On the farm, we have one of the toughest climate challenges left to solve - methane from cows. So, we are innovating and testing technologies and investing in industry-wide partnerships.
As a Co-op, we are also working to reduce our manufacturing and transport footprint.
Fonterra's Climate Roadmap details Fonterra's 2030 targets and 2050 ambition. Our 2030 targets are aligned to the Science Based Target initiative (SBTi), which means they’re aligned to limiting global warming to 1.5˚C.
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 (linked above) 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.
Staring at 28.8 Mt CO2e total reported emissions globally in 2018.*
5% (direct emissions from sources owned or controlled by an organisation. Addressing emissions from our manufacturing sites, transport and Fonterra owned farms).
1% (indirect emissions from the generation of purchased energy. Addressing emissions from purchased energy such as electricity and co-generation steam used at our manufacturing sites and offices).
94% (indirect emissions that Fonterra incurs outside our ownership, primarily from farming activities. Working with farmers, suppliers, customers, industry, and partners to address emissions).
*In FY24, we adjusted our baseline to further expand our Scope 3 reporting, and to reflect acquisitions and divestments as set out further in the Data Boundaries notes in our Annual Report. For a full breakdown of our emissions by activity rather than scope, see our data reporting pack.
The first step to reduce emissions is to understand where they come from. Fonterra farmers receive a bespoke Farm Insights Report based on data that they submit to Fonterra, which provides emissions data so farmers can understand how they are trending, how they compare with other farms, and areas for improvement. Farm Insights Reports also highlight unique opportunities for farmers to improve efficiency across milk, animals and environment.
We’re also working to have Farm Environment Plans on every farm by 2025, to help Fonterra farmer owners support soil health, water quality, biodiversity and reduce emissions.
Insights provided to farmers support them to:
In 2020, we achieved our target of 20% improvement in energy intensity from a 2003 baseline. As part of our commitment to stop using coal as a fuel source by 2037, we’re now using wood pellets and wood biomass at our Te Awamutu, Stirling, Waitoa and Hautapu sites. We have also installed a 20-megawatt electrode boiler at our Edendale site in Southland.
In 2022, we trialled Milk-E, New Zealand’s first electric milk tanker. And by FY24 we are committed to transitioning one third of our 960-strong car fleet to electricity.
Fonterra is a major partner in AgriZeroNZ a world-first investment fund established between Government and major agribusiness companies to make sure New Zealand pasture-based farmers have equitable access to affordable and effective tools and technology to reduce their agricultural emissions, while maintaining efficiency, production and profitability.
