ll do that. The certification
process created a mindset change in
the team – everyone wanted to get Lead
With Pride
TM
certified and was proud
when we did it. We like knowing we’re
reaching best practice and the resulting
cost savings have made it worth it too.”
PAGE 14
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
NATURE
PILLER 2:
Water: Rather than have one target for
everyone, our new on-farm water quality
targets are focused on supporting our
farmers to take action on issues specific
to their catchment. As such, our on-farm
water quantity target has changed. Our
prior target was affected heavily by
seasonal variations which meant that,
although we have achieved our targets
every year since 2020, this was mostly
because of seasonal factors not through
actions. We have changed this passive
target to be more focussed on taking
action.
Whakapuāwai: Our biodiversity
programme has made a significant
contribution to water quality via
riparian planting on farms since it
was first launched in 2020. We intend
to utilise Whakapuāwai even more
powerfully going forward. Our intention
is to broaden its purpose to focus on
biodiversity and soil health and become
an ‘ecological centre of excellence’
focussed on world leading on-farm
initiatives.
Circular Economy: We have a
responsibility to ensure any negative
impacts on the nature from the waste
and packaging of the products we
produce. Here we have maintained
our target to divert 99% of non-
hazardous waste from landfill. We’ve
also maintained our intention for 100%
of product packaging to be reusable,
recyclable or compostable. Currently
we are sitting at 99.7%, which is a big
achievement, and we will keep this
target for any new products we add.
We’ve also broadened our commitment
to recycled content from 100% of milk
bottles to 50% recycled content right
across our packaging range.
These commitments will extend right
throughout our value chain.
Synlait is a business with strong links to New Zealand’s whenua (land) so
ensuring our sustainability strategy has a focus on biodiversity, soil health and
water makes sense.
Our intention is to set science-based targets and action roadmaps for water,
biodiversity and soil health and prepare for nature-based disclosures.
NATURE TARGETS
On-Farm
Biodiversity and Soil Health:
• Estsblish a science-based target
for biodiversity and soil health with
agreed roadmap and action strategy.
• 100% of Lead With Pride
TM
farms have
a farm resilience plan incorporating
biodiversity and soil health.
Water:
• Quantity: Demonstrating an
improvement in water use efficiency
across our entire supply base.
• Quality: 100% of farms taking action
to achieve catchment specific water
quality objectives.
• 45% reduction in nitrogen loss to
waterways per kilogram of milk solids
by 2028 from a FY18 base year.
• Establish a science-based approach
to on-farm water.
Waste/Circular Economy:
• 100% of Lead With Pride
TM
farms have
a farm resilience plan incorporating
waste reduction initiatives.
Operations
Biodiversity and Soil Health:
• Broadening Whakapuāwai into an
ecological centre of excellence,
that is significantly contributing to
restoring biodiversity and contributing
to cutting edge ecological projects.
• Nature targets and accounting are
managed across the Synlait business.
Water:
• 20% reduction in water use per tonne
of product by FY28, from a FY18 base
year for our Dunsandel site.
• 20% reduction of nitrogen discharge
per tonne of product by FY28 from
a FY18 base year for our Dunsandel
site.
Waste/Circular Economy:
• 99% of total non-hazardous
manufacturing waste will be diverted
from landfill by 2028.
• 100% of product packaging will be
reusable, recyclable, or compostable.
• At least 50% recycled content in all
packaging.
Supply Chain
Biodiversity and Soil Health:
• 100% high value/high risk contracts
with biodiversity and soil health
criteria.
Water:
• 100% high value/high risk contracts
with water criteria.
Waste/Circular Economy:
• 100% high value/high risk contracts
with waste and circular economy
criteria.
SUSTAINABILITY REPORT
PAGE 15
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Nitrogen loss to waterways grams per kilogram of milk solids41.440.533.431.22 9.128.724.8
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Off-Farm Water Use Per Tonne of Product (DUN)13.8614.3614.6212.2712.9912.4616.06
Nitrogen (in KG) Discharged per Tonne of Product (DUN & POK)0.280.320.380.310.270.360.45
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Non-Hazardous Waste Recycled84%78%79%80%85%71%82%
Product Packaging that is Reusable, Recyclable,
or Compostable - Synlait
--99.3%99.1%99.2%99.7%99.6%
Product Packaging that is Reusable, Recyclable,
or Compostable - Dairyworks
------80%
Recycled Content Across Product Packaging -
Synlait
------14.7%
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Number of Native Trees and Shrubs
Supplied by Whakapuāwai
---54,29044,66461,66686,969
- To Dunsandel Site---168144--
- To Synlait Dairy Farms---52,80240,90051,33653,481
- To Other Community Areas---1,3203,62010,33033,488
FY24 WATER RESULTS – ON-FARM
FY24 WATER RESULTS – OFF-FARM
FY24 CIRCULAR ECONOMY RESULTS – OFF-FARM
FY24 BIODIVERSITY RESULTS
WATER
CIRCULAR ECONOMY
BIODIVERSITY
KEY INITIATIVES
AND RESULTS
NATURE
Circular economy
99.7% of Synlait’s packaging is now
reusable, compostable or recyclable and
FY24 saw Dairyworks make great gains in
this sphere too.
Over 80% of Dairyworks’ packaging
is now either soft plastic or kerbside
recyclable – the remainder is due to
be transitioned during FY25. To date
this work has potentially removed
approximately 11,500 kg or 11.5 tonnes of
plastic from landfill every year.
Overall, Dairyworks continues to
investigate and trial new packaging
technology and monitor the infrastructure
available within Australia and New
Zealand for processing different
packaging materials.
Whakapuāwai
Our Whakapuāwai environmental
programme continues to grow with
another 80,000 native seedlings
dispatched during FY24.
Established as part of our commitment
to restoring and regenerating native
ecosystems and boosting biodiversity,
Whakapuāwai is now in its sixth year.
Each year the programme grows up to
40 varieties of native seedlings which are
planted on Synlait farms and community
projects.
FY24 saw the project reach farms north
of the Waimakariri River and in South
Canterbury for the first time making it
widespread across the Canterbury region.
PAGE 16
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CASE STUDY
USING MOSS TO
SAVE WATER
A New Zealand-grown moss has saved
Synlait enough water to fill two-thirds of
an Olympic-size swimming pool this year.
A ProMoss chamber has been
successfully trialled to treat the water
used by one of the cooling towers (Chiller
2) at our Dunsandel facility.
The chamber is filled with compressed
blocks of dried sphagnum moss that
is grown on the West Coast. The moss
naturally removes metal ions, absorbs
oil and grease, reduces corrosion and
scale formation while decreasing organic
growths (including legionella).
Traditionally, chemicals are used to treat
cooling tower water to stop the growth of
algae and bacteria. Throughout the four
month trial, chemical use on the chiller 2
tower decreased by 95%.
Testing showed zero positive results for
legionella, no visible algae and less than
detectable levels of HPC bacteria. There
was no downtime for the tower, much
lower levels of corrosion and it was much
cleaner during the off-season.
Another excellent outcome was
significant water savings. Post-trial
analysis shows that ProMoss decreases
the amount of water each cooling tower
uses by up to five cubic metres per day.
This means that, when ProMoss is rolled
out to all Synlait’s cooling towers, it could
save nearly six Olympic-size swimming
pools worth of water every year.
PAGE 17
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
WELLBEING
PILLER 3:
On farm, our Lead With Pride
TM
programme has ensured Synlait has
taken a leadership position on animal
wellbeing since 2018. We are now
developing a Social Responsibility
Strategy and will be working with all
of our Lead With Pride
TM
farmers on
a customised Animal Health and
Welfare Plan.
Within our Synlait business we will be
releasing a Wellbeing Roadmap and
Wellbeing Scoring system in FY25 which
will guide actions to improve wellbeing
going forward. This roadmap will focus
on meaningful work, work design,
connectedness and diversity (including
neuro, gender and cultural diversity).
From a gender perspective, we have
already achieved our target of having
between 40% and 50% of our senior
managers or specialists as women. We
will retain this target in order to ensure
we continue to track to this.
Our Gender Pay Gap is one key
objective that has not met expectations
to date. We had intended to close the
gender pay gap to less than 5% by FY23
however financial constraints in the
past three years has meant we have not
made the progress we had intended. We
have reset this roadmap and maintain
our intention to close this gap.
Finally, we remain committed to the
Health and Safety of our people and will
continue to dedicate ourselves to driving
our Total Recordable Injury Frequency
Rate down to below five by 2029.
From a value chain perspective, we
have begun work on our Modern Slavery
Statement and will be integrating animal
and people wellbeing factors throughout
our high value/high risk procurement.
When Synlait talks about wellbeing, we are referring to both people and animals.
We see it as our responsibility to care for both – right throughout our value chain.
WELLBEING TARGETS
On-Farm
People:
• Execute Social Responsibility
Strategy 2.0 across 100% of Lead
With Pride
TM
farms.
• Top quartile supplier Net Promoter
Score.
Animal:
• 100% of Lead With Pride
TM
farms have
an Animal Health and Welfare Plan in
action.
Operations
People:
• Total Recordable Injury Frequency
Rate below five.
• Positive net wellbeing score accross
business.
• 40% to 50% women as managers
or senior specialists (remuneration
grade 16 and above.)
• Gender pay gap <8% by FY26.
Animal:
• Animal Health and Welfare Plan in
action across all Synlait farms.
Supply Chain
People:
• Establish a Modern Slavery Policy
and Management Plan.
• 100% high value/high risk contracts
with wellbeing criteria.
Animal:
• 100% high value/high risk contracts
with animal wellbeing criteria.
SUSTAINABILITY REPORT
PAGE 18
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
KEY INITIATIVES
AND RESULTS
WELLBEING
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Gender Pay Gap - Synlait18%13%13%10%14%13%11%
Gender Pay Gap - Dairyworks---32%29%29%30%
Total Recordable Injury Frequency Rate (TRIFR)* - Synlait18.913.79.921.014.910.615.0
Women as Managers and Senior Specialists - Synlait34%36%37%36%37%40%43%
Women as Managers and Senior Specialists - Dairyworks---24%25%39%35%
Description of metric/targetFY18FY19FY20FY21FY22FY23FY24
Somatic Cell Count (SCC)155,000152,700148,219146,218147,000147,000145,063
Average Length of Farmer Partnership with Synlait in Years
- South Island*-6.87. 88.08.99.79.7
- North Island*--1.01.92.72.83.6
Lead With PrideTM Certified Farmer Suppliers*28%49%57%62%69%77%77%
FY24 PEOPLE WELLBEING RESULTS
FY24 ANIMAL WELLBEING RESULTS
FY24 was a challenging year for
business performance which saw us
take a backwards step in our journey to
Synlait Safe. Our Total Recordable Injury
Frequency Rate (TRIFR) for FY24 was
15.0 versus a target of 9.0.
We made gains across a number of areas:
• Improving our process for prompt
treatment and management of
injuries, reducing the overall severity
rate of these injuries once reported.
• We designed and delivered our
own behavioural safety programme,
Synlait Safe Mindsets, which had an
immediate impact.
• We partnered with Southern
Cross Health Insurance and piloted
a Bowel Cancer screening
programme (for 45-60 year olds)
which identified 22 employees
with at-risk results, and provided
proactive surgery intervention,
ultimately saving lives.
• We implemented our Critical Risk
Framework, and engaged our leaders
in conducting Critical Control Checks
to verify the effectiveness of controls
or ‘Safety Essentials’ designed to
save our people from a Life-altering
Injury or Fatality Event (LIFE).
• Our Synlait Safe programme has
been reset. We have a new roadmap
of activities for FY25, and continue
to work on developing our cultural
maturity and effectiveness at
eliminating harm.
Our farmer suppliers continue to go
above and beyond to look after animal
wellbeing. with 77% now Lead With
Pride
TM
certified.
Modern Slavery Statement
Our Modern Slavery Statement is
currently being created and, once
approved by our Board, will be published
on our external website. We expect that to
take place in early 2025.
PEOPLE
ANIMAL
*
TRIFR - Total Recordable Injury Frequency Rate (TRIFR) is calculated as (annual total of recordable injuries (medical and lost time) x 1,000,000 hours) /actual employee hours worked.
*
as of 31 May 2024
PAGE 19
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CASE STUDY
BOWEL CANCER
PILOT DELIVERS
PEACE OF MIND AND
WAKE UP CALLS
FY24 saw Synlait partner with Southern
Cross to pilot a Bowel Cancer screening
programme for 45 to 60 year olds.
131 staff registered to be part of the pilot
and were sent Faecal Immunochemical
Test (FIT) kits (similar to a COVID-19 RAT
test) that they could do at home. 117
employees sent in results, 22 were found
to be ‘at-risk’ and were referred to their
GP or for a colonoscopy.
Eighteen colonoscopies were completed
with four of our team presenting
“significant finds”.
One of those, who wishes to remain
anonymous, was shocked to find they
had seven polyps in their bowel – two of
which had grown to more than 7mm.
“All seven were removed during the
colonoscopy. I was told the larger ones
would have been growing for around
five years. It made me look at my whole
life and realise that I need to look after
myself so I’m here to support, guide and
coach those in my circle – both family
and friends. It is so good to know I now
have a clean Warrant of Fitness now.”
Synlait’s Head of Health and Safety
Anthony Butcher is pleased with how the
pilot went.
“It had a life-changing impact on the four
people with significant finds but it also
brought peace of mind to more than 100
others whose results were clear. Synlait
has already lost one employee, the lovely
Tony Thorpe, to bowel cancer – I think
he would be pleased we put the pilot in
place.”
For the employee, who is in their 50s, the
find was eye-opening.
“I had had no symptoms at all – no
bleeding or irregular bowel motions. I
just took the opportunity to be part of the
pilot. The test detects blood in stools that
is not visible to the eye and I was really
surprised at the result. If it hadn’t been
for Synlait instigating the pilot, I’d be on-
track to develop bowel cancer.”
The New Zealand flag at Synlait’s Dunsandel site
at half-mast in honour of employee Tony Thorpe,
who passsed away from bowel cancer.
PAGE 20
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
CASE STUDY
CREATING
HEALTHIER HERDS
Ruurd and Rachel Lieuwes are in their 10
th
season dairy farming for themselves as
an owner-operator business. They began
laying the foundation for a herd with low
somatic cell counts before they delivered
their first milk.
“We were very careful as to what we
bought,” says Ruurd. “High cell counts
generally don’t come down, so we
reviewed a lot of data before buying
cows to make up the herd.”
The Synlait suppliers’ Hororata farm is
known for delivering exceptional milk
quality and regularly having the lowest
somatic cell count (SCC) in the company
– averaging around 50,000.
Rachel says consistent commitment
delivers their success.
“Ruurd is in the shed every milking,
he knows the cows and he’s always
checking each udder to ensure the
cow is properly milked out. Sticking
with manual teat spraying has helped
us ensure good coverage both from a
teat condition and an antibacterial point
of view. Given our farm is quite windy,
automatic teat spraying would be much
less effective.”
They use use TeatX and usually add
higher rates of glycerine during spring.
“It’s all about keeping the teats in good
condition to reduce the risk of infection,”
says Ruurd. “We also pre-spray and wipe
down all the fresh calved cows and teat
spray the colostrums before and after
milking to try to reduce the incidence of
mastitis.”
Actively watching the milk quality results
is another key to success.
“Our milk is collected every day and I
always look forward to reviewing the
result. If I see it’s crept up, I know there’s
a problem so I act on it. Because our
average SCC is low, a single infected cow
can increase it. Sometimes these cows
aren’t very obvious and finding them can
involve quite a lot of extra stripping.”
The Lieuwes herd test four times a year
and that is also provides a lot of useful
information.
“As well as that, we teat seal every cow
at the end of the season and give dry
cow antibiotic to any that have been
infected or have a high SCC. It’s all
about attention to detail and a proactive
approach to keep the SCC low,” says
Rachel.
“Reducing the numbers of high SCC
cows in the herd mainly comes down to
identifying and making good decisions
SOMATIC CELL COUNTS
ARE AN IMPORTANT
MEASURE OF ANIMAL
HEALTH AND MILK
QUALITY:
< 100,000* indicates a healthy cow
200,000*+ is a potential mastitis case
300,000*+ is potentially a pathogen infection
*that is the number of somatic cells per millilitre of milk.
to test and cull those cows which have
staph aureus. This will often be the
biggest driver of overall SCC.”
Ruurd and Rachel say they are lucky that
they have a very simple De Laval swing
over 24 AS herringbone plant with cup
removers which milks the cows very
effectively and cleans well.
“We invested in some quality milking
equipment and have Boumatic flowstar
max clusters – the high volume bowls
reduce the risk of cross contamination
between quarters by stopping back
flush.”
The couple also say their use of ultra
lightweight vented Milkrite shells with
triangular liners contributes to their
success.
“This optimises the milking experience
for the cows and ensures they are milked
out well – even for cows with poor teat
placement. The way the liners collapse
still maintains blood flow in the teat which
is great for comfort and teat condition.”
Synlait suppliers Ruurd and Rachel
Lieuwes at their Hororata farm.
PAGE 21
SUSTAINABILITY REPORT
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
CHAPTER TWO
CLIMATE-RELATED
DISCLOSURES
PAGE 22
CLIMATEāRELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
As the global and domestic economy
transitions towards a low-emissions,
climate-resilient future, it is essential
for all companies in New Zealand,
especially in the agricultural sector,
to become leaders in sustainability and
environmental stewardship.
Agriculture is New Zealand’s largest
source of greenhouse gas emissions –
Synlait has never shied away from our
responsibility to work to address that.
Like our innovative and progressive
farmer suppliers, we are proud of New
Zealand’s unique environment and know
that for dairy farming to be sustainable,
our industry’s environmental practices
must be sustainable too.
