Driving Sustainability: Supporting Fonterra’s Journey toward Net Zero through Innovative Transportation Solutions

Challenge

Fonterra faced limited alternative fuel options, emissions calculations uncertainty, and traceability issues while trying to eliminate emissions from its European supply chain.

Solution

C.H. Robinson provided innovative transportation solutions that captured and reported data accurately, optimized routing and truck utilization, and integrated alternative fuels.

Result

  • Reduction in EU transportation emissions
  • 100% accuracy and accountability through book and claim methodology

“With help from C.H. Robinson, we feel confident in the accuracy of our emissions reductions. Their registry system eliminates any possibility of double counting, so we know our efforts to reduce greenhouse gasses from transportation are transparent and reliable.”

- FIRST LAST
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“The independent audit of our emission calculations ensures accuracy and accountability. With C.H. Robinson, we can confidently claim the reductions in our own transportation operations.”

- FIRST LAST
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As a dairy partner to many of the world’s leading food companies, New Zealand dairy Co-op, Fonterra, is synonymous with quality and innovation. While New Zealand farmers are some of the most emissions-efficient suppliers of dairy at scale, Fonterra’s climate roadmap and voluntary climate-related disclosure outlined ambitious actions the co-op will take toward its initial 2030 targets and ultimate net zero goal by 2050. Through these goals, the co-op aims to achieve long-term sustainability for generations to come.

Impediments to eco-friendly transportation solutions in Europe

Distribution represents only 1% of Fonterra’s total value chain emissions, but Fonterra believes reducing its distribution emissions is still vitally important to achieving their goals. As such, the co-op’s action plan includes commitments with others to research and trial new low emission solutions and optimize land transport options.

However, Fonterra’s progress in Europe was impeded by the limited availability of alternative fuels, uncertainty in emission calculations, traceability issues for freight moved with alternative fuels, and concerns about assessing additional expenditures for green solutions without a comprehensive audit report.

Unraveling emissions complexity with sustainable logistics solutions

In response to Fonterra’s pressing need for sustainable solutions to reduce their carbon footprint, C.H. Robinson built a comprehensive sustainability program for the company’s European supply chain. This package included three key components:

  1. Measure and report: Using the proprietary C.H. Robinson Emissions IQ tool and Fonterra’s own transportation data, C.H. Robinson captured Fonterra’s CO2e emissions information. From there, the team created a detailed dashboard displaying emissions for each lane traveled and truck used. Then C.H. Robinson benchmarked these numbers against industry standards and proposed a data-driven optimalization plan.
  2. Reduce empty kilometers: Through further utilization of Navisphere® and Emissions IQ, C.H. Robinson applied the optimizations to customer routing and truck utilization, which helped reduce unnecessary emissions.
  3. Alternative Fuel Program: Finally, C.H. Robinson helped Fonterra switch to HVO100, a biodegradable, palm-oil free vegetable fuel, which can reduce carbon emissions by up to 90% compared to conventional diesel.

This approach ensured both flexibility and straightforward integration of sustainability efforts into Fonterra’s existing operations. Moreover, it emphasizes accuracy and accountability, as an auditor independently verifies all emission calculations.

Optimizations help Fonterra achieve Scope 3 emissions reductions

Altogether, the sustainability program helped Fonterra gain confidence in the accuracy of their emissions measurement data. “With help from C.H. Robinson, we feel confident in the accuracy of our emissions reductions,” explained FIRST LAST, title, Fonterra, “Their registry system eliminates any possibility of double counting, so we know our efforts to reduce greenhouse gasses from transportation are transparent and reliable.”

Not only has Fonterra gained confidence in the accuracy of their emissions measurement data, but this access, combined with the other utilization strategies, has helped Fonterra reduce their CO2e emissions.

Fonterra’s reduced carbon statements undergo auditing using the industry-leading book and claim methodology, facilitated by Smart Freight Center, and aligned with the GLEC framework. As a result, Fonterra can designate specific green trucks and claim the associated emission reductions within their transportation operations. “The independent audit of our emission calculations ensures accuracy and accountability. With C.H. Robinson, we can confidently claim the reductions in our own transportation operations,” shared FIRST.

Perhaps best of all, using Navisphere Insight, Fonterra is empowered to review their own primary data related to emission calculations, so all claimed reductions are accurate before being finalized, not to mention highlighting opportunities for further improvement.