GREENHOUSE GAS

INVENTORY REPORT
– FY22

Doing Milk Differently For A Healthier World

CONTENTS 1. Introduction

2. GHG Inventory Summary for FY22

01

02

3. Organisational Boundary 05

4. Operational Boundary 07

5. Methodologies and Uncertainties 09

5.1 Emissions Source Data Processes and Uncertainties 09

5.2 Farmer Supplier Emissions 14

5.3 Emissions Factors 15

5.4 Base Year Recalculation Policy 15

5.5 GHG Information Management and Monitoring Procedures 15

5.6 Other Emissions – HFC, PFC, NF3 and SF6 15

5.7 Other Emissions – Biomass 15

6. GHG Inventory Assurance 16

Auditor’s Report 17
PAGE 01 GREENHOUSE GAS INVENTORY REPORT – FY22

1. INTRODUCTION

Synlait Milk Limited (Synlait) combines expert and sustainable farming practices with state-of-the-art manufacturing
processes to produce a range of nutritional milk products that provide genuine benefits for human health and wellbeing.
Our purpose Doing Milk Differently For A Healthier World is based on three pillars that form our identity: being different,
providing essential nutrition, and leading with sustainability. Our disruptive, innovative spirit combined with resolute
determination to do the right thing for planet and people sets us apart from the competition.

In April 2021, Synlait upgraded its climate change targets, which were originally set in 2018. The reset targets are
approved by the Science Based Targets initiative (SBTi) and align with the New Zealand Government’s commitment to
keep global warming to 1.5˚C.

Synlait has committed to reduce:

• Absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 45% between FY20 and FY28.

• Scope 3 GHG emissions from on-farm purchased goods and services by 30% per kg of milk solids (kgMS) between
FY20 and FY28.

Statement of Intent
This inventory report forms part of Synlait’s commitments to sustainability and environmental best practice and informs
the senior management’s decision-making relating to the company’s sustainability strategy. We intend to make this report
publicly available through our website.

Base Year
The base year is 1 August 2017 to 31 July 2018. This is the first 12-month period where GHG emissions were calculated
and forms the base year for Synlait.

Base year emissions have been restated this year due to an update in OVERSEER®’s software1, which impacts the
calculation of our Scope 3 farmer suppliers’ GHG emissions.

Reporting Period
This document is our fifth GHG Emissions Inventory Report and is for the period 1 August 2021 to 31 July 2022 (FY22).

1
Please refer to our base year recalculation policy on page 15.
PAGE 02 GREENHOUSE GAS INVENTORY REPORT – FY22

2. GHG INVENTORY SUMMARY FOR FY22

Table 1: GHG Emissions by Scope

FY18 FY19 FY20 FY21 FY22 FY18-FY22

(base year) Evolution
Scope 1 (1) Direct GHG Emissions 114,589 120,127 133,609 133,794 129,910 13%
Scope 1 Excluding (1) Direct GHG Emissions 114,589 120,127 133,609 133,794 128,954 13%
Synlait Farms
Scope 2 (2) Indirect GHG emissions 6,923 7,035 8,804 8,504 11,097 60%
from imported energy
Scope 2 Excluding (2) Indirect GHG emissions 6,923 7,035 8,804 8,504 10,923 58%
Synlait Farms from imported energy
Subtotal Scope 1 and 2 Emissions 121,512 127,162 142,413 142,298 141,007 16%
(tCO2e)
Subtotal Excluding Scope 1 and 2 Emissions 121,512 127,162 142,413 142,298 139,877 15%
Synlait Farms (tCO2e)
Scope 3 (3) Indirect GHG emissions 42,991 46,287 46,560 53,0572 54,806 27%
from transportation and
distribution
(4) Indirect GHG emissions 1,005 1,660 3,547 3,418 2,439 143%
from products and services
used by the organisation
(5) Indirect GHG emissions - - - - - -
from the use of the
organisation’s products
(6) Indirect GHG emissions 754,992 731,935 856,622 930,065 899,869 19%
from other sources –
on-farm emissions1
Subtotal Scope 3 Emissions (tCO2e) 798,988 779,882 906,729 986,540 957,114 20%
Total Emissions (tCO2e) 920,500 907,044 1,049,142 1,128,838 1,098,121 19%

1
Our farmer suppliers’ GHG data is extracted from OVERSEER®, a New Zealand farm management software that is used by all
our farmer suppliers. As science evolves and progresses our understanding of farm systems, OVERSEER®’s software is regularly
updated. As a result, each year, we are required to update our on-farm GHG data using OVERSEER®’s latest version and restate the
prior years' numbers back to our base year (FY18-FY21) to make robust comparisons. Please refer to our FY21 GHG Inventory Report
for previous results we have disclosed. Farmer suppliers’ emissions are for the period 1 July 2021 to 30 June 2022. New suppliers,
whose contract agreements started on 1 June 2022, were excluded from both the GHG footprint and milk solids production numbers,
as they would have supplied Synlait for only 30 days. See page 14 for full disclosure of the methodology and uncertainties around
farm emissions.
2
Restated, as more complete datasets were provided across all suppliers and customers for Dairyworks in FY22, whereas only the top three
were provided last year.
PAGE 03 GREENHOUSE GAS INVENTORY REPORT – FY22

