Arla Foods Consolidated Annual Report 2021
124
Arla Foods Consolidated Annual Report 2021 / Environmental, social and governance (ESG) data / Notes
Environmental figures
1.1 GREENHOUSE GAS EMISSIONS (CO2e)
Contents
OUR FARMERS REMAIN AMONGST MOST CLIMATE EFFICIENT
To follow up on Arla's contribution to climate change
and the progress towards our emission targets, our
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 Corporate Standard (GHG
protocol). In line with Arla's Science Based Targets, the
group does not account for carbon credits.
Since 2015, scope 1 and scope 2 CO₂e emissions
decreased by 25 per cent well in progress to reach our
updated scope 1 and 2 science-based reduction target
of 63 per cent by 2030.
Scope 3 emissions per kg milk and whey amounted to
1.20 kg, unchanged compared to last year. In 2021,
emissions specifically from Arla's owners amounted to
1.15 kg CO₂e per kg of owner milk, on a par with last year.
Emissions related to packaging and transport increased
mainly due to expanded production in our international
markets. According to our Science Based Target, scope 3
emissions per kg of milk and whey should be reduced by
30 per cent by 2030. In 2021 the reduction was 7 per
cent compared to 2015 and on par with last year,
showing that our farmers are amongst the most climate
efficient globally.
In 2021, total CO2e emissions increased to 19,783
million kg compared to 19,376 million kg last year
The development is explained by an increase in
externally purchased whey in Arla Foods Ingredients
and increased emissions related to expanding
production capacity at our production site in Bahrain.
These factors were partly offset by increased purchase
of biogas certificates.
ESG Table 1.1 Greenhouse gas emissions
(mkg)
2021
2020
2019
2018
2017
CO₂e reduction scope 1 and 2 market-based
(baseline: 2015)
-25%
-24%
-12%
-4%
-5%
CO2e reduction scope 3 per kg milk and whey
(baseline: 2015)
-7%
-7%
-7%
-7%
-6%
CO₂e scope 1
Operations
Transport
CO₂e scope 1
CO₂e scope 2
CO2e scope 2-market-based*
368
381
366
400
408
79
93
97
90
84
447
474
463
490
492
286
277
399
456
438
CO₂e scope 3**
Purchased goods and services (category 1):
Milk***
Whey
Packaging
16,386
1,751
417
16,645
1,133
396
16,524 16,548
16,809
1,032
384
1,162
1,002
383
CO₂e emission development
(mKG)
Purchased goods and services (category 1)
18,554
18,174
17,940
18,093
384
18,195
20,000
684
19,376
-18
-259
19,783
4%
Fuel and energy-related activities (category 3)
Upstream transport and distribution (category 4)
125
120
110
108
105
347
306
312
326
345
Scope 1+2
4%
18,000
10%
13%
Other
scope 3
Waste generated in operations (category 5)
CO₂e scope 3
24
25
25
26
26
19,050
18,625
18,387
18,553
18,671
Total CO₂e
19,783
19,376
19,249
19,499
19,601
COze Scope 2-location-based
Total CO2e-location-based
243
19,740
237
19,336
274
19,124
263
19,306
313
19,476
16,000
CO₂e scope 3
14,000
12,000
10,000
2020
86%
Scope 1+2
Scope 3
milk
Scope 3
whey and other
per kg milk
and whey
-7%
83%
Milk
scope 3
Compared to
2015
2021
*In 2020, Arla switched to market-based reporting, read more on page 125.
** Scope 3 emissions from categories 2, 6, 7, 8, 9, 12, 13 and 15 are immaterial to Arla's scope 3 emissions and are therefore not included in
the emission figures in ESG Table 1.1. The categories mentioned individually account for less than 0.6 per cent of the Arla's scope 3 emissions.
Categories 10, 11 and 14 are not applicable to Arla due to the nature of the products and the Arla business model.
*** The milk conversion factor from litre into kg was 1.02 for milk volumes until 30 June, 2021. Effective from 1 July 2021, the milk conversion
factor is 1.03. Historical figures for owner milk was re-statet to the new conversion factor.
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