December 2023 - Tim McCready

Dynamic Business: ASEAN key to ambitious trade goals (NZ Herald)

December 8, 2023

Dynamic Business: ASEAN key to ambitious trade goals (NZ Herald)

Over the past five years, New Zealand’s economic ties with Asean (the Association of Southeast Asian Nations) have undergone significant growth, from $17.15 billion in 2017 to $27.42b in 2022.

With 10 member states, the union is New Zealand’s third-largest trading partner — we now trade more in a week with Asean than we did in an entire year in the early 1970s.

The National-led Government has set an ambitious trade goal to double the value of our exports within a decade. Despite the region navigating the same economic challenges that echo worldwide, it is clear Asean will be an important component in New Zealand reaching its lofty ambitions.

The NZ Asean Business Alliance Conference in Kuala Lumpur last month saw more than 250 attendees gather from across the region and New Zealand to explore the tremendous opportunities inherent in mutual collaboration. There is a keen interest to do more and a desire from Asean to deepen its ties with New Zealand.

An economic anchor

New Zealand’s top trade official, Vangelis Vitalis, told the conference the region has a role as an “economic anchor”, particularly during the past two years where global markets have seen the highest increase in non-tariff and other forms of direct protectionism.

Highlighting the strength of New Zealand’s trade ties with Asean, Vitalis underscored the significance of the rules-based trading system all member nations honour. There hasn’t been a case brought against a member within the Asean Australia New Zealand Free Trade Agreement (AANZFTA) or the Regional Comprehensive Economic Partnership (RCEP). These agreements have led to the near-complete elimination of trade tariffs for New Zealand in the region.

Vitalis gave an example of how the rules matter and they make a difference to business: “In 2021, we estimated across the Apec region that it was taking up to eight days for products to cross the border. That does not apply between Asean members and New Zealand.

“We have a commitment to move products within 48 hours across our customs borders, and the recent upgrade of the AANZFTA has delivered a commitment of six hours for chilled and high-quality fresh produce. That is a significant advantage that we enjoy in each other’s markets over and above our competitors.”

Next generation of trade

Professorial chair in business in Asia and Director of the Southeast Asia Centre of Asia-Pacific Excellence, Professor Siah Hwee Ang, stressed the pivotal role of Asean in shaping the future of New Zealand’s trade, pointing to the age of its population as an important indicator.

“Two of the largest countries in Asean — the Philippines and Vietnam — have a median age less than 30, and most other nations are not much older,” he said.

“That demographic profile gives access to a substantial number of current and future customers, providing markets that offer 10-20 years of growth potential.”

The digital economy is a particularly prominent area of opportunity for New Zealand, fuelled by Asean’s young population and the rapid adoption of smartphones among the expanding middle class. Also notable is the health and wellness sector, which has emerged as a fast-growing area in the aftermath of the pandemic.

Deputy Minister of Investment, Trade and Industry for Malaysia, Liew Chin Tong, emphasised the pro-active moves global businesses are making to mitigate against ongoing geopolitical uncertainties by adopting “friend-shoring”. This strategic shift involves relocating manufacturing operations to countries viewed as political and economic allies, with India and Asean gaining in prominence.

“Southeast Asia is geopolitically a middle ground,” he said.

“By building a strong middle class in the years to come, it will not just be a production site, but it will be a major market for global businesses.”

Malaysia — a gateway

With a population of almost 34 million and one of Asean’s fastest-growing countries, Malaysia is a large, dynamic market, that is easily accessible to business.

Its blend of Malay, Chinese, Indian, and European cultures is unique. Impressive shopping centres and towering skyscrapers, including the Petronas twin towers, dot the landscape, interspersed with colonial buildings.

The Commonwealth member has a political structure and legal framework largely based on British systems. Its cost-effectiveness, central location and the prevalence of English used in business makes it a great launchpad for expansion into the region.

While many attendees at the conference had not yet visited New Zealand, they had an admiration for and interest in our country and a keen desire to engage in business with us.

Some of this can be traced back to the Colombo Plan, which brought Malaysians to New Zealand for education. Today, many of them hold senior positions in business and government, bringing a valuable network that encourages bilateral collaboration and favourability towards New Zealand that has not been taken advantage of.

Emerging sustainability

What surprised me in Malaysia was the pervasive use of plastic bags. They are prolific at grocery stores, food stalls and markets. Even drinks are served container less in bags.

Despite this cultural norm, the Malaysian Government has committed to phase out plastic bags by 2025. This reflects the increasing environmental awareness in the region and a heightened focus on climate change.

