Dairy giant Arla is set to more than double its CO2 emissions reduction target as it looks to play its part in meeting the Science Based Targets initiative (SBTi) aim of keeping global warming to below 1.5°C.
The farmer-owned dairy group plans to convert to fossil-free trucks, green electricity, and low-energy solutions to achieve this goal.
Arla Sustainability Actions
After having implemented climate checks on almost 8,000 Arla farms, which helped to accelerate decarbonisation at farm level, Arla is now increasing its measures in production and logistics to further combat climate change.
With the new aim to cut 63% of the greenhouse gas emissions from production, logistics, and energy usage by 2030, from a 2015 base, the dairy group is doubling its previous 30% reduction goal.
Between 2015 and 2020, Arla reduced its emissions from operations by 24% and the next steps include a transition to fossil-free fuels for the full fleet of milk tankers and distribution trucks and a shift to renewable electricity and low-energy solutions across the company’s production sites and offices.
Future 26 Corporate Strategy
The company also plans to invest in sustainability actions across its value chain as part of its new corporate strategy Future26, preparing to increase its total investments by 40% to more than €4 billion.
On top of the company’s investments, Arla's farmer owners will be required to make significant investments individually to reduce greenhouse gas emissions at farm level.
“Our owners stand strong on their commitment to climate action," said Peder Tuborgh, CEO at Arla Foods.
"The investments and change of practices that this requires from them are significant, which is why we have ambitious plans for how to turn their actions into value for our customers and consumers and why we will continue to share our data and knowledge with governments to show where their funding for the agricultural sector can have the greatest impact."
Science Based Targets Initiative
The new 2030 target has been approved by the SBTi as being consistent with reductions required in scopes 1 and 2 to keep warming to 1.5°C, the most ambitious goal of the Paris Agreement.
Until now, Arla is one of only 61 food and beverage processors globally and one of the first farmer-owned dairy cooperatives in the world to have a 1.5°C target approved by the SBTi.
Whilst the SBTi has classified Arla’s new 63% target for scopes 1 and 2 as consistent with a 1.5°C trajectory, the existing 30% target for scope 3, covering among other things the Arla farms, continues to meet the SBTi’s criteria for ambitious value chain goals in line with current best practice.
The SBTi is expected to launch a new sector guidance in 2022 for Forest, Land, and Agriculture with more detailed requirements for setting science-based targets than previously available for companies in land-intensive sectors.