2021 Integrated Report - Ravensdown | Integrated Report 2021
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2021 Integrated Report
Smarter farming is the way that the agsector can thrive at a time of extraordinary change. We’ve been part of the rural landscape for decades, working with the farming community for generations. Now, we’re shoulder to shoulder with farmers and growers as they adjust to unprecedented challenges and opportunities. Our role in the food creation system of New Zealand has already changed. With our nutrient solutions and mitigation advice, we help our customer-owners to optimise production and reduce their environmental impact. Pictured: Dr Anna Carlton worked as a Ravensdown environmental consultant before becoming an agri manager based at our Amberley store. Her PhD covered the use of plantain in reducing nitrate leaching.
Thriving in a changing landscape
NEW ZEALAND’S FARM NUTRIENT AND ENVIRONMENTAL EXPERTS
Ravensdown exists to enable smarter farming for a better
New Zealand. Our products, expertise and technology help
farmers reduce environmental impacts and optimise value from
the land. Whether it’s food grown for livestock or for humans,
we are an integral part of the food creation process. We are
the only co-operative on the planet that tests for, advises about,
buys, manufactures, ships, stores, spreads, measures and maps
nutrients and fertiliser in a truly integrated way. About the report
This report is the co-operative’s third
integrated report and sets out its key
integrated strategies, governance,
performance, outlook, risks and
opportunities. The primary purpose is
to explain to all stakeholders how the
co-operative creates value in the short,
medium, and long term; and how it
eliminates, mitigates, and/or reduces
the erosion of value over time.
Ravensdown Integrated Report 2021
1
“Knowing what’s
impacting on
our customers’
world increases
the chances of
anticipating their
needs, not just
meeting them.”
Agri Manager
Eva Brakenrig working
with shareholder Sean Nixon
to minimise nitrate leaching
in the sensitive Taupō
catchment.
As a co-operative, we are here to supply
Supplemental
the right amount of farm nutrients to
information is
our customer-owners; not the most. available online and
We also provide solutions that help with the full set of audited
environmental mitigation and agronomic accounts is available
needs. When it comes to the growing in a separate annual
report on our
prosperity of New Zealand, stronger
Integrated Reporting
rural communities and a progressive, website:
environmentally considerate agsector, integratedreporting.
Ravensdown is part of the solution. ravensdown.co.nz
Thriving in a changing landscape
2 HIGHLIGHTS
Thanks to the support of many
stakeholders, Ravensdown
$ 53 33 31
PROFIT
M $
RETURNS
M $
INVESTED
M 7,317
TRAINING
continued to play its part
delivering an essential service.
$53m profit from $33m returned to $31m invested in 7,317 hours
continuing and shareholders. physical invested by the
discontinued operations infrastructure. customer-facing
and before tax, rebate teams on training
and bonus shares. to get ready to
help with farm
environment
planning.
See page 6 for more See page 6 for more See page 29 for more See page 38 for more
detailed information detailed information detailed information detailed information
Ravensdown Integrated Report 2021
3
4 ,370
TRACEABILITY
78
EQUITY
% $ 5.8 39 M
RESEARCH AND DEVELOPMENT LOYALTY
12,339
GREENHOUSE GAS EMISSIONS
4,370 active users of 78% equity ratio. $5.8m invested in Net Promoter Score. CY scope 1 – Carbon
HawkEye decision- R&D. Footprint tCO2-e.
making software.
See page 41 for more See page 6 for more See page 36 for more See page 25 for more See page 26 for more
detailed information detailed information detailed information detailed information detailed information
Thriving in a changing landscape
4 CHAIR AND CEO SUMMARY
JOHN HENDERSON AND GARRY DIACK
Our role in helping New Zealand earn vital export income through the efforts of
Aotearoa’s hard-working food creators has never been more visible. Our contribution in
helping shareholders reduce their environmental impact has never been so important.
A better New Zealand depends on smarter farming – more than it ever has.
The co-operative ended the year in a strong to pay a rebate of $30 in total: returning a total
financial position while minimising supply of $33 million to eligible farmer shareholders.
disruption, investing in infrastructure and retraining The team worked incredibly hard to secure the
its customer-facing team to gear up for the growing flow of essential nutrients so that they were available
demand for farm environmental planning. to farmers and growers in the right amount at the
A healthy balance sheet, strong shareholder right time. Our shipping joint venture and long-term
support, good cost control and a profit from relationships with reliable suppliers proved valuable as
continuing and discontinuing operations before tax, supply disruption impacted so many other industries.
rebate of $53 million meant we were in a position
Ravensdown Integrated Report 2021
5
Valued expertise
Our shareholders are expecting us to be their farm nutrient and of its own footprint, Ravensdown’s core emissions reduced by
environmental experts and, with ever-increasing regulatory 9% and is tracking well towards its target of a 30% reduction
pressure, the co-operative has been adjusting to the growing by 2030 (16% reduction against base year 2017/18).
demand for its services. We have been investing in our capability Soil tests at our independently accredited laboratory rose
to deliver quality farm environment plans (FEPs) at scale. The by 36% and ARL continues to explore automation as it is set
co-operative’s customer-facing team invested four times as much to break an annual record of 100,000 tests in 2021-22.
training time on helping farmers with their farm environment
Application was avoided on 42,000 hectares of hill country
plans despite only a 0.5% increase in training spend.
farmland identified as not requiring fertiliser, thanks to more
To allow more time to focus on our core specialism, we
precise world-leading aerial diagnostics and spreading.
exited the animal health business in March. Thanks to the help
of the team most impacted by that transition, the business was As an increasingly popular decision-support tool, HawkEye
wound down without serious disruption or cost. The synergies is a critical part of our integrated advice cycle. Its ability to help
between crop establishment, protection and nutrient with nutrient decision making and compliance reporting has led
management remain strong and we expect to see growth in the to 11% more customers using the software. In addition to all those
agronomy services with products such as agchem and seeds. spreading companies with XC-10 control units installed, 1,110
customers can now send HawkEye orders to and receive proof-
The growing efficiency with which farmers are putting
of-placement maps from their TracMap-enabled spreaders.
