Good morning, ladies and gentlemen. I'm Peter Bush, Chairman of the Inghams Group Limited, and on behalf of the board, our management team, and our 8,000 staff, I'd like to welcome you and all shareholders and guests to our 2021 annual general meeting. It's now 10:00 A.M., and there being a quorum present, I declare the 2021 annual general meeting of the Inghams Group Limited open. Today's virtual meeting reflects our response to the government's restrictions relating to travel and public gatherings that were in place when planning this year's meeting, plus our ongoing commitment to keeping stakeholders safe. We've done all we can to ensure this AGM is as interactive as possible, and we look forward to the time when we can meet again in person. The agenda for today's meeting is as follows. I will give my chairman's address.
Our Chief Executive and Managing Director, Andrew Reeves, will then give his address. I will then move to the formal items of business and resolutions as set out in our Notice of Meeting. Once concluded, we will open the meeting to general business and questions. First, some comments on the logistics of our meeting from Helen Nash, Director and Chair of People and Remuneration Committee. Thanks, Helen.
Good morning once again, ladies and gentlemen. Today's meeting is being hosted using the Lumi platform. The system enables shareholders, proxies, and guests to attend the meeting virtually via a live webcast and enables shareholders and proxies to ask questions and submit their votes during the meeting. A guide to the online meeting was lodged with the ASX and has also been made available on the Investor Centre on our website. As the meeting has commenced, eligible participants can submit written questions at any time, and we will do our best to answer all questions at the relevant time during the meeting. We kindly request that participants limit the number of questions per topic to three. To ask a question, select the Messaging tab at the top of the screen as shown here. At the top of that page, there is a section for you to type your question.
Once you've finished typing, please select the arrow symbol to send. If time constraints prevent us from answering all questions received today, responses to unanswered questions will be posted in the Investor Centre on the Inghams website after the meeting. We would like to thank shareholders who took the opportunity to submit questions in advance of today's AGM. These questions have been reviewed and will be responded to either in the course of the presentation or when we address the relevant items of business. Any questions received from shareholders prior to the AGM or online today may also be aggregated where the questions are similar. For those shareholders who wish to ask a verbal question, an audio question facility is also available. To use this option, please pause the broadcast and select the link found under Asking Audio Questions.
A new page will open where you will be prompted to enter your name and the topic of your question before being connected. You will be able to listen to the meeting while waiting to be introduced to the meeting. Once you've been introduced, you can then ask your question. If you're eligible to vote at this meeting, a Voting tab will appear on your screen. Selecting this tab will bring up a list of resolutions and the voting options for each. To cast your vote, simply select the desired option and your vote will be automatically recorded. You also have the ability to change your vote up until the time voting is declared closed. If you experience technical difficulties using the online platform, please call the number shown at the bottom of the screen for assistance.
In the unlikely event we experience technical difficulties in broadcasting the AGM to shareholders, we will pause the meeting and aim to recommence at the earliest opportunity. If these difficulties persist, we will adjourn the meeting and lodge the adjournment details with the ASX and publish them on our website's Investor Centre. I would now like to hand back to the Chair.
Thank you, Helen, and I hope everybody was able to understand what they can do to participate in the meeting. I now declare voting open on all items of business, and you may submit your votes at any time, and I will give a warning to alert that voting will be closing. The final voting results will be released to the market as soon as they are available after voting has closed. I'm joined in the meeting today by our board and some of the management team and would like to introduce them. Non-Executive Director and Chair of the Finance and Audit Committee, Michael Ihlein. Non-Executive Director and Chair of the Risk and Sustainability Committee, Jackie McArthur. Non-Executive Director and Chair of the Remuneration Committee, Helen Nash, who you just heard from. Non-Executive Director, Rob Gordon. Chief Executive and Managing Director, Andrew Reeves.
Our Chief Financial Officer, Gary Mallett, and Company Secretary, David Matthews. Due to COVID restrictions, Non-Executive Director, Linda Bardo Nicholls, is joining us online from Melbourne. Also joining us today is KPMG Partner Julie Cleary, representing our auditor. Before I turn to my address, I want to acknowledge that prior to the AGM, we met with the Australian Shareholders' Association, and they have lodged a number of questions on behalf of the shareholders they represent, and I will deal with those during the course of the meeting. I'm pleased to be speaking with you today to report that your business is in good shape and performing well. This time last year, I spoke of the significant events that we in the country had faced with the bushfires in late 2019, and the onset of the COVID pandemic in early 2020.