That is why, more than a decade ago,
Synlait became the first dairy company in
New Zealand to recognise and financially
incentivise farmers who lower their
environmental impact.
We introduced Lead With Pride
TM
in 2013.
It was Australasia’s first internationally
accredited dairy farm assurance
system that enables our farmers to be
independently assessed to ensure they
are achieving dairy farming best practice
across four pillars – environment, animal
health and welfare, milk quality and social
responsibility.
Today 77% of our farmer suppliers are
Lead With Pride
TM
certified.
Lead With Pride
TM
is one of the many
ways Synlait has disrupted New
Zealand’s dairy industry and inspired our
competitors to follow in our footsteps.
Working together is equally powerful,
which is why Synlait is one of the founding
shareholders of AgriZero
NZ
investing in
the public-private partnership’s game-
changing efforts to help pasture-based
farmers reduce emissions.
Synlait will always look for ways to lift the
bar even higher – not because we are
legally required to do so, but because it
is in our DNA.
This is the company’s first climate-
related disclosure report. We hope it
(and our wider Integrated Climate Report)
demonstrates Synlait’s long-standing
commitment to helping New Zealand
meet its net zero goals.
We also hope it inspires change in other
businesses (just as they inspire change
in ours). Afterall, to address the climate
issues facing our planet, we must work
together.
George Adams
Chair
LEADING WITH PRIDE:
A WORD FROM OUR CHAIR
PAGE 23
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CLIMATE-RELATED DISCLOSURES
The Synlait Board of Directors is
responsible for the overall governance of
the company, including the oversight of
climate-related risks and opportunities.
This involves setting strategic priorities,
ensuring compliance with environmental
regulations, and integrating sustainable
practices into the company’s operations.
The Board considers and addresses all
significant matters impacting Synlait.
The Board Charter, which is available
on our website, details its role and
responsibilities. These include strategic
planning, financial performance,
executive management, audit and risk
management, corporate governance,
performance evaluation, workplace
health and safety, ethical conduct, and
climate-related risks and opportunities.
Governance and operations: The Board
is the ultimate decision-making body of
Synlait and is accountable to shareholders
for the company’s performance in
building sustainable value. It advances
the interests of shareholders, employees,
customers, and other key stakeholders
by acting honestly, faithfully, intelligently,
and in accordance with applicable laws.
SYNLAIT CLIMATE
GOVERNANCE
FRAMEWORK
SECTION ONE
The Audit and Risk Committee
is responsible for monitoring the
company’s performance against its
Sustainability Strategy and targets,
particularly those related to climate
change. This includes assessing
progress towards sustainability
goals, ensuring adherence to
climate-related targets, and regularly
reviewing compliance with relevant
laws and regulations. The Committee
focuses on identifying, assessing,
and mitigating environmental and
climate-related risks, reviewing
climate-related disclosures for
legislative and regulatory adherence,
monitoring performance against
climate initiatives, and evaluating
capital allocation decisions to ensure
alignment with climate targets.
Key highlights
• Composition: Consists of
a majority of independent
directors, including the Chair.
The CEO, CFO, Head of Legal
and Governance (also the
Company Secretary), and Senior
Independent Assurance, Risk
and Compliance Manager have
standing invitations to attend the
meetings.
The People, Environment, and
Governance Committee is responsible
for overseeing the company’s
sustainability initiatives, with a
focus on social and environmental
governance. This includes managing
the company’s approach to climate-
related risks and promoting ethical
practices. The Committee works
to integrate sustainable practices
into the company’s culture and
operations, fostering a commitment
to environmental stewardship and
social responsibility. Additionally, the
Committee monitors progress towards
sustainability goals and ensures
alignment with the company’s broader
Sustainability Strategy.
Key committee highlights
• Composition: Consists of a
majority of independent directors.
The CEO, CFO, Head of Legal
and Governance (also the
Company Secretary), and Senior
Independent Assurance, Risk
and Compliance Manager have
standing invitations to attend the
meetings.
• Meetings: At least five times
throughout the year, with updates
provided to the Board.
• Meetings: At least five times
throughout the year, with updates
provided to the Board.
• Committee Papers: Compliance
Reports are standing agenda
items. The report covers key
reporting on environmental laws
and regulations and other areas
of compliance and concern across
Synlait’s operating business. All
Board members have access to
the Audit and Risk Committee
papers to ensure appropriate
oversight and provide all directors
with key information.
• Enterprise and Strategic Risk
Management: The Committee
oversees enterprise risk and
strategic risk management. This
function is run in conjunction
with the ELT and Synlait’s Senior
Independent Assurance, Risk
and Compliance Manager. Key
workstreams are dedicated to
identifying and monitoring risks in
this space. In addition, the Board
recently held a workshop with ELT
on strategic risks. This workshop
considered climate-related
risks and opportunities, and the
outcomes are now embedded
in Synlait’s risk management
framework.
AUDIT AND RISK
COMMITTEE
PEOPLE, ENVIRONMENT AND
GOVERNANCE COMMITTEE
1.1 BOARD OVERSIGHT
AND GOVERNANCE
• Committee Papers: Sustainability
Dashboard and Sustainability
Update papers are standing
agenda items. In addition, the
ELT presents a variety of other
sustainability or compliance-
related papers and deep dive
topics across the year. All
Board members have access
to the People, Environment and
Governance Committee papers
to ensure appropriate oversight
and provide all directors with key
information.
The Board sets the overall tone for the
culture, performance, and accountability of
Synlait. We are committed to maintaining
high standards of corporate governance
and regularly review our performance with
best practice guidelines.
Climate-related responsibilities: The
Board’s climate-related responsibilities
include endorsing the company’s
Sustainability Strategy and key initiatives,
as well as non-financial success measures
such as climate and nature frameworks,
metrics, commitments, targets, and
policies. The Board monitors the
company’s exposure to climate-related
risks and opportunities, ensuring the
resilience of the company’s strategy
and value chain to climate impacts, and
evaluating the financial implications of
climate-related risks and opportunities.
Delegation of Responsibilities: The
Board delegates certain functions to its
committees who oversee specific areas of
the business and report back to the Board
after each meeting. Additionally, the Board
delegates the day-to-day running of the
company to the CEO, who works closely
with the Executive Leadership Team (ELT).
The ELT briefs the Board on sustainability
issues, including climate-related risks and
opportunities, throughout the year.
PAGE 24
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
PAGE 24
• A skills matrix ensures the Board
has the appropriate skills and
competencies for oversight.
• The Board skills matrix evaluates
understanding and identification
of climate-related risks and
opportunities.
• Regular updates and training
enhance the Board’s capability in
managing climate-related issues.
• Recent Board appointments have
strengthened expertise in climate-
related risks and opportunities.
• The Nominations Sub-Committee,
part of the People, Environment
and Governance Committee,
recommends candidates for key
management roles or Board
appointments, considering
experience, qualifications, and
diversity.
• The ELT and human resources team
have refreshed the recruitment and
talent framework to attract the right
talent for key roles that are required
to manage climate-related risks.
• Board remuneration is independently
assessed, and ELT remuneration
is linked to financial outcomes and
sharemarket performance.
• Currently, remuneration is not linked
to climate metrics.
This integrated framework ensures that
climate-related risks and opportunities
are managed effectively across all levels
of Synlait, aligning with both strategic
goals and regulatory requirements.
1.2 BOARD SKILLS AND
CAPABILITIES
NEW APPOINTMENTS
AND ENHANCEMENTS
REMUNERATIONBOARD SKILLS MATRIX
Number of Directors (Total 7)
Level of capability
Capability DescriptionHighMedium
Consumer ProductsExperience as a senior executive in, or as a professional advisor to,
consumer products businesses, including sales and marketing, product
innovation and supply chain.
Data and TechnologyExperience in the implementation of digital transformation or new digital
product development, including digital marketing and commerce, and
leveraging data and technology in a consumer products business.
Financial AcumenUnderstanding of financial statements and reporting, key
drivers of financial performance, corporate finance and internal
controls.
Food and Manufacturing
Safety and Quality
Technical or managerial experience relating to food, food product
development and the development and/or implementation and
management of safe practices for the sourcing, production, transport and
distribution of food.
GovernanceExperience in and commitment to the highest standards of corporate
governance, including as a non-executive director of a listed company,
large or complex organisation or government body, or through former
C-suite executive experience in a large organisation.
International Business
Experience
Experience as a senior executive in, or as a professional to, international
businesses with exposure to global markets and a range of different
political, regulatory and business environments.
LeadershipExperience in a senior management position in a listed company, large
or complex organisation or government body, including experience in
leading strategy development and execution.
Health and SafetyExperience in the development of health, safety and wellbeing
frameworks and risk-management tools at large organisations, or
experience in health & safety leadership positions.
People and CultureLeadership experience in the oversight, development and implementation
of people and culture programmes at large organisations, people
management, development and succession planning, setting
remuneration frameworks and promoting diversity and inclusion.
Risk ManagementExperience in identification, assessment, monitoring and management
of material financial and non-financial risks and understanding,
implementation and oversight of risk management frameworks and
controls.
StrategyExperience in strategic oversight, including the development and
implementation of strategic plans for organisations of similar scale and
complexity to Synlait.
SustainabilityKnowledge, understanding or experience in sustainable practices to
manage the impact of business operations on the environment and
community and the impact of climate change on the company.
Industry Involvement
and Advocacy
Experience in being a leading voice within the food or consumer goods
industry.
= one director
PAGE 25
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Executive Leadership Level
Key
GOVERNANCE
STRUCTURE
Board Level
Management Level
Reports to
Delegation and
oversight
Responsible for
Board of Directors
CEO
E LT
People, Environment,
and Governance
Committee
Audit and Risk
Committee
Governance
body level
responsibilities
detailed on page 24
Governance body
committee level
responsibilities
detailed on page 24
ELT level
responsibilities
detailed on
page 26
Management
level
responsibility
detailed on
page 26
CFO
Director On-Farm Excellence,
Business Sustainability and
Corporate Affairs
Chief Commercial
Officer
Head Of Strategy
& Corporate Affairs
Head of
Sustainability
Head Of Financial
Reporting and Tax
Head Of Legal
and Governance
Senior Independent
Assurance
Company
Secretary
Indirect reporting
obligations
The ELT is responsible for monitoring and
managing the company’s climate-related
risks and developing the Sustainability
Strategy. This includes setting and achieving
specific targets, integrating sustainable
practices into all aspects of the business,
ensuring compliance with environmental
regulations, and fostering a culture of
sustainability throughout the organisation.
Synlait has an internal strategic and
goal-focused accountability framework
that starts with the ELT. This framework
involves setting annual targets for
strategic objectives in a 6- and 12-month
gameplan, which then cascades down
to individual goals for team members.
One of five key priority pillars in this
framework includes On-Farm Excellence
and Sustainability targets.
Several key management functions play
significant roles in managing Synlait’s
climate-related risks and opportunities.
These include:
• Business Sustainability & On-Farm
Excellence Teams: Led by the Director
1.3 EXECUTIVE
LEADERSHIP TEAM
BUSINESS UNITS AND
KEY MANAGEMENT
FUNCTIONS
• Monitors and manages climate-
related risks.
• Develops and implements the
sustainability strategy.
• Reports progress on climate strategy
and targets to the Board, Audit and
Risk Committee, and the People,
Environment and Governance
Committee.
• Led by the CEO and includes key
executives responsible for various
aspects of the business.
• The CEO ensures alignment with the
company’s sustainability goals.
• Key executives oversee specific
climate-related responsibilities,
such as milk supply, sustainability
initiatives, and financial strategy.
• ELT members meet with the Board
and its committees at least 12 times
a year through either attending
meetings or presenting board papers.
• Each ELT member manages teams
that inform them of matters material
to climate risk and opportunity.
The ELT monitors relevant KPIs
depending on their role. They
are informed of updates by their
team through meetings, reports,
escalation processes, or less formally
if relevant. The frequency of this is
determined on a team-by-team basis.
• ELT members are delegated
decision-making power by the Board
to address climate-related risks and
opportunities.
RESPONSIBILITIES:
COMPOSITION:
CLIMATE-RELATED
RESPONSIBILITIES:
of On-Farm Excellence, Business
Sustainability & Corporate Affairs, the
sustainability team implements and
advances the company’s sustainability
initiatives. This includes managing
climate-related risks, developing and
executing sustainability strategies,
and setting measurable targets.
The team ensures compliance with
environmental regulations and
promotes a culture of sustainability.
They collaborate with stakeholders
to drive continuous improvement
in environmental stewardship and
corporate social responsibility. The
On-Farm Excellence Team focuses
on Synlait’s farmer supplier base,
ensuring competitiveness and
accelerating environmental and
greenhouse gas reduction targets.
A key feature is the Lead with Pride™
program, run with farmer suppliers.
• Chief Financial Officer (CFO):
Integrates climate-related risks
into the long-term financial
strategy, using financial modelling
and scenario analysis. Oversees
reporting on climate-related risks and
opportunities. The Head of Financial
Reporting and Tax assists the CFO in
these obligations.
• Chief Commercial Officer (CCO):
Reporting to the CCO, the Senior
Independent Assurance, Risk &
Compliance Manager supports the
business and Board by ensuring
audits of sustainability reporting and
climate-related risks. Together with
the Head of Legal and Governance
and Company Secretary, this function
monitors compliance with laws and
regulations.
PAGE 26
CLIMATEāRELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
STRATEGY
SECTION TWO
The following list details the physical and
transition risks and opportunities currently
faced by Synlait. These were identified by
a diverse panel of stakeholders who were
considered subject matter experts in their
business areas.
• Increasing occurrence of extreme
weather events like hot days,
drought, high rainfall, high winds
and flooding events causing
operational pressure and rising costs
for farmers.
Synlait combines expert farming with
state-of-the-art processing to produce
a range of nutritional products for
global customers that provide genuine
benefits for health and wellbeing.
Our corporate strategy was refreshed
in 2023. Our ELT and Board were
actively involved with our strategy refresh
and reviewed again in 2024 as part of
our annual planning cycle. The Board
took time to determine and examine
• Increased customer pressure to meet
carbon reduction targets.
• Extreme weather events disrupting
the importation and delivery of critical
ingredients and key inputs, leading to
unplanned site shutdowns, reduced
productivity, and revenue loss.
• Increased regulatory pressure to
transition to low carbon fuel causing
increased capital and operational
expenditure to convert assets to low
carbon alternatives.
Synlait’s Strategic Risks during this
process.
As a part of this, we made the decision
to double down on our value-add B2B
businesses, Advanced Nutrition and
Foodservice, where we have a clear
competitive advantage and right to win.
The refreshed strategy created a more
focused Synlait. Our five-year strategy is
detailed in appendix six and includes seven
2.1 CURRENT IMPACTS AND MITIGATIONS
Our strategic mitigations, outlined in
the adjacent diagram, show Synlait is
already reacting to current impacts and
positioning itself for a low-emissions,
climate resilient future. Our transition
plan, which we will develop further in
FY25, will show how we plan to continue
making progress on this work into the
future.
sections. It is designed to be a simple story
that sets out our ambitions and the focus
areas for Synlait during the coming years.
In 2024 we refreshed our Sustainability
Strategy, focusing our commitments
and KPIs to three new pillars - Nature,
Wellbeing and Climate.
More information on the Sustainability
Strategy is contained in the first section
of this report.
Greenhouse Gas Reduction Roadmaps - Our GHG Reduction Roadmaps detailed on page 34
demonstrate the steps we have taken and the steps we will take in the future to ensure we meet
our GHG reduction commitments.
Whakapuāwai - Our biodiversity programme, Whakapuāwai distributed 80,000 native plants
during FY24. These were used by farmers and community groups for planting projects. Since its
inception, Whakapuāwai has distributed 250,000 native seedlings and grown Synlait’s expertise
in plant growing enabling us to support farmers to sequester carbon on their farms.
AgriZero
NZ
Investment - As founding shareholders in this public-private partnership, Synlait
is investing in and supporting AgriZero
NZ
to ensure Aotearoa has access to methane and
nitrous oxide technology solutions.
Science Based Targets - Synlait set Science Based Targets (SBTi) in 2020 and we remain commited to
achieving them. Our commitments include achieving a 30% reduction in GHG On-Farm per kgMS by FY28
and a 45% absolute reduction in Scope 1 and 2 emissions by FY28.
Value Chain Partners - Building on our collaborative value-chain partnerships is a significant opportunity for
Synlait as customer and market preferences change. It is through collaborative partnerships with our customers
and farmer suppliers that we will reach our collective goals to reduce greenhouse gas emissions throughout
our value chains and consequently reduce the impact of climate change. As a business, we are also working on
optimising international shipping and sourcing to reduce GHG within our procurement and value chain.
Farm & Business Resilience Planning - The effects of climate change will produce more
extreme weather events. This requires us to build resilience across our business and our farmer
suppliers. We are supporting our farmers to develop resilience plans which incorporate climate
impacts and integrate climate risk (and risk assesment) into their business and asset planning.
Lead With Pride
TM
- Utilising our market leading Lead With Pride
TM
program, and greenhouse
gas tool, Synlait is commited to supporting our farmers to reduce GHG on-farm, paying a
specific GHG Incentive to farmers who act on-farm.
STRATEGIC MITIGATIONS
PAGE 27
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
PAGE 27
CASE STUDY
TRANSFORMING
CUSTOMER
PREFERENCES
INTO SUSTAINABLE
GROWTH
Changing customer requirements was
identified as a material climate-related
risk through the scenario analysis Synlait
conducted in 2023.
The company has chosen to see this as
an opportunity to work in new ways with
our customers and FY24 saw Synlait join
Nestlé in a unique three-way partnership
with our farmer suppliers.