nutrients to use is a win-win both for food production and the
environment. As a co-operative, Ravensdown is here to listen Commitment to people
and advise, not to tell farmers what to do or supply them with
Investing in asbestos replacement and updating our physical
more products than they need.
infrastructure is of benefit to our staff and neighbours and
Commitment to the environment safety remains a key focus. Investments in Christchurch’s
Nearly $6 million was invested in environmental R&D with a stormwater management and new intake system were well
research focus on better testing for soil nitrogen to avoid any managed and are already delivering stakeholder value.
over-application, coated nitrogen products that reduce losses The transition to a new CEO has gone extremely well and
to air or water and a HawkEye “heat map” that assures the decision for the Chair to remain available for support and
compliance with the new national N limit of 190kg/ha. N-Protect continuity is proving worthwhile. The support from all
(coated urea), which saw another record year, ultimately helps employees, the leadership team, our customers and other
cut farmers’ greenhouse gas emissions from fertiliser. In terms stakeholders is greatly appreciated.
Thriving in a changing landscape
6 FINANCIAL SUMMARY
The cautious optimism with which we viewed 2020-21 was justified as the year proved PROFIT FROM CONTINUING OPERATIONS
BEFORE REBATE, BONUS SHARES & TAX ($M)
volatile from a commodity price and product supply perspective. The precautionary cost
controls, carefully managed capex and a focus on the core business combined with strong 80
customer demand to deliver a strong result. 60
63
69
51 52 52
40
The total profit from our continuing and shareholders. Inventory was in line with last year
discontinuing activities was $53 million. To assist and accounts receivables were down; a reflection 20
our stakeholders to focus and understand our of good payments from our customers.
0
future, the remainder of this report compares our Investment in physical infrastructure 2017 2018 2019 2020 2021
continuing operations as is our normal practice. increased to $31 million and asbestos replacement, (from continuing operations)
We delivered a profit from continuing which is so important to employees and neighbours, Strong profit before rebates to shareholders in a year with
operations before tax and rebate of $52 million continued with $1.4 million spent during the year. volatile global commodity prices.
(2020: $69 million). In addition to an interim early Completed stormwater and intake projects in
cash rebate of $15 per tonne paid in June, a further Christchurch increased environmental performance
rebate of $15 per tonne of fertiliser purchased in and efficiency.
2020-21 was declared. This amounted to $33 million Salary and wage costs were contained due OPERATING CASHFLOW ($M)
being returned to shareholders by the co-operative to a hold on pay increases and new headcount.
with $16 million retained for improving physical The delivery of value and resisting margin erosion 150
assets and service-enhancing technology. will be a focus in order to preserve long-term 143
120
The reduction in profit was due to the volatility viability and ongoing investment in services,
in global commodity prices meaning increases research and technologies. 90 98
were not passed on as quickly as they might have R&D spend represented a sizeable commitment 60
60 56
been. Revenue was down slightly to $712 million of $6 million (2020: $5 million) at a time when 30
(2020: $750 million) but was on forecast as we had evidence-based decision making is more important 31
anticipated a slight reduction in tonnages sold. than ever. We maintained developments in
0
2017 2018 2019 2020 2021
The balance sheet was strong with negligible net customer-benefitting technology such as HawkEye (before rebates to shareholders)
debt ($0.3 million), an equity ratio of 78% and an and a new Customer Centre telephony system with
Operating cashflows reflects normalised inventory levels
operating cashflow of $56 million before rebates to a commitment of $4 million (2020: $5 million). and timing of payables.
Ravensdown Integrated Report 20217
NET CAPITAL EXPENDITURE CASHFLOW ($M) SHAREHOLDER REBATE ($/T) VALUE OF SHAREHOLDER DISTRIBUTIONS ($M) TOTAL EQUITY ($M)
Total dollar of distribution to shareholders comprising rebates
and bonus shares
50 50 70 500
47 40 474 492
40 46 40 45 60
400 451
55 406 429
39 50
30 36 30 49
33 30 30
40 300
20 23 20 25 30 35 33 200
20 28
10 10 100
10
0 0 0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2010 2021
(bonus shares include tax credits)
Net capital investment includes investments in intangibles. In 2021 our rebate of $30 enables the company to reward Rebates Bonus Shares We have continued to add shareholder value with increasing
2019 comparative included sales proceeds of $10M. our shareholders whilst strengthening our financial position. total equity.
In 2021 we made two distributions: our early interim rebate
in cash and a final rebate, totaling $33m.
EQUITY RATIO (%) RESEARCH AND DEVELOPMENT ($M) ASBESTOS REPLACEMENT ($M) NET BANK DEBT ($M)
The ratio of equity to total assets compares the money creditors
contribute to the business with the money owners contribute
80% 6.0 3.0 80
74% 78% 5.8
73% 71% 70% 5.0
69
60% 5.2 5.0 2.6 2.5
60
4.0 4.7 2.0
3.9 2.1 40
40% 3.0 39
1.4 1.4 20 28
2.0 1.0
20% (6) 0
0
1.0
0% 0.0 0.0 (20)
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
The equity ratio remains in our targeted band. We continue to fund research and support development We are committed to our programme of replacing At year-end we had low net debt as a result of strong
of new initiatives. asbestos throughout our network. autumn sales.
Thriving in a changing landscape8 STAKEHOLDER ENGAGEMENT
Our business is impacted by, and has an impact on, a wide range of interested
parties (stakeholders). We engage with them to better understand what
issues are important, how we can work together on common goals and how
we can consistently improve our performance.
