2023 Climate-Related Disclosures Report

Scales Corporation Limited
Climate-Related Disclosures Report – 2023

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix02 Contents
Page 03
1.1 Scales Corporation
1.2 This document
Operational Locations
Page 05
2.1 Board oversight of climate risks and opportunities
2.2 Board skills and competence
2.3 Monitoring targets
2.4 Management’s role in assessing and managing climate-
related risks and opportunities
Page 09
3.1 Current business model and strategy
3.1.1 Approach to scenario analysis
3.2 Climate risks and opportunities
3.3 Transition plans
Page 18
4.1 Context and scope
4.2 Climate risk identification
4.3 Climate risk analysis
4.4 Risk evaluation
4.5 Risk treatment
4.6 Monitoring and review
Page 22
5.1 GHG emissions targets plan
5.2 GHG emissions
5.2.1 Methodologies, assumptions and uncertainties
5.2.2 Base year
5.2.3 Inclusions
5.2.4 Exclusions
5.3 Exposure to physical and transitional risks/opportunities
5.3.1 Vulnerability to physical risks
5.3.2 Vulnerability to transition risks
5.3.3 Climate-related opportunities
5.3.4 Capital deployment FY23
5.4 Industry based metrics
6 Targets
6.1 Scales Group Targets
6.2 Mr Apple Targets
Page 29
Scales Group
Operating entities
Contents

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix03 Contents
1.1 Scales Corporation Limited
Scales Corporation Limited (Scales) is a global agribusiness, comprising ten businesses across three divisions and
four geographies. We have been trading for 112 years, and being able to adapt to future risks and opportunities has
been central to our success.
Scales is on a journey to formally integrate climate risk analysis into our wider business strategy, to increase our
resilience and deliver long-term stakeholder value. This has been an important process to further understand how
climate-related physical and transition risks will impact our business over the short, medium and long-term. We are
working towards building our internal capability so we can evolve and grow our understanding and knowledge of
climate-related risks and opportunities over time. We refer in this report to our strategic refresh, which will impact
our sustainability and climate-related strategy and is intended to take place by 2025.
1.2 This document
This is Scales’ first Climate-Related Disclosures (CRD) report, prepared in relation to the Scales Group, as detailed
in the Appendix. The climate assessments in this report considered all subsidiaries and joint ventures, and Scales’
Emissions Inventory described in section 5.2 includes emissions in respect of all of Scales’ operational subsidiaries
and joint ventures, calculated on the basis of an equity-share approach.
This document is Scales’ CRD report for the 1 January 2023 - 31 December 2023 reporting period (2023) and
constitutes Scales’ Climate Statements under the Financial Markets Conduct Act 2013 for 2023. This document
has been prepared in compliance with the Aotearoa New Zealand Climate Standards (CS) 1, 2 and 3, and covers
four key thematic areas: Governance, Strategy, Risk Management and Metrics & Targets. The Greenhouse Gas
(GHG) emissions and metrics disclosed in this report should be read with the methodologies, assumptions and
uncertainties in
.
We have used the following adoption provisions available under New Zealand CS 2:
• NZCS2 (12), (13) and (14) anticipated financial impacts, time horizons over which these occur and explanation of
why quantitative information is not able to be provided;
• NZCS2 (15) transition plan and how it aligns with internal capital deployment and funding decisions (noting that
progress towards Scales’ transition planning is disclosed);
• NZCS2 (20) comparative year for metrics;
• NZCS2 (22) analysis of trends from comparison of metrics.
Climate-related risk management is an emerging area, and often uses data and methodologies that are developing
and uncertain. This report contains forward looking statements, including climate-related scenarios, targets,
assumptions, climate projections, forecasts, statements of Scales’ future intentions, estimates and judgements
that may not evolve as predicted. Scales has used its best efforts to provide a reasonable basis for forward-
looking statements and is committed to progressing our response to climate-related risks and opportunities
over time but is constrained by the novel and developing nature of this subject matter. We caution reliance on
climate-related, forward-looking statements that are necessarily less reliable than other statements Scales may
make in its annual reporting. In particular, these statements involve assumptions, forecasts and projections about
Scales’ present and future strategies and Scales’ future operating environment. Such statements are inherently
uncertain and subject to limitations, particularly as inputs, available data and information are likely to change. We
have based these statements on our current knowledge as at 23
rd
April 2024. Nothing in this report should be
interpreted as capital growth, earnings or any other legal, financial tax or other advice or guidance.
Mike Petersen
Chair
23
rd
April 2024
Andy Borland

Managing Director
1. Introduction

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix04 Contents
Australia
USA
Belgium
New Zealand
Horticulture
Juice manufacturer
Vertically integrated
apple grower,
packer & marketer
Apple marketer
Logistics
Air & sea freight
Global Proteins
Petfood ingredient
procurers, processors
& marketers
Edible protein exporter
Operational Locations

This section includes a summary of Scales’ governance and
management structures that are in place to manage climate-
related risks and opportunities across the Group, including:
• Roles, responsibilities and processes in place to enable the
Scales Board and relevant Board Committees to provide
oversight of climate-related risks and opportunities;
• Management’s role in assessing and managing climate-
related risks and opportunities.
The businesses that make up the divisions within the Group
are a combination of wholly or partly owned subsidiaries
and joint ventures but are collectively referred to as ‘Scales
business units’ in this report.
2. Governance
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix Contents05
Scales Corporation Limited, Climate-Related Disclosures Report 2023.

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix06 Contents
2.1 Board oversight of climate risks and opportunities
Scales has considered climate risk within its Enterprise Risk Management (ERM) framework for the last five years,
and we are in the process of formally embedding climate risk into our strategic framework.
The Scales Board has responsibility for approving strategy and overseeing and responding to climate-related risks
and opportunities. The Board approves strategy, sets metrics and targets, approves the annual CRD and delegates
the duties below to two Board Committees:
• The Health & Safety and Sustainability Committee (HSSC) has been delegated the responsibility for reviewing
climate-related strategy, including associated metrics and targets, monitoring performance against these targets
and making recommendations to the Board. The HSSC is also involved in the review of CRD processes, including
review of Scales’ Emissions Inventory, and Scales’ climate-related risks and opportunities. The HSSC meets at
least quarterly to discuss sustainability initiatives and will annually review performance against Scales’ climate-
related targets once these are set.
• The Audit and Risk Management Committee (ARMC) has been delegated the responsibility to provide oversight of
the annual CRD process and recommend Scales’ CRD for Board approval. The ARMC is responsible for managing
and monitoring climate and non-climate risks, and ensuring they are integrated into Scales’ ERM framework. The
ARMC monitors risks and progress against any key actions at least quarterly. The ARMC formally reviews the risk
register which includes climate-related risks periodically.
The Board delegates responsibility for implementing Scales’ strategy (which includes climate responses),
preparing the annual CRD report and managing Group risks to Scales’ Management. Management
personnel with key responsibility for climate-related activities are the Chief Operations Officer and the
Group Sustainability Manager. Management is given appropriate guidelines and held accountable through:
• Risk Management Policy;
• Emissions Inventory Policy;
• Sustainability Policy.
In 2023, the Board was periodically briefed by the Group Sustainability Manager and Chief Operations
Officer in relation to CRD matters. In 2023 the Board reviewed content relevant to this disclosure, and has
received advice from external advisers on Scales’ risks and opportunities and on the CRD framework.
outlines the flow of information and the governance roles for climate-related activities.
The strategic framework in demonstrates how climate risks and opportunities are identified and
how Scales intends to embed these into Scales’ strategy.
2.2 Board skills and competence
The Board maintains a director skills matrix, which includes a specific category for sustainability expertise.
Scales’ 2023 Corporate Governance Statement contained within our annual report shows the director skills
matrix and the attendance at Committee meetings. This skills matrix is reviewed annually.
The Directors have been upskilling themselves on climate-related issues, including the new Aotearoa New
Zealand Climate Standards. This includes attending the INFINZ Climate-Related Disclosures course, and
director upskilling presentations. Management has also attended these courses and represented Scales
on the leadership group for the Aotearoa Agri-Adaptation Roadmap which established agri-sector wide
climate-related scenarios for New Zealand (see Strategy section below). The Board uses external advice
and expertise for climate-related issues when required.
2. Governance