2. GHG INVENTORY SUMMARY FOR FY22 (CONTINUED)

Table 2: GHG Emissions by Activity

Emissions Sources FY18 – tCO2e FY19 – tCO2e FY20 – tCO2e FY21 – tCO2e FY22 – tCO2e

Scope 1
LPG 470 503 586 531 362
Coal 108,30108,301 113,643 114,082 113,235 111,478
Diesel – Milk Tankers 4,302 4,196 6,035 6,791 7,091
Diesel – Boiler Not applicable Not applicable 906 982 401
Distributed Natural Gas 163 169 10,058 10,748 8,657
Company Cars 73 76 84 243 296
Combi Lift and Bus 0 125 105 123 712
Packing Gas 1,266 1,349 1,719 1,103 937
Rental Cars 14 46 34 19 22
Refrigerants 0 20 0 19 0
Synlait Farms - - - - 956
Scope 2
Electricity 6,923 7,035 8,804 8,504 10,9233
Synlait Farms Electricity - - - - 174
Scope 3
Gas Transmission Losses 19 20 1,181 639 515
Electricity Transmission Losses 565 533 667 729 1,003
Synlait Farms Electricity Transmission Losses - - - - 16
Waste to Landfill 421 1,108 1,699 2,050 9044
Coal and DAF Transport 212 209 635 1,845 1,822
Road Freight (outbound) 2,481 2,683 3,475 5,956 5,679
Road Freight (inbound) 2,152 2,265 2,688 4,162 4,141
Sea Freight (outbound) 25,540 25,151 25,831 29,562 33,134
Sea Freight (inbound) 9,377 11,983 8,971 7,907 4,768
Air Freight (outbound) 392 551 1,617 2,468 913
Air Freight (inbound) 0 0 99 38 60
Inter-Warehouse Road Freight 559 605 644 338 58
Inter-Warehouse Sea Freight 307 756 1,306 352 688
Rail Freight - - - 59 237
Car Mileage 4 9 22 15 13
Staff Commute - - - - 2,919
Taxi 3 4 Excluded Excluded Excluded
Air Travel 1,814 1,829 1,223 335 341
Hotel 150 241 49 20 34
Farmer Suppliers 754,992 731,935 856,622 930,065 899,869
Total GHG Emissions 920,500 907,044 1,049,142 1,128,838 1,098,121

1
The significant decrease in diesel emissions is due to the Talbot Forest Cheese boiler being non-operational in FY22.
2
Synlait Combi Lift data was unavailable in FY22. FY22 emissions are due to the Synlait Bus only.
3
The electricity emissions factor increased by 0.020 kgCO2e/unit. If not for emissions factor change, total emissions would be 9187 tCO2e.
4
The significant decrease is due to the waste emissions factor changing from 1.17 to 0.65 kgCO2e/unit.
PAGE 04 GREENHOUSE GAS INVENTORY REPORT – FY22

2. GHG INVENTORY SUMMARY FOR FY22 (CONTINUED)

Table 3: FY22 GHG Emissions by Gas Type

FY22 Emissions by Type Total - tCO2e CO2 - tCO2e CH4 - tCO2e N2O - tCO2e HFC - tCO2e

Scope 1 and 2 Emissions 141,007 139,581 566 860 0

Scope 3 Farmer Supplier Emissions 899,869 139,872 585,734 174,263 0

Table 4: GHG Emissions Intensity

Emission Intensity Metrics FY18 FY19 FY20 FY21 FY22 FY18-FY22

tCO2e tCO2e tCO2e tCO2e tCO2e Evolution
Scope 1 and 2 Emissions 0.87 0.82 0.74 0.66 0.69 -21%
Per Tonne of Finished Product
Scope 3 Farmer Supplier Emissions 11.87 11.48 11.17 10.72 10.85 -9%
Per Tonne of Milk Solids

Table 5: FY22 GHG Emissions Intensity by Gas Type

FY22 Emission Intensity Metrics Total - tCO2e CO2 - tCO2e CH4 - tCO2e N2O - tCO2e HFC - tCO2e

Scope 1 and 2 Emissions 0.69 0.68 0.003 0.004 0

Per Tonne of Finished Product
Scope 3 Farmer Supplier Emissions 10.85 1.69 7.06 2.10 0
Per Tonne of Milk Solids

Table 6: Scope 3 Farmer Supplier Emissions Per kg of Fat and Protein Corrected Milk (FPCM)

FY18 FY19 FY20 FY21 FY22 FY18-FY22

tCO2e tCO2e tCO2e tCO2e tCO2e Evolution
Scope 3 Farmer Supplier Emissions Per kg of FPCM 0.93 0.90 0.88 0.84 0.86 -8%
PAGE 05 GREENHOUSE GAS INVENTORY REPORT – FY22

3. ORGANISATIONAL BOUNDARY

Organisational boundaries were set with reference to the methodology described in the GHG Protocol and
ISO14064-1:2018 standards. The following table outlines the entities that have been included and excluded in
the emissions inventory.