Some of Asean’s largest cities — Jakarta, Bangkok, Manila and Ho Chi Minh City — are at severe risk of permanent flooding if ocean levels continue to rise.

Nine out of 10 countries in the region have committed to achieving net-zero by 2060 or sooner.

During the conference, delegates expressed interest in technologies and services New Zealand could provide in terms of renewable energy and carbon reduction technologies — yet another promising area to help New Zealand meet its ambitious new trade goals!

· The Association of Southeast Asian Nations (Asean) is a union of 10 sovereign states in Southeast Asia: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

· Tim McCready was a guest of the Southeast Asia Centre of Asia-Pacific Excellence and the Malaysia NZ Chamber of Commerce.

Dynamic Business: NZ ministers tout Government’s trade ambitions at US summit (NZ Herald)

December 8, 2023

Dynamic Business: NZ ministers tout Government’s trade ambitions at US summit (NZ Herald)

Key coalition ministers have articulated a unified vision for New Zealand’s future that embraces innovation, value uplift and enhanced diplomatic ties with the United States and beyond.

The have also pledged to undertake a record number of trade missions in the Government’s first term — more than any government in the history of New Zealand.

Speaking at last week’s United States Business Summit, Foreign Affairs Minister Winston Peters and Trade Minister Todd McClay delivered their first major speeches since the Government’s formation to a room packed with business leaders.

Peters outlined specific actions to unlock economic potential, including maximising the value of bilateral trade, resolving barriers to trade and strengthening supply chains. He stressed the importance of collaboration in industries that are key to building a more prosperous and secure future, including critical technologies and space.

He also spoke of the enduring and special relationship between New Zealand and the United States.

Drawing parallels between our shared democratic traditions, he highlighted the shared commitment to values such as human rights, freedom of speech, free and fair trade and the rule of law.

“Because of these common values and democratic traditions, it’s hardly surprising that our global interests so often correspond, and that we have repeatedly worked together in times of international crises and in the face of major global challenges,” he said. “And we will continue to do so.”

Underlining the strategic importance of the Pacific in bilateral relations, Peters commended recent initiatives such as the opening of US embassies, the return of the US Peace Corps and increased security commitments in the region.

However, he called for a more intensified engagement to address strategic and security challenges in the Indo-Pacific region, emphasising a shared interest in stability and prosperity.

McClay echoed the importance of trade as an essential engine for growth and its role in expanding economic opportunities, lifting incomes and strengthening the country’s ability to respond to shocks.

“We therefore have a strong and clear message for our partners,” he said. “New Zealand is open for business. We will engage with you. We will be active offshore to work for New Zealand businesses and to drive investment in both directions.”

McClay noted that Government’s role is much broader than facilitating market access: “It is about shaping the brand and the story behind it. Opening doors, helping to make connections, and supporting New Zealanders to do well on the world stage.”

McClay outlined the new Government’s trade strategy, aiming to drive export value, expand market access and resolve trade barriers.

“I am going to seek urgent advice from officials as to how and what else we can do to supercharge this support to business,” he said. “We are determined to break down the barriers that are such a drag on productivity and growth.”

He recalled that in 2016, one of his first responsibilities as a new trade minister was hosting a 12-country ministerial meeting followed by a ceremony in Auckland for the Trans-Pacific Partnership Agreement.

He underscored the significance of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the best option for the United States to embed itself in the Indo-Pacific economic architecture.

“We will all be aware that the US ultimately decided not to join the agreement,” he said. “It remains my hope to someday be able to welcome them.”

In the meantime, McClay said New Zealand remains focused on other ways in which the US can actively engage in the economic architecture of the Indo-Pacific, particularly through the Indo-Pacific Economic Framework (IPEF).

“On the numbers alone, it is huge: 14 countries, six G20 economies including the US and India, 50 per cent of New Zealand’s exports, 40 per cent of global GDP. To state the obvious, when the US is running with a regional economic initiative of this scale — one that includes rule-making — you can’t afford to not be at the table.”

As New Zealand navigates the shifting tides of trade globally, these two key ministers responsible for New Zealand’s international efforts have signalled a resolute focus on growth and adaptability to deal with whatever global challenges might come our way.

Silver Fern Farms’ Rob Hewett wins Chairperson of the year at Deloitte Top 200 awards (NZ Herald)

December 7, 2023

Silver Fern Farms’ Rob Hewett wins Chairperson of the year at Deloitte Top 200 awards (NZ Herald)

Rob Hewett, a prominent figure in New Zealand’s agribusiness sector, has been honoured as the 2023 Chairperson of the Year at the Deloitte Top 200 awards, celebrating his impressive leadership roles and the business success he has overseen.

