2024 Climate-Related Disclosures Report

Scales
Corporation Limited
Climate-Related Disclosures Report – 2024

Contents
Page 03
1.1
Scales Corporation Limited
1.2
This document
Operational Locations
Page 05
2.1
Board oversight of climate risks
and opportunities
2.2
Board skills and competence
2.3
Monitoring targets
2.4
Management’s role in assessing
and managing climate-related
risks and opportunities
Page 09
3.1
Current business model and strategy
3.1.1
Approach to scenario analysis
3.2
Climate risks and opportunities
3.2.1
Current impacts
3.3
Transition plan
Page 18
4.1
Context and scope
4.2
Climate risk identification
4.3
Climate risk analysis
4.4
Risk evaluation
4.5
Risk treatment
4.6
Monitoring and review
Page 30
6.1
Scales’ Targets
6.2
Mr Apple Targets
Page 32
Scales Group
Operating entities
Page 34
Page 22
5.1
GHG emissions targets plan
5.2
GHG emissions
5.2.1
Methodologies, assumptions and
uncertainties
5.2.2
Base years
5.2.3
Inclusions
5.2.4
Exclusions
5.3
Exposure to physical and transitional
risks/opportunities
5.3.1
Vulnerability to physical risks
5.3.2
Vulnerability to transition risks
5.3.3
Climate-related opportunities
5.3.4
Capital deployment 2024
5.4
Industry based metrics
Scales Corporation Limited, Climate-Related Disclosures Report 2024
02

1.1 Scales Corporation Limited
Scales Corporation Limited (Scales) is a global agribusiness, comprising ten businesses across three
divisions and four geographies. We have been trading for 113 years, and being able to adapt to future
risks and opportunities has been central to our success.
Scales continues work to integrate climate risk analysis into our wider business strategy, to increase
our resilience and deliver long-term stakeholder value. This is an important process to further
understand how climate-related physical and transition risks will impact our business over the short,
medium and long-term. We have added a Chief Risk Officer role to our internal capability as we
evolve and grow our understanding and knowledge of climate-related risks and opportunities across
the group. We look forward to our strategy refresh process throughout 2025, which will enable our
sustainability and climate-related strategy to be further integrated across the business.
1.2 This document
This is Scales’ second Climate-Related Disclosures (CRD) report, prepared in relation to the
Scales Group, as detailed in the Appendix. The climate assessments in this report considered all
subsidiaries and joint ventures, and Scales’ Emissions Inventory described in section 5.2 includes
emissions in respect of all of Scales’ operational subsidiaries and joint ventures, calculated on the
basis of an equity-share approach.
This document is Scales’ CRD report for the 1 January 2024 - 31 December 2024 reporting period
(2024) and constitutes Scales’ Climate Statements under the Financial Markets Conduct Act 2013
for 2024. This document is compliant with the Aotearoa New Zealand Climate Standards (CS) 1, 2
and 3, and covers four key thematic areas: Governance, Strategy, Risk Management and Metrics &
Targets. The Greenhouse Gas (GHG) emissions and metrics disclosed in this report should be read
with the methodologies, assumptions and uncertainties in Ta b l e 6.
We have used the following adoption provisions available under New Zealand CS 2:
1.
Adoption Provision 2 (NZ CS 2 (12), (13) and (14)) anticipated financial impacts, time horizons over
which these occur, and explanation of why quantitative information is not able to be provided;
2.Adoption Provision 6 (NZ CS 2 (20) and (21)) comparative year for metrics;
3.Adoption Provision 7 (NZ CS 2 (22)) analysis of trends from comparison of metrics.
4.
A
doption Provision 8 (NZ CS 2 (24) and (25)) scope 3 GHG emissions assurance.
Climate-related risk management is an emerging area and often uses data and methodologies that
are developing and uncertain. This report contains forward looking statements, including climate-
related scenarios, targets, assumptions, climate projections, forecasts, statements of Scales’ future
intentions, estimates and judgements that may not unfold as predicted. Scales has sought to provide
a reasonable basis for forward-looking statements and is committed to progressing our response
to climate-related risks and opportunities but is constrained by the novel and developing nature of
this subject matter. We caution reliance on forward-looking statements that are necessarily less
reliable than other statements Scales may make in its annual reporting. In particular, these statements
involve assumptions, forecasts and projections about Scales’ present and future strategies and
Scales’ future operating environment. Such statements are inherently uncertain and subject to
limitations, particularly as inputs, available data and information are likely to change. We have based
these statements on our current knowledge as at 22nd April 2025. Nothing in this report should be
interpreted as capital growth, earnings or any other legal, financial tax or other advice or guidance.
Mike Petersen
Chair
22nd April 2025
Andy Borland
Managing Director
1. Introduction
Scales Corporation Limited, Climate-Related Disclosures Report 2024
03

Horticulture
Vertically integrated apple
grower, packer & marketer
Juice manufacturer
Apple marketer
Global Proteins
Petfood ingredient procurers,
processors & marketers
Edible protein exporter
Logistics
Air & sea freight
USA
New Zealand
Belgium & Netherlands
Australia
04
Scales Corporation Limited, Climate-Related Disclosures Report 2024

This section includes a summary of Scales’ governance and
management structures that are in place to manage climate-
related risks and opportunities across the Group, including:
• Roles, responsibilities and processes in place to enable
the Board and relevant Board Committees to provide
oversight of climate-related risks and opportunities
• Management’s role in assessing and managing climate-
related risks and opportunities
The businesses that make up the divisions within the
Group are a combination of wholly-owned or partly owned
subsidiaries and joint ventures but are collectively referred
to as ‘Scales business units’ in this report.
2.
Governance
05
Scales Corporation Limited, Climate-Related Disclosures Report 2024

2.1 Board oversight of climate risks and opportunities
The Scales Board has responsibility for approving strategy and overseeing and responding to climate-
related risks and opportunities. The Board approves strategy, sets metrics and targets, approves the annual
CRD and delegates the duties below to two Board Committees:
• The Health & Safety and Sustainability Committee (HSSC) has been delegated the responsibility for
reviewing climate-related strategy, including associated metrics and targets, monitoring performance
against these targets and making recommendations to the Board. The HSSC is also involved in the
review of CRD processes, including review of Scales’ Emissions Inventory, and Scales’ climate-related
risks and opportunities. The HSSC reviewed Sustainability progress five times in 2024 and will annually
review performance against Scales’ climate- related targets once these are set in 2025
• The Audit and Risk Management Committee (ARMC) has been delegated the responsibility to provide
oversight of the annual CRD process and to recommend Scales’ CRD for Board approval. The ARMC is
responsible for managing and monitoring climate and non-climate risks, and ensuring climate risks are
integrated into Scales’ ERM process. The ARMC monitors risks and progress against any key actions
quarterly. The ARMC formally reviews the risk register which includes climate-related risks at least
annually. Additionally, where there are changes to the risk register, this is reported by management
via internal audit reports to the ARMC. In 2024, sustainability and/or CRD were agenda topics
three times in internal audit reports.
In 2024, as the full Board continues to understand and upskill on the Climate Reporting requirements,
the Sustainability papers were part of the full Board agenda and ARMC meetings were convened during
the full Board meeting meaning all directors were present.
The Board delegates responsibility for implementing Scales’ strategy (which includes climate responses),
preparing the annual CRD report and managing Group risks to Scales’ Management. Management
personnel with key responsibility for climate-related activities are the Chief Risk Officer and the Group
Sustainability Manager. Management is given appropriate guidelines and held accountable through:
• Risk Management Policy
• Emissions Inventory Policy
• Sustainability Policy
In 2024, the Group Sustainability Manager, Chief Operations Officer and latterly Chief Risk Officer
updated the Board in relation to CRD matters at 5 of 8 board meetings. In 2024 the Board reviewed
content relevant to this disclosure and has received advice from external advisers on Scales’ risks and
opportunities and on the CRD framework. Figure 1 outlines the flow of information and the governance
roles for climate-related activities.
The strategic framework in Figure 2 demonstrates how climate risks and opportunities are identified and
how Scales intends to embed these into Scales’ strategy.
2. Governance (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
06

2.2 Board skills and competence
The Board maintains a director skills matrix, which includes a specific category for sustainability
expertise. Scales’ 2024 Corporate Governance Statement contained within our annual report shows the
director skills matrix and the attendance at Committee meetings. This skills matrix is reviewed annually.
Directors continue to upskill themselves on climate-related issues, including the amended Aotearoa
New Zealand Climate Standards. In 2024 the Board reviewed and approved a submission on proposed
amendments to the CRD regime. The Chair of the HSSC is a member of Chapter Zero. In late 2024
the Board had a session on Transition Planning using the Chapter Zero and IoD guidance. A change
in management this year has seen the appointment of a Chief Risk Officer with a specific focus on
Sustainability reporting for the Scales Group. The Board uses external advice and expertise for climate-
related issues when required.
2.3 Monitoring targets
To date the Board (via the HSSC) has received reporting on GHG emissions targets relevant to the Mr
Apple business unit, including once in 2024.
The HSSC is responsible for reviewing metrics and targets and will recommend whether these are
appropriate based on industry best practice, relevance to Scales’ business unit operations, Scales’
capital allocation, and alignment to our stakeholder goals. This will be included in the strategic refresh
process as outlined in Figure 2.
Remuneration for senior management across the Group is linked to the individual’s contribution to the
business, including continuous improvement towards sustainability initiatives, which include climate-
related initiatives. There are currently fifty-four participants in Scales’ Short-term Incentive (STI) scheme,
an, increase of sixteen from 2023 with a STI salary component representing between 10 - 45% of an
individual’s gross salary.
2.4 Management’s role in assessing and managing climate-related
risks and opportunities
The Board assigns key climate-related responsibilities to management including:
1. Preparing strategy (including sustainability and climate-related elements);
2. Conducting scenario analysis and identifying priority climate-related risks and opportunities;
3. Preparing the annual CRD report;
4. Managing the ERM process;
5. Implementing strategy and risk management practices.
Scales’ management responsible for these activities includes the Chief Operations Officer, Chief Risk
Officer, Group Financial Controller and Group Sustainability Manager. Management also leads the
annual climate risk assessment (see Risk section below for assessment framework and process), which
is conducted across divisional working groups, including Board representatives, business executives,
business Subject Matter Experts (SME) and external climate technical experts. The purpose of
analysing at a divisional level (rather than at a business unit or group level) is to view the specific drivers
of each sector/division in more detail, while also considering the impact on the Scales Group. The
outcomes of the climate assessment are fed into the regular risk management process for our business
units and the Group ERM process. The duties of management and the Board are outlined in Figure 1.
Management is responsible for preparing Scales’ strategy and embedding the output of the climate
assessments into the ERM process.
Scales’ management is also responsible for working with Scales’ business units to integrate significant
climate-related risks and opportunities identified by the divisional working groups into their business
unit strategies and risk management processes. Scales’ management is represented on the joint
venture boards and has active oversight of these tasks.
2. Governance (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
07