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2.3 Monitoring targets
To date the Board (via the HSSC) has received reporting on GHG emissions targets relevant to the Mr Apple
business unit. Once broader Scales emissions targets are in place, the Board (via the HSSC) will also monitor
progress towards these targets.
The HSSC is responsible for reviewing metrics and targets, and will recommend whether these are appropriate
based on industry best practice, relevance to Scales’ business unit operations, Scales’ capital allocation, and
alignment to our stakeholder goals. This will be included in the strategic refresh process as outlined in .
Remuneration for senior management across the Group is linked to the individual’s contribution to the
business including continuous improvement towards sustainability initiatives, which include climate-related
initiatives. There are currently thirty-eight participants in Scales’ Short-term Incentive (STI) scheme, with a STI
salary component representing between 10 - 45% of an individual’s gross salary.
2.4 Management’s role in assessing and managing climate-related risks
and opportunities
The Board assigns key climate-related responsibilities to management including:
• Preparing strategy (including sustainability and climate-related elements);
• Conducting scenario analysis and identifying priority climate-related risks and opportunities;
• Preparing the annual CRD report;
• Managing the ERM process;
• Implementing strategy and risk management practices.
Scales’ management responsible for these activities includes the Chief Operations Officer and Group
Sustainability Manager. Management also leads the annual climate risk assessment (see Risk section below for
assessment framework and process), which is conducted across divisional working groups, including Board
representatives, business executives, business Subject Matter Experts (SME) and external climate technical
experts. The purpose of analysing at a divisional level (rather than at a business unit or group level) is to view
the specific drivers of each sector/division in more detail, while also considering the impact on the Scales
Group. The outcomes of the climate assessment will be fed into the regular risk management process for our
business units and the Group ERM process. The duties of management and the Board are outlined in .
For 2023, management used external climate technical experts, Urban Intelligence to co-facilitate the
risk assessment workshops .
Management is responsible for preparing Scales’ strategy and embedding the output of the climate
assessments into the ERM process.
Scales’ management is also responsible for working with Scales’ business units to integrate significant
climate-related risks and opportunities identified by the divisional working groups into their business
unit strategies and risk management processes. Scales’ management is represented on the joint
venture boards and has active oversight of these tasks.
2. Governance

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1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix08 Contents
Org Chart and Information FlowRegularlyAnnuallyOther
• Monitor strategic initiatives
• Monitor strategy performance
• Assess skills of sub-committees
• Approve Scales’ Strategy
(Refresh in 2025)
• Approve associated metrics
and targets (set in 2025)
• Monitor sustainability strategic initiatives
• Monitor performance against sustainability targets
• Review CRD processes – including climate assessments and
Emissions Inventory
• Review climate-related risks and opportunities
• Review materiality assessment
(periodically)
• Review sustainability strategy
and associated targets –
recommendations to board
(2025)
• Monitor risk status (via Internal Audit reports)
• Review enterprise risk register
• Ensure integration of climate risks
• Review CRD compliance and recommending CRD approval
• Update risk status (via Internal Audit reports if
required)
• Report on sustainability initiatives
• Report on performance against strategic targets (including sustainability)
• Prepare CRD– include climate analysis, Emissions Inventory and assurance
• Integrate climate risks into enterprise risk register
• Implement strategy
• Prepare Scales’ Strategy
including associated metrics
and targets (Refresh in 2025)
• Undertake climate analysis – risk and opportunity identification and evaluation
• Monitor strategic initiatives
• Monitor risk status
• Monitor strategy performance
• Review risk registers
• Approve Business Strategy
(periodically)
• Approve associated metrics
and targets (periodically - if they
are being set)
• Update risk status
• Report on strategic initiatives
• Collect and report relevant CRD data
• Report on performance against strategic targets (if they have been set)
Scales Board
Scales
Management
JV Boards
JV Management
Audit and Risk
Management
Committee
Divisional Working
Group
Health & Safety
and Sustainability
Committee
Sustainability Strategy
Sustainability Initiatives
Climate Analysis
Prepare Group
Strategy
Business
Strategy
Business Strategy
Group
Strategy
Recommend
CRD Approval
Recommend
Sustainability Strategy
Approve Group Strategy
Delegate Implementation
Climate Analysis
Enterprise Risks
CRD Draft
Climate Analysis
2. Governance
Figure 1: Scales’ climate governance framework – key roles, responsibilities and information flows

3. Strategy
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix Contents09
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As an investor in agribusiness, Scales considers climate risk within its risk management process, and
has been assessing mitigations and confirming and implementing controls for priority business units (e.g.
geographic spread of orchards). Scales intends to expand this process by embedding the outcomes of our
climate assessments into our strategic planning framework. We intend to complete our strategic refresh
before setting emissions reduction targets in 2025 and we will release our updated metrics and targets
once we have established our assured base year. This is outlined in Figure 2.
Figure 2: Strategic process:


Scales will initially refresh its climate assessment process each year, which will include a review of our
climate scenarios to ensure up to date data is being considered. Climate assessments will be undertaken
more frequently than our strategic planning cycle, which allows for changes in our short-term risks to be
escalated through our ERM process, while transition initiatives within our strategic plan can be prioritised/
deprioritised appropriately.
There are several key actions we intend to initiate in 2024. These are dependencies required for us to
establish group-wide metrics and targets (noting we have disclosed Mr Apples’ targets which will be
updated in 2024), including:
• Financial impact analysis to support our risk assessment process (note that Scales has used adoption
provision NZCS2 (12) for this 2023 disclosure);
• Implementation of additional water metering;
• Investigation of Scope 3 emissions estimation methods, where there are exclusions due to lack of data;
• Arranging external assurance of our GHG Emissions Inventory for our target base year 2024.
Once Scales’ strategy has been refreshed in 2025 we intend to set and then measure performance against
our GHG emissions reduction targets annually.
3.1 Current business model and strategy
Scales’ business model aligns to four key investment pillars:
• Develop strong people and partnerships;
• Deliver sustainable growth;
• Demonstrate operational excellence;
• Offer customer focused innovation.
Our current divisions are:
• Global Proteins;
• Horticulture;
• Logistics.
Details of the business units within our divisions are set out in the Appendix.
As shown in , climate risk and opportunities could influence our strategy in two ways:
a) Scales’ strategy, deciding where and how we invest. Embedding climate factors into our strategic process
in the future may influence our view of the sustainable growth of a sector or division, and therefore impact
our portfolio allocation and capital deployment for initiatives. For example, under our sustainable growth
investment pillar, climate factors may influence our view on long-term trends and the businesses/sectors that
align to these, which may change our capital allocation between divisions.
b) Business unit strategy, including business models and the products/markets/channels they choose to serve.
A business may change its product or market focus due to a specific climate risk/opportunity or change its
operating model and the resources it employs. Business strategies are reviewed against Scales’ strategy, which
may accelerate, limit or reduce funding required for actions.
The intention of our strategic refresh is for Scales to integrate climate-related factors into Group strategies and
for each of our business units to build resilience across our portfolio through a bottom-up and top-down approach.
Materiality
Assessment 2021
Climate
Assessment 2023
2024
Actions
Refresh Group
Strategy
Set Group Targets
and Metrics 2025
3. Strategy
Complete
Future undertakings

