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World 05.01.2024

Arla Takes the Lead in Sustainable Dairy with New Customer Programme

Source: The DairyNews
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Arla Foods, one of the world's largest dairy companies owned by over 8,400 farmers across Europe, is spearheading a new customer programme focused on advancing sustainability efforts on farms and helping customers achieve their Scope 3 reduction targets. The initiative aligns with Arla's ambition to lead in more climate-efficient dairy production.
Arla Takes the Lead in Sustainable Dairy with New Customer Programme
The customer programme, initially launched in the UK, will subsequently roll out across Arla's core European markets. The move comes in response to an increasing number of Arla's customers in the retail and foodservice sectors obtaining climate ambition approval from The Science Based Targets Initiative, facing scrutiny over reducing their Scope 3 emissions.

Scope 3 emissions are indirect emissions an organization is responsible for across the entire value chain, including purchasing products from suppliers and the use of products by customers. Arla's customer programme aims to combine data from its Climate Check programme and Sustainability Incentive Model to reward and motivate farmers engaged in effective on-farm sustainability actions. The cooperative has allocated up to €500 million annually until 2030 for this initiative.

The programme allows customers to invest in on-farm sustainability efforts, directly contributing to reducing Arla's emissions (their customers' Scope 3). Arla set an ambitious target to reduce Scope 3 emissions by 30% per kilogram of milk by 2030, marking a significant commitment to sustainable dairy production.

Customers participating in the programme will see additional finances directed toward on-farm emission reduction efforts. They will also engage in projects led by Arla, involving aligned farmers in research and trials of innovations for areas such as biodiversity and herd genetics.

Peter Giørtz-Carlsen, COO and Member of the Executive Board at Arla, highlighted the company's commitment to driving down Scope 3 emissions and becoming a strategic partner for customers on their sustainability journey. The initiative aims to benefit the planet, bring value to customers, and ensure that dairy's nutritional benefits to human diets are not jeopardized by its environmental impact.

The programme offers customers access to more accurate on-farm data with CO2 footprint reports and claimable CO2e reductions for ESG reporting. Arla's move is seen as a commendable example of sustainable practices in the dairy industry, demonstrating the collective responsibility of all value chain stakeholders in reducing emissions.
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