The partnership is focused on pragmatic
on-farm solutions that improve efficiency,
such as effluent management systems,
emissions-friendly feed options,
advanced soil testing, alternative
fertilisers, and tree planting. It shares
the anticipated investment three ways
– between Nestlé, Synlait and its farmer
suppliers across a seven-year period.
This new kind of customer partnership
will help Synlait reach its greenhouse
gas emission targets, as well as opening
potential new commercial opportunities
to work with Nestlé.
Synlait CEO Grant Watson says the
partnership aims to accelerate farmers’
adoption of emissions reductions tools
and reduce the cost of implementation
for them.
“It’s leveraging technologies that are
available in market right now and will
expand over time to include emerging
technologies as they become available.
This kind of partnership also opens
potential new opportunities to work
together in other areas, and we look
forward to a long and fruitful partnership
with Nestlé.”
Nestlé Global Chief Procurement Officer
Patricia Stroup, speaking on a visit to
New Zealand, said that partnerships of
this kind which bring Nestlé together with
farmers and processors, are instrumental
in all parties reaching their greenhouse
gas emission targets.
“Dairy is both our single biggest
ingredient by volume, and our largest
Then Synlait CEO Grant Watson and Nestlé
former Global Chief Procurement Officer Patricia
Stroup at the partnership launch.
source of Scope 3 greenhouse gas
emissions, accounting for around 21%
of our total emissions. None of us can
do this alone. Knowing this drives us to
find new ways of working together, and
means we need to collaborate with our
dairy suppliers to adopt new ways to
reduce emissions, and with farmers to
create plans for climate, methane, and
regenerative agriculture.
The partnership is a good example of
the importance Synlait’s global customers
place on sustainability across their
supply chain.
PAGE 28
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
To assess our exposure to transition risks,
we adopted the SSP1-1.9; SSP2-2.6; and
SSP5-8.5 scenarios.
To assess our exposure to physical risks,
we adopted the RCP2.6, RCP4.5 and
RCP8.5 scenarios down-scaled from
AR5, as this was the only New Zealand
down-scaled data available at the time
of assessment for the purposes of a
physical risk assessment. The reason we
used down-scaled climate data for our
physical risk assessment is due to the
regional variations in climate impacts.
These then fed into our three Synlait
scenarios (Orderly, Disorderly and Hot
House World) to contextualise the future
under different warming scenarios and
timeframes.
These narratives helped to focus our
subject matter experts, and they were
able to produce a list of risks and
Synlait nominated three time horizons to assess our risks and opportunities against
each of our three warming scenarios (orderly, disorderly and hot house).
2.2 SCENARIOS
TIME HORIZONS
opportunities that could reasonably be
excepted under these scenarios.
After being evaluated, the most material
risks and opportunities were identified
and are listed on the following pages.
We believe these scenarios are relevant
and appropriate to assessing the
resilience of Synlait’s business model and
strategy to respond to climate-related
risks and opportunities because they
align with the guidance provided by The
Aotearoa Circle for the purpose of sector
level scenario analysis; the availability of
data from NIWA; alignment with NZCS1
standard (paragraph 13) and comparability
of the result with peers.
More information about the full scenario
analysis process is available in the Risk
Management section. Full descriptions of
each scenario are available in appendix four.
Timeframe Definitions and Alignments
ShortCurrent Day - 2025Aligns with and incorporates our corporate
strategy and short-term sustainability goals
(such as our science-based targets).
Medium2025 - 2035Aligns with our 10-year asset planning cycle
and capital deployment plans.
Long2035 - 2050Aligns with our long-term strategic planning
cycles.
PAGE 29
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
ORDERLY – PRESENT TO 2030
• Network for Greening the Financial System (NGFS) -
Net zero by 2050
• Shared socioeconomic pathway SSP1-1.9, 1.4 ̊C
• Climate Change Commision - Tailwinds
Regional policy
variation
Medium
variation
Policy
ambition
1.4 ̊C
Policy
reaction
Immediate and
smooth
Technology
change
Fast
change
CDR
(CO₂ removal)
Medium-high
use
DISORDERLY – 2030 TO 2050
• NGFS - Delayed Transition (1.8 ̊C)
• SSP1-2.6, 1.8 ̊C
• NIWA RCP2.6
• Climate Change Commision - Headwinds
Regional policy
variation
High
variation
Policy
ambition
1.8 ̊C
Policy
reaction
Delayed
Technology
change
Slow/fast
change
CDR
(CO₂ removal)
Medium
use
HOT HOUSE WORLD – 2050 TO 2100
• NGFS - Current Policies - Hothouse World (3 ̊C+)
• IPCC SSP5-28.5, 4.4 ̊C
• NIWA RCP8.5
• Climate Change Commision - Current Policies
Regional policy
variation
Low
variation
Policy
ambition
3 ̊C+
Policy
reaction
None - current
policies
Technology
change
Slow
change
CDR
(CO₂ removal)
Low use
SCENARIO ARCHITECTURE
Short-term
Present day to 2030
Early implementation of policiesDelayed policiesCurrent policies - limited ambition
Physical: Low
Transition: Medium
Physical: Low
Transition: Low
Physical: Low
Transition: Low
Medium-term
2030 to 2050
Ambitious decarbonisation goals and policies are introduced immediately, and
emissions decline rapidly and steadily to halve global emissions by 2030 and
achieve net zero by 2050.
Significant decarbonisation is delayed until the mid-2030s. There is high transition
risk due to a global run on resources in the 2040s, with punitive policies and
measures introduced to achieve net zero 2050 targets.
No additional policies are introduced to curb emissions, and emissions continue to
rise. Warming reaching >30C.
Physical: Low
Transition: Medium
Physical: Medium
Transition: High
Physical: Low
Transition: Low
Long-term
2050 to 2100
Net zero achieved
Relatively low exposure to physical climate-related risks. The transition is orderly
and minimises social and economic costs.
Slight overshoot of net zero by 2050 target. High social and economic costs
are incurred, due to resource scarcity driven by demand shocks and moderately
higher exposure to physical risk.
Overshoot of net zero by 2050 target. Severe resource scarcity due to supply
shocks relating to climate events. Extreme exposure to physical risks but limited
exposure to transition risks.
Physical: Low
Transition: Low
Physical: Medium
Transition: Low
Physical: High
Transition: Low
Characterised by1.4°C is the IPCC’s best estimate for long-term (2081-2100) warming (high
confidence). This scenario is characterised by:
• political stability
• robust policies
• incentives for investment in low carbon tech
• capital moves towards sustainable farming
• divestment from fossil fuels
• strong social consensus
• consumer demand for sustainability.
Three scenarios were adopted to assess exposure to physical and transition risks,
respectively. SSP2-4.5 was applied to assess physical risks. Characterised by:
• political division
• uneven climate action and land use planning
• delayed introduction of carbon border adjustment mechanisms
• softening trade agreements
• little or no incentives for sustainable farming
• slow adoption of sustainability measures
• tensions between urban and rural communities.
Characterised by:
• stagnant policies
• missed emissions targets
• severe climate impacts
• economic gain over sustainability
• industrialised farming
• relaxed food safety standards
• no emissions trading scheme
• poor labour conditions
• environmental degradation
• public backlash.
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CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
2.3 PHYSICAL CLIMATE-RELATED RISKS
RiskDescriptionRisk TypeLocationAnticipated ImpactsFinancial ImpactsTime HorizonStrategic Mitigations
Physical climate
impacts disrupt
Synlait’s supply
chain, leading to
increased market and
product risk.
Increasing occurrence of extreme weather events may disrupt
key logistics and supply chain delivery routes and pose
challenges for Synlait increasing the risk of product spoilage,
raising inventory storage costs, causing reputation damage,
logistical disruptions, and limiting product availability.
PhysicalSee Footnote 1Increased hot days may increase milk spoilage due to an
inability to store milk at required temperature.
See Footnote 2Medium
3
Continue to upgrade our inbound coolchain logistics to
better respond to hot days.
Conduct an outbound logistics and supply chain risk
assessment to determine key risk areas to
develop mitigation strategies.
Landslides, coastal inundation, and extreme weather
events globally may disrupt logistics and shipping and
prevent Synlait from shipping product to market.
Medium
3
Physical climate
impacts disrupt
Synlait’s milk
suppliers’
operations on-farm.
Increasing occurrence of climate impacts such as drought,
high rainfall and flooding events may disrupt farm operations
and critical infrastructure. These factors may contribute
to increased operational pressure and rising costs for
farmers and may result in reduced milk supply and quality
while increasing costs per unit of milk.
PhysicalSee Footnote 1Drought and reduced frost days may hinder feed
production resulting in increased feed costs for farmers.
See Footnote 2Medium
3,4
Support our Synlait suppliers with customised farm
resilience plans incorporating climate adaptation.
Continue to support Synlait Suppliers through our Lead
with Pride
TM
progamme and payments.
An increase in invasive pests may cause animal
welfare issues.
Long
3,4
Increasing extreme weather events may damage
farm plant and machinery.
Short
5
Physical climate
impacts disrupt
Synlait’s operations
and assets, causing
asset damage,
downtime, inbound
supply chain issues,
and workforce
challenges.
Increasing occurrence of extreme weather events and
number of hot days may cause asset damage, disrupt inbound
supply chain, challenge workforce availability, and disrupt
plant operations. This may necessitate inventory write-offs
and higher capital expenditure, and impact productivity and
revenue.
PhysicalSee Footnote 1Extreme weather events may disrupt the importation and
delivery of critical ingredients and key inputs, leading
to unplanned site shutdowns, reduced productivity,
and revenue loss for Synlait.
See Footnote 2Short
5
Integrate climate impacts into Synlait’s 10 Year Asset
Planning framework.
Ensure Synlait has robust remote working systems
and processes in place wherever practical to enable
employees to work from home/other locations.
Ensure Synlait has robust Risk Organism Response Plans
in place in the event of an outbreak.
Conduct an inbound logistics and supply
chain risk assessment to determine key risk areas
to develop mitigation strategies.
Extreme weather could challenge workforce
availability due to illness outbreaks or accessibility issues
which could further exacerbate potential site closures
and productivity.
Long
3,4
Increasing number of hot days may necessitate a
shortened asset design life, damage to roading at
manufacturing sites and increasing occurrence of brown
outs as the demand for electricity on HVAC increases.
Medium
3,4
The following list details the most material physical risks faced by Synlait. These risks were identified by a diverse panel of stakeholders who were considered subject matter experts in their areas
1. Specific locations will be updated in the FY25 edition of this report
2. The financial cost anticipated from theses impacts is currently being calculated and understood
– we plan to provide an update in our FY25 disclosure
3. RCP 8.5
4. RCP 4.5
5. Present Day
PAGE 31
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
2.4 TRANSITION-RELATED RISKS
RiskDescriptionRisk TypeLocationAnticipated ImpactsFinancial ImpactsTime HorizonStrategic Mitigations
Market risks –
changing market
and customer
expectations
Increased customer pressure to meet
carbon reduction targets could lead to
market exclusion and financial penalties if
not met. Additionally, inadequate emissions
tracking, and logistical challenges may further
jeopardise revenue and market access.
TransitionSee Footnote 1A failure by Synlait to reduce its carbon emissions and the relative carbon
footprint of milk may result in Synlait being excluded from key export
markets by its customers.
See Footnote 2Short
4
Deliver year on year GHG Reductions in Scope 1, 2 & 3.
Deliver on our roadmap to meet Synlait’s SBTi Targets
of –45% reduction in Scope 1 & 2 and –30% reduction
in Scope 3.
Continue external review and verification of GHG
Reporting.
Failure by Synlait to accurately quantify and track carbon emissions
inventory due to inadequate systems could result in green-washing
allegations and/or financial penalties, consumer defection, and loss of
revenue.
Short
4
Failure by Synlait to reduce carbon emissions and the relative carbon
footprint of milk exports could result in exposure to carbon border taxes
and an inability to retain market access.
Short
4
Regulatory and legal
risks
Synlait’s ability to meet its emissions reduction
targets could lead to costly liabilities,
increased compliance costs, missed tax
incentives, Directors’ fiduciary duty risk and
potential litigation costs.
TransitionSee Footnote 1A perceived failure to decarbonise may result in Synlait Directors being at
risk of penalties and fines for failing to discharge fiduciary duties relating
to managing the impacts of climate change.
See Footnote 2Short
4
Continue to monitor availability of low carbon fuel and
regulatory GHG reduction requirements.
Deliver on our roadmap to meet Synlait’s SBTi Targets
of –45% reduction in Scope 1 & 2 and –30% reduction
in Scope 3.
Increased regulatory pressure to transition to low carbon fuel may present
a risk of increased capital and operational expenditure to convert assets
to low carbon alternatives and a risk Synlait being left with sunk asset
investments.
Short
4
Tax incentives may be missed if GHG emissions reduction targets are not met. Short
4
Synlait may be exposed to legislative risk if it fails to meet its disclosure
requirements in a timely manner.
Short
4
Technology risks Technological limitations within the New
Zealand and pastural farming context may
increase liability and Synlait’s ability to meet
its carbon reduction obligations.
TransitionSee Footnote 1Reliance on methane inhibitor technology that may not be adopted quickly
enough compared to other markets could delay Synlait’s ability to meet its
on-farm GHG reduction obligations.
See Footnote 2Short
4
Leverage our investment in AgriZero
NZ
to ensure
access to methane and nitrous oxide technologies in
Aotearoa.
Continue to monitor and follow best practice in GHG
accounting.
Pursue partnerships and support initiatives to ensure
soil carbon sequestration is captured within New
Zealand.
On-farm (soil carbon) sequestration potential is overlooked, undervalued,
or not counted. This may present a risk that Synlait and its farmers are
overstating the embodied carbon of milk product.
Medium
3
Synlait may face a carbon offset liability associated with under-estimating
or the calculation of the embodied carbon of plant-based products. This is
due to difficulties associated with accurately tracking the carbon content
of novel ingredients and the complex production systems behind them.
Short
4
The following list details the most material transition risks faced by Synlait. These risks were identified by a diverse panel of stakeholders who were considered subject matter experts in their areas.
1. Specific locations will be updated in the FY25 edition of this report
2. The financial cost anticipated from theses impacts is currently being calculated and understood
– we plan to provide an update in our FY25 disclosure
3. RCP 8.5
4. RCP 4.5
5. Present Day
PAGE 32
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
2.5 PHYSICAL AND TRANSITION OPPORTUNITIES
OpportunityDescriptionOpportunity TypeLocationTime HorizonPotential Anticipated Impacts
MarketsPhysical climate change impacts globally may make dairying in New Zealand more viable
relative to other markets. This may present internationally competitive opportunities to
grow customers, revenue and margin.
PhysicalSee Footnote 1MediumAccess to new markets and customers.
Growth of share in existing markets
Low emissions production offsets long distance logistics challenges for New Zealand companies.
On-farm Extreme weather events and changes in rainfall patterns may necessitate on-farm
diversification, resulting in the generation of new revenue streams for farmers.
PhysicalMediumLonger milking seasons.
Opportunities to use low-carbon energy.
New logistics and transportation options emerge which both lower cost and increased margins.
ReputationOpportunities exist for Synlait to obtain discounted debt from sustainable finance if
emissions can be reduced. A strong performance in emissions reduction could result
in Synlait attracting and retaining higher calibre employees and customers because of
proven performance.
PhysicalMediumAccess to low interest capital.
Potential Increased margins.
Increased regulatory scrutiny and fines for competitors.
Gain access to tax incentives.
Products Changes in consumer demand could result in it becoming more profitable for Synlait to
produce lower embodied emission non-dairy products alongside the traditional products
enhancing the diversity of the product portfolio.
PhysicalMediumAccess to new markets and customers.
Access to low interest capital.
Potential Increased margins.
New product opportunities.
The following list details the most material physical and transition opportunities available to Synlait. These opportunities were identified by a diverse panel of stakeholders who were considered subject matter experts in their areas.
1. Specific locations will be updated in the FY25 edition of this report
PAGE 33
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
O
U
R
P
A
T
H
W
A
Y
T
O
A
L
O
W
E
M
I
S
S
I
O
N
S
F
U
T
U
R
E
2.6 TRANSITION PLAN
OFF-FARM
SCOPE 1 & 2
EMISSIONS
SCOPE 3
EMISSIONS
ON-FARM
Our transition plan is divided into two key areas: on-farm and off-farm. These two integral parts of our business need to transition to a climate-resilient future but will require radically different approaches. Their transition plans work in tandem across time horizon and will
be updated as activities and opportunities evolve.
Our off-farm climate strategy seeks to
decarbonise process heat and (the largest
source of which is coal). By transitioning
to alternative energies, we can leverage
our existing assets and achieve our FY28
target.
Baseline FY20
126,304 tCO
2
e
Baseline FY20
13.73 tCO
2
e
per MT of MS
FY28
(-45%)
FY28
(-30%)
Instillation of
electrode boiler
Lead with Pride
TM
greenhouse gas
tool and incentives
Lead with Pride
TM
farming
efficiencies
Deforestation and
land use change
New technologoes
(AgriZero
NZ
investment)
Removals (planting
via Whakapuāwai)
Conversion of
boiler to biomass
Biomass conversion
fully operational
Our goal: 45% reduction
of absolute Scope 1 and 2
GHG emissions by 2028
from our 2020 base year
Our goal: 30% reduction in
on-farm GHG emissions per
kilogram of milk solids by
2028 from our 2020 base
year.
Further conversion /
replacement of boiler
We are hereWe are here
Our on-farm climate strategy seeks to
invest in the future of farming solutions
by incetivising our farmers to make
emissions reductions, investing in
technology via AgriZero
NZ
and growing
our Whakapuāwai programme to achieve
our FY28 target.
O
U
R
P
A
T
H
W
A
Y
T
O
A
L
O
W
E
M
I
S
S
I
O
N
S
F
U
T
U
R
E
PAGE 34
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CLIMATE RISK
ASSESSMENT PROCESS
SECTION THREE
Synlait engaged Deloitte to assist with
the risk assessment scenario analysis.
The assessment performed was
qualitative, rather than quantitative, and
was designed to provide a high-level
first pass assessment to identify and
prioritise climate risks and opportunities.
To support this process, we worked with
Deloitte to identify and engage subject
matter experts who are best positioned to
provide insight and commentary on climate
risks and opportunities that are having an
impact on, or are likely to impact, Synlait.
The end-to-end risk assessment process
entailed a series of workshops to:
• Establish the scope and boundary
of the climate risk and opportunities
assessment.
• Determine the global warming
scenarios and the strategic time
horizons against which to test
exposure to climate hazards.
• Identify, engage, and facilitate the
key subject matter experts who
identified and rated the physical
and transition climate risk and
opportunities that are currently
impacting and which are anticipated
to impact Synlait.
This was a standalone process and did
not involve any quantitative modelling.
The physical and transition risk and
opportunity workshops were conducted
separately.
During the risk and opportunity
identification workshops, subject matter
experts (SMEs) were engaged to imagine
risks from a series of climate hazards,
by risk area. They were also required
to identify the risk receptor, or the
asset, service or person that would be
impacted.
Risks were categorised under high-level
risk type categories. Participants were
requested to provide a risk statement,
which described the consequence of the
risk on the receptor (the risk transmission
channel). Each risk dimension was
assigned a unique identifier number, to
facilitate a materiality analysis and final
risk ranking. The results of the climate
risk assessment were run through
Deloitte’s model to determine the most
material risks by climate hazard, risk type,
risk area and risk receptor.
The risk assessment process for
transition risks and physical risks was
different, in terms of the rating criteria.
When identifying climate-related risks,
the standard Synlait risk rating tool
was applied to ensure consistency and
comparability against other business risks
allowing these climate-related risks to be
integrated into Synlait’s enterprise risk
management framework. The risks on
this register are validated by the Board
and the ELT.
Every risk was rated individually, but was
also viewed as part of the aggregate, to
ensure that interlinked and cascading
risks were captured and reflected in the
scoring.
The materiality analysis looked at risks
by hazard, type and receptor, to ensure
Synlait has oversight of all the types of
risks that single events can present for
its people, operations and assets; or
all the climate risks that are associated
with parts of the business, for example,
manufacturing.
The risk assessment process described
above is consistent with the Ministry for
the Environment’s National Climate Risk
Assessment Framework methodology,
and with ISO14091:2021 by assessing the
identified risks in terms of their exposure,
sensitivity and adaptive capacity. This
process enables us to develop climate
scenarios depicting Synlait’s future
state exposure to climate risk. Climate
scenarios illustrate what the future might
look like under differing degrees of
climate change. They are not predictions
about what will happen, but rather
hypotheses about what could happen in
the short to long term.
The global warming futures are evaluated
against the scenarios provided by the
Intergovernmental Panel for Climate
Change (IPCC). These are collectively
known as the Shared Socio-economic
Pathways (SSPs) that offer different
reference narratives regarding socio-
economic trends that could shape the
future over time associated with distinct
global warming trends.
The SSPs are from the Intergovernmental
Panel on Climate Change Sixth
Assessment Report (IPCC AR6). The
SSPs build upon the Representative
Concentration Pathways (RCPs) from
the IPCC Fifth Assessment Report (IPCC
AR5). We applied the RCP scenarios (that
are aligned to the SSP scenarios) from
the IPCC AR5 for climate metrics that
have not yet been developed within the
IPCC AR6 models.
PAGE 35
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CLIMATE-RELATED DISCLOSURES
PAGE 35
RISK ASSESSMENT PROCESS FLOW
Established the context and
created the scenario narratives
Established a
steering committee
and SME group.
SME group performed a
qualitative assessment
of the resilience of
Synlait’s business model
and strategy.
The SME group took
the identified risk and
opportunities and
applied a rating based
on relevance to Synlait.
Risk statements
were integrated into
the enterprise risk
management process.
Material risks and
opportunities will be
reviewed in line with
the existing enterprise
risk cycle with further
identification integrated
into the Synlait strategy
timeline aligning with
the wider Synlait risk
register.
Risk and opportunity
statements were
catagorised as either
physical or transition.
These were reviewed by
the Steering Committee,
ELT and Board.
The material risks and
opportunities presented
in this document were
determined by risk
score.
Climate-related risks are
prioritised relative to
other types of risks by
risk score.
Risk and opportunities
monitored by the ELT
and Board at least a
quarterly and reported
externally annually.
SME group analysed the
driving forces based on
the political, social and
economic context for
Synlait.
Determined:
1. The physical
boundary
2. The scope
3. The global warming
scenarios
4. Strategic time
horizons
SME group
determined relevant
key driving forces.
The scenario
narratives were
defined, these were
reviewed by the
Steering Committee,
ELT and board.
Identified risks and
opportunities
Rated risks and
opportunities
Integrated and
managed the risks
and opportunities
Next steps
The tools and methods used to identify, and to assess the scope, size, and impact of climate-risks are detailed in the process timeline below.
Note: This process is aligned to NZ’s National Climate Change Risk Assessment
(NCCRA) process and framework as well as the methodology prescribed is ISO 14091.
PAGE 36
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Subject matter expert group
An SME group was established to ensure
inputs and outputs of the risk assessment
process were relevant and usable for
Synlait.
This included representation from all
areas of the organisation at various levels
of seniority.
Driving forces
Synlait’s subject matter experts agreed
the key driving forces of change
that were used to help develop the
scenarios. The driving forces were
adapted from The Aotearoa Circle’s’
Agricultural Sector Climate Change
Scenarios, changing consumer behaviour
(demand/preferences/expectations) and
sustainable farming and nature-based
solutions and practices emerged as the
most material driving forces.
These driving forces were analysed
based on the political, social and
economic context for Synlait with
reference to the NGFS global warming
scenarios. The scenario narratives were
then defined based on the information
captured. These narratives are presented
in the appendices on page 58.
In addition to monitoring our Strategic
Risks, the Board and ELT discuss
emerging risks and the interconnectivity
between risks. The Strategic Risks include
consideration of climate-related risks and
are publicly available on our website.
Synlait’s risk management framework is
aligned to ISO31000:2018 guidelines and
is applied across all sites and operations.
Synlait operates under a Board-approved
Risk Management Policy, with supporting
procedures and tools to achieve a
consistent approach.
The Board is responsible for approving
and making decisions in relation to
Synlait’s Risk Management Policy.
The Audit and Risk Committee has been
appointed by the Board to review and
Global warming scenarios
Synlait adopted the SSP1-2.6; SSP2-4.5;
and SSP5-8.5 warming scenarios for our
physical risk assessment and SSP1-1.9;
SSP1-2.6 and SSP5-8.5 were adopted for
our Transition Risk assessment. The down
scaled SSP1-1.9 data is not available in
New Zealand (from NIWA). An additional
scenario (SSP1- 1.9) was adopted for
the purposes of assessing exposure to
transition risks.
The rationale for adopting the mentioned
climate scenarios was:
• The guidance provided by The
Aotearoa Circle for the purpose of
sector level scenario analysis.
• The availability of data from NIWA.
• Alignment with NZCS1 standard
(paragraph 13).
• Comparability of the result with peers.
This ensured we met the requirement for
assessing, at a minimum, a 1.5 degrees
Celsius climate-related scenario, a 3
degrees celsius or greater climate related
scenario, and a third climate-related
scenario.
Scope
The risk assessment scope for Synlait
incorporated Operations and Assets, On-
Farm, and Products and Markets. There
were no exclusions noted in this scope.
Physical boundary
The boundary of the risk assessment
included two tiers upstream and one tier
downstream in the Synlait value chain.
There were no exclusions noted in this
boundary.
approve Synlait’s risk management
framework and key control framework.
The Committee is responsible for
monitoring Synlait’s risk management
profile, and the effectiveness of key risk
control activities.
Synlait assesses risks as either strategic
(those that would impact our ability to
deliver strategy) or operational (those the
business manages at an operational level).
Individual business areas and teams
maintain risk registers in line with
Synlait’s risk framework. These risk and
compliance matters are reported monthly
to management for decision-making.
Strategic risks are maintained by Synlait’s
risk team. The risk team also provides
a consolidated strategic risk and a
compliance status report for management,
to highlight key areas requiring ongoing
monitoring and attention.
Additionally, the Audit and Risk
Committee, People Environment and
Governance Committee and the Board
receive targeted risk and compliance
reports. Quarterly, the risk team reports
the status of risks and compliance matters
being addressed to the Audit and Risk
Committee and onto the Board.
Policies and procedures support active
management of key operational risks.
Key policies include the Synlait Standards
Policy, Delegated Authorities Policy, Tax
Risk Management Policy, Whistleblower
Policy, Health, Safety and Wellbeing
Policy and the Food Safety and Quality
Policy.
RISK MANAGEMENT
AT SYNLAIT
RISK ASSESSMENT PROCESS FLOW
PAGE 37
CLIMATEāRELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
METRICS AND
TARGETS
SECTION FOUR
Synlait has been measuring GHG
emissions since FY18 making this year
our seventh year using the operational
control consolidation approach.
We calculate with reference to the
methodology in the GHG Protocol and
ISO14064-1:2018 standards.
As adapted from the GHG Protocol, these
emissions were classified under the
following categories:
• Direct GHG emissions (Scope 1):
Emissions from sources that are
owned or controlled by the company.
Organisational boundaries were set with
reference to the methodology described
in the GHG Protocol and ISO14064-1:2018
standards. A list of the active entities that
• Indirect GHG emissions (Scope 2):
Emissions from the generation of
purchased electricity, heat and steam
consumed by the company.
• Indirect GHG emissions (Scope 3):
Emissions that occur because of
the company’s activities but from
sources not owned or controlled by
the company. Our Scope 3 emissions
have been further categorised using
the Scope 3 Standard categories.
Further information is available in
our greenhouse gas inventory in the
following chapter of this report.
have been included and excluded in our
emissions boundary has been included in
our GHG inventory.
4.1 CURRENT IMPACTS AND MITIGATIONS
4.2 BOUNDARIES
PAGE 38
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CLIMATE-RELATED DISCLOSURES
PAGE 38
SYNLAIT DUNSANDEL
SYNLAIT POKENO
SYNLAIT PALMERSTON NORTH RESEARCH
AND DEVELOPMENT CENTRE
SYNLAIT CHRISTCHURCH
DAIRYWORKS
SYNLAIT AUCKLAND
SYNLAIT WIRI
WAREHOUSE
SYNLAIT CHINA
INCLUSIONS AND EXCLUSIONS
In FY24 our total GHG emissions
profile included our locations as shown
to the right.
A detailed list of our included locations is
available in our GHG inventory including
any emission sources associated with
each of these locations.
While Synlait takes care to include all
possible emissions sources there are a
limited number of exclusions. The table
on page 50 details emissions that have
been excluded from the inventory in
FY24 and the reason for their exclusion.
• Electricity & transmission losses
• LPG
• Coal and coal transport DAF transport
• Biomass
• Diesel (milk tankers, combi Lift, Synlait
bus, company vehicles)
• Petrol (company vehicles)
• Packing gas
• Air travel, hotels and rental cars
• Refrigerants
• Waste to landfill
• Outbound, inbound and
interwarehouse freight
• Rail freight
• Reimbursed car milage
• Staff commute
• On-farm
Also called Gloucester Street (GCS)
• Electricity & transmission losses
Excluded
Excluded
• Electricity + transmission and losses
• Diesel boiler
• Air travel, hotels, and rental cars
• Packing gas
• Refrigerants
• Waste to landfill
• Outbound, inbound and
interwarehouse freight
• Staff commute
Includes Jerry Green Street and Westney
Road
• Electricity & transmission and losses
• LPG
• Electricity & transmission and losses
• LPG
• Distributed natural gas &
transmission losses
• Diesel (Milk Tankers)
• Packing gas
• Refrigerants
• Waste to landfill
• DAF transport
Also called Richard Pearce Drive (RPD)
• Electricity & transmission and losses
• Distributed natural gas &
transmission losses
• Packing gas
• Refrigerants
• Waste to landfill
PAGE 39
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Synlait’s GHG inventory further details our
contribution to climate change and global
warming.
The following diagram represents our
FY24 our total GHG emissions profile. This
Scope 3 emissions by typeTree map of FY24 emmisions by scopeScope 1 emissions by type
shows that 88% of our emissions can be
attributed to on-farm activity, our biggest
contribution to our overall emissions profile
(contributing 1,055,248 tco
2
e in FY24). 8.6%
in our manufacturing environment and 3.6%
from transport and distribution.
4.3 EMISSION PROFILE
1
2
3
On-farm GHG emmisions
1,055,248 tco
2
e
Synlait has set the following public targets
to manage our climate-related risks
and opportunities with consideration to
limiting global warming to 1.5°C in line with
Synlait is committed to achieving our
targets with a primary focus on emission
reduction.
Emission factors are sourced from
‘Measuring emissions: A guide for
organisations: 2024’ published by the
Ministry for the Environment (MfE).
In FY24, we utilised the document
published on 31 May 2024 and republished
on 6 June 2024. This document serves
4.4 TARGETS
4.5 OFFSETS
4.6 EMISSION FACTORS
the Paris Agreement 2016. This target
is verified by the Science Based Target
Initiative (SBTi) as aligned with 1.5°C and
business ambition for 1.5°C commitment.
We do not currently plan to apply offsetting
to achieve any of our targets between
FY24 and FY28.
as the basis for all emission sources
unless specified otherwise. Emission
factors present in the MfE 2024 guide
referenced above are based on data from
New Zealand’s Greenhouse Gas Inventory
1990–2022. For more information on
emission factors, please refer to our GHG
Inventory Report.
DescriptionUnitBase Year
FY20
Interim
Targets (year)
Target
FY28
Target
Type
Reduce absolute Scope 1 and 2
GHG emissions by 45% between
FY20 and FY28
tCO
2
e126,304Nil69,467Absolute
Reduce Scope 3 GHG emissions
from on-farm purchased goods and
services by 30% per kg of milk solids
(kgMS) between FY20 and FY28
tCO
2
e / t MS13.73Nil9.61Intensity
Transport and
distribution GHG
emmisions
43,197 tco
2
e
PAGE 40
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Metric TypeMetric (unit)TargetFY22FY23FY24Performance Against Target
Evolution from Base Year FY20
Notes/Trends
Scope 1 Emissions (tCO
2
e)No Target115,939112,708103,817-10%We have achieved a reduction of -12% in our scope 1 emissions since FY22.
Scope 2 Emissions (tCO
2
e)No Target11,0977,7519,444-15%Increased use of our electrode boiler has meant an increase in scope 2 emissions but this has
displaced emissions from coal (scope 1). In FY24 we also increased the locations included in scope
2 to include Christchurch office electricity for the first time.
Scope 1 + 2 Emissions (tCO
2
e)- 45%127,036120,459113,261-11%We have achieved a reduction of 11% on our combined scope 1 and 2 emissions with a target of
reducing this to 45% by FY28.
Scope 3 Emissions (tCO
2
e)No Target1,082,6511,033,5751,090,931+1%The bulk of our scope 3 emissions are attributed to on-farm emissions. A full list of what is included
in scope 3 is available in the GHG inventory report section of this document in table 2. This metric is
recalculated from base year due to change in on-farm emission reporting methodically in FY24. We
also annually update back to base year for on-farm emissions to account for update in calculations.
More information about this process is available in the GHG inventory report section under section
5, Methodologies and Uncertainties.
Scope 1 and 2 Emissions Per Tonne of
Finished Product (tCO
2
e)
No Target0.620.600.61-1%-
Scope 3 On-Farm Emissions Per Tonne of
Milk Solids (tCO
2
e / tMS)
- 30%13.2713.0612.47-8%Recalculated from base year in FY24, see scope 3 emission metric note for more detail.
Scope 3 On-Farm Emissions Per kg of Fat
and Protein Corrected Milk (tCO
2
e / tMS)
No Target1.031.010.97-6%
The emission intensity for farm suppliers included in this report is an average of the toal milk pool.
For customers requiring custom emission intensity figures please contact sustainability@synlait.com
Transition risks: Business activities
vulnerable to transition risks (%)
No Target---N/ASynlait plans to take an approach that would require a qualitative review of our material risks and
opportunities and associate any incurred or projected expenses associated in the first instance
then to derive a number of % of business activities vulnerable after this. In the FY24 year we will
use the adoption provision provided for financial disclosures. Therefore, the amount or percentage
of assets or business activities vulnerable to climate-related risks and opportunities can not be
quantified until FY25.
Physical risks: Business activities
vulnerable to physical risks (%)
No Target---N/A
Climate-related opportunities: Business
activities aligned with climate-related
opportunities (%)
No Target---N/A
Capital deployment: Amount of capital
expenditure, financing, or investment
deployed toward climate-related risks
and opportunities ($)
No Target$3,672,104$3,655,641$5,400,614N/ACalculated for the first time in FY24.
This amount represents our current spend associated with or already deployed to our
decarbonisation plan, AgriZero
NZ
investment, Whakapuāwai, CRD consulting, SBTi and Lead with
Pride
TM
GHG incentives during the financial years mentioned.
Remuneration: Management
remuneration linked to climate-related
risks and opportunities (%)
No Target0%0%0%No ChargeWe do not currently pay management or our Board in relation to climate-related risks and
opportunities.