Table 7: Legal Entities

Entity Name Description/Function Ownership Inclusions Comment

Synlait Milk Limited Parent company Included

Synlait Milk Finance Limited Wholly owned subsidiary, holding company for 100% Included No activities that produced
financing purposes. GHG emissions therefore
not separately reported.
The New Zealand Dairy Wholly owned subsidiary, Synlait acquired the 100% Included No activities that produced
Company Limited shares in this company when it purchased the GHG emissions therefore
blending and canning plant in Auckland. Now a not separately reported.
non-trading entity.
Eighty-Nine Richard Wholly owned subsidiary, company that previously 100% Included No activities that produced
Pearse Drive Limited owned the underlying land at Synlait Auckland. GHG emissions therefore
Synlait acquired the shares in this company when not separately reported.
it purchased the blending and canning plant in
Auckland. Now a non-trading entity.
Synlait Business Consulting Wholly owned subsidiary, satellite office for staff 100% Included GHG emissions estimated to
(Shanghai) Co., Ltd. based in China. be de minimis, therefore not
reported.
Dairyworks Limited and Wholly owned subsidiaries, dairy processing 100% Included
Dairyworks (Australia) companies in New Zealand and Australia.
Pty Limited1
Sichuan New Hope Infant formula company registered in China, 25% Excluded Shareholding only,
Nutritional Foods owns the Akara and E-Akara brands, which are no operational control.
exclusively manufactured by Synlait.
Primary Collaboration Entity founded by several New Zealand companies 17% Excluded Shareholding only,
New Zealand Limited to gain a better understanding of the Chinese no operational control.
market and facilitate easier access to China.
Synlait Milk (Holdings) Wholly owned subsidiary, originally incorporated 100% Included No activities that produced
No.1 Limited for the purposes of holding newly acquired land GHG emissions therefore
located adjacent to the Synlait Dunsandel site. not separately reported.
Now a non-trading entity.
Synlait Milk (Dunsandel Wholly owned subsidiary, incorporated for the 100% Included
Farms) Limited purposes of dairy farming operations on land
located adjacent to the Synlait Dunsandel site.

1
Dairyworks (Australia) Pty Limited was wound up in the year.
PAGE 06 GREENHOUSE GAS INVENTORY REPORT – FY22

3. ORGANISATIONAL BOUNDARY (CONTINUED)

The following table outlines the business units/sites that have been included and excluded in the emissions inventory:

Table 8: Business Units

Business Unit/Sites Description/Function Location Inclusions Comment

Synlait Corporate Corporate emissions Dunsandel Included Includes staff travel and freight emissions which are
across all Synlait sites not site specific.
Synlait Dunsandel Milk processing and Dunsandel Included Includes manufacture and site-specific emissions only.
manufacturing site
Synlait Auckland Milk powder canning Auckland Included Includes manufacture and site-specific emissions only.
and blending site
Westney Road Warehousing Auckland Included Leased premise.
Synlait Pokeno Milk processing and Waikato Included Includes manufacture and site-specific emissions only.
manufacturing site
Synlait Farms Dairy farms Dunsandel Included Synlait had direct control in FY22. The farms were
only used to graze stock and irrigate wastewater in
FY22. Includes on-farm and electricity emissions.
Synlait Research and Research and Palmerston Excluded Office space leased and emissions estimated to be
Development Centre development, part of a North de minimis.
larger shared campus
Synlait Christchurch Satellite office Christchurch Excluded Office space leased and emissions estimated to be
de minimis.
Synlait China Satellite office Shanghai Excluded Office space leased and emissions estimated to be
de minimis.
Dairyworks Corporate Corporate emissions Christchurch Included Includes staff travel and freight emissions which are
across all Dairyworks not site specific.
sites (including Talbort
Forest Cheese and
leased warehouse)
Temuka Cheese Plant Cheese production Temuka Included Includes manufacture and site-specific emissions only.
(Talbot Forest Cheese) factory, milk supplied by Non-operational in FY22.
Synlait
Dairyworks Hornby Dairy processing factory Christchurch Included Includes manufacture and site-specific emissions only.
Gerald Connolly Place Warehousing Christchurch Included Leased premise.
PAGE 07 GREENHOUSE GAS INVENTORY REPORT – FY22

4. OPERATIONAL BOUNDARY

Synlait has chosen to report on Scope 1 and Scope 2 emissions, as well as part of Scope 3 emissions.

