Danone’s New Zealand Milk Formula Achieves Carbon Neutral Certification[1]

• Karicare is the first milk formula product in Australia and New Zealand to achieve independent carbon neutral certification
• The first certified carbon neutral products will hit major supermarket chains in Australia and New Zealand before the end of the year

Danone today announced that its iconic New Zealand milk formula, Karicare, has achieved carbon neutral certification for its Karicare Gold Plus+ Organic and Karicare Gold Plus+ A2 Protein Milk product ranges. Certification is provided by the Carbon Trust[2], an independent certifying body, against the globally recognised PAS 2060 standard for carbon neutrality. These two products in the range are the first to be certified as part of the company’s ambition for the entire Karicare portfolio to be carbon neutral by 2030.

The certification follows a rigorous product lifecycle evaluation covering sourcing, production, and distribution. Danone has also recently completed a range of actions at its spray drying facility in Balclutha on New Zealand’s South Island, where the base powder for products is produced. Part of the company’s global RE-Fuel energy excellence program to transition to resilient and renewable sources of energy, these actions include switching to 100% renewable electricity and investing in a new biomass boiler.

“At Danone, our core belief is that the health of the planet and the health of people are interconnected. As a company exclusively focused on healthy food categories, it is imperative that we take real action to protect our environment and the Earth’s ability to sustain a growing global population,” said Rodrigo Lima, Managing Director, Danone Oceania.

“Importantly, we know that our customers and consumers are increasingly expecting us to take these kinds of meaningful actions. With two of our Danone Karicare product ranges now certified carbon neutral, we can provide consumers with a more sustainable choice in the milk formula category that has not been available before today in Australia and New Zealand.”

Danone’s Karicare carbon neutral journey has been greatly aided by its production in New Zealand, a country well-known for its efforts to reduce greenhouse gas emissions. New Zealand dairying is also regarded as having the lowest carbon footprint of any major dairying nation.[3]

In addition to Danone’s operational decarbonisation agenda, the company is also investing in regenerative agriculture research in New Zealand with partners Synlait and AgResearch. The five-year study commenced in 2021 and will compare soil health on farms deploying a range of regenerative agriculture practices with farms using conventional practices. All farms will have their two-paddock comparison of conventional versus regenerative practices. This will have a focus on diverse pastures and reduced nitrogen fertiliser applications with the aim of applying one-third of the regional averages (synthetic nitrogen fertilizer per ha) by year three of the project.[4]

“Regenerative agriculture is an important topic for New Zealand,” commented Danone’s New Zealand Operations Director, Steve Donnelly. “Not only is there potential for the soil to be more productive and provide better economic returns to farmers, but for its ability to sequester carbon to improve. If we can improve our soil’s ability to absorb carbon by only a few percentage points, the positive environmental impact for New Zealand would be tremendous.”

Packaging circularity

Danone’s ambition is to make packaging circular across all its brands.[5] This means eliminating unnecessary packaging, designing for recycling, reusing or composting and taking steps to keep the material produced in the economy. A circular approach to packaging reduces carbon emissions due to greater reuse and recycling, leading to less reliance on virgin materials.[6]

Karicare’s packaging across the total portfolio is currently 98% fully recyclable and is expected to be 100% recyclable, reusable or compostable by 2023. To achieve this ambition, the company has a pipeline of recyclability projects to introduce within this time frame, including ARL logo implementation on pack across the full range in 2023.

Carbon neutral certification

Danone’s approach to carbon neutrality starts with its emissions reduction agenda. As part of Karicare’s certification, the company must demonstrate year-on-year emissions reductions to maintain the certification, whilst compensating for any remaining emissions through offsets.

Pathway to net-zero emissions

As part of its ambition to achieve net zero emissions across its value chain by 2050, Danone has been working to dramatically reduce emissions. Since 2015, operational emissions have been reduced by 48.3% and the total emission intensity of Danone products have reduced by 27.1%.

“Danone’s approach to carbon neutrality is to focus on reductions first and foremost,” continued Lima. “We continuously act together with our partners to reduce our emissions in our supply chains, operations and packaging, then take responsibility for compensating remaining emissions.”

Danone is one of few companies worldwide to be awarded a AAA score (past three years) by CDP for its leadership in the fight against climate change, deforestation and water resource preservation.[7]

Karicare’s certified carbon neutral Gold Plus+ Organic and Gold Plus+ A2 Protein Milk product ranges are sold in supermarkets across Australia and New Zealand.

References:

1). Karicare Gold Plus+ Organic and Karicare Gold Plus+ A2 Protein Milk product ranges

2). For more information on the Carbon Trust: www.carbontrust.com

3). Mapping the carbon footprint of milk for dairy cows report: https://www.dairynz.co.nz/media/5794083/mapping-the-carbon-footprint-of-milk-for-dairy-cows-report-updated.pdf

4). Advancing soil health on-farm and understanding impacts on dairy farm economic and environmental performance: https://www.mpi.govt.nz/funding-rural-support/sustainable-food-fibre-futures/current-sff-futures-projects/sff-futures-projects-regenerative-farming-practices/

5). Danone: Circular economy of packaging: https://www.danone.com/impact/planet/packaging-positive-circular-economy.html

6). Ellen MacArthur Foundation, Completing the Picture: How the Circular Economy Tackles Climate Change (2019) www.ellenmacarthurfoundation.org/publications

7). Danone Recognised For The Third Year In A Row As Global Environmental Leader With Triple ‘A’ Score Given By CDP: https://www.danone.com/media/press-releases-list/Danone-CDP-Triple-A.html

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