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1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix11 Contents
Figure 3: Scales’ strategy and business model
Scales’ current strategy is presented below. Also shown is the framework we intend to implement for our strategic refresh in 2025, which summarises how we will embed our climate assessment into our broader strategy.
HorticultureLogisticsGlobal Proteins
Mission
To be the foremost investor in, and grower of global agribusinesses by leveraging our unique
insights, experience, and access to collaborative synergies.
Goal
12.5% ROCE
People and Partnerships
–People first approach
–Strong partnerships across
the value chain
–Leverage our internal
capability and skills
Sustainable Growth
–Sectors/businesses that align to
long-term trends
–Business that are protecting and
preserving their resources
–Diversification of customers/
markets/products
Operational Excellence
–Ability to add value through innovation
and efficiency
–Consistent quality and service
delivery through knowledge, location
and technology
Customer Focused Innovation
–Product leadership - development of
new products
–Customer intimacy - integrated
business planning and customisation
to their specific needs
Product
–Investment in new plant varieties
–Redevelopment to position variety
mix towards growth markets
–Investment in new petfood
ingredient products
–Develop broader species mix in
petfood ingredients
Market/Channel
–Enter new markets for our petfood
ingredients
–Continue to develop Mr Apple’s brand/
sales channels across its Asia markets
–Develop integrated channels and business
plans with our petfood customers
Infrastructure/Systems
–Continual assessment of orchard/post
harvest location and infrastructure
–Investment in new ERP systems across
Global Proteins
–Investment in new processing
technology/automation (all divisions)
Resources
–Decarbonisation roadmaps (all divisions)
–Improve water efficiencies (all divisions)
–Improve orchard practices to reduce
inputs (Mr Apple)
–Develop a clear group wide people
strategy (all divisions)
Current Strategy
Framework for Strategy Refresh 2025
Climate Assessment
Climate Assessment
Investment Pillars
Portfolio & Capital Allocation
Competitive Strategy
3. Strategy

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3.1.1 Approach to scenario analysis
The purpose of scenario analysis is to identify, from a set of plausible climate futures, a range of possible
climate-related risks and opportunities which can then feed into our strategic planning process. This then allows
us to test whether our corporate and business strategies are resilient to a much broader set of drivers and risks.
Scales’ executives and key management, including the Chief Operations Officer and Group Sustainability
Manager, were involved in the selection process of our three climate scenarios, which were selected from the
Agri-Adaptation Roadmap. In 2023, the New Zealand agricultural sector collaborated to produce an Agri-
Adaptation Roadmap to guide the sector’s adaptation to climate change. This roadmap utilised three climate-
related scenarios to describe plausible futures for agriculture in New Zealand when impacted by different
physical and transition factors.
We have used the Agri-Adaptation Roadmap to provide consistency and comparability in disclosures,
adopting the most widely accepted set of scenarios for the agriculture sector supported by robust and tested
assumptions. Under each scenario we used the same key metrics for both physical and transitional changes as
the Agri-Adaptation Roadmap. We also aligned our timeframes (short 2023-2025, medium 2025-2035 and long
2035-2050) and processes, including assessing scenario impacts out to 2050. This is consistent with the useful
life of our fixed assets and covers multiple business cycles.
Following the selection of the scenarios, we supplemented the research in the Agri-Adaptation Roadmap
scenarios with additional modelling, conducted by Urban Intelligence, on the potential physical changes across
our assets and geographies. Given Scales’ global reach, a collection of global climate data sources was used, and
the modelling was conducted using Urban Intelligence’s geographic information systems (GIS) platform, as the
Agri-Adaptation physical data was focused on New Zealand. International climate data for Australia, Europe, and
USA was derived from multi-model ensembles of CMIP5* data, providing the average change projected in each
area of interest. The data available and spatial resolutions varied across the geographies.
New Zealand sites were able to be evaluated for their exposure to mapped natural hazards using the Urban
Intelligence Resilience Explorer
TM
.
* The Coupled Model Intercomparison Project Phase 5 (CMIP5) provides community-based infrastructure in support of climate
model diagnosis, validation, intercomparison, documentation and data access.
The climate scenarios adopted are summarised as follows:
1. Orderly: an orderly transition to a low-carbon future will be achieved. Major climate change and subsequent
physical impacts have been avoided. This scenario effectively considers RCP** of 2.6 and SSP1, where there
were ‘low challenges to mitigation and adaptation’. Warming is limited to a 1.5°C temperature increase.
2. Disorderly: the world will successfully prevent major climate change and its associated impacts but will fail
to do so in an orderly or stable fashion. Transition to a low-carbon future was highly disruptive on society and
local economies. As the worst climate physical changes were avoided, this scenario considers RCP 4.5, with
an increase in 1-2°C in global temperatures. It uses SSP2, which considers ‘medium challenges to mitigation
and adaptation’, with rapid change after 2030.
3. Hothouse: a ‘business as usual’ world on track to increase global warming by 3°C or greater by 2100. Very
limited attempts were made to transition to a low carbon economy and climate policies were not implemented
since the 2020s. The physical impacts of climate change are severe, with some irreversible changes. The
world now must focus on adapting to climate change. This scenario considers RCP of 8.5 and follows SSP5,
which has ‘high challenges to mitigation and low challenges to adaptation’.
Further information on the pathway assumptions for the various scenarios are listed in , which sets out
the key background assumptions based on the Agri-Adaptation Roadmap, Network for Greening the Financial
System (NGFS), International Energy Agency (IEA) and Climate Change Commission (CCC) inputs.
** Representative Concentration Pathways (RCPs) describe emissions of greenhouse gases into the future and associated climate
impacts. Shared Socioeconomic Pathways (SSPs) were developed to examine how global society, demographics and economics
might change over the next century, and influence the various emissions scenarios.
3. Strategy

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Table 1: Pathway assumptions
AssumptionOrderly (Net Zero 2050)Disorderly (Delayed Transition)Hothouse (Current Policies)
EnergyEnergy supply is mostly decarbonised. 89% of total energy is from
renewable sources.
Since 2030, there has been a rapid shift to low emissions energy, but
there is still a way to go. 76% of total energy is renewable.
Energy remains reliant on high emitting fuels. Renewable sources
provide 46% of total energy consumed.
Transport Since 2032, all new light vehicles entering New Zealand have been
electric and integrated transport systems are common in urban areas.
After a delay, all new light vehicles have been electric since 2040,
but private car ownership has declined. Buses and trains are
decarbonising quickly.
There are still Internal Combustion Engine (ICE) vehicles entering
the country in 2050.
BuildingsBuilding standards have been implemented that mandate the use of
sustainable materials and construction methods.
Sustainable building standards were introduced in the 2030s.The costs
of retrofitting existing buildings remains high, so only buildings new since
2035 are fitted out with low emissions in mind.
Building standards prioritise resilience to physical impacts rather
than sustainability. Coal and gas boilers remain common and
construction waste is high.
Land useLarge areas of land have been protected to reverse ecosystem decline.There is no national strategy for land use.Land use continues to go to those who can derive the greatest
profits from it. Urban sprawl ensues and livestock agriculture
remains widespread.
Afforestation and carbon
sequestration
There is widespread use of carbon capture and storage (CCS) globally,
though only a few cases in New Zealand.
Focus on emissions reductions leads to large areas of pine
monocultures. Rushed and costly global push for more CCS technology,
though not really seen in New Zealand.
Little use of CCS globally. Pine trees continue to be planted for timber,
but native forestry is not incentivised.
TechnologyFast changes in technology. Slow and fast changes in technology.Slow changes in technology.
Carbon dioxide removalMedium to high use.Low to medium use.Low use.
Policy Immediate and smooth with medium variation in regional policy.Delayed policy, with higher variation in regional policy.Current policies, with low variation in regional policy.
3.2 Climate risks and opportunities
We set out Scales’ material climate-related risks and opportunities below. These have been identified in accordance with the guidance set out in the External Reporting Board’s (XRB) Climate-Related Disclosures Standard New Zealand
CS-3. Information throughout this document is deemed material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that primary users make based on an entity’s CRD.
The application of materiality in relation to the climate risks/opportunities presented below has been based on Scales’ risk assessment process, which is both a qualitative and quantitative assessment of the impact based on a risk matrix
(see section). The material risks and opportunities identified will flow through to our capital deployment processes via the Strategic framework presented in , and have also been included in our ERM framework
(see risk evaluation in section 4.4). We have not yet included consideration of anticipated financial impacts and have utilised the adoption provisions in NZCS2 (12) as we have not yet completed the financial modelling for this work.
3. Strategy