Table 9: Scope 3 Category Inventory Inclusions and Exclusions

Category 1 – Purchased goods and GHG emissions from Canterbury and Waikato dairy farms supplying Synlait are included
services in the inventory. However, emissions from dairy cows when they are outside of the farm
or wintering, i.e. when they are removed from milking platforms and sent to other farms
during winter, are excluded.
GHG emissions from non-milk suppliers (for example, packaging, raw materials,
equipment, services) are excluded from the inventory.
Category 2 – Capital goods Emissions from capital assets are excluded due to a lack of data availability, however
emissions from energy consumption for any construction work or testing of new
equipment are included.
Category 3 – Fuel and energy related Transmission losses linked to the purchase of electricity and natural gas are included in
activities not included in Scope 1 or the inventory.
Scope 2
Category 4 – Upstream transportation All inbound, outbound and inter-warehouse freight are included.
and distribution Sea freight may have a component of road and rail; however, we do not receive this
information from suppliers. An assumption of 50 km from site to port and 50 km from port
to the final destination is made to cover the road component and included in the inventory,
with the exception of freight carried by KiwiRail. For sea freight carried by KiwiRail, the
additional freight component is covered in rail freight.
A new rail siding for the transportation of goods between Synlait Dunsandel, Lyttleton
Port and Midland Port (in Rolleston) has become operational in June 2021. Rail freight
on this route is calculated. Any other rail freight that may happen during transportation is
estimated to be de minimis.
Inbound freight data includes all raw material and packaging purchases. Engineering
purchases are excluded due to the weight information being unavailable and it is
estimated that most of the inbound parts are under 2kg, therefore deemed de minimis.
To-date we have been unable to collect inbound courier data from suppliers. Most courier
items are also estimated to be less than 2kg, therefore are considered de minimis.
Category 5 – Waste and wastewater Waste from all manufacturing sites is included. Wastewater is excluded due to the
emissions factor being based on council processing of wastewater, whereas Synlait treats
its own wastewater in its key manufacturing sites (Dunsandel and Pokeno), and the energy
used is already included in Scope 2.
Category 6 – Business travel Air travel (domestic and international), hotel stays and reimbursed travel in private cars
are included. Taxis are excluded as collecting the relevant data requires significant manual
work, and their emissions have been demonstrated to be de minimis in previous years.
Category 7 – Employee commuting Included. Staff who drive electric cars or catch public transport other than the Synlait
provided buses (Rolleston to Dunsandel return, which is included under diesel in Scope 1),
are excluded as estimated to be de minimis.
PAGE 08 GREENHOUSE GAS INVENTORY REPORT – FY22

Category 8 – Upstream leased assets Fuel used in milk tankers (leased vehicles for the transportation of milk) is included in
Scope 1. Synlait leases a warehousing facility in Auckland (Westney Road) and Dairyworks
leases a warehouse in Hornby (Gerald Connolly Place). Emissions from LPG use in
Westney Road is included in Scope 1 (N/A for Hornby), electricity consumption in both
premises is included in Scope 2, and waste is included in Scope 3.
Category 9 – Downstream transportation Some freight activities not paid for by Synlait have been included in Category 4, as all
and distribution inbound and outbound freight activities are captured under this category. It is too difficult
to differentiate the contractual agreements for each consignment to separate freight paid
or not paid for by Synlait.
Freight movement beyond destination warehouse (i.e. distribution centre, retailer and/or
end customer) is not included due to lack of data and likely to be de minimis.
To-date we have been unable to collect outbound courier data from suppliers.
Most courier items are estimated to be less than 2kg, therefore are considered de minimis.
Category 10 – Processing of sold products Excluded. Most of our ingredients are processed by our customers into a multitude
of products. It would be technically difficult to estimate our share of our customers’
processing GHG emissions.
Category 11 – Use of sold products Excluded. We have carried Life Cycle Analyses for three of our key products and in all
cases GHG emissions from consumer use represented less than 2.4% of total emissions.
Category 12 – End-of-life treatment of sold Excluded. We have carried Life Cycle Analyses for three of our key products and in
products all cases GHG emissions from consumer disposal represented less than 0.3% of total
emissions.
Category 13 – Downstream leased assets No leases, so excluded.
Category 14 – Franchises Synlait does not operate any franchises.
Category 15 – Investments Synlait has a 25% shareholding in Sichuan Nutritional Foods. As Synlait is the exclusive
supplier and manufacturer of their infant formula, we estimate that the emissions linked to
the manufacturing of their products would already be captured in our GHG footprint.
PAGE 09 GREENHOUSE GAS INVENTORY REPORT – FY22

5. METHODOLOGIES AND UNCERTAINTIES

The inventory is prepared in accordance with the requirement of the Greenhouse Gas Protocol and ISO 14064-1:2018
specification. Where relevant, the inventory is aligned with industry or sector best practice for emissions measurement
and reporting.

An operational control consolidation approach is used to account for emissions.

5.1 Emissions Source Data Processes and Uncertainties

Table 10 below provides an overview of how data were collected for each GHG emissions source, the source of the data
and an explanation of any uncertainties or assumptions made.

Table 10: Emissions Source Data Processes and Uncertainties

Emissions Sources Scope Business Unit Reported Purpose Data Process/Uncertainties

LPG 1 Synlait Dunsandel, Mainly used for The supplier provides a monthly usage report.
Synlait Auckland, forklifts
Synlait Pokeno,
Westney Road,
Dairyworks Hornby,
Temuka Cheese Plant
Coal 1 Synlait Dunsandel Process heat Sub-bituminous coal.
Weighbridge tonnage recorded from supplier
invoices on a monthly basis.
Diesel – Milk Tankers 1 Synlait Dunsandel, Road transport Our transportation partner is contracted to use
Synlait Pokeno, Temuka of milk from farm their vehicles for milk transportation – they are not
Cheese Plant to manufacturing owned by Synlait. However, as most milk tankers
sites, and transfer have Synlait branding and do transport for Synlait
of milk between exclusively, diesel used for milk transportation has
factories been allocated to Scope 1. A system is in place at
Hilton Haulage to estimate diesel usage (in litres)
that is then provided to Synlait.
Diesel – Boiler 1 Dairyworks Hornby, Process heat Monthly invoices provide the amount of fuel
Temuka Cheese Plant purchases in litres.
Distributed Natural Gas 1 Synlait Auckland, Process heat Monthly invoices provide natural gas consumption
Synlait Pokeno data in kWh and in GJ.
Company Cars 1 Synlait Corporate, Business travel Fuel card information provides fuel purchases in
Dairyworks Corporate litres by fuel type.
Synlait Bus 1 Synlait Dunsandel Warehouse Diesel purchases are provided in litres at the end of
operations each financial year.
and employee
transportation
PAGE 10 GREENHOUSE GAS INVENTORY REPORT – FY22

