Fonterra Introduces Greenhouse Gas Reduction Target for Farmers

  • Says customers, lenders want more progress on sustainability
  • But no current plans to incentivize farmers to achieve target

The company is seeking an average 30% intensity reduction in emissions across all the farms that supply milk by 2030.

Photographer: Brendon O'Hagan/Bloomberg
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Fonterra Cooperative Group, the world’s biggest dairy exporter, is introducing a greenhouse gas emissions target for its New Zealand farmers, saying its biggest customers and lenders want to see more progress on sustainability.

The company is seeking an average 30% intensity reduction in emissions across all the farms that supply milk by 2030 from a 2018 baseline, Chief Executive Officer Miles Hurrell said Thursday in Wellington. The intensity measure, which is expressed as a change in carbon dioxide equivalent per ton of milk, means emissions of CO2, methane and nitrous oxide are linked to each unit of production.