Announcement PDF 18 November 2024 2024 Sustainability Report Attached is the Elders Limited (ASX:ELD) Sustainability Report for the 12-month period ended 30 September 2024. Further Information: Mark Allison, Managing Director & Chief Executive Officer, 0439 030 905 Authorised by: Elders Limited Board of Directors View this announcement on Elders’ Investor Hub. Elders Limited ABN 34 004 336 636. Registered Office: Level 10, 80 Grenfell Street, Adelaide SA Australia 5000 Sustainability Report 2024 Elders Limited ABN 34 004 336 636 1 Contents Message from the Managing Director and CEO 2 About this Report 3 Sustainability Performance 4 About Elders 6 Sustainability at Elders 7 Environment 11 Sustainable Farming Climate Change Nature Waste Management Environmental Management People and Communities Health and Safety Employee Attraction and Retention Community Impact and Investment Governance and Ethical Operations Ethical Conduct Risk Management Cybersecurity Responsible Sourcing and Modern Slavery Animal Welfare 12 17 30 31 33 35 36 40 44 47 47 48 50 51 52 Performance Tables 54 Assurance Statement 58 TCFD Index 62 GRI Index 63 Definitions 67 Basis of Preparation 68 2 2024 Sustainability Report Message from the Managing Director and CEO people, customers and communities and protect the environment whilst maintaining ethical operations. Supporting people and communities For 185 years Elders has been embedded in Australian agriculture and played a key role in rural and regional communities. Our Eight Point Plan allows us to continue this legacy and pave the way toward a bright future for agriculture with sustainability as a strategic priority and a driver of growth for our organisation. I am pleased to present the Elders Sustainability Report for FY24. Our ambition is to drive industry leading sustainability outcomes across health and safety, community, environment and governance to benefit our customers, communities, industry, people, and shareholders. This is highlighted in our Eight Point Plan, which sets out Elders' key strategic priorities from 1 October 2023 through to 30 September 2026. In recent years, we built the foundations of our sustainability practices by understanding our material topics; introducing sustainability governance through our Board and Management committees; and developing a Sustainability Framework – our blueprint for action that maintains our focus on topics to drive meaningful impact. This report demonstrates our efforts to support our Our people are our greatest asset. It is important that Elders employees are part of a safe, fulfilling and rewarding workplace where they are recognised and rewarded for their commitment. We have dedicated ourselves to continually evolving and improving our safety performance. This year, we maintained our downward trend in lost time injuries to two, compared to three in FY23. We also made progress in reducing our total recordable injury frequency rate from 10.1 in FY23 to 9.0 in FY24. It is unacceptable that any of our people are harmed at work, and we continue our pursuit of creating a ‘zero harm’ work environment. Elders has worked on improving diversity and equity in the business and agriculture sector for some time. In FY24, the Elders Inclusion Committee introduced our inaugural Indigenous Engagement Strategy to support Elders in creating shared benefits and expanding our contribution to communities. We also progressed our efforts to increase the proportion of women in higher paying roles through recruitment and succession programs. Protecting the environment Management of climate and nature related risks and opportunities enables us to build business resilience. Over the years, we have actively managed our carbon footprint and expanded our understanding of physical and transition risks for Elders. In FY24, we progressed renewable energy initiatives by commissioning a 500 kW solar system at our Killara Feedlot and increased the number of our sites with solar panel systems by 13. We also developed an action plan to consider our interactions with nature in line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). We believe in empowering our farming communities to achieve greater economic resilience and success through sustainable farming practices. Thomas Elder Sustainable Agriculture (TESA) continued to deliver impact in sustainable agriculture and innovation through projects and partnerships. This year, our dedicated staff supported our clients with developing carbon farming projects through our carbon farming advisory service. In addition, we committed to exploring new technologies that will enhance environmental monitoring through a partnership with SmartSat CRC which is utilising satellite-enabled earth observation technologies to address key challenges in Australian agriculture. Maintaining ethical operations FY24 was dedicated to embedding our sustainability principles into business practice. We