ArborGen Climate Statements FY 2025
1
Table of Contents
Introduction 2
Governance 3
Strategy 4
Risk Management 16
Metrics and Targets 17
Appendix 1: Methods, assumptions and limitations 25
Appendix 2: ArborGen's scenario analysis 28
Appendix 3: ArborGen's impact assessment for climate-related risks and
opportunities 33
Appendix 4: GHG emissions inventory 37
Appendix 5: Independent assurance report 43
IMPORTANT NOTICE
ArborGen makes no representations as to this report’s accuracy, completeness or reliability, in particular in relation to
assumptions regarding future events. It expressly disclaims responsibility for, and makes no representation, and gives
no warranty, assurance or guarantee, as to the accuracy, completeness, or reliability of any contents of this Report. To
the greatest extent possible under New Zealand law, it also expressly disclaims all liability for any loss (direct, indirect,
consequential, or otherwise) or damage arising from the use of this Report.
Climate Statements
FY 2025
2
Welcome to our FY25 Climate Statements
As a horticultural business, ArborGen Holdings Limited’s (ArborGen, "we" or "our") operations are inherently
linked with climate. Climate change presents both risks and opportunities for our business. Identifying,
monitoring, mitigating and responding to climate-related events forms an integral part of ArborGen’s strategy
and operations. ArborGen uses climate related risk and opportunities to understand how we serve people,
customers and shareholders, govern the company and protect the natural environment.
This report contains our second climate statements under the Aotearoa New Zealand Climate Standards and
covers ArborGen's financial year from 1 April 2024 to 31 March 2025.
We have provided our current assessment of the climate-related impacts, risks, and opportunities material and
relevant to ArborGen's business. This report is a point-in-time assessment based on assumptions regarding the
future which are inherently uncertain, often outside our control and likely to change. Where relevant, these
limitations are set out in this report.
We will continue to monitor the potential impacts of climate change on our business.
For this year, ArborGen has elected to use the following adoption provisions:
Adoption provision Commentary
Adoption provision 2:
Anticipated financial impacts
A qualitative description of the anticipated financial impacts has been
provided for the identified climate-related events.
Adoption provision 4:
Scope 3 GHG emissions
Scope 3 emissions have not been reported in our second reporting period.
Adoption provisions 6 and 7:
Comparatives and trends
ArborGen has provided one year of comparative information for each
metric.
Adoption provision 8: Scope
3 GHG emissions assurance
ArborGen is not required to have an assurance engagement over its Scope
3 GHG emissions.
ArborGen confirms these climate statements comply with the Aotearoa New Zealand Climate Standards.
David Knott George Adams
Chairman of the Board Chair Climate Committee
31 July 2025
3
Governance
Board of Directors
The ArborGen Board is responsible for the oversight of climate-related impacts, risks and opportunities. Due to
the size and nature of the business, the whole Board takes overall responsibility for sustainability and climate-
related risks and opportunities. The Board also reviews ArborGen's ESG and sustainability policies regularly.
The ArborGen Directors possess competencies in this area and all Directors are responsible for continuous
training and keeping themselves informed on relevant climate issues. ArborGen's Board competency framework
includes skills and experience relating to climate risk as a relevant consideration. The Board will continue to
have information from relevant climate experts as part of the Board schedule to monitor new developments.
To assist the Board, the Audit and Risk Committee (ARC) identifies and considers all relevant climate matters at
least annually and as significant risks and opportunities arise. ArborGen has also engaged external experts to
provide additional knowledge and assist with disclosures and reporting.
The Board generally meets at least four times per year and receives recommendations and insights from
management and the ARC, including on climate-related issues. The Board reviews these reports and ensures
proper implementation of internal controls and risk management processes. As part of its annual strategy
review, the Board considers the influence of climate change and devises strategies for the short, medium and
long term.
ArborGen is at the early stage of its climate reporting journey and will continue to consider appropriate targets
and initiatives.
Management’s role
Day-to-day responsibility for identifying and
implementing strategic initiatives related to climate
risk and carbon emissions sits with the executive
team.
ArborGen's VP of Operations has delegated
responsibility from the CEO to identify, manage and
report climate-related issues.
Management report to the ARC, and the Board, on
climate-related risks and opportunities on a quarterly
basis. Management is responsible for assessing the
impact of climate on the business and ensuring
mitigation plans are in place.
Board
• Oversight and governance
Audit and Risk Committee
• Additional risk assessment of climate related activities
• Review appropriate countermeasures to mitigate risks
Management
• Vice President of Operations – ensures overall climate
risks are continuously assessed and reviewed. Ensures
controls are in place to mitigate risks
• Chief Financial Officer – ensures compliance to
policies, ensure risks are appropriately assessed and
scenario analysis is financially assessed and reported.
Each business unit is also tasked with identifying climate-related risks and opportunities relevant to their
function. ArborGen's risk register is updated with any new material information.
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Strategy
ArborGen is the leading provider of advanced genetics seedlings for the forest industry. We use our technology
platform, production capabilities and sales and marketing to transform forest productivity.
ArborGen is committed to conducting business in the right way, ethically and in line with legal and regulatory
obligations, to ensure we add long term value to staff, contractors, shareholders and other stakeholders. Our
ESG principles provide meaning beyond just commercial gain, and look to how we serve our stakeholders,
govern the company and protect the natural environment for now and the future.
Current climate-related impacts
As a horticultural business, climate risks are inherent to the sector. Managing these risks is a critical part of
business management and a specific item in our risk register. In addition, the increasing emphasis on the role
trees can play in offsetting carbon emissions through sequestration is creating new climate-related
opportunities for ArborGen.
Currently ArborGen has sites across the southern part of the United States (Alabama, Arkansas, Georgia,
Florida, Texas, and South Carolina) and multiple locations in Brazil (mainly in the southern regions).
As our business operates mostly outdoors, we face risks from excessive rains, hail, freezing, hurricanes, drought
and excessive heat. In the past, we have had entire crops destroyed at individual locations due to extreme
weather events. In the current reporting year, ArborGen experienced impacts from several extreme climate-
related events across its sites and areas of business, which have been qualitatively and quantitatively measured
using available data. Therefore, ArborGen knows what extreme weather can do to our business.
Climate and weather and the impacts it can have on our business are, and have been, ingrained into our
business practices for more than 30 years. We feel confident that we have already taken many steps to protect
our assets from extreme weather, in particular excessive rains.
Table 1: Current climate-related impacts
Business area
ArborGen’s current physical and transition climate-related impacts
for FY25
Business model (including
operations) and value chain
A series of extreme weather events across ArborGen’s Southern US
operations caused varying degrees of damage to nurseries and orchards.
Significant events included Hurricane Helene, which affected several
Southern US sites, drought, flooding and extreme rainfall in Brazil. This
impacted ArborGen’s planting and production practices that are both critical
for timely growth of seedlings and fulfilling customers' orders. Further detail is
provided below.
Operating costs The impact of extreme weather events on ArborGen has resulted in increased
insurance claims and operational costs due to damaged nurseries, orchards
and other infrastructure.
While it isn’t a material impact in this current reporting year, ArborGen will
continue to monitor insurance claims related to climate-related events.
ArborGen has acknowledged that the costs incurring from damage to our key
infrastructure and product, could be material in the future.
Based on this history, and our current strategy, we consider that we are well positioned to mitigate risks and
respond to opportunities arising from the transition to a low-emissions, climate resilient future.
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Table 2: ArborGen’s current climate-related impacts and financial impacts
Climate-related
event Current impacts Financial impact
Supplementary methods,
assumptions and
limitations
Hurricane
Helene
In September 2024,
ArborGen experienced the
impacts of Hurricane Helene
across several of its
Southern US sites, causing
varying degrees of damage
to nurseries and buildings.
The hurricane impacted
some of ArborGen’s
customers in Southern US,
particularly South Carolina
and Georgia. In response to
damage caused to
customers’ properties and
plantations ArborGen saw
an additional 2-3 million
seedling sales immediately
following the hurricane.
The impact on ArborGen
caused by Hurricane Helene
resulted in insurance costs
of US$82,000 to repair
damaged buildings.
The increased sales of
seedlings driven by customer
demand to replenish
damaged stock provided
ArborGen with an additional
revenue of ~ US$325,000 -
$488,000.
ArborGen experienced a loss
of 35.7 million MCP
seedlings from the impact of
Hurricane Helene on its
Newington and Vidalia
Georgia orchards which are
near the coastline. The
quantity of lost seedlings
results in a US$7 million loss
in revenue for ArborGen's
sales next year.
Estimates and modeling
were used to determine the
impacts financially of the
hurricane or, as in the case
of the insurance
information, known actual
losses were available. As
estimates, they have
limitations such as the
availability of information,
the assumptions applied
and the judgment of
management. Users should
be aware that estimates are
subject to change as new
information becomes
available or as
circumstance evolve. In
these estimates, the most
up to date and current
information was utilised in
preparation.
6
Climate-related
event Current impacts Financial impact
Supplementary methods,
assumptions and
limitations
Drought in Brazil From July to Oct 2024,
ArborGen experienced a
prolonged drought that led
to a significant reduction in
ArborGen’s production
capacity and severely
affected its customers'
ability to plant. The impact
to production resulted in a
loss of 2,542,881 eucalyptus
seedlings sold during the
drought period.
The drought impacted
ArborGen’s ability to grow its
next rotation of seedlings
due to a lack of space and
labour. The impact was
further exacerbated by
extreme rainfall during the
La Niña season in the
southeast and northeast
regions of Brazil and led to a
seedling shortage of
1,978,000 from January to
March 2025. ArborGen
anticipates that it will
recover the revenue lost
from reduced sales during
the drought in FY26.
ArborGen had to discard
1,600,000 seedlings across
its nurseries in Brazil
because of the drought; they
didn’t meet market
requirements.
Although the cost for water
supply wasn’t substantial, to
maintain a sufficient supply
of water to its sites,
ArborGen invested in
building additional water
tanks and hired water trucks
to ensure a continuous
supply of water for several
days.
ArborGen experienced an
overall financial impact of
R$7,079,705.12 (US$1.2
million) from the impact to its
production and sales caused
by the drought.
ArborGen has invested
approximately R$470,000
this current reporting year to
build new water tanks and
complete other
improvements for resilience
against water scarcity in
Brazil.
ArborGen has determined
the total financial impact
caused by the drought by
identifying the impacts to
revenue from unsold
seedlings (R$2,037,719.45),
the impact to cost in
production, discarded
seedlings (approximately
1,600,000 seedlings) and
seedlings sold at a higher
unitary cost
(R$5,041,985.68).
The impact on ArborGen’s
revenue and production
costs caused by the
drought are those effects
not related to inflation or
changes in planning
processes made by
deliberate decision-making.
ArborGen cannot determine
the exact impact of the lack
of labour availability during
and following the drought
period, but correlation
between customers that
were unable to plant during
the drought and a surge in
demand for planting
following the drought
resulted in a lack of labour
for ArborGen to continue
producing new seedlings.
