Sustainability

"Strong healthy local environments and communities are the foundation for sustainable, profitable dairy farming. That’s why, what we call the “Sustainable Co-operative” is one of our three strategic priorities – alongside Strong V3 Co-operative and Innovative Co-operative."

 John Wilson and Theo Spierings

Fonterra

Related documents.

Download the full Sustainability Report 2017 - E-READER,

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Sustainable strategy

Sustainable strategy is at the core of our Co-operative. It’s how we create long-term value for future generations. We consider the long-term challenges and shifts we face as a global food producer to ensure we are acting and planning today with a long-term view to deliver a sustainable business.

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Sustainable dairying

Sustainable dairying requires working within the environmental constraints of the land to harness its productive value, creating sustainable livelihoods while meeting the social and environmental expectations of communities and customers to deliver high quality products.

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Sustainable operations

Sustainable operations means taking care to preserve every drop of natural goodness from the milk we collect. It means operating efficiently, minimising our manufacturing sites’ energy use and emissions and investing in new technologies and equipment.

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Sustainable consumption

Fonterra is a global company, exporting products to more than 140 countries. As the world’s largest exporter of dairy products, we have significant influence over the impact of dairy products around the world. The primary impact of our products is on the health and wellbeing of our consumers.

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$20m

Living Water 10-year partnership with the New Zealand Department of Conservation.

0.96

The ratio of female/ male base salaries in New Zealand is 0.96. This is our largest employment market.

3.85

Highest staff engagement since 2010.

$750k

Distributed to 432 community programmes through the Fonterra Grass Roots Fund.

5.2

TRIFR1 health and safety rate, improved 19% on the previous year.

24.6m

Serves of in-school milk to New Zealand children through the Fonterra Milk for Schools and KickStart Breakfast programmes.

1.09

Ratio of female/male base salaries across five largest operating locations.

Related documents.

Download the full Sustainability Report 2017 - E-READER,

Our Opportunity.

Connection with farmers.

Farmers are strongly represented in our governance and have a vested interested in ensuring the Co-operative is able to generate long-term value for all stakeholders in the widest sense.

Innovative heritage and culture.

Huge productivity gains achieved through generations of innovation have ensured New Zealand dairy farmers are among the most efficient in the world.

End-to-end integrated value chain.

The value of our pasture-fed New Zealand dairy products continues to grow in importance and customer demand. We recognised this with the launch of our Trusted Goodness™ quality seal this year.

Scale.

As one of the world’s largest global dairy businesses and the largest exporter of dairy products, we deliver products to more than 100 countries and are actively involved in a wide range of international forums.

Our ambition.

Our ambition is to make a difference in the lives of two billion people by 2025 and we believe we have the opportunity to create the scale of change to help achieve this.


 

Our Approach.

Nutrition.

  • Address public health challenges by improving the nutritional profile of our products and promoting healthy diets

  • Improve access to adequate nutrition by developing affordable products tailored to specific nutritional needs of communities

  • Improve the wellbeing of individuals by leading innovation in advanced dairy nutritional products to address specific health needs

Environment.

  • Improve the health and biodiversity of our land and waters by reducing the impacts of farming and manufacturing and working in partnership with others

  • Lead the transition to a low-carbon future by investing in innovation and infrastructure to remove greenhouse gas emissions from our supply chain

  • Meet the growing nutritional demand through improvements in productivity and minimising waste from farm to consumer

Community.

  • Support healthy sustainable livelihoods for our farmers by returning the most value from every drop of milk by driving volume to higher value

  • Provide positive livelihoods for our people by developing a diverse, skilled and agile workforce and promoting a healthy and safe working environment

  • Invest in the future of our communities by sharing what we do best and building farming capability in key emerging dairy markets

Innovation.

  • Support healthy sustainable livelihoods for our farmers by returning the most value from every drop of milk by driving volume to higher value

  • Provide positive livelihoods for our people by developing a diverse, skilled and agile workforce and promoting a healthy and safe working environment

  • Invest in the future of our communities by sharing what we do best and building farming capability in key emerging dairy markets


 

Governance & stakeholder engagement.

Embedding sustainability.

At Fonterra, the roots of our sustainability management system are in individual programmes which were established to tackle specific issues that had been identified. This meant that, through these programmes, we made good progress against many sustainability issues. However, this progress was not captured under one governance umbrella, and we had no process for identifying gaps in our performance or proactively recognising new or emerging topics.

In 2014 we launched a project to enhance governance of sustainability and social responsibility topics, to introduce processes for identifying new and emerging topics, and prioritising actions and assigning accountability. This project was aligned with ISO26000, an international standard for organisational social responsibility. This initiative shaped our internal accountability, materiality process, and sustainability stakeholder engagement.

Accountability for sustainability.

Accountability for sustainability rests with the Fonterra Board, our CEO, and the Fonterra Management Team (FMT). Regular performance updates are provided at this governance level. Accountability for individual elements of sustainability performance cascades through the organisation and is integrated into individuals’ Key Performance Indicators (KPIs) where relevant.

Operational delivery of sustainability strategy, and accountability for performance against targets, is integrated into the organisation, with geographical business units responsible for performance in-country, and Group functions responsible for progressing performance on specific topics at the global level. Key teams include the Sustainable Dairying teams in New Zealand and Australia, the Global Operations sustainability function, and the Food Safety, Quality and Regulatory (FSQR) and Health, Safety and Wellbeing teams.

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