Synlait has made the commitment to reduce our emissions contribution to a level which keeps temperature rise below 1.5°C versus pre-industrial levels. We will fulfil these ambitions by continuing to invest in the people, strategies, and technologies on-farm and in-factory which lead to better climate outcomes.
Climate change is the world’s greatest threat, and livestock, including the cows used for dairy farming, is a significant contributor to global greenhouse gas (GHG) emissions.
Recognising this, we have set greenhouse gas emissions reduction targets that are approved by the Science Based Targets initiative (SBTi), and align with the New Zealand Government’s commitment to keep climate warming to 1.5°C.
Meeting these targets will reduce our absolute scope 1 and 2 greenhouse gas emissions by 45% between FY20 and FY28, and scope 3 GHG emissions from on-farm purchased goods and services by 30% per kgMS between FY20 and FY28.
Our roadmap to meet these commitments is clear. Off farm, it includes boiler conversions from coal to biomass, use of renewable electricity and energy efficiency projects. On farm, it includes promoting a range of GHG mitigation measures, exploring regenerative agriculture and trialing new technologies.
For our customers, the commitments we have made through SBTi provide reassurance that our emissions reduction approach is sector leading.
A 2021 analysis of 55% of global milk production (including all major milk producing countries) found the average New Zealand dairy farm’s GHG footprint to be 46% less than the average of 18 countries studied.[1]
From that low base, we are taking further steps to reduce on-farm GHG levels.
We’re differentiating ourselves from global competitors by financially incentivising farmer suppliers to lower their GHG emissions. And we’re continually working with them to help reduce emissions.
Using a complex modelling tool, each farmer supplier has access to a detailed GHG profile, including a breakdown of emissions by source and type of greenhouse gas. Additionally, through our on-farm sustainability programme, farmers develop detailed GHG management plans that provide evidence of reduction measures being implemented.
The impact of these measures determines the amount of incentive payments awarded.
Purchasing low GHG milk products from Synlait will help our customers reduce their scope 3 upstream GHG emissions, and in doing so, move them closer to achieving their climate targets and commitments.
[1] https://www.dairyglobal.net/health-and-nutrition/nutrition/new-zealand-farmers-have-lowest-carbon-footprint/
New Zealand is one of the world’s lowest greenhouse gas (GHG) milk producers, and despite this, Synlait has ambitious plans to further reduce on-farm GHG emissions.
We can meet our emission reduction targets faster through mutually beneficial collaborations with customers on their own net-zero pathways.
By partnering with customers, we can work with our farmers to identify technologies and measures which could be utilised on-farm to reduce GHG emissions.
In exchange for co-funding the GHG reduction initiatives, Synlait can allocate the GHG emissions factors from the participating farms to the customer for their GHG reporting.
On-farm GHG mitigations as well as individual farm emissions are audited by a third party each year, providing our customers with assurance that they can claim the GHG reductions in their own reporting.
Synlait has set greenhouse gas emissions reduction targets that are approved by the Science Based Targets initiative (SBTi). Meeting these targets will reduce our absolute scope 1 and scope 2 greenhouse gas (GHG) emissions by 45% between FY20 and FY28.
To achieve this, we have agreed on an ambitious decarbonisation roadmap which includes phasing out coal (we have 3 coal boilers at the Synlait Dunsandel site).
Key projects on our journey to becoming coal free include:
These big, decarbonising steps are climate critical. They also present opportunities for customers looking for coal-free nutritional milk products, to meet growing consumer expectations around low-carbon brands.
93% of Chinese consumers think brands should show their impact on the environment on food/drink labels (e.g., carbon footprint)[1]. Brands that can quantify the benefits their products make to limiting carbon footprint will be the ones that consumers gravitate towards to feel good about their individual food choices[2].
Synlait’s certified carbon neutral milk will help facilitate customers rolling out branded product related carbon claims.
New Zealand is one of the lowest greenhouse gas (GHG) milk producers in the world (link to the Low GHG milk VP) and Synlait has ambitious targets and plans to further reduce on-farm GHG emissions.
To address residual on-farm emissions, we can partner with customers and purchase high quality carbon credits so that they can claim that the milk component of their products is certified carbon neutral. We can source credits from New Zealand and international sources which have been third party certified in accordance with ISO 14064-1 or PAS2050.
Note: this value proposition only applies to the raw milk component of our products to the farm gate, however we can explore finished product carbon neutral certification should the customer require.
[1] Mintel Food & Drink – Global, 2022 Report.
[2] Mintel Insights: Prepare dairy for carbon-aware consumers. 26 April 2022.
STANDARD Standard value propositions are those that already exist – things we already do - and that may be of interest to our customers, for use in their corporate or brand communications.
TAILORED Tailored value propositions are those that we can co-develop with our customers. This could be in the form of tailored new product development or collaborative projects on farm or on site.