Org Chart and Information FlowRegularlyAnnuallyOther
• Monitor strategic initiatives
• Monitor strategy performance
• Assess skills of sub-committees
• Risk Appetite
• Approve Scales Group Strategy
(Refresh in 2025)
• Approve associated metrics and
targets (set in 2025)
• Monitor sustainability
strategic initiatives
• Monitor performance against sustainability targets
• Review CRD processes – include climate assessment
and emissions inventory
• Review climate-related risks and opportunities
• Review materiality assessment
• Review sustainability strategy
and associated targets –
recommendations to board (2025)
• Monitor risk status
(via Internal Audit reports)
• Review enterprise risk register
• Ensure integration of climate risks
• Review CRD compliance and recommending CRD approval
• Update risk status (via Internal
Audit reports if required)
• Report on sustainability
initiatives
• Report on performance against strategic targets
(including sustainability)
• Prepare CRD– include climate analysis and
emissions inventory, assurance
• Integrate climate risks into enterprise risk register
• Implement strategy
• Prepare Scales Group Strategy
including associated metrics and
targets (Refresh in 2025)
• Undertake climate analysis – risk and opportunity identification
and evaluation
• Monitor strategic initiatives
• Monitor risk status
• Monitor strategy performance
• Review risk registers
• Approve Business Strategy
(periodically)
• Approve associated metrics and
targets (periodically - if they are
being set)
• Update risk status
• Report on strategic initiatives
• Collect and report relevant CRD data
• Report on performance against strategic targets
(if they have been set)
Figure 1: Scales’ climate governance framework – key roles, responsibilities and information flows
2. Governance (continued)
Sustainability Strategy
Sustainability Initiatives
Climate Analysis
Prepare Group Strategy
Business Strategy
Business Strategy
Group Strategy
Recommend
CRD Approval
Recommend Sustainability Strategy
Approve Group Strategy
Delegate Implementation
Climate Analysis
Enterprise Risks CRD Draft
Climate Analysis
Scales Board
Scales Management
JV Boards
JV Management
Audit and Risk
Management Committee
Divisional Working Group
Health & Safety and
Sustainability Committee
Scales Corporation Limited, Climate-Related Disclosures Report 2024
08

3.
Strategy
09
Scales Corporation Limited, Climate-Related Disclosures Report 2024

3.1 Current business model and strategy
Scales’ business model aligns to four key investment pillars:
Develop strong people
and partnerships
Demonstrate
operational excellence
Deliver
sustainable growth
Offer customer
focused innovation
Our current divisions are:
Global Proteins
HorticultureLogistics
Details of the business units within our divisions are set out in the Appendix.
As shown in Figure 3, climate risk and opportunities could influence our strategy in two ways:
a. Scales’ strategy, deciding where and how we invest. Embedding climate factors into our strategic process
in the future may influence our view of the sustainable growth of a sector or division, and therefore impact
our portfolio allocation and capital deployment for initiatives. For example, under our sustainable growth
investment pillar, climate factors may influence our view on long-term trends and the businesses/sectors
that align to these, which may change our capital allocation between divisions.
b. Business unit strategy, including business models and the products/markets/channels they choose to
serve. A business may change its product or market focus due to a specific climate risk/opportunity
or change its operating model and the resources it employs. Business strategies are reviewed against
Scales’ strategy, which may accelerate, limit or reduce funding required for actions.
The intention of our strategic refresh is for Scales to integrate climate-related factors into Group
strategies and for each of our business units to build resilience across our portfolio through a
bottom-up and top-down approach.
As an agribusiness investor, Scales considers climate risk within its risk management process, and has
been assessing mitigations, and implementing controls for priority business units (e.g., diversified global
proteins supply). Scales intends to expand this process by embedding the outcomes of our climate
assessments into our strategic planning framework. We will complete our strategic refresh in 2025 that
will enable us to set emissions reduction targets once we have established our assured base year. This is
outlined in Figure 2.
Scales refreshed its climate assessment in 2024. Scales’ climate assessment includes use of Climate
Projection modelling by Urban Intelligence, scenario analysis and an assessment of Scales’ climate-
related risks and opportunities. Scales’ 2024 refresh included a review of our climate scenarios to
consider up to date data (as outlined at 3.1.1) and a review of the climate-related risks and opportunities
identified in 2023 (as outlined in the Risk Management section). The climate assessment will be
undertaken more frequently than our strategic planning cycle, which assists our understanding of
changes in our short-term risks which are escalated through our ERM process. Transition initiatives within
our strategic plan can then be accelerated/decelerated or prioritised/deprioritised appropriately.
In 2024 we achieved the following key actions:
• Implementation of thirteen additional water meters across orchards
• We collaborated with KPMG on a scope 3 screening exercise to identify and verify our emissions
sources. This involved analysing business unit spending to pinpoint key and additional emissions sources.
We then explored more accurate calculation methods, using spend-based data where necessary
• Re-established the Kinross orchard regen trial lost in Cyclone Gabrielle and started a second trial site at
Blythe orchard
• Arranged external limited assurance of our scope 1 and 2 GHG Emissions Inventory to support target
setting in 2025
In 2025 we intend to conclude Life Cycle Analysis work for some our Global Protein divisions and
Profruit, necessary to assist us in setting targets in 2025. We also intend to incorporate our Mr Apple
GHG emission targets into future Group emissions reduction targets. Due to the extension of Adoption
Provision 2 through amendments to the Climate Standards, we have delayed development of our
financial impacts analysis until 2025 (note Scales has used Adoption Provision 2 (NZ CS 2 (12)) for
this disclosure for 2024). Once our group strategy has been refreshed in 2025, we can then measure
performance against our GHG emissions reduction targets annually.

Strategy
Refresh 2025

Set Group Targets
and Metrics 2025

Annual Actions
2024 2025

Climate
Assessment 2023

Materiality
Assessment 2021
3. Strategy (continued)
Figure 2: Strategic process
CompleteFuture undertakings
Scales Corporation Limited, Climate-Related Disclosures Report 2024
10