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Climate-related
event Current impacts Financial impact
Supplementary methods,
assumptions and
limitations
Flooding and
extreme rainfall
events in Brazil
During April and May 2024,
Southern Brazil experienced
significant flooding, causing
a delay in sales. ArborGen
recovered the lost revenue
in the following months
once shipments resumed.
The flooding did not have a
major impact on ArborGen
overall, but it did result in
the loss of approximately
300,000 eucalyptus
seedlings.
Northeast Brazil and Minas
Gerais state experienced
extreme rainfall events
during the La Niña season in
December 2024 and January
2025. The rain events that
followed a prolonged
drought impacted the
growth of seedlings and
resulted in 1,978,000 less
seedlings available to sell.
The impact to revenue from
the unavailable seedlings
was R$2,544,770.
The impact to revenue and
production costs on
ArborGen’s operations in
Brazil has resulted from the
cascading effect of drought
and extreme rainfall during
the La Niña season,
therefore ArborGen cannot
disclose the impacts of
each event in isolation.
Climate scenario analysis
To prepare our first climate statements under the Aotearoa New Zealand Climate Standards, we conducted a
standalone climate scenario
1
analysis process in FY24 to identify material climate-related impacts, risks and
opportunities across three different futures and test our business. Scenario analysis is a strategic tool for
understanding and exploring how the future may develop under conditions of uncertainty. The outcome of this
process was used to inform ArborGen's strategy. Full details of ArborGen's climate scenario analysis can be
found in Appendix 2.
ArborGen continues to believe that this scenario analysis is appropriate for its business at this time.
Impact assessment of climate-related risks and opportunities
The key climate issues and related physical and transition impacts for ArborGen are in Appendix 3.
We will continue to monitor and consider these risks and opportunities as part of our internal capital
deployment and funding decisions. Climate related risks and risk mitigation is one of the criteria for capital
deployment and funding decisions as it is a key for risk mitigation. For example, we are currently reviewing
investments in key locations both in South America and the Southern US to ensure production is diversified
across the region. Additionally, ensuring production is split across a diverse area will mitigate not only weather-
related events, but also ensure supply chain risks are mitigated. All funding decision are made by the ArborGen
leadership team, which includes the CEO, CFO, Vice President of Operations, and the Sales Director. All
investments are also taken to the Board for approval.
1
Climate scenarios are plausible and challenging descriptions of how the future might look; they are not predictive or
probabilistic. Scenario pathways are developed based on a coherent and internally consistent set of assumptions about key
driving forces and relationships covering both physical and transition risks in an integrated manner.
8
Transition Planning
ArborGen's transition planning identified priority strategic actions and pivots to prepare for and respond to its
climate-related risks and opportunities identified above. These actions also address critical uncertainties
affecting its business model and strategy. ArborGen has identified actions to support the company in building
resilience to critical uncertainties, manage its risks and position itself to seize opportunities.
Table 3: Key actions to respond to climate-related risks and opportunities
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Weather related
events including
excessive sudden
rain, freeze events,
drought conditions,
hurricanes
ArborGen uses Key
Performance Indicators
(KPIs) to monitor the
performance and
resilience of orchards and
nurseries. These measures
indicate when a site isn’t
producing high quality or
quantities of seedlings;
this may trigger
investigation into the
impact of climate-related
events and how ArborGen
might respond to increase
protection.
To protect exposed sites,
ArborGen implements
practices where possible,
such as switching
products and soil mixes
and keeping a secure seed
inventory. This provides a
rich nutrient base for
seedlings to grow and
allows flexibility to move
around nurseries to
replenish damaged sites.
ArborGen regularly
implements crop rotations
to support the condition of
the soil – and thus the
quality of the seeds it
produces.
Technology
Technology and smart
machinery can support
ArborGen’s resilience and
preparedness for climate
risks. ArborGen has
invested in a GPS program
that enables the company’s
tractors to operate
following drainage mapping
of natural and constructed
drainage systems within
ArborGen’s sites. This
reduces the risk of
disrupting water courses
and increases the quality of
the soil to support
successful seedling
development.
ArborGen will monitor
developments in and
availability of technologies
that provide more
capability to protect
orchards and nurseries
from extreme weather,
such as freeze protection
for seedlings. Freeze events
can impact ArborGen’s
seed volumes and
harvests, particularly in
South Carolina.
Technology
Capital deployment:
ArborGen has invested
US$112,500 in improving
the GPS mapping
capabilities for 15 of its
tractors.
Diversification
ArborGen is investing
R$1,884,500.00 in the
current reporting year to
develop new growing areas
across its nurseries in
Martinho Campos
(Southeast Brazil), Ribas do
Rio Pardo (Central West
Brazil) and Teresina
(Northeast Brazil). This will
allow ArborGen more space
to manage its seedlings in
case of future extended dry
seasons, improve seedling
quality, and also expand
production capacity in case
of no drought.
9
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Climate change risk
assessment
Future impacts of climate
change on ArborGen’s sites
are uncertain. ArborGen
needs a clearer path on its
mitigation strategy to support
its direction and decision-
making. To achieve this,
ArborGen will investigate
completing physical climate
change risk assessments for
its sites. This will increase
ArborGen’s understanding
and awareness of where its
greatest vulnerabilities lie
across its operations,
informing where it prioritises
investment to increase
resilience and develop
response plans.
Diversification
ArborGen will continue to
monitor the market for
investment and diversification
opportunities to reduce its
risk and isolated exposure to
extreme weather, particularly
for its Brazilian operations.
When considering a new
investment, feasibility
assessments of locations
include analysing data on
climate, weather and
topography maps. This
provides ArborGen with an
understanding of the level of
risk and exposure to climate
hazards and to inform the
suitability for a nursery or
orchard.
By keeping a diverse portfolio
of orchards and nurseries,
ArborGen may increase the
level of resilience in its
seedling supply. For
ArborGen’s existing sites that
are most exposed to extreme
weather, ArborGen is
investigating parametric
insurance to provide
protection against the risk of
catastrophic weather events.
10
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Climate change
disrupts supply
chain including
labour
ArborGen prioritises
ethical employment
relations. All of ArborGen’s
employee contracts have
policies for ethical
practices and employee
arrangements and
incentives. Labour in the
US is mostly outsourced
through agreements with
suppliers. These labour
supply agreements allow
ArborGen greater security
in the supply of labour
during peak seasons, but
as climate change
exacerbates the
competition for labour
ArborGen must be
prepared to adapt to
shortages in supply.
Automation
While many of ArborGen’s
operations are manual
activities requiring labour,
the opportunities to
automate processes with
machinery and technology
can enable ArborGen to
increase efficiencies and
provide greater business
continuity during extreme
weather events where
accessibility of labour is
impacted.
For example, drone
technology can provide
more efficient data of seed
inventories and crop
condition. This can
contribute positively to
ArborGen’s production and
harvests.
Automation
ArborGen has invested
US$140,000 in drone
technology that provides
greater efficiencies in crop
management and can
support ArborGen’s
resilience in its
productions and harvests.
11
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Failure to meet
customer and
stakeholder
expectations
regarding climate
risks and their
management
ArborGen is actively
assessing and managing
its climate-related risks
and greenhouse gas (GHG)
emissions, driven largely
by New Zealand’s climate-
related disclosures
reporting regime.
While climate reporting is
becoming more common
globally, regulation for
climate risk reporting is not
yet mandated in the US or
Brazil. This gives ArborGen
an uplift against
competitors in these
countries by providing
primary users with
information on how it is
responding to its climate-
related risks and
opportunities and
integrating climate into
strategic planning and
repositioning.
The potential for
regulations and other
factors to shift may change
demand for ArborGen’s
core range of seedlings
and require a significant
change to ArborGen’s
business model. Increased
costs may also be incurred
from shifts in customer
preference towards Forest
Stewardship Council (FSC)
certified products.
Resource conservation
Where possible, ArborGen is
implementing practices to
conserve resources and
respond to customer
expectations by
demonstrating its
commitment to
environmentally conscious
practices and managing
climate risks. Initiatives can
be identified across
ArborGen’s operations,
production, supply chains
and other key areas of its
business.
ArborGen follows
recommended best practice
to minimise soil runoff and
erosion and use of
chemicals. Planting cover to
protect crops from harsh
weather like heat, extreme
winds and rain minimises
erosion and reliance on
synthetic fertilisers.
Water scarcity in Brazil can
impact ArborGen’s
operations. ArborGen will
explore what initiatives it
could implement to
minimise consumption and
re-use water to increase
ArborGen’s resilience during
drought or supply shortages.
Unreliable energy generation
and power supply in Brazil
mean ArborGen must
respond and build resilience
against energy shortages
from the grid. ArborGen will
investigate the feasibility of
generating its own supply of
energy at its orchards and
nurseries through installing
solar panels and other
methods of energy
generation to provide more
resilience.
ArborGen has invested
approximately R$470,000
this current reporting year
to build new water tanks
and complete other
improvements for
resilience against water
scarcity in Brazil.
12
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Long term planning and
risk assessment
ArborGen recognises the
value of integrating climate
risk and using climate-
related metrics to inform its
long-term planning. Applying
climate-related metrics to
monitor performance and
assess the preparedness of
its orchards and nurseries is
something ArborGen will
explore as a tool to increase
stakeholder confidence
particularly investor
expectations.
Industry partnering
ArborGen is a member of
various industry groups
including the Forest
Resources Association.
ArborGen actively monitors
market and regulatory
updates through its
relationships with industry
groups. Through its
involvement with
associations like the
American Forest
Foundation, ArborGen is
able to advocate for and
influence policy for
reforestation and uptake of
advanced genetic tree
seedlings.
Active partnerships with
carbon project developers
can leverage ArborGen’s
ability to contribute to
researching the carbon
credit market and advancing
the role of carbon
sequestration to increase
customer demand.
ArborGen will investigate
opportunities to increase
market awareness for its
product and the important
role it plays in increasing
carbon sequestration.
13
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Increased demand
for advanced
genetics seedlings
which have greater
resistance to
disease, weather
and pests
ArborGen is strategically
allocating resources
towards the cultivation of a
diverse range of seedlings
and investing into research
and development (R&D).
This aims to enhance and
broaden the product
portfolio, thereby
positioning the company
to better meet the
market’s increasing
demand for seedlings with
resistance to disease,
weather and pests.
As the market shifts
towards reforestation and
afforestation projects and
sustainable materials,
ArborGen could obtain a
greater market share and
enhanced competitive
advantage for its product.
Industry partnering
ArborGen intends to
prioritise partnerships with
projects and organisations
to collaboratively increase
investment into R&D.
ArborGen has an existing
partnership with an
international not-for-profit
tree breeding organisation –
Camcore. This partnership
leverages ArborGen’s ability
to be actively involved in tree
breeding, gene conservation
and environmental
stewardship. ArborGen will
prioritise its relationship
with Camcore to increase its
presence and accessibility
into the market and
participate in research and
development to improve
seedling quality.
Industry collaboration can
support ArborGen with
brand awareness and
customer engagement.