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Table 2: Climate-related risks, current and anticipated impacts, and controls
RiskCurrent and Anticipated Impact DescriptionControls/MitigationsSector/GeographyType/Time Horizon
Financial stakeholders place
more focus on the assessment
of climate-related risks to
Scales’ Group.
Current impact: There was no impact on our ability to recover losses from
damaged plant, equipment and buildings in 2023. However, we could not assess
our ability to recover losses from the impact on our apple crop and trees as
there was no insurance in place during Cyclone Gabrielle for those assets.
Current financial impact: There was no financial impact on our insurable losses
due to extreme weather events, as we recovered losses from damaged plant,
equipment and buildings and no insurance was in place for our apple crop and
trees during Cyclone Gabrielle.
Anticipated impact: We have initiated the process of renegotiating our
insurance policies. We may experience greater difficulty accessing insurance
and increases in the cost of insurance premiums. May also result in increases in
the cost of capital.
• Regional geographic diversification of our orchards, spread over
the Heretaunga Plains and Central Hawke’s Bay.
• Mr Apple intends to continually assess its locations and
orchard infrastructure (windmills, irrigation, hail netting and re-
development of structures/drainage) against hazard risk.
• We will be working with our insurance brokers to better
understand the cost, insurability of our crop and the impact
climate change may have on this.
Sector: Horticulture
Geography: New Zealand
Type: Transition
Time Horizon: Short-term
Customers more focused on
sustainability.
Current impacts: Nil
Current financial impact: Nil
Anticipated impact: Customers, particularly in Global Proteins, have
indicated sustainability will start to factor into their procurement process
in the near future. Contracts may be lost if we do not keep pace with
competitors. May also increase demand for low emissions products as
customers focus on end-to-end footprint.
• Continued development of our decarbonisation roadmaps for each
division, with the intention to demonstrate meaningful progress in emissions
reduction initiatives and water efficiencies that align with our customers’
ambitions. We intend to review these as at a Group level to set appropriate
targets in 2025.
• Explore lower emissions products (Global Proteins).
• Aim to develop better systems to assist in supply chain transparency and
data collection (all divisions).
Sector: All
Geography: Europe,
Australia, New Zealand
and United States
Type: Transition
Time Horizon: Short-term
Increase in frequency and
intensity of extreme climate
events, specifically storms,
extreme wind, and extreme
rainfall events.
Current impacts: The impact of Cyclone Gabrielle resulted in the loss of crop of
24% for 2023 (compared to 2022). Only 5% of Mr Apple-operated (leased and
owned) orchards were permanently damaged. Permanently damaged orchards
have been left to allow the soil to recover before an assessment will be made on
future land use.
Current financial impact: This event was the main contributor to the 23%
decrease in Underlying EBITDA for Mr Apple between 2022 and 2023. This was
mostly due to the loss in volume from crop damage. The other impacts (asset
write-off and additional remediation costs) were largely offset by insurance
and grant proceeds with the net amount disclosed in our Reconciliation of
Underlying to Reported Profit Measures in our financial statements.
Anticipated impacts: Potentially leads to volatility in supply in horticulture.
Data is limited in other geographies.
• Regional geographic diversification of our orchards, spread over the
Heretaunga Plains and Central Hawke’s Bay.
• Mr Apple intends to continually assess its locations and orchard
infrastructure (windmills, irrigation, hail netting and re-development of
structures/drainage) against hazard risk.
Sector: Horticulture/
Logistics
Geography: New Zealand
(data limited for other
regions)
Type: Physical
Time Horizon: Short-term
3. Strategy

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix15 Contents
RiskCurrent and Anticipated Impact DescriptionControls/MitigationsSector/GeographyType/Time Horizon
Increased regional
temperatures. More 'hot' days/
year (>25°C), less summer
rainfall, increased drought risk.
Current impacts: Nil
Current financial impact: Nil
Anticipated impacts: Increased soil moisture deficits, leading to volatility
in supply. Water security is impacted by rainfall and drought changes – see
cascading risk below.
• Global Proteins is aiming to have diversified sources of raw material
supply, reducing the concentration risk of a single geography/region being
impacted by extreme weather or climate events.
Sector: All
Geography: New
Zealand, United States,
Europe and Australia
Type: Physical and
transition
Time Horizon: Mid/Long-
term
Water regulation increases
in response to water scarcity
due to increased regional
temperatures.
Current impacts: Nil
Current financial impact: Nil
Anticipated impacts: This risk and the risk of increased regional temperatures
are interrelated. As water demand increases, it may put pressure on existing
resources and trigger more regulation – resulting in risks to water take, or an
increase in capital/compliance costs. Could also result in land use change and/
or a decrease in productivity of supply.
• Scales intends to improve its water reporting, to allow us to identify
areas of efficiency both on orchard and in our processing /storage sites
across all divisions.
Sector: All
Geography: New
Zealand, United States,
Europe and Australia
Type: Physical and
transition
Time Horizon: Mid/Long-
term
Carbon emission regulation
increases as we accelerate
towards our targets.
Current impacts: Nil
Current financial impact: Nil
Anticipated impacts: Fuel, refrigerant, packaging and fertilisers may all be taxed
or regulated in the future. This may increase the cost of compliance including
capex requirements. Market access becomes more difficult through carbon
border adjustment mechanisms. This may also force land use change.
• Scales intends to continue developing decarbonisation roadmaps for each
sector. We intend to review these as at a Group level to set appropriate
targets in 2025.
• We are supporting and contributing to industry projects and have invested
in our own trial to investigate new orchard practices to improve soil
characteristics, which may lead to a future reduction in synthentic inputs.
Sector: All
Geography: All
Type: Transition
Time Horizon: Mid/Long-
term
Increase in winter
temperatures could increase
pest and disease incursions.
Current impacts: Nil
Current financial impact: Nil
Anticipated impacts: Greater risk of a biosecurity breach, resulting in
tightening of biosecurity regulations, potentially impacting market access
• We are supporting and contributing to industry projects and have invested
in our own trial to investigate new orchard practices to improve the soil
characteristics, which may lead to a future reduction in synthentic inputs.
• Additionally, we are investigating new equipment in our post-harvest
operations to provide further control for pest interception.
Sector: Horticulture
Geography: New Zealand
Type: Physical
Time Horizon: Mid/Long-
term
Table 2: Climate-related risks, current and anticipated impacts and controlsCONTINUED
3. Strategy

