SUSTAINABILIT Y REPORT AS AT SEPTEMBER 2020

SELECT HARVESTS SUSTAINABILITY REPORT 2019 PROTECT & GROW

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CONTENTS
About this Report	2
Foreword from our Managing Director	3
FY2020 Highlights: In a Nutshell	4
Our Approach to Sustainability	5
Optimise the Almond Base	6
Grow our Brands	7
Expand Strategically	7
Governance Structure	7
Approach to Risk Management	7
External Memberships	7
Materiality	8
Priority Topics	9
Engaging Stakeholders	10
Culture, Values and Behaviours	12
Planet	13
Water Management & Stewardship	14
Using Technology to Improve Water Efciency	15
Environmental Impact	17
H2E Co-Generation Power Station	18
Carbon Based Fertilizer Sustainable Almond
Production	19
Chemical Management	21
Climate Change	22
People	23
Occupational Health and Safety (OHS)	24
Labour Practices, Human Rights,
Anti-Corruption, Ethics and Integrity	26
Food Safety, Product Labelling and Quality	27
Sunsol Kids PRO-biotic Range	28
Proft	29

Financial Performance & Business Strategy	30
Historical Summary	31
GRI Index	32
Contacts Page	35

ABOUT THIS REPORT

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This sustainability report for Select Harvests Limited’s[1] (“Select Harvests”) covers the period 1 October 2019 to 30 September 2020. Unless otherwise stated, references to Select Harvests refers to all our subsidiaries and the information in this report covers all sites wholly owned, leased and joint venture orchards and facilities operated by Select Harvests. The report does not cover investment entities where we do not have operational control.

This is the second sustainability report we have released, with the previous reporting period being the financial year 1 July 2016 to 30 June 2017.[2] The business transitioned from a financial year reporting period to better align with the almond crop cycle. The annual reporting period is now 1 October to 30 September. We are committed to reporting our sustainability performance biennially, with annual snapshots on progress and consistently improving our data and information collection processes to ensure better quality data and insights.

This report has been prepared in accordance with the Global Reporting Initiative Standards Core option. For more information about the Standards, please see www.globalreporting.org For ease of reference, a GRI Standards Content Index is located on pages 33-36. External assurance has not been sought over the content of this report. We will look to seek assurance in the future as our sustainability reporting matures. The currency used throughout this report is Australian Dollars, unless otherwise stated.

Please see ‘Our approach to sustainability’ on page 6 of this report, our website and accompanying Annual Report available at

https://selectharvests.com.au/annual-reports/ for more information about our company activities and operational performance.

After the reporting period but before the publication of this report, Select Harvests, along with all Australian businesses have been required to address the impacts of the COVID-19 pandemic on our operations and people. Our priority is to keep our people safe and comply with all recommendations and requirements from the Government.

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...we set our goals and targets with a long-term lens as we operate in an industry that requires up to 25 years of foresight...

PROTEIN

Superfood

VITAMIN E FIBRE MONOUNSATURATED FATS

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SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW 3

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FOREWORD FROM THE CHAIR AND MANAGING DIRECTOR

There is an increasing demand for healthy food globally. As a grower and marketer of plant-based food products, Select Harvests is well positioned to help meet this growing demand. Our strategic goals and objectives have been set with a long-term lens as we operate in an industry that requires commitment over the 25 to 30-year life cycle of an almond orchard.

Sustainability is embedded into everything we do. The 2020 Sustainability Report outlines our key focus areas, 2020 performance and outlook in our three sustainability platforms: Planet, People and Profit.

These three sustainability platforms underpin our approach to planning and operating our business and are essential to delivering on our key strategic objectives:

• Optimise the almond base.

Grow our brands; and

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ABOVE: Michael Iwaniw, Chair (left) and Paul Thompson, Managing Director of Select Harvests. BELOW: Our triple bottom line focus.

• Expand strategically.

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This year we have looked to build on the communication, performance reporting and transparency of our sustainability strategy. We have aligned our reporting with the Global Reporting Initiative (GRI) Standards and the United Nations Sustainable Development Goals (SDGs). This decision was made to provide a global framework for our goals and objectives.

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Select Harvests manages its resources efficiently and sustainably. Since our last sustainability report in 2017, expectations have continued to increase around managing complex global social and environmental challenges, including climate change, human rights and safe working conditions.

KEY FOCUS AREA

• SAFETY: Ensuring the safety of our people, by preventing injuries before they occur. The aim of the Select Harvests Zero Harm Safety and Wellbeing strategy is to improve our safety performance by 15% per annum until we operate in a zero-harm environment.

- In 2020 we recorded a 23% reduction in Total Recordable Incidents

• WATER MANAGEMENT: Our goal is to optimise our yield per megalitre of water. We manage our water efficiency through best practice water delivery systems, water optimisation technology such as soil water monitoring, tree based monitoring and high-resolution imagery.

- In 2020, 100% of our orchards use drip irrigation tree and soil monitoring systems

• ENVIRONMENTAL IMPACT: We aim to reduce our impact on the environment across all aspects of the business by reducing, recycling, and re-using, as we transition to greener value chain.

- In 2020, we have decreased our Scope 2 emissions by 27.5%

FINANCIAL PERFORMANCE: Strong financial performance underpins the viability of our business and
allows us to deliver value to all our stakeholders.

LOOKING AHEAD

We are cognisant of the potential impact we have on our environment and our local communities. We will continue to invest in our monitoring and reporting systems, to ensure that we have the right sustainability measures in place to address the key focus areas of our stakeholders.

We will continue to mitigate known risks in each of our sustainability platforms. To achieve this, we are:

Participating and supporting the Murray Darling Basin Plan to bring the Basin back to a healthier and sustainable level.
Increased focus on recycling and the use of renewable energy sources.
Investigating ways to improve the value of our co-waste in low carbon environment.
Maintaining a strong financial performance.
Execute our ZERO HARM Safety and Wellbeing strategy.

We will publish a Sustainability Report biennially and provide regular progress reports on our sustainability performance, including in our Annual Report.

We welcome your interest in our 2020 Sustainability Report and value your feedback.

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SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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FY20 HIGHLIGHTS

In a Nutshell

PLANET

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100% of our orchards 51% of energy sourced H2E co-generation plant Produced 31,179Mt
use drip irrigation from renewables delivered approximately of compost for
tree and soil 27.5% reduction of FY2020 season
monitoring systems Scope 2 emissions
PEOPLE
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20% reduction in 23% reduction in total Completed 100% of labour
lost time injury recordable incidents externally assessed providers have ethical
severity rate culture survey sourcing policy
PROFIT
Almond Crop Net Profit After Tax Earnings per Share Net Debt (excluding
23,250Mt (NPAT) of $25.0m (Basic) 26 cents lease liabilities) to
up 560Mt Equity 14.2%
PROJECTS
• Repatriation and • On orchard solar Launch of probiotic Re-development of
management of wet areas energy generation muesli range with low 145 Ha (358 acres) of
• Upgrade dripper lines • Increase renewables sugar content under the almonds in July 2019
with low friction tape purchases Sunsol brand
• Composting to increase • Change over to energy
irrigation efficiency efficient driers and
• Recycle Carina West motors
waste water into compost
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SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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Our Sustainability Priorities

Approach to Sustainability

We are Australia’s second largest almond producer and one of the largest integrated marketer of nuts, seeds and pulses with core capabilities across horticulture, orchard management, nut processing, sales and marketing. [1] These capabilities enable us to add value throughout our operations and provide us with the opportunity to execute on our strategic priorities; optimise the almond base, grow our brands and expand strategically.

Our approach to sustainability is a core value underpinning our business strategy and centres across three platforms; Planet, People and Profit. When making decisions at Select Harvests, we seek to ensure a balance between creating value for our shareholders and broader stakeholder groups (See Engaging Stakeholders section). We are committed to tracking our performance, delivering on environmental, social and economic best practices, & providing continual improvement

by setting objectives, measuring progress and communicating our results.

We have identified the key SDG goals that we are contributing to and have aligned them with our material issues (See Materiality section). We look to continually build on our disclosure against the SDGs and continue to develop initiatives and metrics that align directly with the detailed targets supporting goals.

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VISION To be a Leader in the Supply of Better for You Plant Based Foods
TRUST AND INTEGRITY AND SUSTAINABILITY PERFORMANCE INNOVATION
RESPECT DIVERSITY
VALUES
DO THE BE ONE PROTECT AND OWN IT THINK OUTSIDE
RIGHT THING TEAM GROW THE SQUARE
STRATEGIC Optimise the Almond Base Grow our Brands Expand Strategically
PRIORITIES
THE PATHWAY TO ACHIEVING OUR VISION sustainably high yields from our growing Increase productivity and achieve almond orchard base consumption of plant based foodsGrow our consumer and industrial brands, aligned to the increasing align with our core competencies in the Pursue value accretive acquisitions that plant based agrifoods sector
Customers Supply Chain People Capital
OPERATIONAL Exceed our current Optimise our end-to-end Focus on a safe working Target capital discipline,
FOCUS customer’s expectations supply chain to achieve environment, well-being, balance sheet strength,
WHAT WE DO and grow our customer maximum value for the company culture, leadership superior shareholder returns
EVERYDAY base, focused on the business as a whole development and staff and long term growth
Asian marketplace training, attraction
and retention
GOAL Sustainable Shareholder Value Creation
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The green November
orchard at Carina West .
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continued Our Sustainability Priorities

Optimise the Almond Base

Select Harvests is one of the worlds largest almond growers, with a geographically diverse 9,262 hectare orchard portfolio located in Victoria (central region), South Australia (southern region) and New South Wales (northern region). [1 2]

These orchards, plus other independent orchards, supply our state-of-the-art primary processing facility at Carina West in northwest Victoria and our value-add processing facility at Thomastown in the northern suburbs of Melbourne.