“Truly listening to stakeholders is
the best way to learn what matters to
This year, each of the manufacturing industry on our collective response to
them so we can act on that feedback.”
sites and lime quarries undertook a climate change through our Sustainable
stakeholder identification and Business Council and Climate Leaders
engagement planning exercise, which Coalition memberships.
resulted in improved stakeholder We completed an inaugural
engagement. We improved knowledge sustainability survey and evaluated
and awareness of cultural considerations suppliers on performance with
associated with our operations through recognition given to the top performers
training of management staff and several and assistance given to those
engagements with iwi groups, and are needing to improve.
planning to do more of this. For employees, a new approach for
Our involvement in policy advocacy more continuous measuring of staff
has risen as environmental regulations engagement was rolled out in August
for farming have become increasingly 2021. This tool will assist us to regularly
complex. Our contribution to monitor staff engagement in a ‘real time’
government and policy processes is way. It will also enable us to be more
valued by farmers and local and regional General Manager Operations
responsive in addressing concerns and
Stephen Esposito met many stakeholders
Supplemental government as we seek to achieve getting wide-scale feedback on various this year including at a Christchurch
information is sustainability in agricultural production. new initiatives as they are implemented. open day to discuss the new stormwater
available online and
We made several submissions to After they proved so successful during last management and intake systems.
the full set of audited
accounts is available
government to guide the direction year’s lockdown, regular all-staff virtual
in a separate annual New Zealand takes on freshwater quality events providing access to the Leadership
report on our website. and climate change. We engaged with Team have remained a focus area.
Ravensdown Integrated Report 2021MATERIALITY 9
Through these efforts, we continue to learn what issues are front of mind for our stakeholders.
What issues are important to our stakeholders?
A full summary of what channels we use for engagement with our key stakeholders can be
found online. Right now, the issues we must respond to include: EMPLOYEES BANK/LENDER
• Fair remuneration and • Financial performance
good conditions of • Climate risk
employment
• Ethical procurement
• Safety and wellbeing
• Sustainable agriculture
• Training & career practices
development
COMMUNITY
CUSTOMERS
Nutrient levels in waterways: Robust internal Ethical procurement of raw materials: • Impacts of main sites
environmental management as well as undertaking adequate due diligence of the • Dependable supply (dust/noise/ stormwater)
providing trusted advice and leading tools, supply chain, applying human rights’ • Innovative & customised • Operational GHG
technology and science to enable farmers to principles and encouraging and recognising farm solutions emissions
reduce their impact on water quality while better environmental and social outcomes • Regulation assistance
optimising value from the land. by supply partners. • Product quality IWI
• Financial performance
• Water quality
Impacts of our manufacturing plants: engaging Agricultural GHG emissions: reducing net • Farm environmental
• Impacts of main sites
impacts
with communities regularly to understand emissions through efficient supply chains • Waste to land
needs and expectations in regard to cross- and processes, protection and enhancement • Community support
• Sustainable land use
boundary impacts such as air and water quality, of native forests and tools and technologies
GOVERNMENT
noise and odour, and investing in systems that to reduce fertiliser-related emissions of SUPPLIERS
improve our performance in these areas. greenhouse gases. • Water quality
• Long-term trusted
• Climate change/
partnerships
decarbonisation
• Shared values
• Biosecurity
• Responsible sourcing
• Ethical procurement
• Resource use/GHG
emissions
Thriving in a changing landscape10 BUSINESS MODEL
Our business is impacted RESOURCES VALUE CREATED SUSTAINABLE DEVELOPMENT GOALS
by, and has an impact on,
all six capitals described REDUCED
HUMAN ENVIRONMENTAL
in the Integrated Reporting CAPITAL IMPACTS
GRAT ION
Framework as specified by INTE
the International Integrated ENGAGED
FINANCIAL STAFF IN A SAFER
Reporting Council (IIRC). CAPITAL
MAKE • STORE
ENVIRONMENT
BUY • SHIP
PRECISION
APPLICATION
ECONOMIC
MANUFACTURED RETURNS
CAPITAL TEST • ADVISE
MEASURE • MAP
& MONITOR
COLL
ION
RELIABLE SUPPLY
TRAINING AND
DEVELOPMENT USE AND DEVELOP OF QUALITY
AB
INTELLECTUAL TECHNOLOGY AGRI-PRODUCTS
AT
CAPITAL
OR
OV
AT
BUILDING
N
RESEARCH
TRUST ACTIVITIES
IN
N
IO
OPTIMISED VALUE
SOCIAL AND FROM THE LAND
RELATIONSHIP
CAPITAL
LEADING TECHNOLOGY,
SCIENCE AND
INFORMATION
NATURAL
CAPITAL
More details are
available from the External factors, active governance STRONGER
interactive business and risk management COMMUNITIES
model in our
Integrated Reporting
website.
Ravensdown Integrated Report 202111
Managing the intersecting capitals
The six capitals listed on page 10 interact with each other in a series of trade-offs
that need to be managed to deliver value.
Example Use of Example Online ordering “Offering farmers a system that records
phosphate rock and smart N-use for compliance takes effort to
1 2 reporting build in ways that are effortless to use.”
The limited availability of phosphate rock HawkEye and associated technologies
choices became more evident this year. are examples of use of financial capital
As an example of natural capital, to develop intellectual capital.
additional sources to the rock supplied By offering precision spreading
from Western Sahara were processed across an increasing number of
with the use of manufacturing capital. groundspreading trucks and aerial
The other sources from Togo, Vietnam spreading aircraft, we help farmers
and China are more energy-intensive to improve their management of natural
work with, so financial and human capital capital (land and water) as well as
was impacted as the team worked harder increase their social and relationship
to produce the same amount of capital (with neighbours and regulators
superphosphate. This product contained for example).
elevated fluoride and cadmium levels
We recruit and train employees with
(though they remained within industry
the right software and hardware skills
limits). These challenges occurred
so that human capital continues support
despite a massive effort to manage the
and development of this solution. Product Manager Phil Barlow on the new
extra supply risk (impacting on social and N-190 Heat Map which is a visual audit of applied
relationship capital) and challenges to nitrogen. It is used by farmers and Ravensdown
our blending/manufacturing operations. advisors, improving human capital.
Thriving in a changing landscape12 RISKS AND OPPORTUNITIES
In pursuing our goals towards creating and protecting value for our The following are some of our top risks
stakeholders in the short, medium, and long term, we proactively manage and not in any particular order.
risk and opportunities in a dynamic operating context. In 2020-21 we faced RISK TITLE
challenges and risks associated with various events including Covid-19 that Changing government Response: We will continue to meet with central
significantly impacted our business. and shareholder and regional government to provide examples of
priorities affecting our managing within environmental limits while
industry in relation to optimising farm production.