ArborGen recently co-
hosted a carbon credit
conference which enabled
ArborGen to demonstrate its
presence to the market and
its important role in the
uptake of carbon capture
projects. Continuing to
focus on opportunities to
increase brand awareness
can support ArborGen to
position itself to respond to
increasing customer
demand.
Carbon credit market
ArborGen is actively
monitoring growth in the
carbon credit market and
currently has one active
partnership with a carbon
developer and will continue
to investigate what further
partnerships it could form
with carbon project
developers.
ArborGen has invested
US$2.4M in FY25 and for
FY26 will invest another
US$2.7M.
14
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
As awareness and demand
for this market increases in
the US and Brazil, ArborGen
will explore the feasibility of
establishing a dedicated
team to track and identify
these opportunities. Having
a dedicated resource to
develop relationships and
secure contracts within the
carbon credit market can
strengthen ArborGen’s
position and reputation.
ArborGen will investigate
opportunities to promote
and advocate for the carbon
credit market in the US and
Brazil to leverage its
response to increasing
customer demand. Changes
in policy and regulation that
strengthen carbon market
incentives and provide the
private sector access to
carbon capture incentives
can significantly grow
ArborGen’s customer base.
Genetic research and
development
ArborGen has a strategic
focus on product
development and
continuously improving the
genetics of its seedlings
including developing greater
resistance to specific
climate stressors and
diseases. ArborGen is
introducing new selection
techniques, testing and
analysis to increase its
capabilities to respond to
customer demand.
ArborGen’s R&D team will
explore sustainable forestry
practices, such as reducing
chemical usage, minimising
soil erosion, and optimising
resource use. Actions to
prioritise conservation
aligns with investor
expectations for ESG
performance.
15
Risk / opportunity
Description of monitoring
risks/opportunity Key actions Capital deployment
Financial incentives
for reforestation and
promoting
sustainable forest
management
practices eg, carbon
credits
ArborGen is monitoring the
impact of financial
incentives for reforestation
and promoting sustainable
forest management
practices. ArborGen will
explore adopting
sustainable finance
incentives such as green
bonds, sustainability-
linked loans and impact
investments to increase
the sustainable
management and
operations of its
businesses, as well as
contribution to the
industry.
ArborGen is aware and
analyzing financial
instruments to attract
investors, some of these
instruments are prioritising
ESG (environment, social
and governance)
considerations,
diversifying funding
sources, and potentially
reducing borrowing costs.
Partnerships
To access and grow funding
and finance for sustainable
projects in the US and Brazil,
ArborGen may pursue
further partnerships with
carbon project developers
and other large reforestation
projects as well as not-for-
profit organisations.
ArborGen plays a key role in
sustainable forestry and the
carbon market and can
influence access to
sustainable finance
instruments providing dual
benefits for reforestation
efforts and demand for
ArborGen’s product.
ArborGen invested
US$800k in coolers
specifically for hardwoods
to utilise with our carbon
partners.
16
Risk Management
To identify and assess risks, ArborGen draws on our internal forestry specialists, external consultants, and
current published scientific literature from various universities, USDA, EPA, NOAA, PNA and other National
Forestry related entities. Assessment of these risks is conducted on a quarterly basis.
We assess our risks across all aspects of our value chain using the following time-horizons:
Table 4: Time horizons
Time horizon Year Rationale
Short term 2025-2032 1-7 years, aligned with seedling production cycle
Medium term 2033-2042 7-15 years, reflecting seedling maturation and the
increasing uptake of advanced genetics in the market
across the US and Brazil forestry sector
Long term 2043-2050 >15 years
Our risk assessment process considers the likelihood of the risk occurring and the likely severity of its
consequences. Given the evolving impacts of climate change, ArborGen also assesses the vulnerability of the
business to gradual and progressive impacts. We consider the hazard, exposure to the hazard, and the
vulnerability of the system or process to the hazard.
Climate related risks are integrated into ArborGen’s Risk Management Framework. This means that climate
change risks are tested and prioritised using the same methodology as all other risks.
Management reports on these risks to the ARC and the Board on at least a quarterly basis, including for
incorporation into ArborGen's Risk Management Framework if necessary.
Key operational risks, including climate risks, form part of the annual risk management plan approved by the
Board.
Our Risk Management Framework implements risk mitigation procedures for climate risks including:
• the geographical spread of production,
• tiling and field topography improvements,
• SOPs for soil moisture and other types of controls,
• irrigation systems, and
• the use of nets and other equipment to combat weather issues.
17
Metrics and Targets
ArborGen's greenhouse gas (GHG) emissions
ArborGen’s primary source of Scope 1 and 2 GHG emissions is electricity use and transport fuel emissions
associated with orchard equipment and business travel.
Table 5: Summary of ArborGen’s FY25 Scope 1 and 2 emissions
Scope Category FY25 Emissions
(tCO2-e)
FY24 Emissions
(tCO2-e)
Scope 1:
Direct emissions
Fuel – Diesel 1,258.91 990.2
Fuel – Petrol / Gasoline 735.99 690.8
Fuel - Other 55.26 94.7
Fertilisers 279.30
Subtotal Scope 1 2,329.37 1,775.7
Scope 2:
Indirect emissions
(location-based)
Purchased Electricity
Consumption
1,658.32 2,071.2
Subtotal Scope 2 1,658.32 2,071.2
TOTAL Scope 1 and 2
emissions
3,987.69 3,846.90
Full details of ArborGen's GHG emissions inventory, the methodology, data limitations, and exclusions can be
found in Appendix 4.
ArborGen has elected to rely on adoption provision 4 and not disclose its Scope 3 emissions at this stage
because it is continuing to work on improving the availability of quality data on its Scope 3 emissions.
Recorded Scope 1 and 2 emissions have increased from FY24 to FY25 due to the inclusion of fertiliser data this
year. On a like for like basis, ArborGen's reported Scope 1 and 2 emissions decreased from FY24 to FY25.
Assurance
ArborGen's Scope 1 and Scope 2 GHG emissions have been the subject of a limited assurance engagement. The
details of that engagement and the assurance opinion are provided in Appendix 5.
GHG emissions intensity
US$63.2m / 3,987.69= US$15,849 of total sales revenue (from ArborGen's FY25 Annual Report and Financial
Statements) per tCO
2
-e (Scope 1 and Scope 2 as per the inventory above). The FY24 figure was US$17,416.62
per tCO
2
-e.
US$18.2m / 3,987.69 = US$4,564 of gross profit (from ArborGen's FY25 Annual Report and Financial Statements)
per tCO
2
-e (Scope 1 and Scope 2 as per the inventory above). The FY24 figure was US$6,238.78 per tCO
2
-e.
The emissions intensity figures have increased due to reduced total sales revenue and gross profit this financial
year.
18
ArborGen's metrics for managing its climate-related risks and
opportunities
Climate reporting within the forestry sector is still developing. We are not aware of industry-based metrics for
measuring and managing climate-related risks and opportunities beyond our GHG emissions. However, we are
monitoring developments in this space and will consider new metrics in future reporting years.
ArborGen has not yet set specific KPIs to measure and manage climate-related risks and opportunities. Our
current strategic pillars have many aspects of our business strategy which could be said to align with climate-
related risks, including relating to ArborGen's expansion in Brazil, optimising productivity, and a focus on
market-driven genetics in the future.
Climate related metrics are not currently incorporated into ArborGen's remuneration policies. The
Remuneration Committee will consider incorporating climate-related performance metrics for relevant roles, if
appropriate.
ArborGen has not yet developed an internal emissions price.
Assets vulnerable to transition risks
We consider that all of our facilities are vulnerable to the transition risks including supply chain disruptions to
varying degrees. In the absence of past and projected data relating to supply chain disruptions, ArborGen has
assessed the financial impact of reduced labour following the impacts of COVID-19.
Our Riba di Rio Pardo nursery experienced significant reduction in labour levels during COVID-19, reducing
production volumes by 10 million seedlings and increasing total cost of production. Therefore, ArborGen’s total
lost sales equated to over US$613,000 (R$3.1 million) per year.
The estimation can be used as a rough proxy to represent supply chain disruptions that may occur in the future
due to climate-related impacts.
For FY25, ArborGen considers that this remains a useful metric and has made no change to its assessment of
assets vulnerable to transition risks.
Assets aligned with climate-related opportunities
ArborGen's assessment of assets aligned with climate-related risks and opportunities reveals that
approximately 75% of our assets are aligned with climate-related risks. 50% of our intangible assets are aligned
with 50% of our opportunities. This is based upon the direct correlation of where are assets are located and the
exposure of risk they have related to climate events.
For FY25, ArborGen has no significant change to this assessment.
Targets
ArborGen has not yet set climate-related targets and are continuing to assess which targets may be appropriate
for its business.
19
Table 6: Capital expenditure deployed towards climate-related risks and
opportunities
FY24 FY25
US$300,000 for climate-related capital expenditure.
US$652,000 for climate-related capital
expenditure (as outlined above).
US$3.7 million in research and development of which
approximately 48% is associated with advanced genetic
seedlings which have greater resistance to disease,
weather and pests. These dollars are associated with our
R&D spend in the product families with these specific trait
characteristics.
US$2.4 million was spent on R&D of which
approximately 50% would have been for advanced
genetic seedlings.
This financial year has seen an increase in climate-related capital expenditure and a decrease in R&D spending
(due to ArborGen's sale of its invitro business).
Physical risk exposure assessment
In 2024, WSP New Zealand Limited conducted an exposure assessment
2
of ArborGen's sites across the
Southern United States and Brazil impacted by the physical risks of drought and flooding due to climate change.
This work was not a physical risk assessment – the vulnerability of ArborGen's sites was not assessed at this
stage. Detail on the methods, assumptions and limitations of the exposure assessment is set out in Appendix 1
to this report
That assessment has been updated for these climate statements. In FY25, ArborGen acquired a new site in
Teresina, Brazil which has been included in the assessment for FY25.
In preparing these climate statements, ArborGen became aware that its Shellman Nursery, Georgia, site was
inadvertently excluded from the exposure assessment conducted last year. ArborGen has restated the physical
metrics for FY24 to include the Shellman Nursery site.
Drought
The exposure assessment of ArborGen’s nurseries located in the US and Brazil to drought in 2050 used data
from the World Bank Group Climate Change Knowledge Portal. Exposure to drought was assessed in ranges
using the Standardised Precipitation- Evapotranspiration Index (SPEI)
3
. The SPEI is a multiscalar drought index
based on climatic data. It is used to determine the onset, duration and severity of drought conditions compared
to normal conditions. A higher SPEI index means decreased drought conditions and a lower SPEI index means
increased drought conditions.
The assessment was based on the IPCC’s Sixth Assessment scenarios SSP2-4.5 and SSP3-7.0 consistent with
ArborGen’s ‘Too Little, Too Late’ scenario and ‘Hot House’ scenario.
2
Exposure is defined as: “The presence of people; livelihoods; species or ecosystems; environmental functions, services,
and resources; infrastructure; or economic, social, or cultural assets in places and settings that could be adversely
affected” (XRB Climate-related Disclosures Staff Guidance, pg. 25 in reference to IPCC, 2022 Full Report, p.43). Exposure is
one component of assessing physical climate risk. A physical climate risk assessment typically assesses both exposure and
vulnerability.
