Fonterra, the New Zealand dairy cooperative, has unveiled a new on-farm emissions target alongside a new climate roadmap and voluntary climate-related disclosure report. The business aims to achieve a 30% intensity reduction in its farm-related emissions by 2030, with 86% of emissions currently coming from its member farms. To achieve this target, Fonterra will work towards a 7% reduction through sharing farming best practices and an additional 7% through implementing novel technologies via AgriZeroNZ, a joint venture between large agribusiness companies and the government.
Fonterra is contributing up to NZ$50m to the fund over the next four years and plans to cut 8% of emissions by removing carbon from current and new vegetation, and an extra 8% from historical land-use change conversions to dairy. This collective move to cut emissions across its farms, operations, and in R&D will help future-proof Fonterra. The company has also released its climate-related disclosures report, which details the future opportunities and risks accompanying climate change, including disruption to the supply chain and business operations.
In addition to its 30% intensity reduction target for 2030, Fonterra plans to achieve a 50% absolute reduction in its scope 1 and 2 greenhouse gas emissions from a 2018 baseline. The company’s climate reduction strategy is likely to evolve alongside the science that supports the changes. As part of its 2025 milestones, Fonterra aims to implement Farm Environment plans in 100% of its New Zealand farms and ensure that a zero-deforestation commitment is made across primary deforestation-linked commodities. Furthermore, the company foresees a decrease in the viability of dairy farming and disruption to the supply chain and business operations as a result of climate change.
Fonterra’s portfolio of dairy-based products includes De Winkel yogurt, Mainland and Perfect Italiano cheeses, Primo flavored milk, and Mammoth protein beverages, with its key markets in China, Australia, Indonesia, and Malaysia. The company is taking proactive measures to address climate change in the food and beverage industry by setting ambitious targets, implementing new technologies, and voluntarily releasing its climate-related disclosures report.