Hewett is co-chair of Silver Fern Farms, a leading producer and global marketer of grass-fed red meat, owned in equal partnership by Silver Fern Farms Co-operative (a farmer co-operative that he also chairs) and Shanghai Maling Aquarius.

He is also chair of Farmlands Cooperative, Pioneer Energy, Woolworks, Fern Energy and Haulage.

Hewett has directorships at Pulse Energy and T&G Global.

Additionally, he actively manages a carbon-positive farm and participates in a think-tank for agricultural innovation.

The Deloitte Top 200 judges commend Hewett for blending strong commercial acumen with a deep understanding of agriculture and a profound connection to the land, spanning six generations of his family’s background.

Award judge Ross George says: “Rob has a very clear vision for the businesses he chairs, he communicates that well and maintains solid relationships with his managing directors”.

Describing his style as a chairman, Hewett says he’s collegial, and compares his approach to a traffic director in the boardroom.

“My job is to get the best out of the people around the table, give them opportunities, and shut them down if they start hogging the microphone,” adding that he is also not afraid to make hard decisions where necessary.

The past year was a banner one for Silver Fern Farms and the judges applaud Hewett for playing a significant role in its result, which saw a net profit after tax of $189.3 million, representing an 82 per cent increase.

Hewett says this was an all-time record by a significant margin, and while he points out that part of the result can be attributed to “a rising tide that all boats enjoyed” in the market, he says there is no question a large proportion of it reflected the business’ focus on the end consumer and the co-operative’s commitment to sharing the risk and reward of the operating company’s market performance with farmer suppliers.

A notable success is Silver Fern Farm’s Net Carbon Zero beef, launched in the United States last year. Although sales of this product remain relatively small, it casts a positive light on other areas of the business and demonstrates alignment with the preferences of discerning customers.

“It has great bones and great potential because it is exactly where the market wants us to go,” Hewett says. “Since we launched that product, markets internationally have had some headwinds, but it is still true to say that the attributes that programme has around sustainability and naturalness hold true.”

Silver Fern Farms’ performance has paved the way for its largest-ever investment programme, across a range of projects that will modernise its facilities and embrace digital transformation for long-term sustainability.

As a leader in the agricultural sector, Hewett emphasises the inherent commercial acumen of farmers.

“They are over-indexed in a few areas, but they manage risk on a daily basis without even knowing they are doing it,” he says.

Hewett considers a significant responsibility of his role to be nurturing the next generation of leaders. “We have put a very proactive succession programme in place,” he says.

A governance programme, “To the Core”, initiated by Silver Fern Farms and now adopted by Farmlands and LIC, helps to cultivate a pipeline of emerging talent in the agri-sector.

“That includes reaching into our shareholder constituency and identifying self-starters who have the ability and the time to go on and be governors of the company in the future,” says Hewett.

The Silver Fern Farms Co-operative now has three of its five farmer-elected directors on the board having done the programme, and two of the farmer-elected directors of the partnership board.

“Rob is very commercial, has an international outlook and is familiar with all aspects of global trade,” adds George, chief executive of Direct Capital. “But he is equally at home talking to individual farmers about their issues.”

Reflecting on the partnership with Shanghai Maling, signed in 2016 under his leadership, Hewett acknowledges that there were suspicions from some surrounding investment by a Chinese firm in the early days. But the relationship has stood the test of time.

“How we brought that together is one of the things I am really proud of,” he says. “The benefits we were looking for when the partnership first started have largely delivered.”

“Some of them haven’t. But it is absolutely true to say that where they haven’t delivered, things have changed, and the business is better than it would have been under the original plan anyway.”

Finalist: David Carter

With a remarkable three-decade career at Beca Group and a strong engineering background, David Carter assumed the role of executive chair in 2017.

Beyond his leadership at one of Asia Pacific’s largest independent advisory, design and engineering consultancies, Carter is a director at Meridian Energy, chairs the University of Auckland Foundation and is a guardian of the Aotearoa Circle.

In recognising Carter as a finalist for the Top 200 awards, the judges say he is an embodiment of the Beca Group’s ethos, steering it to impressive global heights. Under his guidance, Beca has expanded to over 4000 staff across nine countries, managing projects in more than 40 nations annually.

“David is equally at home in detail, strategy, governance and culture,” George said.

Carter says his leadership style is rooted in openness, inclusivity and transparency — a set of values he believes is essential in an employee-owned business. With more than 1600 employees as shareholders, Carter emphasises the power of collective direction.

