Arla Foods Consolidated Annual Report 2021

122 Arla Foods Consolidated Annual Report 2021 / Environmental, social and governance (ESG) data / Letter from Chief Agriculture Sustainability and Communication officer Contents COMMITTED TO TRANSPARENT ACTION Updated in 2021 Being science-based and data driven is fundamental to our approach, as we believe that to lower our carbon footprint we first have to be sure we measure it correctly. I am proud to say that we are the first large dairy company to receive reasonable assurance on our complete ESG data, including scope 3 emissions, presented in this report. Taking concrete action and being innovative forerunners is another key element of our value creation and sustainability. In 2021, we established 24 pilot farms to explore regenerative dairy farming practices and create data-driven proof points of their impact on nature and climate. In Sweden and the UK, we opened innovation farms that will serve as hubs for cutting-edge trials in collaboration with farmers, researchers, customers and industry stakeholders. Our sustainability commitments and targets cover our whole value chain from the farm up, and are a key part of our new five-year business strategy, Future26, launched at the end of 2021. WE ARE COMMITTED TO TAKING ACTION 2030 -63% CO₂e, scope 1 and 2, in total III Hanne Søndergaard EVP, Chief Agriculture, Sustainability and Communications Officer Dairy is an important part of many people's diets around the world, providing high quality proteins and nutrition, through a wide range of tasty, versatile and affordable products. The global dairy industry also helps to support the livelihoods of hundreds of millions of people and our farmers play an important role in the stewardship of the land. At Arla, we have been working with sustainability for many years, and our farmers are amongst the most climate efficient globally, with 1.15 kg of CO₂e emissions per kg of milk.* In 2021, we raised our climate ambition to support the 1.5°C global warming target of the Paris agreement, committing ourselves to lowering our scope 1 and 2 emissions by 63 per cent by 2030*. I am pleased that these plans have been approved by the Science Based Targets initiative. Data transparency, accuracy and credibility are prerequisites for our success on the sustainability journey Making sustainability core to our business strategy ensures that it gets the right focus and investment that will be needed to drive change and impact in the years ahead and enable us to deliver on our vision. Having grown up on a dairy farm, I have spent my whole working life at Arla Foods and feel immensely privileged to be given the role as our first Chief Agriculture and Sustainability Officer. I look forward to sharing our progress with you and reporting on it through this and future ESG reports. 2025 100% Recyclable packaging** 2030 -30% CO₂e, scope 3 per kg of milk and whey 2030 -50% Food waste 2030 0% Virgin fossil plastic** CARBON HET ZERO 2050 Arla 2025 2030 2050 **On branded products * FAO and GDP. 2018. Climate change and the global dairy cattle sector - The role of the dairy sector in a low-carbon future.

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