We manage risk to ensure delivery
climate, emissions and Medium/long-term view and opportunities:
of our strategic objectives.
the use or protection The demand for Farm Environment Planning,
Our risk management framework of natural resources proof-of-placement compliance and
requires and ensures that the following
environmental mitigation will become even
is in place:
more important.
• Risk Management Policy
• Governance Structure Interruption to the Response: We have enduring relationships with
• Procedures supply of key fertiliser long-term suppliers of our key fertiliser inputs
inputs, arising from which we continue to assess. We explore
• Reporting Requirements
either global or domestic back-up options to ensure we can meet supply
We have taken a closer look at events or constraints commitments to our customers.
Ravensdown’s level of climate change
Medium/long-term view and opportunities:
risk this year and are planning our
Keep developing second sources as back-up
response to climate risk disclosures
supply options whilst maintaining the long-term
over the coming years.
relationships with our high-performing
We continue to monitor the supply partners.
pandemic situation as impacted by
vaccination effectiveness, rollouts and
travel limitations.
The Audit and Risk Committee
reviews a number of the top risks at
each meeting.
Ravensdown Integrated Report 202113
RISK TITLE RISK TITLE
Inability to deter or Response: We continue to invest in Changing public opinion Response: Align where practical with
recover from cyber strengthening our existing security systems, on the role of agriculture government plans to increase primary sector
security incidents processes and practices to detect, prevent or in NZ export value, to attract and retain more workers
recover from cyber security threats. by 2024 and help farmers with their
Medium/long-term view and opportunities: greenhouse gas emissions.
Cyber threats will continue to grow in Medium/long-term view and opportunities:
volume, with phishing and ransomware attacks With improvements and even better
likely to remain the largest threat given their environmental mitigation, New Zealand’s
relative effectiveness. well-managed pasture-based systems can
The growth in cloud platforms and services is continue to be the world’s most carbon-efficient
making it easier for hackers to operate globally food producer.
and bringing greater risks to New Zealand.
Security controls both for personal and business Failure to embed a Response: Our Safety and Wellbeing strategy
mobile devices will be increasingly important as culture, systems and has a focus on three key pillars – visible
hackers seek to use this vector to commit fraud processes that prevent leadership, critical risk management, and
or gain company information or system access. or can appropriately simplified systems and assurance. Key metrics
respond to material are in place to support visibility of performance
safety, health or security against each of these pillars and a strong culture
dangers or incidents of reporting hazards and incidents
is encouraged.
Medium/long-term view and opportunities:
Ensuring a clear implementation plan for each
of the key pillars is in place, understood and
supported across all parts of the business.
Thriving in a changing landscape14 STRATEGIC PERFORMANCE
WHY
To enable smarter farming for
a better New Zealand.
HOW
By providing products, expertise and
Ravensdown is clear on why it exists technology to help farmers reduce
environmental impact and optimise
and how it helps turn this goal into reality.
value from the land.
The following pages are focused on how
we are progressing on our five priorities.
Supplemental
information is
available online and
the full set of audited
accounts is available
in a separate annual
report on our
Integrated Reporting
website.
Ravensdown Integrated Report 202115
PRIORITY
01.
Enabled Working smarter and farming smarter go hand
People in hand – we focus on helping our people do their best PAG E 1 6
work together.
02.
Trusted and We have an ambition to lead and will never stop trying
PAG E 2 4
Leading to do what we say we will do.
03.
Quality Agri Quality is about delivering promised performance –
PAG E 3 2
Products how it is experienced is the bedrock of our offering.
04.
Science We work with others to discover new approaches to the
PAG E 3 6
thorny challenges – the science never stops moving and
neither will we.
05.
Technologies and Armed with supporting technology, our employees work
PAG E 3 8
Services with each other and customers to deliver excellent service.
Thriving in a changing landscape16
PRIORITY ENABLED PEOPLE
“The team at
01.
Ravensdown do
Best work together
their best work
Enabling people takes constant focus
together and
and a positive, safety-oriented culture.
share a common
Learning and development have always
purpose.”
been prioritised, and staff and contractor
wellbeing is increasingly important. Store Manager
Our people help us to achieve our David Hirst leads
common purpose – enabling smarter the Whanganui
store, supported by
farming for a better New Zealand –
Tyrone Purcell and
by doing their best work together. Kane Compton.
This year we systematically
worked through revisions of all our
people-related policies and procedures
and introduced new technology to
simplify our recruitment and
onboarding processes.
A project was undertaken to
review our current hazard
management and incident reporting
system. RavSafe significantly simplifies
Key Focus Areas
the reporting and vastly improves
accessibility and user-friendliness of
the tool for our people. This in turn will
enable more accurate reporting and
improved responsiveness. Meaningful
Meaningful
Meaningful
Meaningful
Meaningful
Meaningful
Work
Work
Work
Work
WorkSafe
SafeSafe
Safe
and
Safe
and
Safe
and and
Sustainable
and
Sustainable
and
Sustainable
Sustainable
Sustainable Positive
Positive
Positive
Positive
Positive
Positive
Leadership
Leadership
Leadership
Leadership
Inclusive
LeadershipOpportunities
Opportunities
Opportunities
Opportunities
Opportunities
forfor
for
Opportunities
forfor Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Culture
Culture
Culture
Culture
Culture
Work Sustainable Leadership
Growth
Growth
Growth
Growth
Growth
Culture for Growth
Ravensdown Integrated Report 202117
Safety In April 2021, we achieved tertiary-
level accreditation for the second year in 01.
We are now well on our way to
implementing some of the key targets of a row after the annual audit as part of the
our revised safety and wellbeing strategy Accredited Employers Programme. The
which centres around three core pillars: audit was carried out at Dunedin Works
and included an in-depth review of our
1. Critical Risk Management
injury management practices.
