Tuesday, 07 November 2023 10:55

Fonterra to set Scope 3 emissions target soon

Written by  Sudesh Kissun
Fonterra chief executive Miles Hurrell says the co-op will soon set Scope 3 targets which cover indirect emissions from its farm suppliers and account for more than 90% of its tally. Fonterra chief executive Miles Hurrell says the co-op will soon set Scope 3 targets which cover indirect emissions from its farm suppliers and account for more than 90% of its tally.

Fonterra will shortly be introducing a Scope 3 emissions target, which will seek to reduce emissions intensity on supplying farms.

Chief executive Miles Hurrell told the International Dairy Federation's world dairy summit in Chicago last month, working with farmers to collectively achieve this goal is imperative for the co-op.

"We already provide farmers with insights reports which detail their individual farm's greenhouse gas emissions," he says. "By knowing where their emissions come from, farmers can see where they need to take action on farm."

Fonterra's plan to introduce a Scope 3 emissions target was first announced at its annual general meeting one year ago.

The co-op had initially planned to release the target around June. However, the co-op delayed it by six months after pushback from farmer shareholders, already under pressure from rising interest rates, soaring farm input costs and lower farmgate milk price.

Fonterra claims it is facing pressure from overseas markets, big customers and banks to improve sustainability. While the co-operative has been reducing its Scope 1 and 2 emissions, generated primarily by its manufacturing sites and transport operations, it hasn't yet set a target for Scope 3. These cover indirect emissions from its farm suppliers and account for more than 90% of its tally.

Fonterra claims New Zealand's pasture-based farming model produces low carbon dairy with a footprint one third the global average. Hurrell points out that despite this natural advantage, they're always looking to improve, so that the co-op can continue to meet the needs of customers, regulators, and financial institutions.

"But we also know that finding a solution to methane will be a huge unlock for our farmers' emissions profiles. Agriculture makes up almost half of the New Zealand's domestic greenhouse gas footprint, so we know as an industry and a country we must find a solution."

Hurrell says any methane solution must do four things - it must be good for the cow, good for the milk, good for farmers, and of course good for the planet.

He adds that it is no easy task, but the co-op can achieve more through partnering with others. One of these partnerships is between New Zealand agri-industry and Government, in a Joint Venture called AgriZeroNZ. Over the next three years around $165 million has been committed to accelerate the development of emission mitigation tools and technology through targeted emissions.

More like this

Fonterra trims board size

Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.

Returns 'not good enough'

Fonterra leaders are making their case for offloading the co-operative's $3 billion consumer business, noting that its return on capital has been nowhere near respectable.

Record milk price!

A record farmgate milk price for Fonterra shareholders is all but confirmed for this season.

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo…

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter