Chair & Chief Executive's review
Welcome to Landcare Research’s Annual Report for the year to 30th June 2015. We are delighted to report a very positive year in which our people have worked closely with stakeholders to produce world class science that will benefit our society, the natural environment and the economy.
Landcare Research also met its financial targets for the year in a difficult operating environment and contributed strongly to new structural initiatives in the New Zealand science sector.
Vision and Mission
Our vision is that science leads to stronger social, economic and cultural development while enhancing and protecting our natural environment, both now and for future generations. Our mission is to combine our efforts with those of others to achieve outcomes that New Zealand needs for a sustainable future.
Landcare Research is an integrator – across organisations and scientific disciplines, across paddock boundaries and landscapes, across cultures and countries, and across timeframes from past to future. This reflects the fact that the natural environment affects many aspects of our lives over long timeframes. Its issues are complex and global, involving social, economic and cultural concerns, not just at a place or point in time.
Strategic Direction
This year we launched Strategy 2017, which set our strategic priorities for enhancing science impact and ensuring Landcare Research’s financial resilience. Strategy 2017 puts our primary focus on the value of our science to the public sector – central and local government. That involvement with government policy and its implementation enables us to bring very relevant expertise to the primary sector and to the issues of being internationally competitive and maintaining ‘social licence to operate.’ Our special affinity with Māori aspirations for sustainable land development is also identified in Strategy 2017 and we are responding to the growing desire of Māori organisations to engage with science and research. The clearer focus of Strategy 2017 has resulted in stronger financial performance compared to recent years.
Innovation and Impact
Reflecting on a very productive year, we are proud of innovations and impacts created by Landcare Research. Some of the Core-funded innovations are summarised in this report (with full case studies available online). However, innovation is also integral to our other research ‒ here are some of the best examples from 2014/15.
Environmental reporting: one of our senior scientists was seconded to MfE to lead the land domain in the 2015 New Zealand State of Environment Report. Our spatial informatics research and National Land Resource Centre have strongly supported environmental reporting and data developments for central and local government.
Water reforms: our NZFARM and LUMASS economic/ environmental models helped central and local government to model the impacts of water management policies, while our soil research and SedNetNZ modelling played a key role in helping set environmental limits for fresh water.
Māori development: working with Māori trusts and incorporations, we have used our land knowledge and understanding of Māori cultural aspirations to support the sustainable development of Māori-owned land.
Biosecurity risks: we have used DNA tools and our Nationally Significant Collections to support MPI and industry in responding to serious pest incursions and outbreaks, e.g. Queensland fruit fly and kauri dieback disease.
Pest control and ‘Freedom from TB’: we have developed large-scale pest control techniques that have assisted TBfree New Zealand in combatting TB vectors (principally possums) with more efficient use of poisons, and knowing when an area can be reliably declared free from TB in wildlife. We have worked closely with communities that are potentially impacted by control operations and also highlighted when and where communities can play a strong role in helping with pest control efforts.
National collections: we have greatly enhanced the accessibility of the information they contain through development of online access, e.g. e-Biota, e-Flora.
Weed biocontrol: our biocontrol group calculated the major cost/benefit gains from previous programmes that have significantly reduced ragwort and St. John’s Wort using introduced insect biocontrol agents. New releases in 2014/15 included a rust (fungus) for Lantana.
Next generation biodiversity assessment: we are continuing to develop DNA tools for characterising biodiversity at the ecosystem level as a tool for government agencies and businesses wanting measures of change. This project is an MBIE Smart Idea.
S-map Online: our soils knowledge and open-access digital soil data are being used widely as an input to farm nutrient modelling and planning. Use of S-map Online has increased dramatically.
Commercialisation: our soils and sensor technology is being developed in the irrigation market in the USA.
International: we commenced two major MFAT-funded projects focused on building quarantine capability and catchment management in Indonesia and Ecuador, respectively.
National Science Challenges
National Science Challenges represent a step-change in collaboration and ambition for New Zealand science. We are delighted to be the host of the New Zealand’s Biological Heritage Challenge, which aims to reverse the decline of New Zealand’s biological heritage, improve our biosecurity and enhance our resilience to harmful organisms. Biological heritage includes what is natural to New Zealand and the imported species on which our economy depends heavily. Our Board of Directors is accountable to our shareholding Ministers for delivering the $26 million Challenge contract, which we signed with MBIE during the year.
