As part of Fonterra's commitment to sustainability and implementation of its strategy, the Co-operative has released its Sustainable Finance Framework (Framework). This Framework aligns Fonterra’s funding strategy with its sustainability ambitions and reflects the evolving preferences of lenders and debt investors in this area.
Fonterra’s Framework outlines how the Co-operative intends to issue and manage any sustainable debt, which could include Green Bonds and Sustainability-Linked Bonds and Loans. The Framework has been developed with Joint Sustainability Co-ordinators HSBC and Westpac NZ and has been independently verified by ISS Corporate Solutions confirming alignment with globally agreed sustainable finance principles.
“This new Framework is a step on our sustainable financing journey – aligning with our Co-operative's broader sustainability ambitions,” said Simon Till, Fonterra Director Capital Markets.
“Over the next decade we intend to significantly increase our investment in sustainability-related activities and assets throughout our supply chain to both mitigate environmental risks and continue to differentiate our New Zealand milk.”
Fonterra Chief Operating Officer Fraser Whineray added that the Co-operative is making solid progress towards its sustainability targets.
Source: Fonterra
“In our sixth year of independently assured reporting, we are pleased with progress. Fonterra’s GHG emissions (Scope 1&2) are 11.2 percent lower than FY18 and well on their way to our goal of 30 percent by 2030. With our supplier owners, we are ahead of target for delivery of Farm Environment Plans (FEP), with 71 percent of farmers now having plans, against a target of 67 percent for FY22 and on track for 100 percent by 2025.”
This year Fonterra has also seen close to double the number of farmers achieving the Co-operative Difference to last year, with more than 70 percent achieving it at some level. The Co-operative is also working with partners and other stakeholders on a wide range of potential solutions to help reduce biological emissions.
Fonterra, along with other Agribusiness leaders, recently entered into a joint venture with the Government, as part of the new Centre for Climate Action on Agricultural Emissions. Under the MOU, industry partners have already made an indicative commitment up to around $35 million. This could see around $172 million invested over the next four years to develop and commercialise practical tools and technologies for farmers.
“Over the next four years we’re looking to scale up an investment in methane reduction of around $50 million through this Joint Venture,” continued Whineray
“We know we can, with the Government, achieve more by partnering with others and are looking forward to working together to find solutions that will benefit our farmer owners along with the rest of New Zealand.”
For further information please see the Fonterra Sustainability Report
