Terms and Conditions

TERMS AND CONDITIONS OF USE:  

1.      This tool is intended to assist you to assess the current average emissions footprint of the New Zealand sourced products you purchase from NZMP and/or to model the potential impact of Fonterra Co-operative Group Limited’s (“Fonterra”) emissions reduction targets on your own emissions (in relation to your purchase of key New Zealand products from NZMP only). It also allows you to assess the average emissions generated in shipping the product(s) from New Zealand to key destinations around the globe. 

2.      These Terms and Conditions of Use, Important Notice, Methodology, Sources and Assumptions (“Terms”) govern all access to and use of the information and tool. By using the tool, you confirm that you have read and understood them and agree to be bound by them. You should not use the tool if you do not agree to be bound by these Terms.

3.      Use of this tool is also subject to Fonterra’s website terms and conditions of use and privacy policy (“Website Terms”).

4.      Any information, estimates or reports generated as a result of use of the tool are for your internal use only and are not for external distribution.

5.      Without limiting the Website Terms, you acknowledge and agree that all information or data supplied by you through the tool may be used by Fonterra and its affiliates for any purposes whatsoever, including (without limitation) to build customer insights, to assist in customer relationship management and to provide tailored sales offerings.

6.      We:

        a.      may vary these terms at any time, and we may elect to withdraw or amend the tool without notice. Using the tool after the tool or Terms have been changed means you accept the changed terms; and

        b.      shall not be liable in the event that the tool is unavailable regardless of reason.             

IMPORTANT NOTICE:

No reliance: While all reasonable care has been taken in the preparation of this tool, none of Fonterra, the Fonterra group, or any of their respective subsidiaries, affiliates and associated companies (or any of their respective directors, officers, employees or agents) (together “Relevant Persons”) makes any representation or gives any assurance or guarantee as to the accuracy or completeness of any information in this tool,  the likelihood of fulfilment of any targets or any outcomes expressed or implied, the fitness for purpose or appropriateness for your needs in relation to the use in connection with the marketing, promotion and sale of the your products, or your rights to use the information or its suitability to satisfy any reporting obligation in any particular jurisdiction. Information generated by this tool does not constitute advice to be relied upon. We do not verify the data that is inputted by external users of this tool. Accordingly, none of the Relevant Persons accepts any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of this document or for any loss, howsoever arising, from the use of this document or any information / report from this tool.

Updates: We intend to update the information published on this site and/or associated tool as appropriate, although are under no obligation to do so.

METHODOLOGY AND SOURCES:

General:

•        GHG emissions methodology: Our current GHG emissions reporting methods follow the GHG Protocol and the International Dairy Federation’s (IDF) lifecycle analysis (LCA) approach.

•        Detailed reporting notes: Please refer to the the Fonterra Sustainability Reporting Data Pack, Energy and GHG Emissions tab to learn more about the scope, definitions and approach to Fonterra’s emissions measurement. 

2024 Product Emissions:

·        Calculation of 2024 Product Emissions: We calculate our product level carbon footprints in-line with our financial and sustainability reporting cycle which runs August – July annually. Certification is issued to Fonterra by Toitū Envirocare in December each year based on the most recent available annual report data. The “2024 Emissions” that are identified per product are calculated from each product’s average emission intensity (CO2e) per MT as per our most recent Toitu certified product carbon footprint report (“Product Report”), multiplied by the volume entered by the user in the Carbon Footprinter tool.  The Product Report covers only key dairy products where the milk is sourced from Fonterra’s New Zealand based supplying dairy farms, and the scope of the product lifecycle is from cradle to gate (NZ sea port).  This includes emissions from on-farm (including products purchased like fertiliser); transport to manufacturing site; manufacturing; packaging (end-of-life emissions for packaging is included based on assumed disposal methods); distribution to NZ warehouse and/or NZ sea-port. The New Zealand LCA is calculated based on Dairy NZ’s DairyBase regional data and Fonterra milk production data by AgResearch utilising IDF (2022) guidelines and IPCC AR6.

  ·       Packaging End-of-Life Emissions:  End-of-Life breakdowns for each ingredient are based on a weighted average of total volumes exported and use waste management data from the World Bank database, which includes food waste. An assumption that all landfills are sanitary is used.  It is assumed that paper and steel drums are recycled, but plastics are not recycled.  Non-standard packaging formats (such as powder bulk bags, AMF in bulk bags, frozen cream bladder and granular k packaging) are excluded.  

  ·       Toitu Envirocare audit: The Product Report is audited to the internationally recognised PAS 2050/ISO14067:2018 standards by Toitu Envirocare. Toitū Envirocare, an independent subsidiary of New Zealand Government Crown Research Institute Manaaki Whenua Landcare Research, audits and certifies the methodology, data and model to ISO standards.  

