Fonterra

Fonterra: Climate Commitments & Emissions Performance (Dairy Products, NZ)

Fonterra, a New Zealand-based dairy products company, reported total emissions of approximately 25.82 billion kg CO2e in 2023. This comprised about 1.35 billion kg CO2e in Scope 1 emissions, 500 million kg CO2e in Scope 2 emissions, and approximately 23.98 billion kg CO2e in Scope 3 emissions. Notably, Scope 3 emissions in 2023 were primarily driven by purchased goods and services (approximately 23.53 billion kg CO2e).

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

• 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. The company has a near-term Science Based Target (SBTi) to reduce absolute Scope 1 and 2 GHG emissions by 50.4% by FY2030 from a FY2018 base year. This target is classified as consistent with reductions required to keep warming to 1.5°C. Additionally, Fonterra 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 FY2028.

For its FLAG (Forest, Land and Agriculture) emissions, Fonterra commits to reduce Scope 1 and 3 FLAG GHG emissions from dairy by 30% per tonne of fat-and-protein-corrected milk by FY2030 from a FY2018 base year. The company also aims for no deforestation across its primary deforestation-linked commodities by 31st December 2025.

Fonterra also has a broader long-term ambition to be net-zero by 2050. Previously, the company committed to a 30% reduction in absolute manufacturing (Scope 1 and 2) emissions by 2030 from a FY2015 baseline. These targets and commitments are directly from Fonterra Co-operative Group Limited.