New Zealand Agricultural Climate Change Conference - Lee Stewart - New Zealand Agricultural Greenhouse Gas ...
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Lee Stewart New Zealand Agricultural Climate Change Conference
Celebrating sustainability in the dairy sector
Our Purpose
guides
everything
we do
3
3
Our Strategy
Our strategy focuses on
using New Zealand milk
to meet market needs.
We will create
sustainable value for our
customers and farmers
through innovation,
sustainability and
efficiency.
Innovation Sustainability Efficiency
To create superior value To do what is right for the Unlock greater value from
for our customers and long term good and meet our scale efficiency and focus
farmers consumer and community needs on execution
4
4
Global sustainability challenges are shaping future context for customer and
consumer behaviour.
8m 91% 63%
Tonnes of plastic ends up
Of the world’s population live Consumers concerned
in the in places where air quality about sustainability.
ocean each year exceed WHO guideline limits.
Contributing to growth in the dairy category
Sustainable dairy product launches increased by 83% from 3,000 in 2014 to 5,500 in 2020
Sustainability Claims for Dairy Products Globally
21.2
20.0
18.0
16.0
Variants (% of series)
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2015 2016 2017 2018 2019 2020
Source: Mntel GNPD Analysis
Increased consumer &
stakeholder interest is
now informing our
customers’ responses.
Confidential to Fonterra Co-operative Group | 7
Our customers are setting more ambitious commitments to reduce emissions
in their supply chain
Confidential to Fonterra Co-operative Group 8
How are we responding?
We start from a great base: Fonterra NZ has an on-farm carbon footprint of
one third of the global average
What makes New Zealand on-farm
dairy emissions so efficient?
Pasture-based Long sunshine Plentiful
farming system hours rainfall
Good grass Animal health Renewable
and soil and welfare energy
Confidential to Fonterra Co-operative Group 10Our commitments across our value chain
Low-Carbon Innovative Working Towards Sustainable
Dairying Solutions Net Zero Product Solutions
Emissions
The Co-operative Difference
Farm Environmental Plans
On-Farm Lifecycle Assessments
Farm specific GHG reports
Living Water Partnerships
Confidential to Fonterra Co-operative Group | 11The Co-operative Difference
Supporting and recognising sustainability on-farm
The Co-operative Difference
• Explains existing farm requirements and likely
future on farm requirements and trends
• Covers environment, animal welfare, milk quality,
people, and prosperity
• Recognises farmers who go above these
requirements.
• Premiums for sustainability performance of up to
10c per kgms from 2021
Confidential to Fonterra Co-operative GroupFarm Environment Plans
• Individually tailored plans
• Identify environmental risks on farm
• Outline an action plan for managing risks
• Capture good management practices
• One-on-one delivery
• Can aid in meeting regulatory requirements
• Developed with in-field GIS data captureLow-Carbon Innovative Working Towards Sustainable
Dairying Solutions Net Zero Product Solutions
Emissions
The Co-operative Difference
Farm Environmental Plans
On-Farm Lifecycle Assessments
Farm specific GHG reports
Living Water Partnerships
Confidential to Fonterra Co-operative Group | 14Partnering on Innovative Solutions.
Sea Forest Kowbucha™ Plantain Trial
Partnership
In Australia, we are partnering with Sea Working with the Pastoral Greenhouse Fonterra and Nestlé are teaming up
Forest to understand the risks and Gas Research Consortium (PGgRC) with DairyNZ to expand a promising
practical considerations of using we are investigating whether new dairy plantain trial to help improve waterways
seaweed to reduce methane fermentations, which we are calling and reduce on-farm greenhouse gas
emissions in commercial dairy herds. Kowbucha™, could be used to (GHG) emissions.
reduce methane emissions from
cows.
What we will • Help DSM investigate use of • Work with suppliers in our supply • We will continue to invest in research
their methane inhibitors within chain, helping them to set a target and development to investigate
continue to do: pasture-based farming. aligned with science, by the end breakthrough mitigation technologies
of 2024. for animal emissions.Low-Carbon Innovative Working Towards Sustainable
Dairying Solutions Net Zero Product Solutions
Emissions
The Co-operative Difference
Farm Environmental Plans
On-Farm Lifecycle Assessments
Farm specific GHG reports
Living Water Partnerships
Confidential to Fonterra Co-operative Group | 16Decarbonisation Commitments – TA 10% Coal Reduction
• 30% reduction in absolute emissions by 2030
(FY18 baseline)
• No new coal boilers to be installed
• Prioritise the phase out of coal use by 2037
• Net Zero emissions by 2050, on the way to
using 100% renewable energy for all
manufacturing
Confidential to Fonterra Co-operative GroupLow-Carbon Innovative Working Towards Sustainable
Dairying Solutions Net Zero Product Solutions
Emissions
The Co-operative Difference
Farm Environmental Plans
On-Farm Lifecycle Assessments
Farm specific GHG reports
Living Water Partnerships
Confidential to Fonterra Co-operative Group | 18Sustainable Product Solutions.
Anchor NZMP Organic Butter Simply Milk Product Transparency
carbonzero™ carbonzero™ certified
What we will
• Develop carbon zero ingredients
continue to do: and products.Packaging
Innovation
Introducing…
Our NEW Plant Based Bottle!
1. Innovative NEW plastic made from Sugarcane
2. Low Carbon bottle
3. 100% kerbside recyclable
4. First Plant Based Milk bottle in New Zealand!
5. Incremental to our current range of standard Anchor 2L
BlueProvenance.org is a platform that enable us to tell meaningful sustainability stories through verified & trusted information
We are focusing on
• Working alongside our farmers
• Collaborating with external bodies
• Offering more choice and transparency to consumers
• Partnering with our customers in emissions reduction projects
Confidential to Fonterra Co-operative Group | 24Ngā mihi Thank you.
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