Nestlé and Mars Plan to Offer Aid to Farmers to minimize Emissions from the Dairy Supply Chain
Nestlé and Mars, food, beverage, and snack corporations, announced new partnerships with Fonterra, a dairy cooperative based in New Zealand. Under these agreements, the firms will provide financial incentives to farmers in order to cut emissions and lessen the climate impact of their dairy supply chains.
By 2050, Nestlé and Mars both want to have zero net emissions throughout their value chains. Dairy products are the second-biggest contributor to Mars’ Snacking company’s carbon footprint and Nestlé’s greatest single source of Scope 3 greenhouse gas emissions.
The new agreements are a component of Fonterra’s recently announced new financial efforts, which are intended to strengthen the cooperative and assist farmers in lowering emissions on their farms. The money from the deals with Nestlé and Mars will be divided between giving farmers who achieve the lowest emissions footprints in the Fonterra co-op emissions incentive payments and on-farm equipment and technologies aimed at further increasing emissions efficiency.
According to Mars, its new deal with Fonterra will reduce its Scope 3 emissions from dairy by more than 150,000 metric tons by 2030 and will involve expenditures totaling $27 million spread over five years. The deal is a component of Mars’ Moo’ving Dairy Forward campaign, which was started last year to address the dairy supply chain’s carbon footprint.
In 2023, Fonterra unveiled its Climate Roadmap, which set a goal to cut on-farm carbon intensity by 30 per cent by 2030 compared to a baseline set in 2018. Additionally, the cooperative has established a goal to become net zero by 2050.
Nestlé and Mars, food, beverage, and snack