Internal Emissions Price ($ / tCO
2
e)No Target$45N/A-
METRICS AND TARGETS
Absolute
Intensity
Other
PAGE 41
CLIMATEāRELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CHAPTER THREE
GHG EMISSIONS
INVENTORY
PAGE 42
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
CONTENTS
1. About This Report 44
GHG Inventory Assurance
Statement of Intent
Base Year and Reporting Period
Targets
2. GHG Inventory Full Results for FY24 45
3. Persons Responsible 46
4. Boundaries 47
Organisational Boundary
Operational Boundary
5. Methodologies and Uncertainties 48
Emissions Source Inclusions, Exclusions Methodologies and Uncertainties
On-Farm Emissions
Emissions Factors
Base Year Recalculation Policy
GHG Information Management and Monitoring Procedures
Other Emissions – HFC, PFC, NF
3
and SF
sf
Other Emissions – Biomass
Restatements
6. Glossary 52
7. Sign Off 52
8. Auditors Report 53
FY24 GREENHOUSE
GAS INVENTORY
REPORT
METRICS AND
TARGETS
SYNLAIT MILK LIMITED
PAGE 43
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
1. ABOUT THIS
REPORT
This report is the annual greenhouse gas (GHG) emissions inventory
report for Synlait Milk Limited (Synlait). The inventory is a complete and
accurate quantification of the amount of GHG emissions that can be
attributed to Synlait’s operations within the declared boundary, scope, and
reporting period.
Synlait is a milk nutrition and dairy processing company operating in
New Zealand.
The inventory and this report have been prepared in accordance with the
requirements of the Greenhouse Gas Protocol: A Corporate Accounting
and Reporting Standard (2004) and ISO 14064-1:2018 Specification with
Guidance at the Organization Level for Quantification and Reporting of
Greenhouse Gas Emissions and Removals. Throughout this report, where
appropriate, figures have been rounded to the nearest whole number.
GHG INVENTORY
ASSURANCE
Deloitte Limited has been appointed as
the third-party independent assurance
provider. A reasonable level of assurance
has been given over the Scope 1 and 2
assertions and quantifications included
in this report and a limited level of
assurance over the Scope 3 assertions
and quantifications.
STATEMENT OF INTENT
& INTENDED USE
This inventory report forms part of
Synlait’s commitment to sustainability
and environmental best practice and
informs the governance body and senior
management’s decision-making relating
to the company’s sustainability strategy.
We intend to make this report publicly
available through our website.
BASE YEAR AND
REPORTING PERIOD
The base year is 1 August 2017 to 31 July
2018. This is the first 12-month period
where GHG emissions were calculated.
This document covers emissions for the
period 1 August 2023 to 31 July 2024,
known as financial year 24 (FY24).
TARGETS
In 2021 we upgraded our Science Based
Targets for Scope 1 and 2 emissions
out to 2028. These targets have the
company working toward a reduction in
emissions from the 2020 baseline. The
baseline year has been determined for
the purposes of setting our reduction
targets only as our GHG base year is
FY18. The reset targets are approved
by the Science Based Targets initiative
(SBTi) and align with the commitment to
keep warming to below 1.5 ̊C.
• Scope 3 (in tCO2e) GHG emissions
from on-farm purchased goods and
services by 30% per kg of milk solids
(kgMS) intensity between FY20 and
FY28
Synlait has committed to reduce:
• Absolute Scope 1 and 2 greenhouse
gas (GHG) emissions by 45%
between FY20 and FY28 (in tCO2e)
PAGE 44
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
2. GHG INVENTORY FULL
RESULTS FOR FY24
Table 1: GHG Emissions by Scope and ISO 14064 - 1:2018 categorisation
FY18
(base year)
FY19FY20FY21FY22FY23FY24FY18-FY24
Evolution
Scope 1(1) Direct GHG emissions 101,079 106,512 117,500116,961115,939¹112,708103,8173%
Scope 1 Excluding
Synlait Farms
(1) Direct GHG emissions 101,079 106,512 117,500116,961115,939105,97493,938-7%
Scope 2(2) Indirect GHG
emissions from imported
energy
6,923 7,035 8,804 8,504 11,097 7,751 9,444 36%
Scope 2 Excluding
Synlait Farms
(2) Indirect GHG
emissions from imported
energy
6,9237,0358,8048,50410,9237,5989,29034%
SubtotalScope 1 and 2 Emissions
(tCO₂e)
108,002 113,547 126,304125,465127,036120,459113,2615%
Subtotal Excluding
Synlait Farms
Scope 1 and 2 Emissions
(tCO₂e)
108,002 113,547 126,304126,465126,862113,572103,228-4%
Scope 3(3) Indirect GHG
emissions from
transportation and
distribution
42,84146,04546,51153,03754,773 56,091 43,1971%
(4) Indirect GHG
emissions from products
and services used by the
organisation
1,1551,9023,5963,4382,472 3,101 2,365105%
(5) Indirect GHG
emissions from the use
of the organisation’s
products
--------
(6) Indirect GHG
emissions from other
sources –
on-farm emissions
2
661,263 652,891974,5221,065,8881.025,406974,3831,045,36958%
SubtotalScope 3 Emissions
(tCO₂e)
705,259 700,838 1,024,629 1,122,363 1,082,651 1,033,575 1,090,93155%
Total Indirect Emissions (Scope 2 and 3) 712,182 707,873 1,033,433 1,130,867 1,093,748 1,041,326 1,100,37555%
Total Emissions (tCO₂e) 813,261 814,385 1,150,9331,247,8281,209,6871,154,0341,204,19248%
1
The previously reported 956 tCO2e for FY22 on-farm emissions was calculated using legacy methodology (OverseerFM). Following the implementation of a revised
calculation framework based on milk production volumes, and noting that no milk was collected in FY22, grazing-related emissions have been excluded from the main
inventory figures.
2
Restated due to change in methodology, refer to on-farm section of this document for more information. Please refer to our FY23 GHG Inventory Report for
previous results we have reported.
3
The previously reported 956 tCO2e for FY22 on-farm emissions was calculated using legacy methodology (OverseerFM). Following the implementation of a
revised calculation framework based on milk production volumes, and noting that no milk was collected in FY22, grazing-related emissions have been excluded
from the main inventory figures.
4
The electricity emissions factor decreased by 0.004 kgCO₂e/unit. If not for emissions factor change, total emissions would be 9,988 tCO₂e.
5
Restated due to change in methodology, refer to on-farm section of this document for more information. Please refer to our FY23 GHG Inventory Report for
previous results we have reported.
Table 2: GHG Emissions by Source
Emissions SourcesFY18 (base
year) tCO
2
e
FY19
tCO
2
e
FY20
tCO
2
e
FY21
tCO
2
e
FY22
tCO
2
e
FY23
tCO
2
e
FY24
tCO
2
e
Scope 1
LPG470503586531362427463
Coal94,791100,02897,96596,40298,46587,25373,865
Biomass--8--2889
Diesel – Milk Tankers4,3024,1966,0356,7917,0917,0556,965
Diesel – BoilerN/AN/A906982402615
Distributed Natural Gas16316910,05810,7488,6579,77811,338
Company Vehicles and Combi 737684243296349310
Bus0125105123707976
Packing Gas1,2661,3491,7191,103936819711
Refrigerants0200190118 81
Rental Cars 1446341922 42 25
Synlait Farms On-Farm----0
3
6,734 9,879
Scope 2
Electricity
4
6,9237,0358,8048,50410,9237,5989,290
Synlait Farms Electricity----174153154
Scope 3
Gas Transmission Losses19201,181639515361422
Electricity Transmission Losses5655336677291,003855689
Synlait Farms Electricity Transmission Losses----161811
Waste to Landfill4211,1081,6992,0509041,8041,206
Coal and DAF Transport2122096351,8451,822210224
Road Freight (outbound)2,4812,6833,4755,9565,6971,3774,562
Road Freight (inbound)2,1522,2652,6884,1624,1413,6476,228
Sea Freight (outbound)25,54025,15125,83129,56233,13436,170 18,889
Sea Freight (inbound)9,37711,9838,9717,9074,7686,834 8,848
Air Freight (outbound)3925511,6172,468913686398
Air Freight (inbound) 009938601,047146
Inter-warehouse Road Freight5596056443385882173
Inter-warehouse Sea Freight3077561,306352688412329
Rail Freight---59237194220
Car Mileage492215132412
Staff Commute----2,9193,9222,278
Taxi34ExcludedExcludedExcludedExcluded1
Air Travel1,8141,8291,2233353411,486 886
Hotel stays15024149203463 37
Farmer Suppliers On-Farm Emissions
5
661,263 652,891 974,522 1,065,888 1,025,406 974,383 1,045,369
Working From Home Excluded Excluded Excluded Excluded Excluded Excluded 3
Total GHG Emissions813,261814,3851,150,9331,247,8281,209,6871,154,0341,204,192
PAGE 45
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Table 3: GHG Emissions by Gas Type
Table 4: Emissions Intensity – Total and Per Year
Total - tCO
2
eCO
2
- tCO
2
eCH
4
- tCO
2
eN
2
O - tCO
2
eOtherHFC - tCO
2
e
Scope 1 and 2 Emissions113,261103,225 7,751 2,285 00
On-Farm Scope 3 Emissions1,045,369 293,610 605,758 145,537 464 0
FY18
tCO
2
e
FY19
tCO
2
e
FY20
tCO
2
e
FY21
tCO
2
e
FY22
tCO
2
e
FY23
tCO
2
e
FY24
tCO
2
e
FY18-FY24
Evolution
Scope 1 and 2 Emissions
Per Tonne of Finished Product
0.780.730.650.580.620.600.61-21%
Scope 3 On-Farm Emissions Per
Tonne of Milk Solids
11.9511.5913.7313.1313.2713.0612.474.4%
Table 5: Emissions Intensity by Gas Type
FY24 Emission Intensity MetricsTotal - tCO
2
eCO
2
- tCO
2
eCH
4
- tCO
2
eN
2
O - tCO
2
eOtherHFC - tCO
2
e
Scope 1 and 2 Emissions
Per Tonne of Finished Product
0.610.560.040.0100
Scope 3 On-Farm Emissions
Per Tonne of Milk Solids
6
12.473.507.231.7300.01
Table 6: Scope 3 On-Farm Emissions Per Kilogram of Fat and Protein Corrected Milk (FPCM)
FY18
kgCO
2
e
FY19
kgCO
2
e
FY20
kgCO
2
e
FY21
kgCO
2
e
FY22
kgCO
2
e
FY23
kgCO
2
e
FY24
kgCO
2
e
FY18-24
Evolution
Scope 3 On-Farm Emissions
Per kilogram of FPCM
67
0.920.891.061.011.031.010.975.4%
Table 7: Biomass Combustion
Quantity (tonnes)tCO
2
eTonnes Biogenic CO
2
Mobile Combustion000
Stationary Combustion
8
3,078.46895,230
3. PERSONS
RESPONSIBLE
The Board of Directors are responsible for the Greenhouse Gas Inventory report.
This report has been approved by George Adams - Board Chair.
6
Custom Emission Factor(s): Unless otherwise stated the emission intensity for farm suppliers included in this report are an average of the total milk pool. For custom emission
intensity figures, please contact sustainability@synlait.com. Custom Emission Factor(s) are not included within the scope of assurance covered by Deloitte.
7
Scope 3 On-Farm Emissions per Kilogram of Fat and Protein Corrected Milk (FPCM): During FY24, it was discovered that FPCM should be calculated using total
protein, however Synlait has always used crude protein as the input. This year Synlait has updated the calculation methodology for FPCM to account for this
difference. This impacted the Scope 3 on-farm emissions per metric tonne of FPCM metric and this has been restated back to base using the correct inputs and
formula. The updated methodology is based on the IDF FPCM equation but modified slightly to allow for crude protein data rather than total protein as defined
by the IDF. The equation used is FPCM(kg/yr)=Production(kg/yr)*[0.1226*Fat% + 0.0772*Crude Protein% + 0.2534] where the fat and the protein % are in mass/
mass. Production is the kg MS.
8
Biomass was combusted in the 2024 financial year for a period of four months and the tco2e (from CH4 and N20) equated to 89 for this period.
PAGE 46
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
4. BOUNDARIES
ORGANISATIONAL BOUNDARY
Organisational boundaries were set with reference to the methodology described in the GHG Protocol and ISO14064-1:2018
standards. The table below details the legal entities included in scope. Synlait uses an operational control consolidation approach.
OPERATIONAL BOUNDARY
There are several sites (also referred to as business units) that Synlait operates. The following table outlines the sites that have
been included or excluded in the emissions inventory.
Business Unit/Sites Description/Function LocationInclusionsReason/Notes
Synlait CorporateCorporate emissions across all
Synlait sites
DunsandelIncludedIncludes emissions which are not site
specific for Synait.
DunsandelMilk processing and
manufacturing site
DunsandelIncludedIncludes manufacturing and site-specific
emissions only. This is the main operational
and administration site for Synlait.
Dunsandel FarmsDairy farmsDunsandelIncludedSynlait Milk Limited had direct control in
FY24. Includes on-farm and electricity
emissions.
Richard Pearce Drive (RPD)
Auckland
Milk powder canning and
blending site
AucklandIncludedIncludes manufacturing and site-specific
emissions only.
Westney Road WarehousingAucklandIncludedLeased premise.
PōkenoMilk processing and
manufacturing site
WaikatoIncludedIncludes manufacturing and site-specific
emissions only.
Research and Development
Centre
Research and development,
part of a larger shared campus
Palmerston
North
ExcludedOffice space leased and emissions
estimated to be de minimis.
ChristchurchSatellite officeChristchurchExcludedOffice space leased and emissions
estimated to be de minimis.
ShanghaiSatellite officeChinaExcludedOffice space leased and emissions
estimated to be de minimis.
Jerry Green StreetWarehousingAucklandIncludedNew leased premise which Synlait
commissioned in late FY23. Included in
scope from FY24.
Dairyworks CorporateCorporate emissions across all
Dairyworks sites (including TFC
and leased warehouse)
ChristchurchIncludedIncludes emissions which are not site
specific for Dairyworks.
Talbot Forest CheeseCheese production factory, milk
supplied by Synlait
TemukaIncludedIncludes manufacturing and site-specific
emissions only. Non-operational in FY24.
Dairyworks Hornby
Gerald Connolly Place
Dairy processing factoryChristchurchIncludedIncludes manufacturing and site-specific
emissions only.
Entity Name Description/Function OwnershipInclusionsComment
Synlait Milk LimitedParent company100%Included-
Synlait Milk Finance
Limited
Wholly owned subsidiary, holding
company for financing purposes.
100%IncludedNo activities that produced GHG
emissions therefore not separately
reported.
Synlait Milk Dunsandel
Farms Limited
Wholly owned subsidiary, two dairy
farms that supply Synlait from FY22 (part
season) to FY24
100%IncludedSynlait has direct operational control,
therefore not separately reported
The New Zealand Dairy
Company Limited
Wholly owned subsidiary, company that
previously owned the land at Richard
Pearse Drive. The company was acquired
at the same time as land purchase.
100%IncludedNo activities that produced GHG
emissions therefore not separately
reported. Richard Pearce Drive site
captured as a business unit.
Eighty-Nine Richard
Pearse Drive Limited
Wholly owned subsidiary, company that
previously owned the land to Richard
Pearse Drive. The company was acquired
at the same time as land purchase.
100%IncludedNo activities that produced GHG
emissions therefore not separately
reported. Richard Pearce Drive site
captured as a business unit.
Synlait Business Consulting
(Shanghai) Limited
Wholly owned subsidiary, satellite office
for staff based in China.
100%ExcludedGHG emissions estimated to be de
minimis, therefore not reported.
Dairyworks LimitedWholly owned subsidiaries, dairy
processing companies in New Zealand
and Australia.
100%IncludedAcquisition (April 2020).
Primary Collaboration
New Zealand (Shanghai)
Co., Limited
Wholly foreign owned entity designed
to gain a better understanding of the
complex Chinese market and facilitate
easier access to China.
100%ExcludedGHG emissions estimated to be de
minimis, therefore not reported.
Sichuan New Hope
Nutritional Foods
Infant formula company registered in
China, owns the Akara and E-Akara
brands, which are exclusively
manufactured by Synlait.
25%ExcludedShareholding only, no operational control.
Primary Collaboration New
Zealand Limited
Wholly foreign owned entity designed
to gain a better understanding of the
complex Chinese market and facilitate
easier access to China.
17%ExcludedShareholding only, no operational control.
Centre for Climate ActionAgri Zero investment1.5%ExcludedShareholding only, no operational control.
Table 8: Legal EntitiesTable 9: Business Units
PAGE 47
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
5. METHODOLOGIES
AND UNCERTAINTIES
The GHG emissions sources included
in this inventory were identified with
reference to the methodology in the
GHG Protocol and ISO14064-1:2018
standards.
Where relevant, the inventory is aligned
with industry or sector best practice for
emissions measurement and reporting.
An operational control consolidation
approach is used to account for
emissions.
As adapted from the GHG Protocol,
these emissions were classified under
the following categories:
• Direct GHG emissions (Scope
1): Emissions from sources that
are owned or controlled by the
company.
Table 10: Emissions Source Data Inclusions, Processes and Uncertainties
Emissions SourceScopeScope 3 CategoryPurposeData Process/Uncertainties
LPG1-ForkliftsUsage provided by supplier reporting in tonnes and
converted to litres.
Coal1-Process heatUsage from invoices combined with the Gross Calorific Value
(GCV) of the coal as assessed from a monthly sample taken
by a third party which serves as a custom emission factor.
As the GCV derived emission factor doesn’t break down
other gases (only total CO₂e) it has been assumed that the
percentage of other gases (N₂0, CH₄, CO₂) is the same as the
MfE emission factor.
Biomass1-Process heatUsage provided by invoices.
Diesel – milk tankers1-Road transport of
milk from farm to
manufacturing sites,
and transfer of milk
between factories
Usage provided by supplier reporting which tracks diesel use
in litres.
