Doing milk differently
for a healthier world

Our Commitment

“At the heart of who we are is a vision for people, land and communities to thrive. We have an opportunity to make a real difference as we continue to grow and contribute to a sustainable future for New Zealand. We’re just at the start of our
journey, but we’re sure we can make a difference.”

John Penno Co-Founder, Inaugural CEO and Director.

Sustainability

People

We’re creating opportunities for all to thrive. And by building a fan base for our ambition, commitment and actions, together we have the ability to transform our industry, benefit our country and leave a legacy
for future generations.

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Sustainability

Environment

Our goal is for Synlait’s net business impact to be positive for the planet, with restorative and regenerative agriculture, manufacturing and supply chain processes. Achieving this goal means re-imagining all aspects of our business.

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Sustainability

Enterprise

We serve milk nutrition for modern life, worldwide. Our pioneering mindset drives us to do bigger things, to stand for more, to play a bigger role and to return an economic glow
to New Zealand.

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Our Strategy

In June 2018 we announced our renewed commitment to sustainability across three pillars of activity:
Environment, People and Enterprise. For more information read our Sustainability at Synlait report – FY20.

Environment

People

Enterprise

Environment

Targeting Zero Carbon

To align with our purpose of ‘doing milk differently, for a healthier world’ we identified a series of climate change targets. To ensure we are transparent in reaching these goals Synlait will now report its greenhouse gas emissions in a third-party
audited report, annually.

You can access our FY20 GHG Inventory Report here.

Off-farm GHG action

Our goal: 45% reduction of absolute scope 1 and 2 GHG emissions by 2028 from our 2020 base year.

We’re taking on climate change because we care about the ability for future generations to thrive. We also recognise New Zealand’s commitment to the Paris Agreement and, as a major emitter, seek to make a meaningful contribution to that target. We’re re-imagining all aspects of our business for a
low-emissions future.

On-farm GHG action

Our goal: 30% reduction in on-farm GHG emissions per kilogram of milk solids by 2028 from our 2020 base year.

Farms supplying Synlait represent more than 80% of Synlait’s total greenhouse gas emissions. The consensus view has been that little can be done to reduce on-farm emissions. This view no longer holds true. Breakthrough technology paired with best practice management can result in substantial emissions reductions. Our
staff and farmers are galvanized
around leading change.

Moving away from coal

We installed New Zealand’s first electrode boiler in our advanced liquids plant in April 2019. Running on renewable electricity, this technology will prevent the emissions equivalent of 9,600 households per year versus a coal boiler. We’re also committed to reducing our existing coal usage, and will never build
another coal boiler.

Animal health and welfare

We value our dairy animals as a sentient cornerstone of our healthy food products. Through exceptional farming stewardship we strive for all of our dairy cows to experience a life of great health and positive wellbeing. We support our supplier farmers in achieving and maintaining this goal. The Animal Health and Welfare pillar of Lead With Pride™ is about setting stockmanship expectations, providing good farm infrastructure, and ensuring health protocols are followed to meet or exceed industry best practice outcomes.

Off-farm water reduction

Our goals: 20% reduction in water use per kilogram of product by 2028. 20% improvement in the quality of waste water. Both goals refer to
our 2018 base year.

New Zealand has spoken loud and clear about its views of the industrial and commercial use of water and the current and likely future state of waterways. We recognise the challenges and are committed to playing a substantial role in better stewardship of water. We’re setting out to reduce the volume of water we use through all aspects of our manufacturing process. We’re also improving the quality of the waste water that leaves our factory.

On-farm water reduction

Our goals: 20% reduction in water use per kilogram of milk solids by 2028. 45% reduction in nitrogen loss to waterways per kilogram of milk solids by 2028. Both metrics refer to our 2018 base year.

In addition to using less, we seek to eliminate our contribution to the degradation of waterways in the catchment areas of
our operations.

Circular Economy

Our goals: 99% of total non-hazardous manufacturing waste will be diverted from landfill by 2028. 100% of product packaging will be reusable, recyclable or compostable by 2025.

Synlait is on a path towards a fully circular model in which our operations will generate minimal waste to landfill and our materials will be kept in the economy and out of the environment.

People

Health, safety and wellness

Everything starts with care for our people. Synlait is committed to “Everyone Home Safe, Every Day”. To do this we ensure that health, safety and wellness is integrated into daily life. We’re focused on further improvements and have identified five critical risks as our top priorities. Progress on mitigation for each is reported on a monthly basis.

Talent attraction and development

Building an engaged, capable, and passionate team underpins our performance. Our focus on employee engagement in recent years continues to show positive results. We have also launched our own Graduate Programme, to meet the future leadership needs of the business. The aim is to fill a pipeline of high potential people, capable of leading the business now and
in the years to come.

Diversity and Inclusion

Synlait aspires to employ and embrace a diverse range of talent to reflect the diversity of the consumer landscape in the markets that we serve. Attracting, developing and retaining those talents is crucial for the success of our business. We believe that our ability to innovate and grow is rooted in the diversity of thought and creativity of our people. Our Diversity and Inclusion Policy empowers and equips our people leaders to foster a diverse and competent workplace.

Thriving Farmers and farm workers

The greatest potential on any farm lies in its people. High performing farms are made possible through robust management and the employment of engaged, motivated and well-trained teams. Our acclaimed Lead With Pride™ programme supports farms to set clear objectives, select the right people, train and develop them and keep the team safe.

Culture and community

Whakapuāwai is our wide-reaching environmental programme that incorporates the establishment of an
industrial scale nursery to propagate native plants. Through Whakapuāwai we can lead by example and help connect our milk suppliers and community
groups to make a real difference.

Enterprise

Business partnerships

We leverage our sustainability credentials and ambition to form deep partnerships with customers that share our purpose-led philosophy and vision for people, communities and land thriving. By demonstrating purposefulness every day in running our business, we continue to build the depth and breadth of our customer base.

Food safety and quality

We are dedicated to manufacturing food products that provide genuine benefits for human health and wellbeing. Our factories uphold the highest of standards for quality and safety. We have invested heavily in a food safety strategy that mandates rigorous testing for the absence of microbial and chemical contaminants. Our people receive all relevant food safety and quality training so they can perform their jobs with care and confidence.

Sustainable supply

We work with supply chain partners that share and act upon our view of environmental, social and economic sustainability. Our supply chain begins with milk sourced from around 280 farms, and ingredients and packaging sourced from suppliers that uphold the highest standards of ethics and sustainability. Our supply chain ends with the safe post-consumer disposal of packaging.

Accountability and transparency

Increasingly, shareholders and
stakeholders are requiring greater disclosure and transparency from publicly listed companies. At Synlait
we are committed to clear and
accurate reporting of our
sustainable performance to our
many stakeholders.

Healthy farming

The cornerstone of our sustainable farming strategy is our Lead With Pride™ certification programme. Farmer suppliers who are Lead
With Pride™ certified take a holistic approach to all aspects of farming. The programme attracts farmers
who want to adhere to the highest standards in terms of milk quality, animal welfare, environmental protection and social responsibility.

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