Fonterra Co-operative Group has announced the company is on track to meet its climate targets, and has turned off the coal boiler at its Waitoa site, making its North Island manufacturing entirely coal free.

The co-operative launched its Climate Roadmap in November 2023, which outlined its plans to achieve its near-term climate targets and to be net zero by 2050.

Fonterra director of sustainability, Charlotte Rutherford, said although progress may not be linear, the company is on track to meet these targets.

“I’m particularly proud of the work the team has done to achieve SBTi validation, the progress in providing tools and services for farmers, and the efforts of decarbonising our manufacturing sites,” said Rutherford.

The company has completed three major renewable energy projects this year, reducing emissions by a total of 62,500 tonnes.

In February, Fonterra installed a new heat recovery system in its Clandeboye lactose plant, and converted the coal boilers at its Hautapu site to wood pellets in August. The co-op’s biggest project was its first electrode boiler, which powered up in October at its Edendale site, generating steam from electricity to cut annual emissions by 20 per cent.

The company is also focused on laying the foundations to support farmers in reducing their emissions.

“Our approach is about empowering farmers with tools, insights and support to make meaningful changes,” said Rutherford.

“Over the past 12 months our farmer-facing teams have been working on a range of tools and services for farmers, including targeted conversations to understand what the future may look like, and mapping tools that will help identify woody vegetation for carbon sequestration.

“It’s likely we will see significant gains towards our on-farm emissions intensity target as we get closer to 2030, but it is pleasing to see in this first year we have made good progress as we continue to collaborate to achieve the best outcomes for our farmer shareholders, country and customers.

“As we move closer to 2030 we will begin to see the impact of these tools and services in the results. We know there’s more work to be done, and right across the value chain we continue to invest in innovative technologies and solutions that will set us up for success,” she said.

Other milestones over the last 12 months that the company has highlighted include:

• 93 per cent of Fonterra New Zealand farms now have Farm Environment Plans, up from 85 per cent 12 months ago.
• Continued investment in AgriZeroNZ, which has committed $34 million to emissions reduction technologies and R&D, including Ruminant BioTech’s methane inhibitor, BioLumic’s UV seed treatment, ArkeaBio’s methane vaccine and Hoofprint Biome’s gut health supplements.
• Launched the NZMP Carbon Footprinter emissions calculator in February, helping customers understand the average emissions of major New Zealand-sourced NZMP products, including the emissions from shipping to key destinations around the world. Since launch, there have been over 4000 users of the tool.

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