Arla signs up retailers to share climate data and reduce emissions

Arla Foods UK has signed commercial partnerships with Aldi, Asda, Morrisons and Starbucks to share its climate data, in a bid to accelerate progress towards Scope 3 targets.

The climate data, sourced from Arla’s existing on-farm sustainability initiatives, is designed to offer “more accurate reporting”. And by working with Arla and its farmers, its four customers would have “the opportunity to reduce emissions faster”, Arla said.

The new Customer Sustainability Program covers a total milk pool in excess of 1.1 billion litres, representing just under 9% of Arla’s UK milk output.

All farms in the scheme produce milk as part of Arla’s Climate Check data programme and Sustainability Incentive Model – which enables farmers to identify and then implement the most efficient ways to reduce emissions via data insights and financial incentives.

Arla has combined data from these two initiatives for a project that will “create value for retail and foodservice customers who are all looking for ways to lower their Scope 3 emissions”.

Customers who have signed up to the CSP will invest in Arla’s ongoing efforts to reduce on-farm emissions. They will then gain access to Arla’s farmers through R&D projects and pilots, while receiving more accurate on-farm data with CO2 footprint per kg/milk and customised data reports.

Retailer partners will also be able to claim CO2e reductions as part of their ESG targets. Arla is hoping to attract other retail partners onto the scheme in the future.

“Driving down scope 3 emissions is another way of bringing value to our customers, and we want to be a strategic partner for them in that journey,” said COO and executive VP of Arla Foods Europe, Peter Giørtz-Carlsen.

“Dairy is an important category for our retail and foodservice customers, and for some of them, emissions from dairy constitute a significant part of their scope 3 emissions.”

Currently, this translated into increased interest in entering into partnerships, which Arla welcomed, he added. “Our scope 3 leadership also provides us with new commercial and strategic opportunities for our milk pool.”