have driven continuous improvement in sustainability governance by integrating systems and processes that enable us to better manage waste and ethical sourcing risks. Elders now has a centralised waste collector that will provide greater visibility of our waste footprint and enhance our ability to manage waste across our operations. We also introduced additional due diligence practices for our suppliers to enable better management of modern slavery risks. I am proud of our progress as we continue to create meaningful impact for the agriculture sector in Australia. I encourage you to provide feedback to our sustainability team (sustainability@elders.com.au) on our performance, and I look forward to sharing our progress in future sustainability reports. Mark Allison Managing Director and CEO About this Report About this Report Scope Our Sustainability Report informs our stakeholders of our approach to addressing material sustainability topics and our performance from 1 October 2023 to 30 September 2024 ("FY24"), except where otherwise indicated. It completes Elders' annual reporting suite which includes the Annual Report, Corporate Governance Statement and Modern Slavery Statement.1 This report covers the operations of Elders Limited and companies over which Elders has control.2 Activities or entities over which Elders does not have operational control are excluded from the scope of this report unless specifically stated otherwise. Acquisitions are only included if they were completed before the end of FY24. We use three broad themes to present Elders' progress on our priorities in this report: environment, people and communities, and governance and ethical operations. Voluntary Alignment This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards. Our GRI Content Index can be found on page 63 of this report. The content of this report was determined using the GRI reporting principles for defining report content, as set out below. • Accuracy - report content is correct and detailed • Balance - report content is presented in an unbiased way • Clarity - report content is accessible and understandable • Comparability - report content is reported on consistently over time • Completeness - report content is based on information available and reported throughout FY24 • Sustainability Context - report content is prepared in the context of current and emerging domestic and international trends in the agriculture industry • Timeliness - Elders publishes its Sustainability Report annually • Verifiability - report content can be examined to establish its quality This report also includes consideration of recommended disclosures from the following sustainability standards, sector disclosures, and frameworks: • Task Force on Climate-Related Financial Disclosures (TCFD) - Our TCFD Index can be found on page 62 of this report • United Nations Sustainable Development Goals • Taskforce on Nature-related Financial Disclosures (TNFD) External Assurance PwC Australia has provided limited assurance in relation to certain disclosures in our Sustainability Report. A copy of its assurance report is available on page 58. Contact For questions about this report, please contact: sustainability@elders.com.au 1 2 Available on our website at Elders' Periodic Reports As defined by section 50AA of the Corporations Act 2001. 3 SUSTAINABILITY PERFORMANCE 4 2024 Sustainability Report CLIMATE TARGETS TO REDUCE GREENHOUSE GAS EMISSIONS1 TARGET 2024 2025 Target achieved through on-site solar generation and procurement and retirement of Large-scale Generation Certificates (LGCs) 100% renewable electricity in all Australian sites by 2025 Increase of 13 sites with solar installations; 76 sites now equipped with solar panels 2030 23% reduction in Scope 1 and 2 emissions intensity against baseline year of 2021 50% reduction in Scope 1 and 2 emissions intensity (tCO2e/$m revenue) by 2030, against a baseline year of 20212 2050 Net zero Scope 1 and 2 emissions by 2050 1 Reported emissions are based on the period 1 July 2023 to 30 June 2024. 2 Subject to commercially viable technology being available to address feedlot cattle emissions. 18.3 tCO2e/$m revenue in 2024 Up from 17.93 tCO2e in 2023 57,210 tCO2e this year (Scope 1 and 2) Down from 59,551 tCO2e in 2023 Sustainability Performance DIVERSITY AND INCLUSION 33% 21% Board positions held by women Women in senior positions HEALTH AND SAFETY 2 Lost Time Injuries (down from three in FY23) Over $2.5m invested in safety capital expenditure 9 TRIFR Down from 10.1 in FY23 COMMUNITY IMPACT AND INVESTMENT $3.39m 14 Grants awarded through Community Giving Project Donations and sponsorships WASTE MANAGEMENT 51,000 Agricultural chemical containers collected for reuse or recycling 3.1t Bags collected for recycling through Big Bag Recovery 5 6 2024 Sustainability Report About Elders Our ambition is to drive industry-leading sustainability outcomes across health and