Fonterra drops New Zealand’s first “Carbon Zero Milk” amid emissions target failure

NEW ZEALAND – Fonterra, New Zealand’s dairy giant, has discontinued its Simply Milk range, marketed as the country’s first “carbon zero milk,” after failing to meet emissions reduction targets last year. 

Launched in 2020 with a promise to cut emissions by 2.2% per bottle by 2024 across farming, manufacturing, distribution, retail, and disposal, the product was recently rebranded to focus on donating 10 cents per bottle to social supermarkets instead.

According to the company, its initial carbon neutral certification involved both reducing emissions and offsetting the rest through initiatives like funding forest regeneration in the South Island and wind power projects in India. 

However, the company admitted the reduction target was not achieved, despite some progress since the product’s launch. 

“Achieving Toitū net carbon zero certification for Simply Milk required greenhouse gas emissions reductions targets and offsetting remaining annual emissions through carbon credits,” Fonterra’s Oceania marketing and innovation director, Renée Milkop-Kerr, said. 

She added that evolving global regulations and consumer confusion over green claims prompted the shift to a simpler donation model.

Consumer NZ investigations leader Rebecca Styles expressed concern over the change noting that many environmentally conscious shoppers paid a premium for Simply Milk, trusting its green credentials, only to feel misled.

 “It was very surprising to see it change. It’s a big pivot really. It feels like an abandonment of green claims on products,” Styles remarked. 

She emphasized that while Fonterra offset some emissions, it fell short on actual reductions. “To be a net carbon zero, you need to be able to do both.”

Fonterra acknowledged the pivot was influenced by feedback from New Zealanders, with Milkop-Kerr explaining that the 10-cent donation was “more appealing and easier to understand.” 

Meanwhile, certification body Toitū Envirocare clarified to that Fonterra met the initial requirements for its net carbon zero label but withdrew before hitting the 2.2% reduction goal, set over six years. 

Toitū stressed its rigorous, internationally recognized process and commitment to transparency, even when targets are missed.

Styles also pointed out a broader issue, noting little punishment for greenwashing in New Zealand compared to tougher actions in Europe and Australia. 

Despite this setback, New Zealand’s on-farm carbon footprint for milk remains among the world’s lowest historically, a point of pride for the industry. 

Fonterra’s move has sparked debate about the reliability of green claims and how companies balance ambition with accountability.

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