Emissions Sources Scope Business Unit Reported Purpose Data Process/Uncertainties

Packing Gas 1 Synlait Dunsandel, Used for packing The suppliers provide a monthly usage report.
Synlait Auckland,
Synlait Pokeno,
Dairyworks Hornby,
Temuka Cheese Plant
Rental Cars 1 Synlait Corporate, Business travel The suppliers provide a monthly usage report. The
Dairyworks Corporate report includes travel distances and class of rental
vehicle. Dairyworks switched to the same travel
booking supplier as Synlait in January 2021 which
provided consistent reporting.
Refrigerants 1&3 Synlait Dunsandel, All units and Suppliers confirm whether or not any top-ups have
Synlait Auckland, systems that use occurred and, if so, provide amount and type of gas
Synlait Pokeno, refrigerants such topped up. All refrigerants are in Scope 1 except for
Westney Road, as air-conditioning, Westney Road’s which are in Scope 3.
Dairyworks Hornby, chillers, fridges
Temuka Cheese Plant
Electricity 2 Synlait Dunsandel, Office and The supplier provides a monthly usage report.
Synlait Auckland, manufacturing use
Synlait Pokeno,
Westney Road,
Dunsandel Farms,
Dairyworks Hornby,
Temuka Cheese Plant,
Gerald Connolly Place
Gas and Electricity 3 Synlait Dunsandel, Losses during Default transmission loss amount is used which is
Transmission Losses Synlait Auckland, transmission incorporated into the emissions factor provided by
Synlait Pokeno, MfE and applied to total electricity and natural gas
Westney Road, kWh use.
Dairyworks Hornby,
Temuka Cheese Plant,
Gerald Connolly Place
Waste to Landfill 3 Synlait Dunsandel, Manufacturing and Waste data is accessed directly through the waste
Synlait Auckland, office waste management provider’s online portal. Waste for
Synlait Pokeno, the Gerald Connolly warehouse, which is leased by
Westney Road, Dairyworks, is included in Dairyworks’ total waste.
Dairyworks Hornby, The mixed waste non methane recovery emissions
Temuka Cheese Plant, factor is applied to all sites.
Gerald Connolly Place
PAGE 11 GREENHOUSE GAS INVENTORY REPORT – FY22

Emissions Sources Scope Business Unit Reported Purpose Data Process/Uncertainties

Coal and DAF Transport 3 Synlait Dunsandel, Transportation Coal: road freight for transporting coal to Dunsandel
Synlait Pokeno of coal and DAF is estimated based on weight of coal purchased
sludge and distance to Dunsandel using the road freight
emissions factor and included in Scope 3.
DAF: the supplier records km and converts to diesel
usage (litres) based on average fuel efficiency for
each vehicle type.
Outbound Freight 3 Synlait Corporate, Delivery of finished Synlait – Distances in km are calculated from
(Sea, Road and Air) Dairyworks Corporate goods to national origin and destination countries and multiplied by
and international the weight of goods delivered to obtain tonnes
customers per kilometre (TKM). Information on the exact
discharge port is not readily available therefore
the first alphabetically listed port was used for
distance calculation. We have made the following
assumptions:
1/ all sea consignments depart from Lyttleton Port,
2/ all road consignments depart from Dunsandel,
3/ all air consignments depart from Christchurch
International Airport, 4/ consignments travel directly
to final destination, 5/ the road components for sea
and air freight (from original location to port and
from port to final destination) are 50km at each end
unless the carrier is the rail transport provider from
Synlait Dunsandel to Lyttleton Port (the emissions
from this carrier are included in rail freight), making
it an estimated 100km of road freight, and 6/ all air
consignments are >3700km therefore the long haul
emissions factor is to be used.
Dairyworks – Sales reports have been used to export
the outbound sea and road freight. Insufficient data
is available to calculate air freight and it is estimated
to be de minimis.
PAGE 12 GREENHOUSE GAS INVENTORY REPORT – FY22

Emissions Sources Scope Business Unit Reported Purpose Data Process/Uncertainties

