Fonterra is escalating its plans to reduce Scope 1 and 2 emissions in its manufacturing and supply chain operations by accelerating some of its work to exit coal.
The dairy cooperative’s CEO Miles Hurrell highlighted that Fonterra plans to cut Scope 1 and 2 emissions by 50% by 2030, surpassing its 2018 targets of a 30% reduction by 2030.
He added: “Fonterra’s Scope 1 and 2 emissions largely come from our manufacturing operations and supply chain. Strengthening our emissions reduction target supports our ambition to be net zero by 2050.”
According to the coop, by achieving its new emissions target, Fonterra will continue to undertake energy efficiency improvements and fuel switching to renewable energy source activities across its milk collection fleet and manufacturing sites, with a focus on the six where it uses coal.
In order to achieve this, Fonterra is forecasting an investment of $790 million, including a New Zealand government contribution of up to $90 million through the country’s Government Investment in Decarbonising Industry fund.
Hurrel said: “As a coop, Fonterra understands how we can achieve more by working together. The addition of government funding enables us to lift our 2030 ambition to reduce Scope 1 and 2 emissions by 50% and optimise our process to get out of coal by 2037.”
“Our decarbonisation plan will see us explore multiple technologies to ensure the most efficient phase out of coal and transition to renewable energy across our manufacturing sites while building resilience into our operations. We are already well underway with shifting our manufacturing operations to renewable energy sources. Over the past five years, we have carried out decarbonisation projects at five different sites, and we’re looking forward to continuing this momentum. We’re currently assessing biomass, electrification and heat pump technology at our Clandeboye and Edendale sites. We see these technologies as the best solutions possible at this stage.”
He said that accelerating the plans will help Fonterra continue to present its customers with the world’s lowest carbon dairy at scale, while contributing to New Zealand meeting its climate targets while delivering benefits across the region, such as job opportunities in local communities.
Fonterra is currently in discussions with farmer suppliers regarding a Scope 3 emissions target, which is said to be announced shortly.
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