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1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix16 Contents
Table 3: Climate-related opportunities, current and anticipated impacts, and controls
Opportunity Current and Anticipated Impact DescriptionControlsSector/GeographyType/Time Horizon
Customers more focused on
sustainability
Current impact: Nil
Current financial impact: Nil
Anticipated impacts: We expect that we will be able to capitalise on a change in
our customer needs/preferences faster than our competitors, which will help us
develop stronger relationships, increasing demand.
• Continued development of our decarbonisation roadmaps for each
division, with the intention to demonstrate meaningful progress in emissions
reduction initiatives and water efficiencies that align with our customers
ambitions (all divisions).
• Global Proteins is aiming to have diversified sources of raw material supply,
reducing the concentration risk of a single geography being impacted by
extreme weather.
• Explore lower emissions products (Global Proteins)
• Develop better systems to assist in supply chain transparency and data
collection (all divisions).
• We are supporting and contributing to industry projects and have invested
in our own trial to investigate new orchard practices to improve soil
characteristics, which may lead to a future reduction in synthentic inputs.
Sector: All
Geography: All
Type: Transition
Time Horizon: Short-
term
3. Strategy

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix17 Contents
3.3 Transition plans
The transition initiatives presented below are the actions we are currently taking to mitigate key climate risks, but they have not been prepared as a standalone transition plan. Some of these initiatives, and their prioritisation
may change once we have completed our strategic refresh in 2025. In the interim, all projects have been allocated capital and/or resources to progress between now and 2025.
Figure 4: Driver mapping and transition initiatives
3. Strategy
DriversRisks/OpportunitiesTransition InitiativesProgress to Date
• Global Proteins is developing its customer base, including focusing on
local customers across all markets. We have recently secured additional
supply of salmon and have expanded into the European market.
• Global Proteins is also currently investigating low emissions and plant-
based products although trials are still in early stages.
• Global Proteins has commissioned its Australian plant, giving greater
control and diversification of supply in this market. Additionally, we
have commissioned our first European plant in Belgium.
• Mr Apple is investigating extending the use of technology
that will further reduce probability of pest interception.
• Mr Apple is completing feasibility analysis on hail netting for selected
orchards. New technology has now made this option viable for some
premium varieties. Over the last six years we have moved to stronger
orchard structures with more wires vs traditional structures.
• All processing businesses will have completed these prior to setting targets.
These will feed into strategic plans, allowing us to set targets in 2025.
• Meateor New Zealand has upgraded the refrigeration in its Hastings plant
and Shelby has upgraded its boiler in its Amarillo plant.
• First Group-wide water footprint was completed in 2022. This
identified areas of improvement in our metering and data, which we are
working on in 2024. Businesses have made good progress with a new
post-harvest water reticulation system in Mr Apple.
• We are investigating new software systems across Global Proteins business
units, with approval for Meateor New Zealand to implement in 2024.
• Mr Apple has re-started its regenerative trial after it was damaged in the Cyclone.
Additionally, we are supporting industry led initiatives (NZAPI Smart and Sustainable
programme), through funding and in-kind support to reduce spray requirements.
Risk and Opportunity
Risk
Economic
Social
Political
Legal/Regulatory
Environment
Increase in frequency and intensity of extreme
climate events
More hot days per year, reduced summer rainfall
Increase in winter temperatures - increased pest
and disease risk
Water regulation continues to increase
Carbon emissions regulations increases as we
accelerate towards our targets
Financial stakeholders place more focus on
climate assessment
Customers more focused on sustainability
Diversification of products/markets/customers
Diversification of supply - regionally and globally
Investment in new processing technology/automation
Assessment of orchard location and infrastructure
Decarbonisation roadmaps
Improve water efficiencies
Investment in new cloud-based software systems
Improve orchard practices to reduce inputs

1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix Contents18
Scales Corporation Limited, Climate-Related Disclosures Report 2023.
4. Risk Management

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix19 Contents
Scales’ ERM risk framework identifies, analyses, and establishes controls to manage key risks. These are controlled
and managed through a risk register, using the ISO 31000:2018 standard as guidance.
Scales conducted a risk identification, analysis and evaluation process for climate-related risk in 2023, as detailed
in sections 4.2 – below. Although this is a stand-alone assessment, the process noted in 4 .1 through to
replicates those used to identify non climate-related risks. This provides consistency in methodology and allows
climate-related risks to be integrated into the same register to provide an appropriate comparison for prioritisation
against the factors listed in .
The ISO standard follows the framework below:
4.1 Context and scope
Effective risk management requires a thorough understanding of the context in which Scales and its
business units operate. Prior to identifying risks, we consider:
• Strategy for the Group and each division;
• Business model for each division;
• The environment in which each division operates, including future drivers of change (financial,
operational, competitive, environmental, political, social, legal and technological, etc);
• Relevant stakeholders, including customers, suppliers, employees, shareholders and communities
across the value chain.
4.2 Climate risk identification
The objective of this step is to generate a comprehensive list of risks based on identified future drivers.
In 2023 we expanded on the Agri-Adaptation Roadmap future drivers (applying our own strategy and
operating environments – see above), which covered the entire value chain. We then formulated an
initial risk/opportunity assessment and presented this to the three divisional working groups.
Scales considers climate risk across three time horizons:
• Short-term: present to 2025;
• Medium: 2025 – 2035;
• Long-term: 2035 – 2050.
Short-term risks identified have an immediate or near-term impact on the organisation, including
operational disruptions, supply chain issue, or sudden market changes.
Mid and long-term risks identified are those that unfold over an extended period, such as physical and
transitional climate change risks, but also include technological shifts and demographic changes.
4. Risk Management
SCOPE, CONTEXT, CRITERIA
RISK TREATMENT
RECORDING & REPORTING
RISK ASSESSMENT
Risk Identification
Risk Analysis
Risk Evaluation
COMMUNICATION & CONSULTATION
MONITORING & REVIEW

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
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4.3 Climate risk analysis
The divisional working groups were asked to assess climate risks/opportunities across our three chosen
scenarios (see strategy section), representing different plausible pathways. The groups were asked to
refine or add any additional risks they felt were missing and then to rank each risk/opportunity, by scenario,
timeframe and type (physical or transitional).
While the climate risk assessment is standalone, the risks and opportunities identified will flow into our
strategic process outlined in : Strategic process
Our approach to analysing risk is a three-step process as follows:
• Step 1 – Analyse the ‘likelihood’ of an event occurring;
• Step 2 – Analyse the ‘consequences’ of an event if it occurs;
• Step 3 – Prioritise and rank the risk using the risk matrix (Table 4).
Consequences are determined by a qualitative and quantitative (where applicable) assessment of the
impact against defined thresholds for financial, people, environment and reputational impacts.
Analysing the likelihood of climate and strategic risks is different to our other short-term risks and is
determined by the likelihood of the event over the time horizon considered. The interdependency/cascading
nature of risks was discussed during the divisional working group assessments, and the impact assessment
was adjusted as necessary. For example, increases in the number of hot days will increase water demand,
putting pressure on the resource and increasing the likelihood of a transition risk around water regulation.
For clarity, we use the term ‘likelihood’ to refer to the probability or chance of the risk event occurring
over the time horizon. For short-term risks, this will usually be within 1-2 years, and for long-term risks over
an extended period as noted above. Long-term risks will generally require a more strategic perspective,
considering trends, systematic changes and the potential evolution of drivers over time.
Table 4: Risk matrix
Consequences
Likelihood
1.
Insignificant
2.
Minor
3.
Moderate
4.
Major
5.
Catastrophic
5Very Likely510152025
4Likely48121620
3Neutral3691215
2Unlikely246810
1Very Unlikely12345
Where:
>19: Extreme Risk
15-19: High Risk
8-14: Moderate risk
1-7: Low Risk
4. Risk Management

