The Sustainability Report follows Fonterra’s recent announcements on emissions and clean water in New Zealand, and highlights the Co-operative’s commitment to an open discussion on how it is taking its responsibilities seriously and where it is making real progress. The report was compiled using the internationally recognised Global Reporting Initiative (GRI) framework and independently assured. This follows global best practice and underlines the integrity of the report.
The dairy industry is a cornerstone of the New Zealand economy but its environmental footprint is of national significance. The report gives an objective view of Fonterra’s environmental footprint and our contribution to the United Nations Sustainability Development Goals.
The report also considers Fonterra’s global operating context within the rapidly evolving food sector. The global food production system is transforming, driven by the challenges of a growing population and stretched environmental limits. Land degradation is affecting 20 percent of the planet’s arable land and by 2030, 40 percent of the world’s demand for water is unlikely to be met.
Fonterra’s Director of Sustainability, Carolyn Mortland, said the Co-operative shares the same long-term aspirations for the land and water as local communities and understands the evolving expectations of customers and consumers.
“The report offers a new level of openness. More and more customers and consumers want to know where their food is from, how it got to them and the impact all of that had on the environment,” Ms Mortland said.
“Our continued success on the world stage is reliant on a clean, sustainable environment and continuous improvement in the production and transportation of our products. All that type of information is laid out in the report.”
“There is, and has been, a lot of work going on by our farmers and right across the industry looking at how to best manage the impacts of dairy.The level of research, investment and collaboration underlines the commitment and determination to find workable and scalable solutions to improve the world around us. That too is covered.”
The report also covers Fonterra’s progress in maximising the nutritional benefits of products by significantly reducing refined carbohydrates, sodium and sugar. This year, a new specialised milk product was launched in Malaysia to help combat high cholesterol and diabetes.
Highlights in the report include:
We directly source milk from 7 countries around the world, but the milk from our New Zealand shareholder farmers accounts for the majority of our supply.
Fonterra operates 51 sites in 11 countries. More than 95% of raw milk processing happens in New Zealand and Australia.
An on-going focus is on continuing to improve the nutritional benefits of our products, minimising non-dairy ingredients such as added sugars and investing in innovation to deliver advanced nutritional products to address specific health needs.
Fonterra employs more than 22,000 people across the world with just over half of these in New Zealand. For FY17:
Fact Box: Fonterra by the Numbers
The full report can be found here www.fonterra.com/sustainabilityreport