2. Visible Leadership
3. Simplified Systems and Assurance Recordable Injuries
This year 24 of our people sustained a
One of the most significant changes recordable injury, meaning they were
has occurred through carrying out injured to the extent that they needed
“Safe Work Conversations” with the medical treatment, restricted duties or
Board, Leadership Team and line time off work. This increase from last
managers across the business recording year is primarily due to the overall
some of the everyday discussions we increase we have seen in reporting
have about safe work. This has given us (18% more incidents reported).
proactive, positive insight into the way
The increase is also due to supporting
the business is being run and the
workers in seeking medical treatment
attention our workers give to safety
when they have suffered even a minor
every day.
injury, which has seen medical treatment
injuries increase from one last year to
seven in 2021. The overall severity of
More safety conversations at work incidents remains low, with minor
and a simpler reporting tool all help injuries, strains and contusions making
improve a culture that is prioritising up over 80% of recordable injuries.
safety and wellbeing. However, we will never be complacent
if our people are getting injured.
New vehicle standards are aimed at
improving safety and environmental
impacts for everyone visiting and
picking up products from our sites.
Thriving in a changing landscape18
ENABLED PEOPLE — Continued
Focus on Injuries
Total recordable injury frequency rate (TRIFR) and lost-time injury frequency rate (LTIFR) targets have been
achieved this year*. Musculoskeletal injuries continue to be the primary cause of our recordable injuries,
with a developing focus on early intervention. In the coming year, focus will be given to injury management
and how to better support our workers in a meaningful way when returning to work. This should result in a
significant decrease in lost-time injuries.
From 1 August 2021 we introduced minimum standards for vehicle loading and unloading on all of our
sites. This is part of a collaborative initiative to ensure visitors operate safely while on our sites and to ensure
we’re looking after the environment, with equipment designed and maintained to ensure product is secure
throughout its journey. The feedback received from stakeholders will help us shape the final standards we
put in place.
A review of our permitting system has seen some changes being made to the way we view routine and
non-routine work in the business. These changes will ensure pre-planning work focuses on the risk
assessment in the form of a Job Safety Analysis (JSA). Training for all staff will be rolled out to ensure there
are adequate controls in place for non-routine work and that they are applied consistently.
METRICS - PERFORMANCE SECTION 2017-18 2018-19 2019-20 2020-21 TARGET
Total events reported 714 860 946 1110 –
Total recordable injuries 33 27 14 24
Total lost-time injuries 14 14 9 13
*Business Leaders’
Rolling 12-month Total Recordable Injury 4.7 4.4 2.2 3.56 4.66 Industry Health & Safety
Forum 2020
Frequency Rate average (per 200,000 hrs) benchmark*
Benchmarking
Report for all
Rolling 12-month Lost-Time Injury Frequency 1.44 1.96 1.41 1.78 1.96 Industry workers (employees
Rate average (per 200,000 hrs) benchmark* and contractors
combined)
Safe work conversations logged 1,049 2,327
Ravensdown Integrated Report 202119
Wellbeing Resourcing & Workforce 2018-19 2019-20 2020-21 TARGET
01.
Our employee wellbeing programme The introduction of our applicant # FTE 658 660 631 –
‘Thrive’ has been in place for 12 months tracking system (‘Snaphire’) in
and continues to evolve. Over the past September 2020 provided a platform % staff turnover 11.3% 11.07% 12.17% ≤10%
year we have run campaigns on mental that was cost-effective, attracted
After seven months at20
ENABLED PEOPLE — Continued
Learning & Development Institute of Management & Leadership,
In the post-COVID recovery, a and Next Level Leadership offered by
cautious approach was taken to the Agri Women’s Development Trust.
learning and development, with many We have also invested in growing
external opportunities being limited the knowledge of our agri managers
due to the risk of alert level changes. and Customer Centre by expanding
We have provided our teams with the our suite of online training modules.
opportunity to attend virtual training In addition to this, in conjunction with
sessions where possible. Massey University, we have upskilled
Our Digital Security training has teams on farm systems and farm
continued to support awareness and environment plans through the
prevention of the threat of cyber introduction of three new courses – “Farmers know they
security attacks. all delivered online. All agri managers, need to improve in
We develop our future leaders through environmental consultants and this environmental
participation in the emerging leaders Customer Centre staff will complete space and look to
programme offered by the New Zealand these courses over the next two years. their co-operative
for help.”
2018-19 2019-20 2020-21
Senior Agri Manager
Spent on targeted training and development $1.1m $940k $945k James Livingston was
Total training hours 2,572 2,968 4,582 one of the first participants
on Massey University’s
% internal appointments 36% 47% 33% new Advanced Farm
Environment Planning
# of secondments 6 13 16 course.
Ravensdown Integrated Report 202121
Capability
01.
Our operational teams continue to
develop capability. Aerowork has
focused on building depth across the
engineering team, critical for keeping our
planes in A1 condition. We now have two
Group One rated engineers and a
number of engineers working their way
towards this level. Our inventory stores
team also continued their development,
working through Level 3 Aeronautical
Storekeeping during the year.
This year saw us implement a
training programme for agpilots which
will help support hyperspectral scanning
in the upcoming season (see page 37).
Systems were implemented to support
our pilots and customer service.
Aerowork pilot
Mike Harding seen
here spreading fertiliser,
completed his Ag1
training this year.
Thriving in a changing landscape22
ENABLED PEOPLE — Continued
Diversity A Cultural Competency workshop Female Male
In July 2020 we engaged with Diversity was held in March 2021 with senior
Works to complete a ‘stocktake’ of our leadership in our Operations division.
diversity and inclusion progress. The Following the necessary adaptation to Overall 32.3% 67.7%
stocktake identified that, while we had new ways of working through the course
interventions and foundations already in of 2020, in September we introduced Board 37.5% 62.5%
motion, there were still opportunities to our first flexible working policy as a
develop a more formal, strategic, and more structured step in supporting
Leadership Team 12.5% 87.5%
well-informed approach to diversity and employees to thrive at work and at
inclusion management. Our next step is home. While all forms of flexible
working are not possible with all roles Manager 21.4% 78.6%
to develop a comprehensive Diversity
and Inclusion plan. in Ravensdown, our aim is to support
these opportunities where we can. Employee 35.1% 64.9%
Our current diversity statistics
show 35% female representation in 0% 20% 40% 60% 80% 100%
our workforce, 22% in managerial roles,
20% in senior leadership and 37.5%
on our Board. Our capture of ethnicity
data continues to increase through our 60+ 1.9% 11.0%
onboarding technology and we now
have details of about 68% of the 50-59 7.2% 20.2%
permanent workforce.
