Fonterra announces goal to reduce reliance on coal

Fonterra has announced its intention to reduce its reliance on coal — the latest in a series of targets the company has set to achieve full sustainability. Fonterra also intends to reduce emissions by 30% across all manufacturing operations by 2030, achieving net zero by 2050, and reduce water use by 20% across its manufacturing sites by 2020.

Fonterra will also implement a tailored Farm Environment Plan for every Fonterra farmer by 2025, introduce recyclable, re-usable and compostable packaging by 2025.

“Sustainability will be at the heart of everything we do,” said Robert Spurway, Chief Operating Officer at Fonterra. “As part of this, we want to step up our efforts to help New Zealand transition to a zero-carbon economy.”

Fonterra has 32 manufacturing sites across the country, of which about 40% of its current processing energy is from coal. The rest is from natural gas, electricity and wood.

Transitioning Fonterra’s sites away from coal requires a staged approach, as there are many practical challenges to overcome. New Zealand’s current energy infrastructure cannot handle Fonterra’s requirements, as alternatives to coal aren’t available, or not at the scale needed.

The company also faces cost challenges, as transitioning to cleaner fuels will require additional investment, balanced with keeping the company competitive. The company intends to achieve its targets through partnerships and businesses working together, like the Climate Leaders Coalition and Sustainable Business Council.

Fonterra’s manufacturing operations are on track to reduce emissions by 30% across all its operations by 2030 and achieve net zero by 2050.