Diesel – boiler1-Process heatUsage provided by invoices and supplier usage report.
Distributed natural gas1-Process heatMonthly invoices provide consumption data in kWh and GJ.
Company vehicles & combi1-Business travel &
warehouse operations
Usage of petrol and diesel provided by invoices.
Bus1-Employee
transportation
Usage provided by supplier reporting which tracks diesel use
in litres.
Packing gas1-PackingUsage provided by supplier reporting.
Refrigerants1-All units and
systems that use
refrigerants such as air
conditioning, chillers,
fridges
Suppliers confirm whether any top ups have occurred and if
so, provide amount and type of gas.
Rental cars1-Business TravelUsage provided by supplier reporting which includes travel
distances. Travel distances are entered by the rental car
company and are captured in the report from the travel
agent. If distances are coded incorrectly or not entered a
standard measurement of 50km per day of hire is applied to
the booking. This report and its associated GHG emission
calculations have been independently verified by Toitū
Envirocare.
Synlait farms on-farm1-Raw milk supply from
farms that Synlait own
and manage
On-farm emissions are GHG emissions from the dairy farms
that Synlait has a direct supply agreement with, and in this
case own and manage. The process for collecting and
reporting this data is the same as for other farmer suppliers.
For more details, please see the on-farm section below.
Electricity 2-Office and
manufacturing use
Usage provided by supplier reporting for all sites except
Christchurch Satellite office which uses spend data from
invoice obtained by building manager and applies an
emission intensity from Auckland Council consumption
emission modelling.
• Indirect GHG emissions (Scope
2): Emissions from the generation
of purchased electricity, heat and
steam consumed by the company.
• Indirect GHG emissions (Scope 3):
Emissions that occur because of
the company’s activities but from
sources not owned or controlled
by the company. Our scope 3
emissions have been further
categorised using the Scope 3
Standard categories.
Table 10 provides an overview of how
data was collected for each GHG
emissions and an explanation of any
uncertainties or assumptions made.
EMISSIONS SOURCE INCLUSIONS, EXCLUSIONS
METHODOLOGIES AND UNCERTAINTIES
PAGE 48
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INTEGRATED CLIMATE REPORT 2024
SYNLAIT MILK LIMITED
Emissions SourceScopeScope 3
Category
PurposeData Process/Uncertainties
Gas and electricity
transmission losses
33Losses during
transmission
Default transmission loss amount is used which is incorporated into the
emissions factor provided by MfE and applied to total electricity and natural
gas KWH use as based on supplier reporting.
Waste to landfill35Manufacturing and
office waste
Usage provided by supplier reporting. The mixed waste non methane
recovery emissions factor is applied to all sites.
Coal transport34Transportation of
coal
Road freight for transporting coal to Dunsandel is estimated based on weight
of coal purchased and distance from supplier to Dunsandel multiplied by
road freight emissions factor. Assuming 26km from supplier to factory.
DAF transport34Transportation of
DAF sludge
Usage provided by supplier reporting. Diesel usage in litres based on
average fuel efficiency for each vehicle type.
Outbound freight
(sea, road, air)
39Delivery of finished
goods to national
and international
customers
Distances in kilometres are calculated from origin to destination countries
and multiplied by the weight of goods delivered to obtain tonnes per
kilometre (TKM) using data extracted from Synlait’s internal sales and
shipping report to track all orders*. Including the following assumptions:
1. Consignments travel directly to destination.
2. The road components for sea and air freight (from original location to
port and from port to destination) are 50km at each end unless the
carrier is the rail transport provider from Synlait Dunsandel to Lyttleton
Port (the emissions from this carrier are included in rail freight), making
it an estimated 100km of road freight,
3. Air consignments are >3700km therefore the long-haul emissions factor
is to be used.
*Refer also to “Restatements / Changes from FY23” section on page 51 for
further detail on freight emissions calculation.
This emission source contains instances of downstream distribution and
transportation of sold products that have been paid for by Synlait and
therefore should be disclosed in category 4. However, as we are unable to
accurately separate these from freight that the customer has paid for at this
time we have disclosed as category 9.
Dairyworks - Data is based on actuals. Sales reports have been used to
calculate the outbound sea and road freight.
Inbound freight
(sea, road, and air)
34Procurement
of ingredients
and packaging
materials
Synlait – Data obtained from Synlait’s ERP system*. The total weights moved
between each site are multiplied by distance between the sites to calculate
TKM. Where mode of transport is missing for deliveries, an assumption has
been provided by procurement based on each supplier.
*Refer also to “Restatements / Changes from FY23” section on page 51 for
further detail on freight emissions calculation.
Dairyworks - Data is based on actuals. Sales reports have been used to
calculate the outbound sea and road freight.
Emissions SourceScopeScope 3
Category
PurposeData Process/Uncertainties
Inter-warehouse freight
(road and sea)
34Movement of
goods between
sites and
warehousing
facilities
Data obtained from Synlait’s ERP system*. The total weights moved between
each site are multiplied by distance between the sites to calculate TKM. It is
assumed all inter-island transfers have travelled by sea and are transported
to and from the nearest port to the site.
*Refer also to “Restatements / Changes from FY23” section on page 51 for
further detail on freight emissions calculation.
Rail freight
(inbound, outbound, and
inter-warehouse)
34Movement of
goods between
Lyttleton port and
Dunsandel
Trip data is obtained from internal recording via an excel query.
Reimbursed car mileage36Staff use of own car
for business travel
Kilometres travelled is calculated from staff mileage claims. Using emission
factor for private car default petrol.
Staff commute37Staff travel from
home to work and
back home
Current financial year FTE head count for each site used to extrapolate on
results from a company-wide survey that collected data on type of vehicle
used, distance travelled to most frequent site, and number of days worked
on-site per week. This company-wide survey asked how employees got
to work or if they worked from home during the ‘survey week’. The ‘survey
week’ refers to a specific week during the financial year that people were
asked to track their commute patterns. The survey was sent to every
employee with an email address at Synlait and Dairyworks as well as
provided opportunities for employees to complete the survey on their own
device during break times. The survey had an 18% response rate with Synlait
employees and 22% for Dairyworks employees. The results from these
populations were then extrapolated to incorporate the total population.
Exclusions include:
1. Staff who indicated they travelled by the Synlait provided bus are
excluded from the staff commute totals as diesel is accounted for
already.
2. Staff who travelled by air transport were excluded as this is captured in
the air travel emission data as it is booked by our travel agent.
3. Staff who travelled by company car as these are included in a separate
category.
Working from home37Employees working
away from a Synlait
or Dairyworks
location
Current financial year FTE head count for Synlait and Dairyworks used to
extrapolate on results from the staff survey described in section above. The
number of work from home or work remotely days from the survey week
were extrapolated out to a 48 week working year then default emission
factor applied.
Taxi36Business travelTaxi emissions are associated to Synlait Corporate and Dairyworks Corporate
using ERP extracted data.
Air travel and hotels36Business travelThe supplier provides a monthly usage report. The report includes travel
distances and class of travel. Hotel information includes location and number
of nights. This report and its associated GHG emission claims have been
independently verified by Toitū Envirocare.
On-farm emissions31Supply of raw milkOn-farm emissions are GHG emissions from the dairy farms that Synlait has a
direct supply agreement with, for the purchase of raw milk. For more details,
please see the dedicated on-farm section on page 50.
Table 10: Emissions Source Data Inclusions, Processes and Uncertainties (continued)
PAGE 49
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Table 11: Emission Exclusions
Emissions SourceScopeScope 3 CategoryBusiness unit
Excluded
Exclusion Details
Purchased goods and
services
31AllGHG emissions from non-milk suppliers (for
example, packaging, raw materials, equipment,
services) are excluded from the inventory due to
data availability, apart from the shipping of these
items which is included
Capital Goods32AllEmissions from capital assets are excluded due
to a lack of data availability, however emissions
from energy consumption for any construction
work or testing of new equipment is included.
Waste to Landfill35ChristchurchSynlait leases two levels of a seven-level building
where all the waste is collected and disposed of
collectively by the building manager. It is therefore
difficult to obtain accurate data.
Refrigerants 38Christchurch Refrigerants have been excluded due to data
access issues. Synlait leases this site from the
owner therefore it is considered scope 3.
Processing of sold
products
310AllOur ingredients are processed by our customers
into a multitude of products. It would be
technically difficult to estimate our share of our
customers’ processing GHG emissions.
Use of sold products311AllWe have carried Life Cycle Analyses for four of our
key products and in all cases GHG emissions from
consumer use represented less than 2.4% of total
emissions therefore considered to be de minimis
End-of-life treatment of
sold products
312AllWe have carried Life Cycle Analyses for four of our
key products and in all cases GHG emissions from
consumer disposal represented less than 0.3% of
total emissions therefore considered de minimis.
Downstream leased
assets
313N/ASynlait does not operate this type of lease
therefore it has been excluded
Franchises314N/ASynlait does not operate franchises therefore it
has been excluded
Investments315N/ASynlait had shareholding investments in the
following entities: Sichuan New Hope Nutritional
Foods, Primary Collaboration New Zealand
Limited and Centre for Climate Action. These
have been excluded as we do access to
sufficient data.
ON-FARM EMISSIONS
Emission factor: The quantification of
GHG emissions is conducted via the
‘Ag:LCA tool’ a life cycle assessment tool
developed by AgResearch specifically for
the agriculture industry that evaluates the
impact of products, processes or services
across their life cycle from production to
end of life (cradle to grave).
Quantification of GHG type: Each source
of GHG data, broken down by type of
GHG, is also extracted from Ag:LCA tool.
This enables Synlait to calculate the
average proportion of CO2, CH4 and
N2O gases within total GHG emissions
across all dairy farms.
Custom Emission Factor(s): Unless
otherwise stated the emission intensity
for farm suppliers included in this report
are an average of the total milk pool.
Custom Emission Factor(s) are not
included within the scope of assurance
covered by Deloitte.
Farms Reported: On-farm emissions are
GHG emissions from the dairy farms that
have an existing supplier contract with
Synlait during the reporting period, for
the supply of raw milk. No farms were
excluded in this reporting period due for
this reason.
Data Process/Uncertainties: On-farm
emissions are gathered from every farm
that Synlait had a supply agreement
with during the season. The resulting
document is called a nutrient budget.
The process for turning a farms nutrient
budget into our on-farm data is as follow:
1. Synlait staff check the data is
complete and accurate.
2. Farm data (nutrient budget) is entered
into OVERSEER® by the farm manager
or their consultant with the help of
Synlait Sustainability Advisors and/
or contracted consultants. For more
information on what is included in
the nutrient budget and feeds into
OVERSEER®, refer to the on-farm
Boundary section below. OVERSEER®
data output will be used for resource
consent compliance purpose in FY24.
3. Simultaneously, in FY24 for the first
time we have engaged AgResearch,
New Zealand’s Leading agri-based
science innovation crown research
institute, to take the input data that
has previously been modelled in
OVERSEER® and model it in their LCA
tool. This change was to ensure the
data aligns with the International Dairy
Federation’s 2022 Carbon Footprint
Standard for the dairy sector. The
scope now includes emissions from
young stock, animals wintered off
farm, deforestation and peat soils.
4. Where data is not available for a farm
(for example, it has ceased to supply
Synlait e.g., data is not available by
our internal cut-off date), data may be
manually entered, or previous years
data used. This was the case for 3%
of farms in FY24. All care is taken to
ensure that all farms with a current
supply agreement are represented in
our on-farm emissions.
5. Exclusions are removed, if relevant,
(see list of exclusions below).
6. Emissions from farms that supply
Synlait, and other processers are
adjusted in accordance with the
percentage of supply they give us.
For example, if a farm supplies 20%
of its milk to Synlait and 80% of its
milk to another processor, Synlait will
take 20% of the total emissions for
this farm.
7. Farms are weighted by milk supplied,
then emissions, and emissions
intensities calculated.
On-farm Data Boundary: The AgResearch
LCA tool calculates emissions based on
inputs.
The following inputs are included to
determine overall tonnes of carbon
equivalent.
• Enteric fermentation
• Dung deposited
• Imported effluent
• Animal dry matter
• Crop residue
• Burning of crop residues
• Nitrogen in excreta deposited
• Nitrogen added
• Nitrogen leached and volatilised
from urine and fertiliser
• Electricity
• Fuel
• Animal transport
• Young stock
• Animals wintered off farm
• Deforestation
• Peat Soils
PAGE 50
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
On-farm emissions calculated via
the Ag:LCA tool follow the equations
and emission factors of the NZ GHG
Inventory, the GWP100 values used is
AR6 (2021).
Where there are no appropriate MfE
factors, United Kingdom DESNZ factors
could be used (published July 2024).
There are no emissions that have utilised
a DESNZ factor during FY24.
BASE YEAR
RECALCULATION POLICY
Base year data may need to be revised
when material changes occur and have
an impact on calculated emissions.
Our policy is to recalculate base
year data and indicate in a footnote
any recalculation or re-statement of
previously disclosed data, in any of the
following situations:
• Changes are estimated to represent
more than 5% of Scope 1, 2 or 3
emissions: or
• There are significant changes to
our reporting or organisational
boundaries, including the
outsourcing or insourcing of emitting
activities, mergers, acquisitions, or
divestures: or
• There are significant changes in our
calculation: or
• We discover significant errors,
or cumulative errors that are
collectively significant, in our
previous disclosures: and
• Annually for our on-farm GHG data.
Past disclosures can be found in our
previous GHG Inventory reports at
synlait.com/sustainability.
OTHER EMISSIONS –
HFC, PFC, NF₃ AND SF₆
Air conditioning units and chillers contain
HFCs. The Dunsandel site has reported
top-ups of gas for this reporting period,
HFC for the top up has been included in
the inventory. Air conditioning is excluded
from the inventory for the Christchurch
office only, due to data availability. There
are no operations that use PFC, NF₃ or SF₆.
OTHER EMISSIONS –
BIOMASS
3078 tonnes of wood pellets were
combusted during FY24. The CH4
(40tCO₂e) and N2O (49tCO₂e) emissions
have been included in the inventory.
The biogenic carbon (not included
in the inventory) associated with the
combustion of biomass is 5232t CO₂.
RESTATEMENTS
The following emission sources have been
restated since our last GHG inventory
(FY23):
• On-Farm Emissions: Base year
emissions have been restated this
year due to a change in calculation
methodology which impacts the
calculation of our on-farm Scope 3
emissions only. See our On-Farm
Emissions data process and Base
Year Recalculation Policy for more
details. For more information on
emission data that were previously
reported please refer to copies of
previous GHG inventories.
• Rental Car Emissions: It was
discovered during the drafting of
this inventory that the emissions
associated with rental car use in
FY23 was unintentionally excluded
from table 2. This has now been
rectified and will result in a change
in the total GHG emission number for
FY23 – an addition of 42 tonnes.
• Freight methodology change: There
is a change in calculation method
from FY23 for all freight categories,
which utilised a spend based
approach in the prior reporting year
due to data being unavailable from
the ERP system. This was a once off
event. For more information on the
FY23 method and assumptions refer
to the FY23 inventory report. Note
this calculation methodology applied
this year is consistent with base-year
FY18 and comparative years FY19-
FY22.
GHG INFORMATION
MANAGEMENT
AND MONITORING
PROCEDURES
GHG emissions are measured annually
and compared against the base year.
Each source of GHG emissions has an
Excel spreadsheet which includes raw
data and calculated GHG emissions.
A master spreadsheet performs the
consolidation of all GHG emissions at
group level.
This document provides an overview of
boundaries and scopes, data collection
processes and GHG measurement
methodologies for each emission
source and is updated each year. More
details are available in each of the GHG
emissions spreadsheets.
Synlait’s GHG Emissions Inventory Report,
associated documents and spreadsheets
are prepared by the sustainability team.
They are then reviewed internally and by
external third parties as required.
ON-FARM EMISSIONS
(CONTINUED)
Exclusions:
• New farmer suppliers who come
on after 31 May of the reporting
year are excluded, as they would
have only supplied milk to Synlait
for one month or less prior to the
end of financial year. There were no
instances of exclusion due to this
reason in FY24.
• Emissions from agricultural products
or dairy products purchased from
other suppliers for processing (with
whom there is no direct supply
agreement) ) are also excluded.
Although the materiality of these
emissions have not been assessed.
• Rearing beef animals as this is not
relevant to Synlait’s operations.
EMISSIONS FACTORS
Emissions factors released by the New
Zealand Ministry for the Environment
(MfE) (published May 2024) are used
where available for all emissions except:
• Christchurch office electricity - As
the only available data is in invoice
form from the building manager the
Market Economics Limited, 2023,
Consumption Emissions Modelling,
report prepared for Auckland Council
(March 2023), factor has been used.
• R448a refrigerant – No emission
factor was available in either MfE
or DESNZ emission factor list so
the manufacturers global warming
potential (GWP) figure was used.
PAGE 51
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
6. GLOSSARY
While all care has been taken to remove acronyms and abbreviations some have been included in this report for length. Any
acronyms and abbreviations used or other concepts which may need explanation have been included in table 12.
TermDefinitionAdditional Information (if required)
APIApplication Programming InterfaceAn API establishes an online connection between a data provider and an
end-user
Biogenic CO₂The carbon dioxide (CO₂) resulting from the
decomposition, digestion or combustion of biomass
Produced because of biomass (wood pellet) energy to power boilers at
Synlait
CH₄Methane-
CO₂Carbon Dioxide-
DAFDissolved Air FlotationDAF refers to the treatment of dairy wastewater using Dissolved Air
Flotation. The solids that remain after the wastewater has been treated are
then transported to their disposal location.