Our Carina West facility has the capacity to process 30,000Mt of almonds a season and can meet the ever-increasing demand for both in-shell and kernel product. Our processing plant in Thomastown processes over 10,000Mt of product per annum.

Central to the success of this strategic priority is the optimisation of the inputs that support our products. Since FY2017, we have invested heavily in water efficiecy technology and infrastructure which has dramatcially improved the use of water across our orchards.

The Carina West facility is home to our largest energy saving initiative, the Hull to Energy (H2E) co-generation plant which generates electricity from almond by-product (hull, shell and orchard waste).

The H2E facility powers the Carina West processing facility, irrigation pumps at the nearby orchard as well as exports excess power to the grid.

In addition to this, the vegetative waste from the electricity generation process creates a phosphate rich compost which is recycled back to our orchards.

Since FY2017, we have introduced new varieties and increased trees per hectare of almond trees with the aim to provide higher yields, using a similar level of resources to our historical plantings.. We are regularily reviewing our almond growing process for opportunities to implement a more sustainable method of achieving better yeilds, quality products and value for our stakeholders.

OUR ORCHARDS ARE LOCATED IN 3 DISTINCT GEOGRAPHIC AREAS

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NORTHERN
SOUTHERN LAKE HILLSTON REGION
REGION CULLULLERAINE Sydney
PARINGA
WAIKERIE GRIFFITH
EUSTON
Adelaide LOXTON ROBINVALE
CENTRAL
REGION
THOMASTOWN
Melbourne
AUSTRALIA
PROCESSING CENTRES
SELECT HARVESTS ALMOND ORCHARDS
PIANGIL ALMOND ORCHARD - ACQUIRED OCTOBER 2020
9,262 HA 2,670 HA 4,644 HA 1,948 HA
(22,886 ACRES) (6,597 ACRES) (11,475 ACRES) (4,814 ACRES)
TOTAL SOUTHERN REGION CENTRAL REGION NORTHERN REGION
PLANTED AREA PLANTED AREA PLANTED AREA PLANTED AREA
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Our Sustainability Impacts

Grow Our Brands

Our food division provides a capability and route to markets domestically and around the world for processed almonds and other natural products. [3] We supply both branded and private label products to the key retailers, distributors and industrial users.

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Our market leading retail brands are Lucky and Sunsol. Our wholesale/industrial brands are Renshaw and Allinga Farms. [4]

Our products are achieving recognition in the market with Sunsol’s PRO-biotic toasted muesli range products winning Product of the Year 2020 within the Health Food Cereal Category, while our Lucky Smart Snax Protein product won the Healthy Food Guide Awards 2019 within the Best Packaged Savoury Snack category.

Since 2017 we have enhanced our capacity and capability to supply the global ingredients market by investing in an allergen free, value add facility at Carina West. This facility has the capability to slice, dice, sliver, roast and paste almonds.

Expand Strategically

We continue to explore opportunities for expansion into new markets, crops, brands and greenfield developments. We are one of Australia’s largest almond exporters and continue to build strong relationships in the fast-growing markets of India and China, whilst also growing established routes to other markets in Asia, Europe and the Middle East. [5]

Within the Australian market we are well established and have developed strong brand equity and trust, which has driven the growth opportunities in these international markets. This is supported by the recent success of our Industrial and Consumer Divisions in South East Asia and China, resulting in us winning the Governor of Victoria’s Export award for FY2019 in the Agribusiness Food and Beverages Category.

Governance Structure

The Board of Select Harvests is responsible for the overall corporate governance of the Company. The Board guides and monitors the business and affairs of Select Harvests on behalf of the shareholders by whom they are elected and to whom they are accountable.

Our corporate governance arrangements are consistent with the ASX principles of corporate governance. Details of the Board’s Charter are located on the corporate governance section of the Company’s website: selectharvests.com.au/governance [6]

The General Manager of People, Safety & Sustainability reports on sustainability progress to the Board monthly. [7]

Approach to Risk Management

We have a risk management process in place to identify, analyse, assess, manage and monitor risks throughout all parts of the business. The Precautionary Principle is an intrinsic component of our operational risk management approach and is applied in our treatment of climate risk. [8]

The governance of risk is managed by the Audit and Risk Committee. The Company maintains and refreshes our detailed risk register annually.

The register provides a framework and benchmark against which risks are reported at different levels in the business. Each month one major risk is reviewed by Senior Management and the Board. They include:

Safety Risks (employee safety, fire prevention and plant operation);
Horticultural Risks (climatic, disease, water management, pollination and quality)
Food Safety Risks (product quality, utilities supply, major equipment failure); and
Financial Risks (currency, customer concentration and market pricing)

External Memberships

We support the global efforts towards achieving the United Nations Sustainable Development Goals. We use the SDGs as a guide for the programs and initiatives we plan in support of our future sustainability reporting. [9]

We uphold the standards established by several industry groups to which we belong. We are a members and active participants of the following bodies:

Almond Board of Australia
Agri Business Australia
Horticulture Innovation Australia
Signatory of the National Packaging Industry Covenant
Australian Industry Group
Victorian Chamber of Commerce
National Irrigators Council
International Fruit and Nut Council
SEDEX [10]

" We have a structured risk management process in place throughout all parts of the business.

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SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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continued Our Sustainability Impacts

Materiality

Our assessment of material issues has been progressively evolving since our first sustainability report in 2017. Understanding the issues that matter most to our business and stakeholders and where we have the most impact allows us to focus our effort on the strategic objectives that drive the most value for our stakeholders.

Our Materiality Assessment Process

We followed the GRI Reporting Principles of sustainability context, materiality, completeness and stakeholder inclusiveness to identify, prioritise and validate our material issues. [1]

We engaged internally to help us identify issues of importance, and we plan to engage more directly with external stakeholders to develop our future reports.

We draw on the definition of materiality from the GRI – the world’s most widely-used sustainability reporting standards. Material issues are the topics that reflect our significant economic, environmental, and social impacts across the short, medium and long term; and that could substantively influence the assessments and decisions of our stakeholders.

To define topic boundaries, we considered where the impacts occur, and which stakeholders are most affected and where relevant we place our performance in the context of broader sustainability trends. [2 ]

Our reporting focusses on the seven issues we identified as most material. We actively manage all our material issues, including those we believe may be more significant for us in the future.

We took a three-step approach to identifying our material issues

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STEP 1 STEP 2
Issue Identification Stakeholder Interviews
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Developed a broad set of potentially material Gathered perspectives and insights across issues through: operations, management, executive business • Internal strategic objectives & functions and the Board. We regularly and risk assessments proactively engage with key external stakeholders and their perspectives were deemed to be reflected • Peer and industry benchmarking in internal interviews. We analysed the interview • Review of industry specific global standards data, combined with the results of the earlier • Media search results on industry and identification research to develop a set of material business specific content issues for validation and prioritisation.

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STEP 3 Material Issue Prioritisation & Validation Material issues were considered by Select Harvests’ Executive Management and prioritised by considering the relevance to stakeholders including reviewing the potential impact to the environment, economy, society and the business.

This process was facilitated by the project steering committee which consisted of the Managing Director, the General Manager of People, Safety & Sustainability 3 and the senior executive team. The outcome was a list of validated material issues that represent the greatest risks and opportunities for the organisation.

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Environmental Impact
Select Harvests Material Topics 2019 Occupational Health + Water Management
& Safety (OHS) & Stewardship
The following matrix shows 16 material
issues we identified through an Climate Change Financial Performance
& Business Strategy
assessment process through which we engaged stakeholders across the business. We a diverse range of Supply Chain ManagementWaste Management & Recycling Labour Practices,Human Rights, Ethics& Integrity
actively manage all these issues and
through this assessment we identified a Bee & Insect Protection
set of seven issues that are highest Food Safety, Product Labeling
priority for us. Community Partnerships, Health & Nutrition Benefits & Marketing & Quality
Consistent with the 2017 report, Support & Engagement Talent Attraction & Retention
stakeholders remained focused on how Corporate
we monitor and improve the efficiency Governance &
Legislative
of water and other key resources, how Innovation Compliance
we manage environmental impacts, and
keep our workforce healthy and safe. Wildlife & Pest Management
Issues that have emerged as a priority in
this reporting period are the impacts of
climate change on the business and
how we manage the inherent risks of
human rights, labour practices and the Monitor & Ongoing
broader ethics and integrity Manage Importance Priority
throughout our supply chain and
operations. 4 Significance of Impact Profit People Planet Materiality Thresholds
sr
e
dlo
h
e
k
atS o
t e
c
n
atr
o
p
Im
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Priority Topics

This report will primarily focus on the priority topics as follows: [5]

Water Management and Financial Performance and Stewardship Business Strategy

The effective management of existing processes and systems to ensure the efficient use and consistent supply of water across all sites.

Sustainable organisational growth strategy that prioritises our almond base optimisation, brand, geographic and category expansion, enduring customer relations and the efficient use of resources to maximise corporate value for our stakeholders.

Stakeholders impacted: Shareholders, customers and consumers, Government, industry, media and employee associations and communities and special interest groups.

Stakeholders impacted:

Shareholders, employees, suppliers and business partners, Government, customers and consumers, other financial stakeholders.

Impact occurs: At water sources above and below the surface at our current operations, future developments and local communities.

Impact occurs: To our local communities, suppliers, employees, customers and consumers of our products in Australia and globally.

GRI Link: GRI 103, GRI 303

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GRI Link: GRI 103, GRI 201

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Food Safety, Product Labelling and Quality

Traceability, quality and labelling. It goes beyond product safety and compliance, linking to being a leader in the supply of 'Better for You' plant-based foods:

Climate Change

Recognising the impacts of climate change on our business in our strategic and operational planning.

