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Industry Happenings

December 5, 2018


Fonterra shows progress toward sustainability goals in newly released report


Fonterra has released its second annual Sustainability Report showing how the co-operative is progressing toward its environmental, social and economic goals.


CEO Miles Hurrell said the report is one of the ways Fonterra is showing where it's at and where it needs to get to in sustainability.


"There are areas where we're leading our industry, thanks to the hard work of our farmers, people and partners. But there are also areas where we've tried and haven't hit the mark yet, and the report doesn't shy away from that," Hurrell said.


The report said that New Zealand farmers lead the world in many aspects of sustainable dairying, with high productivity, year-round pasture grazing and lower use of supplementary feeds. With the scale of the industry in New Zealand, dairy's environmental footprint is considered nationally significant.


"Our farmers have led the way with excluding cows from waterways but other areas are going to take longer, like lowering greenhouse gas emissions both on farm and in manufacturing," says Fonterra's Director of Sustainability Carolyn Mortland.


"Our ambition is to make the best nutrition in a way that regenerates our farms, our country and the world. The challenges associated with this are significant, but we're committed to making a difference", she added.


To help with this ambition, Fonterra recently appointed an independent Sustainability Advisory Panel, chaired by Sir Rob Fenwick.


The Sustainability Report 2018 was prepared using the internationally recognised Global Reporting Initiative (GRI) Standards.


The report is organised into the three pillars of Fonterra's sustainability framework—nutrition, environment and community.


Highlights under nutrition include:


-- Fonterra's launch of a new dedicated medical nutrition division


-- 71% of Fonterra's everyday and advanced nutrition products meet Fonterra's Food and Nutrition Guidelines. This is working toward a target of 75% by 2020 and 100% by 2025; and


-- 92% of Fonterra's products are totally electronically traceable, on the way to a target of 100% by 2020.


Some highlights under environment:


-- Farmers who supply Fonterra milk in New Zealand have among the lowest greenhouse gas emissions per litre of milk collected in the world (0.87 per kg CO2-e/kg FPCM).


-- Fonterra farmers have fenced 99.6% of permanent waterways and installed bridges or culverts at 99.9% of regular crossings. This major investment by farmers to keep cows out of waterways is now considered complete, although continued investment will be required to maintain the exclusion.


-- A recent water recycling innovation at Fonterra's Pahiatua manufacturing site will save about half a million litres of water a day this season.


Among the highlights under community:


-- During fiscal year 2018 Fonterra received the Deloitte Top 200 Diversity & Inclusion Leadership Award and the Top Graduate Employer Award in New Zealand.


-- Fonterra halved its gender pay gap in New Zealand from 4% to 2%, against a national average of 9.2%.


-- 696 community initiatives were supported through the Fonterra Grass Roots Fund in New Zealand, Australia and Sri Lanka.


The full report is available at www.fonterra.com/sustainabilityreport2018.

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