Greenhouse Gas Emissions (GHG) from the food and fibre sector, (and its associated waste) account for around half of New Zealand’s total emissions. Synlait Milk Limited is implementing a range of initiatives to reduce emissions and deliver long-term financial benefits.
Synlait has set targets relating to climate, welfare, water and waste – including an off-farm 50 per cent reduction in GHG emissions per kg of the product by 2028 and an on-farm 35 per cent reduction in GHG emissions per kg of milk solids by 2028.
According to Hamish Reid, Director of Sustainability and Brand at Synlait, “we need to act now and we need to be bold. It’s both a matter of mitigating climate related risks and, at the same time, seizing opportunities to reimagine all aspects of our business and value chain”.
In 2019, ANZ arranged and funded a NZ$50 million sustainability linked loan which has supported Synlait’s sustainability agenda.
“ANZ enabled us to enter into an ESG linked loan, sending two strong signals to our stakeholders,” Hamish says.
“First, that leading banks today recognise that sustainability performance results in lower risk and second, that sustainability performance can lead to financial benefits. Having a diversity of like-minded partners accompanying us in our transition is critical for us to achieve our goals.”