Arla Foods Annual Report 2020
Management Review
Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
Environmental figures
1.1 GREENHOUSE GAS EMISSIONS (CO2E)
Total CO₂e emissions impacted by milk and whey
To follow up on Arla's contribution to climate change
and the progress towards our emission targets, the
total greenhouse gas emissions (expressed as CO2
equivalents, CO₂e) are calculated annually. CO₂e is
categorised into three scopes according to the
methodology of the Greenhouse Gas Protocol.
The three scopes cover nearly all Arla's activities.
Total CO₂e emissions increased to 19,230 million kilos
compared to 19,105 million kilos last year. The increase
can be explained by higher milk intake and increased
purchases of external whey in Arla Foods Ingredients,
while a change in methodology (market-based
accounting) and therefore accounting for the purchase
of renewable energy lowered the emissions. Read more
on page 124. In line with Arla's Science Based Target,
the group does not account for carbon credits.
Since 2015, scope 1 and scope 2 CO₂e emissions
decreased by 24 per cent, and we are well on course
to reach our 2030 Science Based Target of reducing
emissions by 30 per cent.
Scope 3 emissions per kilo milk and whey amounted to
1.21 in 2020, down by 7 per cent since 2015 due to
activities on Arla farms. According to our Science Based
Target, scope 3 emissions per kilo of milk and whey
should be reduced by 30 per cent by 2030. In 2020,
emissions from milk only amounted to 1.17 kilo CO₂e
per kilo of milk while the impact of owner milk specifically
amounted to 1.15 kilo CO₂e per kilo of owner milk.
CO₂e emissions 2020
(Mkg)
19,230
MKG
CO₂e emissions 2019
(Mkg)
19,105
MKG
Scope 3 emissions from farms 86%
Scope 3 emissions from purchased goods and services 10%
■CO₂e scope 1: 3%
Scope 3 emissions from farms 86%
Scope 3 emissions from purchased goods and services 10%
CO₂e scope 1:2%
CO₂e scope 2: 2%
CO₂e scope 2: 1%
ESG Table 1.1 Greenhouse gas emissions*
(mkg)
2020
2019
2018
2017
2016
CO₂e scope 1
Operations
Transport
Total CO₂e scope 1
381
366
400
408
388
93
97
90
84
86
474
463
490
492
474
וווי
CO₂e scope 2
Total CO₂e scope 2 - market-based**
277
399
456
438
466
Scope 2-location-based
237
274
263
313
334
CO₂e scope 3
Emissions from farms:
Emissions related to milk production and
operations on farm**
***
16,499
16,380
16,406
16,666
16,603
Emissions from purchased goods and services:
Whey
1,133
1,032
1,162
1,002
1,117
Packaging
396
384
383
384
433
Transport
306
312
326
345
359
Operations
145
135
134
131
132
Total CO₂e scope 3
18,479
18,243 18,411 18,528
Total CO2e
Total CO2e-location-based
19,230 19,105 19,357 19,458
19,176 18,977 19,156 19,337
18,644
19,584
19,456
123 ARLA FOODS ANNUAL REPORT 2020
Accounting policies
Greenhouse gas emissions are measured in CO₂e and
are categorised into three scopes.
Calculating CO₂ equivalents
Greenhouse gases are gases that contribute to the
warming of the climate by absorbing infrared radiation.
Besides the widely known carbon dioxide (CO2), there
are two other major greenhouse gases associated with
dairy production: nitrous oxide (N₂O) and methane
(CH4). In order to calculate the total greenhouse gas
emissions (the carbon footprint) for Arla, different
greenhouse gas emissions are converted into carbon
dioxide equivalents (CO₂e). The conversion of different
gases reflects their global warming potential.
The potency of the different gases is taken into
consideration according to the following calculations
(based on the IPCC**** Fifth Assessment Report,
Climate Change 2013):
1 kg of carbon dioxide (CO2)= 1 kg of CO₂e
1 kg of methane (CH4) = 28 kg of CO₂e
1 kg of nitrous oxide (N2O) = 265 kg of CO₂e
The majority of Arla's emissions are methane
(e.g. produced by cows digesting the feed) and nitrous
oxide (e.g. from fertilizer and manure on farms, or
manure storage).
* Following our restatement policy and Science Based Targets, historical numbers are restated every five years, read more in note 3.5.
**In 2020, Arla switched to market-based reporting, read more on page 124.
*** Scope 3 emissions from farm subject to limited assurance in 2020.
**** The IPCC (Intergovernmental Panel on Climate Change) is the United Nations' body for assessing the science related to climate change.View entire presentation