Figure 3: Scales’ strategy and business model
Scales’ current strategy is presented below. Also shown is the framework we intend to implement for our strategic refresh in 2025, which summarises how we will embed our climate assessment into our broader strategy.
*ROCE is return on capital employed
3. Strategy (continued)
Climate
Assessment
Climate
Assessment
Investment
Pillars
Portfolio &
Capital Allocation
Competitive
Strategy
Mission
To be the foremost investor in, and grower of, global agribusinesses by leveraging our unique insights,
experience and access to collaborative synergies
Goal
To generate a long-run average 12.5% ROCE across the portfolio
People and Partnerships
•People first approach
•Strong partnerships across
the value chain
•
L
everage our internal
capability and skills
Sustainable Growth
•Sectors/businesses that align to long-term trends
•
B
usinesses that are protecting and preserving
their resources
•Diversification of customers/markets/products
Operational Excellence
•Ability to add value through
innovation and efficiency
•
C
onsistent quality and service
delivery through knowledge,
location and technology
Customer Focused Innovation
•Product leadership - development of
new products
•
C
ustomer intimacy - integrated
business planning and customisation
to their specific needs
Product
•Investment in new petfood
ingredient products
•Develop broader species mix in
petfood ingredients
•Investment in new plant varieties
•Redevelopment to position variety
mix towards growth markets
Market/Channel
•Develop integrated channels and business
plans with our petfood customers
•
E
nter new markets for our petfood
ingredients
•
C
ontinue to develop Mr Apple’s brand/
sales channels across Asia markets
Infrastructure/Systems
•Investment in new ERP systems
•Continual assessment of orchard/
post-harvest location and
infrastructure
•
Investment in new processing
technology/automation (all divisions)
Resources
•Develop decarbonisation roadmaps
(all divisions)
•Improve water efficiencies (all divisions)
•Improve orchard practices to reduce
inputs (Mr Apple)
•Develop a Group-wide people strategy
Logistics
Global ProteinsHorticulture
Framework for Strategy Refresh 2025
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3.1.1 Approach to scenario analysis
The purpose of scenario analysis is to identify, from a set of plausible climate futures, a range of possible
climate-related risks and opportunities which can then feed into our strategic planning process. This
then allows us to test whether our corporate and business strategies are resilient to a much broader set
of drivers and risks.
In August 2024 Scales commissioned a Climate Projection update for Hawke's Bay from Urban
Intelligence following a NIWA release of downscaled AR6 climate forecasts for Shared Socioeconomic
Pathways (SSPs) 1,2 and 3. The report outlines an increase in higher temperatures, a decrease in frost
days and more summer rainfall, it has revalidated the appropriateness of the scenarios we adopted for
the 2023 reporting year.
Scales’ executives and key management, including the Chief Operations Officer and Group
Sustainability Manager, were involved in the selection process of our three climate scenarios, which were
selected from the Agri-Adaptation Roadmap. In 2023, the New Zealand agricultural sector collaborated
to produce an Agri- Adaptation Roadmap to guide the sector’s adaptation to climate change. This
roadmap utilised three climate- related scenarios to describe plausible futures for agriculture in New
Zealand when impacted by different physical and transition factors.
Scales continues to use the Agri-Adaptation Roadmap to provide consistency and comparability in
disclosures, adopting the most widely accepted set of scenarios for the agriculture sector supported by
robust and tested assumptions. Under each scenario we used the same key metrics for both physical
and transitional changes as the Agri-Adaptation Roadmap. We also aligned our timeframes (short 2023-
2025, medium 2025-2035 and long 2035-2050) and processes, including assessing scenario impacts
out to 2050. This is consistent with the useful life of our fixed assets and covers multiple business cycles.
Following the selection of the scenarios, in we supplemented the research in the Agri-Adaptation
Roadmap scenarios with additional modelling, conducted by Urban Intelligence, on the potential
physical changes across our assets and geographies. Given Scales’ global reach, a collection of global
climate data sources was used, and the modelling was conducted using Urban Intelligence’s geographic
information systems (GIS) platform, as the Agri-Adaptation physical data was focused on New Zealand.
International climate data for Australia, Europe, and USA was derived from multi-model ensembles of
CMIP5* data, providing the average change projected in each area of interest. The data available and
spatial resolutions varied across the geographies.
New Zealand sites were able to be evaluated for their exposure to mapped natural hazards using the Urban
Intelligence Resilience Explorer™.
* The Coupled Model Intercomparison Project Phase 5 (CMIP5) provides community-based infrastructure in support of climate model diagnosis,
validation, intercomparison, documentation and data access.
The climate scenarios adopted are summarised as follows:
1. Orderly: an orderly transition to a low-carbon future will be achieved. Major climate change and
subsequent physical impacts have been avoided. This scenario effectively considers RCP** of 2.6,
and SSP1, where there were ‘low challenges to mitigation and adaptation’. Warming is limited to a 1.5°C
temperature increase.
2. Disorderly: the world will successfully prevent major climate change and its associated impacts but failed
to do so in an orderly or stable fashion. Transition to a low-carbon future was highly disruptive on society
and local economies. As the worst climate physical changes were avoided, this scenario considers RCP
4.5, with an increase in 1-2°C in global temperatures. It uses SSP2, which considers ‘medium challenges to
mitigation and adaptation’, with rapid change after 2030.
3. Hothouse: a ‘business as usual’ world on track to increase global warming by 3°C or greater by 2100.
Very limited attempts were made to transition to a low carbon economy and climate policies were not
implemented since the 2020s. The physical impacts of climate change are severe, with some irreversible
changes. The world now must focus on adapting to climate change. This scenario considers RCP of 8.5
and follows SSP5, which has ‘high challenges to mitigation and low challenges to adaptation’.
Further information on the pathway assumptions for the various scenarios are listed in Ta b l e 1, which sets
out the key background assumptions based on the Agri-Adaptation Roadmap, Network for Greening the
Financial System (NGFS), International Energy Agency (IEA) and Climate Change Commission (CCC) inputs.
** Representative Concentration Pathways (RCPs) describe emissions of greenhouse gases into the future and associated climate impacts. Shared
Socioeconomic Pathways (SSPs) were developed to examine how global society, demographics and economics might change over the next
century, and influence the various emissions scenarios.
3. Strategy (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
12

Ta b l e 1 : Pathway assumptions
AssumptionOrderly (Net Zero 2050)Disorderly (Delayed Transition)Hothouse (Current Policies)
EnergyEnergy supply is mostly decarbonised. 89% of total energy is from
renewable sources.
Since 2030, there has been a rapid shift to low emissions energy, but there is
still a way to go. 76% of total energy is renewable.
Energy remains reliant on high emitting fuels. Renewable sources provide
46% of total energy consumed.
TransportSince 2032, all new light vehicles entering New Zealand have been
electric and integrated transport systems are common in urban areas.
After a delay, all new light vehicles have been electric since 2040, but private
car ownership has declined. Buses and trains are decarbonising quickly.
There are still Internal Combustion Engine (ICE) vehicles entering the
country in 2050.
BuildingsBuilding standards have been implemented that mandate the use of
sustainable materials and construction methods.
Sustainable building standards were introduced in the 2030s.The costs of
retrofitting existing buildings remains high, so only buildings new since 2035
are fitted out with low emissions in mind.
Building standards prioritise resilience to physical impacts rather than
sustainability. Coal and gas boilers remain common, and construction
waste is high.
Land useLarge areas of land have been protected to reverse ecosystem decline.There is no national strategy for land use.Land use continues to go to those who can derive the greatest profits from
it. Urban sprawl ensues and livestock agriculture remains widespread.
Afforestation and
carbon sequestration
There is widespread use of carbon capture and storage (CCS) globally,
though only a few cases in New Zealand.
Focus on emissions reductions leads to large areas of pine monocultures.
Rushed and costly global push for more CCS technology, though not really
seen in New Zealand.
Little use of CCS globally. Pine trees continue to be planted for timber, but
native forestry is not incentivised.
TechnologyFast changes in technology.Slow and fast changes in technology.Slow changes in technology.
Carbon dioxide removalMedium to high use.Low to medium use.Low use.
PolicyImmediate and smooth with medium variation in regional policy.Delayed policy, with higher variation in regional policy.Current policies, with low variation in regional policy.
3.2 Climate risks and opportunities
We set out Scales’ material climate-related risks and opportunities below. These have been identified in accordance with the guidance set out in the External Reporting Board’s (XRB) Climate-Related Disclosures Standard New
Zealand CS-3. Information throughout this document is deemed material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that primary users make based on Scales’ CRD.
The application of materiality in relation to the climate risks/opportunities presented below has been based on Scales’ risk assessment process, which is both a qualitative and quantitative assessment of the impact based on a
risk matrix (see Risk Management section). The material risks and opportunities identified will flow through to our capital deployment processes via the Strategic framework presented in Figure 3 and have also been included in
our ERM process (see risk evaluation in section 4.4). We have not yet included consideration of anticipated financial impacts and have utilised the adoption provisions in NZ CS 2 (12) as we have not yet completed the financial
modelling for this work.
3. Strategy (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
13

3.2.1 Current impacts
In 2024, Scales experienced the following climate-related impacts:
We consider there were no material financial impacts from these events in 2024.
Ta b l e 2 : Climate-related risks, anticipated impacts and controls
RiskAnticipated Impact DescriptionControls/MitigationsSector/GeographyType/Time Horizon
Increased regional
temperatures. More 'hot' days/
year (>25°C), less summer
rainfall, increased drought risk.
Anticipated impacts:
This could lead to increased soil moisture deficits, leading to
volatility in supply. Water security is impacted by rainfall and
drought changes – see cascading risk below.
•
Gl
obal Proteins is aiming to have diversified sources of raw material supply,
reducing concentration risk of single geography/region being impacted by
extreme weather or climate events
•
Horticulture uses long-term consents, has a dedicated irrigation management
focus to maximise effect and minimise use
•
Horticulture monitors all postharvest sites for efficient use
•
G
roup is actively engaged where possible with regional water initiatives
Sector:
All
Geography:
New Zealand, United
States, Europe, Australia
Ty p e :
Physical and transition
Time Horizon:
Mid/Long-term
Customers more focused
on sustainability
Anticipated impact:
Customers, in Global Proteins, have indicated sustainability will
start to factor into their procurement process in the near future.
Contracts may be lost if we do not keep pace with competitors.
May also increase demand for low emissions products as
customers focus on end-to-end footprint.
•
C
ontinue development of our decarbonisation roadmaps for each division,
with the intention to demonstrate meaningful progress in emissions reduction
initiatives and water efficiencies that align with our customers’ ambitions. We
will review these at a Group level to set appropriate targets in 2025
•
E
xplore lower emissions products (Global Proteins)
•
Start to understand supplier efforts toward sustainability and aim to develop better
systems to assist in supply chain transparency and data collection (all divisions)
Sector:
All
Geography:
Europe, Australia, New
Zealand, and United
States
Ty p e :
Transition
Time Horizon:
Short/mid-term
Financial stakeholders
place more focus on the
assessment of climate-related
risks to Scales Group
Anticipated impact:
Insurance companies could fail to provide cover or premiums
become cost prohibitive. We are currently reviewing the viability of
crop insurance, given the notable increase in premiums vs other
mitigation options.
•
Regional geographic diversification of our orchards, spread over the Heretaunga
Plains and Central Hawke's Bay
•Ho
rticulture intends to continually assesses its locations and orchard
infrastructure (windmills, irrigation, hail netting and re-development structures/
drainage) against hazard risk
•
W
e continue working with our insurance brokers to better understand the cost,
insurability of our crop and the impact climate change may have on this
Sector:
Horticulture
Geography:
New Zealand
Ty p e :
Transition
Time Horizon:
Short-term
•Some restrictions in place or water access removed in times of low
flow/drought which can impact fruit size and quality, and therefore
affect returns
•Small amount of tree losses still occurring post the impact
of Cyclone Gabrielle. Scales incurred a small amount of tree
replacement costs and loss of production from those trees
•Hawke’s Bay Regional Resource Management Plan (RRMP), Plan
Change 9 (PC9) is a new management framework for the land and
waterways of the Tūtaekurī, Ahuriri, Ngaruroro and Karamū (TANK)
catchments. Scales was actively involved in this throughout 2024
3. Strategy (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
14