These events certainly changed Inghams and all Australians, and the last 12 months have continued to present COVID-related issues in our Australian and New Zealand businesses. Our commitment to the health, safety, and well-being of our people remains a priority, and is exemplified by the introduction of paid pandemic leave for factory staff to take off time from work to isolate or receive vaccinations. I've nothing but admiration for the resilience and unwavering commitment of our people that has enabled Inghams to continue to operate successfully and perform our critical role as an essential services provider, despite the disruptions associated with the first, second and subsequent waves of COVID. Against this backdrop, you will have seen our FY 2021 results released in August, was a year in which the business performed strongly.
I'd like to commend the entire Inghams team for delivering strong financial results in 2021, underpinned by a disciplined approach to executing our long-term strategy. Supported by healthy poultry volume growth and the benefits of our efficiency initiatives, net profit after tax increased by 107.7% on the previous year. The stronger results enabled us to deliver shareholders fully franked dividends totaling AUD 0.165 per share, an increase of almost 18% on the prior year, and reflecting a payout ratio of 71% of underlying NPAT. Our balance sheet is also stronger, with net debt declining AUD 240 million and reducing the leverage ratio to 1.2 times at financial year-end. Inghams is committed to running a sustainable business, and we have a long track record of embedding sustainable practices throughout our operations.
As Andrew will detail shortly, the company has made significant progress over the last year in the delivery of industry-leading initiatives and outcomes, and more recently in the disclosure of our achievements, plans, and targets. Critically, the board sees sustainability as core to the fabric of our business and a source of competitive advantage. You will have seen in the annual report that I referred to the tragic death of one of our valued workers at our plant in Bolivar, South Australia. I can assure shareholders that we have thoroughly reviewed our procedures and continue the long-standing emphasis on safety in all our operations. In March this year, we welcomed Andrew Reeves to the executive team as Inghams's new Chief Executive Officer. This position became available following the departure of Jim Leighton, who returned to the United States for family reasons.
Jim made a significant contribution to the company, building a world-class executive team, and left the business in a strong position reflected in the 2021 results. The board was delighted that Andrew agreed to take up the CEO role, coming into the position very well known to the board and the management team, having been a non-executive director with Inghams for some two years prior. We're fortunate to have someone of Andrew's caliber at helm.
Andrew is an experienced consumer goods executive who has served as CEO and Managing Director of the Australian and New Zealand subsidiaries of large listed multinational companies, and his more than 40 years' experience in successfully managing complex commoditized businesses and brands in both fast-moving consumer goods and agri businesses, combined with his deep knowledge of the Inghams business, ensured a smooth and seamless leadership transition with no loss of strategic or operational momentum. With Andrew's move to an executive role, we have commenced a search to identify a new non-executive director to join the board, and we will update the market when this appointment is finalized. At last year's AGM, we received a first strike on the remuneration report. In addition, the resolution on the Transformational Incentive Plan was lost.
With the clear message that elements of executive remuneration structure did not align with shareholder expectations, we have addressed these concerns. Helen Nash, our Chair of the Remuneration Committee, and I met with numerous stakeholders to gain a more detailed understanding of the issues that led to these voting outcomes. Three key areas emerged: the CEO's remuneration, our approach to short and long-term incentives, and shareholder requirements for directors and key management. As a result, and to ensure that stakeholder concerns were appropriately addressed, we have made a number of important changes to our approach to the setting, assessing, and disclosure of executive remuneration. One of the more immediate changes that was made in relation to CEO pay.
As you will have seen in our remuneration report, Andrew's fixed remuneration has been set at a level that is 27% lower than his predecessor. As a board, we will ensure that CEO compensation continues to meet three requirements, be set at an appropriate level that reflects the skills, knowledge, and experience of the individual, ensuring that the company can compete effectively in the market for talent and experienced executives, and is based on comparable market rates. We now believe that we achieved the right balance between these various elements. Another key area for change this year in relation to this disclosure we make on performance-based compensation. While needing to ensure that we properly manage issues of commercial sensitivity, we are committing to enhance disclosure of performance targets for both the short and long-term programs.
Including the disclosure of long-term plan targets at the time of granting awards. These enhancements will provide shareholders with the ability to vote on the respective resolutions with full transparency of both the grant and the performance measure relating to it at the beginning of the performance period rather than retrospectively. I also note that for FY 2021, the short-term incentives were significantly reduced as a result of the safety incident that occurred at Bolivar, which I mentioned previously. The final change I wanted to highlight was the introduction of minimum shareholding requirements for the board and key executives. Minimum shareholding ranges between 50%-100% of board fees or total fixed remuneration, and we have set appropriate transition periods for all relevant individuals to comply with these requirements.
