Fonterra charts progress against Climate Roadmap and celebrates coal free manufacturing in the North Island

“We've made a great start, while progress may not be linear, we are on track to meet these targets. I’m particularly proud of the work the team has done to achieve SBTi validation, the progress in providing tools and services for farmers, and the efforts of decarbonising our manufacturing sites.

“While it may be one year on from the release of our Roadmap, we have been focused on reducing our emissions, particularly from our manufacturing and operations, for some time now and being free of coal in our North Island manufacturing is something the team should be proud of.”

This year alone, three renewable energy projects at Edendale, Hautapu, and Clandeboye have reduced emissions by a total of 62,500 tonnes, equivalent to taking 27,750 cars off the road.

Charlotte Rutherford says just as important has been the work over the past year to lay the foundations to support farmers in reducing their emissions.

"Reducing emissions through driving greater on-farm efficiencies is also a priority for the Co-op. Our approach is about empowering farmers with tools, insights and support to make meaningful changes.

“Over the past 12 months our farmer facing teams have been working on a range of tools and services for farmers, including targeted conversations to understand what the future may look like, and mapping tools that will help identify woody vegetation for carbon sequestration.

“As we move closer to 2030 we will begin to see the impact of these tools and services in the results. We know there's more work to be done, and right across the value chain we continue to invest in innovative technologies and solutions that will set us up for success.” 

Other milestones over the last 12 months include:

• Validation of the Co-op’s near term targets by Science-Based Target initiative (SBTi).
• 93% of Fonterra New Zealand farms now have Farm Environment Plans, up from 85% 12 months ago.
• Continued investment in AgriZeroNZ who have committed $34 million to emissions reduction technologies and R&D including Ruminant BioTech's methane inhibitor, BioLumic's UV seed treatment, ArkeaBio's methane vaccine and Hoofprint Biome's gut health supplements.
• In an industry first, the Co-op launched the NZMP Carbon Footprinter emissions calculator in February, helping customers understand the average emissions of major New Zealand-sourced NZMP products, including the emissions from shipping to key destinations around the world. Since launch there has been over 4,000 users of the tool.

Charlotte Rutherford says “it’s likely we will see the significant gains towards our on farm emissions intensity target as we get closer to 2030, but it is pleasing to see in this first year we have made good progress as we continue to collaborate to achieve the best outcomes for our farmer shareholders, country and customers.” 

*Details of progress are outlined in our Climate-related Disclosures released in September.

Additional information on Fonterra’s emissions reduction progress over the past 12 months

Developed and begun rolling out several key tools to support farmers:

• Preliminary mapping of all New Zealand farms was completed this year using an advanced mapping method using satellite, aerial, and LIDAR technologies to measure carbon sequestration from vegetation on farms, with farmers set to review their individual carbon data in early 2025.
• Providing personalised guidance on emissions reduction including herd performance, fertiliser efficiency, energy reduction, and nutrition management.
• Enabled farmers to track and understand their environmental impact providing real-time tracking and predictive modelling of potential improvements with an Emissions Efficiency Dashboard.
• Helping farmers model potential emissions reduction strategies and make informed decisions about sustainable practices.
• Farm Insights Reports: Distributed over 10,000 Farm Insights Reports in the past 12 months, detailing farm specific emissions footprints and actionable recommendations.
   

Fonterra’s decarbonisation journey to date

• Edendale electrode boiler (October 2024): The Co-op’s first electrode boiler powered up in October this year, generating steam from electricity, and cutting the site’s annual overall emissions by 20% or around 47,500 tonnes – the equivalent of removing around 20,000 cars off New Zealand roads.   
• Hautapu boiler conversion (August 2024): The conversion from coal to wood pellets is now completed, with an expected annual emissions reduction of around 12,000 tonnes – the equivalent of removing around 6,500 cars off New Zealand roads.   
• Clandeboye heat recovery project (February 2024):  The new heat recovery system in the Lactose plant aims to decrease annual carbon emissions by around 3,000 tonnes – the equivalent of removing around 1,250 cars off New Zealand roads.   
• Waitoa wood biomass boiler (October 2023): The new boiler at Waitoa has halved coal usage, cutting emissions by around 46,000 tonnes annually – the equivalent of removing around 20,000 cars off New Zealand roads.   
• Whareroa heat pumps (September 2023):  Installation of New Zealand’s largest heat pumps as part of a refrigeration upgrade, decreasing annual carbon emissions by around 9,100 tonnes – the equivalent of removing around 3,800 cars off New Zealand roads.    
• Stirling biomass boiler (August 2023): Stirling's now completed wood biomass boiler has reduced annual carbon emissions by around 18,500 tonnes – the equivalent of removing around 7,700 cars off New Zealand roads – and is the Co-op's first site running on 100% renewable thermal energy.   
• Te Awamutu boiler conversion (August 2020): Converted the 43MW coal boiler to use wood pellets, reducing coal use and emissions by around 84,000 tonnes – the equivalent of removing around 35,000 cars off New Zealand roads.   
• Brightwater biomass co-firing (September 2018): Moved to co-firing wood biomass, reducing overall annual site carbon emissions by around 2,400 tonnes – the equivalent of removing around 530 cars off New Zealand roads.   

For more information on the work the Co-op has done in the last year towards advancing its emissions reduction journey read the Climate Roadmap.

For further information contact:
Fonterra Communications
24-hour media line
Phone: +64 21 507 072