Measuring carbon removals with science

As part of our action plan to deliver our 2030 climate targets, Fonterra has recently collaborated with Prism Earth Limited, a company established by Silver Fern Farms and Lynker Analytics, to help farmers understand the carbon sequestration potential of their farms. 

Carbon sequestration is the process of capturing and storing carbon dioxide (CO₂) from the atmosphere to prevent it from contributing to global warming. This process can occur naturally, as plants and soil can absorb CO₂, or it can be enhanced or engineered by humans through various technologies and land management practices¹.

Prism’s technology combines satellite imagery, aerial photography, and LiDAR (a remote sensing method using a pulsed laser²) to map, classify, and age vegetation on-farm to help us understand the carbon being sequestered by that vegetation. This technology is accompanied by appropriate checks and verification to ensure it is auditable and credible against international best practice. Fonterra will then confirm this data with farmers and include the carbon removals value in their farm footprint.  
 

Our on-farm 2030 target

Fonterra is targeting a reduction in on-farm emissions by 30% per tonne of Fat and Protein Corrected Milk (FPCM)* between FY18 and FY30. Several factors contribute to on-farm emissions, including:

1. Emissions from on-farm activities: including feed, fertiliser, and the herd. 
2. Land-use changes: emissions from deforestation or converting scrub to pasture. When areas of trees or scrub are deforested and converted to pasture, the carbon impact of that conversion is accounted for over a 20-year period (also known as the responsibility window).
3. Peat soil emissions: higher emissions occur when peat soils are drained. When the water table is lowered, drained peat soils emit greenhouse gases due to oxidation.
    

We expect that approximately 8% of the on-farm emissions intensity reduction will come from carbon removals, and Fonterra is utilising technology to help determine this.
 

What are carbon removals?

Carbon removals refer to the carbon stored by vegetation on farms, which effectively removes carbon dioxide from the atmosphere. Farming activities – such as managing cows, using fertiliser, and importing feed – produce emissions; however, the vegetation on the farm can store some of these emissions generated on the land. Since trees absorb carbon dioxide from the air as they grow, these stored emissions are known as carbon removals. The amount of carbon stored (or sequestered) varies depending on the area, it’s  type of vegetation, its age, and its stage of growth.

The Fonterra Climate Roadmap outlines our action plan for how we will deliver emissions reductions across farming, manufacturing, and supply chain operations. We’re making good progress, but there’s more work to do. Accounting for on-farm carbon removals is one way we can help reduce the carbon footprint of our dairy products. We’re continuing to drive emissions reductions across our value chain and bring our sustainability progress through to every NZMP product you purchase.

Our GHG emissions reporting methods follow the GHG Protocol and the International Dairy Federation’s lifecycle analysis approach. These organisations provide best practice guidance and standards when it comes to calculating and reporting emissions. We recognise that GHG accounting and methodologies are frequently being updated, and we are committed to using the best available science and data. We are transparent around our approach and work with third parties to ensure our methods are inclusive and robust.

*The target includes FLAG emissions and removals.