DESNZUnited Kingdom Department for Energy Security and
Net Zero
Current government organisation responsible for emission factors
DWDairyworks-
Emissions-Any reference to ‘emissions’ in this report means greenhouse gas emissions.
FPCMFat and Protein Corrected MilkCan also be known as Energy Corrected Milk (ECM), is the calculation of
standardising milk production for comparison between cows
FYFinancial Year This inventory is prepared for financial year 2024 also known as FY24
GHGGreenhouse Gas Emissions-
IDFInternational Dairy FederationInternational Dairy Federation’s 2022 Carbon Footprint Standard for the
dairy sector. A standard that connects and aligns the whole dairy value chain
around sustainability criteria.
LCALifecycle Assessment The systematic analysis of the potential environmental impacts of products
or services during their entire life cycle.
LPGLiquid Petroleum GasFuel for forklifts in Dunsandel
MfENew Zealand Ministry for the EnvironmentCurrent government organisation responsible for emission factors in New
Zealand
N₂ONitrous Oxide -
RPDRichard Pearce DriveSynlait site at 89 Richard Pearce Drive
SYNSynlait Reporting Entity
TFCTalbot Forest CheeseDairyworks site that is not currently in operation
TKMTonnes per Kilometre-
Table 12: Glossary of Terms
7. SIGN OFF
Person Responsible: George Adams, Board ChairFrequency of Report:Annual
Dated:25 November 2024 Base Year:2017-2018
PAGE 52
GHG EMISSIONS INVENTORY
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
INDEPENDENT ASSURANCE REPORT TO THE BOARD OF
DIRECTORS OF SYNLAIT MILK LIMITED
Report on Greenhouse Gas Emissions Inventory Report
We have undertaken a reasonable assurance engagement in relation to Scope 1 and 2 emissions and a limited assurance
engagement in relation to Scope 3 emissions within the Greenhouse Gas Inventory Report (the ‘Inventory Report’) of
Synlait Milk Limited (the ‘Company’) and its subsidiaries (the ‘Group’) for the year ended 31 July 2024, comprising the
Emissions Inventory and the explanatory notes set out on pages 42 to 52.
The Inventory Report provides information about the greenhouse gas emissions of the Group for the year ended 31 July
2024 and is based on historical information. This information is stated in accordance with the requirements of International
Standard ISO 14064-1 Greenhouse gases – Part 1: Specification with guidance at the organisation level for quantification
and reporting of greenhouse gas emissions and removals (‘ISO 14064-1:2018’) and the Greenhouse Gas Protocol: A
Corporate Accounting and Reporting Standard (2004) (the ‘GHG Protocol’).
Our report does not cover any forward-looking statements, hyperlinked documents, external references or custom
emission factors referenced in table 6 footnote 6.
Reasonable Assurance Opinion for Scope 1 and 2 Emissions
In our opinion, the Scope 1 and 2 emissions of the Inventory Report of the Group for the year ended 31 July 2024 have
been prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018 and the GHG Protocol.
Limited Assurance Conclusion for Scope 3 Emissions
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that
causes us to believe that the Group’s Scope 3 emissions within the Inventory Report for the year ended 31 July 2024 are
not prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018 and the GHG Protocol.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Basis for Reasonable Assurance Opinion for Scope 1 and 2 Emissions and Limited Assurance Conclusion for Scope 3
Emissions
We conducted our engagement in accordance with International Standard on Assurance Engagements (New Zealand)
3410: Assurance Engagements on Greenhouse Gas Statements (‘ISAE (NZ) 3410’) issued by the New Zealand Auditing and
Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our reasonable
assurance opinion for Scope 1 and 2 Emissions and limited assurance conclusion for Scope 3 Emissions.
Board of Directors’ Responsibility
The Board of Directors are responsible for the preparation of the Scope 1, 2 and 3 emissions within the Inventory Report,
in accordance with ISO 14064-1:2018 and the GHG Protocol. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation of an Inventory Report that is free from material misstatement,
whether due to fraud or error.
Our Independence and Quality Management
We have complied with the independence and other relevant ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand)
(‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on fundamental principles
of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
Our firm carries out other assignments for the Group in the areas of taxation compliance, climate risk assessment advisory,
financial and reporting advisory and consulting support services. Other than in our capacity as assurance provider and the
provision of these services, we have no relationship with or interests in the Company or any of its subsidiaries.
The firm applies Professional and Ethical Standard 3: Quality Management for Firms that Perform Audits or Reviews of
Financial Statements, or Other Assurance or Related Services Engagements, which requires the firm to design, implement
and operate a system of quality management including policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Assurance Practitioner’s Responsibility
Our responsibility is to express a reasonable assurance opinion on Scope 1 and 2 emissions and a limited assurance
conclusion on Scope 3 emissions in the Inventory Report based on the procedures we have performed and the evidence
we have obtained. We conducted our reasonable and limited assurance engagement in accordance with ISAE (NZ) 3410,
issued by the New Zealand Auditing and Assurance Standards Board. That standard requires that we plan and perform
the engagement to obtain reasonable assurance that Scope 1 and 2 emissions within the Inventory Report, and limited
assurance that Scope 3 emissions within the Inventory Report are free from material misstatement, respectively.
Reasonable assurance for Scope 1 and 2 emissions
A reasonable assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves performing procedures to
obtain evidence about the quantification of emissions and related information in the Inventory Report. The nature, timing
and extent of procedures selected depend on the assurance practitioner’s judgement, including the assessment of the
risks of material misstatement, whether due to fraud or error, in the Inventory Report. In making those risk assessments,
we considered internal control relevant to the Group’s preparation of the Inventory Report. A reasonable assurance
engagement also includes:
• Assessing the suitability in the circumstances of the Group’s use of ISO 14064-1:2018 and the GHG Protocol as the
basis for preparing the Inventory Report;
• Evaluated the appropriateness of quantification methods and reporting policies used, and the reasonableness of
estimates made by the Group; and
• Evaluated the overall presentation of the Inventory Report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our reasonable
assurance opinion in respect of the Scope 1 and 2 emissions.
PAGE 53
CLIMATE-RELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Limited assurance for Scope 3 emissions
A limited assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves assessing the suitability in
the circumstances of the Group’s use of ISO 14064-1:2018 and the GHG Protocol as the basis for the preparation of
the inventory report, assessing the risks of material misstatement of the inventory report whether due to fraud or error,
responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the
inventory report. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement
in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures
performed in response to the assessed risks.
The procedures we performed were based on our professional judgement and included enquiries, observations of
processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification
methods and reporting policies, and agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures listed above we:
• Through enquiries, obtained an understanding of the Group’s control environment and information systems relevant to
emissions quantification and reporting, but did not evaluate the design of particular control activities, obtain evidence
about their implementation or test their operating effectiveness.
• Evaluated whether the Group’s methods for developing estimates are appropriate and had been consistently applied.
However, our procedures did not include testing the data on which the estimates are based or separately developing
our own estimates against which to evaluate the Group’s estimates.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable
assurance engagement in relation to Scope 3 Emissions. Accordingly, we do not express a reasonable assurance opinion
about whether the Group’s Scope 3 emissions within the inventory report has been prepared, in all material respects, in
accordance with the ISO 14064-1:2018 and the GHG Protocol.
Inherent Limitations Scope 1, 2 and 3 emissions
Non-financial information, such as that included in the Group’s Inventory Report, is subject to more inherent limitations
than financial information, given both its nature and the methods used and assumptions applied in determining, calculating
and sampling or estimating such information. Specifically, GHG quantification is subject to inherent uncertainty because
of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of
different gases.
As the procedures performed for this engagement are not performed continuously throughout the relevant period and the
procedures performed in respect of the Group’s compliance with ISO 14064-1:2018 and the GHG Protocol are undertaken
on a test basis, our assurance engagement cannot be relied on to detect all instances where the Group may not have
complied with the ISO 14064-1:2018 and the GHG Protocol. Because of these inherent limitations, it is possible that fraud,
error or non- compliance may occur and not be detected.
Scope 3 emissions
For the Scope 3 emissions, we note that a limited assurance engagement is not designed to detect all instances of non-
compliance with the ISO 14064-1:2018 and the GHG Protocol, as it generally comprises making enquires, primarily of the
responsible party, and applying analytical and other review procedures.
In addition, Scope 3 emissions relating to on-farm emissions (especially fertiliser and methane production for dairy cows)
are inherently uncertain due to the fact that they arise from natural processes which may vary depending on contributing
factors.
Use of Report
Our assurance report is made solely to the directors of the Group in accordance with the terms of our engagement.
Our work has been undertaken so that we might state to the directors those matters we have been engaged to state
in this assurance report and for no other purpose. To the fullest extent permitted by law, we accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without limitation,
liability for negligence in relation to the opinion expressed in this report.
Chartered Accountants
25 November 2024
Christchurch, New Zealand
Matters Relating to the Electronic Presentation of the Information
This assurance report relates to the information of Synlait Milk Limited for the year ended 31 July 2024 included on Group’s website. Synlait Milk Limited is responsible
for the maintenance and integrity of the Group’s website. We have not been engaged to report on the integrity of the Group’s website. We accept no responsibility for
any changes that may have occurred to the information since they were initially presented on the website.
The assurance report refers only to the information named above. It does not provide an opinion on any other information which may have been hyperlinked to/from
this information. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy
of the information and related assurance report to confirm the information included in the information presented on this website.
PAGE 54
CLIMATEāRELATED DISCLOSURES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
APPENDICES
INTEGRATED CLIMATE REPORT 2024PAGE 55
APPENDICES
SYNLAIT MILK LIMITED
Description of metricTargetUnitFY18FY19FY20FY21FY22FY23FY24
Total Energy ConsumptionMWh 347,145377,086446,541436,365428,104420,391297,858
Energy per Tonne of Product kWh2,4952,4252,3132,0312,0762,0771,611
Total Coal ConsumptionMT54,28756,80756,88956,46753,86141,94935,591
Coal Consumption per Tonne of Product MT0.390.370.290.260.260.21 0.19
Total Waste (Landfilled + Recycled) Produced MT4,2965,2498,2426,7447,0997,3437,827
Water Recovered and Reused in Manufacturing Operations (Pokeno Only)%--17%27%19%14%
Off-Farm Water Consumption Absolute (Including Synlait Farms)m31,927,4842,232,8692,823,4542,636,2474,830,9884,213,045 4,859,569
Total Off-Farm Water Consumption (Excluding Synlait Farms)m31,927,4842,232,8692,823,4542,636,2472,678,3092,925,593 3,103,569
Total Waste (Landfilled + Recycled) Per Tonne of ProductKg / MT Prod313443313436 42
Total Landfill Produced MT-----2,162 1,423
Total Recycling Produced MT-----5,181 6,404
B Corp
TM
Points - Group105 by 2029#-----89.589.5
B Corp
TM
Points - Dairyworks-#-----56.656.6
B Corp
TM
Points - Synlait-#--80.480.480.497.797.7
Engagement Ratio - Synlait4.20:1#3.75:13.58:15.20:15.30:14.90:15.70:14.02:1
Engagement Ratio - Dairyworks 4.00:1#------3.42:1
Total Employees - All-#-----1417 1,423
Total Employees - Synlait-#-----1149 1,133
Total Employees - Dairyworks-#-----268290
Supplier Expenditure with New Zealand Registered Companies%86.30%88.40%86.80%--86.80%85.50%
Employee Turnover Rate - Synlait16%%18%10%13%14%23%18%16%
Employee Turnover Rate - Dairyworks%---48%34%28%15%
Women in Senior Leadership Team (ELT) - Synlait %14%14%25%31%27%30%22%
Employee Fatalities 0#0000000
APPENDIX 1: KEY SUSTAINABILITY METRICS
PAGE 56
APPENDICES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
APPENDIX 2: CLIMATE-RELATED DISCLOSURE MATRIXAPPENDIX 3: CLIMATE-RELATED DISCLOSURE MATRIX
SectionLocation in ReportReferenceDisclosure Requirements
NZ CS 1.7(a)Identity of governance body
NZ CS 1.7(b)Governance body’s oversight
NZ CS 1.7(c)Management’s roles
NZ CS 1.8(a)Informing the governance body
NZ CS 1.8(b)Governance body’s skills and competence
NZ CS 1.8(c)Implementation of the entity’s strategy
NZ CS 1.8(d)Setting, monitoring and overseeing metrics and targets and remuneration policies
NZ CS 1.9(a)Management-level responsibility and how they engage with the governance body
NZ CS 1.9(b)Management-level organisational structure
NZ CS 1.9(c)Management-level information, decisions and monitoring
NZ CS 1.11(a)Current climate-related impacts
NZ CS 1.11(b)Description of scenario analysis
NZ CS 1.11(c)Climate-related risks and opportunities over the short, medium, and long term
NZ CS 1.11(d)Anticipated impacts of climate-related risks and opportunities
NZ CS 1.11(e)How Synlait will position itself as the global and domestic economy transitions towards
a low-emissions, climate-resilient future state
NZ CS 1.12(a)Current physical and transition impacts
NZ CS 1.12(b) (c)Current financial impacts of physical and transition impacts
NZ CS 1.13Scenario analysis
NZ CS 1.14(a)Definition of short, medium and long term and how the definitions are linked to its
strategic planning horizons and capital deployment plans
NZ CS 1.14(b)Classification of climate-related risks and opportunities
NZ CS 1.14 (c)How climate-related risks and opportunities serve as an input to its internal capital
deployment and funding decision-making processes
NZ CS 1.15 (a)Anticipated impacts
NZ CS 1.15 (b)Anticipated financial impacts
NZ CS 1.15 (c) 9d)Time horizons
NZ CS 1.16(a)Business model and strategy
NZ CS 1.16(b)Transition plan
NZ CS 1.16(c)Transition plan alignment with internal capital deployment and funding
decision-making processes
NZ CS 1.18(a)Identifying, assessing and managing climate-related risks
NZ CS 1.18(b)Integrating climate-related risks into risk management processes
NZ CS 1.19(a)Tools and methods
NZ CS 1.19(b)Short, medium and long term time horizons
NZ CS 1.19(c)Value chain exclusions
NZ CS 1.19(d)Frequency of assessment
NZ CS 1.19(e)Prioritising climate-related risks
NZ CS 1.21(a)Metrics
NZ CS 1.21(b)Industry-based metrics
NZ CS 1.21(c)Other KPI
NZ CS 1.21(d)Targets
NZ CS 1.22 (a)(i) - (iii)GHG emissions (Gross)
NZ CS 1.22 (b)GHG emissions (Intensity)
NZ CS 1.22 (c)Transition risks
NZ CS 1.22 (d)Physical risks
NZ CS 2
Reference
Adoption ProvisionAdoption Provision
Applied
Additional Disclosure Information
Adoption provision 1: Current financial impacts
10Paragraph 12(b) of NZ CS 1 requires disclosure of the current financial
impacts of an entity's physical and transition impacts identified in
paragraph 12(a).
Ye s The financial cost anticipated from
these impacts is currently being
calculated and understood – we
plan to provide an update in our
FY25 disclosure
11If an entity elects to use the adoption provision in paragraph 10,
then there is also an exemption from paragraph 12(c) of NZ CS 1
(requirement to disclose an exemption of why an entity is unable to
disclose quantitative information for paragraph 12(b) if that is the case).
Ye s-
Adoption provision 2: Anticipated financial impacts
12Paragraph 15(b) of NZ CS 1 requires disclosure of the anticipated
financial impacts of climate-related risks and opportunities reasonably
expected by the entity.
Ye s The financial cost anticipated from
these impacts is currently being
calculated and understood – we
plan to provide an update in our
FY25 disclosure
13If an entity elects to use the adoption provision in paragraph 12,
then there is also an exemption from paragraph 15(c) of NZ CS 1
(requirement to provide a description of the time horizons over
which the anticipated financial impacts of climate-related risks and
opportunities could reasonably be expected to occur).
Ye sThe financial cost anticipated from
these impacts is currently being
calculated and understood – we
plan to provide an update in our
FY25 disclosure
14If an entity elects to use the adoption provision in paragraph 12,
then there is also an exemption from paragraph 15(d) of NZ CS 1
(requirement to provide an explanation of why an entity is unable to
disclose quantitative information for paragraph 15(b), if that is the case).
Ye s-
Adoption provision 3: Transition planning
15Paragraphs 16(b) and 16(c) of NZ CS 1 require disclosure of the
transition plan aspects of the strategy and the extent to which they are
aligned with internal capital deployment and funding decision-making
processes.
NoTransition plan published on
page 34
Adoption provision 4: Scope 3 GHG emissions
17Paragraph 22(a)(ii) of NZ CS 1 requires disclosure of greenhouse gas
(GHG) emissions (gross emissions in metric tonnes of carbon dioxide
equivalent (CO2e) classified as scope 3.
This may be applied to all its scope 3 GHG emissions sources, or a
selected subset of its scope 3 GHG emissions sources.
NoAll in boundary scope 3 emissions
provided
Adoption provision 5: Comparatives for Scope 3 GHG emissions
18Paragraph 40 of NZ CS 3 requires disclosure of comparative
information for the immediately preceding two reporting periods for
each metric disclosed in the current reporting period.
NoComparative information provided
Adoption provision 6: Comparatives for metrics
20Paragraph 40 of NZ CS 3 requires disclosure of comparative
information for the immediately preceding two reporting periods for
each metric disclosed in the current reporting period.
NoComparative information provided
Adoption provision 7: Analysis of trends
22Paragraph 42 of NZ CS 3 requires an analysis of the main trends
evident from a comparison of each metric from previous reporting
periods to the current reporting period to be disclosed.
