How Will Climate Change Impact New Zealand Businesses

Fonterra Co-operative New Zealand

How will Climate Change Impact New Zealand businesses?

1. Introduction

Fonterra Co-operative group is a New Zealand owned multinational dairy co-operative owned by approximately ten thousand local New Zealand farmers. Fonterra provides almost 30% of the world's dairy export. With revenue of over 16 billion dollars, Fonterra is New Zealand's largest company. Fonterra has made itself very environmentally conscious where possible, implementing schemes since 2003 when it first started its energy efficiency program at its many manufacturing sites throughout the country. Fonterra actively monitors carbon dioxide emissions at its manufacturing sites and uses this to simulate an emissions trading scheme between sites. It is just one of the ways Fonterra is preparing for an emissions trading environment. Fonterra is also teaching and raising awareness of its employees about energy use and the associated carbon dioxide emission from its sites. Since the beginning of this program Fonterra has cut its energy use by 15% per unit of production giving them an annual reduction of 280,000 tonnes of carbon dioxide per year and energy savings equivalent to the annual electricity use of 90,000 homes. Furthermore, Fonterra has made an agreement with Toll NZ to make rail the primary method of transportation in the north island regions which has contributed to a reduction of 9000 tonnes of transport related emissions (Fonterra Co-operative Group, 2010). I chose this topic because I worked for four years as a summer employee at a Fonterra manufacturing plant in the Waikato, I have strong family ties to Fonterra, but primarily as Fonterra has been a huge part of my family I knew of the steps they are taking to combat climate change and minimize their carbon footprint and find it exciting that they are leading the way for the rest of New Zealand to follow.

2. Scope of information

The scope and quality of the information on which I could find relating to climate change within Fonterra and its subsidiaries was overwhelming and very available for use. Firstly, and most obviously, the company website provided a comprehensive overview with links showing how very conscious they are in both planning and putting their plans to action. However, as I searched more I found the one large document which left nothing unsaid surrounding their position to climate change. Not only the manufacturing aspects but also delved into climate change from the angle of the farmers and what it meant to them at the farm level and how they could do their bit to help the cause. Also described was their approach in terms of international standards and agreements that they have following Kyoto. The information also provided a very in depth section on how emission trading schemes work so before beginning