“The ‘we’ is stronger than the ‘me’,” he says, acknowledging the strength derived from shared goals and a united team.

Carter says his longevity at Beca comes as a result of his wide range of interests and the opportunities the business has given him to move into a variety of positions and geographies.

“I’ve stayed in the business because I love people, I believe in its philosophy, and it has allowed me to have a very diverse career.”

The judges note that a pivotal moment in Carter’s legacy was the recent appointment of Beca’s first female chief executive and first non-engineer in the company’s 103-year history, Amelia Linzey.

Carter downplays the emphasis that is placed on historical firsts, asserting that Beca hires 50 per cent non-engineers into the business, and the key focus when recruiting a chief executive was to appoint the best person for the role.

“We are delighted she said yes,” he affirms, noting that the move aligns with the company’s ongoing effort to refresh leadership for the younger generation of owners before it is needed.

The smoothness of this transition stands out as one of the significant highlights of the past year for Carter. “That is your number one role as chair and it has gone as well as I could have imagined,” he reflects.

The judges also commended Carter for his role in promoting environmental sustainability and robust infrastructure in New Zealand.

Carter says working at Beca gives him the luxury of doing that but cautions that the world has yet to grasp the magnitude of the challenge of climate change and how fast it is coming at us over the horizon. He thinks the world hasn’t yet committed to addressing it with the urgency that it needs.

“We cannot keep building bigger seawalls to stop the ocean eroding houses,” Carter says. He advocates for a systemic approach, where the world and the environment are viewed as an interconnected system.

“When you go and visit parts of New Zealand where we have fenced off nature and allowed it to recover, the bird life is just sensational,” he says.

“There is a real opportunity to regenerate and bring nature back inside the borders of our cities.”

Finalist: Scott St John

Scott St John is chair of Fisher & Paykel Healthcare and director for ANZ New Zealand, Mercury, NEXT Foundation, and Fonterra.

His leadership philosophy emphasises the need for boards to have unwavering conviction in the strategic direction of the firms they oversee.

“The board should validate the strategy from management, challenge it, change it if necessary, but leave it up to management to execute on it,” says St John, underlining the delicate balance between strategic oversight and operational execution.

He explains that while directors need to go deep from time to time, they need to take care not to end up managing the company and inadvertently allowing upward delegation to occur. “If you do that, you lose some of the ability to deliver accountability.”

The Top 200 judges recognise St John as a chairperson of the year finalist due to his impactful leadership, particularly in steering Fisher & Paykel Healthcare through the Covid-19 pandemic and giving it the confidence to expand its business during the disruption.

George commends St John’s foresight during the pandemic. “It would have been easy for Fisher & Paykel Healthcare to pull back on growth investment off the back of Covid,” he says.

“Instead, St John ensured his board kept them focused on the long game, not a short-term profit-driven one.”

St John explains that despite the turbulence, Fisher & Paykel Healthcare adhered to its annual planning process that considers a 15-year horizon.

Focus remained steadfast on the long-term plan, driven by a commitment to deliver for patients.

“Right across the board, our eye is relentlessly on what we can deliver long-term, and not making tactical decisions that might enhance the short-term optics of the business,” he says. “It would take an awful lot to knock us off our rails.”

Reflecting on the transition from the Covid period to the subsequent “hangover”, St John highlights that during the pandemic there were great costs involved to supply patients “no matter what”, and the business had to bring hundreds of extra staff in.

“As we moved out of Covid, we were left with a bunch of legacy costs as we adjusted back to the way we were running the business with the long-term plan in mind,” he says.

“During that period we could have chopped costs and restored margin. But instead, the business headed in the opposite direction, consistent with its long-term plan.

“We are creating new products and developing new markets, staffing that up appropriately, and ensuring that our R&D stays well ahead of the game. There was never a thought of doing it any different.”

To help deliver on that ambition, Fisher & Paykel Healthcare is expanding its footprint by planning a second New Zealand campus in Auckland and expanding its manufacturing operations with new facilities in Mexico and China.

It has also added strong environmental and social responsibility goals and targets into its annual business plans.

While St John’s governance roles span a broad range of sectors, a consistent thread is his belief in the importance of working with businesses that are important to New Zealand.

“Beyond that, I have got to feel a sense of affinity with the businesses I’m involved in,” he says. “I have to believe in them as well as the people I am sitting around the table with. That is tremendously important.”

The Chairperson of the Year award is sponsored by Forsyth Barr.