Estimated 2030 Emissions:

·        Calculation of Estimated 2030 Emissions: The “Estimated 2030 Emissions” are calculated by assuming Fonterra’s achievement of its targets to reduce absolute Scope 1 and 2 emissions by 50.4% by 2030 (from a 2018 baseline), and reduce Scope 1 and Scope 3 FLAG emissions from dairy by 30% per tonne of FPCM (fat and protein corrected milk) by 2030 (from a 2018 baseline). Accordingly, average emissions and estimated reductions which are articulated on a product specific basis are not exact. 

Shipping Emissions:

·        Calculation of Shipping Emissions: The average shipping emissions per region are calculated based on actual and estimated annual sea-freight shipping data from our joint venture partner, Kotahi for all shipments from New Zealand sea-ports to other country sea-ports for financial year 2024. The emissions factor used is Smart Freight Centre: GLEC Framework. The calculations used in this carbon footprinter tool are based on the following assumptions:

• For New Zealand end destinations, the product footprint numbers already include the average emissions due to distribution from the manufacturing sites to off-site warehouses and/or NZ sea-ports.  Therefore the shipping emissions in the carbon footprinter tool for New Zealand as a “Shipping To” destination are shown as “N/A”. Local landside road or rail freight to the end customer destination is not accounted for. 
• Calculations are based on an assumption of full 40’ containers (ie – no part-shipments).
• Calculations are based on Container type, either a “reefer” (chilled or frozen shipment) or “dry” (no temperature control) container. Each product category is assigned a typical container type (eg – all cheese is reefer; all milkpowder is dry).
• Shipping Emissions shown in the carbon footprinter tool are calculated as average emissions intensity (CO2e) per MT of product shipped (either dry or reefer) multiplied by the MT of product shipped as entered into the tool.
• The calculation is the average emissions intensity (CO2e) per MT of product shipped for that end destination sea port based on the destination data available.
• Destination countries are grouped into regions with similar level of shipping emissions per MT of product, and average values per region are attributed.
• For North America – Chicago warehouse destination option, an estimate of land transport emissions from Philadelphia sea-port to the Fonterra Chicago warehouses has been added to the average sea-freight emissions from New Zealand to Philadelphia sea-port. For the ~1245 km land freight travelled, the estimated emissions are 0.100 MT CO2e/MT product in a dry container and 0.135 MT CO2e/MT product in a reefer container.
• For East Africa and South America – East destination options, no actual shipments for reefer containers were in the data-set.  These emissions have been estimated from actual data to other regions based on similar distances travelled. For East Africa, the same value as Southern Africa was used of 0.31 MT CO2e/MT product.  For South America – East, the same value as Europe was used of 0.34 MT CO2e/MT Product. 
• In all cases the data range within 2 standard deviations (95% of values) for a given region and container type is <0.1 MT CO2e/MT product.
• The minimum value that can be shown in the footprinter is 1 MT CO2e.  Anything less than 0.5 MT CO2e/MT this is shown as <0.5 MT CO2e, anything greater than 0.5 MT CO2e/MT is rounded up to 1 MT CO2e/MT.  

ASSUMPTIONS & OTHER INFORMATION: 

Approach to target setting: Our 2030 targets are aligned with SBTi (Science-Based Targets initiative) guidelines to meet a 1.5˚C pathway. Fonterra has set near-term company-wide emissions reductions in line with the latest science, and these have been validated by SBTi.

For a full description of the components of Fonterra’s climate action plan, as well as the assumptions, risks and uncertainties underpinning our near term targets, please refer to the Fonterra's Climate Roadmap.

Fonterra's SBTi validated Targets are: 

Energy and industrial targets: Fonterra Co-operative Group Limited commits to reduce absolute scope 1 and 2 GHG emissions by 50.4% by FY2030 from a FY2018 base year.* 

Fonterra Co-operative Group Limited also commits that 78.2% of its 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 2028.

*The target boundary includes land-related emissions and removals from bioenergy feedstocks. 

Forest, Land and Agriculture specific target: Fonterra Co-operative Group Limited commits to reduce scope 1 and 3 FLAG GHG emissions from dairy 30% per tonne of fat-and-protein-corrected milk by FY2030 from a FY2018 base year.

Zero deforestation target: Fonterra Co-operative Group Limited  also commits to no deforestation across its primary deforestation-linked commodities, with a target date of 31st December 2025.

What it will take to reach our targets: This tool contains targets, ambitions and other forward-looking information which have been prepared on the basis of what we currently know. These statements necessarily involve future projections and assumptions which are inherently uncertain and are subject to risks and limitations. Whether we are able to meet these targets will depend on a number of external factors, some of which are not within Fonterra’s control, including but not limited to the right technological developments, government policy support and changes in on-farm practices.

For a full description of the components of Fonterra’s climate action plan, as well as the assumptions, risks and uncertainties underpinning our near term targets, please refer to the Fonterra's Climate Roadmap. 

Other information

In respect of all our targets, we will continue to assess the relevant risks and review our pathway to achievement. Greenhouse gas emissions accounting methodology, assumptions and scenarios to identify/achieve such targets and calculate emissions are continuously evolving and our approach to target setting and achievement will need to evolve to reflect these changes.