40-49 6.3% 17.1%
30-39 6.7% 13.2%
20-29 10.2% 6.1%RESPONDING TO CHANGING CUSTOMER NEEDS 23
Our people are adapting in order to help customers
01.
thrive in a changing landscape.
1 The core provision of nutrients is complemented by science, technology
and services all aimed at helping farmers reduce their environmental impact
I C & PR ED I C TI V E T
N OST OO and optimise production.
D I AG LS
1. Diagnostic & predictive tools ClearTech® Dairy effluent treatment
system reduces fresh water use and kills
Analytical Research Laboratories
N AD micro-organisms such as E.coli.
TIO
ON
OP Measure nutrient levels in soils and plants to
RA TI
TI
AD
EG O inform predictive models and derive fertiliser
ICA
4. Research
VIS
recommendations.
T
N
IN
PPL
5
O RY
2 Precision coatings and blends Smart
Robust models Predictive tools improve
P R EC I S I O N A
fertilisers including N-Protect with a coating
decision making about phosphate-loss
S E RV I C E S
that reduces gaseous emissions.
DEPENDABLE mitigation or nitrogen-use efficiency.
AVAILABILITY OF Collaboration with others
FOOD-CREATING Remote scanning Emerging technology to
Supporting evidential research into more
determine plant and soil nutrient levels and
DISCO
QUALITY INPUTS efficient use of nutrients to minimise losses
CUS
vegetation types.
to water and air.
FO
VE
2. Advisory services
RY
5. Precision application
Farm nutrient and environmental experts
IntelliSpread®
Farm Environment Plans, nutrient budgets
Computer-controlled topdressing aircraft
N
INNO
VA T I O N and good farming practice for optimised
O
ES doors adjust spreading rate and avoid
TI
A nutrient use.
R
EA IG sensitive areas/waterways.
RC IT
4 H RM 3 Certified advisors Trusted advice improves
TE Precision spreading GPS-guided certified
WA chance of on-farm adoption (training includes
groundspreaders reduce risk of under- or
GHG mitigation).
over-application of nutrients.
3. Water mitigation HawkEye® Visual mapping tool eases decision
making and can demonstrate compliance.
Integrated Catchment Management
A collaborative multi-stakeholder approach
to environmental management at a
catchment level.
Thriving in a changing landscape24
PRIORITY TRUSTED AND LEADING when we encountered lower-than-
planned volumes of superphosphate
in the North Island last autumn.
02.
On the front foot By providing clear demand requirements
to our product supplier partners, we
Trust is built by accounting ensured our requirements were built
for multiple perspectives into their manufacturing planning early.
and being transparent across Continued engagement directly with
these suppliers ensures we are kept
a range of measures. up to date with disruption risks as
We aim to lead by prioritising they emerge.
environmental stewardship This year marked the tenth
anniversary of our shipping venture
and social responsibility. (Ravensdown Shipping Services) and
its value has enabled us to ship bulk
Dependable nutrient availability products when others have struggled
to do so. Container freight has been
In a year of unprecedented supply chain
managed with the assistance of Toll
disruption, it has been more important
Global Forwarding and Maersk, often
than ever to have strong long-term
going above and beyond to ensure
supplier relationships. The support
supply disruption is kept to a minimum.
from our key suppliers across the
IVS Swinley Forest For both product and shipping suppliers,
financial year was critical in ensuring we
(above) discharging being in strong supply partnerships,
provide the farm inputs our shareholders
urea and MV Deneb communicating clearly, being open
require when they need them. Harmony discharging and honest and working together
While we were not immune to sulphur in Lyttelton.
collaboratively has proved yet again
unprecedented impacts, we managed Both vessels are new
builds, providing
the benefits gained in dealing directly
imports, with the help of our suppliers, with our stakeholders.
increased fuel
to ensure shareholder impacts were efficiency leading
minimal. We acknowledge the stress to to reduced GHG
our customers and employees this year emissions.
Ravensdown Integrated Report 202125
Long-term supply partners
Long-term supply partners are highly valued by Ravensdown. To manage ever-emerging risks,
we qualify new supply sources to ensure we have more options to call upon should we encounter
disruptions going forward.
2018-19 2019-20 2020-21 TARGET
% direct spend under 91% 94% 91% >90%
management with long-term 02.
supply partners
Net Promoter Score
The last two years have seen the net promoter score, used as a measure of customer loyalty,
continue to rate highly. This is very pleasing and indicates the focus is working on making life easier
for our shareholders, ensuring our teams are well trained to give the best advice, and providing
consistently high-quality product. A score over 35 is considered an outstanding result.
2018-19 2019-20 2020-21
Net Promoter score 26 40 39 “Ravensdown doesn’t just pay
lip service to leadership – it backs
its people.”
Positive Leadership
One of the five key focus areas of our new Culture and People Framework is ‘Positive Leadership’, a
philosophy especially important through times of change and crisis as we saw during our response Ashleigh Harrison (Store Worker, Winton),
Jennifer Henderson (Lab Team Leader, ARL) and
to Covid-19. We are designing a new leadership development programme alongside a ‘Stepping
Marco Hambley (Acid Plant Engineer, Christchurch
Up’ programme focusing on the fundamentals of self-leadership and personal responsibility. Works) successfully completed the Emerging
Our commitment to providing an employee experience second to none has been acknowledged Leaders Programme.
through the 2021 HR Director magazine’s Employer of Choice Awards where Ravensdown was
formally recognised for the achievements and initiatives we have put in place across several areas,
including learning and development, wellbeing, leadership and flexible working.
Thriving in a changing landscape26
TRUSTED AND LEADING — Continued
Carbon Footprint Emissions composition TOTAL in tonnes of C02 equivalent
We see climate change as a significant global threat and therefore CY 2019 CY 2020
track our greenhouse gas emissions and climate-related risks. UPSTREAM – Scope 3
This year Ravensdown’s direct carbon emissions reduction
Coastal shipping 182 448
target was increased to 30% reduction by 2030. The current
year’s performance is already 16% below the base year and Shipping 91,259 80,346
GHG intensity also fell by 5% this year. Some of this year’s
CORE – Scope 1 and 2
initiatives are listed overleaf.