For those who wish to read more, you will find additional detail on these changes on page 60 of the 2021 annual report. The remuneration report has also been revamped and simplified, and I have no doubt shareholders have found this new format much easier to understand. The board is committed to ensuring the remuneration strategy reflects good governance, consultation with key stakeholders, and is transparent in its design to support the business strategy and drive sustainable outperformance for shareholders over the short, medium, and long term. In closing, I can report that the board is confident the business is well positioned to pursue our strategy going forward. We have every confidence in the management team. This team is delivering positive changes across our operations and in the business, resulting in more predictable results that were realized over the last financial year despite the challenges of COVID.
During the course of our discussions with stakeholders in the lead up to the AGMs, we were asked about sustainability linkages to executive remuneration. Today, achievement of sustainability outcomes are taken into account when assessing individual performances of each STIP participant, where sustainability is part of a participant's job plan. Moving forward, we'll be linking sustainability to our reward program as we make greater progress in our sustainability and ESG programs, and are targeting to implement this by FY 2025. The lockdowns in Australia and New Zealand in quarter one this financial year have required us to continue to adjust our operations to ensure our employees are safe and we comply with all government regulations while continuing to meet our customer demands. No easy task. We anticipate that lifting the restrictions will bring improved operating conditions and normalization activity across our businesses.
I remain optimistic, that we are well positioned as we emerge into the post-COVID world. I'd now like to hand over to our Chief Executive and Managing Director, Andrew Reeves, to take you through further operational highlights and more of the details that underpin our continuing positive performance. Thanks, Andrew.
Thank you, Peter, and good morning, everyone. I'd like to add my welcome to those joining us today. It's my pleasure to be presenting at my first annual general meeting since taking over as CEO of Inghams earlier this year, and I look forward to keeping you updated on the progress of the business moving forward. Starting with the highlights of the 2021 financial year. Throughout the COVID-19 pandemic, Inghams has focused on keeping its people safe. Our high safety standards enabled us to keep operating effectively, managing and effectively managing through the operational disruptions and perform our role as an essential service provider. In the last 6 weeks, we have had a number of cases in our Victorian facilities that have led to disruptions and adjustments to our normal operating practices.
This, I'm pleased to report, is now behind us and we have returned to stable daily operations. Our ability to respond quickly and effectively to the challenges that COVID continues to throw at us speaks to the resilience and agility of our business and the unwavering commitment of our people to deliver great outcomes for our customers and consumers, as well as profitable growth and returns for shareholders. In August of this year, the group reported a strong set of financial results with EBITDA and net profit after tax both showing solid growth and coming in at the midpoint of our earnings guidance range issued in May. The strong growth was supported by volume and revenue growth, combined with continued operational efficiencies, net feed cost benefit, and frozen poultry inventory reduction.
The company paid total dividends of AUD 0.165 per share, an increase of 17.9% and reflecting a payout ratio of 71% of underlying NPAT, in line with our policy target of 60%-80% of underlying NPAT post AASB 16 adjustments. Importantly, these results were achieved despite the ongoing impact of the pandemic on the operating environment. Our results were underpinned by resilient demand for poultry and positive operational outcomes arising from the delivery of our strategic plan. Group core poultry volume grew by 4.2% on the prior corresponding period, with volume growth in New Zealand particularly strong at 6%. This growth reflects strong growth in retail, coverage expansion in wholesale, and a solid recovery in the quick service restaurant and food service areas, which were particularly impacted by COVID-19 containment measures.
An important element of our strategy is our continuous improvement work stream, which we call Optimizing the Core. The successful outcomes achieved through this key plank of our strategy contributed strongly to our FY 2021 results, and the dedicated team we have in place remains focused on continuing this great work in identifying further opportunities for process improvement and waste elimination. We have made great progress on advancing our sustainability agenda this year, both through the setting of targets and the implementation of initiatives, as well as elevating our disclosure of these various activities. I'll talk more in more detail about sustainability activities a bit later in my presentation. Moving now to progress and strategy. In late 2019, the business presented its strategic framework, which comprised three key pillars. One, to Optimize the Core. Two, Transform for Tomorrow. Three, Create the New.
This framework has been guiding our efforts and plans to help deliver more consistent, predictable, and reliable returns to shareholders. The benefits of the initiatives and the actions being taken under this plan are clearly seen in our FY 2021 results. Optimizing the Core is delivering great outcomes, driving lower costs, enhancing yield, and reducing waste. Importantly, we are delivering greater asset efficiency and returns for modest overall capital outlay. The sale of our Hamilton feed mill in New Zealand, which was dedicated to the production of dairy feed solely for external sale, has also realized leased capital that we'll be able to deploy into higher value opportunities across the business. Under our pillar for transform for tomorrow, we are making great progress with our two HatchTech hatcheries in Victoria and Western Australia.