Stakeholders impacted: Stakeholders impacted: Shareholders, suppliers and Shareholders, employees, business partners, customers suppliers and business partners, and consumers, Government and customers and consumers, industry. industry, media and employee Impact occurs: At our current associations and communities and special interest groups.

Impact occurs: At our current operations and to downstream consumers of our products.

Impact occurs: At our current operations & future developments. GRI Link: GRI 103

GRI Link: GRI 103, GRI 416, GRI 417

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Labour Practices, Human Rights, Anti-Corruption, Ethics and Integrity

Ensuring that the organisation, our supply chain & customers, engage in fair & ethical practices across all operations and geographies.

Stakeholders impacted: Shareholders, employees, suppliers and business partners, customers and consumers, other financial stakeholders, Government, media and employee associations and Communities and special interest groups.

Impact occurs: In our supply chain, operations and local communities.

GRI Link: GRI 103, GRI 205

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Occupational Health and Safety (OHS)

Select Harvests' policies and management systems to ensure the workplace health and safety of employees and contractors.

Stakeholders impacted: Employees, suppliers and business partners, Government and media and employee associations.

Impact occurs: To our employees, contractors, seasonal workers at our current operations and future developments.

GRI Link: GRI 103, GRI 403

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Environmental Impact

Environmental management systems to effectively identify and manage our environmental impact include carbon emissions, change of land use and chemical management.

Stakeholders impacted: Shareholders, employees, suppliers and business partners, customers and consumers, Government, industry, media and employee associations and communities and special interest groups.

Impact occurs: In water systems, orchards, neighbouring communities and farms and future operations.

GRI Link: GRI 103, GRI 307-1, GRI 305

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Water Management & Stewardship Environmental Impact Occupational Health and Safety (OHS) Financial Performance and Business Strategy Climate Change Labour Practices, Human Rights, Anti-Corruption, Ethics and Integrity Food Safety, Product Labelling and Quality

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Engaging Stakeholders

Our business activities and decisions impact a wide variety of stakeholders both directly and indirectly. Knowing this, we proactively engage our stakeholders through a range of strategies and communication channels which have been developed and refined over

many years of feedback, changing regulatory environments and business development. When assessing which stakeholders to engage, we consider the following criteria:

Proximity – people who live in or close to our growing and operating sites
Dependency – people who depend on us and on whom we depend for our business success
Responsibility – people and organisations we are linked to through laws or contracts [1]

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Stakeholder [2] Stakeholder Groups [3] Areas of Interest [4] Response to Key Areas of Engagement Strategies
Interest [5] (frequency) [6]
Shareholders Institutional and Retail • Return on investment • 2020 Annual Report * • ASX announcements (ad hoc)
shareholders • Strategy for long • Our approach to • Annual General Meeting
term growth sustainability (Pg. 6) • Annual Report and interim
• Supply chain management • Labour practices, human and quarterly financial
and security rights, anti-corruption, reports (annual & bi-annual)
• Development of new ethics and integrity (Pg. 27-28) • Regular investor meeting
products and new markets • Expand strategically (Pg. 8) and updates (ad hoc)
• Environmental, Social and • Investor relations, roadshows
corporate governance and site visits (ad hoc)
• Shareholder written
communications (ad
hoc) and website
Employees All direct employees • OHS and wellbeing • 2020 Annual Report * • Executive Team & Board
of Select Harvests and • Employee benefits • Occupational health and presentations (monthly)
our contractors • Overall company safety (OHS) (Pg. 24-26) • Team briefing updates (weekly)
performance • Financial performance • 1:1 Managers & employee
• Training and career & business discussions (ad hoc)
development (e.g. building management (Pg. 31) • Safety committee
horticulture capacity meetings (monthly)
in irrigation, agronomy • Emails and written
awareness, OH&S and updates (weekly)
management training).
• Training programs
• Employee performance (annual, bi-annual & ad hoc)
Suppliers Suppliers of Goods & • Processing and • 2020 Annual Report * • Regular meetings and
& business Services including raw Manufacturing • Occupational health and updates (ad hoc)
partners materials, packaging, • Plant Equipment safety (OHS) (Pg. 24-26) • Audits (ad hoc)
and consulting and Engineering • Financial performance & • Supply contracts (ad hoc)
services • Orchard development business management (Pg. 31)
and management • Labour practices, human
• OHS & Wellbeing rights, anti-corruption,
• Overall company ethics and integrity (Pg. 27-28)
performance • Environmental impact (Pg. 19-21)
• Training and career
development
• Ethical sourcing policies
Customers and All Select Harvests • Compliance with • Food safety, product • Communication from
consumers customers and requirements and labelling and quality (Pg. 29) Executive Team (ad hoc)
consumers specifications • Customer relations and
• Food safety and quality business development (weekly)
• Customer questionnaires • Brand communications (ad hoc)
and relationships • Customer audits
throughout the year
• Supply contracts (ad hoc)
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Stakeholder [2] Stakeholder Groups [3] Areas of Interest [4] Response to Key Areas of Engagement Strategies
Interest [5] (frequency) [6]
Other financial • Banks • Select Harvests financial • 2020 Annual Report * • ASX announcements (ad hoc)
stakeholders • Analysts performance • Financial performance & • Annual General Meeting (annual)
• Ratings agencies • Strategy to 2025 and business management (Pg. 31) • Annual Report and interim
• Corporate our business model • Our approach to and quarterly financial
governance groups • Board membership and sustainability (Pg. 6) reports (annual & bi-annual)
• Auditors governance structure • Governance structure (Pg. 8) • Regular meeting & updates (ad hoc)
• Environmental sustainability • External memberships (Pg. 9) • Investor roadshows
(e.g. water security, energy • Labour practices, human and site visits (ad hoc)
security, bees & pollination)
rights, anti-corruption, • Select Harvests website (ad hoc)
and impact on costs
• Ethical sourcing policies ethics and integrity (Pg. 27-28) • Contracts (ad hoc)
Government • Local, state and • Environmental • Environmental impact (Pg. 19-21) • Written communication (ad hoc)
federal government compliance (e.g. EPA) • Occupational health and • Meetings and briefings (ad hoc)
representatives • Safety management safety (OHS) (Pg. 24-26) • Statutory reporting (monthly,
• Regulators and & performance • Food safety, product quarterly and annually)
other authorities • Food safety labelling and quality (Pg. 29)
Industry • Industry associations • Domestic and export • 2020 Annual Report * • Representation on
• Other food market development • Expand strategically (Pg. 8) executive and working
businesses • Economic outcomes for group committees (ad hoc)
• External memberships (Pg. 9)
the overall industry • Membership of international,
• Publicly available
• Regulation – existing information national and regional industry
and potential groups (refer External memberships)
• Select Harvests performance
compared to our peers
• Market positioning of
the industry relative to
other food sources
• Collaborate to address
complex industry
challenges
Media and • Print, broadcast and • Overall company • 2020 Annual Report • Media releases (ad hoc)
employee online journalists performance – financial, • Financial performance • Select Harvests website (ad hoc)
associations and editors forward strategy, & business
• Briefings and interviews (ad hoc)
• Australian Workers governance & new management (Pg. 31)
• National Union of Union (AWU) • Local operational impactsmarket development • Our approach to sustainability (Pg. 6) • Face-to-face interactions (ad hoc)
Workers (NUW) • Industrial relations • Occupational health and
• Collective bargaining safety (OHS) (Pg. 24-26)
• Employee representation
Communities • Local towns and • Local environmental • Environmental • Local media (ad hoc)
and special communities impacts (e.g. noise, dust) impact (Pg. 19-21) • Community meetings
interest groups where Select • Contribution to • Financial performance and briefings (ad hoc)
Harvests operates communities & business • Partnerships and sponsorships
• Indigenous heritage management (Pg. 31) (annual & ad hoc)
and land management • Climate change (Pg. 22) • Dialogue with grant
• Climate change recipients (ad hoc)
• Donations (ad hoc)
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* Annual Reports: selectharvests.com.au/annual-reports/

12 SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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Planet

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Water Management & Stewardship

Effective water management and stewardship is critical to Select Harvests. Water is one of our single biggest inputs and a shared resource, helping to sustain many communities and ecosystems within the Murray-Darling Basin. [1] As such we seek to use water as efficiently as possible, exploring avenues to reduce water use, improve productivity whilst maintaining and improving yields. [2]

We actively engage with all relevant water authorities, community groups, industry bodies, environmental organisations and broader government authorities to address water related impacts and promote sustainable use of water, now and into the future. [3] During this year no significant water impacts were sustained. [4]

A Responsible and Efficient Water User

To manage water effectively on our farms, we measure, and record volumes extracted from each water source through authority pattern-approved water meters. The recorded water meter readings are either directly reported to the relevant Water Authority via telemetry, or readings are manually recorded into Government online registers via a selfreporting process.

All extracted use is monitored by the relevant water authority or government body to ensure that our extracted use is compliant with set licensing conditions. This ensures that water extracted is within the sustainable levels of each water source. [5] In FY2020, we were fully compliant with our licensing conditions. [6]

Water applied to farms is emitted through a drip irrigation system with a calculated extraction rate measured in millimetres per hour. Soils are surveyed to determine soil types and textures, potential rootzone depths, and the information also enables a determination of the soil moisture holding capacity of the various soil layers.

The design of the irrigation system closely matches the soils and with the calculated irrigation application rate, we are able to calculate total hours and volume of irrigation required to fill the soil profile without causing drainage past the rootzone. [7]

Monitoring our impact

We use various methods to identify water related impacts. The first is via a comprehensive soil survey. The soil survey will identify any existing water logging issues and soil types with impervious layers that are susceptible to drainage problems. These identified areas will either be excluded from development or onfarm drainage will be installed to divert excess water to storages on farm to be recirculated in the irrigation system.

We measure any water impacts through groundwater monitoring bores, soil capacitance probes and trunk density monitoring systems. Field staff also conduct regular onsite inspections to identify any affected areas. [9] External consultants may be engaged to identify water impacted areas using aerial photography and on-site verification.