Xero, Tourism Holdings, Grant Webster, Sir Richard Taylor, NZME among Deloitte Top 200 winners (NZ Herald)

December 7, 2023

Xero, Tourism Holdings, Grant Webster, Sir Richard Taylor, NZME among Deloitte Top 200 winners (NZ Herald)

Cloud accounting heavyweight Xero has been recognised as the Company of the Year in the 2023 Deloitte Top 200 Awards for its transformative year marked by significant milestones.

Winners in the prestigious Deloitte Top 200 Awards were revealed tonight at Auckland’s Viaduct Events Centre. Now in its 34th year, the highly anticipated black-tie dinner event saw close to 900 business leaders gather to celebrate the best of New Zealand business.

This year, the awards recognise outstanding agility, resilience and results despite the pressures that business leaders have faced. Notably, they have navigated through the persistent cost-of-living crisis, inflationary pressures, geopolitical complexities, global unrest, and the severe weather events earlier this year.

After a difficult year in 2022, Xero completed a significant restructuring and saw strong revenue, subscriber, and share price growth. Founder Rod Drury formally stepped down from the board of directors after 17 years, and Sukhinder Singh Cassidy has taken on the role of chief executive.

Last month, Xero delivered a strong bottom-line result for the half-year to September 30, reporting a revenue rise of 21 per cent to $799.5 million and net profit increasing to $54.1m, compared to a net loss of $16.1m in the first half of the previous financial year.

The panel of high-profile judges, convened by NZME business editorial director Fran O’Sullivan, note Xero’s outstanding performance.

“Xero is an extraordinary Australasian success story and our leading high-tech success unicorn. Its current market capitalisation of over $15 billion makes it the most valuable NZ company, and one of the top 20 companies on the ASX,” they say.

“Xero has maintained strong margins and is keeping a disciplined focus on costs. This resulted in adjusted Ebitda up by 44 per cent in 2023 over 2022 and a share uplift of 44 per cent for the year ended September 30, 2023.”

Grant Webster, CEO of Tourism Holdings, was named Chief Executive Officer of the Year for his exceptional resilience and strategic prowess, particularly during the Covid-19 pandemic.

His leadership was crucial in navigating the world’s largest campervan rental company through a drastic downturn in international travel. By selling assets to protect shareholder value, he achieved record results, showcasing his ability to make tough yet effective decisions.

“Webster’s 15-year tenure as CEO has been defined by steering the company through major crises and positioning Tourism Holdings for future growth,” say the judges. “Tourism Holdings’ strategic expansion, combined with Webster’s adept relationship-building, spurred a remarkable financial recovery: turning a $2.1m loss into a $49.9m profit and a 92 per cent increase in revenue.”

“His legacy is that of a transformative leader who successfully converted challenges into opportunities for innovation and growth.”

The Visionary Leader award is the only one given without finalists. This year, the award went to the creative duo behind Wētā Workshop, Sir Richard Taylor and Tania Rodger. Renowned for their award-winning work on blockbuster films, their influence extends to tourist attractions, a digital game studio, and cultural collaborations in China.

“Sir Richard and Tania’s passion and creativity has brought imaginations to life, inspired millions, and put New Zealand’s creative industry on the world map,” say the judges. “They are New Zealand icons and true visionary leaders.”

Chairperson of the Year has been awarded to Rob Hewett. A prominent figure in New Zealand’s agribusiness sector, Hewett is co-chair of grass-fed red meat producer and marketer Silver Fern Farms and chair of Silver Fern Farms Co-operative. He is also chair of Farmlands Cooperative, Pioneer Energy, Woolworks, Fern Energy and Haulage and has directorships at Pulse Energy and T&G Global.

“Hewett has a very clear vision for the businesses he chairs, he communicates that well and maintains solid relationships with his managing directors,” the judges say.

They recognise that last year was a banner year for Silver Fern Farms and applaud Hewett for playing a significant role in its result, which saw a net profit after tax of $189.3m, representing an 82 per cent increase.

Xero’s chief financial officer, Kirsty Godfrey-Billy, was also recognised last night, taking out the award for Chief Financial Officer of the Year.

The judges say that during Godfrey-Billy’s five years as CFO, Xero New Zealand’s revenue has increased from about $550m to $1.4b – up 250 per cent.

“Godfrey-Billy is respected by the market, board, management and other stakeholders for her financial management over this period of growth, which includes developing and maintaining financing and tax management in multiple countries,” they say.

“During her time as CFO, the company has moved from a start-up approach in which revenue is paramount, to a more mature company, where revenue and profit growth are both important.”

Port of Auckland has been named winner of the Most Improved Performance award, for its remarkable turnaround in profitability and operations.