Inbound Freight 3 Synlait Corporate, Procurement Synlait – Distances in km are calculated from
(Sea, Road and Air) Dairyworks Corporate of ingredients origin and destination countries and multiplied by
and packaging the weight of goods delivered to obtain tonnes
materials per kilometre (TKM). Information on the exact
discharge port is not readily available therefore
the first alphabetically listed port was used for
distance calculation. We have made the following
assumptions: 1/ all sea consignments arrive at
Lyttleton Port, 2/ all air consignments arrive at
Christchurch International Airport, 3/ all road
consignments travel the average distance of 358km
(this is the average distance from major cities in New
Zealand to Dunsandel), 4/ the road components for
sea and air freight (from original location to port and
from port to final destination) are 50km at each end,
making it an estimated 100km of road freight and 5/
all air consignments are >3700km therefore the long
haul emissions factor is to be used.
There was an incomplete dataset for June and
July 2022 due to resource shortages in FY22.
August 2021 to May 2022 data was extrapolated
using FY21 seasonal purchase trending to model
emissions for June and July 2022.
Dairyworks – Sales reports have been used to export
the outbound sea and road freight. Insufficient data
is available to calculate air freight and it is estimated
to be de minimis.
Inter-Warehouse Freight 3 Synlait Corporate Movement of The total weights moved between each site are
(Road and Sea) goods between multiplied by distance between the sites. Assumed
sites and all inter-island transfers travelled by sea and are
warehousing transported to and from the nearest port to the site.
facilities
Rail Freight (Inbound, 3 Synlait Corporate Movement of The rail siding at Synlait Dunsandel became
Outbound and Inter- goods between operational in May 2021. Trip data is obtained from
Warehouse) Lyttleton Port internal recording via an excel query.
and Dunsandel
Car Mileage 3 Synlait Corporate, Staff use of own car Km travelled are calculated from staff mileage claims.
Dairyworks Corporate for business travel
PAGE 13 GREENHOUSE GAS INVENTORY REPORT – FY22

Emissions Sources Scope Business Unit Reported Purpose Data Process/Uncertainties

Staff Commute 3 Synlait Corporate, Staff travel from Current financial year FTE head count for each
Dairyworks Corporate home to work and site was used to extrapolate on results from a
back home company-wide survey that collected data on type
of vehicle used, distance travelled to most frequent
site, and number of days worked on-site per week.
This survey had an approximate response rate
of 50%. Staff who registered an electric vehicle
(for charging on site) and staff who travel by the
Synlait provided bus are excluded from the staff
commute totals. Average daily staff that travel on
Synlait bus was estimated using two months of
driver pick-up records. For Synlait staff, due to the
site restrictions in place during the height of the
COVID-19 pandemic, the survey included the option
to detail the number of months worked from home
in FY22. This was factored into the emissions during
extrapolation.
Air Travel and Hotels 3 Synlait Corporate, Business travel The supplier provides a monthly usage report. The
Dairyworks Corporate report includes travel distances and class of travel.
Hotel information includes location and number
of nights. Dairyworks switched to the same travel
booking supplier as Synlait in January 2021 which
provided consistent reporting.
Farmer Suppliers 3 Synlait Corporate Supply of raw milk Emissions from farmer suppliers are GHG emissions
from the dairy farms that Synlait has a direct supply
agreement with, for the purchase of raw milk. They
do not include emissions from other agricultural
products or dairy products purchased from other
suppliers for processing.
Farmer supplier emissions are directly obtained
from OVERSEER®, a farm management software
that models agricultural GHG emissions based on
various parameters. For more details, please see the
dedicated section below.
PAGE 14 GREENHOUSE GAS INVENTORY REPORT – FY22

5.2 Farmer Supplier Emissions

Scope: Farmer emissions are Scope 3 GHG emissions from the dairy farms that have an existing supplier contract with
Synlait during the reporting period, for the supply of raw milk. In FY22, Synlait’s farmer suppliers were located in the
regions of Canterbury and Waikato.

Exclusions: New farmer suppliers who come on after 31 May of the reporting year are excluded, as they will have only
supplied milk to Synlait for one month. Emissions from dairy cows when they are outside of the farm or wintering, i.e.,
when they are removed from milking platforms and sent to other farms during winter, are excluded. Emissions from
agricultural products or dairy products purchased from other suppliers for processing (with whom there is no direct
supply agreement) are also excluded.

Measurement period: The measurement period used for farmer emissions is slightly different to the organisational
measurement period: it follows OVERSEER’s reporting period, which is 1 July to 30 June.

Modelling tool used: Farmer supplier emissions are directly obtained from OVERSEER®, a New Zealand farm
management software that models agricultural GHG emissions based on various parameters, such as the production
of effluent, the application of nitrogen fertiliser and the supplements provided to the cows. OVERSEER® is a widely used
tool in New Zealand, also used as a regulatory tool by certain regional councils for farm resource consents.
More information can be found here: https://www.overseer.org.nz/

Data process:

1. Farm data (such as the nutrient budget) is entered into OVERSEER® by the farm manager or their consultant with the
help of Synlait Sustainability Advisors and/or contracted consultants.

2. Once the current year’s data has been entered into OVERSEER®, Synlait staff will check that farms have activated
software updates from OVERSEER®, which will update all farm calculations, including GHG emissions for all
measurement periods (including updates to previous years).

3. The modelled farm data, including GHG emissions, is then extracted from OVERSEER® using the OVERSEER® API
to a consolidation spreadsheet (one for Canterbury and one for Waikato).

4. Where FY data is not available for a farm (for example, it has ceased to supply Synlait; it does not have an active
OVERSEER® account; or data is not available by our internal cut-off date), previous year’s data is used if required.

Emission factor: The quantification of GHG emissions is conducted via the OVERSEER® software.

Quantification of GHG type: Each source of GHG data, broken down by type of GHG, is also extracted from OVERSEER®.
This enables Synlait to calculate the average proportion of CO2, CH4 and N2O gases within total GHG emissions across
all dairy farms.
PAGE 15 GREENHOUSE GAS INVENTORY REPORT – FY22

5.3 Emissions Factors

Emissions factors released by the NZ Ministry for the Environment (MfE) are used where available.
Where there are no appropriate MfE factors, DEFRA (now DBEIS) factors are used.

