New Zealand co-op Fonterra has announced an NZ$1bn (€578m) investment in reducing carbon emissions to achieve a 30% reduction by 2030 and be net zero by 2050. It has already secured an 11.2% reduction since 2018.
Fonterra plans to achieve this by focusing on its scope 1 and scope 2 emissions, which are primarily from its manufacturing operations. Investment will be in moving sites from using gas to biomass and electricity. Coal use is to be phased out and eliminated by 2037.
The sustainable framework document released this week shows that the investment has been developed in partnership with HSBC and Westpac banks and will include issuing green bonds and sustainably linked bonds and loans.
The co-op will have a register of eligible assets and debt will be serviced from general company revenue, not just income streams linked to the investment.
Water reduction is also an element of the sustainability programme, with a reduction of 6.6% so far achieved against the 2018 baseline, with the target of getting this to a 15.5% reduction across the Fonterra sites by 2030.
The move to decarbonising the company fleet is also progressing, with 691 e-vehicles now in operation, including cars, forklifts and the first milk collection tanker. On packaging, 89% is now recycle ready.
In its annual accounts for the year ending 31 July 2022, Fonterra announced that profits after tax were down at NZ$583m (€343m) on a turnover up 11% to NZ$23.4bn (€13.8bn).