The installation of HatchCare technology within the new hatcheries is an Australian first and leads the way with regards to animal welfare standards. HatchCare is an automated system that provides immediate access to light, feed, and water in a generally more spacious environment for the chicks. In addition to providing improved health and welfare benefits and operational efficiencies, the hatchery is critical in ensuring that Inghams has the capacity to meet future projected demand. We have completed the commissioning of the Victorian hatchery, and we have now commenced the commissioning of the WA facility. Our Redland Bay research farm is now fully operational with a number of successful calibration trials conducted. Future trials will be supported by our feed and farm R&D strategy, focusing on optimizing feed and raising the bar on animal welfare standards.
Our third strategic pillar, create the new, is delivering some great outcomes for our customers and the business through our enhanced focus on the premium market through branded and private label innovation, as well as the launch of plant-based products. The launch of a new brand in April 2020, The Free Ranger, has been well-received and is now stocked in over 477 supermarkets. Product innovation, such as our Super Crunch range of frozen products, has also been very successful with healthy sales volumes and strong customer feedback. Throughout the year, we have worked to develop new chicken offerings for our major QSR customers. Turning now to a review of our sustainability activities. At Inghams, sustainability is about doing good for our people, our community, our environment, and our business.
For more than 30 years, we have embedded sustainability into our business, and we have become recognized industry leaders in water stewardship, sustainable agriculture, and sustainable food production. We are also committed to progressing our approach to environmental sustainability. This year we have set meaningful 2030 targets, which include commitment to science-based target setting, which will ensure that we deliver meaningful reductions in greenhouse gas emissions, water usage, and landfill waste by 2020. Sorry, excuse me, by 2030. In determining our approach and setting these targets, we work closely with our sites, suppliers, and customers to identify environmental and social risks. In collaboration with many of these same stakeholders, we also invest in research which underpins our ability to identify and develop innovative approaches that result in more sustainable practices, high quality, and food safety practices, and the highest animal welfare standards.
As many of you will have seen, we have also taken a significant step forward in our reporting of our sustainability achievements and plans through enhanced disclosure in our annual report, which contains a new sustainability report. Our reporting will continue to evolve over time, and we look forward to keeping all stakeholders informed about our continuing sustainability achievements through these reports. As you will have seen in our annual report and sustainability report this year, we have taken our first steps in reporting against the Task Force on Climate-related Financial Disclosures, known as TCFD. In these reports, we have also outlined the steps we will take in future to progress our reporting against TCFD recommendations.
We have made good progress on a range of sustainability initiatives across the business, including the release of our modern slavery statement and the launch of our 2025 packaging targets in line with the Australian Packaging Covenant. I'd now like to share some thoughts and observations about the business since taking over as CEO. Since commencing as CEO at the end of March of this year, it has been an incredibly busy and rewarding seven months. During that time, I have immersed myself in the operations of the business, visiting many of our Australian operations. Due to travel restrictions, I've not yet been able to visit our New Zealand operations, but that is a priority for me once the travel restrictions are relaxed. I have spent considerable time with members of the executive team to review the strategic priorities of the business.
We have a strong business platform and market position, and a key task for us is to identify opportunities to leverage this into growth opportunities. I expect this growth will come from a number of different places, including doing our part to drive category growth in poultry, as well as creating new opportunities for growth, including through product development and differentiation. In addition to internally driven opportunities, we will continue to assess appropriate external opportunities aligned to our core business or suitable adjacencies to expand existing operations. Operationally, we are in a strong position, and the business is focused on the right things. Our Optimizing the Core strategy is performing well and will continue to be a focus for us. We have a significant pipeline of projects for FY 2022.
I see this strategy work stream as continuing to deliver meaningful benefits to the group. There are good opportunities to further integrate and enhance both our business planning processes and network optimization initiatives. As we look forward to the evolution of our strategy, we have three active work streams underway to help underpin long-term profitable growth. We are developing options to invest in and grow the contribution to volume and margin from value-enhanced consumer-relevant branded propositions. Another work stream is defining a good, better, and best product portfolio approach to be implemented across the key channels of retail, QSR, and food service, so these customers can present offers to their customers to optimize value, choice, and preference.
Further, we are developing specific customer growth roadmaps to elevate our customer focus and bring more of a partnership approach to these key relationships to create mutually attractive plans to drive poultry category growth. These roadmaps are supported by deep customer engagement, awareness of category drivers, and market insights. Overall, I believe we have a very capable and engaged team in place. I'm very happy with the composition of our senior team, and I believe the skills and experience within both the executive team and across the business more generally leave us well-positioned to execute our strategy. In closing, we delivered a good set of financial results in FY 2021, underpinned by solid poultry volume growth and recovery in key channels, and the Inghams balance sheet is strong.
