Skellerup Holdings Limited
Climate Impact & Sustainability Data (2024, FY23 (2022-07-01 to 2023-06-30))
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:53,903 tCO2e/year
Scope 1 Emissions:1,133 tCO2e/year
Scope 2 Emissions:2,306 tCO2e/year
Scope 3 Emissions:50,464 tCO2e/year
Carbon Intensity:10.4 tonnes CO2-e per $1 million revenue
ESG Focus Areas
- Climate Change
- Health and Safety
- Diversity and Inclusion
- Supply Chain Responsibility
Environmental Achievements
- 11% reduction in Scope 1 and 2 GHG emissions (3,440 tonnes CO2-e in FY24 vs 3,866 tonnes CO2-e in FY23)
- 10% reduction in GHG emissions intensity (10.4 tonnes CO2-e per $1 million revenue in FY24 vs 11.6 tonnes CO2-e per $1 million revenue in FY23)
- Investments in closed-circuit water systems, energy-efficient equipment, and more efficient facilities to reduce water usage and energy consumption
Social Achievements
- Total Injury Rate (TIR) reduced from 2.43 in FY22 to 1.50 in FY24
- No serious harm injuries or fatalities for the sixth successive year
- Implementation of ISO 45001 certification at seven global sites
- Implementation of four-day, ten-hour shifts at some sites to improve efficiency and employee well-being
- Introduction of permanent part-time and hybrid roles to attract and retain talent
- Training on Code of Ethics, Modern Slavery, Diversity, and Information Security
Governance Achievements
- First-time reporting under the New Zealand Climate-related Disclosure Regime
- Full compliance with all recommendations of the NZX Corporate Governance Code for FY24
- Establishment of a Sustainability Committee to oversee ESG matters
- Annual review of the Group’s Risk Management Report by the Board
- Regular visits to key sites by Board members to engage with staff and assess operations
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions (target year not specified)
Medium-term Goals:
- Further develop in-market manufacturing capabilities
- Continue to expand distribution activities closer to end customers and markets
Short-term Goals:
- Develop and set interim and long-term science-based emissions-reduction targets
Environmental Challenges
- Higher-than-anticipated customer destocking in the first half of FY24
- Increased tax burden and higher interest charges
- Supply chain disruptions due to uneven ordering patterns and customer nervousness
- Increasing isolationism and tariffs in North America ($3 million per annum in FY24)
- Unsustainable airfreighting of products to North America
- Risks associated with climate change (physical and transition risks)
Mitigation Strategies
- Strong second-half performance offsetting the impact of destocking
- Investigation of 'in-market manufacture' possibilities
- Carrying higher levels of stock in market to address supply chain fragility
- Continued efforts to manage tariffs without compromising profitability
- Investments in new equipment to standardize and improve manufacturing processes
- Investment in a clean room at Wisconsin facility for medical applications
- Relocation of Chicago distribution facility to meet growth
- Development of climate-related scenarios and risk assessments
- Implementation of initiatives to reduce GHG emissions
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- No reports of modern slavery
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather disrupting supplier operations
- Heat and humidity disrupting manufacturing
- Supply chain disruptions from extreme weather
- Shift in dairy farming location and methods impacting demand
- Extreme weather impacting customer operations
Transition Risks
- Policy changes (tariffs, carbon pricing)
- Increased freight costs
- Reduced demand due to industry decarbonization
- Restricted access to capital
- Higher costs from product take-back/recycling
- Increased scrutiny on input materials
Opportunities
- Increased demand for dairy products due to intensive farming
- Increased demand for footwear due to extreme weather
- Increased demand for dairy products due to rainfall
- Increased demand for vacuum systems in disaster relief
- Increased demand for roofing products due to solar installations
- Increased demand for products in urban intensification
- Increased demand for low-carbon building materials
- Opportunities in water management and effluent management
- Opportunities in electric vacuum systems
Reporting Standards
Frameworks Used: NZ CS (Aotearoa New Zealand Climate Standards)
Certifications: ISO 45001 (at seven sites)
Third-party Assurance: Ernst & Young (EY) (for financial statements; GHG emissions inventory not yet independently assured)
Sustainable Products & Innovation
- Thriver™ Teat (launched in September 2024)
- Enhancements to vacuum systems for wastewater applications
- Dispensing pump for global hygiene customer
Reporting Period: FY23 (2022-07-01 to 2023-06-30)
Environmental Metrics
Total Carbon Emissions:4,391 tCO2e/year (Scope 1 and 2)
Carbon Intensity:10% reduction in emissions intensity in FY23
ESG Focus Areas
- Climate Change
- Environmental Sustainability
- Social Sustainability
- Governance
Environmental Achievements
- 5% reduction in Scope 1 and 2 GHG emissions compared to the previous corresponding period (pcp)
- 10% reduction in emissions intensity (tonnes of CO²-e per $1 million of revenue)
Social Achievements
- Reduction in total injury rate from 2.43 in FY22 to 1.87 in FY23
- No fatalities or serious harm injuries for the fifth successive year
- Implementation of a Modern Slavery Policy
- Development of a Code of Conduct for key suppliers
- Relocation of Stevens milk filter business and DEKS roofing and plumbing business to new, more efficient facilities
- Transition to four-day, ten-hour shifts at several manufacturing sites
Governance Achievements
- Full compliance with all recommendations of the NZX Corporate Governance Code for FY23
- Formation of a Sustainability Committee in 2022
- Annual review of the Company’s governance policies, procedures and practices
- Implementation of a Takeover Response Policy
Climate Goals & Targets
Short-term Goals:
- Review identified climate-related risks and opportunities to determine necessary adaptation or acceleration of mitigation strategies (FY24)
Environmental Challenges
- Escalating input costs (natural and synthetic rubbers)
- Freight costs and capacity shortfalls
- Wage pressures
- Lumpy demand due to customer overstocking
- Project delays with key customers
- Supply chain disruptions due to COVID-19 restrictions in China and Vietnam
- COVID-19 infections and personnel shortages at Wigram facility
Mitigation Strategies
- Carrying slightly higher inventory during supply chain disruptions
- Working to readjust inventory levels to meet expected growth
- Close collaboration with customers to understand their markets and reduce costs
- Acquisition of full ownership of Sim Lim Technic LLC
- Productivity gains through continuous process improvement
- Investment in better business information and insights
- Implementation of the NetSuite platform at Masport
Supply Chain Management
Responsible Procurement
- Implementation of a Modern Slavery Policy
- Development of a Code of Conduct for key suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Environmental, chronic and acute climatic variables
Transition Risks
- Policy, legal, technology, market and reputation changes associated with climate change mitigation and adaptation
Reporting Standards
Frameworks Used: NZX Corporate Governance Code
Certifications: ISO 45001 (three sites)
Third-party Assurance: Ernst & Young (EY)