Climate impact

Planet

Climate change and the reliance on natural resources is driving significant structural transformation across the dairy sector.

The sector will need to take concerted action to manage the risks and opportunities associated with a move towards a lower carbon footprint. The risks include regulatory initiatives, such as carbon pricing, market risks and changes in consumer preferences.

FY22 Progress


— Commenced roll-out of auditor and a2MC farm services team training modules

— Staged launch of upgraded animal welfare programme and farmer online portal

— Commenced implementation of robust audit scope and frequency to increase visibility and reduce risk

— Launched redefined animal welfare programme with Synlait

NEXT STEPS

— Progress towards animal welfare certification target for end CY23

— Launch a2MC redefined animal welfare programme with Mataura Valley Milk

— Undertake pilot technology trial on farm to validate animal welfare auditing data

— Progress towards global certification of the redefined programme

Building a more sustainable business at Mataura Valley Milk (MVM)

The Company acquired a 75% interest in MVM, a dairy nutritionals facility located in Southland, New Zealand

during the year.

A significant amount of work was undertaken to integrate MVM into the business including several activities to build upon MVM’s sustainability credentials:

— Committed to replacing the boiler at MVM from a lignite boiler to a high-pressure electrode boiler through the full electrification of the site and received co-investment from the New Zealand GIDI Fund

— Enabled MVM’s participation in the Farm Sustainability Fund, with grants available to eligible suppliers of raw A1 protein free milk to MVM

— Exploration of a commercial trial using methane inhibitor asparagopsis seaweed

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*A1 and A2 proteins refer to A1 and A2 beta-casein protein types