Arla Foods
Arla Foods is a farmer-owned dairy cooperative operating in seven European countries, committed to sustainability with goals like reducing CO2e emissions and achieving 100% recyclable packaging by 2025.
Overview of Arla Foods
Arla Foods is a farmer-owned dairy cooperative operating in seven European countries. It is dedicated to sustainable farming and has set ambitious targets for reducing its environmental impact. The company is known for its commitment to reducing CO2e emissions, improving packaging recyclability, and promoting renewable energy use. Arla Foods includes brands such as Lurpak, Castello, and Puck.
Sustainability Goals
Arla Foods aims to become carbon net zero by 2050, with intermediate goals set for 2030. These targets include reducing on-farm CO2e emissions per kilo of milk by 30%, eliminating virgin fossil-based plastic from packaging, and reducing food waste by 50%. The cooperative has earmarked up to 500 million euros annually to reward farmers for their climate activities, focusing on sustainable farming practices.
Sustainability Incentive Model
Arla Foods has implemented a Sustainability Incentive model to reward its farmers for engaging in sustainable practices. The model includes 19 different levers focusing on activities such as feed efficiency, protein efficiency, and the use of renewable electricity. Farmers can earn up to 3 eurocents per kilo of milk through this model, incentivizing them to adopt eco-friendly measures.
Climate Data and Environmental Impact
Arla Foods has developed the world's largest externally validated climate data sets from dairy farms, which help measure and manage the environmental impact of its operations. From 2015 to 2020, the cooperative achieved a 24% reduction in CO2 emissions from operations. Additionally, Arla Foods has committed to using 100% renewable electricity in its European production by 2025 and aims to convert its logistics fleet to fossil-free energy by 2030.
Future26 Strategy
Future26 is Arla Foods' strategic plan for guiding its development and future growth. This comprehensive strategy includes sustainability targets such as reducing absolute scope 1 and 2 greenhouse gas emissions by 63% by 2030 from a 2015 base year. Future26 also emphasizes improving the value added to each kilo of milk through Arla's performance price metric, reflecting the company's commitment to efficiency and sustainability.