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix21 Contents
4.4 Risk evaluation
The purpose of risk evaluation is to identify which risks need treatment and the priority for treatment
implementation. Based on the risk methodology described above, we identify which risks are acceptable (and
therefore to be monitored only) and which are unacceptable (to be treated).
Climate and non-climate risks are prioritised under the same framework outlined above and are ranked based on
residual risk in the risk register. Risks are thereby integrated into Scales’ ERM process.
Where there are similar risk ratings across time horizons, the prioritisation will consider the following factors:
1. Time sensitivity – immediate or short-term impacts may require more urgent attention and response;
2. Strategic importance – if a risk is aligned to long-term goals it may warrant higher priority;
3. Reversibility – risks that may have lower consequences but have a lasting impact could influence prioritisation;
4. Mitigation and adaptation options;
5. Integrated risk management – may prioritise risks that have interplay between short and long-term horizons, and
that may have cascading effects;
6. Stakeholder impact – risks that have broader social or environmental implications may be given priority.
By taking these factors into account, Scales can make informed decisions on prioritising risks, ensuring that they
effectively manage both short-term and long-term risks together.
The climate risk assessment outlined above and in the Strategy section will be conducted annually as we develop
and improve our processes.
4.5 Risk treatment
Risk treatment options can include the following:
• Avoiding the risk (ceasing the activity giving rise to the risk or deciding not to start a course of action);
• Sharing or transferring the risk to another party or parties (e.g., insurance);
• Mitigating the risk (putting in place additional controls or actions to reduce the likelihood and/or consequences
of an event);
• Adapting to the risk – accepting the risk but adapting business practices (usually strategic) to reduce the impact.
While the mid and long-term risks will be included in the same register, the treatment options will be much more
strategic (changes to business/operating models or portfolio allocation).
4.6 Monitoring and review
The risk register is monitored regularly (via status reports) and reviewed periodically by the ARMC. The
HSSC supports the ARMC by providing specific expertise in relation to the review of climate-related risks.
Reviewing the risk register (including climate risks) includes:
• Assessment of risk treatment effectiveness;
• New risk identification and review risk register completeness;
• Risk management framework review.
4. Risk Management

1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix22 Contents
Scales Corporation Limited, Climate-Related Disclosures Report 2023.
5. Metrics & Targets

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix23 Contents
5.1 GHG emissions targets plan
Scales intends to set emissions reduction targets in 2025, once we have established our assured base year (5.2.2).
This will allow us to have a more representative base year for our emissions reduction targets as our investments
become fully operational and more emissions sources are included.
5.2 GHG emissions
Scales measures and reports our GHG emissions with guidance from the following standards:
• ISO 14064-1:2018 – Greenhouse gases Part 1;
• Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard;
• Greenhouse Gas Protocol – Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
The following guidance has also been used in the preparation of our GHG Emissions Inventory:
• Greenhouse Gas Protocol – Scope 2 Guidance;
• Greenhouse Gas Protocol – Scope 3 Calculation Guidance;
• Ministry for Environment – Measuring emissions: A guide for organisations.
Activities contributing to all relevant seven Kyoto gases were considered for the Scales’ GHG Emissions Inventory:
carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide (N
2
O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
sulphur hexafluoride (SF
6
) and nitrogen trifluoride (NF
3
).
Scales applies:
• The most relevant and up-to-date emission factors from various sources, including Ministry for the
Environment (MFE) for New Zealand, UK Government GHG Conversion Factors for Company Reporting (2023),
Australian National Greenhouse Account Factors and US Emissions Factors for Greenhouse Gas Inventories;
• Where possible, the latest values for Global Warming Potentials (GWP’s) of reported GHG, as defined by the
Intergovernmental Panel on Climate Change (IPCC);
When we completed our decarbonisation roadmaps for all operational businesses in 2022, we used an internal
emissions price of $85/tCO
2
for our internal abatement calculation. This was based on the New Zealand
Emissions Trading Scheme unit price at the time of publishing the decarbonisation roadmaps. This will be
updated before completing our strategic refresh and transition plan in 2025.
Scales intends to restate its base year where there has been a change in emissions factors, where we have bought
or sold a business or where there has been a change greater than 10% in our Emissions Inventory. Scales applies
the equity share consolidation approach to our Emissions Inventory. This consolidation approach aligns with the
nature of our portfolio and allows us to maintain consistency across entities where Scales holds partial ownership
in a joint venture, and/or may invest/divest in the future.
5. Metrics and Targets
Scales’ total GHG emissions in 2023 were 67,288 tCO
2
e, with measured Scope 3 emissions making up 88% of all
emissions. Table 5 shows Scales’ emissions by scope, emissions category and as a percentage of Group total emissions.
Table 5: 2023 GHG Emissions Inventory
Emissions Activity
2023 Total
Emissions (tCO
2
e)
% of Total Group
Emissions
Scope 15,4718%
Stationary combustion2,5034%
Mobile combustion2,8094%
Fugitive emissions159 0%
Scope 2 (location-based)2,9204%
Electricity2,9204%
Scope 3*58,89888%
C1: Purchased goods and services5,3808%
C3: Fuel and energy related activities633 1%
C4: Upstream transportation and distribution 3,0254%
C5: Waste generated in operations424 1%
C6: Business Travel1,6652%
C7: Employee commuting157 0%
C8: Upstream leased assets22 0%
C9: Downstream transportation and distribution47,59371%
Total6 7, 2 8 8100%
tCO
2
e per million dollars revenue**95
* Scope 3 emissions categories included are detailed in Table 6 on following page. Exclusions are detailed in Table 7 on following page.
** Scales’ intensity measure tCO
2
per million dollars revenue, is calculated using the equity share approach. This is different to the reported
revenue in the financial statements which uses consolidated accounting standards. The revenue figure used for this metric is based on
equity share, and also excludes financial revenue, and ‘other‘ reported income.

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix24 Contents
Scales has utilised the exemption provisions in NZCS2 (20) and (22). In 2023 Scales added additional emissions
sources from its recent investments, meaning our 2023 emissions reporting is not directly comparable to our 2022
Emissions Inventory. Our 2022 Emissions Inventory can be found in our 2022 Annual Report on our website.
5.2.1 Methodologies, assumptions, and uncertainties
For Scope 3 emissions, we have constructed estimates where we hold internal data that we can use to generate wider
conclusions. An example is our Scope 3 emissions for third party toll processing and cold storage. We are confident
that these activities are relatively similar to Scales owned sites, therefore we expect to generate similar (in relative
terms) or conservative estimates where we cannot get direct data from the third-party providers.
In instances where we are not able to use estimates due to the lack of data, and where we expect emissions to be
significant, we intend to work with our partners to obtain more precise data to create reliable GHG estimations.
5.2.2 Base year
Our GHG Emissions Inventory covers the calendar year, in this case 1
st
January – 31
st
December 2023.
Scales will use our 2024 emissions reporting as the base year for our group GHG emissions reduction targets, which
have not yet been set. 2024 will be the first reporting year for which we will arrange external independent assurance
of our GHG Emissions Inventory, allowing us to more confidently set GHG reduction targets based on that data.
5.2.3 Inclusions
outlines all emissions included in the Inventory, including the source, methodology and the level of
uncertainty. All businesses with relevant activity related to the emissions source are included. If data is not available
for a business this has been disclosed in . The selection of emissions factors is based on operating location.
Where location-specific information is unavailable, New Zealand-based emissions factors have been used.
5. Metrics and Targets