RiskAnticipated Impact DescriptionControls/MitigationsSector/GeographyType/Time Horizon
Increase in frequency and
intensity of extreme climate
events, specifically storms,
extreme wind, and extreme
rainfall events.
Anticipated impact:
Orchard managers focused on managing and supporting the
trees to not revert to biannual bearing patterns to ensure yields
per hectare are maintained.
• Regional geographic diversification of our orchards, spread over the
Heretaunga Plains and Central Hawke's Bay
• Mr Apple intends to continually assesses its locations and orchard
infrastructure (frost fans, irrigation, hail netting and re-development structures/
drainage) against hazard risk
• Geographic diversification of Global Proteins raw material supply, reducing
concentration risk of a single geography/region
Sector:
Horticulture/Logistics/
Global Proteins
Geography:
New Zealand (data
limited for other regions)
Ty p e :
Physical
Time Horizon:
Short-term
Water regulation increases,
in response to water scarcity
due to increased regional
temperatures.
Anticipated impact:
The two risks are interrelated. As water demand increases,
it may put pressure on existing resources and trigger more
regulation – resulting in risks to water take, or an increase in
capital/compliance costs. Could result in land use change, and or
decrease in productivity of supply.
• Horticulture uses long-term consents, has a dedicated irrigation management
focus to maximise effect and minimise use
• Horticulture monitors all postharvest sites for efficient use
• Group is actively engaged where possible with regional water initiatives
• Global Proteins has a diversified regional supply approach for raw material
• Water supply built into long-term lease arrangements with processing facilities
Sector:
All
Geography:
New Zealand
Ty p e :
Transition
Time Horizon:
Short/Mid-term
Carbon emission regulations
increase as we accelerate
towards our targets.
Anticipated impact:
Fuel, refrigerant, packaging, fertiliser may all be taxed or regulated in
the future. This may increase the cost of compliance including capex
requirements. Market access becomes more difficult through carbon
border adjustment mechanisms. This may also force land use change.
• Scales intends to continue developing decarbonisation roadmaps for each sector.
We intend to review these at a Group level to set appropriate targets in 2025
• We are supporting and contributing to industry projects and have invested in our
own trial to investigate new orchard practices to improve soil characteristics,
which may lead to a future reduction in synthetic inputs
Sector:
All
Geography:
All
Ty p e :
Transition
Time Horizon:
Mid/Long-term
Increase in winter temperatures
could change current pest and
disease pressures.
Anticipated impact:
There may be greater risk of a biosecurity breach, resulting
in tightening of biosecurity regulations, potentially impacting
market access. Increased pest and disease activity, potential
changes in the effectiveness of biological controls.
• We are supporting and contributing to industry projects and have invested
in our own trial to investigate new orchard practices to improve the soil
characteristics, which may lead to a future reduction in synthetic inputs
• Additionally, we are investigating new equipment in our post-harvest
operations to provide further control for pest interception
• We have investigated new plant protection products and introduction of new
biological controls
Sector:
Horticulture
Geography:
New Zealand
Ty p e :
Physical
Time Horizon:
Mid/Long-term
3. Strategy (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
15

Ta b l e 3 : Climate opportunities, anticipated impacts and controls
OpportunityAnticipated Impact DescriptionControlsSector/GeographyType/Time Horizon
Customers more focused
on sustainability
Anticipated impact:
We expect that we will be able to capitalise on a change in our
customer needs/preferences faster than our competitors, which
may help us develop stronger relationships, increasing demand.
•C
ontinued development of our decarbonisation roadmaps for each
division, with the intention to demonstrate meaningful progress in
emissions reduction initiatives and water efficiencies that align with our
customers ambitions (all divisions)
•Gl
obal proteins is aiming to have diversified sources of raw material
supply, reducing concentration risk of single geography being impacted
by extreme weather
•Explore lower emissions products (Global Proteins)
•
Develop better systems to assist in supply chain transparency and data
collection (all divisions)
•
We are supporting and contributing to industry projects and have invested
in our own trial to investigate new orchard practices to improve soil
characteristics, which may lead to a future reduction in synthetic inputs
Sector:
All
Geography:
All
Ty p e :
Transitional
Time Horizon:
Short-term
Increased sunshine hours
and reduced frost risk
Anticipated impact:
Changes to weather could lead to improved fruit size and therefore
an improvement in productivity from certain varieties. Improved
fruit could lead to increased pack outs. May also bring a reduction
in the level of inputs required for crop protection and reduce the
need to intervene with reflective cloth to achieve colour.
Additionally, may lead to reduced frost injury risk meaning higher
fruit set, less fruit russet blemish, less fuel costs for frost machines.
•
Co
ntinue investigation into variety development for hot climate fruit
•
Mo
nitor and access the current response of fruit each season against
climate data to understand how conventional varieties are responding
•W
ork with plant breeding organisations to understand these changes and
the positive or negative impacts this is having each season
Sector:
Horticulture
Geography:
New Zealand
Ty p e :
Physical
Time Horizon:
Mid/Long-term
3. Strategy (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
16

3.3 Transition plan
In this transition plan Scales has taken the steps to illustrate how our plan links to our current strategy. The transition initiatives presented below are the actions we are currently taking to mitigate key climate risks. All
projects have been allocated capital and/or resource to progress, and their prioritisation may change once we have concluded our strategy refresh in 2025.
3. Strategy (continued)
Risk and OpportunityRisk
Risks/OpportunitiesTransition InitiativesProgress to DateCurrent StrategyCapital Deployment
and Funding
Financial
stakeholders
place more
focus on climate
assessment
More hot days
per year, reduced
summer rainfall
Increase in
frequency and
intensity of extreme
climate events
Customers
more focused on
sustainability
Water regulation
continues to
increase
Carbon emissions
regulations
increase as we
accelerate towards
our targets.
Increase in winter
temperatures –
increased pest and
disease risk
Resources
• Decarbonisation roadmaps (all
divisions)
• Improve water efficiencies (all divisions)
• Improve orchard practices to reduce
inputs (Mr Apple)
• Develop a group-wide people strategy
Infrastructure/Systems
• Continual assessment of orchard/post-
harvest location and infrastructure
• Investment in new ERP systems across
Global Proteins
• Investment in new processing
technology/automation (all divisions)
Market/Channel
• Enter new markets for our petfood
ingredients
• Continue to develop Mr Apple’s brand/
sales channels across Asia markets
• Continue to develop integrated
channels and business plans with our
petfood customers
Product
• Investment in new plant varieties
• Redevelopment to position variety mix
towards growth markets
• Investment in new petfood ingredient
products
• Develop broader species mix in
petfood ingredients
Investment in
new processing
technology/
automation
Assessment of
orchard location
and infrastructure
Decarbonisation
roadmaps
Set Group-
wide emissions
reduction targets
in 2025
Investment in
new cloud-based
software systems
Improve water
efficiencies
Improve Orchard
practices to
reduce inputs
Diversification of
products/markets/
customers
Diversification of
supply – regionally
and globally
• Global Proteins is developing their customer base, including focusing on local customers across all markets. We have
recently secured additional supply of Salmon and have expanded into the European market
• Global Proteins is also currently investigating low emissions, and plant-based products although trials are still in early stages
• Meateor Australia has had its first full operational year, increasing control and supply in the Australian market
• Commissioning of the Netherlands plant will occur in Q1 2025
• Bostock acquisition increases access to premium varieties to support customer development, supports geographical
alignment to increase efficiencies of management and existing resource & infrastructure
• Meateor LP and Scales Logistics have introduced business intelligence, allowing easier integration between all the
business units
• Mr Apple has approved technology to be installed in 2025 which will reduce the probability of pest interception
• Mr Apple are doing feasibility analysis on hail netting for selected orchards. New technology has now made this
option viable for some premium varieties. Over the last 6 years we have moved to stronger orchard structures with
more wires vs traditional structures.
• Scales will set its emissions targets in 2025
• Mr Apple has switched from gas to heat pump hot water systems in the RSE accommodation
• Shelby has completed a number of decarbonisation initiatives in 2024 such as; LED lighting, waste water system,
upgrading refrigeration compressors and a new boiler
• Assurance of scope 1 and 2 and efforts to improve scope 3 data collection
• In 2025 plan to update materiality assessments and decarbonisation roadmaps for new facilities
• Scales continues to add telemetry to all its sites, which will enable Scales to complete a refreshed water footprint in 2025.
• Scales is supporting regional water initiatives
• Mr Apple is in the second year of its regenerative trial on two orchards, with testing to be completed in 2025.
• Mr Apple continues to support the industry led initiatives (NZAPI SMART and Sustainable), through funding and in-kind
support to reduce spray requirements
Scales’ transition
initiatives are
not currently
separately
accounted for
in our capital
deployment and
funding decision
making, The
progress listed has
been undertaken
through our
standard capital
deployment
processes.
Our transition
initiatives reflect
execution of our
current strategy
and are therefore
aligned with
our broader
company capital
deployment and
funding decision
making processes.
As part of our
strategy refresh,
we intend for our
annual climate
assessments
to inform our
investment pillars
and competitive
strategy which in
turn will determine
our portfolio and
capital allocation.
Scales Corporation Limited, Climate-Related Disclosures Report 2024
17

