Climate Impact & Natural Resources
Climate change and the reliance on natural resources is driving significant structural transformation across the dairy sector.
The sector will need to take concerted action to manage the risks and opportunities associated with a move towards a lower carbon footprint. The risks include regulatory initiatives, such as carbon pricing, market risks and changes in consumer preferences.
Our commitments
The Company is committed to investing in tangible climate and nature related programmes that will create a positive impact on the planet.
The Company’s GHG emission reduction programme covers Scope 1, 2 and 3 emissions. While much of the Scope 1 and 2 emissions, primarily from processing activities, are within the Company’s control to reduce, they account for approximately 5% of total emissions. By contrast, Scope 3 emissions account for approximately 95% of emissions. The largest contributors to Scope 3 emissions are on farm emissions (including methane), third party processing emissions (including use of coal) and emissions from transport and logistics (including sea freight and ocean freight).
Climate impact
- Net zero GHG emissions for scope 1 & 2 by 2030
- Net zero GHG emissions for scope 3 by 2040
Other natural resources
- Reviewing water, waste and biodiversity targets as part of work commenced on nature risk assessment
Our impact
Scope 1: GHG emissions from direct operations
- Committed to, and progressing, the installation of a new high pressure electric boiler at MVM which received co-investment from the New Zealand Government Investment in Decarbonising Industry (GIDI) Fund
- Commissioned and completed a study for the Company’s primary Australian milk processing facility at Smeaton Grange, New South Wales, with key projects progressed to a detailed feasibility study for GHG emission reduction opportunities
Scope 2: Electricity utilised in direct operations
- ‘Green energy’ or equivalent electricity supply contracts established at all sites where available, which included converting electricity supply contracts for offices in Sydney and Melbourne and at the Smeaton Grange processing site in New South Wales, while continuing contracts already in place for the Auckland office and USA office (partial green energy supply)
Scope 3: Indirect GHG emissions
- Following contribution by a2MC to Synlait boiler conversion, progress made by Synlait towards that installation
- Further exploration of on-farm commercial trial utilising Sea Forest’s SeaFeed™ product – a methane inhibitor from asparagopsis seaweed
Building a more sustainable business at Mataura Valley Milk (MVM)
The Company acquired a 75% interest in MVM, a dairy nutritionals facility located in Southland, New Zealand
during the year.
A significant amount of work was undertaken to integrate MVM into the business including several activities to build upon MVM’s sustainability credentials:
— Committed to replacing the boiler at MVM from a lignite boiler to a high-pressure electrode boiler through the full electrification of the site and received co-investment from the New Zealand GIDI Fund
— Enabled MVM’s participation in the Farm Sustainability Fund, with grants available to eligible suppliers of raw A1 protein free milk to MVM
— Exploration of a commercial trial using methane inhibitor asparagopsis seaweed