Native woodlots are developed to assist in removing the presence of water logging, provide a natural habitat for local wildlife and mitigate against soil erosion through rootzone stabilisation.

We plant native trees that can tolerate moderate levels of water logging and salinity in affected areas. [10]

Our water use

Water is withdrawn from the below water sources for consumption across our 15 orchards and production facilities.

To manage water effectively on our farms, we measure and record volumes extracted from each water source.

Our orchards operate in several irrigation regions within the Murray Darling Basin and have a mix of owned permanent water entitlements, medium term water leases and allocation water purchased in the spot market. We use a mix of ground and river water which is all classified as freshwater. [11]

If water is discharged offsite it is compliant with EPA licensing conditions. [12] All onsite wastewater treatment systems are designed and constructed to EPA standards. [13]

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State Water Source [14]
NSW • Lachlan River
• Lower Lachlan Deep
Aquifer System
• Murrumbidgee Regulated River
• Lower Murrumbidgee
Deep Aquifer System
• NSW Murray Regulated River
VIC • VIC River Murray
• Goulburn System
• Yarra Valley Water
SA • SA River Murray
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The application of water is also closely monitored using soil capacitance probes that measure moisture content of the soil at various depths and soil infiltration rates within the crop rootzone. We use direct plant sensing technology to assist in determining when to irrigate through closely monitoring micro changes in trunk diameter during the day and night. [8]

In our processing sites, we achieve water efficiency through sequencing runs of same product to minimize machine washes, whilst maintain food safety standards.

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Using Technology to Improve Water Efficiency

Amaroo Farm

Soil capacitance technology

Plant sensing technology

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continued Water Management & Stewardship

Looking ahead

Being a leader in water use efficiency is a high priority for the company and each season a water strategy is developed by the Water Portfolio Manager in consultation with the Water Committee [1] and approved by the Executive Team and the Board.

Select Harvests have made several investments across the business to improve water use efficiency:

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Installing state of the art irrigation technology and systems to monitor and enable the efficient use of water (i.e. soil moisture probes & trunk density technology)

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Dedicated resources on each farm to optimise water use which includes a full-time irrigation manager who has the responsibility of reviewing and applying the irrigation and fertigation application.

Several innovative technology solutions have been deployed to improve orchard management:

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Soil moisture Plant-based water Pressure bomb
monitoring probes stress monitoring leaf analysis
sensors (i.e. Phytech)
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7 N Nitrogen Vegetative index density mapping imagery collected by drones that identifies differing tree health

The project aims to return a more natural wetting and drying cycle covering approximately 14,000 hectares of high ecological-value Murray River floodplain. This will be achieved through the construction of new infrastructure and utilisation of existing infrastructure, including a Select Harvests main pump station that feeds Narcooyia Creek linked to the Belsar-Yungera Floodplain Management Project.

The Belsar-Yungera project intends to restore and enhance the habitat links between the river and Narcooyia Creek enabling improved movement of native fish species. It also intends to improve the wetland and habitat that are home for species like the Growling Grass Frog, Lignum shrubland, carpet pythons, bats and waterbirds.

Select Harvests is a key contributor on the Stakeholder Advisory Committee - Central of the Victorian Murray Floodplain Restoration Project (VMFRP). This project is being implemented as part of Victoria’s obligations under the Murray Darling Basin Plan in partnership with Lower Murray, Goulburn Murray Water, Mallee CMA, North Central CMA, Parks Victoria and the Department of Environment, Land, Water and Planning (DEWLP).

The project is scheduled to be completed by 2024 with preliminary site investigations and approvals already underway.

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Trees are drip fed into the
root zone .
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Environmental Impact

At Select Harvests we are the custodians of the environment within the communities that we operate. We take this responsibility seriously and strive to achieve our business objectives alongside the effective management of our environmental impact. The areas of focus are; carbon and energy management, change of land use and chemical management.

Carbon & Energy Management

We operate in an emissions intensive industry, with energy consumption one of the most significant inputs into growing and processing almonds. [2] Our farming operations are responsible for the majority of our carbon footprint, this prompted us to perform an assessment to help us identify and quantify our emission profile at each of our orchards. [3] We are using the results of this assessment to inform our emissions reduction strategy at an orchard level. [4] This has resulted in more awareness of our emission profile and has encouraged us to consult broadly with industry and form partnerships with well recognised research bodies focused on improving soil and farming efficiencies. [5]

Our greatest energy consumption is through:

Water pumping infrastructure
Orchard machinery
Packaging and processing machinery

We have aimed to reduce energy use and carbon emissons in line with stakeholder expectations and our own operational targets to reduce input costs along with our impact on the environment. [6]

Our electricity consumption

Based on scope 1, 2 & 3 emission in calendar year 2015 (CAL2015), SHV’s carbon emissions were 76.66Mt CO2-e, with electricity consumption representing 56.04Mt CO2-e (or 53%) of the total footprint. [7] Our focus since the 2015 base year has been to improve the mix of renewables when sourcing electricity with the aim to reduce our overall footprint through addressing our most material contribution.

In FY2020 we sourced 51% of our net electricity consumption from renewables (excluding grid mix renewables) through self-generation and targeted Wind Power Purchase Agreements (PPAs). As a result, our total scope 2 emissions have reduced from 28.48Mt CO2-e in FY2019 to 20.64Mt CO2-e in FY2020, which represents a 27.5% decrease. A breakdown is provided in the following tables:

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Description Utilisation
(GWh)
Total Power Consumed 55.5
Total Power Generated 20.8
Total Power Exported 5.9
Power Purchased 13.1
through Wind PPAs
Electricity Utilisation Scope 2
Purchase (GWh) Emissions
from the (Mt CO2-e) [ † ‡]
Grid
Total 40.6 20.64 [8]
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Our progress

In FY2020 the Hull-to-Energy (H2E) cogeneration facility located at Carina West continued to provide energy to the Carina West operations facility and the neighbouring Carina orchard, with excess renewable energy supplied into the local grid. The H2E facility has delivered an approximate 23% reduction in scope 2 emissions.

Looking ahead

We are committed to continuing to transition our electricity consumption mix, to increase our volume of renewable electricity by exploring PPAs, H2E efficiency upgrades and Greenpower.

Carbon Management

We are exploring the possibility of recalculating our organisation wide carbon emission footprint to capture our current impact on the environment and to help develop emissions intensity and reduction targets for our future emissions.

In excess of 26,000Mt of H2E compost was spread throughout our orchards.

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Compost rows at Carina West.
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All methods Global Warming Potentials from the NGER Determination as applicable for the relevant reporting year: legislation.gov.au/Details/F2019C00553/Download [ 9]
Gases included in the Scope 2 GHG emission calculation include CO2 [10]

‡ The approach for calculating emissions includes those under operational control [11] 2 GRI 103-1-a 3 GRI 103-3a-i 4 GRI 103-2-a 5 GRI 103-3a-ii 9 GRI 305-2-e,g 10 GRI 305-2-c 11 GRI 305-2-f

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CASE STUDY

H2E Co-Generation Power Station

Power Station

The co-generation power station is an integral link, bringing together several sustainability initiatives through waste recycling, compost generation as well as carbon neutral power.

The biomass power station produced its first power in June 2018, with ongoing commissioning and upgrade works continuing until December 2019.

Almond hull waste from production is transported to the station and burnt at high temperature, producing 3.3MWe of power. A bag filter captures and removes the high levels of fine ash produced from the combustion of almond hulls.

The power station has also created further employment opportunities at Select Harvests for the local community, with additional roles dedicated to the operation of this facility.

Waste Recycling

Waste skins and organic matter from the Parboil facility are recovered and provide additional organic matter for compost production. This avoids up to 300tpa of organic matter being sent to landfill.

Composting

The waste ash generated by the co-generation plant is used, along with waste skins and other organic matter, to create compost to recycle and return potassium to the Select Harvests orchards. The production of our own high potassium ash gives Select Harvests a strong competitive advantage over other compost producers as well as the ability to produce at a cost significantly below that of the market. This allows greater areas of Select Harvests orchards to be serviced, with reduction in external fertigation and improved soil quality across a larger area.

Electricity

Dan Wilson

OPERATIONS MANAGER, CARINA WEST

“The filter removes all emissions visibility from the ground. It’s a very clean process.”

The Carina West Processing Facility is linked to the local grid, allowing export of excess power and import of power if the power station is offline. This allows Select Harvests to provide low carbon energy to the main grid.

The cogeneration power station is an integral link, bringing together several sustainability initiatives through waste recycling, compost generation as wells carbon neutral power.

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CASE STUDY

Carbon Based Fertilizer Sustainable Almond Production

Select Harvests is using a waste product from its almond production to replace expensive chemical fertilisers in its orchards, increasing soil nutrient balance and carbon level and reducing our carbon footprint.

Upul Gunawardena TECHNICAL OFFICER, CARINA WEST

“We have created a closed loop by using the waste hull ash from the CoGen plant, which is high in potassium, as an important ingredient to our fertiliser program. All natural, recycled and low cost, our fertiliser program is the only project of it's kind in the almond industry, world wide.”

More than 70% of the almond fruit we harvest is hull (the hard outer shell), which is inedible for humans and when stored can become a fire risk. While some of this waste has traditionally been sold as cattle feed, demand for this varies considerably and we wanted to find a more sustainable solution.

Co-Gen Power Plant

In 2018, commissioning was completed on our cogeneration plant to power our operations by burning the hull waste. We quickly realised that there could be other benefits as well - a by-product of the co-generation process is considerable quantities of ash, which contains a high percentage of potassium as well as other nutrients.

High Grade Ash

We developed a process to convert the ash into a highgrade carbon based fertiliser that could be used on our almond orchards. Working with our South Australia partners, Rash Engineering, our technical team developed a method to deliver this fertiliser direct to the rootzone of the almond trees.

