We're on track to deliver our 2030 climate targets

In November 2023 Fonterra launched its Climate Roadmap, our strategy towards Net Zero 2050 which included our 2030 targets. It also detailed our action plan for how the Co-operative will deliver emissions reductions across farming, manufacturing and distribution. Our near term targets are science based and have been validated by the Science Based Targets initiative (SBTi), this means SBTi have classified Fonterra's targets as in line with a 1.5°C future. While our progress won’t be linear, one year on we’re on track with our action plan to deliver those targets, but there is more work to do.

Our progress

Farming emissions 

Our 2030 on-farm target is a 30% reduction in Scope 1 and 3 FLAG GHG emissions from dairy per tonne of fat-and-protein-corrected milk (FPCM) from a FY18 base year.* Our on-farm target is divided into four specific work areas, our progress includes the following:

Innovating new technologies

We’re continuing to support the development of methane mitigating technologies through our investment in AgriZero^NZ. AgriZero^NZ has committed over $34 million in innovative technology and R&D that the aim of helping to reduce emissions for New Zealand pastoral dairy farming. Some of those investments include:

• Ruminant BioTech, a digestible slow-release methane inhibitor.
• BioLumic, a UV light seed treatment to increase lipid content and reduce methane output of grazing animals. 
• ArkeaBio, a methane vaccine.
• Hoofprint Biome Inc, which uses enzymes and probiotics as a supplement to optimise gut health and improve efficiency in ruminants.  
   

Best practice farming

Our biggest opportunity to reduce farming emissions right now is by driving greater efficiencies through best practice farming, this has been a huge focus area for us over the last 12 months. We know these practices will strengthen farm profitability, productivity, and sustainability, it’s a win-win for everyone. 

We’ve engaged with over 90% of our farmer owners in New Zealand about our emissions reduction targets and how we plan to achieve them. Additionally, to date, 93% of Fonterra’s New Zealand farms now have Farm Environment Plans. This plan not only helps in terms of giving farmers advice about reducing their environmental impact, it also gives advice about efficiency and productivity. 

We’ve also developed a suite of support services and tools we’re starting to roll out to farmers supplying Fonterra New Zealand to improve efficiencies on farm. These focus on improving herd performance, optimising nutrients from fertiliser, minimising energy on farm, and delivering the optimal nutrition to cows. 

Increasing vegetation

Our next area is working with nature and measuring carbon removals on our farmer shareholders’ farms. We’re using a combination of satellite imagery, aerial photography, and LIDAR data to measure woody vegetation and trees on individual farms that supply milk to us. We will then use that information to measure carbon sequestration at individual farm level annually.

Land use change

And finally, reported emissions attributed to historic conversion of New Zealand land into dairy farming are expected to start showing reductions from the 2024/2025 farming season.

Manufacturing emissions

Our manufacturing emissions fall under emission Scopes 1 and 2 relating to our energy use in collecting and processing our farmer owners’ milk. Our 2030 target includes a 50.4% absolute reduction in Scope 1 & 2 GHG emissions from our FY18 base year, and to date we’ve reduced these by 18.5%. 

By end of 2024, we will have achieved a 40% reduction in the number of New Zealand sites using coal from a FY18 base year and we’ve made further progress towards transitioning from coal to renewable energy sources. The following energy and emissions reduction initiatives are now complete and operational:

• A new biomass boiler at our Stirling site (our first 100% renewable thermal energy site), cutting annual carbon emissions by 18,500 tonnes.
• A new biomass boiler at our Waitoa site in the Waikato, decreasing carbon emissions by at least 48,000 tonnes annually.
• Two 3.5MW heat pumps at our Whareroa site in Taranaki, which are the largest heat pumps in New Zealand.
• A hybrid emissions reduction solution with a heat pump and solar system at one of our consumer brand sites in the Manawatu.
• A heat recovery project in the lactose plant at our Clandeboye site in South Canterbury decreasing carbon emissions by around 3,000 tonnes annually.
• Conversion of two coal boilers at our Hautapu site in the Waikato to use renewable wood pellets, with a forecast reduction of 12,000 tonnes of carbon emissions per year.
• Installation of our first electrode boiler at our Edendale site in Southland, which will reduce emissions by around 47,000 tonnes per year. 

Transportation emissions

Our distribution emissions occur right across our value chain. We’re working to increase efficiencies, but it’s important to note only about 2% our reported emissions are currently associated with distribution to destination countries. In February, we launched the NZMP™ Carbon Footprinter which now includes a shipping emissions feature. This tool helps our customers calculate the average emissions of New Zealand sourced NZMP products shipped to key destinations around the world. Since the launch, we’ve had over 4,000 users. 

What’s next? 

We’ll continue to deliver tools and services to support farmers with emissions efficiency on-farm. We’re also looking at innovative solutions to help the transition off fossil fuels across our manufacturing sites and operations. And we will continue to partner with our customers, bringing them closer to our farmers to help accelerate emissions reduction and build a resilient New Zealand dairy industry for the future. 

The Fonterra Climate Roadmap is our strategy - the path that takes us towards our 2030 targets and ambition to be net zero by 2050. It outlines how Fonterra expects to deliver key actions across farming, manufacturing and supply chain operations and the support it will need to get there. First released in November 2023, our second edition provides an update based on the latest data and shows where we are at as a Co-operative today. View the Climate Roadmap.

*The target includes FLAG emissions and removals.​