Sustainability and our Carbon Neutral Journey

PROCESS MODEL:

Ground Preparation and seeding undertaken based on crop forecasting models

Crops grown with oversight by agronomists using IPM

programs. In ground forecasts completed weekly.

Crops harvested based on factory forecasts. TAG

system is in place to incentivise farm to produce

consistent, high quality products with a minimum of foreign body contamination

and disease.

Product is sorted, washed and dried in our HACCP

approved facility, majority of production is made to order

based on order requirements from PEL

Product is packed and cartoned then labeled ready

for delivery to PEL Distribution Centers

Product is delivered to the DC in refrigerated trucks via a refrigerated truck dock, all

loads are temperature checked and recorded

Raw material is transported from farming operations to

the factory for vacuum chilling and holding

Our Vision

Compassionate People, Inspiring Positive Change, Enhancing Humanity …

Our Mission

To Provide Healthy, Sustainable Products and Raise the Awareness of Health and Wellbeing through innovation, and by working with Committed and Aligned partners….

Our Business

Integrated grower, processor, distributor and marketer. Five growing operations covering 529 acres in North Island 2 growing operations covering 130 acres in the South island 6 day per week processing with 95 full time staff in Auckland 6 day per week processing with 60 full time staff in Nelson Local market supply and export to the Pacific and South East Asia Supply to retail and food service customers HACCP based food safety program First NZ based supplier to be WQA certified

Why Carbon Neutral??

Aligned with our vision and mission Proactive approach to managing upcoming requirements

of ETS (e.g. Refrigerant) Improves employment brand and staff engagement The right thing to do Bottom line benefits through cost reduction Great marketing opportunity (take care with Green wash

however, more on this later) Risk management

What is Involved?

Develop business goals and inventory design Set organisational boundaries Set operational boundaries Identify and calculate GHG inventory Report GHG emissions Verify GHG emissions Set reduction targets

Total greenhouse gas emissions by scope

Scope Emissions Sources Tonnes CO2

Scope 1 Petrol, Diesel, LPG, Refrigeration, N-fertiliser use 658.88

Scope 2 Electricity 341.01

Scope 3 Domestic Air travel, International Air travel, Freight, Embodied, Waste, Couriers

614.96

Total 1614.85

NZFC Results

0

50

100

150

200

250

300

350

400

Ele

ctric

ity(A

uck)

Dis

trib

utio

n

Sol

id w

aste

Die

sel

(Gro

win

g)

Wat

er

Fer

tilis

er(e

mbo

died

)

N f

ertil

iser

(use

)

Pet

rol (

Auc

k)

Die

sel (

Auc

k)

Int.

Air

Tra

vel

tCO

2e

659, 0

341, 0

615, 0

Scope 1

Scope 2

Scope 3

1,134, 1

177, 0

23, 0

281, 0

Auckland

Grow ing

Transport

Distribution

Cost/Benefit• Savings of approximately $420,000pa via waste CIG• Focused our resources in the right direction• Opened opportunities for Government funding for reduction

initiatives• Focused our GHG emissions initiatives onto low hanging fruit

ensuring best “bang for buck”• Increased our sustainability profile to our industry and customers• However only one part of our overall sustainability strategy (Don’t

forget Economic and Social sustainability)

Nelson Factory

• Used “Ecochill” refrigeration» Glycol rather than refrigerant» Propane rather than “normal refrigerant”» 15% higher capital cost but payback around 2 years» Significantly reduced environmental risk

• Significant reduction in GHG inventory through reduction in line haul freight

• Take advantage of local microclimate for improved production without external inputs

Frost Prevention

• Reduce need for greenhouse production

• Significant energy reduction from traditional methods (Helicopters)

• Allows for increase lettuce programs which benefit crop rotation strategies, protecting soil health

• Automatic so only used when frost thresholds are reached.

Controlled Traffic Farming

• GPS combined with auto steer technology• Significant reduction in energy required to re-crop land• 30% reduction in fuel use and reduced horsepower

requirement for tractor fleet• Significant improvements in soil health due to reduced

compaction• Reduced irrigation requirement due to increased water

holding capacity of the soil• NZFC funding 3 year FAR project into CTF and

sustainable farming

Landfill Reduction

• Majority of vegetable waste now sent to stock farms• Collapsible bins used to transport waste to reduce

backload emissions profile• Packaging film recycling initiated• Paper and cardboard recycling initiated (including

offices)• Instigated the first major commercial launch of PLA

packaging for FreshZone Sprouts.

Other initiatives

• Fleet management (trialled hybrids, smartcar before settling on low emissions diesel fleet)

• Vendor management – “greening” the supply chain

• Mechanical weeding

• Fertiliser banding