4.
Risk Management
18
Scales Corporation Limited, Climate-Related Disclosures Report 2024

Scales’ ERM risk framework identifies, analyses, and establishes controls to manage key risks. These are
controlled and managed through a group risk register, using the ISO 31000:2018 standard as guidance.
Scales has had a number of climate-related risks on the risk register since its IPO in July 2014. In 2023
Scales conducted a risk identification, analysis and evaluation process for our climate-related risk, then
in 2024, Scales added several climate-specific risks to the group risk register.
Our largest divisions - Horticulture and Global Proteins are inherently exposed to climate risks, and
climate risk management is deeply embedded into the way the businesses operate. In 2024 Scales held
a follow up workshop with the Horticulture division followed by a meeting with key executives from all
remaining divisions to review the changes. This process is detailed in sections 4.2 – 4.4 below.
Although we apply a stand-alone identification and scoping assessment of our climate-related risks,
the process noted in 4.1 through to 4.6 replicates those used to identify non-climate-related risks. This
provides consistency in methodology and allows climate-related risks to be integrated into the same
register to provide an appropriate comparison for prioritisation against the factors listed in 4.4.
The ISO standard follows the framework below
4.1 Context and scope
Effective risk management requires a thorough understanding of the context in which Scales and its
businesses operate. Prior to identifying risks, we consider:
•Strategy for the group and each division
•Business model of the divisions
•The environment in which each division operates, including future drivers of change (financial, operational,
competitive, environmental, political, social, legal and technological, etc)
•Relevant stakeholders, including customers, suppliers, employees, shareholders and communities across
the value chain
4.2 Climate risk identification
The objective of this step is to generate a comprehensive list of risks based on identified future drivers.
In 2023 we expanded on the Agri-Adaptation Roadmap future drivers (applying our own strategy and
operating environments – see above), which covered the entire value chain. We then formulated an initial risk/
opportunity assessment and presented this to the three divisional working groups.
Scales considers climate risk across three time horizons:
•
Short-term: present to 2025
•
Me
dium-term: 2025 – 2035
•
L
ong-term: 2035 – 2050
Short-term risks identified have an immediate or near-term impact on the organisation, including operational
disruptions, supply chain issue, or sudden market changes.
Medium and long-term risks identified are those that unfold over an extended period, such as physical
and transitional climate change risks, but also include technological shifts, demographic changes. In 2024
Scales revisited the risks identified in 2023, including holding a workshop with the Horticulture division to
understand if any new risks had presented and to then reassess and interrogate the appropriateness of the
climate risk ranking (as described at 4.3). With the other business units, Scales management worked with
CEO’s and senior managers to assess if any new risks needed to be added to the register or removed.
4. Risk Management
Communication & Consultation
Risk Assessment
Risk Identification
Risk Analysis
Risk Evaluation
Recording & Reporting
Monitoring & Review
Risk Treatment
Scope, Context, Criteria
Scales Corporation Limited, Climate-Related Disclosures Report 2024
19

4.3 Climate risk analysis
In 2023 the divisional working groups were asked to assess climate risks/opportunities across our
three chosen scenarios (see strategy section), representing different plausible pathways. The Group
then were asked to refine or add risks as appropriate and then to rank each risk/opportunity, by
scenario, timeframe, and type (physical or transitional).
While the climate risk assessment is standalone, the risks and opportunities identified will flow into
our strategic process outlined in Figure 2. Scales intends to expand this process by embedding
the outcomes of our climate assessments into our strategic planning framework. We will complete
our strategic refresh in 2025 that will enable us to set emissions reduction targets once we have
established our assured base year. This is outlined in Figure 2: Strategic process.
Our approach to analysing risk is a three-step process as follows:
Step 1
Analyse the ‘likelihood’
of an event occurring
Step 2
Analyse the ‘consequences’
of an event if it occurs
Step 3
Prioritise and rank the risk
using this risk matrix (Ta b l e 4)
Consequences are determined by a qualitative and quantitative (where applicable) assessment of the
impact against defined thresholds for financial, people, environment and reputational impacts.
Analysing the likelihood for climate and strategic risks is different to our other short-term risks and is
determined by the likelihood of the event over the time horizon considered. The interdependency/
cascading nature of risks were discussed during the divisional working group assessments, and impact
assessment adjusted as necessary. For example, increases in the number of hot days will increase
water demand, putting pressure on the resource and increasing the likelihood of a transition risk
around water regulation.
For clarity, we use the term ‘likelihood’ to refer to the probability or chance of the risk event occurring
over the time horizon. For short-term risks, this will usually be within 1-2 years, and for long-term risks
over an extended period as noted above. Long-term risks will generally require a more strategic
perspective, considering trends, systematic changes and the potential evolution of drivers over time.
4. Risk Management (continued)
Ta b l e 4 : Risk matrix
LikelihoodConsequences
1. Insignificant2. Minor3. Moderate4. Major5. Catastrophic
5. Very Likely510152025
4. Likely48121620
3. Neutral3691215
2. Unlikely246810
1. Very Unlikely12345
Where:
>19: Extreme Risk
15-19: High Risk
8-14: Moderate risk
1-7: Low Risk
Scales Corporation Limited, Climate-Related Disclosures Report 2024
20

4.4 Risk evaluation
The purpose of risk evaluation is to identify which risks need treatment and the priority for treatment
implementation. Based on the risk methodology described above, we identify which risks are acceptable
(and therefore to be monitored only) and which are unacceptable (to be treated).
Climate and non-climate risks are prioritised under the same framework outlined above and are ranked
based on residual risk in the risk register. Risks are thereby integrated into Scales’ ERM process
Where there are similar risk ratings across time-horizons, the prioritisation will consider the following factors.
Time sensitivity – immediate or short-term impacts may require more urgent attention and response.
Strategic importance – if a risk is aligned to long-term goals it may warrant higher priority.
Reversibility – risks that maybe lower consequence but have a lasting impact could influence prioritisation.
Mitigation and adaptation options
Integrated risk management
– may prioritise risks that have interplay between short-term and long-term
horizons, and that may have cascading effects.
Stakeholder impact – risks that have broader social or environmental implications may be given priority.
By taking these factors into account, Scales can make informed decisions on prioritising risks, ensuring that
they effectively manage both short-term and long-term risks together.
4.5 Risk treatment
Risk treatment options can include the following:
Avoiding the risk
(ceasing the activity giving rise to the risk or deciding not to start a course of action);
Sharing or transferring the risk to another party or parties
(e.g., insurance);
Mitigating the risk
(putting in place additional controls or actions to reduce the likelihood and/or consequences of an event);
Adapting to the risk
accepting the risk but adapting business practices (usually strategic) to reduce the impact.
While the medium and long-term risks will be included in the same register, the treatment options will be
much more strategic (changes to business/operating models or portfolio allocation).
4.6 Monitoring and review
The risk register is monitored quarterly (via status reports) and reviewed not less than annually by the ARMC.
Review of the risk register (including climate risks) includes:
Assessment of risk treatment effectiveness;
New risk identification and risk register completeness check.
Risk management framework review.
4. Risk Management (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
21

5.
Metrics and Targets
22
Scales Corporation Limited, Climate-Related Disclosures Report 2024

5. Metrics and Targets
5.1 GHG emissions targets plan
Scales intends to set emissions reduction targets for Scope 1 & 2 in 2025, now that we have established
our assured base year (5.2.2). In 2025 we aim to strengthen our data collection for Scope 3 emissions.
Following the full acquisition of Profruit in 2024 and the construction of another plant in Europe for our
Global Proteins division, we intend to complete “Life Cycle Analysis” for select raw products to inform
our Scope 3 emissions data collection and enable the setting of Scope 3 emissions reduction targets.
Extracting + processing + transporting
Disposing
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+

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+

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+

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+
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e
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o
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r
y
Stages in a
product’s
life cycle
Scales Corporation Limited, Climate-Related Disclosures Report 2024
23

5.2 GHG emissions
Scales measures and reports its greenhouse gas (GHG) emissions GHG with guidance from the
following standards:
•Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard
•Greenhouse Gas Protocol - Corporate Value Chain (Scope 3) Accounting and Reporting Standard
The following guidance has also been used in the preparation of our GHG Emissions Inventory:
•
Greenhouse Gas Protocol - Scope 2 Guidance
•Gree
nhouse Gas Protocol - Scope 3 Calculation Guidance
•Ministry for Environment - Measuring emissions: A guide for organisations
•Activities contributing to all relevant seven Kyoto gases was considered for the Scales Group GHG
inventory: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3)
Scales applies:
•Th
e most relevant and up-to-date emission factors from various sources, including Ministry for
the Environment (MFE) for New Zealand, UK Government GHG Conversion Factors for Company
Reporting (2023), Australian National Greenhouse Account Factors and US Emissions Factors for
Greenhouse Gas Inventories, Texas eGRID factor published by the EPA
•
Wh
ere possible, the latest values for Global Warming Potentials (GWP’s) of reported GHG, as
defined by the Intergovernmental Panel on Climate Change (IPCC). The full list of GWP sources
applied is provided in Ta b l e 6
When we completed our decarbonisation roadmaps for all operational businesses in 2022, we used
an internal emissions price of $85/tCO2 for our internal abatement calculation. This was based on
the New Zealand Emissions Trading Scheme unit price at the time of publishing the decarbonisation
roadmaps. This will be updated before completing our strategic refresh in 2025.
Scales applies the equity share consolidation approach to our Emissions Inventory. This consolidation
approach aligns with the nature of our portfolio and allows us to maintain consistency across entities
where Scales holds partial ownership in a joint venture, and/or may invest/divest in the future.
In Ta b l e 5 Scales has only obtained limited assurance over Scope 1 and 2 GHG Emissions for 2024
and Scope 3 remains unassured. In 2023 Scope 1,2 and 3 were all unassured.
5. Metrics and Targets (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
24

5. Metrics and Targets (continued)
Scales’ total GHG emissions in 2024 were 67,660 tCO
2
e, with measured Scope 3 emissions making up 83% of all emissions measured in 2024. Table 5 shows Scales’ emissions by scope, emissions category and as a percentage of
Group total emissions.
Ta b l e 5 : 2024 GHG Emissions Inventory
Emissions ActivityTotal FY23 emissions tCo
2
e
***
% of total FY23 emissions measuredTotal FY24 emissions tCo
2
e% of total FY24 emissions measured
Scope 15,4718%7,660 (LA)11%
Stationary combustion2,5034%3,869 (LA)6%
Mobile combustion2,8094%3,427 (LA)5%
Fugitive emissions1590%364 (LA)1%
Scope 2 (location-based)2,9204%3,975 (LA)6%
Electricity2,9204%3,975 (LA)6%
Scope 358,89888%56,02583%
C1: Purchased goods and services5,3808%4,3567%
C3: Fuel and energy related activities6331%526 1%
C4: Upstream transportation and distribution3,0254%21503%
C5: Waste generated in operations4241%328 0%
C6: Business Travel1,6652%1,4812%
C7: Employee commuting1570%239 0%
C8: Upstream leased assets220%- 0%
C9: Downstream transportation and distribution47,59371%46,94569%
To t a l6 7, 2 8 8100%67,660100%
tCO
2
Per $million revenue**9585
LA = Scales’ 2024 Scope 1 and 2 GHG emissions that are subject to a limited assurance engagement by Deloitte Limited. “LA” denotes the aspects of Scales’ GHG emissions are subject to a limited assurance engagement by Deloitte Limited.
** Scales’ intensity measure tCO2 per million dollars revenue, is calculated using the equity share approach. This is different to the reported revenue in the financial statements which uses consolidated accounting standards. The revenue figure used for this metric is based on equity share, and also excludes financial
revenue, and ‘other reported income.
***
Fo
r the avoidance of doubt, Scales FY23 GHG emissions were not subject to assurance.
For FY24 Scales has obtained limited assurance over its scope 1 and 2 GHG emissions as summarised here in Ta b l e 5. This limited assurance engagement was provided by Deloitte Limited in accordance with New Zealand
Standard on Assurance Engagements 1: Assurance Engagements over Greenhouse Gas Emissions Disclosures (‘NZ SAE 1’) and International Standard on Assurance Engagements (New Zealand) 3410: Assurance Engagements
on Greenhouse Gas Emissions issued by the XRB. Assurance has not been provided over other disclosures made in these climate statements.
Scales Corporation Limited, Climate-Related Disclosures Report 2024
25

