Fonterra will shave 11 years off its coal target by reducing its reliance on coal, the company said. Fonterra COO for Global Operations, Robert Spurway said that, "from today [18 June] Fonterra has put a stop to installing any new coal boilers or increasing capacity to burn coal".
Fonterra has 32 manufacturing sites across New Zealand, with roughly 40 per cent of its current processing energy coming from coal. The rest is from natural gas, electricity and wood.
Spurway said exiting coal was not “as easy as flicking a switch” and would happen in a staged approach.
Fonterra’s manufacturing operations were on track to meet its targets to reduce emissions by 30 per cent across all its operations by 2030 and achieve net zero by 2050. Other targets include: reducing water use by 20 per cent across manufacturing sites by 2020; a tailored Farm Environment Plan for every Fonterra farmer by 2025; 100% recyclable, reusable and compostable packaging by 2025; and powering its Stirling site in Otago with electricity rather than coal.
“One of the emerging themes in our strategy review is that sustainability will be at the heart of everything we do. As part of this, we want to step up our efforts to help New Zealand transition to a zero-carbon economy,” says Spurway.
“Our farmer owners are already some of the most efficient producers of milk in the world. We need to match them in making sure our manufacturing operations and wider supply chain are as efficient as possible.”
Meanwhile, the company also announced two new targets to tackle waste. It said it will send zero solid waste to landfill by 2025 and 100 per cent of packaging will be recyclable, reusable or compostable by 2025.
Fonterra director of sustainability, Carolyn Mortland, said: “Around ninety per cent of our products sold in New Zealand already recyclable, which is great progress. But this new packaging target stretches across our global footprint, which means we are taking a good look at finding new ways to make, collect, recycle and reuse packaging.”