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix25 Contents
ScopeEmission CategoryActivityData SourceGwp SourceMethodology, Data Quality, Uncertainty (Qualitative)
Scope 1
Stationary combustionFossil fuels used by plant equipmentInvoicesMFE guidelines 2023Fuel based method. Low uncertainty
Mobile combustionFossil fuels used by fleet/pool vehicles and forkliftsFuel purchase transaction historyMFE guidelines 2023Fuel based method. Low uncertainty
Fugitive emissionsRefrigerant used by refrigeration equipmentMaintenance reports and invoicesMFE guidelines 2023Top up method. Applicable to Scales’ owned refrigeration equipment. Low uncertainty
Scope 2Purchased energyElectricity consumptionInvoices
Selection of electricity grid factors
by operating location
Location based method. High data quality and low uncertainty due to complete invoice sets
Scope 3
Business travel
Air travel
Travel itineraries, reimbursements,
credit card purchase history
MFE guidelines 2023, Consumption
emissions modelling report
Hybrid method. Distance based where data is available, otherwise dollars spent. Variable data
quality, medium uncertainty overall
Rental car/taxis
Travel itineraries, reimbursements,
credit card purchase history
MFE guidelines 2023, Consumption
emissions modelling report
Hybrid method. Distance/fuel based for rental cars where data is available, otherwise dollars spent.
Dollars spent for taxis. Variable data quality, medium uncertainty overall
Hotels and accommodation
Travel itineraries, reimbursements,
credit card purchase history
MFE guidelines 2023, Consumption
emissions modelling report
Nights stayed method. Country selected based on itineraries, and conservatively approximated
where unspecified. High uncertainty overall
Employee commutingEmployee commuting and working from homeInternal reports/ staff surveyMFE guidelines 2023
Distance based method to determine commuting, days working from home approximated. Data
quality is low due to difficulty in validating survey results. High uncertainty
Upstream
transportation and
distribution
Movement of product from suppliersLogistics shipping and freight reports UK GHG conversion factors 2023
Tonnes km (tkm) based method. Distances and weight determined between supplier and plant.
Only includes emissions from upstream freight we are responsible for. Variable data quality, medium
uncertainty
Downstream
transportation and
distribution
Movement of product to customersLogistics shipping and freight reports
MFE guidelines 2023, UK GHG
conversion factors 2023
tkm based method. Distances and weight determined between plant and customer. Only includes
emissions from downstream freight we are responsible for. Variable data quality, medium
uncertainty
Purchased goods and
services
Coldstores/toll processing provided by a third
party (toll processing relates specifically to Shelby)
Third-party supplier warehouse
volume reports/invoices
Selection of electricity grid factors
by operating location
Hybrid method. Used data from owned facilities to extrapolate out to third-party coldstorage and
toll processing sites. For coldstorage we used m3 to kWh conversion factor. High uncertainty
Fuel and energy related
activities
Transmission and distribution (T&D) losses
Selection of electricity T&D loss
factors by operating location
Electricity consumption approach. Methodology as per MFE guidelines. Grid-average transmission
losses-estimation based on national generator and consumption totals. High data quality, low level
of uncertainty.
Well-to-tank emissionsUK GHG conversion factors 2023
Fuel consumption approach, methodology based on UK GHG conversion factors. High data quality,
medium uncertainty.
Waste generated in
operations
WasteSupplier invoices and waste reportsMFE guidelines 2023
Hybrid method. Weight based where data is available, otherwise weight is estimated by bin volumes
and number of collections. Landfills use gas capture technology. Variable data quality, medium
uncertainty
Water supply and wastewaterCouncil invoices and meter dataMFE guidelines 2023
Hybrid method. Volume based where council data is available for processing sites. Per capita basis
for office spaces. Domestic wastewater treatment factors used as industrial factors are unavailable.
Variable data quality, medium uncertainty
Upstream leased assetsShort-term leased spaceProperty measurements and invoicesMFE guidelines 2023
Estimate based on energy intensity (square meter energy consumption) of existing sites for offices.
Used site footprints and m3 to kWh conversion factor for coldstore consumption. High uncertainty
Table 6: Inclusions, methodologies and uncertainties
5. Metrics and Targets

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix26 Contents
ScopeEmissions CategoryActivityApplicability**Reason for Exclusion
Scope 1
Mobile CombustionFossil fuels used by fleet/pool vehicles and forkliftsMFI, MAP, Scales Corporate, Fayman, EsroData unavailable, expected impact is immaterial
Fugitive emissions
Refrigerant used by refrigeration equipmentMAPPartial processing for reporting year, minimal coldstore usage therefore expected very low impact
Refrigerant used by office HVAC*/kitchen equipmentAll officesData unavailable, expected impact is immaterial
Scope 2Purchased energyElectricity consumptionMFIIncluded in MFLP inventory (shared office space)
Scope 3
Business travelAir travel, rental cars/taxis, hotels and accommodationMAPNo data available, immaterial
Employee commuting
Employee commutingMFI, MAP, Profruit, Scales Corporate, Fayman, ANZ, EsroDifficult to obtain/minimal/not reported
Working from homeMFI, MAP, Scales Corporate, Fayman, ANZ, EsroNo data available, immaterial
Downstream
transportation and
distribution
Movement of product to customersScales Logistics
Accounted for by other business units. Scales Logistics is also a service provider not a direct cargo
owner, so not applicable.
Waste generated in
operations
Water supply and wastewaterMFI, MAP, Scales Corporate, Scales Logistics, ANZ, EsroNo data. Expected to be immaterial for offices and Esro during the reporting year due to partial processing
WasteMFI, MAP, Scales Corporate. Scales Logistics, ANZ, Esro
No data. Expected to be immaterial for offices, and Esro during the reporting year due to partial processing.
Note: all rendering waste was excluded from Global Proteins businesses, this will be investigated as part our
Scope 3 assessment in 2024
Purchased goods and
services
IT services, maintenance, office equipmentAllDifficult to obtain/minimal/not reported
ColdstorageMAPNo data, immaterial for reporting year due to partial processing
Capital goods
Extraction, production and transportation of capital goods
purchased or acquired by companies in the reporting year
AllNo data available
Processing of sold
products
Processing of intermediate products sold in the reporting
year by downstream companies (e.g., manufacturers)
All production-based businessesNo data available
Use of sold products
End use of goods and services sold by companies in the
reporting year
All production-based businessesNo data available
End of life treatment of
sold products
Rendering wasteAll production-based businesses
Not currently included in footprint calculation as currently have no emission factor for this waste. Will be
included in Scope 3 assessment in 2024
* Heating, ventilation and air conditioning (HVAC).
** See appendix for company details.
5.2.4 Exclusions
The emissions sources in Table 7 have been identified and excluded from this GHG Emissions Inventory. These emissions sources are considered relevant to our operations, however, are either not material to stakeholders, not material in the
context of the inventory, and/or not technically feasible or cost effective to be quantified at present. We will be actively working on improving our data collection and assessing our estimation options for emissions in these categories.
Table 7: Exclusions
5. Metrics and Targets

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix27 Contents
5.3 Exposure to physical and transitional risks/opportunities
Our assessment to date of the exposure of Scales to climate-related risks is that there is variance across
geographies and business divisions.
5.3.1 Vulnerability to physical risks
Due to the vertically-integrated nature of our Horticulture division, this division is more exposed to both
chronic and acute climate events. Logistics is also exposed to this risk, due to its integrated value chain with
Horticulture.
Global Proteins, while less exposed, still may be impacted by changes in weather patterns and extreme weather
effects on raw material supply. However, the available climate data and spatial resolutions vary considerably
across the geographies in which we operate, with limited hazard data available beyond New Zealand.
As a conservative estimate, based on our internal assessment to date, all of Scales’ business activities are
exposed to some degree of physical climate risks.
5.3.2 Vulnerability to transition risks
The Horticulture division is currently most exposed to climate-related regulation for orchard/farming practices
(e.g water and fertiliser).
Global Proteins also has some exposure to climate-related regulation changes as it is reliant on upstream raw
material supply. However, it is also more aligned with consumer preference changes due to the sector/market/
customer mix.
As a conservative estimate, all of Scales’ business activities are exposed to climate-related transitional risks to
some degree.
5.3.3 Climate-related opportunities
As mentioned above, Global Proteins is more aligned to customer sustainability changes in its sector/market
and customer mix. This presents a risk, but also an opportunity if we align our strategy correctly. An example,
presented in , is being able to align our sustainability programme with our Global Proteins customers,
creating stronger relationships and increasing demand.
Due to this reason, we believe the Global Proteins division is the only business activity currently aligned to
significant climate-related opportunities.
5.3.4 Capital deployment 2023
Note this represents capital expenditure figures that have been adjusted for equity ownership.
Table 8: Capital deployment in relation to climate-related initiatives in 2023
DivisionDescriptionAmountTransition Initiative
GPInvestment in new joint ventures
(MAP and Esro)
$11.9 millionDiversification of supply, and decarbonisation
roadmap (new plants, more efficient equipment)
GP
Upgrading refrigeration plant
at Meateor New Zealand’s
Hastings site and an upgrade
of the boiler at Shelby’s
Amarillo site
$1.14 millionDecarbonisation roadmap
5.4 Industry based metrics
We have disclosed tCO
2
and tCO
2
/million dollars revenue, which are widely adopted metrics across all our related
industries. Other relevant industry-based metrics (if any) will be assessed when we set targets and metrics in 2025.
5. Metrics and Targets