3
The SPEI is a multiscalar drought index based on climatic data. It is used to determine the onset, duration and severity of
drought conditions compared to normal conditions. A higher SPEI index means decreased drought conditions and a lower
SPEI index means increased drought conditions.
20
The World Bank Group Climate Change Knowledge Portal updated its metadata in 2025.
4
This means the data
available on its portal when accessed in May 2025 is different (more recent) than the data accessed for the FY24
exposure assessment completed in July 2024. WSP has repeated the exposure assessment for ArborGen’s FY24
portfolio using the latest data available from the Climate Change Knowledge Portal. WSP has used the latest
data available from the Climate Change Knowledge Portal to also complete an exposure assessment for
ArborGen’s FY25 portfolio.
Results of the drought exposure assessment have been presented in the following tables using ranges (e.g. 0 to
1, 1 to 2, etc.). The World Bank data used for the assessment is of a higher resolution.
The results have been simplified so they are easier to present visually but still provide a useful output. This
simplification means the maps do not show small differences (<1.0 SPEI index change) between the scenarios.
The results provided here help ArborGen to better understand the projected future exposure of its nurseries to
drought in the geographies in which it operates.
USA
Table 7: Percentage of ArborGen's US sites exposed to SPEI drought index ranges
SPEI index
range Too little, too late scenario*, 2050 Hot house scenario*, 2050
Number of US
ArborGen nurseries
located in range
Percentage (%) US
ArborGen nurseries
located in range
†
Number of US
ArborGen nurseries
located in range
Percentage (%) US
ArborGen nurseries
located in range
†
FY24
‡
FY25 FY24
‡
FY25 FY24
‡
FY25 FY24
‡
FY25
1 to 2 0 0 0% 0% 0 0 0% 0%
0 to 1 3 3 37% 37% 1 1 12% 12%
-1 to 0 5 5 63% 63% 7 7 88% 88%
-2 to -1 0 0 0% 0% 0 0 0% 0%
*Data based on SSP2-4.5 and SSP3-7.0 was used for the ‘Too little, too late’ and ‘Hot house’ scenarios respectively.
†Percentage (%) figures have been rounded to the nearest whole number.
‡
FY24 figures have been restated in accordance with NZ CS 3 paragraphs 44-46. The FY24 figures now include the Shellman
Nursery, Georgia, US site that was inadvertently excluded from the assessment in ArborGen’s FY24 Climate Statement. The
methodology for assessing ArborGen’s FY24 portfolio was also updated to use the latest metadata (2025) available from
World Bank Group.
Analysis of key trends – USA
No material change in exposure to fluvial flooding has been determined for ArborGen’s US portfolio between
FY24 and FY25.
4
World Bank Group (2025) Metadata: Climate Change Knowledge Portal (CCKP)
21
Brazil
Table 8: Percentage of ArborGen's Brazil sites exposed to SPEI drought index
ranges
SPEI index
range Too little, too late scenario*, 2050 Hot house scenario*, 2050
Number of Brazil
ArborGen nurseries
located in range
Percentage (%) Brazil
ArborGen nurseries
located in range
†
Number of Brazil
ArborGen nurseries
located in range
Percentage (%)
Brazil ArborGen
nurseries located in
range
†
FY24
‡
FY25 FY24
‡
FY25 FY24
‡
FY25 FY24
‡
FY25
1 to 2 0 0 0% 0% 0 0 0% 0%
0 to 1 1 1 4% 4% 5 5 21% 21%
-1 to 0 23 24 96% 96% 19 20 79% 80%
-2 to -1 0 0 0% 0% 0 0 0% 0%
*Data based on SSP2-4.5 and SSP3-7.0 was used for the ‘Too little, too late’ and ‘Hot house’ scenarios respectively.
†Percentage (%) figures have been rounded to the nearest whole number.
‡
FY24 figures have been restated in accordance with NZ CS 3 paragraphs 44-46. The FY24 figures now include the Shellman
Nursery, Georgia, US site that was inadvertently excluded from the assessment in ArborGen’s FY24 Climate Statement. The
methodology for assessing ArborGen’s FY24 portfolio was also updated to use the latest metadata (2025) available from
World Bank Group.
Analysis of key trends – Brazil
The acquisition of a new nursery in Teresina, Brazil has shifted the exposure of ArborGen’s overall portfolio in
Brazil. Overall, ArborGen’s Brazil portfolio now has a larger proportion of nurseries at a higher SPEI Index range
(meaning lower exposure to drought). No other materials changes in key trends have been identified.
Fluvial Flooding
The assessment of ArborGen’s sites applied data from Aqueduct Floods to carry out a high-level desktop based
exposure assessment of its sites to 1 in 100 year fluvial (riverine) flooding event in 2050. It does not cover coastal
flooding or pluvial (rain) flooding. Coastal flooding was not covered since none of ArborGen’s nurseries or
partner nurseries are located near the coast. Pluvial flooding was not covered due to a lack of readily available,
suitable data to assess this hazard for the US or Brazil.
No modelling or GIS spatial analysis was conducted. ArborGen sites were deemed to be exposed to fluvial
flooding if the site location overlapped with a flood depth of any amount >0 decimetres. Fluvial flood exposure
has only been quantified for the 1 in 100-year flood frequency under two climate scenarios. The exposure results
do not show ArborGen’s maximum fluvial flood exposure. Some locations could be exposed to fluvial flood
hazard for return periods greater than 1 in 100 years under each climate scenario.
The following tables indicate ArborGen’s exposure of its sites within the flood plain of a 100-year return flooding
events for both RCP4.5 and RCP8.5 scenarios for FY25 with comparative data from the FY24 assessment.
The data used to assess fluvial flood exposure is based on the IPCC’s Fifth Assessment scenarios: RCP4.5 and
RCP8.5. This was the best flood data available given the time available at the point of assessment. Data based
on the RCP scenarios is still appropriate for a high-level exposure assessment.
22
USA
Table 9: Percentage of ArborGen's US sites exposed to 1 in 100 year return period
fluvial flood event
Scenario Too little, too late scenario
†
, 2050 Hot house scenario
†
, 2050
FY24 FY25 FY24 FY25
Number of ArborGen nurseries
exposed to flood hazard*
1 of 8 1 of 8 1 of 8 1 of 8
Percentage (%) of ArborGen
nurseries exposed to flood hazard*
12.5% 12.5% 12.5% 12.5%
*Calculated based on exposure to a 1 in 100 year return period fluvial (river) flood event.
†Data based on RCP4.5 and RCP8.5 was used for the ‘Too little, too late’ and ‘Hot house’ scenarios respectively.
‡
FY24 figures have been restated in accordance with NZ CS 3 paragraphs 44-46. The FY24 figures have been corrected to
include the Shellman Nursery, Georgia, US site that was inadvertently excluded from the FY24 metrics disclosed in
ArborGen’s FY24 Climate Statement.
Analysis of key trends – USA
The assessment has not identified any material changes in the exposure of ArborGen’s US portfolio between
FY24 and FY25.
Brazil
Table 10: Percentage of ArborGen's Brazil sites exposed to 1 in 100 year return
period fluvial flood event
Scenario Too little, too late scenario
†
, 2050 Hot house scenario
†
, 2050
FY24
§
FY25 FY24
§
FY25
Number of ArborGen nurseries
exposed to flood hazard*
1 of 24 2 of 25 2 of 24 3 of 25
Percentage (%)
‡
of ArborGen
nurseries exposed to flood
hazard*
4% 8% 8% 12%
*Calculated based on exposure to a 1 in 100 year return period fluvial (river) flood event.
†Data based on RCP4.5 and RCP8.5 was used for the ‘Too little, too late’ and ‘Hot house’ scenarios respectively.
‡
FY24 figures have been restated in accordance with NZ CS 3 paragraphs 44-46. The FY24 figures have been corrected to
include the Shellman Nursery, Georgia, US site that was inadvertently excluded from the FY24 metrics disclosed in
ArborGen’s FY24 Climate Statement.
§
FY24 figures have been restated in accordance with NZ CS 3 paragraphs 44-46. The FY24 figures have been corrected to
include the Shellman Nursery, Georgia, US site that was inadvertently excluded from the FY24 metrics disclosed in
ArborGen’s FY24 Climate Statement.
23
Analysis of key trends - Brazil
The assessment has identified a small increase in the exposure of ArborGen’s Brazil portfolio to fluvial (river)
flooding. This is due to the acquisition of a new site in Teresina, Brazil that is exposed to fluvial flooding as per
the assessment methodology. ArborGen should note that while this acquisition has increased the Brazil
portfolio exposure to fluvial flood risk it has also decreased the portfolio exposure to drought – a hazard that is
significant for Brazil and has resulted in material financial impact within the current reporting period.
Exposure assessment - Maps
The following maps identify where ArborGen’s most exposed sites are for two climate scenarios aligned with
ArborGen’s climate scenario analysis: ‘Too Little, Too Late’ and ‘Hot House’. They supplement the tables above.
24
25
Appendix 1:
Methods, assumptions and limitations
Methods, assumptions and limitations of exposure assessment
General
The exposure assessment is a high-level, desktop assessment covering ArborGen's nurseries and partner
nurseries. It does not cover any other aspects of ArborGen’s value chain, such as export lines or customer
locations.
WSP chose nurseries within ArborGen’s geographies of operation in the Southern US and Brazil by using the
organisation’s website to locate nurseries. Using the nursery addresses, WSP was able to assess the exposure
of these sites to the climate hazards using the respective climate data.
The maps are informed by data publicly accessible and are made as an early spatial visualisation. No GIS spatial
analysis, modelling or in-person site assessments have been conducted to inform this assessment.
ArborGen acknowledges that higher resolution data could exist at a subregional level and that it intends to
investigate the availability of such datasets for use in future assessments.
WSP selected a dataset for flooding and a separate dataset for drought to apply across both the Southern US
and Brazil. This maintained a level of consistency used across ArborGen’s geographies of operation.
The climate datasets utilised in this assessment for drought and flood adopt different IPCC assessments. World
Bank Group applies the IPCC’s Sixth Assessment Report and the SSP-RCP scenarios. The Aqueduct Flood
model applies the IPCC’s Fifth Assessment Report and the RCP scenarios. These two datasets are relevant and
have been aligned appropriately with ArborGen’s climate scenarios.
The exposure assessment was conducted out to 2050, as this is the endpoint for ArborGen’s climate scenarios.
ArborGen acknowledges that the most significant divergence in physical climate hazard exposure is projected to
occur towards the end of the century (post 2050). An assessment beyond 2050 would show a significant
divergence in exposure between scenarios.
Drought
To assess ArborGen’s exposure to drought across the Southern US and Brazil, WSP used the World Bank Group
Climate Change Knowledge Portal to measure the projected exposure of ArborGen’s sites to drought by 2050.