Research findings have confirmed that the application of soil carbon significantly improve the soil health, which in turn improves the almond quality and yield, reduces the aging process of the crop and suppresses various soil borne disease organisms.

Key benefits include:

(a) Replacement of 25-30% of expensive imported chemical fertilisers with recycled nutrients

(b) Moderates soil structure, through retention of nutrients, soil moisture & temperature

(d) Increases soil carbon level

(f) Significant reduction in the carbon footprint of almond production

(g) Improved soil health, root biology & crop health

(h) Improved Select Harvests long term asset value

Our work to date has demonstrated that carbon-based fertiliser is able to be used at scale in our orchards and has the potential to recycle most of our hull waste. At present it has enabled us to significantly improve soil health, root biology and crop health. At the same time, it has been cost-neutral – a real win-win for our business and the environment!

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continued Environmental Impact

Change of Land Use

We own several agricultural properties where we have converted land to almond orchards and we expect to continue to acquire properties as opportunities arise. Our acquisition strategy for new irrigation land in the Murray-Darling Basin is integral for the long-term viability of the business and is focused on identifying greenfield development opportunities with secure water access, appropriate soil, climate and located near a stable workforce enabling a profitable enterprise and generating a positive cash flow. [1]

Our decision-making process for new irrigation land or Greenfield Almond properties in the Murray–Darling Basin considers a range of factors, with risk mitigation forming each criterion. [2] The table below shows our initial desktop review. [3]

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Desktop Process [4] Process Description
Water Security & Deliverability risk assessment A review of water security & deliverability risk [†] is the first decision made regarding any
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Water Security & Deliverability risk assessment	A review of water security& deliverability risk†*is the frst decision made regarding any
	new irrigation of greenfeld almond developments. Both elements are considered critical
	decision-makingcriteria.
Project Budget and Proftability Modelling	The budget looks at all associated costs with the establishment of the development
	including, landpurchase,planning, infrastructure and development costs.

Once we have completed a water security and deliverability risk assessment and confirmed project viability, we undertake a comprehensive due diligence process to further understand the social, environmental and economic impact of the investment. See the table below: [5]

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Due Diligence Process [6] Process Description
Climate assessment and review A review is undertaken to determine climate suitability including frost and flood risk of
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Climate assessment and review	A review is undertaken to determine climate suitability including frost and food risk of
	any potential development
Planning	A review of relevant planning schemes is undertaken to determine any applicable
	planningmatters
Aboriginal cultural heritage	A review of the property, pump station locations and mainline routes for Aboriginal
	cultural heritage is undertaken. Detailed Aboriginal Cultural Heritage plans may also be
	completed at this stage subject to the outcome of the review.
Hydrogeological study	A Hydrogeological study is undertaken to confrm the suitability of the site for almond
	production and identify any potential impacts an irrigation or greenfeld development
	mayhave on regional water systems.
Soils assessment and review	A detailed soils analysis of a property is undertaken, which involves several processes
	including an EM38 survey and soil pit review and analysis. The review determines if the
	property is suitable to produce almonds and determines any actions that would need to
	be undertaken to maximize thepotential.
Vegetation and Ecological assessment	A vegetation and ecological assessment are completed on the property and any mainline
	routes to determine the signifcance of onsite vegetation and the ecological value of the
	property.

Our progress

Since 2012 we have applied the above decision-making process to 29 properties and following a rigorous due diligence process, 24% of these properties were developed. [7]

Looking ahead

We continue with this comprehensive evaluation for every greenfield opportunity acknowledging the potential risks outlined above. We are committed to expanding our operations sustainably and will continue to apply our decision-making process with rigor and integrity.

Water security is the ability to secure adequate and reliable water for our orchards

† Deliverability is being able to get the secured water onto our orchards at the required time 1 GRI 103-1-a 2 GRI 103-2-a 3 GRI 103-2-c-vii 4 GRI 103-3-a-i 5 GRI 103-2-c-vii

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Chemical Management

The use of chemicals are essential in our horticultural and processing operations to ensure we maintain sanitisation, protect our crops from various pests and diseases, maximise yields and prolong the tree life. [8]

A responsible user of chemicals

We are aware of the impact that our chemicals could have on the neighbouring farms, bee populations, native vegetation, wildlife, waterways and our communities. [9]

To safeguard our chemical use we manage chemical spraying based on wind conditions to ensure that spray drift onto other crops does not occur and that we are using our chemicals efficiently. To protect bees we have a strict protocol of not spraying herbicides or insecticides whilst bees are foraging. Bees are a critical element to our growing process, therefore regular consultation with bee keepers occurs prior to spraying and when new chemical products are being considered. [10]

Monitoring our impact

Our Safety Management System contains a Chemical Safety component which outlines the expecations of how chemicals are to be handled, used, transported and stored at all Select Harvests locations. All our employees responsbile for mixing and handling are trained and certified under the AusChem program at the time of induction. Chemical usage and spray records are kept for every spray event and chemicals are stored and bunded according to regulatory requirements. [11] In our orchards the annual yield results are the ultimate gauge of effective chemical management and a post harvest review is undertaken to determine any areas for improvement. [12]

Our progress

We pride ourselves on managing our facilities in line with all relevant legislation, as well as the mandate of our local communities within which we operate. In FY2020, we have not received any fines or non-monetary sanctions relating to our interaction with the environment.

We did receive a Pollution Abatement Notice (PAN) from the Environmental Protection Agency (EPA) requesting that controls and procedures be put in place to ensure that effective monitoring of air, land and surface water discharge for the H2E facility occurs in line with our licensing agreement. This was complied with and reassessed by the EPA and we were found to not be in breach of any EPA rules or regulations. [13]

Our facilities and orchards have Hazard Analysis and Critical Control Point (HACCP) accreditation and are audited annually against methodology to ensure compliance.

Looking ahead

We commenced a project in 2020 that explores an integrated pest management system, which considers a more holistic view of how we manage pests and is aimed at reducing the use of chemicals.

To protect bees we have a strict protocol not to spray herbicides or insecticides whilst bees are foraging.

We currently have two collaborative trials in progress with the CSIRO (Adelaide) and Ag Victoria with the objectives of the trials to;

Develop better waste management and waste recycling strategies in almond growing
Improve nitrogen management strategies in almond growing.

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We use over 30,000 bee hives
to pollinate our crops.
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Climate Change

We continue to recognise the risks, challenges and opportunities that climate change is likely to present for our business. Operating in the agriculture sector primarily, we are both a contributor to, and affected by, the physical and transitional impacts of climate change. [1] We accept the science of climate change and the Paris Agreement which commits to hold the increase in the global average temperature to well below 2°C, relative to the pre-industrial period. [2]

While the issue of climate change is worldwide, the impact is felt by people in the communities where we live and work in the form of severe weather (i.e. frost or drought), rising temperatures, water supply shortages, water demand increases and cost of water - all of which affect our operations, employees, communities and human health. [3]

Our progress

We aim to manage these risks through:

Increasing the levels of carbon in the soil through compost applications for greater irrigation and nutrient efficiency.
Developing new orchards with appropriate irrigation system capacity to meet greater peak demands.
Investing heavily in all aspects of water management (refer to water management & stewardship)
Utilising hybrid vigour rootstock genetics that are more efficient and productive.
Exploring geographic diversification of orchards to reduce exposure to climate events, issues around water availability and water deliverability.
Diversifying our water portfolio to increase exposure to a greater portion of MurrayDarling Basin inflows and associated allocations.
Installing frost fans to mitigate frost impacts.
Actively engaging with the bee industry and having a remuneration structure that incentivises quality bee hives to enable a lower hive stocking rate. [4]

Looking ahead

We are looking to explore the financial implications of climate change on the business in future periods as our awareness and maturity of understanding develops on this topic. [5] As a step in this process we are reviewing our governance, strategy and risk management objectives that will support our future disclosure of the impacts of climate change.

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Minimising the impact of frost through the
installation of frost fans which protect the
crop during the critical flowering and nut
development stage of the almond.
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4 GRI 103-2-a

People

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Occupational Health & Safety (OHS)

Occupational Health & Safety

The agriculture and manufacturing industries present unique risks which must be carefully managed. Inherent risks include hazards such as operating plant and equipment, chemicals, noise, dust, climate exposure, wildlife and remote and isolated work, manual handling, slips, trips and falls. [1]

Our zero harm OH&S and wellbeing strategy objective is to prevent injuries before they occur and improve our safety performance by 15% each year. [2] To meet our objectives, we focus on five priority areas: compliance; a safety culture; education; process improvement and performance measurement; and employee wellness.

Occupational Health and Safety is reported at:

daily facility toolbox meeting
weekly Executive meeting
monthly Executive meetings
monthly Board meetings

Safety culture and management

Our Safety Management System (SMS) incorporates our processes to manage safety effectively. These include identifying hazards, standard operating procedures and processes to assess and manage risk. The SMS applies across the full scope of our operations and people. [3] To complement our SMS, we implemented a comprehensive Safety Manual in 2018, outlining our safety strategy and policy, roles and responsibilities, key risks, reporting mechanisms, legislation and other standards.

We maintain a strong focus on supervision and our safety onboarding program is well established, particularly for casual and seasonal workers. We are implementing compliance management technology to support real time reporting of hazards and risk assessments, as well as ensuring training requirements are met and certifications are current.

We encourage active participation in our SMS, running regular toolbox safety meetings where we discuss key incidents and near misses. These meetings provide an opportunity for our people to raise concerns, discuss issues and call out examples of good practice. All sites have an active Occupational Health and Safety Committee in place.