5.2.1 Methodologies, assumptions, and uncertainties
In June 2024 Scales increased its shareholding of Profruit from 50% to 100% making it a wholly-owned
subsidiary, and Meateor Australia (MAP) from 33% to 50%. Scales uses an equity share consolidation
approach for our climate reporting, therefore, for 2024 acquisitions have been calculated on a weighted
average based on our proportion of ownership throughout the year.
For Scope 3 emissions, we have constructed estimates where we hold internal data that we can use to
generate wider conclusions. An example is our Scope 3 emissions for third party toll processing and cold
storage. We are confident that these activities are relatively similar to Scales owned sites, therefore we
expect to generate similar (in relative terms) or conservative estimates where we cannot get direct data
from the third-party providers.
In instances where we are not able to use estimates due to the lack of data, and where we expect
emissions to be significant, we will work with our partners to obtain more precise data to create reliable
GHG estimations.
5.2.2 Base years
Our GHG Inventory report covers a calendar year, in this case being 1 January – 31 December 2024.
Scales intends to restate its base year where there has been a change in emissions factors, where we have
bought or sold a business or where there has been a change greater than 10% in our Emissions Inventory.
Scales will use our 2024 emissions reporting as the base year for our group’s Scope 1 & 2 GHG emissions
reduction targets, which have not yet been set. FY2024 is the first reporting year for which we have
obtained external independent limited assurance of our Scope 1 and 2 emissions, allowing us to more
confidently set Scope 1 & 2 GHG reduction targets based on that data in future.
5.2.3 Inclusions
Ta b l e 6 outlines all emissions included in the Inventory, including the source, methodology and the level
of uncertainty. All businesses with relevant activity related to the emissions source are included. If data is
not available for a business this has been disclosed in Ta b l e 7. The selection of emissions factors is based
on operating location. Where location-specific information is unavailable, New Zealand-based emissions
factors have been used.
5. Metrics and Targets (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
26

Ta b l e 6 : Inclusions, methodologies and uncertainties
ScopeEmissions CategoryActivityData sourceGWP sourceMethodology, Data Quality, Uncertainty (Qualitative)
Scope 1
(LA)
Stationary combustionFossil fuels used by plant equipmentInvoicesMFE guidelines 2024Fuel based method. Low uncertainty
Mobile combustionFossil fuels used by fleet/pool vehicles and forkliftsFuel purchase transaction historyMFE guidelines 2024Fuel based method. Low uncertainty
Fugitive emissionsRefrigerant used by refrigeration equipmentMaintenance reports and invoicesMFE guidelines 2024Top-up method. Applicable to Scales owned refrigeration equipment. Low uncertainty
Scope 2
(LA)
Purchased energyElectricity consumptionInvoices
MFE guidelines 2024, Australian Government
Department of Climate Change, National
Greenhouse Acc Factors 2024, Federal
Register EPA, Nowtricity Belgium 2024
Location based method. High data quality and low uncertainty due to invoice sets. Selection of
electricity grid factors by operating location. "Electricity grid emissions factor selection is based on
the location of the facility. Either national average by country (NZ and Netherlands) or state-based
factors (Victoria - Australia, Texas - USA), as available."
Scope 3
Business travel
Air travel
Travel itineraries, reimbursements,
credit card purchase history
MFE guidelines 2024, Consumption
emissions modelling report
Hybrid method. Distance based where data available, otherwise dollars spent. Variable data
quality, medium uncertainty overall
Rental car/Taxis
Travel itineraries, reimbursements,
credit card purchase history
MFE guidelines 2024, Consumption
emissions modelling report
Hybrid method. Distance/fuel based for rental cars where data available, otherwise dollars spent.
Dollars spent for taxis. Variable data quality, medium uncertainty overall
Hotels and Accommodation
Travel itineraries, reimbursements,
credit card purchase history
MFE guidelines 2024, Consumption
emissions modelling report
Nights stayed method. Country selected based on itineraries, and conservatively approximated
where unspecified. High uncertainty overall
Employee commutingEmployee commuting and working from homeInternal reports/ staff surveyMFE guidelines 2024
Distance - based method to determine commuting, days working from home approximated. Data
quality is low due to difficulty in validating survey results. High uncertainty
Upstream transportation
and distribution
Movement of product from suppliers
Logistics shipping and freight
reports
UK GHG conversion factors 2024
Tonnes km (tkm) based method. Distances and weight determined between supplier and plant.
Only includes emissions from upstream freight we are responsible for. Variable data quality,
medium uncertainty
Downstream transportation
and distribution
Movement of product to customers
Logistics shipping and freight
reports
MFE guidelines 2024, UK GHG conversion
factors 2024
tkm based method. Distances and weight determined between plant and customer. Only
includes emissions from downstream freight we are responsible for. Variable data quality, medium
uncertainty
Purchased goods and
services
Coldstores/toll processing provided by a third
party (toll processing relates specifically to Shelby)
Third-party supplier warehouse
volume reports/invoices
MFE guidelines 2024
2024 www.nowtricity.com
Carbonfootprint.com
Hybrid method. Used data from owned facilities to extrapolate out to third-party coldstorage and
toll processing sites. For coldstorage we used m3 to kWh conversion factor. High uncertainty.
Electricity grid emissions factor selection is based on the location of the facility. Either national
average by country (NZ and Netherlands) or state based factors (Victoria - Australia, Texas - USA),
as available
Fuel and energy related
activities
Transmission and distribution losses
MFE guidelines 2024, Australian Government
Department of Climate Change, National
Greenhouse Acc Factors 2024, Federal
Register EPA, Nowtricity Belgium 2024
Electricity consumption approach. Methodology as per MFE guidelines. Grid-average transmission
losses-estimation based on national generator and consumption totals. High data quality, low level
of uncertainty.
Well-to-tank emissionsUK GHG conversion factors 2024
Fuel consumption approach, methodology based on UK GHG conversion factors. High data
quality, medium uncertainty.
Waste generated in
operations
Waste
Supplier invoices and waste
reports
MFE guidelines 2024
Hybrid method. Weight based where data is available, otherwise weight is estimated by bin
volumes and number of collections. Landfills use gas capture technology. Variable data quality,
medium uncertainty
Water supply and wastewaterCouncil invoices and meter dataMFE guidelines 2024
Hybrid method. Volume based where council data is available for processing sites. Per capita
basis for office spaces. Domestic wastewater treatment factors used as industrial factors are
unavailable. Variable data quality, medium uncertainty
Upstream leased assetsShort-term leased space
Property measurements and
invoices
MFE guidelines 2024
Estimate based on energy intensity (square meter energy consumption) of existing sites for offices.
Used site footprints and m3 to kWh conversion factor for coldstore consumption. High uncertainty
5. Metrics and Targets (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
27

5.2.4 Exclusions
The emissions sources in Ta b l e 7 have been identified and excluded from this GHG Emissions Inventory. These emissions sources are considered relevant to our operations, however, are either not material to stakeholders, not
material in the context of the inventory, and/or not technically feasible or cost effective to be quantified at present. We will be actively working on improving our data collection and assessing our estimation options for emissions in
these categories.
Ta b l e 7: Exclusions
ScopeEmissions CategoryActivityApplicability**Reason for Exclusion
Scope 1 (LA)
Mobile combustionFossil fuels used by fleet/pool vehicles and forkliftsMFI, Scales Corporate Data unavailable, expected impact is immaterial
Fugitive EmissionsRefrigerant used by office HVAC*/kitchen equipmentAll officesData unavailable, expected impact is immaterial
Scope 2 (LA)
Purchased energyElectricity consumptionMFIIncluded in MFLP inventory (shared office space)
Scope 3
Employee commuting
Employee commutingMFI, FIG, ANZVariable data quality, high uncertainty overall
Working from homeMFI, MAP, FIG, ANZVariable data quality, high uncertainty overall
Upstream transport and distributionMovement of product from suppliersMFI, FIG, LogisticsSupplied raw product is purchased Ex works, or accounted for by other business units
Downstream transport and distributionMovement of product to customersLogistics
Accounted for by other business units. Scales Logistics is also a service provider not a direct
cargo owner, so not applicable
Waste generated in operations
Water supply and wastewaterMFI, EsroNo data. Expected immaterial for offices, and Esro during reporting year due to partial processing
WasteMFI, Scales Corporate
No data. Expected to be immaterial for offices, and Esro during the reporting year due to partial
processing. Note: all rendering waste was excluded from Global Proteins businesses, this will be
investigated as part of Scope 3 and LCA assessments in 2025
Purchased goods and services
IT services, maintenance, office equipmentAllDifficult to obtain/minimal/not reported
Cold storageMAPNo data available
Capital goods
Extraction, production, and transportation of capital goods
purchased or acquired by companies in the reporting year
AllNo data available
Processing of sold products
Processing of intermediate products sold in the reporting
year by downstream companies (e.g., manufacturers)
All production-based businessesNo data available
Use of sold products
End use of goods and services sold by companies in the
reporting year
All production-based businessesNo data available
End of life treatment of sold productsRendering wasteAll production-based businesses
Not currently included in footprint calculation as currently have no emission factor for this waste.
Will be included in Scope 3 assessment in 2025
LA = Scales’ 2024 Scope 1 and 2 GHG emissions are subject to a limited assurance engagement by Deloitte Limited. “LA” denotes the aspects of Scales’ GHG emissions that have been subject to limited assurance by Deloitte Limited.
* Heating, ventilation and air conditioning (HVAC).
** See appendix for company details.
5. Metrics and Targets (continued)
Scales Corporation Limited, Climate-Related Disclosures Report 2024
28