safety, community, environment and governance to benefit our customers, communities, industry, people and shareholders. Our Structure and Operations Elders is a public company listed on the Australian Securities Exchange (code: ELD). We work closely with primary producers to provide products, marketing options and specialist technical advice across rural, agency and financial product and service categories. Elders operates a leading Australian rural and residential real estate agency and management network, which includes both company owned and franchise offices throughout Australia in both major population centres and regional areas. We also operate a top-tier beef cattle feedlot in New South Wales. Our Operations1 Elders is one of Australia’s leading suppliers of rural farm inputs, including seeds, fertilisers, agricultural chemicals, animal health products and general rural merchandise. These rural products are supplied to primary producers and corporate farm customers through our 260 Elders owned retail stores. Additionally, we also provide professional production and cropping advice with 246 agronomists nationwide, including additional specialists operating through Elders Technical Services. Rural Products Elders also operates a Wholesale Products business which supplies products to independently owned member stores, utilising the AIRR branding. AIRR also provides retail services through corporate owned stores and the Ag, Horse & Pet brand to independently owned member stores. Central to our product value-add is our backward integration strategy which is facilitated through various brands and channels, allowing for margin enhancement and transparency. Elders provides a range of marketing options for livestock, wool and grain. Elders' livestock network comprises employees and agents operating across Australia conducting on-farm sales to third parties, regular physical and online public livestock auctions and direct sales to Elders-owned and third-party feedlots and livestock exporters. Agency Services Elders is one of the largest wool agents for the sale of Australian greasy wool and operates a brokering service for wool growers. Our team of dedicated wool specialists assists clients with wool marketing, in-shed wool preparation, ram selection and sheep classing. In 2023, Elders commenced its wool handling operations, a $25 million investment in the Australian wool industry with operations in Perth and Melbourne. Full transition to the new wool handling operation was completed in late FY24 which will deliver greater efficiency and long-term cost savings within the wool supply chain. Elders also has a 50% interest in AuctionsPlus, an online livestock auction platform, and a 30% interest in Clear Grain Exchange (CGX), which is an online grain trading platform. Real Estate Services Elders’ Real Estate Services includes company owned rural agencies primarily involved in the marketing of farms, stations and lifestyle estates. It also includes a network of residential real estate agencies providing sales and property management services in major population centres and regional areas through company owned and franchise offices. Other services include water broking, commercial real estate and valuation. Elders Finance provides and distributes a wide range of finance, insurance and warranty products and services through its Australian network and Wholesale Products channel. Financial Services Elders' partnership with Rural Bank for our banking portfolio was ceased in early FY24, allowing the expansion and promotion of the Elders Finance brokerage model which is now providing a variety of financing options, across personal and business lending, to our customers. In addition, Elders provides various Livestock and Wool Funding products and a Livestock in Transit (LIT) Delivery Warranty service, which all complement our Agency business. Collectively, these relationships and business units enable us to offer a broad spectrum of products designed to help our customers grow their businesses and manage cash flow and risk. We work together with a number of partners to deliver some of these offerings, including offering third party livestock funding products and general insurance products from Elders Insurance (a QBE subsidiary). Feed and Processing Services 1 Elders owns and operates Killara Feedlot, a diversified business incorporating grain and grass fed cattle production operations, manure processing and irrigated feed production in Quirindi, New South Wales. More information is available in our Annual Report, available on our website at Elders' Periodic Reports. Sustainability at Elders Elders’ Sustainability Framework Our Sustainability Framework is designed to address the priorities of our customers, clients, and the industries and communities in which we operate. It guides us in navigating both challenges and opportunities, ensuring that we remain focused on the areas that matter most to drive meaningful impact. The Elders Sustainability Framework features eight priority topics which were identified through a materiality assessment conducted in FY23. During FY24, we reviewed Elders' sustainability topics to ensure that we continue to address and report on issues that are most important to our business and our stakeholders. It was determined that the topics featured within our Sustainability Framework remain material and require ongoing focus. 