Each key area of the business has a health and safety representative (HSR) elected by peers to represent them in quarterly discussions with management on occupational health and safety matters. Training on their roles and responsibilities is undertaken when HSRs are appointed. HSRs do not have decision making authority but are able to go through the delegated authority process as required. [4]

We provide training for our people to ensure they are equipped with the knowledge and skills to carry out their roles safely. Training includes on-site safety inductions, standard operating procedure training and toolbox meetings on topical areas and legislative changes. We run skill accreditation for machine operation in production areas and sighted competency assessments by a trained instructor for farm operations. During peak harvest periods translators are provided for migrant labour through the Seasonal Worker Program. [5]

Risk and hazard management

Identifying and mitigating hazards and risks is a core element of our Safety Management System. Processes in place to systematically identify and assess work related hazards include safety walks, inspections, audits, review of operating procedures and incident investigations. All risk assessments are conducted with Safety Officers or HR representatives, [6] using a severity vs likelihood matrix. We apply the hierarchy of controls in our approach to hazards and risk mitigation. [7]

We measure the effectiveness of our processes through reviews of hazard reports, number of incidents and further hazards identified once management plans are put in place. Any gaps identified are used to drive improvements in our processes. [8]

All employees have access to hazard identification forms and can submit these to supervisors, safety officers or HR representatives. We encourage our people to speak up if they notice a hazard and our code of conduct, equal opportunity and discrimination policies enable employees to remove themselves from hazardous situations if needed while providing protection from reprisal. [9]

Incident reporting and analysis is key to our ability to continuously improve our safety practices. By recording and investigating incidents and ‘near misses’ we can establish the root causes of the incidents, communicate these learnings and implement necessary responses across all of our sites.

In 2020 our OH&S system processes and reporting was moved to the ManGo Information Management System.

Health and wellbeing

We strive to create a workplace culture in which our people can bring their best selves to work. All employees, contractors and their immediate family members have access to our Employee Assistance Program (EAP), a confidential service that supports, guides and counsels people to manage their mental health.

Workers have access to personal and carer’s leave and leave without pay in order to access non work-related medical services. We fund flu vaccinations for all employees. [10]

We participate in the Virgin Pulse Global Challenge, as a key wellbeing initiative that all our employees can participate in, across our geographically dispersed business. It supports our employees to build healthy habits around exercise, nutrition, maintaining work life balance and sleep. It is also a way of promoting team work and connectedness across the business. [11]

To gauge the success of our approach to promoting safety and mental health we monitor incidents and conduct an annual culture survey. Safety culture is consistently the highest rated section in the survey with FY2020 returning a strong result of 74%. We monitor the level of participation in health and safety initiatives and surveys, which consistently indicate strong employee interest and engagement. [12]

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Safety Performance

This year our total recordable incidents reduced from 88 to 68, a 23% decrease. We experienced a 50% increase in lost time injuries (LTI). This improvement was driven by significant increase in focus and commitment to working towards a Zero Harm workplace. We were pleased to have exceeded our overall target of 15% improvement for FY2020.

There were no work-related fatalities and one high consequence work-related injury. The most common types of injury sustained were muscle and tendon injuries, wounds and lacerations. [13] These were mainly caused by slips, trips, falls. We are working to address this by further promoting a Zero Harm culture as well as regular training and education programs focused on identifying potential hazard before they cause harm.

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FY2019 FY2020 Variance FY2019 vs FY2020
Total Recordable Incidents Number 88 68 -23%
Frequency Rate 58.2 53 -9%
Hazards Number 631 627 -0.6%
Medical Treatment Injuries Number 19 13 -32%
Frequency Rate 20.9 14 -35%
Lost Time Injuries Severity Days Lost 404 374 -8%
Severity Rate 11.2 9 -20%
Lost Time Injuries Number 7 14 +50%
Frequency Rate 7.7 16 +60%
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Our workforce

We employ over 550 full time equivalent employees including executive, permanent, contractor and seasonal (casual and labour agency hire) personnel throughout regional and metropolitan Australia. [14] 53% of these employees are covered by an Enterprise Bargaining Agreement (EBA). [15] In any given year, around 20-30% of the SHV workforce is casual, either employed by SHV directly, or through labour hire agencies, including through the government Seasonal Worker Scheme. The casual work arrangements apply both to the agricultural activities, which are seasonal. [16]

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Employment Type [17 18] Age Region [19]
88 1 81 51 88 37 156 12 8
271 7 120 89 190 113 272 47 73
Permanent Permanent Casual <30 Years 30-50 Years >50 Years VIC NSW SA
Full Time Part Time
176
69% 392 31%
Male Employees Female Employees
Total
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The figures represented above have been extracted from the Women Gender Equality Agency (WGEA) Report for the 2019/20 period and represents the workforce as at 31 March 2020.

Looking ahead

We value the importance of the safety of our people above all else at Select Harvests and despite measurable improvements in our safety culture, we recognise that there is still more to be done. We are aiming to;

Perform an OH&S compliance review across the business to ensure we comply with all national and state legislatives requirements.
We plan to fully implement our safety and environment modules of the compliance management system (ManGO) to enable real time reporting of incidents, hazards and risk assessments, drive efficiencies through workflows and enable better reporting and analysis.
We will be investigating the roll out a safety behavioural program as part of the next phase towards ZERO HARM.
Focus on more targeted wellbeing initiatives, including personal health and mental wellness.

13 GRI 403-9-b

14 GRI 102-7-a-i 15 GRI 102-41-a 16 GRI 102-8-d-e 17 GRI 102-8-a

19 GRI 102-8-b

18 GRI 102-8-c

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

Labour Practices, Human Rights, Anti-Corruption, Ethics & Integrity

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We have a complex global supply chain with a long-standing commitment to a large number of domestic and international suppliers. We engage with approximately 1,543 suppliers across 21 countries, with most suppliers based in Australia and supporting the sourcing of raw material, packaging and logistics segments of the business.

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Country No. of Suppliers
Australia 1,448
Other 95
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A key operational focus for the business is to optimise our end-to-end supply chain to achieve maximum value for the business. We aim to achieve this by the continually improving efficiencies across the five supply chain elements below. [1]

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Labour Practices & Human Rights

Our supply chain and distribution networks import and export a significant volume of product to and from developing countries. We acknowledge the associated risks in those markets with regards to; child labour, forced labour and other potential human rights violations. As a seasonal agricultural business, we rely heavily on the casual workforce, sourced both directly and through, local labour hire agencies. We employ casuals from overseas annually, through the government sponsored Seasonal Workers Program.

We treat all our workers in a manner which is compliant with the relevant legislation as well as protecting and preserving each individual’s basic human rights. To address any risks, we require all of our labour hire agencies to confirm compliance with our ethical sourcing policy. This process identified one potential underpayment issue through a labour hire agency, which was promptly acknowledged and rectified in FY2019. [2]

Our commitment to upholding human rights is reflected in a suite of policies that includes our Ethical Sourcing, Code of Conduct, Workplace Fair Treatment, Equal Employment Opportunity, Anti-Discrimination, Harassment and Bullying, OHS, Whistleblower, Recruitment and Environment and Sustainability. [3]

We monitor our performance by conducting audits of our supply chain at random as well as adhering to audit requests from our key customers and other external stakeholders. All our current labour providers have confirmed compliance with our ethical sourcing policy. [4]

Looking ahead

We plan to undertake a more thorough risk assessment of our supply chain and operations with the goal of identifying those areas that have a higher risk profile. We are required to disclose the actions taken to assess and address the risk of modern slavery in line with the Commonwealth Modern Slavery Act 2018 from March 2021.

We want to be recognised as a leader in the industry for effective management of labour practices and human rights issues.

Anti-corruption, Ethics and Integrity

Our culture of strong ethics and integrity drive the behaviors of the business and support our social license to operate within the market and form part of our Values. These behaviors are central to everything we do and allow us to build and sustain enduring relationships with our broad set of stakeholders. We have Fraud, Anti-Bribery and Corruption Policy in place and adherence to the policy is within the scope of internal and external audit reviews, as they are undertaken. [5]

Our progress

We are committed to conducting business in compliance with all applicable anticorruption laws in the countries in which the business operates. In FY2020, there were no confirmed incidents of corruption or identified material breaches of the code of conduct. [6] We endeavour to support local business where we can.

Looking ahead

To ensure we continue to develop and improve our employee’s awareness of the importance of acting ethically and with integrity, we are exploring potential eLearning platforms to support a suite of online learning programs customised to address key outcomes and objectives for the business.

Our progress

We want to be recognised as a leader in the industry for effective management of labour practices and human rights related issues. We are a SEDEX member*, which we achieved through the SEDEX Members Ethical Trade Audit (SMETA). We continue to encourage our supply chain and broader operations to explore the benefits of this accreditation.