The Challenge brings together 17 collaborating parties including CRIs, universities, DOC and MPI. They will align science and other activities, pushing the boundaries of what we think can be achieved. It is an exciting philosophy that goes beyond business as usual. We are especially delighted to see Dr Andrea Byrom from Landcare Research appointed as Director of the Challenge. Our Dr Phil Lyver is a kaihautu mātauranga to the Challenge and our Dr Thomas Buckley leads the biodiversity assessment theme.
Landcare Research is also a collaborating party in the Our Land and Water Challenge and the Deep South Challenge, contributing our expertise in land, land development and Māori science; and we lead a community-based project on kauri dieback in the Nation of Curious Minds Project.
Lincoln Hub and the Primary Sector
Landcare Research has been a partner in the Hub concept since its inception in 2011. We see the Hub meeting New Zealand’s aspirations for primary sector development by achieving a greater level of integration between research and development, tertiary education and industry. A major focus during the year has been development of Hub building plans. Progress has been made with integrating science and plans for a Joint Graduate School.
Maori Science
Landcare Research has a strong affinity with Māori attitudes towards sustainable land development and protection of taonga (culturally significant) flora, fauna, fungi and places. Our partnerships with Māori organisations have deep roots and are now extending into new relationships with agribusiness. This reflects their desire to engage with science to develop sustainable options for their land assets and to produce successful products for global markets.
To guide us on this path we have created a new role of General Manager Māori Development and are very pleased to have appointed Keith Ikin (Ngāti Maniopoto). His deep, practical understanding of Māori agri-business and his commitment to the principles of manaakitanga, kaitiakitanga and rangatiratanga are strongly aligned to our goals and our research. We have also recruited three additional Māori researchers who bring exciting new skills to our work, integrating across science and mātauranga (traditional Māori knowledge).
Our People
Our staff are our greatest asset and advocates, each passionate about their area of expertise. We are committed to ensuring that our people continue to perform as effectively as possible. This year we initiated a Leadership Development Programme, building skills needed both within our organisation and in the wider science sector where we collaborate. We also assist staff to develop their science skills and networks through presenting at international conferences and publishing in international journals. We continue to support the next generation by investing in senior scientist time supervising over 80 doctoral and masters students at a number of universities.
We are also committed to operating a safe working environment and all staff going home each day safe and well. This year we initiated a well-being programme that provides a series of activities and personal assessments relating to wellness at home and in our personal lives. Uptake of the programme has been pleasing. We also commissioned an external audit of our safety policies and practice, which will be reported in the new year. Our directors signed a personal commitment to the organisation’s health and safety goals during the year and the Board takes a vigilant and closely engaged stance on these matters.
Financial Performance
Landcare Research performed very well, exceeding revenue and profit targets in its parent (science) business and exceeding profit and return on equity targets at the group level (including the Enviro-Mark Solutions subsidiary). Parent revenue of $55.9m (budget $55.1m) was 7.3% up on the previous year ($52.1m). This was achieved in spite of continuing budget pressure on our major clients. Revenue growth was achieved across all of our market sectors and also from the new New Zealand’s Biological Heritage National Science Challenge.
At the group level our return on investment was 7.2% (budget 6.8%) before re-investment in science. Our group level EBIT ($2.2m) included a $0.7m re-structuring cost.
Enviro-Mark Solutions
Enviro-Mark Solutions is a wholly-owned subsidiary. Their programmes (CEMARS® and carboNZeroCertTM) continue to be recognised internationally as ‘best in class’ and our advice is called upon by overseas governments. Although growth in this area of the business in New Zealand has been slower than anticipated, client retention in the business is very high (>90%), reflecting a high quality product and commitment by our clients. Growth continues in the UK though our partner, Achilles Information, and also in Chile. Enviro-Mark Solutions and Landcare Research made submissions to the New Zealand Government on the choice of post-2020 climate change commitment.
Board Appointments
At the end of the year we said farewell to Peter Schuyt, chair of the Board for three years, at the end of his term. Peter had been a director for six years and brought strong leadership to the Board. This year we welcome Professor Caroline Saunders, Lincoln University, and Dr Paul Reynolds, former Chief Executive at the Ministry for the Environment. We are excited by the dynamism and insights that both will bring from their very relevant experience.
In conclusion, we wish to thank our staff and our stakeholders for their support and dedication to the role that Landcare Research plays in New Zealand. We start the year in a strong position and are eager to expand on our successes to develop new initiatives and new partnerships for the good of our country and its people.
Jane Taylor
Chair
Dr Richard Gordon
Chief Executive