The impacts of the extended lockdowns in New South Wales, Victoria, and Auckland have been a key feature of early FY 2022. With restrictions now being eased and removed, we expect to see a recovery in consumer activity take place. Despite the uncertainty that the lockdowns have created, our performance in FY 2021 has proven the resilience and the agility of our business and people to respond quickly and effectively to the challenges that COVID has thrown at us. Elevating sustainability across our business activities is a key focus area for us moving forward. We have delivered good outcomes to date. We have more to do in embedding sustainability practices across the business, including enhancing our reporting of targets and outcomes. As we move into FY 2022, we expect poultry volumes to show continued growth, also benefiting from new business across various channels.
Grain markets have continued to rally in the second half of this calendar year. Despite an expected bumper domestic wheat crop, due to the Northern Hemisphere drought and an increase in global demand, international grain prices have stayed high, and domestic pricing has increased as a result. The market for soy meal has actually seen a decline in pricing. However, this has been largely offset by increased international shipping costs. These sustained input cost pressures have the potential to place upward pressure on market pricing moving forward. As I noted earlier, our Optimizing the Core program will continue to deliver meaningful benefits to our business through the implementation of operational efficiencies, big and small, across the business.
We are also investing in our network through larger scale projects, including the WA hatchery, our Auckland further processing plant, the Murarrie red area replacement, a new breeder triangle to service Queensland, and a new wastewater treatment plant at Osborne Park. On behalf of the management team, I'd like to thank you for your continued support and for joining us today, and I'll now hand back to the chairman for the formal business of this meeting.
Thanks, Andrew, and I will now move to the fourth part of the agenda. The notice of meeting was lodged with the ASX on 5 October 2021, and is also available on the Inghams website in the investor section. I propose we take the notice of meeting as read. Each resolution set out in the notice of meeting is to be considered as an ordinary resolution and to be approved by a simple majority of votes cast by shareholders entitled to vote. We will display the votes for shareholders and proxies received prior to the meeting following the discussion of each item of business. For all items of business in accordance with the voting exclusions that apply to each resolution, undirected proxies that have been given to the chairman or my fellow directors will be voted in favor of these items.
The results of today's meeting will be released and published to the ASX and published on the Inghams Group website later today. I do note that we have received a number of questions online already, and we will deal with each of those questions and others that emerge at the appropriate time during the course of business. The first item of business is to receive and consider the financial reports of the company and its controlled entities, and the reports of the directors and auditor for the year ended 30 June 2021. The annual financial report, the directors' report, and auditors' report are contained in the company's 2021 annual report, which was released to the market on 5 October and can be found on the Inghams Group website.
As I noted earlier, Julie Cleary from KPMG is available to respond to questions relevant to the conduct of the audit and the preparation and content of the independent auditor's report and the independence declaration. This item of business is for discussion only, and the Corporations Act directs that there is no vote required. I'll now take questions on this item of business. Brett, are there any questions online?
Chair, I have a question from Mr. Kevin Charles Daley: How good are this year's results? What with COVID and AASB 16, I'm at a bit of a loss. However, I note that pre-AASB 16 underlying net profit after tax in 2019 equals underlying net profit after tax in 2021, while chicken volumes are up about 9% over the same two-year period. Seems like you're struggling to control your costs.
Look, thank you for that question. I'll hand that question to our Chief Financial Officer. Thank you, Gary.
Thanks for your question, Kevin. I agree, AASB 16 does have a big impact on our results here at Inghams. You've done well to work your way through that. Excluding the AASB 16 impact, so FY 2021 NPAT and FY 2019 impact is largely the same as you mentioned. You'll recall back in FY 2020 was quite a challenging year for Inghams that we had, as we talked about at the last AGM, we had the restructure of our FP network in Cleveland, and then we had the associated operational issues with that which impacted our results in FY 2020. You'd also appreciate that COVID has been a feature in both FY 2020 and FY 2021, and that continues into FY 2022, as Andrew mentioned earlier today.
You can see there's been a good improvement of costs from FY 2020 into FY 2021. Those operational efficiencies seen are expected to continue, and our goal is to continue to improve our margins going forward.
Thank you, Gary. Brett, further questions?
Chair, I have another question from Mr. Kevin Charles Daley. What does a strong balance sheet mean post AASB 16? Debt divided by debt plus equity and debt over EBITDA have been rebased.
Gary, I think that's another question for you.