7 8 2024 Sustainability Report We use three broad themes to discuss Elders' progress on our priorities in this report: environment, people and communities, and governance and ethical operations. Environment People and communities Building resilience across the sector by reducing emissions, caring for nature and improving farm productivity. Topics include: sustainable farming, climate change, nature, waste management and overall environmental management. Promoting safety, attracting and retaining the best people and supporting communities. Topics include: health and safety, employee attraction and retention, community impact and investment and our engagement with Indigenous people and communities. Governance and ethical operations Maintaining conduct that is honest, fair, legal and ethical through robust risk management and governance processes. Topics include: corporate governance, cybersecurity, modern slavery, human rights and animal welfare. Our Materiality Assessment The below table outlines the comprehensive materiality assessment process that was undertaken in FY23 to identify the topics of material importance to Elders and our stakeholders. 1 Extensive research 2 Stakeholder engagement 3 Impact assessment and prioritisation 4 Validation and reporting • Media analysis • Peer analysis and benchmarking • Employee workshops and surveys Interviews with a range of stakeholders, followed by completion of surveys. Stakeholders included: • Representatives from the investment community • Elders' customers • Financiers • Government and NGO representatives • Research and development institutions • Industry bodies • Suppliers • Consolidating data from steps one and two for qualitative and quantitative analysis • Scoring identified topics in order of importance to stakeholders and impacts on our business, our external stakeholders, the economy and the environment • Validating prioritised topics with our Sustainability team, Executive Committee and Board • Consolidation of topics where appropriate Stakeholder Engagement Stakeholder engagement is vital to understanding the impact of our operations and is used to inform and support our Board and broader business in identifying, managing and reporting on material sustainability topics and their associated risks and opportunities. Elders’ approach to engaging with stakeholders is set out below. Not all methods are utilised annually. We aim to engage with all members of our investment community, customer, communities and employee stakeholder groups to varying extents through one or more of the methods outlined below. In selecting which regulators, NGOs, financiers, contractors and suppliers to engage with, we consider their relationship with Elders, and their knowledge and experience of the markets important to our business. Stakeholder Engagement approach Investment community (including proxy advisors) Elders’ website, AGM, public reporting and announcements, briefings, conferences, regular meetings and discussions, surveys Regulators Reporting, meetings, site visits, through industry associations and responses to enquiries Customers Elders' website, surveys, meetings, industry events, information sessions and media communications Communities Elders' website, participation in community programs and events, industry events, media communications and surveys Employees Surveys, performance reviews, presentations, training, meetings, social events, email and intranet NGOs Meetings and through industry associations Financiers Regular meetings and discussions, surveys Industry bodies Industry conferences, meetings and presentations Contractors and suppliers Elders' website, meetings, supplier conferences and surveys Sustainability at Elders 9 Sustainability Governance Our sustainability ambitions are supported by our Corporate Governance Framework, which ensures management and the Board effectively oversee our sustainability strategy. One Elders Values Our One Elders Values are integral to the way we do business. They set the tone of Elders’ culture from the top, establishing the behaviours we expect from all our people. These values, together with our Code of Conduct, our Eight Point Plan and our Corporate Governance Framework, underpin our key sustainability principle of operating ethically and to the highest standard. Our Corporate Governance Framework Our governance practices are aligned with the 4th edition of the ASX Corporate Governance Council's Principles and