Ravensdown operational GHG Emissions to date & reduction target, Manufacturing start-up 525 941
scope 1+2
Heavy & light vehicle fleet 4,870 4,524
18000
16000 Net electricity 1,350 1,528
14000
12000 Lime drying 3,353 2,605
10000
Aerial spreading 4,850 4,269
tCO2e
8000
6000
DOWNSTREAM – Scope 3
4000
2000 Waste 195 238
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Air travel 546 239
target
Distribution 29,365 29,416
2020 core emissions only
GHG losses on farm direct from fertiliser 1,095,694 1,163,593
TOTAL 1,232,190 1,288,146
Scope 1: sources owned by company.
Net electricity*1,374
Net electricity* 1,374
Scope 2: purchased electricity.
Plant start-up 941
Plant start-up 941
Scope 3: sources not owned or directly controlled.
Lime manufacture 2,605
Lime manufacture 2,605
Aerial spreading 4,269 (https://ghgprotocol.org/corporate-standard)
Aerial spreading 4,269
Light & heavy fleet 4,524
Light & heavy fleet 4,524 Carbon footprint is calculated on a calendar year. The rest of the Integrated Report is related to the financial year.
*excludes distribution loss Calendar year 2019 emissions have been updated to reflect the latest emission factors.
Ravensdown Integrated Report 202127
• We significantly reduced coal use by
22% and progressed with technical
investigations into renewable fuels
along our pathway to phase out coal.
In the coming year we will implement
some of the identified initiatives and
“SABIC is taking a leading role
undertake further lab tests and
in carving the path toward investigative work. 02.
a low-carbon economy.”
• We are introducing electric forklifts
Dr Bob Maughon,
to our large fleet of diesel-powered
EVP Sustainability forklifts and sought a supplier
Ravensdown has committed
Technology and partnership to assist with this. to plant trees at selected sites
Innovation at
• We continue to see the benefits to restore the landscape,
Ravensdown supplier
of remote working styles and provide habitat and sequester
SABIC, outlines the
carbon. We also help farmers to
scale of investment flexible working policy with reduced
do the same. This volunteer day
at the global leader travel emissions. involved planting 1,000 trees at
in urea production.
• We more than doubled the movement a Rakaia dairy farm.
Sabic.com/en/sustainability
of product via coastal shipping, taking
trucks off the road and reducing diesel
emissions. We will continue to look for • We continue to investigate the use • We have taken a closer look at
opportunities to do so. of biodiesel in mobile plant and acid Ravensdown’s level of climate change
• Carbon emissions in manufacturing plant start-ups. risk this year and are planning our
increased due to the number of acid • Small projects were completed response to climate risk disclosures
plant start-ups, which required more for efficient electricity use over the coming years.
diesel. Once started, our acid plants including LED lighting, electricity Limited assurance for our GHG emissions
generate electricity which is used in monitoring and solar generation inventory has been provided by EY.
our manufacturing plants with excess feasibility investigation. Their statement is available at https://
exported to the national grid. • The company vehicle policy was integratedreporting.ravensdown.co.nz/
updated to better support Climate
Leaders Coalition commitments.
Thriving in a changing landscape28
TRUSTED AND LEADING — Continued
Environmental Performance • Environmental management plans
There have been significant and associated communications tools
improvements and a focused effort were upgraded across our network.
• We received a single infringement The stormwater
to improve standards across all of our
treatment system at
New Zealand network that go notice this year, at the Dunedin Works,
the New Plymouth
beyond compliance: after an accidental release of some site was further
• All of Ravensdown’s 55 sites are residual diesel from a drip tray enhanced to improve
assessed regularly for RMA entering the stormwater system. water quality and
The spill was immediately cleaned compliance. Site staff
compliance and environmental worked closely with
impacts are increasingly monitored up to the council’s satisfaction.
the local nursery to
regardless of a consent obligation In response to this event, we have keep pests out and
to do so. installed an interceptor and plant more wetland
undertaken refresher training with species so they can
• Stormwater discharge sampling
staff and a thorough risk assessment fully establish.
was doubled, continuing to make
of the high-risk areas of the plant.
improvements to better understand Daily Ambient Sulphur Dioxide Level – three manufacturing sites
our environmental impacts.
140
• Incident management software was Ravensdown holds a number of
updated to better record, analyse and resource consents at various sites
120
respond to environmental hazards which require careful management. 100
and events, as well as health and For example, the three
24-hour average ug/m3
safety events. Reporting of events superphosphate manufacturing 80
through our incident reporting sites hold consents to discharge 60
platform continues to improve, with sulphur dioxide to air from our
120 submitted this year. The more sulphuric acid plants. All three sites 40
reports we receive, the easier it is to have maintained 24-hour average
20
identify trends and respond to risks. discharges within the Ministry for
Environment (MFE) guideline of 0
1 June 2020 1 September 2020 1 December 2020 1 March 2021
120ug/m3.
Guideline (MFE 2002) Dunedin Monitoring site 1 Dunedin Monitoring site 2
Napier Monitoring site 1 Napier Monitoring site 2 Christchurch Monitoring site
Ravensdown Integrated Report 202129
Investments Aircraft fleet
Our infrastructure upgrades focus on Thirteen new fully HSNO-compliant loader trucks were purchased which improve
improving safety for people and visitors, safety and efficiency. Four further replacement trucks are planned for 2021-22. The
reducing environmental impact and sealed cabs of the new trucks allow the operator to undertake all tasks safely from
improving efficiency. This year saw the within the loader cab.
introduction of a formal sustainability
assessment of all major construction
02.
projects to help minimise risk and
Dust Control
improve project delivery.
The old open-air despatch area at McNab store was replaced by a new fully enclosed
Nutrient and stormwater despatch area. This will vastly improve our environmental footprint on site as well as
management remain our key improving processing capability.
environmental management priorities
New dust curtains were installed at Seadown and New Plymouth.
across the stores’ network.
