Fonterra Co-operative Group Ltd

FCG:NZ NZFCGE0001S7
Key Information
HQ:
New Zealand
Market Cap:
$3.04bn
Primary Markets:
MENA, Asia



Company Information

Company Summary

Fonterra is New Zealand's biggest company and the world's largest processor of dairy products. It is a co-operative, owned and supplied by around 10,700 farmer shareholders in New Zealand. The co-operative collects around 18 billion litres of milk each season in New Zealand, 1.5 billion litres in Australia and 500 million litres in Chile. It also has access to 600 to 800 million litres in Europe, and produces safe, secure and high-quality milk from its farms in China. The Company’s brands include Anchor, Anmum, Anlene, and Chesdale, among others.
Fonterra Co-operative Group

Revenue

Total revenue:

$14.4bn

Revenue by Geography

Revenue by Protein

Revenue by Product Type

Note: This financial breakdown is based on Annual reports released in 2022, containing, in most cases, FY2021.


Disclosures

CDP ScoresLast Reviewed: 11/10/2023

CDP ClimateCDP ForestsCDP Water
YesNoYes

Science Based Target InitiativeLast Reviewed: 03/10/2023

Target classificationStatusDate
2°CTargets Set2020

Coller FAIRR Protein Producer Index

Analysis Overview

Index-Radar-2023
Greenhouse Gas Emissions Deforestation & Biodiversity* Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins

*Fonterra is not assessed on deforestation as soy represents less than 2% of its feed.

Analysis Breakdown

Risk Score

61/100
Low Risk



Greenhouse Gas Emissions

66/100

Scope 1, 2 & 3 Target
45/100
Type of Target
0/0.5
Strength of Target - SBT
2.25/4.5
Source(s): Climate Change Webpage; Fonterra - Annual Review 2022.pdf, page 4; Fonterra - Sustainability Report 2022.pdf, page 24, 48, 65, 66, 75; Fonterra Climate Change 2022.pdf, page 5, 36, 117; SBTi Webpage

Innovation on GHG Emission Reduction
38/100
Innovation to Reduce Agriculture Emissions
0.9/1
Feed Farming Innovation
0/2
Animal Farming Innovation
1/2
Source(s): Business Performance Report 2022, page 7; Evaluating and supporting farmers Webpage; Fonterra - Annual Review 2022.pdf, page 4; Fonterra - Fonterra Interim Report 2023.pdf, page 9; Fonterra - Sustainability Report 2022.pdf, page 30, 32, 33; Fonterra Climate Change 2022.pdf, page 6; Grass Fed Webpage

Quality of GHG Inventory
100/100
Quality and scope of GHG inventory Completeness
1.5/1.5
Feed & Animal Farming Emissions
2/2
Transparency of GHG Inventory
1.5/1.5
Source(s): Fonterra - Sustainability Report 2022.pdf, page 2, 66, 76, 88; Fonterra Climate Change 2022.pdf, page 3, 64, 65, 68, 69, 82, 84, 99

Emissions Performance
80/100
Overall Emission Performance
4/5
Source(s): Fonterra - Sustainability Report 2022.pdf, page 66, 67, 77; Fonterra Climate Change 2021.pdf, page 46, 49, 56; Fonterra Climate Change 2022.pdf, page 64, 68, 76

Climate-related Scenario Analysis
65/100
Climate-related Scenarios Analysis Conducted
1/1
Disclosure of Analysis Results on Material Risks
1.25/3
Disclosure of Financial Material Events & Alignment of CAPEX
1/1
Source(s): Business Performance Report 2022, page 7; Fonterra - Sustainability Report 2022.pdf, page 43; Fonterra Annual Review 2022, page 14; Fonterra Climate Change 2022.pdf, page 19, 20, 34, 35, 36, 38, 39, 102, 113; Grass Fed Webpage



Deforestation & Biodiversity

N/A/100

*Fonterra is not assessed on deforestation as soy represents less than 2% of its feed.




Water Use & Scarcity

54/100

Water Use & Scarcity in Facilities
100/100
Monitoring Water Consumption & Withdrawals
0.75/0.75
Target to Reduce Water Consumption & Withdrawals
1/1
Disclosure & Performance of Water Risks in Facilities
3.25/3.25
Source(s): Fonterra - Sustainability Report 2022.pdf, page 4, 6, 25, 26, 62, 63, 64, 65, 75; Fonterra Water Security 2022.pdf, page 3, 4, 12, 13, 14, 24, 25, 26, 30, 45, 47, 48, 51, 65, 145

Water Use & Scarcity in Feed Farming
8/100
Supplier Engagement in Water Use in Feed Farming
0.38/2.5
Disclosure of Water Risks in Feed Farming
0/2.5
Source(s): CDP Water 2022, page 12, 13, 19, 20; Fonterra Water Security 2022.pdf, page 36; Living Water Webpage

Water Use & Scarcity in Animal Farming
54/100
Supplier Engagement in Water Use in Animal Farming
1.8/3
Disclosure of Water Risks in Animal Farming
0.9/2
Source(s): Evaluating and supporting farmers Webpage; Fonterra - Annual Review 2022.pdf, page 4; Fonterra - Sustainability Report 2022.pdf, page 27, 51, 52; Fonterra Water Security 2022.pdf, page 13, 14; Sustainable catchments Webpage