Yes, Kevin. The AASB 16 hasn't changed the strength of our balance sheet as those lease liabilities existed prior to the introduction of that new standard. I wouldn't say we're rebased. We do measure our leverage on a pre-AASB 16 basis and also our net debt, and that's consistent with the way that our covenants work with our syndicated facilities as well. The strength is coming from net debt being at AUD 240 million, which is down AUD 74 million on the prior year, which show an associated leverage fall to 1.2 times versus 1.8 times. We have significant headroom with our committed facilities, and they're well below our covenant levels.
You would have also noticed over the last couple of years, our AASB 16 lease liability has fallen, as you would expect, as the term of those leases comes to expiry.
Again, thank you, Gary. Further questions, Brett?
Chair, there are no further questions online, and there are no verbal questions for this item of business.
Good. Thank you very much. We'll move to the next item of business, item two, which is the re-election of Linda Bardo Nicholls, AO, as a Non-Executive Director of the company. Pursuant to ASX Listing Rules and the company's constitution, Linda will retire at the conclusion of this meeting and being eligible, is seeking re-election. Linda was first appointed as a Non-Executive Director on 7 October 2016, and was last elected by shareholders on 18 October 2018. Linda is currently a member of the Finance and Audit Committee, the Risk and Sustainability Committee, and a member of the People and Remuneration Committee. Linda has extensive and valuable experience as a senior executive and director in banking, insurance, and funds management in Australia, New Zealand, and the United States, gained during a career spanning over 30 years.
The board has reviewed the performance of Linda and believes she continues to provide a valuable contribution to the board and the business, and accordingly supports Linda's re-election. Linda, I'd like to invite you to say a few words in favor of your election.
Thank you, Peter, and good morning. As Peter said, in 2016, I became a non-executive director of Inghams, and that was, of course, at the time of our becoming listed on the Australian Securities Exchange. I bought shares in that IPO, and like many of you, I've purchased shares in subsequent years because I believe that Inghams is a good investment with a sound future. Peter read out my committee responsibilities at Inghams, but I'd like to share with you some of my other background as an executive and my current professional roles. My executive career was in finance. I've been a professional non-executive director of listed companies and large organizations for well over 20 years. It's that diversity of experience and professionalism that I bring to Inghams. My board experience includes healthcare as Chair of Healthscope, Chair of Japara Healthcare, and Chair of Royal Melbourne Hospital.
Transport and logistics as Chair of Yarra Trams and Chair of Australia Post. Large, heavily regulated consumer businesses where I served on the board of Fairfax Media, St.George, and currently Medibank. These are businesses where every consumer has an opinion on your business. Australia has some of the highest food safety and animal welfare standards in the world. At Inghams, we know that reputation comes not by chance, but from adhering to exacting standards and managing risk for zero harm. Our very large customers, the supermarkets and quick-serve restaurants, they expect competitive pricing, innovative products, and delivery on time and in full. Meeting these expectations demands attention to detail in every step of production, transport, and logistics. Chicken is, of course, Australia's favorite meal, and Australian consumers are discerning.
I see this in my own three-generation family, where there are definite views on chicken, whether their preference is nuggets or a barbecue bird or a Sunday roast. I know how they like their chook. When consumers speak at Inghams, we're listening. I believe my industry experience and current roles give me first-hand knowledge of the opportunities and challenges facing Inghams today. As a board member, I see a critical part of my job as ensuring we make the numbers expected by investors and deliver the service, quality, and value.
Demanded by the community. To continue that work, I'd ask you to please support my re-election today. Thank you.
Good. Thank you, Linda. There was a specific question we've received online in relation that was asked of Linda that we will get Linda to respond to in general business. Brett, are there any other questions on or for Linda on this item?
Chair, there are no questions online for this item of business, and we have no verbal questions for this item.
Well, thank you. In that case, I will move to the voting and show the proxy results on screen, and I will now pause briefly while shareholders can cast their vote. Thank you, everybody. I'll now move to item three, and I should perhaps say congratulations, Linda, on your re-election.
Thank you, Chair.
Item three is to adopt the remuneration report for the year ended 26th June 2021. The remuneration report is contained on pages 56 to 83 of the annual report and sets out the remuneration policies of the company and reports on the remuneration arrangements in place for the company's KMP during the 2021 financial year. As I've already detailed the process we adopted following the strike and the important changes that we have made in approach to the setting, assessing, and disclosure of KMP remuneration and outcomes, I'll now move straight to questions on this item of business. Brett, do we have any questions?
Chair, I have a question from Mr. Alan Goldin of the Australian Shareholders' Association, who asks, "When will a portion of your award structure be explicitly tied to measured improvements in sustainability?
I'll pass that question to the Chair of our Remuneration Committee, Helen Nash. Thank you.
Thank you, Chair, and thank you for the question, Alan. As Peter and Andrew have already discussed in their addresses, for more than 30 years, Inghams has embedded sustainability into our business, and we've become recognized industry leaders in water stewardship, sustainable agriculture, and sustainable food production. That said, from a targets and outcomes perspective, and its link to remuneration, we are relatively early in our journey. Our aim is that no later than FY 2025, ESG metrics will form part of our group balanced scorecard. Until then, it will continue to form part of some of our senior executives' individual performance measures. Thank you.
Thank you, Helen. Brett, further questions?
Chair, I have another question from Mr. Alan Goldin, who asks, "What weighting do each of the three strategic pillars have in your executive remuneration?
Thank you again, Alan, for that question. While there are no set or fixed weightings to each of the strategic pillars in the short-term incentive framework, the plan allows achievements under each of the pillars to be reflected in the group performance and the individual remuneration outcomes. Further, through the assessment of the individual performance factor for each employee, we're able to tailor rewards for specific outcomes across the three strategic pillars. This flexibility is really important as individuals will have differing areas of focus within their work plans. Thank you, Chair.
Thank you, Helen. Brett, are there any further questions?
Chair, there are no further questions online, and there are no verbal questions on this item of business.
Good. Thank you. I will now ask for the proxy results to be shown on screen, and I'll pause again, so people may vote. It's a very strong vote in favor of the remuneration report, and I thank shareholders for your support. Item four is the resolution for the grant of performance rights to the Chief Executive Officer and Managing Director under the 2022 Long-Term Incentive Plan. Through this resolution, the company is seeking shareholder approval for the grant of performance right under the Long-Term Incentive Plan for the CEO and Managing Director, Andrew Reeves, for the financial year ending 25 June 2022. This award forms a key part of Andrew's at-risk remuneration.
The 2022 Long-Term Incentive Plan is designed to align the interests of the Chief Executive with the interests of all shareholders by providing him the opportunity to receive an equity interest in the company through the granting of performance rights. Each performance right will entitle the CEO to receive one fully paid ordinary share in the company, subject to meeting the performance conditions outlined in the explanatory memorandum that accompany the notice of the meeting. Performance rights are used as they create alignment between, excuse me, the interests of the CEO and shareholders, but do not provide him with the full benefits of share ownership, such as dividends and voting rights, unless and until the performance rights vest.
The performance outcomes will not be retested if the performance conditions under the plan are not satisfied at the end of the performance period, and any performance rights that remain unvested at the end of the period will lapse immediately. I'll now take questions on this item of business. Brett, are there any questions?
Chair, there are no questions online and no verbal questions on this item of business.
As there are no questions, I will ask that the proxy results be shown on the screen and pause while shareholders have the opportunity to vote. Again, I thank shareholders for the strong vote in favor of the resolution on performance rights. I'll now move to item five. This resolution seeks shareholder approval to amend the terms of outstanding performance rights granted under the FY 2020 Transformational Incentive Plan at the 2020 AGM. The proposed changes seek to replace the original performance plan conditions with new requirements designed to address the feedback that the terms of the original plan were unacceptable. A detailed summary of the changes is outlined in the explanatory memorandum that accompanied the notice of meeting. I'll now take questions on this item. Brett, are there any questions?
Chair, there are no questions on this item of business.
Thank you. I'll then ask for the proxy results to be displayed on the screen and give our shareholders a moment to vote. Thank you, and I thank shareholders once again for their support. I'll now move to item six, the conditional spill resolution. As voting in favor of the spill resolution is at less than 1%, and the resolution is no longer relevant, I do not intend discussing this item. As a result, this concludes the formal business items, and I'll be moving to general business. However, before I open for questions, please note that I'll be closing voting in 5 minutes. If you haven't already, please cast your votes now. I'll now move to general business. Shareholders are now asked, invited, in fact, to ask general questions regarding the company. Brett, do we have any questions?
Chair, I have a question from Alan Golden at the ASA, who asks, "As Inghams wants to be seen as a brand and not just a commodity, what percentage of your revenue is currently from branded packaged products? What would you like to see this percentage being in three years?
Well, Alan, thank you for another question. I enjoyed the meeting with you, most recently. I have to say Inghams is already a well-loved and well-established brand. Unfortunately, Alan, we do not provide specific details on percentage of branded volume in our mix. However, we are developing options to invest and grow, as Andrew said, the contribution volume and margin value enhanced consumer relevant branded propositions over the next three years. Are there further questions, Brett?
Chair, I have another question from Alan, who asks, "Please detail the skill set that you're looking for in a new director that adds new experience and expertise to the board than that currently possessed by existing directors.