“By establishing effective strategies, the port has improved its financials, union relationships, health and safety practices, and operational performance,” the judges say. “Its profits and revenue have skyrocketed – with profit up $50.7m on last year and revenue increasing from $265.3m to $320.2m. The port has nearly doubled the dividend it pays to Auckland Council, which really demonstrates its commitment to delivering returns to shareholders.”

Natural health products provider Comvita has been recognised with the Best Growth Strategy award. The judges say its recent transformation programme, focused on sustainability and storytelling, has helped consumers connect with the brand, and secured rapid growth for the company.

“Comvita has seen strong business performance in China, its key growth market, where it has grown its revenue to $100m. It has also increased its e-commerce share of total sales from 23 per cent to 42 per cent.”

Penny Dell, Treasurer at ANZ, has been named Young Executive of the Year. She is the youngest and first woman to hold the role of Treasurer which involves the management of the funding, capital and liquidity of the bank’s $189b balance sheet – a critical, strategic position for New Zealand’s largest bank.

The judges say Dell is performing at a high level within a very large organisation: “She holds a position of great responsibility within the ANZ organisation and is clearly recognised as a valuable asset”.

Her time in the job has been through a period of significant market volatility. Dell has been responsible for completing many successful funding and capital transactions that have given her bank a competitive advantage.

NZME’s Te Rito journalism project is the winner of the Diversity & Inclusion Leadership award, a 12-month cadetship programme designed to enhance newsroom diversity, specifically focusing on Māori, Pasifika, ethnic, LGBTQIA+, and disabled voices. This initiative aims to provide entry points into media careers across various platforms, including digital, print, television, radio, and podcasts.

The judges were impressed by the novelty of the concept, the collaboration with other media industry players and the potential diversity and inclusion benefits to the nation. They say the partnership and the continuous learning embedded in the programme have ensured it is sustainable.

Gentailer Contact has received the Sustainability Leadership award for its dedication to spearheading New Zealand’s decarbonisation. It has more than $1.2b worth of renewable generation projects currently under construction, and a significant portfolio of further potential geothermal, wind, solar, and battery investments in the pipeline.

“We are impressed that Contact’s efforts in the space are driven and supported by leadership and filter across the national business,” the judges say. “They have created a galvanising framework for decarbonisation that attracts diverse talent and genuine innovations for sustainability actions.”

The Deloitte Top 200 awards include a special Judges’ Award. This award enables the judges to highlight performance they feel is of importance to the business community.

This year, there was a unanimous decision for John Loughlin to receive this award, who has dedicated his career to New Zealand’s agribusiness and infrastructure sectors.

With a governance career spanning three decades, Loughlin serves on a number of boards across critical industries, including Port of Napier, Toll New Zealand, Augusta Capital, Metlifecare, AgResearch, Prism Group Holdings, Central Lines, Dairy Technology Services, KiwiRail and Hop Revolution.

“Loughlin is an extremely talented and highly regarded director who relishes digging into companies and helping them to reach their full potential,” the judges say. “He particularly excels when providing leadership to industries that are challenged.”

“Loughlin’s often finds himself chair at companies he first joined as a director, which shows just how effective and well-regarded he is around board tables. It’s really no surprise that he’s in high demand for the country’s senior governance roles.”

Deloitte chief executive Mike Horne reflected on the last year and its effect on the business community, “with a cost-of-living crisis, inflation, global unrest, and severe weather events, our communities and our economy have taken a beating, but it’s within this challenging landscape that we’ve seen the most resilient and innovative organisations emerge successful.”

“The businesses recognised on the Top 200 have displayed innovative and thoughtful solutions, including creatively rethinking products and services, that have undoubtedly ensured the long-term survival of their businesses, and it’s what has made them our ‘champions of adaptability.’

Returning in her role as judging convener for the 34th year of the awards, NZME’s Fran O’Sullivan said “the Top 200 gives us an opportunity to celebrate unmatched leadership and team performances from the best in New Zealand business.”

“It takes a lot of business prowess to deliver strong results in challenging times, and even more to be at the forefront of our economy, committed to leading the way.”

Deloitte Top 200 Index

The Deloitte Top 200 Index consists of New Zealand’s largest entities ranked by revenue. These include publicly listed companies, large unlisted entities, NZ subsidiaries and branches of overseas companies and the commercial operations of Māori entities. It also includes producer boards, co-operatives, local authority trading enterprises and state-owned enterprises.

An overview of the Top 200 Index as well as New Zealand’s Top 30 finance companies has been included toward the back of this report — showing revenue, profitability, efficiency and more. These numbers offer an insight into how the biggest companies in New Zealand operate and are accompanied by explanations and insight from the Herald’s team of business reporters.

