Business / Environment

How will Fonterra get off coal to meet climate goals?

09:31 am on 9 October 2024

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Edendale exteriors Photo: Fonterra / Supplied

Fonterra is typically the country's second biggest burner of coal, but it doesn't expect to get out of the fossil fuel for more than a decade.

New Zealand's biggest company, also the world's largest processor of dairy products, is coming under increasing scrutiny from its major international customers.

That's because Fonterra's greenhouse gas emissions are being counted in their own emissions budgets under 'Scope 3' emissions, which are not directly emitted by a company but done so by suppliers and distributors.

Multinationals like Mars and Danone have committed to measuring, and ultimately cutting 'Scope 3' emissions, which in some cases account for up to 95 percent of their total footprint.

Fonterra has pledged to cut on-farm emissions by 30 percent by 2030.

And to cut out coal use in its plant operations by 2037. Is it moving fast enough?

Chris Kane, Fonterra's director of global engineering and technical, speaks to Kathryn about the company's climate goals.