Nestlé and Mars Invest $27M in Fonterra Partnership to Reduce Dairy Emissions

Nestlé and Mars have joined forces with New Zealand’s Fonterra to fund a major initiative aimed at reducing the climate footprint of dairy farming. Dairy is the largest source of Scope 3 emissions for Nestlé and the second-largest for Mars’ Snacking division, making this investment a key step toward net-zero goals.

Financial Backing and Incentives

The program will provide direct financial support to farmers:

• Mars is investing $27 million over five years to accelerate emissions reductions.
• Farmers reducing emissions by at least 30% will receive incentive payments of NZ$0.10-0.25 per kgMS.
• Fonterra will also contribute NZ$0.01-0.05 per kgMS for farms meeting emissions thresholds.
• Funding will be used for on-farm tools and technology to support emissions reductions.

Jennifer Chappell, CEO of Nestlé New Zealand, emphasized the company’s commitment:

"As we strive towards achieving net zero emissions by 2050, we are committed to reducing our Scope 3 emissions. We will continue to support farmers, in partnership with Fonterra, fostering new economic opportunities and helping them lower their greenhouse gas emissions."

Fonterra’s Sustainability Targets

Fonterra aims to cut on-farm emissions intensity by 30% by 2030 (from a 2018 baseline). The dairy cooperative sees customer partnerships as crucial for sustainability progress.

Miles Hurrell, CEO of Fonterra, stated:

“We’re growing relationships with customers who value the hard work farmers put into producing sustainable, high-quality milk, along with the Co-op’s quality of on-farm data and ongoing commitment to improvement.”

Nestlé and Mars’ Climate Goals

• Nestlé: 20% emissions reduction by 2025, 50% by 2030 (from a 2018 baseline).
• Mars: 16% reduction since 2015, targeting 50% by 2030.

Amanda Davies, Chief R&D, Procurement, and Sustainability Officer at Mars Snacking, highlighted the importance of financial support for farmers:

"That’s why we’re working with partners like Fonterra to help remove this barrier – providing cash, tools, and technology to support farmers in making meaningful, long-term changes."

With dairy playing a major role in global emissions, this initiative represents a critical step toward making the industry more sustainable.