Our ambition is to be net zero in 2050. We're supporting farmers to reduce on-farm emissions intensity and continue to reduce operational emissions while strengthening our resilience to a changing climate.
Alongside this we’re working towards our ambition to contribute to a nature positive* future – which means reducing our impact while helping to regenerate the ecosystems we depend on. Nature is deeply connected to climate and we believe it can be part of the solution. Learn more here.
Our near term targets
The SBTi has validated the below Fonterra Co-operative Group Limited science-based targets.
30.0% Forest, Land & Agriculture (FLAG) specific intensity reduction
We commit to reduce scope 1 and 3 FLAG GHG emissions from dairy by 30.0% per tonne of fat-and-protein-corrected milk (FPCM) by FY2030 from a FY2018 base year1
50.4% Energy & Industry (E&I) absolute reduction
We commit to reduce our absolute scope 1 and 2 GHG emissions by 50.4% by FY2030 from a FY2018 base year.2
78.2% supplier & customer engagement
We commit that 78.2% of our 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.
No deforestation
We also commit to no deforestation across our primary deforestation-linked commodities with a target date of no later than 31 December 2025.3
* A global societal goal defined as to halt and reverse nature loss by 2030 on a 2020 baseline and achieve full recovery by 2050. To put this more simply, it means ensuring more nature in the world in 2030 than in 2020 and continued recovery after that. Find out more about the Nature Positive Initiative here.
The targets specified on this page are in respect of our global business. Our near-term emissions reduction targets above have been set on the basis of what we currently know and reasonably expect to become possible with technological developments, government policy support and on-farm practices. We anticipate that our 2050 net zero ambition will be supported by the actions described in our Sustainability Roadmap. Please refer to the Appendix section in our Sustainability Roadmap for key assumptions and uncertainties. Fonterra completed the sale of its consumer and associated businesses to Lactalis on 31 March 2026. The scale of the divestment of our consumer and related businesses has triggered SBTi re-validation requirements, which require us to reassess our targets so they remain credible and representative of our post-divestment business. We are currently reassessing our targets and expect to provide an update in our FY27 Climate Statements. In the meantime, our existing targets remain in place.
1 The target includes FLAG emissions and removals.
2 The target boundary includes land-related emissions and removals from bioenergy feedstocks.
3 Due to long-term contracts and existing stock, we did not achieve full compliance by the target date of 31 December 2025. However, as at 31 December 2025, we had achieved 93% of our no deforestation target (or 96% if recalculated to exclude our consumer and associated businesses, which were sold to Lactalis on 31 March 2026). We are working with suppliers on time-bound action plans and are continuing to make progress towards full compliance.
Taking action on farm
The same pasture-based system that helps us create grass-fed4 dairy products also presents unique challenges when it comes to reducing on-farm emissions, particularly when solutions need to be scaled across thousands of farms. The majority of our on-farm emissions are methane because of cows’ natural digestion processes. At the same time, New Zealand farmers are facing more variable weather on their dairy farms.
We’re continuing to work alongside farmers to provide practical insights, tools and support and have committed to investing more resource in these areas to strengthen on-farm decision-making, while also preparing to adopt novel technologies as they become commercially available. Learn more about how we're supporting on-farm change here.
Other ways we're aiming to reduce emissions across our value chain
We are continuing to make progress towards reducing our manufacturing emissions and strengthening our energy resilience, with a forecast spend of $986m5 planned through to 2030. As one of New Zealand’s largest energy users, we are focused on balancing emissions reduction, energy efficiency, security of supply and affordability. We achieved coal-free operations across our North Island sites in 2024 and are planning to phase out coal use at our remaining South Island sites by 20376.
Alongside exploring renewable energy solutions such as power purchase agreements and biogas, we are implementing energy efficiency initiatives across our operations and advancing the decarbonisation of our fleet. Learn more about our decarbonisation journey here.
4 Grass-fed means cows mainly grazing on grass and crops in paddocks where they roam. Some farmers may include supplementary feed to help support cows’ nutrition. Visit here for more information.
5 This is based upon the current forecast of projects to be undertaken, with numerous assumptions regarding fuel choices and associated capital costs – this plan is subject to change and the forecast is in money of the day. Up to $90m of this spend is co-funded via the Government Investment in Decarbonising Industry (GIDI) Fund. The GIDI Fund is administered by EECA, who are a New Zealand Government/Crown agency responsible for promoting energy efficiency, energy conservation and the use of renewable sources of energy.
6 In the usual course of business. In the unlikely event that biomass is unavailable as an energy source our converted biomass boilers retain the ability to use coal as an alternative.