Fonterra sets ambitious on-farm emission-reduction target, launches Climate Roadmap

Fonterra has taken a significant step towards achieving its climate ambitions with the announcement of an on-farm emission-reduction target and release of a Climate Roadmap and voluntary climate-related disclosure report.

The co-operative targets a 30% intensity reduction in on-farm emissions by 2030 (from a 2018 baseline), which would see it further reduce the emissions profiles of its products.

86% of Fonterra’s emissions come from on-farm, and the new target seeks to reduce emissions intensity by tonne of fat and protein corrected milk (FPCM) collected by Fonterra.

While making the announcement at the co-operative’s annual meeting, Fonterra CEO Miles Hurrell said New Zealand farmers are some of the most emissions-efficient suppliers of dairy at scale, but work needs to continue to maintain this position.

Fonterra expects this new target to be achieved through a number of ways:

• 7% reduction through farming best practice such as improving feed quality and herd performance

• 7% reduction through novel technologies that Fonterra is developing through AgriZeroNZ, the joint venture between agribusiness and the government working to find a solution to methane, and other partnerships

• 8% reduction through carbon removal from existing and new vegetation

• 8% reduction from historical land-use change conversions to dairy

Fonterra Chairman Peter McBride says that the co-operative’s overall on-farm emission-reduction target would affect each farm differently.

Fonterra says the target comes after close to a year of discussions with farmers about why it is needed and how the co-operative will work with them to achieve it. It says the methodology will continue to evolve alongside the science that supports the changes.

Fonterra also launched its Climate Roadmap, a plan that outlines the actions the co-operative will take towards its 2030 targets and ambition to be net zero by 2050.

Earlier this year, Fonterra lifted its emission-reduction targets for its manufacturing and operations. This new target completes the package.

CEO Hurrell says having a full suite of targets and a plan to achieve them would provide high-value customers with the confidence to continue buying dairy from Fonterra, and protect its reputation as being one of the most emissions-efficient suppliers of dairy at scale.

The co-operative has also voluntarily released its first climate-related disclosure report. This report identifies risks and opportunities related to the climate and helps the co-operative plan for the future.

New Zealand is the first country to pass a law introducing mandatory climate-related risk reporting; this will be mandatory next year for around 200 New Zealand companies, including Fonterra.

CEO Hurrell says he is proud of the steps the co-operative is taking to address the challenges it faces in terms of climate change.

Source: Fonterra sets ambitious on-farm emission-reduction target, launches Climate Roadmap – ESG News