Among other highlights in the report, Fonterra was the first dairy company in New Zealand to have its emission reduction targets endorsed by the UN-backed Science Based Target initiative.
That meant the co-op's 2030 target of 30 per cent reduction in Scope 1 and 2 GHG emissions, (emissions it directly created and those from the energy it used), had been approved as being in line with what the latest climate science said was needed to limit global warming to well below 2°C.
Increasing the energy efficiency of existing assets was also key, and this year Fonterra hit its longest running target of 20 per cent reduction in energy intensity across its New Zealand manufacturing sites between 2003 and 2020.
This was enough energy saved to power all the households in Aotearoa for 1.5 years.
As part of the plan to reach a 30 per cent reduction in emissions by 2030, (and ultimately net zero emissions by 2050), Fonterra was developing site-specific "Greenprints" that outlined the road map to decarbonisation.
The report also highlighted areas for improvement, including the need to achieve better gender and ethnic diversity at leadership level, and accelerate progress towards key 2025 targets such as having 100 per cent reusable, recyclable or compostable packaging.
The Sustainability Advisory Panel provided a valuable external lens as Fonterra worked toward these goals, Global Sustainability Director Carolyn Mortland said.
Listen to Lee Piper interview Carolyn Mortland on The Country Sport Breakfast below:
"Our Co-op's focus is on adopting regenerative principles across the business so that we're restoring and replenishing rather than just protecting and conserving."
"This will take time, and we can't do it alone, but we need to get it right to ensure a better future for our business, people, animals, natural resources and taonga."
Read the full 2020 Sustainability Report at www.fonterra.com/sustainability
Key highlights from the 2020 Report (figures are to July 2020)
Healthy People:
• Celebrated 10 years of serving up KickStart breakfasts to Kiwi kids
• 2 million litres of ethanol supplied for hand sanitiser during Covid-19
• Hit target of 100 per cent of manufacturing sites being independently certified to leading food safety management system
• Introduced "Good Chat" wellbeing calls for employees
• Reduced gender pay gap in all countries where we have significant operations
Healthy Environment:
• First New Zealand dairy company to have emission reduction goals endorsed by the Science Based Targets initiative
• Hit target of 20 per cent reduction in energy intensity from 2003 to 2020
• Switched to wood pellets at Te Awamutu, which will reduce coal use by almost 10 per cent
• Farm-specific GHG emissions profiles made available to all New Zealand farmers
• 34 per cent of farms supplying us in New Zealand have a tailored Farm Environment Plan
• Invested in GHG mitigation solutions including new seaweed trial and Kowbucha project
Healthy Business:
• $11 billion into regional New Zealand for 2019/20 season
• Final cash payout for 2019/20 season: $7.19 per kgMS
• Final 2019/20 Farmgate Milk Price: $7.14 per kgMS
• 2019/20 dividend: 5 cents per share
• Reduced Net Debt by $1.1 billion
• Improved ratio of Debt to EBITDA from 4.4 times to 3.4 times
• Brought forward payment to farmers as well as small and medium-sized vendors in New Zealand
• Developed sustainability solutions based on market demand, including New Zealand's first carbonzero milk and first plant-based milk bottle
• Collaborated with Provenance.org using blockchain to give consumers access to verified sustainability information