5. Metrics and Targets (continued)
5.3 Vulnerability to physical and transitional risks/opportunities
Our assessment to date of the exposure of Scales to climate-related risks is that there is variance across
geographies and business divisions.
5.3.1 Vulnerability to physical risks
Due to the vertically integrated nature of our Horticulture division, this division is more exposed to both
chronic and acute climate events. Logistics is also exposed to this risk, due to its integrated value chain
with Horticulture.
Global Proteins, while less exposed, still may be impacted by changes in weather patterns and extreme
weather effects on raw material supply. However, the available climate data and spatial resolutions vary
considerably across the geographies in which we operate, with limited hazard data available beyond
New Zealand.
As a conservative estimate, as in 2023, based on our internal assessment to date, all of Scales’ business
activities are exposed to some degree of physical climate risks.
5.3.2 Vulnerability to transition risks
The Horticulture division is currently most exposed to climate-related regulation for orchard/farming
practices (e.g water and land use).
Global Proteins also has some exposure to climate-related regulation changes as it is reliant on upstream
raw material supply. However, it is also more aligned with consumer preference changes due to the sector/
market/ customer mix.
As a conservative estimate, as in 2023, all of Scales’ business activities are exposed to some degree of
climate-related transition risks.
5.3.3 Climate-related opportunities
As mentioned above, Global Proteins is more aligned to customer sustainability changes in its sector/
market and customer mix. This presents a risk, but also an opportunity if we align our strategy correctly. An
example, presented in Ta b l e 3, is being able to align our sustainability programme with our Global Proteins
customers, creating stronger relationships and increasing demand.
Due to this reason, as in 2023, we consider the Global Proteins division at 45.6% of the group's revenue, is
the only business activity currently aligned to material climate-related opportunities.
5.4 Capital deployment 2024
Note this represents capital expenditure figures that have been adjusted for equity ownership.
Ta b l e 8 : Capital deployment in relation to climate-related initiatives in 2024
BuDescriptionAmountTransition Initiative
2024
GPUpgrading Shelby Wastewater plant at Amarillo plant $650kDecarbonisation roadmap
GP
Upgrading refrigeration compressors to improve plate
freezer efficiency
$109kDecarbonisation roadmap
HortInstall of stage 1 of a new apple washer$950k
Decarbonisation roadmap pest & disease
management
Hort14 New Tractors & 2 Utes$1 millionDecarbonisation roadmap
2023
GPInvestment in new joint ventures (MAP and Esro)$11.9 million
Diversification of supply, and
decarbonisation roadmap (new plants,
more efficient equipment)
GP
Upgrading refrigeration plant at Meateor NZ’s Hastings site
and an upgrade of the boiler at Shelby’s Amarillo site
$1.14 millionDecarbonisation roadmap
5.5 Industry based metrics
We have disclosed tCO2 and tCO2/million dollars revenue, which are widely adopted metrics across all our
related industries. Other relevant industry-based metrics (if any) will be assessed when we set targets and
metrics in 2025.
Scales Corporation Limited, Climate-Related Disclosures Report 2024
29

6.
Tar g e t s
30
Scales Corporation Limited, Climate-Related Disclosures Report 2024

6.1 Scales’ Targets
As explained above, Scales intends to set Group targets in 2025, once we have completed a limited
assurance engagement over our Emissions Inventory and set our GHG emissions baseline. We also intend
to further develop our reporting and measuring of key sustainability aspects affecting Scales’ businesses as
represented in our annual report.
6.1 Mr Apple Targets
Mr Apple is the only business unit within Scales that had emissions targets in place (Ta b l e 9) in 2024. These
were set in late 2018 with a target date of 2024. As at 31 December 2024 Mr Apple has surpassed four of the
targets set in 2018, with the exception of ‘Reduce fuel usage by 5%’ as noted from 2023 to 2024 Mr Apple
reduced reliance of external transport providers and utilised their own fleet moving emissions from Scope 3
to Scope 1.
For 2024 Mr Apple emissions were captured in the in the Toitū emanage system, but only Scope 1 & 2 have
been assured by Deloitte Limited under a limited assurance engagement in line with the group assurance
approach. The Mr Apple targets will be reset in 2025 in line with the strategy refresh. Once they have been
reset, they will feed into the Group targets.
Mr Apple’s Emissions Target: Carbon intensity goal of 1 per cent reduction in GHG emissions for Scope 1, 2
and mandatory Scope 3 emissions per million dollars gross turnover between 2018 – 2024. The emissions
goal is intensity based, and until 2023 was aligned with Toitū’s carbon reduce programme in 2018. However,
it is not a verified science- based target and therefore we cannot confirm it aligns with limiting global
temperature rise to 1.5°C.
The base year for Mr Apple’s emissions reduction target and initiatives is 2018. These targets and initiatives
do not rely on any offsets.
5. Targets (continued)
Ta b l e 9 : Mr Apple Targets
Ta r g e tProgress 2018-2024Initiatives to Date
Reduce Scope 1, 2 and measured
Scope 3 GHG emissions intensity
by 1% per million dollars revenue
between 2018–2024
3% (2023: 6%)
reduction from 2018
As per below.
Reduce paper use by 10% per
annum between 2018–2024
15% (2023: 18%)
average annual
reduction since 2018
On-going initiatives and focus from paper to digital and
moving to light weight paper, has meant from 2018-
2024 a 15% average annual reduction was achieved,
exceeding the 10% target.
Reduce waste to landfill by 30%
between 2018–2024
66% (2023: 44%)
reduction from 2018
Hand dryers instead of paper towels implemented
at Whakatu Packhouse, implementation of liner-
less labellers, a move to compostable cups in the
packhouse and education and engagement with sites
to increase the volume of waste recycled.
Reduce electricity consumption
by 3% between 2018–2024
26% (2023: 12%)
reduction from 2018
LED replacements across accommodation facilities,
using Demand Flex* where possible.
Reduce fuel usage by 5%
between 2018–2024
19% (2023: 1%)
increase from 2018 **
The increase in vehicle fuel usage within Mr Apple
reflects reduced reliance on external transport
providers, as more transportation movements were
completed using our own fleet (external transport
providers’ fuel usage is not included in this metric).
** Overall, despite the increase in fuel use internally, reductions in
overall fuel use across Mr Apple’s operations and from external
transport providers mean that Mr Apple’s domestic freight and
fuel emissions (comprising our own fleet and external transport
providers), are 12% lower than the 2018 base year.
Continued monitoring using eRoad, continued
proactive maintenance, investigating options for
replacing petrol orchard equipment with electric where
applicable, continued focus on replacing old machinery
with more efficient, new machinery, reduced trucking
movements.
*Demand Flex is a programme from Simple Energy that enables users to be rewarded for ‘flexible’ electricity usage
** eRoad provides driver-facing telematics that improves safety, streamlines business operations and improves profitability
Scales Corporation Limited, Climate-Related Disclosures Report 2024
31

Appendix
32
Scales Corporation Limited, Climate-Related Disclosures Report 2024

Scales Group
Scales Group comprises the following divisions:
Global Proteins: processing and marketing of proteins such as pet food ingredients, edible meat and offal products. Meateor Foods Limited, Meateor Foods Australia Pty Limited, Meateor Group Limited, Meateor US LLC,
Shelby JV LLC Group (Shelby Cold Storage LLC, Shelby Exports Inc, Shelby Foods LLC, Shelby JV LLC, Shelby Properties LLC, Shelby Trucking LLC), Meateor GP Limited, Meateor Pet Foods Limited
Partnership, Scales FI Group Holding Pty Limited, Meateor Australia Pty Limited, FI Group Holding Pty Limited Group (FI Group Holding Pty Limited, Fayman International Group Pty Limited and Fayman New
Zealand Limited), ANZ Exports Pty Limited and Esro Petfood B.V.
Horticulture: orchards, fruit packing, juice concentrate processing and marketing. Mr Apple New Zealand Limited, New Zealand Apple Limited, Fern Ridge Produce Limited, Longview Group Holdings Limited and Profruit
(2006) Limited.
Logistics: logistics services. Scales Logistics Limited and Scales Logistics Australia Pty Ltd.
Other: Scales Corporation Limited, Geo. H. Scales Limited, Scales Employees Limited, Scales Holdings Limited and Selacs Insurance Limited.
Appendix
Operating Entities