The high-level view of the Top 200 this year shows total revenues for Top 200 companies increasing by 12.4 per cent. This compares to a 9.8 per cent increase in 2022. Underlying earnings (Ebitda) increased 8.1 per cent, and total profits after tax also increased 4.0 per cent year-on-year.

Year-on-year assets for the Top 30 finance companies have grown 9.3 per cent, with cumulative profits increasing by 11.4 per cent.

ANZ continues to be the largest bank with assets of $201b, ahead of second placed Westpac by $65b. ANZ also outpaces all other banks in terms of profit and equity.

Deloitte Top 200: Contact Energy wins Sustainability Leadership Award (NZ Herald)

December 7, 2023

Deloitte Top 200: Contact Energy wins Sustainability Leadership Award (NZ Herald)

Contact is dedicated to playing its role in creating a more sustainable future for New Zealand by leading the country’s decarbonisation efforts, and is making significant progress to achieving net-zero carbon by 2030.

This long-standing commitment to sustainability from the gentailer, coupled with the actions it has made, made it a stand-out winner for the Deloitte Top 200 Sustainability Leadership Award. The award recognises exemplary governance, leadership, accountability and long-term perspectives from companies as they evolve and adapt their business models to support and drive sustainable development.

The Deloitte Top 200 judges commended Contact for its significant efforts to decommission assets that generate electricity from fossil fuels, signifying a clear shift towards renewable energy sources and a clear intent to help decarbonise New Zealand, despite the absence of an overarching national energy strategy.

“We are impressed that Contact’s efforts in the space are driven and supported by leadership and filter across the national business. They have created a galvanising framework for decarbonisation that attracts diverse talent and genuine innovations for sustainability actions,” said Katie Beith, one of the judges in this award category.

Contact is actively investing in the future of sustainable energy with $1.2 billion in renewable generation currently under construction. This pipeline of projects includes geothermal, solar, wind and grid-scale batteries, which will see it not only reduce its carbon profile but also assist its customers in their decarbonisation efforts.

Contact chief executive Mike Fuge is enthusiastic about what this means for the future of New Zealand. “These investments are key to enabling Aotearoa New Zealand to meet its decarbonisation goals,” he says.

“We expect our generation portfolio to be more than 95 per cent renewable by FY27 and have set the ambitious goal to achieve net-zero emissions from our generation operations by 2035.”

Contact’s efforts have already boosted its renewable energy capacity to more than 80 per cent and led to a remarkable 33 per cent reduction in greenhouse gas emissions from generation since 2018.

Its world-class geothermal development near Taupō, Tauhara, will come on-stream in 2024.

It will be Contact’s sixth geothermal power station in the Taupō area.

Contact now has a pipeline of projects ahead of it in Taupō, including an expansion of its Te Huka geothermal plant and a replacement of the 1950s-era Wairākei geothermal power station.

“The wonderful thing about having a pipeline of projects around Tauhara is we can attract the workforce in for a project, and they get the opportunity to roll off on to the next project,” says Fuge.

The judges say a particularly commendable aspect of Contact’s sustainability efforts is its commitment to meaningful engagement with iwi and hapū, especially at the Tauhara plant, which shows a deep respect for indigenous involvement in sustainable energy projects.

In addition to its geothermal projects, Contact is pursuing other renewable energy projects, including a solar project at Christchurch Airport which will have around 300,000 solar panels on 300 hectares of land adjacent to the airport’s runways.

It is looking to develop a wind farm on the elevated land east of Wyndham in Southland.

This would be Contact’s first wind farm project and, with a plan for about 55 turbines generating as much as 300 megawatts of power, it would be New Zealand’s largest.

Contact’s decarbonisation journey has not only propelled the company toward a more sustainable future, but has also fostered engagement in sustainability across the organisation and helped to bring diverse talent on board.

“Staff engagement, as we have gone on this journey, has kept steadily rising and rising.

“This is a once-in-a-generation opportunity to be involved in the energy industry throughout this transition, and making sure you make yourself as attractive as possible is really critical.”

Finalist: Mercury

Mercury generates 100 per cent renewable electricity from hydro, geothermal and wind sources. The energy gentailer’s sites span the Waikato River, Central Plateau, Manawatū, South Taranaki, Otago and Southland, and it continues to invest in low-carbon electricity generation as part of its transition to a low-emissions, climate-resilient future.