• The Climate Change Knowledge Portal utilises data from the Coupled Model Inter- comparison Projects
(CMIP6). The CMIP6 supports the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment
Report.
• To measure drought exposure, the Standardized Precipitation Evapotranspiration Index (SPEI) Drought Index
was selected as a measure for determining drought. To align with ArborGen’s climate scenarios the
assessment utilised the SSP2-4.5 (Too Little Too Late) and SSP3-7.0 (Hot House World) scenarios for the
time range of 2040-2059 aligned with ArborGen’s long-term time horizon.
• Exposure for each site was determined by the given SPEI Index value for the respective state across the US
and Brazil as shown in the maps above.
Results of the drought exposure assessment have been presented using ranges (eg 0 to 1). The World Bank data
used for the assessment is of a higher resolution. The results have been simplified so they are easier to present
visually but still provide a useful output. This simplification means the maps do not show small differences (<1.0
SPEI index change) between the scenarios.
26
Fluvial flood
To assess the exposure of areas where ArborGen’s US and Brazil nurseries are, WSP conducted via a desktop
assessment using visual inspection of the Aqueduct Floods datasets to measure the extent of fluvial (riverine)
flood exposure in 2050 for a 1 in 100-year return period event. Aqueduct Floods is an open-source tool that uses
peer reviewed data to map flood exposure.
The Aqueduct Floods dataset allows users to select a climate projection model appropriate for the scope of the
assessment to project flood inundation. For this exposure assessment, WSP used the Geophysical Fluid
Dynamic Laboratory Earth System Model (GFDL ESM2M) developed by the National Oceanic and Atmospheric
Administration (NOAA).
The exposure of ArborGen’s sites to fluvial (river) flooding was assessed. ArborGen sites were deemed to be
exposed to fluvial flooding if the site location overlapped with a flood depth of any amount >0 decimetres.
No modelling or GIS spatial analysis was conducted.
The dataset utilises the IPCC Fifth Assessment Report to produce data on future scenarios (RCP4.5 and RCP8.5)
which align with ArborGen’s climate scenarios.
The assessment of flood exposure is limited to fluvial (riverine) flooding. It does not cover coastal flooding or
pluvial (rain) flooding. Coastal flooding was not covered since none of ArborGen’s nurseries or partner nurseries
are located near the coast. Pluvial flooding was not covered due to a lack of readily available, suitable data to
assess this hazard for the US or Brazil.
Fluvial flood exposure has only been quantified for the 1 in 100-year flood frequency. The exposure results do
not show ArborGen’s maximum fluvial flood exposure. Some locations could be exposed to fluvial flood hazard
for return periods greater than 1 in 100 years under each climate scenario.
Other physical risk exposures
ArborGen acknowledges that the physical risk metrics provided cover only a subset of its priority physical
climate risks. While these metrics give an indication of its exposure to drought and fluvial (river) flooding, they do
not capture exposure to other key hazards for ArborGen, such as pluvial (rain) flooding, hurricanes, cyclones,
storm events, and frost. These other hazards were excluded from the assessment due to the lack of readily
available, suitable data to perform an exposure assessment.
Climate change disrupts to supply chain (including labour)
The method used to develop this metric began with analogising past events causing disruptions to ArborGen's
supply chain to infer the potential impact on business activities of a significant event in the economy. By
referring to COVID-19, ArborGen has selected an illustrative example of non-directly-climate-related supply
chain impact on its business. Analogising the impacts of COVID-19 on ArborGen’s supply chain to climate-
related impacts provides some information, but ArborGen recognises the uniqueness of the potential
disruptions of climate-weather related events which will not be transferrable from COVID-19. Understanding the
full extent of the financial impact of a supply chain disruption is complex as it is multifaceted issue, requiring
extensive data and financial reporting, as well as a deepened understanding of ArborGen’s supply chain and
how it operates. ArborGen acknowledges that more data and information may exist in relation to its supply
chain. We intend to mature our assessment in future reporting years for future assessments (ie for FY25
reporting) to include other aspects of the supply chain, such as logistics and distribution lines.
27
Opportunity metric (R&D)
R&D spend for genetic materials associated with traits in disease, weather and pests were pulled by product
families currently being developed with these genetic characteristics. These traits, regardless of climate change
issues, are the big three traits that are consistently sought after in the industry and by ArborGen’s customers.
Product families are developed that are more resistant to these traits over many generations of breeding and
advanced selection processes. Because these traits are largely sought after, the competitive advantages, the
associated spending for the trait selections and breeding and other key information associated with these traits
can be discerned from ArborGen’s annual R&D investments. It should be noted that specific trait characteristics
costs cannot be segregated easily if it is combined with other traits within one product family.
GHG emissions data collection, quantification and uncertainties
All GHG emissions data provided is captured by ArborGen’s finance and accounting team, in separate files for
US sites and for sites in Brazil. All emissions calculations were carried out in Microsoft Excel. The supplied
source data was multiplied using the relevant emissions factor. Unless otherwise stated, all emissions factors
were sourced from the EPA Emissions Hub 2024.
All measurements and data are based on supplier invoices and records housed in ArborGen’s finance and
administration system and are largely complete and reliable. Overall accuracy of the emissions profile depends
on:
a) how well the accounting codes reflect the nature of the activities they are designed to cover;
b) how consistently ArborGen’s finance and accounting team apply the accounting codes; and
c) how accurately and consistently the operational boundaries have been applied to the various accounting
codes.
Scope 3 data is more difficult to collect as it includes emission reporting for third parties, for transactions where
the emission source is not directly purchased by ArborGen or where the requirement is to capture emissions
associated with the use of a natural resource. Scope 3 emissions include business travel, third party freight
carriers, refrigerated vans leased by ArborGen and rented to our customers, water usage from wells, lakes, etc,
and waste generation. Most of the items in Scope 3 will require that the emissions be extrapolated from a
measurement that can be used to estimate emissions. For business travel, we will use SAP Concur, which is our
travel and entertainment reporting software, to capture additional data related to expense reporting such as
mileage for transportation and number of nights purchased for accommodations. For logistics, we invoice van
rentals at a daily rate so we can capture days used. We will also track freight mileage through a combination of
spreadsheet documentation and/or requesting that freight vendors include mileage on their invoices. We also
currently track water usage at some of our sites and will need to investigate our options for putting meters on
other water sources where usage is not currently tracked. We are still trying to determine the best
measurements for waste which includes everything from office waste to MCP bags. Again, measurements will
vary with accounts payable transactions providing the most readily available data. Beyond that, we will look at
using the number of employees to extrapolate waste generation, bag counts to extrapolate MCP bag waste, etc.
28
Appendix 2 – ArborGen's scenario analysis
ArborGen's scenario analysis process in FY24 involved:
• Engaging external consultants (WSP New Zealand Ltd) to support our climate scenario analysis, our
identification and assessment of climate-related risks and opportunities, and the development of some
metrics for vulnerability to climate-related physical and transition risks.
• Running a series of workshops with its staff and executive management (Chief Executive, Chief Financial
Officer, Vice President of Operations, and General Manager of Operations (Brazil)), which involved:
− starting with publicly available information for the agricultural sector;
− defining scenario parameters for ArborGen's climate scenarios;
− aligning ArborGen’s climate scenarios with the Aotearoa New Zealand Climate Standards and
accompanying guidance from the External Reporting Board (XRB) and Financial Markets Authority;
− refining ArborGen's scenario narratives and climate-related risks and opportunities; and
− identifying metrics for physical and transition risks, and climate-related opportunities.
• Board review, consideration, and approval of the scenario analysis process and outcomes.
We have not conducted any modelling, nor quantitative financial impact assessments.
We consider that the scenarios below are the most relevant and appropriate to assessing ArborGen's resilience
and strategy because they are built on widely-used, international baselines adapted to ArborGen's primary
production areas.
Time horizons
We selected three time-horizons for our climate scenarios and climate-related risks and opportunities aligned
with our production lifecycles for our seedlings and forecasted adoption of advanced genetics.
Table 11: Time horizons
Time horizon Year Rationale
Short term 2025-2032 1-7 years, aligned with seedling production cycle
Medium term 2033-2042 7-15 years, reflecting seedling maturation and the increasing uptake
of advanced genetics in the market across the US and Brazil forestry
sector
Long term 2043-2050 >15 years, through to 2050
Data sources
To develop climate scenarios relevant to ArborGen’s operational geographies in South America and the
Southern US (the states of Alabama, Arkansas, Georgia, Florida, Texas, and South Carolina), we selected the
Intergovernmental Panel on Climate Changes (IPCC’s) SSP-RCP
5
global scenarios and pathways.
5
Shared Socio-economic Pathways (SSPs) are baseline narrative scenarios that identify socio-economic assumptions,
geopolitical assumptions and economic and technological trends. These form the basis for modelling the IPCC’s SSP-RCP
scenarios, which combine the baseline SSP scenarios with radiative forcing levels from the Representative Concentration
Pathways (RCPs) to impose global warming targets.
29
ArborGen uses weather and climate data from the United States federal agency the National Oceanic and
Atmospheric Administration (NOAA) for its Southern US operations and Probable Futures for operations in
Brazil.
6
Through these data sources, ArborGen can assess exposure to climate hazards across its sites. This can
be used for the long term planning and as a tool within ArborGen’s risk management framework for its physical
climate-related risks and opportunities.
Table 12: Scenario archetypes used to construct ArborGen's scenarios
Scenario archetypes Orderly Too little, too late Hot house world
Shared Socio-
economic Pathways
(SSP-RCP)
SSP1-1.9: Sustainability,
very low GHG emissions
SSP2-4.5:
Middle of the road,
low GHG emissions
SSP3-7.0:
Regional Rivalry, high GHG
emissions
Representative
Concentration
Pathways (RCP)
RCP2.6 RCP4.5 RCP8.5
Temperature outcomes and emissions reduction pathways
ArborGen’s climate scenarios focus on three temperature outcomes and emissions pathways aligned with the
requirements of the XRB. These support us in exploring the diverging risks and opportunities of each scenario
pathway.
Table 13: Temperature outcomes and emissions pathways for each scenario
Scenario archetypes Orderly Too little, too late Hot house world
Temperature outcome
(2100)
1.5°C 2.7°C >3.0°C
Temperature outcome
at endpoint (2050)
1.6°C 2.0°C 2.1°C
Emissions pathway SSP1–1.9: “The world
shifts gradually, but
pervasively, toward a
more sustainable path,
emphasising more
inclusive development
that respects perceived
environmental
boundaries.”
SSP2–4.5: “The world
follows a path in which
social, economic, and
technological trends do
not shift markedly from
historical patterns.
Development and
income growth proceeds
unevenly, with some
countries making
relatively good progress
while others fall short of
expectations.”
SSP3–7.0: “A resurgent
nationalism, concerns
about competitiveness and
security, and regional
conflicts push countries to
increasingly focus on
domestic or, at most,
regional issues. Policies
shift over time to become
increasingly oriented toward
national and regional
security issues.”
