Challenges, celebrations and change
The 2020-21 year was both challenging and promising as we, like many other companies and organisations, returned from COVID-19 lockdowns to face a new normal imposed on us and as shaped by us.
With support from the Government we were able to maintain our science capability throughout the year. While COVID-19 delayed the joint MBIE-Scion work on long-term funding solutions for Scion we did complete the penultimate step in this work, which was the external science review. This review, indeed, validated our capability and future direction. We look forward to exploring the options identified to address our funding going forward.
The science skills shortage resulting from border restrictions was challenging and continues to be so. Historically, Scion has relied on attracting more skills to New Zealand to enhance the expertise available here. Currently only 60 per cent of our scientists are homegrown, and they work alongside colleagues from Europe, USA, Asia, Middle East and Latin America. While we have initiatives to develop domestic research talent, Scion must continue to import additional skills to enable excellent science and upskill our local workforce. At the same time, we are at risk of losing our valuable and talented visa-holding scientists for whom the situation remains stressful as their pathway to residency is long, unknown and expensive.
Despite these challenges, we had much to celebrate in the year. Our proud moments were the honour bestowed on us by Ngā Hapū e Toru, Ngāti Hurungaterangi, Ngāti Taeotu me Ngāti Te Kahu o Ngāti Whakaue, who blessed and named our new innovation building in October 2020 followed by the official opening of the building – Te Whare Nui o Tuteata – by the Prime Minister in March 2021. As our new front door, Te Whare Nui o Tuteata, represents what is possible with wood when imagination, belief and skill combine.
New Zealand’s planted forests, which give us wood and much more, is where our nation needs to look to help shape a sustainable future that responds to global and local forces for economic and environmental change. We see this happening by valuing the forestry sector as a rich strategic resource.
Our right tree, right place, right purpose approach has our research focused on the things that matter for New Zealanders – enhancing indigenous forestry, mitigating climate change and improving environmental outcomes, and replacing the petrochemical based economy with one that is circular and biobased providing truly sustainable processes and products.
Some highlights of our research concluded or ongoing in the 2020-21 year are described in this report including the roll out of Ellepot propagation technology to efficiently supply trees for forestry, revegetation and restoration projects. Industry partners involved will benefit from easier, faster and cheaper planting.
Tested over years by Scion entomologists, a biological control agent for the destructive giant willow aphid was approved for release in New Zealand. Monitoring showed that not only did the agent – a tiny parasitoid wasp – overwinter, it multiplied exponentially with phenomenal spread. Beekeepers, river managers, soil conservationists and farmers directly benefit from this success.
A 30-year experimental monitoring of forest ecosystem nutrient levels and forest productivity on sites throughout New Zealand was competed by Scion scientists. The results, published in 2021, showed that soil nutrient levels and forest productivity can be maintained with site-specific management. The knowledge gained has led to changes in forest management and strengthened our relationship with the industry. The diverse portfolio of academic papers from these trials, as part of a global ‘Long Term Site Productivity’ network, has reinforced Scion’s reputation as a leader in forestry science.
Puruki Experimental Forest, managed by Scion, is an exemplar of a sustainably managed, highly productive radiata pine planted forest that also delivers multiple ecosystem benefits. Results from Puruki have been critical to development of nationally important tools, including C-Change, used for government carbon reporting, and the nutrient balance model NuBalM.
From research into growing forests sustainably, we also apply our science capability into manufacturing sustainably. A collaboration using our wood pulping expertise resulted in a novel seaweed gel product poised to take off. Our approach with partner AgriSea New Zealand will accelerate new, domestic nanocellulose-based business opportunities playing an important part of the emerging high-value biomanufacturing sector.
Our “From rags to roads” story introduces our work with textile recycling company Usedfully® where textile fibre is processed into unusual, yet very promising applications such as roading. Among the benefits of diverting textile waste from landfill is the potential for substantial reduction in GHG emissions.
COVID-19 has continued to be front of mind for everyone, so it is pleasing to report on our contribution to the fight against this pandemic. Scion’s biotechnology team has been working with CVC (COVID-19 Vaccine Corporation Ltd) on an experimental vaccine, which is now in pre-clinical testing.
Alongside the delivery of excellent science, our staff were engaged in co-designing our organisational realignment that proceeded throughout the year. The purpose of this reshaping was to ensure science capability and supporting systems and processes are aligned with our “Strategy to 2030”. We recognise that the process was unsettling and wish to thank all Scion employees for their patience and understanding. Now with the new science operating model in place, and the functional/support model almost complete we look forward to next year where we embed new ways of working.
Our revenue exceeded our expectations this year and coupled with the COVID-19 response and recovery funding (CRRF) support of $4.8 million resulted in total revenue of $61.1 million, up 5.5 per cent or $3.2 million on the prior year. Given the delay in the long-term funding review we continued our cost containment leading to a profit after tax of $4.7 million, similar to last year’s $5.4 million result.
The next financial year is expected to have its challenges as we aim to grow our revenue and despite the CRRF coming to an end we are experiencing delays, resource limitations and cost escalation because of the disruption the global pandemic continues to cause.
Like last year, we again wish to express our pride in Scion’s people for delivering excellent results in an environment of continued change. Our new leaders, appointed both within and externally, embraced their new roles quickly and provided a solid foundation for Scion to identify and prioritise the future research needed to bring maximum benefit for New Zealand and its people.
We also thank retiring directors Dr Barry O’Neil and Colleen Neville who both contributed hugely to Scion’s direction and growth over the terms they served.
To all our customers and partners, we sincerely thank you for your contribution to Scion throughout the year.
Dr Helen Anderson QSO
Chair
Dr Julian Elder
Chief Executive