Improvements include sealing road
surfaces, installing electric rapid doors,
improving stormwater capture and Asbestos Removal
disposal, and enclosing dispatch areas. A programme is being progressively completed across our building stock to improve
the safety of our staff, neighbours and visitors. To date we have spent $14.2 million
out of a planned $24 million over a 10-year period. Highlights this year include a full
re-clad of our Gisborne Store (pictured), with the Masterton store scheduled for
completion next year.
Seadown Development
To improve customer service, maintain product quality and improve efficiency at the
Seadown Service Centre, we are continuing a staged upgrade. We completed a
The multimillion dollar stormwater dressing plant upgrade and started installing a new urea conveyor and adding a
upgrade in Christchurch was a chance to second despatch lane. These upgrades will help to maintain product quality
listen to residents before the site’s 100th throughout storage and handling and provide customers and transporters with
anniversary in 2022. improved service delivery.
Thriving in a changing landscape30
TRUSTED AND LEADING — Continued
Christchurch Works Store 7 was Dunedin Works’ yard sealed surfacing Supreme Electrical upgrade for compliance, Geraldine primary crusher was
strengthened for compliance, safety, improved environmental performance safety, asset protection and reliability leading to replaced to meet increased demand
asset protection and extension of life. and reduced nutrients in stormwater. increased efficiency and automation. at lower cost and with reduced fuel
use and emissions.
Christchurch and Dunedin Acid plant Christchurch intake replacement was a large- Dunedin dynamic separator improved Upgraded intake system at the
Economisers: Replacement of end-of- scale project resulting in increased reliability, processing capability while reducing Napier store improved safety and
life asset to increase reliability, lower ease of maintenance, improved environmental operational and maintenance costs. environmental management along
repairs and maintenance costs. performance and improved safety. with greater efficiency.
Ravensdown Integrated Report 202131
An application to renew the air and
water discharge permits for Napier
Works is being prepared. We are taking
the opportunity to engage with local
stakeholders and interested members
of the public so that any application is
informed by an open and transparent
engagement process, and community 02.
issues are appropriately understood
and addressed.
Ravensdown is committed to reducing
our environmental footprint and is
already making investments to achieve
this goal. More information can be found
“We’re working at https://www.ravensdown.co.nz/
with the ravensdown/napier-21-consent
community Consents at our other sites are being
to help the renewed or updated where required.
providers of
food to the
community.”
Hamish Price is a
maintenance fitter at
the Napier site where
staff are preparing
their permit renewal
application for the
site’s air and water
discharges.
Thriving in a changing landscape32
PRIORITY QUALITY AGRI PRODUCTS
03.
Reliability and dependability Compressive strength
Whether it’s fertiliser, lime, seed Superphosphate Compressive Strength (kg force) Three works rolling average
or agchem products, farmers and
6
growers need products that
are fit for purpose, suitable for 5
New Zealand conditions and 4
compressive strength Kgf
available when needed. Target 3.5 Kgf
3
Increased compressive strength means Stronger
2
the fertiliser granules break down less superphosphate
during handling and blending. This granules
1 deliver better
means less dust and better, more precise
environmental
spread during application. Our stated
0 and agronomic
superphosphate target is 3.5kg force outcomes.
1 Jun 17 1 Dec 17 1 Jun 18 1 Dec 18 1 Jun 19 1 Dec 19 1 Jun 20 1 Dec 20 1 Jun 21
and we have been achieving results at
3 mth rolling average Target
or greater than this on average across
the three works sites for the past three
years. This target is exceeded by
sourcing quality rocks, and focus from
our manufacturing and process teams.
Ravensdown Integrated Report 202133
Fertiliser quality Product quality ratings
All Ravensdown lime quarries and 2018-19 2019-20 2020-21
major fertiliser products continued
Overall product quality rating for fertiliser,
to be Fertmark registered. 74 75 75
lime, agchem and seed products
In the past 12 months, all chemical
quality results have been within Product quality remains consistently high on a scale of 0=poor to 100=excellent.
Fertmark standards. All products have performed well reflecting an ongoing focus on improving
Despite sourcing and processing manufacturing processes, strong relationships with key suppliers and our ongoing
challenges (see page 11), all focus on quality from procurement, through logistics, handling, testing and
superphosphate products leaving the regulatory compliance. This year we made the decision to exit our animal health dips
plant were below the industry-set and drench range as we focus on our core business of nutrient management,
limit of 280mg of cadmium /kgP. environmental advice and agronomy.
Dependability and quality remained Product quality for the agchem and seed businesses remained consistently high. 03.
a key focus with virtually no complaints New varietals of improved seed from Cropmark are being added to the range as other
received. varietals are phased out. Over the next year, the way we provide agronomic advice is
being improved as we focus on specialised advice to suit farmers’ needs beyond
immediate solutions to a longer-term approach.
Thriving in a changing landscape34
QUALITY AGRI PRODUCTS — Continued
Low risk imports – protecting our borders
2018-19 2019-20 2020-21 TARGET
Applied fertilisers via bulk vessel
imported as “low risk” 98% 100% 97% > 95%
biosecurity
% Imported bulk fertiliser met
physical and chemical quality 97% 98% 98% > 95%
specifications
After discovering
unacceptable
Our “Low Risk” system for importing bulk vessel fertiliser proved its worth again contamination during
in 2020-21. As supply of DAP tightened, we were offered a cargo from an alternative pre-loading, the DAP
source. Our assessments highlighted several risks and the cargo was rejected at the shipment was rejected
origin port. Reinforcement and clear expectations of biosecurity measures were at the origin port.
communicated to our preferred supplier, who was then able to review its supply
point and offer a suitable replacement cargo that met our standards.
International supplier performance
2018-19 2019-20 2020-21 TARGET
% international suppliers’
86% 91% 100% > 90%
performance is evaluated
Ravensdown completed evaluations on 100% of our preferred suppliers sharing
the feedback with them. Given the supply chain challenges across the globe, this
highlights the value our key suppliers place on providing quality products at the right
time. The supplier review system has now been extended to capture most indirect
preferred suppliers that support our sites across the country.
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