2018
Baseline measured
We measured our emissions footprint, to give ourselves a baseline against which to track progress.
Fonterra’s farming ecosystem is founded on grass-fed¹, pasture-based practices, with a continued focus on supporting animals’ wellbeing. We’re taking steps to help take care of Aotearoa New Zealand’s precious natural resources.
¹ 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 Fonterra.com/grass-fed for more information.
Our future depends on protecting the natural environment. We must take a long-term view about how we act today and tomorrow to support the sustainability of dairy farming in New Zealand.
We believe we must take action.
Our near-term targets²
Fonterra’s emissions reduction targets have been validated by the Science Based Target initiative (SBTi)³ and are as below.
Energy & Industrial (E&I) absolute reduction and engagement
50.4%
We commit to reduce our absolute Scope 1 and 2 GHG emissions by 50.4% by FY2030 from a FY2018 base year.⁴
78.2%
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.
Forest, Land and Agriculture (FLAG) guidance⁵ specific intensity reduction
30.0%
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 year.⁶
No deforestation
We also commit to no deforestation across our primary deforestation- linked commodities, with a target date of no later than 31st December 2025.⁷
² In August 2025, we announced that we have agreed to sell our Consumer and associated businesses to Lactalis, subject to certain conditions including approval by farmer shareholders. Subject to satisfaction of all conditions, the transaction is expected to complete in the first half of the 2026 calendar year. If completed, the scale of the divestment would require us to re-assess our near-term emissions reduction targets.
³ The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets.
⁴The target boundary includes land-related emissions and removals from bioenergy feedstocks.
⁵The SBTi’s Forest, Land and Agriculture (FLAG) guidance provides the world’s first standard method for companies in land-intensive sectors to set science-based targets for emissions reductions that include land-based emission reductions and removals.
⁶The target includes FLAG emissions and removals.
⁷ We are over 90% of the way towards achieving this target and are working with suppliers on time-bound action plans. However, due to long-term contracts and existing stock, full compliance by 31 December 2025 is unlikely. If this is the case, we will continue progressing towards our target as soon as possible.
Continuing our long-standing focus on sustainability.
100%
of Fonterra supplying New Zealand farms have a Farm Environment Plan (FEP).
14.7%
Reduction in absolute water take across manufacturing sites in FY25 compared to our FY18 base year.
We have drawn close to our target of a 15% reduction by FY30.
20.7%
Reduction in absolute Scope 1 and 2 GHG emissions from a FY18 base year.
90%
We estimate that around 90% of our packaging is recycle-ready.
39.1%
Female representation in global senior leadership (Band 12+).
We continue to track progress against our target representation in global senior leadership of 40% female, 40% male, 20% of any gender to provide the flexibility of female, male, non-binary or open.
Our journey so far towards our net zero 2050 ambition
Our Climate Roadmap is our strategy – the path that helps us towards our 2030 targets and our ambition to be net zero by 2050.
2018
Co-firing begins at Brightwater
Our Brightwater processing plant in Nelson began co-firing on wood, reducing emissions by 2,400 tonnes each year. This site closed in 2023.
2020
Renewable-powered boiler
We completed NZ’s largest boiler conversion to renewable biomass at our Te Awamutu site.
2022
Electric tanker
We trialled Milk-E, New Zealand’s first electric milk tanker.
2023
Thermal energy
Stirling became our first 100% renewable thermal energy plant.
2023
Wood biomass boiler
The new boiler at Waitoa has halved coal usage, cutting emissions by around 46,000 tonnes annually.
2024
First electrode boiler
The Co-op’s first electrode boiler at Edendale powered up in October, generating steam from electricity, cutting the site’s overall emissions by around 47,500 tonnes.
2024
New biomass boiler
Conversion of a coal boiler to wood pellets at Hautapu with an expected annual emissions reduction of around 12,000 tonnes.
2024
Heat recovery project
A new heat recovery system in the Lactose plant at Clandeboye projected to reduce annual carbon emissions by around 3,000 tonnes annually.
2025
Milestones
- 100% of Fonterra’s New Zealand farms now have Farm Environment Plans.
- Exited coal use in the North Island and now focusing on removing coal from 5 remaining sites in the South Island.*
- Invested in a two year EcoPond pilot, an innovative effluent pond mobile dosing service.
- Launched Customer Incentives, a funding scheme that rewards farmers for low emissions footprints and supports uptake of on-farm solutions.
- Clandeboye: One of our largest decarbonisation projects to date, converting two coal boilers to wood pellets. This shift is expected to cut emissions by approximately 150,000 tonnes of CO₂e each year and help build a reliable supply chain for renewable energy across New Zealand.
Near-term Targets²
- 50.4% absolution reduction in Scope 1 & 2 GHG emissions from a FY18 base year by FY30.⁸
- 30% intensity reduction in Scope 1 and Scope 3 FLAG GHG emissions from dairy, per tonne of fat-and-protein-correct milk from a FY18 base year by FY30.
- 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 FY28.
- No deforestation across our primary deforestation-linked commodities, with a target date of no later than 31 December 2025⁹.
2030
- Forecast spend of $700 million NZD investment in decarbonising operations planned out to 2030.
Up to $90m NZD of this spend is co-funded by the Government from the Government Investment in Decarbonising Industry (GIDI) fund.
Net Zero Ambition
Our net zero 2050 ambition will be supported by:
- Continued investment in technology and partnerships to develop solutions.
- Elimination of remaining use of coal as an energy source in our operations by 2037.
- Understanding the role of offsetting any remaining emissions that are unable to be reduced through best practice approaches.
⁸ The target boundary includes land-related emissions and removals from bioenergy feedstocks.
⁹ We are over 90% of the way towards achieving this target an are committed to making progress, but we are unlikely to achieve it in full by 31 December 2025.
Our near-term emissions reduction targets 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. Please refer to our Climate Roadmap for key assumptions and uncertainties. We anticipate that our 2050 net zero ambition will be supported by the actions described in our Climate Roadmap and ambition guiding our work and investment today. Further detail on achievability of our 2050 ambition will be presented as further information and technology becomes available.