Fonterra announces climate plans for the future

9 November 2023
FONTERRA ANNOUNCES CLIMATE PLANS FOR THE FUTURE

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

The Co-operative is targeting a 30% intensity reduction in on-farm emissions by 2030* (from a 2018
baseline) which will see it further reduce the emissions profile of its products.

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

In 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.

“There is a lot of activity to reduce emissions across other markets, and the Co-op needs to keep making
progress to make sure it doesn’t fall behind.

“As a dairy partner to many of the world’s leading food companies, we’re responding to growing
sustainability ambitions from our customers and financial institutions, along with increasing market
access, legal and reporting obligations.

“Our collective efforts to reduce emissions – from on farm, across our operations and by our R&D teams –
will help future proof Fonterra, supporting our ambition to be a long-term sustainable Co-op for
generations to come,” says Mr Hurrell.

“At the other end of the supply chain, as a large part of our customers’ Scope 3 emissions, today’s
announcement further demonstrates to them that we are committed to being their sustainable dairy
partner of choice both now, and into the future.”

Fonterra expects this new target will be achieved through a number of ways:
• 7% reduction through farming best practice such as feed quality and improving herd performance
• 7% reduction through novel technologies that we’re developing through AgriZeroNZ, the joint
venture between agribusiness and Government working to find a solution to methane, and other
partnerships
• 8% reduction through carbon removals from existing and new vegetation
• 8% from historical land-use change conversions to dairy.

Fonterra Co-operative Group
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Fonterra Chairman Peter McBride says that t he Co-op's overall on-farm emissions reduction target would
affect each farm differently.
“Th ere is significant variati on within and across farmi ng systems whe n it com es to emissions intensity. We
are confident that we can make solid progress towards our target by working together and sharing
information farmer-to-farmer.
“There’s no one solutio n to reduci ng on-farm emissions. It will require a combination of sharing best
farming practices and technology t o reduce emissions – it’ s bot h our bigg est opportunity and our biggest
challenge,” says Mr McBride.
“We have deep empathy fo r the challenges our farmer s are already dealing with. The Co-op’ s approach
will be to work alongside farmers, not against them, as we collectively make progress towards our target,
including investing in methane reduction technologies".
Fonterra says t he target comes after close to a year of discussions with farmers about why it i s needed
and how the Co-op will work with them to achieve it. It says the methodology will continue to evolve
alongside the science that supports t he changes.
Fonterra also launched its Climate Roadmap https://fonterra.com/climate-roadmap. The roadmap is a plan
that outlines t he actions t he Co-op will t ake towards its 2030 targets and ambition to be net zero by 2050.
Earlier this year, Fonterra lifted its emissions reduction targets f or its manufacturing and operations. This
new
target completes the package.
Mr Hurrell says having a full suite of targets and a plan to achieve them will provide high-value customers
with the confidence to continue buying dairy from Fonterra, as well as protect its reputation as being one
of the most emissions-efficient suppliers of dairy at scale.
In addition to this, t he Co-operative has voluntarily released its first Climate-related Disclosure report
https://view.publitas.com/fonterra/2023-climate-related-disclosure. This report identifies risks and
opportunities related to climate and helps the Co-operative plan for the future.
New Zealand is the first country i n t he world to pass a law introducing mandatory climate-related risk
reporting, with i t becoming mandatory next year for around 200 New Zealand companies, including
Fonterra.
Mr Hurrel l says he’ s proud of the step s the Co-op is taking to address the challenges i t faces when it
comes to climate.
“Today’s announcements are not just important for Fonterra. They will also help the countr y achieve its
2030 target s set unde r the Zero Carbon Act. We kno w we play a significant par t in New Zealand’s
emissions profil e, and it’ s up to al l of us to work towards helping New Zealand achieve it s clim ate targets,”
says Mr Hurrell.
*The 2030 targets are aligned to the Science Based Target initiative (SBTi), which means they’re aligned to
limiting global warming to 1.5degrees. We are currently in the process of submitting the following 2030 targets
to SBTi for validation:
•Fonterra commits to reduce its Scope 1 and 3 FLAG GHG emissions from dairy by 30% per tonne of
Fat and Protein Corrected Milk by FY30 (from a FY18 baseline); and
•Fonterra commits to reduce its absolute Scope 1 and 2 GHG emissions by 50% by FY30 (from a FY18
baseline).
-ENDS

For further information contact:
Anna Johnstone
Fonterra Communications
Phone: +64 21 458831