How we are reducing our distribution emissions

While it may be surprising to some, distribution is responsible for only 1% of our total value chain emissions. But with climate change being one of the biggest challenges facing the planet, every single % counts. For the sake of future generations, we need to act now to contribute to a future where global temperature increase is limited to 1.5°C.

As part of our strategy towards a net zero future, Fonterra’s Climate Roadmap outlines how our Co-operative will deliver key actions across farming, manufacturing, supply operations and distribution across our value chain. Distribution is part of our scopes 1 & 2 emissions profile. Scopes 1 & 2 are defined as the direct emissions from sources owned or controlled by an organisation, and the indirect emissions from the generation of purchased energy. Our 2030 targets include a 50% absolute reduction in Scope 1 & 2 GHG emissions from our FY18 base year.

What we are doing to reduce these emissions even further?

We expect the following developments and initiatives will help us reduce our Scope 1 & 2 emissions: 

Road to rail

Transition away from road to rail freight where feasible to reduce emissions, road congestion and potential for road accidents.

Customer supply chain

Work with customers to determine the best shipping methods for their needs with a focus on emissions reduction.

Efficient transport

Work with partners and suppliers to develop responsive and agile supply chains whilst improving truck and container utilisation and transport efficiencies.

Work with suppliers

Encourage suppliers to set sustainability commitments and support project implementation through shared tools, practices and networks.

Partner for innovation

Partner with others to research and trial new low emission solutions for our heavy vehicle fleet.

Kotahi partnership

Establish more sustainable and efficient distribution through our collaborative joint venture, Kotahi, by pooling cargo movements.  

What our distribution emission reductions mean for NZMP customers

By delivering these emissions reductions plans, customers can leverage our sustainability initiatives as part of reducing their own emissions. Our 2030 targets and net zero 2050 ambition helps give our customers confidence they are purchasing dairy ingredients from one of the world's lowest emissions suppliers of dairy at scale.

Earlier this year we launched the NZMP™ Carbon Footprinter to help our customers calculate the emissions profile of New Zealand sourced NZMP products. As of 1 August, this tool will include a new feature which calculates the average emissions generated in shipping those products to key destinations around the world. This helps customers to further understand the emissions generated from New Zealand sourced NZMP products, noting that shipping accounts for a small proportion of the product's total emissions.