SEDEX is one of the world’s leading ethical trade service providers, working to improve working conditions in global supply chains: sedex.com 1 GRI 102-9-a 2 GRI 103-1-a; 103-2-b & GRI 103-3-a-i 3 GRI 103-2-c 4 GRI 103-3-ii 5 GRI 103-1-a 6

3 GRI 103-2-c 4 GRI 103-3-ii 5 GRI 103-1-a 6 GRI 205-3-a,b,c,d

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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Food Safety, Product Labelling & Quality

Food Safety & Quality

Product labelling

Food safety and quality is the cornerstone of our production processes at Carina West, Thomastown and in our orchards to protect our consumers, and our reputation. We know that mismanagement of food safety and quality could damage the trust that consumers and Business to Business customers have in our products and in extreme cases could threaten our business viability. [7]

We aim to be transparent and clear in our product labelling. Incorrect product labelling can lead to health risks for consumers, regulatory breaches, associated product recalls, investigations from regulatory bodies and losses of customer/consumer confidence. [14] We have a Product Development, Specifications and Labelling procedure which outlines the roles and key responsibilities of staff. Throughout the label creation process, Quality Assurance and New Product Developers business units are required to sign off on product labelling for compliance with relevant internal and external requirements. [15]

Our progress

Both production sites are certified through the Safe Quality Food (SQF) program, which is recognised internationally by food service providers. In addition, all our facilities, including farms, are certified against Hazard Analysis Critical Control Point (HACCP) requirements and audited annually for compliance. We monitor our food safety and traceability performance by microbiological and chemical product testing, audit performance and regulatory compliance. We monitor our product quality through internal screening and customer complaints. [12] In FY2020, there were no incidents of noncompliance with regulations and voluntary codes concerning the health and safety impacts of our products. [13]

Food safety and quality is seen as the responsibility of everyone at Select Harvests. We are committed to supplying products that consistently meet our customers’ expectations, as well as all our regulatory compliance requirements. [8] Our Food Safety Plan has been developed using HACCP principles to manage and control food safety, regulatory and quality risks through all stages of our operations. [9]

Our progress

At both the Thomastown and Carina West facilities label compliance checks are conducted at regular intervals by quality assurance or production staff. We measure success of our labelling protocols by requiring no withdrawals or recalls for label related issues. In FY2020, there were no incidents of noncompliance with regulations and voluntary codes concerning product information and labeling, resulting in no withdrawals or recalls. [16]

Looking ahead

We pride ourselves on the traceability of our products as a fundamental step in protecting our consumers, particularly when a product recall is required. [10] As a vertically integrated business we can closely monitor almond traceability from the farm to the end customer. Implementing the JD Edwards (JDE) system in conjunction with manual recording of traceability provides the foundation to our robust food safety and quality process. [11]

A proactive approach to food safety and quality has led to investment in the online control management and compliance system; ManGO, which is currently being rolled out across the business. We will continue to upskill our employees through structured training on the Food Safety System.

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Food safety and quality is seen as the
responsibility of everyone at Select Harvests.
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7 GRI 103-1-a 8 GRI 103-2-b 9 GRI 103-2-c-i 10 GRI 103-1-a 11 GRI 103-2-c-vii 12 GRI 103-3-a 13 GRI 416-2-b; GRI 103-3-b
14 GRI 103-1-a 15 GRI 103-2-a,c-iv 16 GRI 417-2-b
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CASE STUDY

Food labelling can be confusing and a particular challenge for parents wanting to provide good nutrition for their children. Recognising that, our approach has been to formulate products for children based on what consumers say they want and to provide clear, nutrition-driven labelling to make choices easier for those on a quick visit to the supermarket.

For example, to develop our Sunsol Kids PRO-biotic Cereals we conducted consumer research to understand what parents and kids wanted in a cereal. We then formulated our product and developed a set of clear messages for the packaging which aligned with the research results.

• Use of a clip seal packaging which assures optimal product quality up to the Best Before Date printed on pack.

Providing an allergen declaration on the back of pack
Formulating these products with low sugar levels and no artificial colours or flavours
Using preservative free fruit in the products.

Our products have been nutritionally verified by external laboratories and our labelling messages were verified against Food Standards Australia & New Zealand.

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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Financial Performance & Business Strategy

Financial Performance

FY2020 was a positive year on many fronts and led to the delivery of a strong profit result and greater operational efficiencies. A Net Profit After Tax (NPAT) of $25.0 million, Earnings per Share (EPS) of 26 cents per share (CPS) in FY2020 and a very strong operating cash flow of $13.3 million, was reported. Our financial performance underpins the viability of our business and allows us to deliver value to all our stakeholders. [1] Our multi-year greenfield development strategy is now yielding results as our investments mature into productive orchards, significantly contributing to the increase in almond volume growth. In the processing side of the business, results were reflective of strong demand for value added Industrial product into the China market offset by the continuing challenging environment in the domestic consumer branded market.

We strive to keep improving the efficiency of our operations which is why we opted to change our financial year end to September in FY18. This has allowed us to align our financial performance with the almond crop cycle, enabling us to better estimate the full year crop and allowing us to better plan and manage our financial performance throughout the year.

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TONNAGE TOTALS METRICTONNES
WEIGHT OF KERNELS PER ANNUM 2 3,000
2 2,000
23,250 2 1 ,000
MT
20,000
1 9,000
22,600 1 8,000
MT
1 7,000
1 6,000
1 5,000
15,700 1 4,000
MT
1 3,000
1 2,000
14,500 14,200 14,100
MT MT MT 1 1 ,000
10,000
10,500 9,000
MT
8,000
7,000
6,000
2014 2015 2016 2017 2018 2019 2020 [2]
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Our Economic Contribution

Our success as a business is determined not only by our financial performance, but by the number of staff we employ, the suppliers whose businesses we support and the social and economic outcomes in our local communities. [3]

Our orchards and major processing capacity are in regional Victoria, South Australia and New South Wales.

In all these areas, we positively impact local and regional economies and contribute to economic development through a variety of methods. These include taxes and other payments to governments at local, state and federal level, local procurement, employment and investing in programs and projects that benefit local communities.

Our values of ‘protect and grow’ encourage regular stakeholder engagement which allows us to assess and modify our approach to supporting regional economic development. In FY2020 our direct economic contribution consisted of: [4]

Direct Economic Contribution

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$133,000 $45.79M $290.38M $11.26M $29.88M
Community Employee Expenditure Tax Payments Payments to
Investment Related Expenses with Contractors to State and Providers of
including salaries paid and Suppliers Federal Government Capital
to employees
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1 GRI 103-1-a 2 GRI 102-7-a-v 3 GRI 103-3-a-i 4 GRI 201-1-ii

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW 31

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Historical Summary

Select Harvests consolidated results for years ended 30 September/June

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$'000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018† 2019 2020
(except where (3 mths)
indicated)
Year/period ended 30 june 30 june 30 june 30 june 30 june 30 june 30 june 30 june 30 june 30 june 30 sept† 30 sept 30 sept
Total sales 248,581 238,376 248,316 246,766 190,918 188,088 223,474 285,917 242,142 210,238 67,581 298,474 248,262
Earnings before 26,827 26,032 22,612 (2,495) 5,241 31,288 85,845 49,785 16,979 34,869 (1,052) 80,065 38,726
interest and tax
Operating profit 23,047 23,603 18,473 (8,743) 198 26,833 80,514 44,290 11,978 29,464 (2,089) 76,108 36,662
before tax
Net profit after tax 16,712 17,253 17,674 (4,469) 2,872 21,643 56,766 33,796 9,249 20,371 (1,536) 53,022 25,001
Earnings per share 42.6 43.3 33.7 (7.9) 5.0 37.5 82.9 46.7 12.6 23.2 (1.6) 55.5 26.0
(Basic) (cents)
Return on 16.6 15.2 10.5 (2.8) 1.8 12.3 19.8 11.6 3.3 127.5 12.7 6.2
shareholders' equity
(%)
Dividend per ordinary 12 21 13 8 12 20 50 46 10 12 0 28 13
share (cents)
Dividend franking (%) 100 100 100 100 100 55 - 54 100 100 N/A 100 100
Dividend payout 28.2 48.5 38.6 (101.3) 239.8 53.5 62.8 99.1 79.4 51.7 N/A 50.0 50.0
ratio (%)
Financial ratios
Net tangible assets 1.56 1.87 2.17 2.19 2.14 2.38 3.35 3.22 2.95 3.34 0.00 3.60 3.46
per share ($)
Net interest cover 7.10 10.70 6.70 (0.4) 1.0 6.9 15.9 9.0 3.4 6.4 N/A 20.0 18.7
(times)
Net debt/equity 51.9 39.6 43.3 41.7 49.6 54.0 38.2 23.1 52.5 18.7 15.9 6.6 79.6‡
ratio (%)
Current asset ratio 0.79 1.44 1.96 1.42 1.61 4.02 3.36 1.90 1.05 4.49 3.23 2.74 2.39
(times)
Balance sheet data as at 30 September/June
Current assets 81,075 83,993 91,228 76,936 123,303 136,639 207,782 155,521 136,610 162,118 159,721 173,667 217,397
Non-current assets 133,884 145,612 214,352 202,371 180,542 194,080 280,130 294,251 343,081 354,435 362,900 379,190 607,497
Total assets 214,959 229,605 305,580 279,307 303,845 330,719 487,912 449,772 479,691 516,553 522,621 552,858 824,894
Current liabilities 102,348 58,469 46,454 54,369 76,800 33,988 61,893 81,783 130,371 36,104 49,412 63,457 91,062
Non-current liabilities 11,735 57,515 90,311 64,608 67,540 121,325 138,632 77,088 71,701 101,809 102,570 73,398 328,822
Total liabilities 114,083 115,984 136,765 118,977 144,340 155,313 200,525 158,871 202,072 137,913 151,982 136,854 419,884
Net assets 100,876 113,621 168,815 160,330 159,505 175,406 287,387 290,901 277,619 378,640 370,639 416,003 405,010
Shareholders' equity
Share capital 46,433 47,470 95,066 95,957 97,007 99,750 170,198 178,553 181,164 268,567 268,567 271,750 279,096
Reserves 12,949 11,327 11,201 10,472 9,144 12,190 12,818 11,168 11,602 9,601 9,802 10,417 14,280
Retained profits 41,494 54,824 62,548 53,901 53,354 63,466 104,371 101,180 84,853 100,472 92,270 133,836 111,634
Total shareholders' 100,576 113,621 168,815 160,330 159,505 175,406 287,387 290,901 277,619 378,640 370,639 416,003 405,010
equity
Other data as at 30 September/June
Fully paid shares 39,519 39,779 56,227 56,813 57,463 57,999 71,436 72,919 73,607 95,226 95,226 95,737 96,637
('000)
Number of 3,296 3,039 3,227 3,359 3,065 3,779 4,328 8,908 11,461 11,943 11,884 10,331 11,258
shareholders
Select Harvests' share price
- close ($) 2.16 3.46 1.84 1.30 3.27 5.14 11.00 6.74 4.90 6.90 5.32 7.69 5.57
Market capitalisation 85,361 137,635 103,458 73,857 187,904 298,115 785,796 491,474 360,674 657,059 506,602 736,218 538,268
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The 2014 result has been restated due to the early adoption of changes to Accounting Standards, AASB 116 Property, Plant and Equipment, and AASB 141 Agriculture, impacting 'bearer plants'. † 3 month transition period ‡ As a result of implementation of AASB16 Leases on 1 October 2019, the Company recognised Right-of-use assets and lease liabilities in its books