5.4 Base Year Recalculation Policy

Base year data may need to be revised when material changes occur and have an impact on calculated emissions.
Our policy is to recalculate base year data and indicate in a footnote any recalculation or re-statement of previously
disclosed data, in any of the following situations:

• Changes are estimated to represent more than 5% of Scope 1, 2 or 3 emissions; or

• There are significant changes to our reporting boundaries, including the outsourcing or insourcing of emitting
activities; or

• There are significant changes in our calculation methodology (such as an update in OVERSEER®’s software); or

• We discover significant errors, or a number of cumulative errors that are collectively significant, in our previous
disclosures.

5.5 GHG Information Management and Monitoring Procedures

GHG emissions are measured annually and compared against the base year. Each source of GHG emissions has an Excel
spreadsheet which includes raw data and calculated GHG emissions. A master spreadsheet performs the consolidation
of all GHG emissions at group level.

This document provides an overview of boundaries and scopes, data collection processes and GHG measurement
methodologies for each emission source and is updated each year. More details are available in each of the GHG
emissions spreadsheets.

Synlait’s GHG Emissions Inventory Report, associated documents and spreadsheets are prepared and reviewed by the
Synlait sustainability team. Synlait provides appropriate training to any new staff that has responsibility for this role to
ensure accuracy and consistency of the GHG calculations.

5.6 Other Emissions – HFC, PFC, NF3 and SF6

Air conditioning units and chillers contain HFCs. The sites have not reported top-ups of gases for this reporting period.
Air conditioning is excluded from the inventory where offices are leased.

There are no operations that use PFC, NF3 or SF6.

5.7 Other Emissions – Biomass

No biomass was combusted by Synlait during the FY22 reporting period.
PAGE 16 GREENHOUSE GAS INVENTORY REPORT – FY22

6. GHG INVENTORY ASSURANCE

Deloitte Limited has been appointed as the third-party independent assurance provider. A reasonable level of assurance
has been given over the Scope 1 and 2 assertions and quantifications included in this report and a limited level of
assurance over the Scope 3 assertions and quantifications.

Person responsible: Simon Robertson, Board Chair

Dated: 18 January 2023

PAGE 17 GREENHOUSE GAS INVENTORY REPORT – FY22

INDEPENDENT REASONABLE AND LIMITED ASSURANCE REPORT

TO THE BOARD OF DIRECTORS OF SYNLAIT MILK LIMITED
Report on Greenhouse Gas Emissions Inventory Report
We have undertaken a reasonable assurance engagement in relation to Scope 1 and 2 emissions and a limited assurance
engagement in relation to Scope 3 emissions within the Greenhouse Gas Inventory Report (the ‘Inventory Report’) of
Synlait Milk Limited and its subsidiaries (‘Synlait Milk Limited’) for the year ended 31 July 2022, comprising the Emissions
Inventory and the explanatory notes set out on page 1 to 16.

The Inventory Report provides information about the greenhouse gas emissions of Synlait Milk Limited for the year ended
31 July 2022 and is based on historical information. This information is stated in accordance with the requirements of
International Standard ISO 14064-1 Greenhouse gases – Part 1: Specification with guidance at the organisation level for
quantification and reporting of greenhouse gas emissions and removals (‘ISO 14064-1:2018’) and the Greenhouse Gas
Protocol: A Corporate Accounting and Reporting Standard (2004) (‘the GHG Protocol’).

Board of Directors’ Responsibility

The Board of Directors are responsible for the preparation of the Inventory Report, in accordance with ISO 14064-1:2018
and the GHG Protocol. This responsibility includes the design, implementation and maintenance of internal control
relevant to the preparation of an Inventory Report that is free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on Scope 1 and 2 emissions and a limited assurance conclusion on Scope
3 emissions in the Inventory Report based on the evidence we have obtained. We conducted our reasonable and
limited assurance engagements in accordance with International Standard on Assurance Engagements (New Zealand)
3410: Assurance Engagements on Greenhouse Gas Statements (‘ISAE (NZ) 3410’), issued by the New Zealand Auditing
and Assurance Standards Board. That standard requires that we plan and perform the engagement so as to obtain
reasonable assurance that Scope 1 and 2 emissions within the Inventory Report, and limited assurance that Scope 3
emissions within the Inventory Report are free from material misstatement, respectively.

Reasonable assurance for Scope 1 and 2 emissions

A reasonable assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves performing procedures to
obtain evidence about the quantification of emissions and related information in the Inventory Report. The nature, timing
and extent of procedures selected depend on the assurance practitioner’s judgement, including the assessment of the
risks of material misstatement, whether due to fraud or error, in the Inventory Report. In making those risk assessments,
we considered internal control relevant to the Company’s preparation of the Inventory Report. We also:

• Assessed the suitability in the circumstances of the Synlait Milk Limited’s use of ISO 14064-1:2018 and the
GHG Protocol as the basis for preparing the Inventory Report

• Evaluated the appropriateness of quantification methods and reporting policies used, and the reasonableness
of estimates made by the Synlait Milk Limited; and

• Evaluated the overall presentation of the Inventory Report.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our reasonable
assurance opinion in respect of the Scope 1 and 2 emissions.
PAGE 18 GREENHOUSE GAS INVENTORY REPORT – FY22

Limited assurance for Scope 3 emissions

A limited assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves assessing the suitability in
the circumstances of the Company’s use of ISO 14064-1:2018 and the GHG Protocol as the basis for the preparation
of the inventory report, assessing the risks of material misstatement of the inventory report whether due to fraud or
error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation
of the inventory report. A limited assurance engagement is substantially less in scope than a reasonable assurance
engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the
procedures performed in response to the assessed risks.