Recommendations and our Board oversees all matters relating to Elders’ economic, environmental and social sustainability. As at 30 September 2024, our Board comprised our Chair, Ian Wilton, Non-Executive Directors Robyn Clubb, Raelene Murphy, John Lloyd, Damien Frawley and Glenn Davis, together with our Managing Director and CEO, Mark Allison. During FY24, the Elders Board has continued to work on board succession and development. In FY24, three new non-executive directors, John Lloyd, Damien Frawley and Glenn Davis, were appointed. The Board continues to consider diversity to ensure it has an effective composition, size, mix of skills, knowledge, experience and commitment to adequately discharge its responsibilities and duties. Further information about how Elders is governed, including the structure and operation of our Board and governing committees, is available in our Corporate Governance Statement.1 F i ndoutmor e Pol i c i e sr e l at i ngt oourmat e r i al s us t ai nabi l i t yt opi c sar ede v e l ope d, r e v i e we dandupdat e dby Se ni orManag e me nt andar eappr ov e dbyE x e c ut i v emanag e me nt . Si g nic ant pol i c i e s( i nc l udi ng ouri nt e r nal De l e g at i onof Aut hor i t yPol i c yandCl i mat eChang ePol i c y )ar eal s oappr ov e dbyt he Boar d. F ur t he ri nf or mat i onabout howE l de r si sg ov e r ne d, i nc l udi ngt hes t r uc t ur eandope r at i on of ourBoar dandg ov e r ni ngc ommi t t e e s , i sa v ai l abl ei nourCor por at eGov e r nanc eSt at e me nt . Someof ourmos t i mpor t ant g ov e r nanc epol i c i e s , i nc l udi ngour Wor kHe al t handSaf e t yPol i c y , Cl i mat eChang ePol i c yandDi v e r s i t yandI nc l us i onPol i c y , ar ea v ai l abl eonl i ne . 1 Available on our website at Elders' Periodic Reports Ourpol i c i e sandr e por t sar ea v ai l abl eonl i neat : i nv e s t or s . e l de r s . c om. a u/ pe r i odi c r e por t s i nv e s t or s . e l de r s . c om. a u/ gov e r na nc e 10 2024 Sustainability Report Board and Executive Committees Our Board and relevant governing committees meet throughout the year as outlined in the figure below. The Board Safety and Sustainability Committee and the Management Safety and Sustainability Committee provide forums for communicating and managing sustainability-related matters. Full details about the sustainability-related attributes we specifically look for in our Board is available in our director skills matrix, contained in our Corporate Governance Statement.2 Directors receive regular briefings on Elders’ operations and on industry, technical and legislative issues which may impact our business, including those relating to economic, environmental and social topics. They provide insights and direction to the business as required through meetings with the Managing Director and CEO, the company secretary and their membership of the Board; Audit, Risk and Compliance Committee; Safety and Sustainability Committee and Remuneration, People and Culture Committee. Management and communication of sustainability Sustainability KPIs (Key Performance Indicators) are included in the Managing Director and CEO's scorecards and cascaded to Executives where relevant.3 The Board has delegated responsibility for day-to-day management of Elders to our Managing Director and CEO. Each Executive reports directly to Elders’ Managing Director and CEO and is supported by Elders’ Sustainability Team. The Management Safety and Sustainability Committee (comprising members of Elders' Executive team), reports progress to the Board Safety and Sustainability Committee, which reviews and makes recommendations to the Board on safety, environment and sustainability initiatives, including climate related risks and opportunities. Both committees meet four times per year. Our sustainability team is responsible for the development of Elders’ Sustainability Strategy which comprises of initiatives that drive progress towards our goals and commitments in line with the Elders' Sustainability Framework. The team collaborates with key stakeholders across the business and provide advice on managing sustainability-related risks, projects, and initiatives. The Board Safety and Sustainability Committee reviews and recommends the Sustainability Report for approval to the Board, ensuring all significant topics are covered. 