NoEvolution from FY23 provided
Governance
Strategy
Risk Management
Metrics and Targets
Pages 24 to 26
Pages 27 to 34
Pages 35 to 37
Pages 38 to 41
PAGE 57
APPENDICES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
APPENDIX 4: FULL SCENARIO NARRATIVES
Political stability and strong policy frameworks reward investment into low carbon
technology, providing a stable investment environment. Government establishes a clear
and fixed pathway for ETS allocation reductions and does not intervene thereafter,
resulting in a steadily rising carbon price.
Financial market regulation makes it difficult for capital to be allocated to high emissions,
low resilience practices and enterprises. This triggers widespread investment into low
carbon and climate resilient farming technologies and practices, indicating that economic
growth is steadily decoupling from fossil fuels. Strong government leadership and a
robust policy framework ensure optimal allocation of land use and water consents,
balancing competing demand for housing, food security, energy security and carbon
sequestration. Carbon border adjustment mechanisms have been introduced, further
ORDERLY – PRESENT TO 2030
• Network for Greening the Financial System (NGFS) -
Net zero by 2050
• Shared socioeconomic pathway (SSP) 1 - 1.9, 1.4 ̊C
• Climate Change Commision - Tailwinds
DISORDERLY – 2030 – 2050
• NGFS - Delayed Transition (1.8 ̊C)
• SSP 1 - 2.6, 1.8 ̊C
• NIWA RCP 2.6
• Climate Change Commision - Headwinds
HOT HOUSE WORLD – 2050 – 2100
• NGFS - Current Policies - Hothouse World (3 ̊C+)
• IPCC SSP 5 - 28.5, 4.4 ̊C
• NIWA RCP 8.5
• Climate Change Commision - Current Policies
Policy
ambition
Policy
ambition
Policy
ambition
Policy
reaction
Policy
reaction
Policy
reaction
Technology
change
Technology
change
Technology
change
CDR
(CO₂ removal)
CDR
(CO₂ removal)
CDR
(CO₂ removal)
Regional policy
variation
Regional policy
variation
Regional policy
variation
1.4 ̊C
1.6 ̊C
3 ̊C+
Immediate and
smooth
Delayed
None - current
policies
Fast
change
Slow/fast
change
Slow
change
Medium-high
use
Low-medium
use
Low use
Medium
variation
High
variation
Low
variation
Lobbying by farmers and public opinion creates division among political parties,
indecisive leadership and a weaker policy framework. Political division over climate
action results in a disconnect between regional government agencies, hampering efforts
to take a joined-up approach to land use planning and water allocation.
The introduction of carbon border adjustment mechanisms has been delayed, and
persistent global inflation and increasing food prices result in a softening of ESG
requirements in New Zealand’s Free Trade Agreements, reducing incentives to shift to
sustainable farming practices. Fragmented research and development incentives and
fiscal policies result in lower-than-planned adoption of sustainable farming practices. The
Emissions Trading Scheme continues to incentivise conversion of farmland to carbon
forests. Intermittent government intervention in the Emissions Trading Scheme results
in a volatile and relatively low carbon price. Financial market regulation is in place to
Policies to address emissions and climate change have remained largely unchanged
since the 2020s, the result being that emissions reductions have been missed and
physical risk impacts are extreme. Resource scarcity has become acute, due to frequent
drought, extreme weather events, wildfire and flood events. Frequent supply shocks
render the milk pool vulnerable to price volatility.
By 2040, unregulated and uncontrolled competition for land begins to escalate,
favouring the best economic return for the land with little regard for sustainability.
Large tranches of land are being purchased by large corporates for economic gain
resulting in industrialised farming. Food safety quality standards are relaxed due
to frequent climate-related supply shocks. The regulatory framework is oriented
to support trade for nutrient-dense foods such as dairy. Carbon border adjustment
mechanisms have been dismantled to allow free flow of goods across borders,
encourage capital flows to low emissions activities; however, low monitoring and
compliance enables farmers to access discounted finance for nominal sustainable
farming improvements.
New Zealand’s international commitment to meeting its emissions target prompts
the government to adopt a penalties-based approach to regulation of the agricultural
sector, leveraging the Resource Management Act. Competing land use demand
for housing, agriculture and energy, coupled with delays in addressing agricultural
sector emissions, result in escalating tensions between urban and rural communities.
Litigation is beginning to occur, forcing farmers and developers to remediate
environmental damage to land and waterways. Around 2040, a rapid and disorderly
adoption of low emissions farming technologies and practices drives up prices,
resulting in a flattening of the milk curve, impacting farmers’ bottom line.
with the most powerful economies and the highest bidders securing access to
scarce food resources.
By 2050 the ETS scheme has collapsed. No government regulation exists to
manage capital allocation, and therefore capital flows with little to no oversight of
environmental, social, governance or emissions reduction performance. Consumers
are forced to make decisions based solely on price without consideration for wider
ESG impacts. Open borders and a constant flow of climate refugees provides
abundant cheap labour. This provides little incentive for farm owners to improve
labour rights, work conditions, nor to improve land stewardship and animal
husbandry. High prices, poor product quality, worsening environmental degradation,
land scarcity and water scarcity, generate a public backlash against the agricultural
sector; industrial farm owners are painted as environmental criminals.
incentivising decarbonisation of the agricultural sector, and international trade
agreements carry market exclusion for high emissions goods and services.
There is widespread social consensus on the need for climate action. Consumer
demand for sustainable dairy produce is high, and tolerance for unsustainable
farming and business practice is low. Litigation results in compensation payouts,
and obligations on farmers and corporate entities to remediate environmental
damage to land and waterways. Consumers in export markets favour New Zealand’s
clean, green credentials, and farmers benefit from price premiums. There is a good
understanding and education among the public about the role of agriculture in New
Zealand’s economy, and there is widespread acknowledgement and support of the
progress farmers are making.
PAGE 58
APPENDICES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
TermDefinition
A & RBoard subcommittee - Audit and Risk Committee.
Adaptive capacityAdjustment to actual or expected climate change and its effects. In human systems, adaptation seeks to
moderate or avoid harm, or to take opportunities. Intervention may facilitate adjustment (IPCC, 2014).
APIApplication Programming Interface.
Climate riskThe interplay between hazards, exposure and vulnerability (IPCC, 2014).
DAFDissolved Air Flotation.
DESNZUnited Kingdom Department for Energy Security and Net Zero.
DWDairyworks.
ExposureLack of protection, where people, livelihoods, species or ecosystems, environmental functions, operations
and resources, infrastructure or economic, social or cultural assets in places and settings could be adversely
affected by a change in external stresses that a system is exposed to. In the context of climate change, these
are normally specific climate and biophysical variables (IPCC, 2007).
FPCMFat and Protein Corrected Milk.
GCM annual timeseriesTime horizons are estimated as annual time series from 2020 to 2100 for monthly average and maximum
wind speed and as annual timeseries from 2020 to 2099 for maximum 1-day and maximum 5-day
precipitation amounts.
GCM single yearsFor storm surge there are two future periods, namely ‘2050’ that represents the 2046 to 2055 period and
‘2100’ that represents the 2090 to 2100 period. Time horizons for cyclones are estimated for when each
scenario reaches a 2-degree warming state, which is around 2050 for RCP4.5 and around 2040 for RCP8.5.
GHGGreenhouse Gas Emissions.
HazardThe potential occurrence of a natural or human-induced physical event or trend or physical impact that
may cause loss of life, injury, or other health impacts, as well as damage and loss to property, infrastructure,
livelihoods, service provision, ecosystems and environmental resources (IPCC, 2014).
IPCCIntergovernmental Panel on Climate Change - A scientific and intergovernmental body under the auspices of
the United Nations.
LPGLiquid Petroleum Gas.
MfENew Zealand Ministry for the Environment.
NZ CSAotearoa New Zealand Climate Standards.
Paris Agreement 2016An agreement within the United Nations Framework Convention on Climate Change, dealing with
greenhouse-gas-emissions mitigation, adaptation, and finance, signed in 2016.
PEGBoard subcommittee - People, Environment and Governance Committee.
RCM annual timeseriesTime horizons for all metrics are estimated as annual timeseries from 2020 to 2100.
RCP Representative Concentration Pathway for Emissions - Modelled trajectories of global anthropogenic
emissions over the 21
st
century are termed emission pathways. Scenarios that include time series of
emissions and concentrations of the full suite of greenhouse gases (GHGs) and aerosols and chemically
active gases, as well as land use/land cover. The word representative signifies that each RCP provides only
one of many possible scenarios that would lead to the specific radiative forcing characteristics. The term
pathway emphasizes the fact that not only the long-term concentration levels but also the trajectory taken
over time to reach that outcome are of interest. RCPs were used to develop climate projections in CMIP5.
RCP2.6: One pathway where radiative forcing peaks at approximately 3 W m-2 and then declines to be
limited at 2.6 W m-2 in 2100 (the corresponding Extended Concentration Pathway, or ECP, has constant
emissions after 2100). RCP4.5 and RCP6.0: Two intermediate stabilization pathways in which radiative
forcing is limited at approximately 4.5 W m-2 and 6.0 W m-2 in 2100 (the corresponding ECPs have constant
concentrations after 2150). RCP8.5: One high pathway which leads to >8.5 W m-2 in 2100 (the corresponding
ECP has constant emissions after 2100 until 2150 and constant concentrations after 2250).
TermDefinition
Risk AreaSignificant operational focus areas under which risks are categorized.
Risk ReceptorThe person, asset or service impacted by the presenting climate hazard.
Risk StatementDescribes the consequence of the presenting climate hazard on the receptor.
Risk TypeHigh level risk impact categories.
RPDRichard Pearce Drive.
Sea level rise decadal
timeseries
Time horizons are estimated as median 10-year periods relative to the (1995-2014) baseline. The 10-year
projections are provided around a central year, such that the projection for ‘2030’ represents the 2025 to
2034 period. The historical baseline period is the final ten years of the historical period (1995-2014) simulated
by all climate models before the SSPs are applied from 2015 onwards. For example, the baseline period
‘2010’ represents the 2005 to 2014 period.
SensitivityThe degree to which a system is affected, either adversely or beneficially, by climate-related stimuli (IPCC,
2014).
SSPShared socio-economic pathway - Shared Socio-economic Pathways were developed to complement the
RCPs with varying socio-economic challenges to adaptation and mitigation. Based on five narratives, the
SSPs describe alternative socio-economic futures in the absence of climate policy intervention, comprising
sustainable development (SSP1), regional rivalry (SSP3), in equality (SSP4), fossil–fuelled development (SSP5)
and middle-of-the-road development (SSP2). The combination of SSP-based socio-economic scenarios and
Representative Concentration Pathway (RCP)-based climate projections provides an integrative frame for
climate impactand policy analysis.
SYNSynlait.
TFCTalbot Forest Cheese.
Value chainThe full range of activities, resources and relationships related to an entity’s business model and the external
environment in which it operates. A value chain encompasses the activities, resources and relationships an
entity uses and relies on to create its products or operations from conception to delivery, consumption and
end of life. Relevant activities, resources and relationships include those in an entity’s operations, such as
human resource; those along its supply, marketing and distribution channels, such as materials and service
sourcing and product and service sale and delivery; and the financing, geographical, geopolitical and
regulatory environments in which an entity operates. (XRB NZCS1).
VulnerabilityThe propensity or predisposition to be adversely affected. Encompasses a variety of concepts including
sensitivity / susceptibility to harm, and lack of capacity to cope and adapt (IPCC, 2014).
XRBExternal Reporting Board.
APPENDIX 5: GLOSSARY OF TERMS
PAGE 59
APPENDICES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
APPENDIX 6: SYNLAIT STRATEGY FY24 TO FY28
CATEGORIES
PRODUCTS
CHANNELS
BUSINESS TYPES
Advanced
Nutrition
Foodservice
Ingredients
RIGHT TO PLAY
STRONG FOUNDATIONS
AMBITION
TO FY 28
B Corp™
Score of 105
Farmer Net
Promoter Score
Top Quartile
IWS Level 2
Customer Net
Promoter Score
Top Quartile
Staff Engagement
Top Quartile
Return on
Capital 15%
Food Safety
and Quality
Regulatory
Know-How
Highly Utilised,
Efficient Plants
Advanced Nutrition
and Foodservice
Know-How
Integrated
Value Chain
Sustainability
Credentials
Infant
Nutrition
Adult
Nutrition
Commodity
Powders
Advanced
Ingredients
Foodservice
Cream
AMF and Butter
(TBC)
Cream Cheese
(TBC)
Ambition is what Synlait’s success looks like in five years.
There are three metrics relating to farmer, staff, and
customer engagement, along with precise operations,
financial, and sustainability metrics.
Right to Play is Synlait’s core capability; some might refer to
this as our tickets to the game.
• Food Safety and Quality – meeting high-quality
standards is non-negotiable. We must meet
accreditation standards in New Zealand and each
country we export to.
• Highly Utilised and Efficient Plants – our modern
assets must run efficiently and effectively to achieve
an acceptable (or better) return on capital (one of our
ambitions).
• Advanced Nutrition and Foodservice Know-How –
we are experts in these channels across all areas of
Synlait, from manufacturing and product innovation to
customer relationships.
• Integrated Value Chain – our supply chain must be
strong from farm to customer.
• Regulatory Know-How – we understand and align
to regulations in New Zealand and the countries we
export to.
• Sustainability Credentials – our B Corp™ accreditation
demonstrates our commitment to strong sustainability
credentials in all that we do.
Channels (or business units) are the
areas Synlait is focusing its efforts.
• Advanced Nutrition –
formulated powers in bulk
or consumer-ready format,
formulated beverages, and
speciality nutritional ingredients
that our customers sell to
consumers.
• Foodservice – products such as
functional UHT cream are sold
to customers who turn them into
finished products for out-of-
home consumption at bakeries,
cafes, beverage chains, etc.
• Ingredients – bulk milk powder
and other bulk products sold to
manufacturers, who use them in
a range of applications.
Categories are the products Synlait manufactures within its channels
(business units).
• Infant and Adult Nutrition – infant formula, paediatric or adult nutrition
products.
• Advanced Ingredients – lactoferrin products.
• Foodservice Cream – UHT cream.
• Butter and Cream Cheese are TBC. These opportunities are currently being
considered.
• Commodity Powders – whole milk powder, skim milk powder, etc.
PAGE 60
APPENDICES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
APPENDIX 6: SYNLAIT STRATEGY FY24 TO FY28 (CONTINUED)
KEY ENABLERS
OF EXECUTION
GEOGRAPHIES
GROWTH MARKETS
Singapore
Malaysia
Thailand
New Zealand
Australia
Greater China
Philippines
Vietnam
Indonesia
RIGHT TO WIN
COMPETITIVE ADVANTAGE MODELS
Right to Win is how Synlait differentiates itself from its competitors. We must have an operating model with our farmer suppliers
and customers that sets us apart from our competitors.
PURPOSE
AND CULTURE
MADE WITH
BETTER MILK
COMPETITIVE, TRANSPARENT
FARMGATE MILK PRICE
FAVOURABLE
ADVANCE RATE
AND NO SHARES
DIGITAL TOOLS
AND ON-FARM
SUPPORT
INDUSTRY AND
COMMUNITY
ENGAGEMENT
SPECIALTY
MILK PREMIUMS
LEAD WITH
PRIDE™
1
5
3
7
2
6
4
8
FARMER SUPPLIERS
PURPOSE
AND CULTURE
FOOD SAFETY, QUALITY,
TRACEABILITY AND SURETY OF SUPPLY
NEW ZEALAND
PROVENANCE AND
MARKET ACCESS
BASIC
PRODUCT
PORTFOLIO
ADVANCED
PRODUCT
PORTFOLIO
FLEXIBLE WORLD CLASS
MANUFACTURING FACILITIES
1
5
3
2
4
9
B CORP™ AND
MADE WITH
BETTER
MILK
8
DEEP CHANNEL
EXPERTISE
7
CUSTOMERS
BEST IN CLASS
CUSTOMER ENGAGEMENT
6
On-Farm
Excellence
Systems, Tools
and Processes
Best In Class
Customer
Engagement
Disciplined
Product
Innovation
High
Performance
Culture
World Class
Manufacturing
and Supply Chain
Geographies are countries and regions where Synlait
invests resources. These include New Zealand, Australia,
China and selected Southeast Asian markets.
On-Farm Excellence
• Farmer Supplier Cashflow
and Payment System
• Sustainability Enabled via
Lead With Pride™
• Digital Tools and User Experience
• Industry and Community
Engagement
• Farmer Communications and
Engagement
Best In Class
Customer Engagement
• Deep Market Expertise
• Deep Customer Expertise
• Tailored Value Propositions
and Solution Offerings
• Joint Business Planning and
Customer Satisfaction Measurement
• Sales, Pricing, and Customer
Service Capability
• Digital Solutions
Disciplined Product Innovation
• New Product Development (NPD)/
New Technology Development
(NTD) for Advanced Nutrition
• NPD/NTD for Advanced Ingredients
• NPD/NTD for Foodservice/Liquids
• NPD for Ingredients
• Development of Subject Matter
Expertise
• Disciplined Innovation Processes
High Performance Culture
• Synlait Safe (Health, Safety
and Wellbeing)
• Leadership
• Talent and Succession
• Capability and Development
• Reward and Recognition
• Employee Value Proposition
Key Enablers are focus areas across Synlait to ensure we execute with excellence. Our six focus areas are:
Systems, Tools and Processes
• SAP
• Integrated Business Planning
• Business Performance Information
• Strategic Planning, Accountability
and Execution
• Information Services Strategy
and Roadmap
World Class Manufacturing
and Supply Chain
• Food Safety, Quality, Regulatory
and Laboratory
• Integrated Work Systems
• Procurement and Logistics
• Asset Care Strategy
• 10 Year Asset Masterplan
PAGE 61
APPENDICES
SYNLAIT MILK LIMITED
INTEGRATED CLIMATE REPORT 2024
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.