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix28 Contents
6.1 Scales’ Targets
As explained above, Scales intends to set Group targets in 2025, once we have completed assurance over our
Emissions Inventory and set our GHG emissions baseline. We also intend to further develop our reporting and
measuring of key sustainability aspects affecting Scales’ businesses as represented in our annual report.
6.2 Mr Apple Targets
Mr Apple is the only business unit within Scales that currently has emissions targets in place (Table 9). These
were set in late 2018 with a target date of 2024. Once they have been reset (scheduled for 2025), they will feed
into the Group targets.
Mr Apple’s Emissions Target: Carbon intensity goal of 1 per cent reduction in GHG emissions for Scope 1, 2 and
mandatory Scope 3 emissions per million dollars gross turnover between 2018 – 2024. The emissions goal is
intensity based, and aligns with Toitū’s carbonreduce programme in 2018. However, it is not a verified science-
based target and therefore we cannot confirm it aligns with limiting global temperature rise to 1.5°C.
The base year for Mr Apple’s emissions reduction target and initiatives is 2018. These targets and initiatives do
not rely on any offsets.
6. Targets
Table 9: Mr Apple Targets 2018–2024
TargetProgress 2018–2023Initiatives to Date
Reduce Scope 1, 2 and measured
Scope 3 GHG emissions intensity
by 1% per million dollars revenue
between 2018–2024
6% reduction from 2018As per below
Reduce paper use by 10% per
annum between 2018–2024
18% average annual
decrease since 2018
Further conversion from paper to digital
processes/education and communication
across teams, moving to light weight paper
Reduce waste to landfill by 30%
between 2018–2024
44% reduction from
2018
Hand dryers instead of paper towels
implemented at Whakatu Packhouse,
implementation of liner-less labellers, a move
to compostable cups in the packhouse and
education and engagement with sites
Reduce electricity consumption by
3% between 2018–2024
12% reduction from 2018LED replacements across accommodation
facilities, using Demand Flex* where possible
Reduce fuel usage by 5% between
2018–2024
1% reduction from 2018Continued monitoring using eRoad**,
continued proactive maintenance, replacing
petrol orchard equipment with electric where
applicable, continued focus on replacing old
machinery with more efficient, new machinery,
reduced trucking movements
* Demand Flex is a programme from Simple Energy that enables users to be rewarded for ‘flexible’ electricity usage.
** eRoad provides driver-facing telematics that improves safety, streamlines business operations and improves profitability.

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Scales Corporation Limited, Climate-Related Disclosures Report 2023.
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Appendix

Scales Corporation Limited, Climate-Related Disclosures Report 2023.
1. Introduction 2. Governance 3. Strategy 4. Risk Management 5. Metrics & Targets Appendix30 Contents
Scales Group
Scales Group comprises the following divisions:
Global Proteins: processing and marketing of proteins such as pet food ingredients, edible meat and offal products. Meateor Foods Limited, Meateor Foods Australia Pty Limited, Meateor Group Limited, Meateor US LLC, Shelby JV LLC
Group (Shelby Cold Storage LLC, Shelby Exports Inc, Shelby Foods LLC, Shelby JV LLC, Shelby Properties LLC, Shelby Trucking LLC), Meateor GP Limited, Meateor Pet Foods Limited Partnership, Scales FI Group Holdings Pty Limited,
Meateor Australia Pty Limited, FI Group Holdings Pty Limited Group (FI Group Holdings Pty Limited, Fayman International Group Pty Limited and Fayman New Zealand Limited), ANZ Exports Pty Limited and Esro Petfood B.V.
Horticulture: orchards, fruit packing, juice concentrate processing and marketing. Mr Apple New Zealand Limited, New Zealand Apple Limited, Fern Ridge Produce Limited, Longview Group Holdings Limited and Profruit (2006) Limited.
Logistics: logistics services. Scales Logistics Limited and Scales Logistics Australia Pty Ltd.
Other: Scales Corporation Limited, Geo. H. Scales Limited, Scales Employees Limited, Scales Holdings Limited and Selacs Insurance Limited.
Operating entities
Appendix
DivisionEntityDescription
GroupScales Corporation LimitedDiversified agribusiness investor, listed on the New Zealand Stock Exchange
HorticultureMr Apple New Zealand Limited (Mr Apple)Mr Apple New Zealand Limited is a wholly owned subsidiary company of Scales Corporation Limited. New Zealand’s largest fully vertically integrated apple business, based in Hawke’s Bay
Profruit (2006) Limited (Profruit)50 per cent ownership of a manufacturer of high-quality apple, kiwifruit and pear juice concentrates, located in Hawke’s Bay
Fern Ridge Produce Limited (Fern Ridge)A wholly owned subsidiary of Mr Apple - a fresh produce exporter in Hawke’s Bay
Global ProteinsMeateor Pet Foods Limited Partnership (MFLP)50 per cent ownership of a New Zealand joint venture that procures, processes and sells petfood ingredients both domestically and internationally. Has processing plants in Hastings and Dunedin
Fayman International Group Pty Limited (FIG)50 per cent ownership of an Australian joint venture, edible protein exporter
ANZ Exports Pty Limited (ANZ)42.5 per cent ownership of an Australian joint venture, edible protein exporter and importer
Shelby JV LLC (Shelby)60 per cent ownership of a US joint venture that procures, processes and sells petfood ingredients domestically. Shelby has a processing plant in Amarillo Texas, with other toll processing sites
across the US
Meateor Food Limited (MFL) and Meateor
Australia Pty Limited (together, MFI)
100 per cent ownership of a global exporter of petfood ingredients from Australia and other markets
Meateor Australia Pty Limited (MAP)33.33 per cent ownership of a new Australian joint venture, that procures, processes and exports petfood ingredients with a processing facility in Melbourne
Esro Petfood B.V (Esro)50 per cent ownership of newly established European petfood joint venture (2023), that will procure, process, and sell petfood ingredients predominantly to the Europe market (some export
opportunities). Currently has one processing facility in Hoeselt, Belgium
Logistics Scales Logistics Limited (Scales Logistics)Scales Logistics is a wholly owned subsidiary company of Scales Corporation Limited
The services of Scales Logistics include:
Ocean freight services to exporters and importers of perishable products, with offices in Auckland, Christchurch, Tauranga, Hawke’s Bay and Melbourne
Air freight services, including chiller facilities in Christchurch and Auckland together with warehousing facilities in Christchurch

52 Cashel Street, Christchurch 8013, New Zealand
www.scalescorporation.co.New Zealand
Scales Corporation Limited