The targets were net zero emissions for Fonterra’s global operations by 2050, with a 30% reduction by 2030 from a 2015 baseline, chief operating officer Robert Spurway said.
It had also set a target of climate-neutral growth for onfarm emissions through until 2030, which meant any growth in milk production would have its resulting carbon emissions reduced or offset.
It gave no further details on how that would be achieved or obligations to be put on new dairy farmers.
On two controversial matters, coal-fired boilers and diesel-powered tankers, Fonterra made only modest proposals.
It vowed to build no more coal-fired boilers from 2030 onwards, when it presumed electricity and biomass alternatives would be viable.
It mentioned the introduction of some biofuel into the 500-plus tanker fleet and committed to have 100 electric vehicles in its light vehicle fleet by 2019.
Fonterra also reiterated its commitment to greenhouse gas mitigation in dairy farming.
“New Zealand is one of the world’s most emissions-efficient dairy producers.
“We will make the most of this position by investing in breakthrough technologies such as methane vaccines and inhibitors, low-emission feeds and genetics that produce low-emissions animals and then sharing them with the world,” Spurway said.
Fonterra’s strong leadership on ambitious and challenging targets was welcomed by Abbie Reynolds, executive director of the Sustainable Business Council, of which Fonterra was one of the largest members.
In the detail of Fonterra’s announcement in association with the Ministry for the Environment was mentioned a report under way into the technical and economic feasibility of electrification of process heat (conversion of coal-fired boilers).
The report would be ready next month for input to government regulations around greenhouse gas and the Emissions Trading Scheme and be made available publicly.
But Fonterra also said largely renewable electric power was expensive compared with current energy sources.