2 3 Available on our website at Elders' Periodic Reports For more information, please see Elders' Remuneration Report available within our Annual Report at Elders' Periodic Reports Environment 11 Environment Sustainability Report 2024 12 2024 Sustainability Report Sustainable Farming Elders plays a key role in supporting farmers' productivity and sustainability ambitions. Elders supports farmers and the agriculture industry with implementing sustainable farming practices through: • Advisory: our range of advisory services, including agronomic, livestock advisory, Thomas Elder Consulting and carbon farming • Innovation: our Thomas Elder Sustainable Agriculture Team, which aims to support Elders’ innovation efforts, collaborating with the Elders network and providing farmers with future-focused solutions that will allow them to achieve productive, profitable, and sustainable outcomes against the backdrop of a changing climate and increasing attention on sustainability • Technology: our support with the adoption and utilisation of innovative technologies and practices • Research and Development: our active involvement in industry wide research, development and extension Responding to Severe Weather Events Severe weather events can affect the sustainability and productivity of our agribusiness customers. To assist our customers with managing their agribusiness through these events, Elders: • supports clients in managing their productivity through our network of agronomists and livestock production advisors • provides access to technology which supports the efficient distribution of water, nutrients and chemicals • supplies crop protection products and herbicides to manage weeds and pest infestation • supplies general merchandise and equipment required on farm, such as fence posts, personal protective equipment, shade cloths, irrigation equipment, tanks, troughs and fire pumps • facilitates the sale and purchase of water through Elders Water Trading. Environment Agronomic and Livestock Production Advisory Services Elders’ network of agronomists supports more than 3,500 clients across Australia to manage the productivity of their farms. Our agronomists specialise in broadacre, horticulture and viticulture, and provide advice to clients on crop rotation, pest and disease management, water management and soil health. Healthy soil is key to sustainable farming. It enhances plant growth and, as a result, facilitates the removal of carbon dioxide from the atmosphere. It also improves water holding capacity, ensures greater water quality through reduced run-off and erosion and promotes overall biodiversity. During FY24, Elders' agronomists facilitated over 24,000 soil tests for our clients. Our clients gained easier access to specialised services provided by Precision Agriculture (creation of soil management zones, customised soil testing and the identification of key soil constraints), with 11,400 of these soil tests being conducted utilising Precision Agriculture's services. Elders' network of agronomists also support our clients with enhancing on-farm water use efficiency. This is of particular importance given water availability is an issue that many farmers are required to manage. Our agronomists regularly implement and utilise tools such as soil moisture probes, water tank sensors, weather stations and various software to assist primary producers with better managing irrigation scheduling and water use efficiency. 1 2 We continuously review the skill set of our agronomists to ensure they are wellequipped to meet the needs of our clients. Our agronomists are provided with regular training and knowledge through various mediums including online, in field training, industry training, supplier training and the maintenance of formal accreditations like Fertcare.1 During FY24, we conducted a skills audit of our agronomy network and identified opportunities for further training and development, including but not limited to: accreditations, digital tools and ongoing developments in sustainable agriculture. In addition to our agronomy network, our livestock production advisors play a significant role in increasing our clients' on-farm productivity, including by assisting with: • supplementary feed ration and grazing advice • producing livestock in accordance with best practice animal welfare standards • parasite and disease control plans • increasing feed conversion efficiency. Our advisors work with producers across the production cycle to maximise productivity, whilst improving the welfare of animals. 13 Agricultural Technology AgTech is the collective term for physical and digital technologies, along with new chemicals, compounds and formulations, that enable best agricultural practice to be achieved. It acts as a key to unlocking more sustainable farming practices. We provide our customers with access to a range of AgTech products, including farm management software, remote imagery technology and sensors to facilitate remote checking of water levels, irrigation scheduling and tracking and measuring soil moisture. Our efforts in AgTech were recognised in a recent Roy Morgan survey of over 1,000 Australian farmers. Responses from the survey identified Elders as one of the top 3 brands that surveyed farmers associate most with AgTech.2 Elders will continue to support the development and commercialisation of emerging technologies within the agriculture industry through partnerships and participation in programs that enhance uptake of AgTech across the industry. In