6
With limited climate science and data publicly available for Brazil, ArborGen has referenced the Probable Futures data on
climate projections for Brazil. Probable Futures is a not-for-profit climate literacy initiative that uses a simulation framework:
CORDEX-CORE(8). The scale of data provided through this source creates a notable degree of confidence.
30
Underlying assumptions
ArborGen’s scenarios draw on the underlying assumptions of the IPCC SSP-RCP scenarios and emission
reduction pathways. These scenarios cover the assumptions required to be disclosed by the XRB, including:
policy and socioeconomic assumptions; macroeconomic trends; energy pathways; carbon sequestration from
afforestation and nature-based solutions and technology assumptions including negative emissions
technology. ArborGen’s intention is to ground its selected scenarios in credible and commonly adopted
assumptions to create logical climate scenarios for primary users to compare against others in the same sector.
The IPCC’s scenarios qualify.
ArborGen’s scenario narratives
Development of ArborGen’s scenario narratives was informed by an understanding of driving forces that have
the greatest influence in shaping future outcomes for ArborGen.
These tables provide narrative descriptions of ArborGen’s three climate scenarios.
Table 14: Orderly scenario
End of century global
temperature outcome
Relative level of physical
impacts
Relative level of
transition impacts SSP-RCP scenario
1.5°C Moderate (in the short-
medium term)
High (in the short term) SSP1-1.9
The world moves deliberately toward prioritising the health of the planet. Governments work together to achieve
the Paris Agreement’s Net Zero 2050 pledge and the commitments of the Kunming-Montreal Global Biodiversity
Framework. Biodiversity and the wellbeing of people significantly improves. ArborGen encounters generally
stable economic and environmental conditions and continues to work in an orderly manner to adapt to climate
change.
Consumer behaviour shifts, prioritising both sustainability and re-use of materials as well as an increased focus
on carbon sequestration. ArborGen experiences increased sales to supply stock for reforestation and
afforestation projects. Forestry remains an attractive sector to work in. ArborGen benefits from this and
promotes itself as an employer of choice in an environmentally conscious society.
The increasingly challenging climate grows demand for trees with increased resistance to climate and
pathogens. ArborGen invests in research and development to diversify its seedling varieties. Technology
advancement eases the pressure of labour shortages as the adoption of automated methods makes ArborGen’s
operations more efficient and resilient.
The physical impacts of climate change still present challenges to ArborGen in an Orderly scenario, including
periods of drought and flooding events. Climate events occur periodically but due to active investment in
resilient materials for the infrastructure of its orchards and nurseries, ArborGen is prepared and anticipated
impacts are manageable.
Banks and other lenders prioritise sustainability. This creates significant opportunities for ArborGen to utilise
green bonds and sustainability linked loans (SLLs). Many of ArborGen’s customers also have increased access
to capital associated with sustainability linked lending.
Strong land-use change regulation is enforced to protect ecosystems. Deforestation is eliminated completely in
some regions and vastly restricted in others. ArborGen’s customers are incentivised to scale up reforestation
and afforestation projects with the prioritisation of sustainable materials (timber) and new policy for carbon
sequestration and reforestation. This demand generates more sales for ArborGen.
31
Table 15: Too little, too late scenario
End of century global
temperature outcome
Relative level of physical
impacts
Relative level of
transition impacts SSP-RCP scenario
>2.0°C Moderate (in the short-
medium term) - High (in
the long term)
Moderate (in the short
term) – Severe (in the
medium term)
SSP2-4.5
Uncoordinated policy ambition and unsuccessful transition planning globally sees worsening physical climate
change impacts and geopolitical tensions. Abrupt policy changes in the medium to long term exacerbate
inequalities in society, sectors, and regions. Political parties globally eventually coordinate priorities and efforts
to deal with climate change, but displacement and impact has been realised for and on communities,
ecosystems, and industries.
Under this scenario, ArborGen’s business faces increased extreme weather events and related challenges.
Some growing seasons shift, impacting ArborGen’s distribution cycles while changing regional climates require
ArborGen to relocate some orchards and nurseries. Adaptation methods are implemented for both ArborGen’s
infrastructure and processes, including modified growing methods and continued research into advanced
genetics to create seedlings better suited to the evolving climate. ArborGen invests in resilient materials for the
infrastructure of its orchards and nurseries to reduce the impact of extreme weather events. After 2050 physical
climate change impacts worsen.
Unlike farming and other industries in the primary industries sector, forestry incentivises jobs and the
desirability to work through its known contribution to the bioeconomy and carbon sequestration. This creates
greater opportunity for ArborGen to become an employer of choice and increases the supply of available labour
and labour flexibility to ArborGen.
Consumer behaviour shifts towards prioritising carbon sequestration as a positive mitigation for the transition
towards a low carbon world in the late 2030s. This increases demand from ArborGen’s customers for seedling
stock.
The role of carbon sequestration and reforestation becomes prominent in attempts to stabilise carbon
emissions. To match this demand, ArborGen invests in technologies for developing genetically advanced
seedlings that maximise carbon sequestration. ArborGen experiences a significant uptake in sales to boost
forestry. The increasing necessity for resilience in trees sees ArborGen invest in technologies to strengthen the
adaptability of its seedlings.
Table 16: Hot house world scenario
End of century global
temperature outcome
Relative level of
physical impacts
Relative level of
transition impacts SSP-RCP scenario
>3.0°C
Moderate - High (by the
medium term) – High (in
the long term)
Low (with a slow but
steady increase over
time)
SSP3-7.0
The world continues with business as usual for the coming decades. Globally, an economic and social
development focus built on fossil-fuel intensive growth yields little climate regulation.
ArborGen is frequently impacted by extreme weather events including flooding, hurricanes, and drought, leading
to possible supply chain disruptions and changes in customer buying behaviour. To cope with the severity of
events ArborGen invests in resilient materials for the infrastructure of its orchards and nurseries to reduce the
impact of extreme weather events. After 2050 physical climate change impacts worsen significantly.
32
Severe flooding events erode soil and ArborGen’s bare root seedlings are exposed, leading to damage.
Hurricanes and flooding drive ArborGen to diversify its locations across the US and Brazil to increase the
security of its stocks. Drought sees increasing restrictions on water and changes to soil composition which are
vital components for successful seedling growth. The conditions become increasingly favourable for pests and
pathogens.
The need for adaptation and resilient infrastructure re-builds sees an increase demand for building materials
including timber. ArborGen is a key player in this increase. Distribution times may be impacted by seedling
production and supply chain disruptions through climate-related events. Input costs associated with carbon are
likely to increase.
In the long term, access to labour is impacted as migrant workers are disrupted by extreme weather events and
the inability to travel. ArborGen’s Brazil operations rely on migrant workers, and productivity is negatively
impacted.
The frequency and severity of extreme weather events spotlights the advantage of genetics technology to
increase the adaptability of seedlings and trees to unfavourable conditions. The US government reconsiders its
stance on biotechnology in the forestry sector and creates incentives to financially sustain the sector.
ArborGen invests into technologies to both strengthen the resilience of its seedlings and increase the carbon
capture capacity, gaining a competitive advantage.
33
Appendix 3 – ArborGen's impact assessment
for climate-related risks and opportunities
Table 17: Impact assessment for FY25
Risk / opportunity Type Potential business impacts Risk rating
Weather related events
including excessive
sudden rain, freeze
events, drought
conditions, hurricanes
Physical risk Climate-related risks and weather
events are material risks within
ArborGen’s existing Risk Management
Framework. The nature of ArborGen’s
operations make climate and weather
an integral part of its business
operations across all geographies.
ArborGen's seedling production cycle
is highly dependent on consistent
weather, with extreme weather events
(such as hurricanes, drought and heavy
rainfall) causing significant damage.
Sudden heavy rainfall within the first 4-
6 weeks post-planting can wash out
seeds and damage seedlings, while
pre-lifting heavy rain creates anaerobic
conditions that harm seedling roots.
Freeze events before and during lifting
can cause root damage and freeze
events that occur during pollination
reduce annual seed volumes and
harvests.
Increased hurricane frequency leads to
large-scale damage to orchards and
nurseries, potentially necessitating
relocation. Higher temperatures cause
early seedling development, shortening
seasons and can affect the timing of
flower bagging - while hot, dry
conditions negatively impact seed
germination. Additionally, weather
impacts also affect ArborGen's critical
infrastructure causing delay and
disruption to business activities.
Short term Medium
Medium term High
Long term Very High
34
Risk / opportunity Type Potential business impacts
Risk rating
Climate change disrupts
supply chain including
labour
Physical and
transition risk
Climate change can significantly
impact ArborGen’s supply chain and
labour forces, primarily through
extreme weather events. Disruptions
such as flooding, and droughts can
damage infrastructure, delay
transportation, and interrupt
production schedules, leading to
increased costs and inventory
shortages. There are periods of
production where ArborGen requires
increased labour levels, and there is a
likelihood of climate weather events
disrupting the flow of labour and
resources to orchards and nurseries
throughout the US and Brazil. For the
geographically isolated nurseries and
orchards, particularly those in Northern
Brazil, accessibility may be limited in
the case of extreme weather events
restricting supply. In Brazil, the already
limited window of planting could be
disrupted if the supply chain is
implicated, resulting in late deliveries
to key customers.
Short term Low
Medium term
Low –
Medium
Long term Medium
Failure to meet
customer and
stakeholder
expectations regarding
climate risks and their
management
Transition risk
ArborGen has a responsibility to its
stakeholders and customers to uphold
their expectations when it comes to
climate risk and management. Failure
to meet these expectations could lead
to reduced investor confidence and
potentially lower stock valuations.
Inaction or ineffective action to take
steps to improve ArborGen’s climate
responsibility may also impact
customer perception of the brand and
the confidence they have in the
ArborGen product. Failure to comply
with new and developing climate
regulations set in the USA and Brazil, is
likely to diminish stakeholder
confidence.
Short term Low
Medium term Low
Long term Medium
35
Risk / opportunity Type Potential business impacts Risk rating
Introduction of industry-
related regulations and
other market
complexities influencing
consumer and customer
demand
Transition risk
The demand for ArborGen’s seedlings
can change due to various factors,
including shifts in consumer
preferences, larger economic trends
and regulatory changes. The market for
ArborGen products may also face
turbulent periods in times of regulatory
change in areas aimed at biodiversity
protections, reducing deforestation
and other sustainability practices.
ArborGen has invested in the
production of a core range of seedlings,
therefore, if regulations and other
factors were to cause shifts in demand
for those seedlings this would require a
significant change to ArborGen’s
business model. Increased costs may
also flow from a shift in customer
preference towards FSC certified
products. Increased costs will be
incurred in obtaining this certification
and maintaining it. Acute weather
events and chronic climatic changes,
potentially reducing supply, will have
an impact on general market demand
and prices for seedlings. Where the
demand fluctuates, there is a risk that
ArborGen may not have the required
inventory levels.
Short term Low
Medium term Low
Long term Low
Increased demand for
advanced genetics
seedlings which have
greater resistance to
disease, weather and
pests
Opportunity There is an opportunity for ArborGen to
continue increasing investment into
research and development in its pursuit
of breeding seedling varieties with
greater resistance and adaptability to
disease, weather and pests. Product
diversification will help to protect
ArborGen from any potential changes in
the market for its core product offerings.
