Fonterra Withdraws Anchor's Carbonzero Certification in Shift Away from Carbon Credits

Fonterra's New Environmental Approach

Fonterra has made a significant shift in its environmental strategy by discontinuing the use of the Toitū carbonzero certification for its Anchor specialty milk range. The decision marks a move away from utilizing carbon credits to compensate for emissions generated during milk production.

Anchor's Specialty Range

The affected products in the Anchor range include Anchor Organic, Anchor Protein+, Anchor Calci+, Anchor Zero Lacto, and Anchor Silver Top. Previously, these products were part of a carbon offsetting program involving projects such as native forest regeneration in Kaikoura, New Zealand, a wind farm in New Caledonia, and a solar energy installation in India.

Strategic Reasons Behind the Move

Renée Milkop-Kerr, Fonterra Oceania's Director of Marketing & Innovation, explained that the decision was driven by evolving global regulations on green claims and the complexities around consumer understanding of carbon credits. The change aims to better balance sustainable options with effective consumer communication.

Consumer Perception and Market Response

The rebranding of the Simply Milk range, which now emphasizes donations to social supermarkets instead of carbon offsets, reflects changing consumer priorities. However, the move has raised discussions about the future of green claims on dairy products.

Environmental Certifications and Future Plans

Fonterra initially launched its carbonzero milk in November 2020, marking a pioneering step in New Zealand’s dairy sector for sustainability-conscious offerings. Discussions with Toitū Envirocare indicate that continuous improvement is a requirement for maintaining certifications, signaling that the dairy giant is carefully reconsidering how best to achieve its environmental goals.