Fonterra

Fonterra's Carbon Emissions and Climate Commitments

Fonterra, a New Zealand-based dairy products company, reported total global greenhouse gas emissions of approximately 25.82 billion kg CO2e in 2023. This comprised about 1.35 billion kg CO2e from Scope 1 emissions, 500 million kg CO2e from Scope 2 emissions, and approximately 23.98 billion kg CO2e from Scope 3 emissions. Key contributors to Scope 3 included purchased goods and services (approximately 23.53 billion kg CO2e) and upstream transportation and distribution (292 million kg CO2e).

Looking back, Fonterra's total emissions have seen some fluctuations:

• 2022: Approximately 26.16 billion kg CO2e (Scope 1: 1.37 billion kg CO2e, Scope 2: 565 million kg CO2e, Scope 3: 24.23 billion kg CO2e).
• 2021: Approximately 27.09 billion kg CO2e (Scope 1: 1.55 billion kg CO2e, Scope 2: 652 million kg CO2e, Scope 3: 24.89 billion kg CO2e).
• 2020: Approximately 27.39 billion kg CO2e (Scope 1: 1.71 billion kg CO2e, Scope 2: 634 million kg CO2e, Scope 3: 25.04 billion kg CO2e).
• 2019: Approximately 26.15 billion kg CO2e (Scope 1: 1.70 billion kg CO2e, Scope 2: 662 million kg CO2e, Scope 3: 23.79 billion kg CO2e).
• 2018: Approximately 26.87 billion kg CO2e (Scope 1: 1.73 billion kg CO2e, Scope 2: 701 million kg CO2e, Scope 3: 24.44 billion kg CO2e).

Fonterra has set several significant climate commitments:

• Near-term SBTi Targets (2030): 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. Additionally, 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 FY2028.
• FLAG SBTi Target (2030): The company also commits to reduce Scope 1 and 3 FLAG (Forest, Land and Agriculture) GHG emissions from dairy by 30% per tonne of fat-and-protein-corrected milk by FY2030 from a FY2018 base year. This includes a commitment to no deforestation across primary deforestation-linked commodities by 31st December 2025.
• Net Zero Ambition: Fonterra aims to achieve net zero emissions by 2050, as detailed in its Climate Roadmap.
• Manufacturing Emissions Reduction: Fonterra has an older commitment to reduce absolute manufacturing emissions (Scope 1 and 2) by 30% by 2030 from a 2015 baseline, with reported progress ahead of schedule.