There is potential to partner with other
projects and companies to strategically
increase investment into R&D.
Partnerships can also provide an
opportunity whereby partners can
produce ArborGen’s own genetic
material – without requiring a need for
expanding ArborGen’s own nurseries and
orchards. As customer demand and
preferences for sustainable products
increases over time, there is an
opportunity to increase investment and
production of genetic material in
seedlings with enhanced carbon
sequestration.
Short term Medium
Medium
term
Medium
Long term
Medium -
High
36
Risk / opportunity Type Potential business impacts Risk rating
Increased customer
demand for seedlings
for afforestation and
reforestation
Opportunity
As the market increasingly shifts towards
reforestation and afforestation projects
and sustainable materials, ArborGen
could obtain a greater market share and
enhanced competitive advantage for its
product. ArborGen can respond to
changing customer and consumer
behavior and preferences through its
R&D investment. There is an opportunity
for ArborGen to continue to actively
engage with carbon project developers
who are pursuing large scale
afforestation and reforestation projects
in the Southern US and Brazil. Currently,
ArborGen has one long term supply
arrangement to provide both advanced
genetics pine seedlings and hardwood
seedlings. ArborGen should aim to
continue seeking out similar long-term
supply contracts.
Short term Low
Medium
term
Medium
Long term High
Financial incentives for
reforestation and
promoting sustainable
forest management
practices eg, carbon
credits
Opportunity
ArborGen will consider integrating
sustainability into its operations to
access a broader range of financing
options, including green bonds,
sustainability-linked loans, and impact
investments. These financial
instruments often attract investors who
prioritise ESG considerations, thereby
diversifying funding sources and
potentially reducing borrowing costs. In
the US forestry industry, financial
incentive arrangements geared towards
sustainability measures are currently
allocated and targeted to not for profits,
but this could change over time. There is
an opportunity for private sector
companies like ArborGen to potentially
access more.
Short term Low
Medium
term
Low –
Medium
Long term High
37
Appendix 4 – GHG emissions inventory
The FY25 GHG inventory has been prepared in accordance with The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard, Revised Edition (GHG Protocol), and the United States Environmental
Protection Agency (EPA) Scopes 1, 2 & 3 Emissions Inventorying and Guidance 2025 GHG Emission Factors Hub,
with reference to the Ministry for the Environment (MfE) Measuring emissions: A guide for organisations 2024
Emission factors workbook.
ArborGen’s baseline inventory measures emissions in the reporting years 2023 and 2024, which represents
ArborGen’s FY24 inventory, and their first GHG inventory. The base year has not been recalculated for the FY25
inventory, and a base year recalculation policy has not yet been developed.
The reporting period is in line with ArborGen’s financial reporting period, this inventory covers ArborGen’s
emissions from 1 April 2024 to 31 March 2025.
Organisational Boundary
The organisational boundary for ArborGen’s GHG reporting has been set using the GHG Protocol. All facilities
and locations have been included in this report. ArborGen has used the operational control consolidation
approach to define its organisational boundary, which includes all operations that ArborGen has operational
control over. Direct control is determined by ArborGen’s capacity to enact operational decisions for an
emissions source. All emissions that ArborGen has direct control over in its own head office in Ridgeville, South
Carolina; nurseries, seed orchards, distribution and research facilities located throughout Unites States, and
Brazil are covered in this inventory. There are no facilities or operations that have been excluded from this
inventory and/ or report.
The boundary follows the same approach as the organisational boundary in ArborGen’s FY24 inventory. It is
noted that one additional site has been acquired in Brazil during FY25.
Operational Boundary
Operational boundaries relate to the GHG emission sources and the extent to which the organisation can
control them. ArborGen has chosen to include Scope 1 and Scope 2 emissions in the operational boundary for
the FY25 GHG inventory.
The scope of emissions considered for ArborGen’s FY25 inventory is summarised in Table 18.
Table 18: Scope of emissions reported in ArborGen’s FY25 GHG inventory
Scope Definition Sources
Scope 1: Direct emissions Direct emissions that occur during
the FY from sources owned or
controlled by ArborGen.
• Stationary fuel consumption
• Mobile fuel consumption
• Fugitive emissions
(refrigerants)
• Fertilisers
Scope 2: Indirect emissions
Indirect emissions from the
generation of electricity that is
purchased by ArborGen during the
FY.
• Electricity consumed in
buildings, facilities, and plant
equipment
38
Scope 1 emissions are direct GHG emissions that occur from sources owned by ArborGen. Scope 1 emissions
have been accounted for based on data received from ArborGen’s records and invoices from sources directly
owned and controlled by ArborGen. These include:
• Transport fuel emissions from diesel combustion from the use of tractors, pumps, generators; petrol
combustion from vehicles (pickups and utv); stationary combustion from peerless dryers;
• Fertilisers.
Scope 2 emissions are indirect emissions from the generation of purchased electricity, measured by location-
based monthly invoices, consumed by ArborGen, including:
• Electricity consumed in all offices;
• Electricity consumed in nurseries;
• Electricity consumed in seed orchards;
• Electricity consumed in distribution centres;
• Electricity consumed in research centres.
Data from ArborGen’s GHG Reporting FY25 workbook has been used as the source data for calculating GHG
emissions. The facilities measured, data collection unit, data collection methodology and uncertainty rating are
summarised in Table 19.
Table 19: FY25 Scope 1 and 2 GHG Emissions
Source
GHG
Emissions
Source
Facilities
Measured
Data
Collection
Unit Data Collection
Uncertainty and Data
Quality
Scope 1:
Direct
Emissions
Fuel – Diesel All sites (US
and Brazil)
Gallons and
litres
Invoices/records
– monthly totals
recorded in
ArborGen GHG
Reporting FY25
workbook
Low uncertainty and
high data quality – for US
data quantities provided
monthly per location.
Brazil data quantities
provided monthly.
Fuel –
Petrol/Gasoline
All sites (US
and Brazil)
Gallons and
litres
Invoices/records
– monthly totals
recorded in
ArborGen GHG
Reporting FY25
workbook
Low uncertainty and
high data quality – for US
data quantities provided
monthly per location.
Brazil data quantities
provided monthly.
Fuel - Propane
All sites (US
and Brazil)
Gallons
Invoices/records
– monthly totals
recorded in
ArborGen GHG
Reporting FY25
workbook
Low uncertainty and
high data quality – for US
data quantities provided
monthly per location.
Brazil data quantities
provided monthly.
Fuel – Natural
Gas
All sites (US
and Brazil)
Cubic feet Invoices/records
– monthly totals
recorded in
ArborGen GHG
Reporting FY25
workbook
Low uncertainty and
high data quality – for US
data quantities provided
monthly per location.
Brazil data quantities
provided monthly.
39
Source
GHG
Emissions
Source
Facilities
Measured
Data
Collection
Unit Data Collection
Uncertainty and Data
Quality
Fuel - LPG All sites (US
and Brazil)
Kilograms Invoices/records
– monthly totals
recorded in
ArborGen GHG
Reporting FY25
workbook
Low uncertainty and
high data quality – for US
data quantities provided
monthly per location.
Brazil data quantities
provided monthly.
Fertilisers
Seven US sites
and Brazil
Kilograms
Quantities
reported in
ArborGen
Fertiliser and
Pesticide usage
plan 2025
workbook
High uncertainty, low
data quality – activity
data directly measured
by usage (gallons)
reported for US states
but assumptions.
Activity data for Brazil
reported in one figure for
media and fertiliser (kg)
but assumptions made
for % Nitrogen
calculations.
Scope 2:
Indirect
Emissions
Purchased
electricity from
the grid
All sites (US
and Brazil)
Kilowatt-hour Monthly invoices
– totals recorded
in ArborGen
GHG Reporting
FY25 workbook
Emission factors
sourced from State-
specific E-Grid emission
factors (US) and sourced
from OWID for national
consumption in Brazil.
Low uncertainty and
high data quality – for US
data quantities provided
monthly per location.
Brazil data quantities
provided monthly.
Emission Factor Selection
For ArborGen’s FY25 GHG inventory, most emission factors were sourced from the Environmental Protection
Agency (EPA) GHG Emission Factors Hub, with the latest available data for 2025.
The emission factor for LPG measured in emissions per unit in kilograms was sourced from the Ministry for the
Environment (MfE) New Zealand’s latest emission factors workbook (2024).
The emission factor selection sources are summarised in Table 20.
40
Table 20: Scope 1 and 2 emissions factors
Source GHG Emissions Source Facilities Measured Data Collection Unit
Scope 1:
Direct
Emissions
EPA 2025 Motor gasoline / petrol – Mobile
Combustion
8.78 kgCO
2
/ gallon
EPA 2025 Diesel – Mobile Combustion 10.21 kgCO
2
/ gallon
EPA 2025 Diesel – Stationary Combustion 10.24 kgCO
2
/ gallon
EPA 2025 Natural Gas – CNG 0.0545 kgCO
2
e / ft
3
EPA 2025 Propane 5.74 kgCO
2
e / ft
3
MfE 2025 LPG 2.97 kgCO
2
e / kg
MfE 2025 Non-urea nitrogen fertiliser 4.84 kgCO2e / kg N
MfE 2025
Urea nitrogen fertiliser not coated
with urease inhibitor
4.72 kgCO2e / kg N
MfE 2025 Limestone 0.36 kgCO2e / kg
Scope 2:
Indirect
Emissions
EPA 2025 Electricity by Subregion (US) – SRVC 590.28 lbCO
2
e / kWh
EPA 2025 Electricity by Subregion (US) – SRSO 840.96 lbCO
2
e / kWh
EPA 2025 Electricity by Subregion (US) – SRMV 739.45 lbCO
2
e / kWh
EPA 2025 Electricity by Subregion (US) – ERCT 738.09 lbCO
2
e / kWh
EPA 2025 Electricity by Subregion (US) – FRCC 801.94 lbCO
2
e / kWh
Our World in Data (OWID) Electricity (Brazil, 2023) 0.098 kgCO
2
e / kWh
Global warming potential
The following global warming values were used to calculate emissions relative to carbon dioxide (CO
2
), which
includes emissions from carbon dioxide (CO
2
), methane (CH
4
), and nitrous oxide(N
2
O). The global warming
potentials sourced from the EPA 2025 GHG emission factors data workbook represent the figures published by
the Intergovernmental Panel on Climate Change (IPCC) 5th report, however the updated figures used for the
FY25 inventory have been sourced from the IPCC latest 6th report.