ScopeEmissions CategoryActivityReason for Exclusion
GroupScales Corporation LimitedSCLDiversified agribusiness investor, listed on the New Zealand Stock Exchange.
Horticulture
Mr Apple New Zealand LimitedMRA
Mr Apple New Zealand Limited is a wholly-owned subsidiary company of Scales Corporation Limited. New Zealand’s largest fully vertically integrated apple business, based in Hawke’s Bay.
It includes the following legal entities:
• Mr Apple New Zealand Limited
• New Zealand Apple Limited
• Longview Group Holdings Limited
Profruit (2006) LimitedProfruit
Wholly-owned manufacturer of high-quality apple, kiwifruit and pear juice concentrates, located in Hawke’s Bay. In June 2024 Scales increased its shareholding of Profruit from 50% to 100%. Emissions for
Profruit have been consolidated into the Group emissions at a weighted average of 75% for 2024.
Fern Ridge Produce LimitedFernridgeWholly-owned fresh produce exporter in Hawke’s Bay.
Global
Proteins
Meateor Pet Foods LPMFLP50% owned NZ joint venture that procures, processes and sells petfood ingredients both domestically and internationally. It operates processing plants in Hastings and Dunedin.
Fayman International GroupFIG50% owned Australian joint venture, that is an edible protein exporter.
ANZ Exports ANZ42.5% owned Australian joint venture that is an edible protein exporter and importer.
Shelby JV LLC60% owned US joint venture that procures, processes and sells petfood ingredients domestically. Shelby operates a processing plant in Amarillo Texas, and contracts with toll processing sites across the US.
Meateor Foods LimitedMFIWholly-owned global exporter of petfood ingredients from Australia and other markets.
Meateor Australia Pty LimitedMAP
50% owned Australian joint venture that procures, processes and exports petfood ingredients with a processing facility in Melbourne. In June 2024, Scales increased its shareholding of MAP from 33% to 50%.
Emissions for Meateor Australia Pty Limited have been consolidated into the Group emissions at a weighted average of 42% for 2024.
Esro Petfood B.VEsro
50% owned European joint venture that procures, processes, and sells petfood ingredients predominantly to the Europe market. Currently has two processing facilities one in Hoeselt, Belgium and the other in
Nuenun, Netherlands.
Logistics Scales Logistics LimitedLogistics
Wholly-owned logistics service provider.
The services of Scales Logistics include:
• Ocean freight services to exporters and importers of perishable products, with offices in Auckland, Christchurch, Tauranga, Hawke’s Bay and Melbourne
• Air freight services, including chiller facilities in Christchurch and Auckland together with warehousing facilities in Christchurch
Scales Corporation Limited, Climate-Related Disclosures Report 2024
33

Independent Limited Assurance Report on Selected Greenhouse Gas
(‘GHG’) Disclosures Included within the Group Climate Statements for Scope
1 and 2 GHG emissions
To the Shareholders of Scales Corporation Limited
Limited assurance conclusion
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 Scope 1 and 2 gross GHG emissions, additional required
disclosures of gross GHG emissions, and gross GHG emissions methods, assumptions and estimation
uncertainty, within the scope of our limited assurance engagement (as outlined below), included in the
Group Climate Statements of Scales Corporation Limited (the ‘Company’) and its subsidiaries (the ‘Group’)
for the year ended 31 December 2024 (the ‘Selected GHG Disclosures’), are not fairly presented and not
prepared, in all material respects, in accordance with Aotearoa New Zealand Climate Standards (‘NZ CSs’)
issued by the External Reporting Board (‘XRB’), as explained on page 3 of the Group Climate Statements.
Scope of assurance engagement
We have undertaken a limited assurance engagement over the Selected GHG Disclosures on pages 23 to
28 of the Group Climate Statements for the year ended 31 December 2024:
Subject matter: Selected GHG DisclosuresReference
GHG emissions: gross emission in the metric tonnes of Carbon dioxide equivalent (‘CO
2
e’)
classified as:
•
Sc
ope 1
•Scope 2 (calculated using the location-based method)
Page
25
Additional requirements for the disclosure of gross GHG emissions per paragraph 24 (a) to (d)
of Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (‘NZ CS 1’), being:
•The statement describing the GHG emissions have been measured in accordance with the
Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition,
2015) (the ‘GHG Protocol’) to the extent this pertains to Scope 1 and 2 GHG emissions
•The statement that the GHG emissions consolidation approach used is equity-share, to the
extent this pertains to Scope 1 and 2 GHG emissions
•
Sources of Scope 1 and 2 emission factors and the global warming potential (‘GWP’) rates
used or a reference to the GWP source
•
T
he summary of specific exclusions of Scope 1 and 2 GHG emissions sources (if applicable),
including facilities, operations or assets with a justification for their exclusion
Pages
24 to 28
Disclosures relating to GHG emissions methods, assumptions and estimation uncertainty per
paragraphs 52 to 54 of Aotearoa New Zealand Climate Standard 3: General Requirements for
Climate related Disclosures (‘NZ CS 3’):
•Description of the methods and assumptions used to calculate or estimate Scope 1 and 2
GHG emissions, and the limitations of those methods
•
D
escription of uncertainties relevant to the Group’s quantification of its Scope 1 and 2 GHG
emissions, including the effects of these uncertainties on disclosures
Page
26 to 27
Our engagement has not covered Scope 3 GHG emissions as the Group is taking advantage of the
new one-year adoption provision relating to the assurance of Scope 3 GHG emissions for the year
ended 31 December 2024.
Scales Corporation Limited, Climate-Related Disclosures Report 2024
34

Our limited assurance engagement does not extend to any other information included, or referred
to, in the Group Climate Statements on pages 3 to 21 and 29 to 33. We have not performed any
procedures with respect to the excluded information and, therefore, no conclusion is expressed on it.
Other matter – comparative information
The comparative GHG disclosures (that is GHG disclosures for the periods ended 31 December
2023) have not been the subject of an assurance engagement undertaken in accordance with New
Zealand Standard on Assurance Engagements 1: Assurance Engagements over Greenhouse Gas
Emissions Disclosures (‘NZ SAE 1’). These disclosures are not covered by our assurance conclusion.
Director’s responsibilities for the GHG disclosures
Directors are responsible for the preparation and fair presentation of the Selected GHG disclosures
in accordance with NZ CSs, which includes determining and disclosing the appropriate standard
or standards used to measure the Group’s GHG emissions. This responsibility includes the design,
implementation and maintenance of internal controls relevant to the preparation of GHG disclosures
that are free from material misstatement whether due to fraud or error.
Inherent uncertainty in preparing Selected GHG Disclosures
Non-financial information, such as that included in the Group’s Climate Statements, 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, as discussed on page 3 of the Group Climate Statements, 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 NZ CSs
are undertaken on a test basis, our limited assurance engagement cannot be relied on to detect
all instances where the Group may not have complied with the NZ CSs. Because of these inherent
limitations, it is possible that fraud, error or non-compliance may occur and not be detected.
In addition, we note that a limited assurance engagement is not designed to detect all instances
of non-compliance with the NZ CSs, as it generally comprises making enquires, primarily of the
responsible party, and applying analytical and other review procedures.
Our responsibilities
Our responsibility is to express an independent limited assurance conclusion on the Selected GHG
Disclosures, based on the procedures we have performed and the evidence we have obtained.
We conducted our limited assurance engagement in accordance with NZ SAE 1 and ISAE (NZ) 3410,
issued by the XRB. These standards require that we plan and perform this engagement to obtain limited
assurance about whether the Selected GHG Disclosures are free from material misstatement.
Our independence and quality management
We have complied with the independence and other ethical requirements of NZ SAE 1, which is founded
on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality
and professional behaviour.
We have also complied with the following professional and ethical standards:
• Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners (including
International Independence Standards) (New Zealand)
• 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 us 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; and
• Professional and Ethical Standard 4: Engagement Quality Reviews
Our firm is the statutory auditor of the Group consolidated financial statements and also carries out other
assurance services including the assurance on the solvency certificate, an audit of the charging group
financial statements and a greenhouse gas emissions assurance readiness engagement. We have also
been engaged to provide tax compliance services, but these have not yet commenced. These services
have not impaired our independence as assurance practitioner of the Group. In addition to this, partners
and employees of our firm deal with the Group on normal terms within the ordinary course of trading
activities of the business of the Group. Our firm has no other relationship with, or interest in the Group.
As we are engaged to form an independent conclusion on the Selected GHG Disclosures prepared by
the Group, we are not permitted to be involved in the preparation of the GHG information as doing so
may compromise our independence.
Scales Corporation Limited, Climate-Related Disclosures Report 2024
35

Summary of work performed
Our limited assurance engagement was performed in accordance with NZ SAE 1 and ISAE (NZ) 3410.
This involves assessing the suitability in the circumstances of Group’s use of NZ CSs as the basis for the
preparation of the Selected GHG Disclosures, assessing the risks of material misstatement of the Selected
GHG Disclosures whether due to fraud or error, responding to the assessed risks as necessary in the
circumstances, and evaluating the overall presentation of the Selected GHG Disclosures.
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,
observation of processes performed, inspection of documents, analytical procedures, evaluating the
appropriateness of quantification methods and reporting policies, and agreeing or reconciling with
underlying records. In undertaking our limited assurance engagement on the Selected GHG Disclosures, we:
• Obtained, through inquiries, an understanding of the Group’s control environment, processes and
information systems relevant to the preparation of the GHG disclosures. We did not evaluate the design of
particular control activities, or obtain evidence about their implementation.
• Evaluated whether the Group’s methods for developing estimates are appropriate and had been
consistently applied. 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.
• Considered the presentation and disclosure of the GHG disclosures.
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. Accordingly, we do not express a reasonable
assurance opinion about whether Selected GHG Disclosures are fairly presented and prepared, in all
material respects, in accordance with NZ CSs.
Use of our Report
Our assurance report (‘our Report’) is intended for users who have a reasonable knowledge of
GHG related activities, and who have studied the GHG related information in the Group Climate
Statements with reasonable diligence and understand that the GHG disclosures are prepared and
assured to appropriate levels of materiality.
Our assurance report is made solely to the Group’s shareholders, as a body. Our limited assurance
engagement has been undertaken so that we might state to the Group’s shareholders those
matters we are required to state to them in our report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the
Group’s shareholders as a body, for our work, for our report, or for the conclusions we have formed.
Nicole Dring, Partner
for Deloitte Limited
Christchurch, New Zealand
22nd April 2025
Scales Corporation Limited, Climate-Related Disclosures Report 2024
36

52 Cashel Street, Christchurch 8013, New Zealand
www.scalescorporation.co.nz
Scales Corporation Limited