Thursday, July 20, 2023

Fonterra Boosts Efforts to Cut Emissions - Targets Net Zero by 2030

Fonterra testing biomass in it's manufacturing process

"Fonterra Pledges Bold Emissions Reduction Targets - Aiming for Net Zero by 2030”

Fonterra, a major dairy company, has recently announced its commitment to reduce greenhouse gas emissions further. The company has set ambitious targets for Scope 1&2 emissions, which include direct emissions under its control and indirect emissions resulting from its activities but not directly owned or controlled by the company.

The new goal is to achieve a 50% absolute reduction in Scope 1&2 emissions by 2030, using a 2018 baseline. This is a significant increase from their previous target of a 30% reduction by 2030. 

Fonterra's emissions mainly come from their manufacturing operations and supply chain, and achieving this new target is a vital step towards their ultimate aim of becoming net zero by 2050, meaning they will aim to balance out emissions with equivalent carbon removal.

To achieve this ambitious goal, Fonterra plans to focus on energy efficiency improvements and switching to renewable energy sources across its milk collection fleet and manufacturing sites. Particularly, they aim to transition away from coal usage in six of their facilities. 

The company foresees an investment of $790 million in these efforts, with the government contributing up to $90 million through the Government Investment in Decarbonising Industry (GIDI) fund.

Fonterra's CEO, Miles Hurrell, emphasises the importance of collaboration in achieving these targets, and the government funding will help expedite their plans to reduce Scope 1&2 emissions by 50% by 2030 and eliminate coal usage by 2037.

The company is actively exploring various technologies, such as biomass, electrification, and heat pump technology, to make the shift towards renewable energy sources at their manufacturing sites. They have already initiated decarbonisation projects at five sites in the past five years and aim to continue this momentum.

By accelerating their efforts, Fonterra aims to maintain its position as a leading provider of low-carbon dairy products on a global scale. These actions will not only contribute to New Zealand's climate targets but also bring benefits to local communities through job opportunities.

Fonterra is also in discussions with farmers to set a Scope 3 emissions target, which will be announced shortly. All of the company's climate targets align with the Science Based Target initiative, which seeks to limit global warming to 1.5 degrees Celsius. Fonterra is in the process of seeking accreditation for its efforts in this regard.

Overall, Fonterra's increased commitment to emissions reduction is a significant step towards a more sustainable future, and it sets a positive example for other companies to follow suit in the fight against climate change.


Pigeon Post News, Richmond, Tasman.

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