Thank you, Alan. We are out in the market looking for a new director. I think if we could find a director with very similar skills to Andrew Reeves, we would be very well served. I spoke earlier about Andrew's credentials, so you have a sense of the sort of skills and capabilities we're looking for. The additional skills and experience we would welcome would be experience and demonstrated results for a director in contributing to successful growth strategies, or participating in high growth companies and deep experience in building brands in commodity market. Of course, the fit with our culture around the board and company is paramount. Brett, are there further questions?
Chair, I have another question from Alan, who asks, "How much of your net zero strategy is based on current commercially proven technology and processes?
I will hand that to our Chair of the Risk and Sustainability Committee, Jackie McArthur.
Thanks, Alan, for the question. Inghams are committed to a 43% reduction in greenhouse gas emissions, a 20% reduction in water intensity, a 20% reduction in waste to landfill, all by 2030. All significant targets. We do not have a net zero strategy at this stage. As Andrew said, our focus is to achieve meaningful targets that we have a tangible plan for. That plan includes commercially proven technologies and processes, but also leaves us open to investing in research to allow us to use innovative technologies as well. Thanks.
Thank you, Jackie. Brett, do we have any further questions?
Chair, I have a question from Mr. Kevin Charles Daley. "The annual report has a block diagram of Inghams' operating activities. The heading is Optimizing Our Fully Integrated Operating Model. So what exactly are you optimizing? In the past, I believe you were maximizing net profit after tax. Now it's more like you are minimizing CO2 emissions. Clarification, please.
I'll hand that to our Chief Executive, Andrew Reeves. Thank you, Andrew.
Thanks, Chair. Thank you for the question. One of Inghams' great strengths is its integrated supply chain. The fact that we control all elements of farming through processing, through distribution and customer relationships, and we're able to influence, control, and make critical decisions in each of those elements to optimize our entire business operation. That plays to the ultimate returns from the business, including NPAT, and it also gives us, in reference to the previous question, a great deal of control over our sustainability initiatives. That network is really critical to our ability to deliver the sorts of objectives and strategies we're talking about here today.
Thank you, Andrew. Brett, further questions?
Yeah, I have another question from Mr. Daley. Reducing CO₂ emissions by 43% over an 11-year period corresponds to a compound average reduction rate of 5% per year. For the period 2019 to 2021, you've achieved an average reduction rate of only 2.8%. Have you tried negotiating a PPA agreement with a renewable generator? Perhaps you can then reduce emissions and get cheaper electricity.
I'll ask Jackie McArthur to answer this question. Thank you, Jackie.
Thank you, and thanks, Kevin, for the question. What I will say is, you don't have to be on this board for very long to appreciate that the Inghams team, the Inghams management team, just as a matter of how they do business day-to-day, regularly look at bulk purchasing agreements across a range of commodities. Renewable electricity, I can confirm, is certainly in the mix. Thank you.
Thank you, Jackie. Brett.
I have another question from Mr. Daley, who has pointed it directly to Ms. Nicholls, and asked, "Ms. Nicholls, why did the board think it was in shareholders' interests to outsource emissions policy to the Financial Stability Board's TCFD, which is just another lobby group? Why not Greenpeace?
Thank you for the question, Mr. Daley. For those shareholders attending the meeting who may not be familiar with the Financial Stability Board, it is, of course, part of the Bank for International Settlements. It's based in Switzerland. It arose in 2009 from a G20 summit in London, and Australia does hold a seat at the board table there. The intent of the TCFD is certainly not lobbying. It is to develop consistent climate-related financial risk disclosures that are used by companies, banks, investors, to provide information to stakeholders. It was selected by us because it's an internationally recognized standard. Having said that, we all know that our path towards 2030 and 2050 is one that is not yet altogether certain and requires a dynamic approach.
If and when there is a better and more widely recognized international standard for reporting, we will certainly be looking at that very closely. Thank you.
Thank you, Linda. Brett, any more questions?
Yeah, I have another question from Mr. Daley. What fraction of your chicken production goes into frozen products?
Yeah. I'll ask our Chief Executive, Andrew Reeves.
Yeah, thank you for the question. As our chair said earlier, we do not divulge the specific contribution of different elements of total volume. I will say, however, that the frozen component of our business is relatively small, and our main focus with our customers and consumers is on fresh product. Having said that, it is an important part of our brand portfolio. We are investing in it, and we intend to try and grow that element of our business in the years ahead.
Thank you, Andrew. Brett, any further questions?
No further questions on this item.
Okay. Are there any further questions on general business at all?
No further questions.
Okay. As there are no further questions for the meeting, I can declare the annual general meeting of Inghams Group Limited closed. On behalf of the board and our management team, and again, our 8,000 staff, I'd like to thank everybody for joining us today, and we will close the meeting now. Thank you very much.