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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1 2 GRI Content Index

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----- Start of picture text -----

GRI Standard Disclosure Page Number(s) and/or URL(s) Omission
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102-1	Name of the organisation	Page 2
102-2	Activities, brands, products, and	Page 2 & 7
	services
102-3	Location of headquarters	Page 35
102-4	Location of operations	Page 6
102-5	Ownership and legal form	Refer to pg. 42 of FY2020 annual report at
		selectharvests.com.au/annual-reports
102-6	Markets served	Page 7
102-7	Scale of the organisation	Page 6, 25, 30
102-8	Information on employees and other	Page 25
	workers
102-9	Supplychain	Page 26
102-10	Signifcant changes to the	No signifcant changes
	organization and its supplychain
102-11	PrecautionaryPrinciple or approach	Page 7
102-12	External initiatives	Page 7
102-13	Membershipof associations	Page 7
102-14	Statement from senior decision-maker	Page 3
102-16	Values, principles, standards, and	Page 5
	norms of behaviour	Refer to code of conduct policy on website:
		selectharvests.com.au/governance
102-18	Governance structure	Page 7
		Refer to website
		selectharvests.com.au/governance
102-40	List of stakeholdergroups	Page 10-11
102-41	Collective bargainingagreements	Page 25
102-42	Identifyingand selectingstakeholders	Page 10
102-43	Approach to stakeholder engagement	Page 10-11
102-44	Key topics and concerns raised from	Page 10-11
	stakeholder engagement
102-45	Entities included in the consolidated	Page 2
	fnancial statements	Refer to pg. 73 of FY2020 annual report at
		selectharvests.com.au/annual-reports
102-46	Defning report content and topic	Page 8
	Boundaries
102-47	List of material topics	Page 9
102-48	Restatements of information	Page 3
102-49	Changes in reporting	Page 2
102-50	Reporting period	Page 2
102-51	Date of most recent report	Page 2
102-52	Reportingcycle	Page 2
102-53	Contact point for questions regarding	Page 35
	the report
102-54	Claims of reporting in accordance with	Page 2
	the GRI Standards
102-55	GRI content index	Page 32-35
102-56	External assurance	Page 2
		We have engaged a third party to perform
		assurance readiness over selected data
		streams which support material issues.

1 GRI 102-55-a 2 GRI 102-55-b-i,ii,iii

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW 33

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GRI Standard	Disclosure	Page Number(s) and/or URL(s)	Omission
Material Topic	- Water Management & Stewardship
103-1	Explanation of the material topic and its Boundary	Page 9, 14-16
103-2	The management approach and its components	Page 14
103-3	Evaluation of the management approach	Page 17
303-1	Interactions with water as a shared resource	Page 16
303-2	Management of water discharge- related impacts	Page 14
303-3	Water withdrawal		Confdentiality constraints: Volumes by stress ratings is commercial in confdence.
Material Topic	- Environmental Impact
103-1	Explanation of the material topic and its Boundary	Page 9, 17-21
103-2	The management approach and its components	Page 17, 20-21
103-3	Evaluation of the management approach	Page 17, 20-21
305-2	Energy indirect (Scope 2) GHG emissions	Page 17
307-1	Non-compliance with environmental laws and regulations	Page 21
Material Topic	- Climate Change
103-1	Explanation of the material topic and	Page 9, 22
	its Boundary
103-2	The management approach and its	Page 22
	components
103-3	Evaluation of the management	Page 22	We will continue to work on
	approach		designing a framework for
			evaluating our approach to climate
			change and disclose our progress in
			our next report.
201-2	Financial implications and other risks		Information unavailable: We will
	and opportunities due to climate		perform a risk and opportunities
	change		assessment to understand the
			fnancial implications of climate
			change and work to mitigate these
			risks.

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW

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GRI Content Index continued

GRI Standard	Disclosure	Page Number(s) and/or URL(s) Omission
Material Topic	- Occupational Health and Safety (OHS)
103-1	Explanation of the material topic and its Boundary	Page 9, 24-25
103-2	The management approach and its components	Page 24
103-3	Evaluation of the management approach	Page 24
403-1	Occupational health and safety management system	Page 24
403-2	Hazard identifcation, risk assessment, and incident investigation	Page 24
403-3	Occupational health services	Our Safety Ofcers oversee the provision of occupational health services including workplace safety surveillance, advice on health, safety and hygiene, workplace ergonomics and organisation of frst aid and emergencytreatment.
403-4	Worker participation, consultation, and communication on occupational health and safety	Page 24
403-5	Worker training on occupational health and safety	Page 24
403-6	Promotion of worker health	Page 25
403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	SHV’s business relationships do not cause signifcant negative OHS impacts.
403-9	Work-related injuries	Page 26 Information on hours worked by casuals is not available as casual workers are sourced through labour hire agencies. More detailed information is expected on this in our next report
Material Topic	- Labour Practices, Human Rights, Anti-Corruption, Ethics and Integrity
103-1	Explanation of the material topic and its Boundary	Page 9, 26
103-2	The management approach and its components	Page 26
103-3	Evaluation of the management approach	Page 26
205-3	Confrmed incidents of corruption and actions taken	Page 26
Material Topic	- Food Safety, Product Labelling andQuality
103-1	Explanation of the material topic and	Page 9, 27
	its Boundary
103-2	The management approach and its	Page 27
	components
103-3	Evaluation of the management	Page 27
	approach
416-2	Incidents of non-compliance	Page 27
	concerning the health and safety
	impacts ofproducts and services
417-2	Incidents of non-compliance	Page 27
	concerning product and service
	information and labelling

SELECT HARVESTS SUSTAINABILITY REPORT 2020 PROTECT & GROW 35

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GRI Standard Disclosure Page Number(s) and/or URL(s) Omission
----- End of picture text -----

Material	Topic - Financial Performance and Business	Strategy
103-1	Explanation of the material topic and	Page 9, 30
	its Boundary
103-2	The management approach and its	Refer to pg. 8 & 22 of the FY2020
	components	annual report for the approach to
		managing business strategy and fnancial
		performance respectively at
		selectharvests.com.au/annual-reports
103-3	Evaluation of the management	Page 30
	approach
201-1	Direct economic value generated and	Page 3, 30
	distributed	Refer to pg. 43 of the FY2020 annual report
		for revenue and operating costs at
		selectharvests.com.au/annual-reports

Contact 1

Select Harvests Limited

ABN 87 000 721 380 PO Box 5 Thomastown VIC 3074 360 Settlement Road Thomastown VIC 3074 Telephone (03) 9474 3544 Fax (03) 9474 3588 Email [email protected] ASX ticker code: SHV

Company Instagram Pages

@select_harvests @lucky.nuts @sunsol_muesli @nuvitalityau

Company LinkedIn Page

au.linkedin.com/company/select-havests-pty-ltd

Company Websites

luckynuts.com.au sunsol.com.au nuvitality.com.au allingafarms.com.au

selectharvests.com.au

1 GRI 102-53

Our Triple Bo�om Line Focus

SUSTAINABILIT Y REPORT

AS AT SEPTEMBER 2020

AI assistant

SELECT HARVESTS LIMITED — Environmental & Social Information 2021

65792_rns_2021-02-25_0d7e08c7-3016-4483-ba69-b766322727f0.pdf

CONTENTS

ABOUT THIS REPORT

FOREWORD FROM THE CHAIR AND MANAGING DIRECTOR

• Optimise the almond base.

• Expand strategically.

KEY FOCUS AREA

LOOKING AHEAD

FY20 HIGHLIGHTS

In a Nutshell

PLANET

Our Sustainability Priorities

Approach to Sustainability

continued Our Sustainability Priorities

Optimise the Almond Base

OUR ORCHARDS ARE LOCATED IN 3 DISTINCT GEOGRAPHIC AREAS

Our Sustainability Impacts

Grow Our Brands

Expand Strategically

Governance Structure

Approach to Risk Management

External Memberships

continued Our Sustainability Impacts

Materiality

Our Materiality Assessment Process

We took a three-step approach to identifying our material issues

Priority Topics

Water Management and Financial Performance and Stewardship Business Strategy

Stakeholders impacted:

Food Safety, Product Labelling and Quality

Climate Change

Labour Practices, Human Rights, Anti-Corruption, Ethics and Integrity

Occupational Health and Safety (OHS)

Environmental Impact

Engaging Stakeholders

Planet

Water Management & Stewardship

A Responsible and Efficient Water User

Monitoring our impact

Our water use

Using Technology to Improve Water Efficiency

Amaroo Farm

Soil capacitance technology

Plant sensing technology

continued Water Management & Stewardship

Looking ahead

Environmental Impact

Our electricity consumption

Our progress

Looking ahead

Carbon Management

CASE STUDY

H2E Co-Generation Power Station

Power Station

Waste Recycling

Composting

Electricity

Dan Wilson

CASE STUDY

Carbon Based Fertilizer Sustainable Almond Production

Co-Gen Power Plant

High Grade Ash

Key benefits include:

continued Environmental Impact

Change of Land Use

Our progress

Looking ahead

Chemical Management

A responsible user of chemicals

Monitoring our impact

Our progress

Looking ahead

Climate Change

Our progress

Looking ahead

People

Occupational Health & Safety (OHS)

Safety culture and management

SELECT HARVESTS LIMITED Environmental & Social Information 2021