Waste & Pollution

77/100

Wastewater at Facilities
92/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
1.1/1.5
Transparency on Water Pollution Risks
2/2
Performance on Wastewater Quality & Volume Discharged
1.5/1.5
Source(s): Bioenergy- Fonterra Dairy, Tirau Webpage; CDP Water 2022, page 25; Cow manure to fire up the BBQ Webapage; Fonterra - Sustainability Report 2022.pdf, page 26, 45, 63, 64, 78, 87; Fonterra Water Security 2022.pdf, page 3, 12, 26; Sustainability Report 2022, page 62

Manure Management in Animal Farming
62/100
Disclosure of Pollution Risks from Manure
0.23/1.25
Supplier Engagement in Manure Management
1.46/1.5
Innovation to Improve Nutrient Management in Animal Farming
1.39/2.25
Source(s): Evaluating and supporting farmers Webpage; Fonterra - Sustainability Report 2022.pdf, page 27; Make the difference webpage; Our Farmers Webpage; Press Release - Water Commitments Webpage; Reducing our footprint Webpage; Tiaki Farm Source Sustainable Dairying 2018



Antibiotics

50/100

Policy on Antibiotics Use
100/100
Policy on Antibiotics Use
5/5
Source(s): Caring for animals Webpage; Sustainability Report 2022, page 43

Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
0/5
Source(s):



Animal Welfare

52/100

Animal Welfare Policy
87/100
Welfare Policy
1.75/2
Key Welfare Issues
2.6/3
Source(s): Animal Wellbeing Webpage; Caring for animals Webpage; Fonterra - Sustainability Report 2022.pdf, page 42, 43, 44, 47, 48, 69

Assurance & Certification
20/100
Auditing & Assurance by an Animal Welfare Organisation
0.5/4
Public Reporting on Welfare
0.5/1
Source(s): Animal Health and Welfare Attestation 2016; Caring for animals Webpage; Fonterra - Sustainability Report 2022.pdf, page 42, 69

Performance on Key Material Risks
50/100
Performance on Key Material Welfare Risks by Protein
2.5/5
Source(s): Caring for animals Webpage; Fonterra - Sustainability Report 2022.pdf, page 43



Working Conditions

62/100

Human Rights
95/100
Strength of Policy
1/1
Due Diligence Process
3/3
Evidence of Remediation
0.75/1
Source(s): Code of Business Conduct 2022, page 29, 31; Fonterra - Modern Slavery Statement 2022.pdf, page 3, 6, 7, 11; Fonterra - Sustainability Report 2022.pdf, page 19

Fair Working Conditions
68/100
Policy for Direct Operations
1.9/3
Monitoring & Discosure
1.5/2
Source(s): Code of Business Conduct 2022, page 4, 29, 30, 31; Fonterra - Modern Slavery Statement 2022.pdf, page 4, 7, 11; Fonterra - Sustainability Report 2022.pdf, page 19, 22, 45; Fonterra Group Ethical Behaviour Policy 2017, page 1, 3; Sick Leave Guidelines 2016, page 4; Supplier Sustainability Code of Practice 2019, page 1, 2

Safety & Turnover Data
30/100
Committee representation of workers
0.25/2
Disclosure of safety and turnover data
1.24/3
Source(s): Fonterra - Sustainability Report 2022.pdf, page 6, 16, 60, 73, 75; Sustainability Report 2022, page 16

Freedom of Association
55/100
Strength of Policies
1.5/3
Disclosure of Collective Bargaining Metrics
1.25/2
Source(s): Code of Business Conduct 2022, page 14, 29; Fonterra - Modern Slavery Statement 2022.pdf, page 3; Fonterra - Sustainability Report 2022.pdf, page 19, 71; Supplier Sustainability Code of Practice 2019, page 1, 2



Food Safety

68/100

Food Safety System
55/100
Certifications
2.25/3.5
Performance
0.5/1.5
Source(s): Fonterra - Sustainability Report 2022.pdf, page 14, 15, 48; Food Safety and Quality Webpage, page 14; Food safety and quality - first class traceability for Fonterra Webpage; QR code tracking Webpage

Product Recalls & Market Bans
80/100
Product Recall Systems
2/3
Performance
2/2
Source(s): Fonterra - Sustainability Report 2022.pdf, page 13, 15



Sustainability Governance

61/100

Assessment of a Company's Sustainability Governance
61/100
Board Sustainability
1.25/2
Incentives & Policy Engagement
1.55/2.5
Innovation & Benchmarking
0.25/0.5
Source(s): B.linc website; Board Charter 2022, page 1, 2; Board of Directors Webpage; Caring for animals Webpage; Corporate Governance Statement 2021, page 10; Fonterra - Sustainability Report 2022.pdf, page 7, 12, 13, 27, 33, 37, 40, 43, 44, 53, 79, 80; Fonterra Climate Change 2022.pdf, page 11, 15, 19, 21, 40, 120, 123, 124; LinkedIn Webpage; Sustainability Report 2022, page 59; Webpage NEXT Foundation Webpage



Alternative Proteins

35/100

Diversification of Products to Alternative Protein Sources
35/100
Existing product portfolio
0.25/2.5
Investing for future growth
1.5/2.5
Source(s): Fonterra - Sustainability Report 2022.pdf, page 13; Fonterra DSM Press Release Webpage

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