7
Table 21: Global warming values
Major Greenhouse
Gas (GHG) Chemical Formula
Fifth Assessment Report
(AR5)
Sixth Assessment
Report (AR6)
Carbon Dioxide CO
2
1 1
Methane – non-fossil CH
4
28 27
Nitrous Oxide N
2
O 265 273
7
https://ghgprotocol.org/sites/default/files/2024-08/Global-Warming-PotentialValues%20%28August%202024%29.pdf
41
Fertilisers
To calculate fertiliser emissions from US sites:
Data was reviewed from ArborGen’s ‘Fertiliser and Pesticide usage plan 2025’ workbook and a list of all the
reported fertilisers from each tab were collated to measure total usage per product across all eight reported US
sites:
• Bullard and Jasper, Texas
• Bellville, Georgia
• Blenheim, South Carolina
• Bluff City, Arkansas
• Shellman, Georgia
• Selma, Alabama.
The total quantities of each product were assigned a % Nitrogen value based on two assumptions:
• %N taken from the N-P-K ratio of the product name (e.g. ‘16-2-4’);
• The product was searched online to find the concentration of N.
For those fertilisers in a liquid state, a density conversion of the pounds per gallon of fertiliser used was applied.
This density was estimated as 11.5 lb / gal based on the Bluff City Arkansas data. It is assumed this conversion is
applicable for the fertilisers used on the other US sites reported, and therefore 11.5 lb / gal was used for all US
liquid fertiliser calculations.
The liquid fertiliser quantities (reported in gallons) were multiplied by the density factor (11.5 lb / gal) to estimate
the quantity of fertiliser used (in pounds). This was then multiplied by the % Nitrogen value to establish the
weight of the nitrogen content in each product. The weight of the N content was then converted from pounds to
kilograms.
The kilogram of N content were then multiplied by the emission factor sourced from the Ministry for the
Environment (NZ) MfE Measuring Emissions: A guide for organisations – 2025 Emission Factor Workbook,
‘Agriculture’ tab, ‘Fertiliser use’. After a review of available data online, it was decided that these emission
factors were the most appropriate, available emission factor for fertilisers at the time.
To calculate fertiliser emissions from Brazil sites:
The total quantity of ‘growing media and fertiliser’ (2,125,724 kg) reported as activity data was used to estimate
the proportion of fertiliser (kg) within this total quantity. ArborGen estimated that a proportion of fertiliser within
this total quantity would be approximately 5%.
From this 5% (106,286 kg), the % N content was estimated as 16%, which is slightly lower than the average of all
% N contents of the US sites (19%).
It is assumed that the fertiliser is in solid form, and therefore the % N content was calculated in kilograms, using
16% of the 106,286 kg.
The kg of N was then multiplied by the emission factor sourced from MfE Measuring Emissions: A guide for
organisations – 2025 Emission Factor Workbook, ‘Agriculture’ tab, ‘Fertiliser use’.
To test the proportionality of these results, WSP performed a high-level analysis comparing the proportion of fuel
consumption of diesel fuel for Brazil with the proportion of estimated fertiliser emissions for Brazil. Out of the
total diesel fuel consumption of combined Brazil and US sites (sites reporting fertilisers), the Brazil fuel quantity
makes up approximately 24% of the total. Out of the total emissions of combined Brazil US sites (sites reporting
fertilisers), the estimated Brazil fertiliser emissions make up approximately 29% of these which shows relative
alignment of fertiliser emissions against fuel activity.
42
Exclusions
The emissions sources that have been excluded from the FY25 GHG inventory are shown in Table 22.
Table 22: Exclusions from ArborGen's FY25 GHG inventory
Source
GHG Emissions
Source
Facilities
Measured Reason for Exclusion
Scope 1 Fugitive emissions US, Brazil ArborGen has identified minimal use of
equipment or machinery is used that would
require refrigerants and hence fugitive emissions
are excluded.
Transport fuel –
Premium petrol
Brazil No emissions reported – data received for Feb-25
and Mar-25, total of 106.5 L = 0.256 tCO2e, which
is deemed not-material to this inventory
(<0.001%)
Bioethanol Brazil
No emissions reported – data received for Jul- 24,
Aug-24 and Nov-24. GHG Protocol Standard
indicates biofuel and biomass emissions
excluded from Scope 1 greenhouse gas inventory.
Wood Brazil
No emissions reported – data received for Aug-
24. GHG Protocol Standard indicates biofuel and
biomass emissions excluded from Scope 1
greenhouse gas inventory.
Herbicides and
pesticides
US (estimated
Brazil)
Emissions from herbicides and pesticides have
been excluded due to lack of available industry
data and research on the emissions from the
application of these products and volatilization of
the chemicals. Majority of online sources of
emission factors (e.g. emission factor for
Glyphosate) are more likely reflective of the Scope
3 emission (manufacturing etc.) not the
application and emissions from volatilization of
the chemical. No quantities reported for Brazil
therefore these would be estimated based on no
activity data. Initial calculation of emissions from
herbicides and pesticides using quantities
reported in ArborGen Fertiliser and Pesticide
usage plan 2025 workbook and an emission factor
sourced from Ecoinvent equated to 30 tCO2e (15
tCO2e for US sites and doubled to estimate
Brazil). This makes up approximately 1% of
ArborGen’s Scope 1 emissions and is therefore
considered immaterial.
43
Grant Thornton New Zealand Audit Limited
L4, Grant Thornton House
152 Fanshawe Street
PO Box 1961
Auckland 1140
T +64 9 308 2570
www.grantthornton.co.nz
Appendix 5 – Independent assurance report
Independent Assurance Report
Independent Assurance Report on ArborGen Holdings Limited’s Greenhouse Gas
(‘GHG’) Disclosures included within the Climate Statements for the year ended 31
March 2025.
To the Directors of ArborGen Holdings Limited
Our 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 gross GHG emissions, additional required disclosures of gross GHG
emissions, and gross GHG emissions methods, assumptions and estimation uncertainty (‘GHG disclosures’),
within the scope of our limited assurance engagement (as outlined below) included in the Climate Statements
for the year ended 31 March 2025, 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 2 of the Climate Statements.
Scope of Assurance Engagement
We have undertaken a limited assurance engagement over the following GHG disclosures on pages 17 and 37 to
42 of the Climate Statements for the year ended 31 March 2025:
• Gross GHG emissions, in metric tonnes of carbon dioxide equivalent (tCO₂-e), classified as:
o Scope 1
o Scope 2 (calculated using the location-based method)
• Additional disclosures per paragraph 24 (a) to (d) of Aotearoa New Zealand Climate Standard 1:
Climate-related Disclosures (‘NZ CS 1’):
o The statement describing that GHG emissions have been measured in accordance with the
Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (‘the GHG
Protocol’) to the extent this pertains to Scope 1 and 2 emissions.
o The statement that the GHG emissions consolidation approach used is the operational control
approach, to the extent this pertains to Scope 1 and 2 emissions.
o Sources of Scope 1 and 2 emission factors and the global warming potential (‘GWP’) rates used
or a reference to the GWP source.
o The summary of specific exclusions of Scope 1 and 2 emissions sources, including facilities,
operations or assets with a justification for their exclusion.
Grant Thornton New Zealand Audit Limited is a related entity of Grant Thornton New Zealand Limited. ‘Grant Thornton’ refers to the brand under which the Grant
Thornton member firms provide services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton New Zealand Limited
is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a
separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do
not obligate, one another and are not liable for one another’s acts or omissions. In the New Zealand context only, the use of the term ‘Grant Thornton’ may refer
to Grant Thornton New Zealand Limited and its New Zealand related entities.
44
Chartered Accountants and Business Advisers
Member of Grant Thornton International Ltd.
Our assurance engagement does not extend to any other information included, or referred to, in the Climate
Statements. We have not performed any procedures with respect to the excluded information and, therefore,
no conclusion is expressed on it.
Key Matters to the GHG assurance engagement
Based on the procedures performed, we did not identify any key assurance matters that require
communication in this report.
Other Matter – Comparative Information
The comparative GHG disclosures (that is GHG disclosures for the period ended 31 March 2024) have not
been subject to assurance. As such, these disclosures are not covered by our assurance conclusion.
Director’s Responsibilities for the GHG Disclosures
The Directors are responsible for the preparation and fair presentation of the GHG disclosures in accordance
with the NZ CSs, which includes determining and disclosing the appropriate standard or standards used to
measure the Company’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 GHG Disclosures
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.
Our Responsibilities
We are responsible for:
• Planning and performing the engagement to obtain the intended level of assurance about whether the
GHG disclosures are free from material misstatement, whether due to fraud or error;
• Forming an independent conclusion, based on the procedures we have performed and the evidence we
have obtained; and
• Reporting our conclusion to the shareholders of ArborGen Holdings Limited.
As we are engaged to form an independent conclusion on the GHG disclosures prepared by management, we
are not permitted to be involved in the preparation of the GHG information as doing so may compromise our
independence.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements of NZ SAE 1 Assurance
Engagements over Greenhouse Gas Emissions Disclosures, issued by the XRB, 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 Statement, or Other Assurance or Related Services Engagements which requires the firm to
design, implement and operate a system of quality management including policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements; and
• Professional and Ethical Standard 4: Engagement Quality Reviews.
Our firm is the statutory auditor of the financial statements of ArborGen Holdings Limited. These services
have not impaired our independence as assurance practitioner for this engagement. The firm has no other
relationship with, or interest in, the Group.
Summary of Work Performed
Our limited assurance engagement was performed in accordance with NZ SAE 1, and ISAE (NZ) 3410
Assurance Engagements on Greenhouse Gas Emissions. This involves assessing the suitability in the
circumstances of ArborGen Holdings Limited’s use of Aotearoa New Zealand Climate Standards (NZ CSs) as
the basis for the preparation of the GHG disclosures, assessing the risks of material misstatement of the 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 GHG disclosures.
45
Chartered Accountants and Business Advisers
Member of Grant Thornton International Ltd.
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 GHG disclosures, we:
• Obtained, through enquiries, an understanding of ArborGen Holdings Limited’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 ArborGen Holdings Limited’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 these estimates;
• Performed analytical procedures on particular emission categories by comparing the current period’s
emissions activity to prior periods to understand fluctuations in activity data and made enquiries of
management to obtain explanations for any significant differences we identified; and
• Selected a judgmental sample of activity to test the accuracy of emissions factors applied by the
Company to the underlying activity data;
• Tested the completeness of emissions activity data by selecting a judgmental sample of items expected
to be included in the GHG emissions calculation and verifying their proper inclusion;
• 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.
Inherent limitations
Because of the inherent limitations of an assurance engagement, together with the internal control structure,
it is possible that fraud, error or non-compliance may occur and not be detected.
Restrictions on use of our report
This report is made solely to the ArborGen Holdings Limited’s Directors, as a body. Our assurance work has been undertaken so
that we might state to them those matters which we are required to state in our assurance 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 ArborGen Holdings
Limited and its Directors, as a body, for our work, this report or for the conclusions we have formed.
Grant Thornton New Zealand Audit Limited
Yasin Mohammed
Auckland
31 July 2025
46
Registered office
Level 15, PwC Tower, 15 Customs Street West
Auckland 1010, New Zealand
PO Box 68 249, Victoria Street West,
Auckland 1141, New Zealand
Telephone: +64 9 356 9800
Email: info@arborgenholdings.com
Website
www.arborgenholdings.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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