The procedures we performed were based on our professional judgement and included enquiries, observations of
processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification
methods and reporting policies, and agreeing or reconciling with underlying records.

Given the circumstances of the engagement, in performing the procedures listed above we:

• Through enquiries, obtained an understanding of Synlait Milk Limited’s control environment and information systems
relevant to emissions quantification and reporting, but did not evaluate the design of particular control activities,
obtain evidence about their implementation or test their operating effectiveness.

• Evaluated whether Synlait Milk Limited’s methods for developing estimates are appropriate and had been
consistently applied. However, our procedures did not include testing the data on which the estimates are based or
separately developing our own estimates against which to evaluate Synlait Milk Limited’s estimates.

• Reviewed adherence to the principles and requirements outlined in ISO 14064-1:2018 and the GHG Protocol, which
included a consideration of completeness.

Inherent Limitations
Scope 1, 2 and 3 emissions
Non-financial information, such as that included in Synlait Milk Limited Inventory Report, is subject to more inherent
limitations than financial information, given both its nature and the methods used and assumptions applied in
determining, calculating and sampling or estimating such information. Specifically, GHG quantification is subject to
inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values
needed to combine emissions of different gases.

As the procedures performed for this engagement are not performed continuously throughout the relevant period and
the procedures performed in respect of the Company’s compliance with ISO 14064-1:2018 and the GHG Protocol are
undertaken on a test basis, our assurance engagement cannot be relied on to detect all instances where the company
may not have complied with the ISO 14064-1:2018 and the GHG Protocol. Because of these inherent limitations, it is
possible that fraud, error or non-compliance may occur and not be detected.

The Company uses publicly available emissions factors in preparation of the Greenhouse Gas Inventory. We have agreed
these to their source, but the scope of the engagement does not provide assurance over the emissions factors or the
agricultural science used to determine the emissions factors.
PAGE 19 GREENHOUSE GAS INVENTORY REPORT – FY22

Scope 3 emissions
For the Scope 3 emissions, we note that a limited assurance engagement is not designed to detect all instances of non-
compliance with the ISO 14064-1:2018 and the GHG Protocol, as it generally comprises making enquires, primarily of the
responsible party, and applying analytical and other review procedures.

In addition, Scope 3 emissions relating to on-farm emissions (especially fertiliser and methane production for dairy cows)
are inherently uncertain due to the fact that they arise from natural processes which may vary depending on contributing
factors.

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand)
(‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

The firm provides services related to taxation compliance, data quality of other sustainability metrics and KPI’s, financial
and reporting advisory and consulting support services. Other than in our capacity as assurance provider and the
provision of these services, we have no relationship with or interests in the Company or any of its subsidiaries.

The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including documented
policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.

Use of Report
Our assurance report is made solely to the directors of the Company in accordance with the terms of our engagement.
Our work has been undertaken so that we might state to the directors those matters we have been engaged to state
in this report and is for no other purpose. We accept or assume no duty, responsibility or liability to any other party in
connection with the report or this engagement, including without limitation, liability for negligence in relation to the
conclusions expressed in this report.

Reasonable Assurance Opinion for Scope 1 and 2 Emissions

In our opinion, the Scope 1 and 2 emissions of Synlait Milk Limited within the Inventory Report for the year ended
31 July 2022 have been prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018
and the GHG Protocol.
PAGE 20 GREENHOUSE GAS INVENTORY REPORT – FY22

Limited Assurance Conclusion for Scope 3 Emissions

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that Synlait Milk Limited’s Scope 3 emissions within the Inventory Report for the year ended
31 July 2022 are not prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018 and
the GHG Protocol.

Chartered Accountants
18 January 2023
Auckland, New Zealand

This assurance report relates to the Greenhouse Gas Inventory Report of Synlait Milk Limited for the year ended 31 July 2022 included on
Synlait Milk Limited’s website. Synlait Milk Limited is responsible for the maintenance and integrity of Synlait Milk Limited’s website. We have
not been engaged to report on the integrity of Synlait Milk Limited’s website. We accept no responsibility for any changes that may have
occurred to the Greenhouse Gas Inventory Report since they were initially presented on the website. The assurance report refers only to the
Greenhouse Gas Inventory Report named above. It does not provide an opinion on any other information which may have been hyperlinked
to/from these Greenhouse Gas Inventory Report. If readers of this report are concerned with the inherent risks arising from electronic data
communication they should refer to the published hard copy of the Greenhouse Gas Emissions Inventory Report and related assurance
report dated 18 January 2023 to confirm the information included in the Greenhouse Gas Inventory Report presented on this website.