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Fonterra is making progress in work to transition its manufacturing sites out of coal by 2037.
Fonterra says securing capital for future growth will depend on how its farmers manage emissions on-farm.
The co-operative plans to start discussions with farmer shareholders "about what a target will look like and how we'll get there".
Chief executive Miles Hurrell says having a target will help secure high value customers, enable the co-op and farmer owners to meet ongoing regulations as well as secure future finance.
Hurrell says there is "a strong pull" coming from customers, consumers and the capital market.
"Our access to the capital will be linked to how we are dealing with emissions on farm," he says.
Fonterra acknowledges making change on-farm is not easy.
Hurrell points out that the co-op currently has 18 methane-reduction projects underway and 30 active trials of potential solutions.
"These activities support us in building a stronger co-op for the future, and we'll be out talking about these topics over the coming months.
"As we've said earlier, we're well positioned to navigate the challenges we're currently seeing, while also looking out to the needs of our customers and consumers in the years ahead.
"This long-term view determines the steps we need to take today to ensure we continue to be a dairy provider of choice and strong co-op for generations to come."
The co-op is also investing in R&D and new technologies to help reduce emissions on-farm.
Projects underway include a new private-public partnership joint venture announced in November, through which Government and partners from across the food and fibre sectors will work together to reduce methane emissions.
Hurrell says the co-op is also making progress in work to transition its manufacturing sites out of coal by 2037.
"At our Waitoa site we're converting one of our boilers to wood biomass.
"Scheduled to be operating later this year, the new boiler will reduce the site's annual emissions by 48,000 tonnes of CO2e, the equivalent of taking 20,000 cars off New Zealand's roads."
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
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Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