Mercury’s dedication to sustainability over a long period of time earned it recognition as a finalist for the Top 200 Sustainability Leadership Award. Since 2015, it has steadily moved away from thermal generation, seeing a decrease in total emissions by 41 per cent.

Mercury general manager of sustainability Lucie Drummond says sustainability has been at the core of Mercury’s mission for a long time.

“One of the biggest drivers for us has been staying focused on taking an action-oriented approach to support New Zealand in the global transition that is occurring. We recognise our role, and we’re looking at ways we can be an authentic part of this.”

Mercury’s climate transition action plan sets out ambitious measures and targets aimed at achieving emissions reductions across the business.

Katie Beith says that in addition to having a clear plan, Mercury has recently reworked its purpose and long-term aspirations, which has resulted in sustainability now being strategically integrated into the business.

“This can be evidenced by the way sustainability has been embedded into the organisation’s culture, and it is clear Mercury’s processes allow ideas to come forward from staff,” says Beith.

“The team has made a significant effort to be open about their commitments and activities, as well as the real struggles they face in the transition, and Mercury strongly believes this is key to getting people engaged.”

Drummond emphasises that sustainability is a team effort, and no one person or organisation can achieve it alone. “We have tried to never have sustainability as a parallel universe that only a few people are involved in.”

“When we refreshed our long-term aspirations, we took a really holistic approach to the way we think about what success looks like in the future.”

Mercury collaborates with iwi in different ways, including having commercial partnerships with Māori land trusts for its geothermal developments.

It has also established and supported a range of programmes with iwi and other regional organisations, including educational initiatives, environmental and ecological restoration projects and a range of Māori cultural support initiatives.

Mercury is actively supporting its customers to reduce their emissions. Partnerships include a 10-year agreement with Ryman Healthcare to help underwrite construction of a solar power development in Northland and a 15-year agreement with Amazon Web Services to help achieve its target of net-zero carbon by 2040 by utilising half the capacity from Mercury’s Turitea South wind farm.

Finalist: KMD Brands

KMD Brands is a global outdoor, lifestyle and sports company consisting of three iconic brands: Kathmandu, Rip Curl and Oboz.

Founded under the Kathmandu brand in 1987, the company rebranded to KMD Brands in 2022 as part of its transformation to a global multi-channel business. This is KMD Brands’ fourth consecutive year as a finalist in the Sustainability Leadership category. It won this category in both 2021 and 2022.

In an era where the fashion industry faces increased scrutiny regarding material traceability, waste and offshore work practices, the judges recognise KMD Brands’ work as it continues to carve a path as a global leader with a genuine and mature response to sustainability.

Kathmandu first became a certified B Corporation in 2019 and was re-certified again this year. Additionally, both Rip Curl and Oboz achieved B Corp certification for the first time in 2023, making all individual brands — as well as KMD Brands itself — certified B Corps.

The certification requires independent verification of globally recognised high standards of social and environmental performance, public transparency and accountability. KMD Brands is one of the first multi-national companies in Australia and New Zealand to achieve individual certification for all its brands and is one of only 45 publicly traded companies globally that are certified.

KMD Brands chief legal and ESG officer Frances Blundell says the group and each of its brands are complex businesses, so the organisation is very proud that it could come together to achieve this collective goal. “It was the culmination of multiple years of planning and initiatives; requiring input and effort from a wide range of internal stakeholders across our business,” she says.

Katie Beith says KMD Brands’ efforts in B Corp show that alongside its innovation in its clothing and technical gear, it is committed to making its sustainability strategy part of everyone’s day-to-day activities, including at the store level, the supplier level and the customer level.

“KMD Brands is creating products that are durable and long-lasting. Circularity principles, climate and communities are the three key pillars of its sustainability focus,” she says.

As part of its commitment to circularity, KMD Brands has been introducing new programmes for repurposing and repairing old or damaged products. With its Rip Curl “take back” wetsuit recycling scheme, introduced in 2018, wetsuits from every brand are repurposed into soft-fall matting. It has been expanded across five countries and diverted more than 24,000kg of neoprene from landfill.

Rip Curl’s own wetsuit factory in Thailand offset 100 per cent of its operational emissions in 2021 and 2022, and diverted around 130 tonnes of offcuts from landfill, repurposing them into carpet underlay.

KMD Brands extends its sustainability focus beyond its own operations, engaging with its suppliers to help them meet ambitious sustainability goals by identifying problematic areas and working with them to find resolutions.

It recently held its first ESG conference with suppliers in Bangladesh, aimed at helping the business better understand how it can work in partnership to enhance social and environmental impact.

The Sustainability Leadership Award is sponsored by Deloitte.