Corporate Carbon Footprint Arla Foods amba

Global warming and climate change are the foremost environmental challenges facing the world today. They will only be tackled effectively if actors at all levels in society including governments, businesses, communities and individuals take responsibility for, and attempt to minimise, their greenhouse gas emissions. Arla Foods is a market-leading producer of dairy products and climate change may have severe effects on its business at all levels, for example: • Availability of raw materials – farm productivity may be affected by changing, and less predictable, climatic conditions and through the introduction of new pest species. This may also affect the availability and cost of fodder crops for dairy herds. • Increased operating costs – fossil fuel use may be taxed more heavily with implications on the cost of manufacturing • Changing consumer behaviour – the carbon intensity of products may come to affect consumers’ purchasing decisions Recognising the potentially important impact of climate change on its business, as well as its wider social responsibility to effectively manage its GHG emissions, Arla Foods has commissioned PE North West Europe to carry out a corporate carbon footprint analysis of its operations. This involves accounting for, and reporting on, the GHG emissions from all those activities for which the company is responsible. Arla Foods will use this information to better understand the GHG emission “hot spots” in its operations and supply chain, and identify where the greatest capacity exists for reductions in GHG emissions. This will enable it to benchmark its activities and to develop an effective corporate carbon mitigation strategy and incorporate this in its existing “Closer to Nature” sustainability strategy. This work will also help Arla Foods to present itself as a sustainable and environmentally aware company to its customers, current and future shareholders, employees, suppliers and other stakeholders. Scope Arla Foods’ global operations have been assessed, with the exception of Rynkeby and Cocio as these two businesses are not considered part of the Arla Foods brand or of the overall “Closer to Nature” strategy. The business activities covered in this assessment include: • Farm processes • Arla Foods’ processing operations • Transport • Packaging ii Activities that have not been included in the scope of the current study include: • Business travel • Non-processing operations (e.g. administrative offices) • Advertising/marketing activities A three year period from 2005 to 2007 has been assessed and results are reported separately for each year. Arla Foods will use the 2005 data as a benchmark against which to measure future performance.
Keyword: ARLA,Corporate carbon footprint