2018
Baseline measured
We measured our emissions footprint, to give ourselves a baseline against which to track progress.
Fonterra’s farming ecosystem is founded on grass-fed, pasture-based practices, with a continued focus on supporting animals’ wellbeing. We’re taking steps to help take care of Aotearoa New Zealand’s precious natural resources.
Protecting natural resources is intrinsically linked to safeguarding the future of the environment and communities we depend upon.
There's more work to be done and when we come together, we can support resilient intergenerational farming, realise the full potential of dairy nutrition and create goodness for generations to come.
Our climate targets and ambition
We’re proud of the progress we’ve made and are looking ahead to what’s next.
Fonterra’s emissions reduction targets have been validated by the Science Based Target initiative (SBTi)¹ and are as below.
Energy & Industrial (E&I) absolute reduction and engagement
50.4%
We commit to reduce our absolute Scope 1 and 2 GHG emissions by 50.4% by FY2030 from a FY2018 base year.²
78.2%
We commit that 78.2% of our suppliers and customers by emissions, covering purchased goods and services, capital goods, upstream and downstream transportation and distribution, business travel and processing of sold products will have science-based targets by FY2028.
Forest, Land and Agriculture (FLAG) guidance³ specific intensity reduction
30.0%
We commit to reduce Scope 1 and 3 FLAG GHG emissions from dairy by 30.0% per tonne of fat-and-protein- corrected milk (FPCM) by FY2030 from a FY2018 base year.⁴
No deforestation
We also commit to no deforestation across our primary deforestation- linked commodities, with a target date of no later than 31st December 2025.
¹ The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets.
²The target boundary includes land-related emissions and removals from bioenergy feedstocks.
³The SBTi’s Forest, Land and Agriculture (FLAG) guidance provides the world’s first standard method for companies in land-intensive sectors to set science-based targets for emissions reductions that include land-based emission reductions and removals.
⁴The target includes FLAG emissions and removals.
Further targets
We’re continuing to make progress where it matters.
100%
of Fonterra supplying New Zealand farms to have a Farm Environment Plan (FEP) by 2025.
100%
of Fonterra supplying New Zealand farms to have Animal Wellbeing Plans in place by 2025.
95+%
recycle-ready packaging by 2025.*
(Forecast performance at end of 2025 based on FY24 sales).
40:40:20
representation in global senior leadership.
Which refers to 40% female, 40% male, 20% of any gender.
* The target is for reuseable, recyclable or compostable packaging. Recycle-ready performance aligns with the FY24 AR commentary.
Our journey towards our net zero 2050 ambition
Our Climate Roadmap is our strategy – the path that take us towards our 2030 targets and our ambition to be net zero by 2050.
2018
Co-firing begins at Brightwater
Our Brightwater processing plant in Nelson began co-firing on wood, reducing emissions by 2,400 tonnes each year. This site closed in 2023.
2020
Renewable-powered boiler
We completed NZ’s largest boiler conversion to renewable biomass at our Te Awamutu site.
2022
Electric tanker
We trialled Milk-E, New Zealand’s first electric milk tanker.
2023
Thermal energy
Stirling became our first 100% renewable thermal energy plant.
2023
Wood biomass boiler
The new boiler at Waitoa has halved coal usage, cutting emissions by around 46,000 tonnes annually.
2024
First electrode boiler
The Co-op’s first electrode boiler at Edendale powered up in October, generating steam from electricity, cutting the site’s overall emissions by 47,500 tonnes.
2024
New biomass boiler
Conversion of a coal boiler to wood pellets at Hautapu with an expected annual emissions reduction of around 12,000 tonnes.
2024
Heat recovery project
A new heat recovery system in the Lactose plant at Clandeboye projected to reduce annual carbon emissions by around 3,000 tonnes annually.
2025 Milestones
- 100% of Fonterra’s New Zealand Farms to have Farm Environment Plans.
- Zero deforestation commitment across primary sector deforestation linked commodities by December 2025 in line with SBTi’s FLAG.
- 40% reduction in number of sites that use coal as a fuel source by the end of 2024.
- Supporting farmers to reduce agricultural emissions.
- Publication of first mandatory Climate-related Disclosure Report.
2030 Targets
- 50.4% absolution reduction in Scope 1 & 2 GHG emissions from a FY18 base year.
- 30% intensity reduction in Scope 1 and Scope 3 FLAG GHG emissions from dairy, per tonne of fat-and-protein-correct milk from a FY18 base year.
2030
- Forecast spend of $790 million NZD investment in decarbonising operations planned out to 2030.
Up to $90m NZD of this spend is co-funded by the Government from the Government Investment in Decarbonising Industry (GIDI) fund.
2037
- Elimination of remaining coal use.
2050 Ambitions
- Working to achieve our ambition to be net zero by 2050 by continued investment in technology, collaborating with partners to develop solutions, accelerating our regenerative mindset to develop nature-based solutions, and understanding the role of offsetting any remaining emissions that are unable to be reduced through best practice approaches.
The emissions reductions to 2030 have been forecast to be achievable based on what we currently know and expect to become possible with the right technological developments, government policy support and on-farm practices. Please refer to our Climate Roadmap for further details. We anticipate that our 2050 net zero ambition will be supported by the actions described on this page and ambition guiding our work and investment today. Further detail on achievability of our 2050 ambition will be presented as further information and technology becomes available.