Press Release – Auckland/Sydney, 8 October 2020
Danone's New Zealand Karicare milk formula brand commits to carbon neutrality
· Karicare is the first milk formula brand in Australia and New Zealand to commit to reduce and offset 100% of its carbon emissions
· The commitment is an integral part of Danone's worldwide ambition to be a zero-net carbon company by 20501
Danone today announced that its New Zealand milk formula brand, Karicare, will achieve carbon neutrality at each stage of the product lifecycle by 2030. Karicare will join other Danone brands – such as Horizon Organic, which has also committed to becoming carbon neutral, and evian® and Volvic, which are already carbon neutral – on Danone's journey to becoming a zero-net carbon company by 2050.
Karicare's journey to carbon neutrality is greatly aided by its production in New Zealand, a country well-known for its efforts to reduce greenhouse gas emissions, including an abundance of 'green' power and investments in clean transportation. New Zealand also has an ambition to be net zero on greenhouse gas emissions by 20502.
"At Danone, our core belief is that the health of the planet and health of people are interconnected. That's why we're committed to taking real steps that help us bring our products to market in a way that minimises any impact on climate change, including transitioning production of our milk formula products to practices that are more sustainable," said Rodrigo Lima, Managing Director, Nutricia Oceania.
To underpin Karicare's carbon neutral commitment, Danone will work with its New Zealand suppliers and farmers to foster regenerative agricultural practices and improve soil health, continue to invest in decarbonisation of operations and focus on packaging circularity.
Decarbonising operations
Karicare carbon emissions associated with operations is a significant area of focus for Danone. This includes installing a biomass boiler to provide renewable heat at its South Island spray drying facility in Balclutha. Announced in July 2019, the NZ$30 million boiler will be operational in 2021 and will eliminate around 20,000 tonnes of CO2emissions per year.
Danone will also move to 100% renewable electricity for all its New Zealand plants next year. Between the move to renewable energy and biomass-based heating, the total operational CO2 emissions at the Balclutha plant will be reduced by 95%.
Packaging circularity
Danone's ambition is to make packaging 100% circular across all its brands3. This means eliminating unneeded packaging, designing for recycling, reusing or compositing and ensuring that the material produced stays in the economy and doesn't become waste or pollution. A circular approach to packaging reduces carbonemissions due to greater reuse and recycling, leading to less reliance on virgin materials4.
Karicare's packaging across the total portfolio has a high level of recyclability due the use of tin plate in its cans and the widespread use of recyclable plastics for items such as scoops and snap-seal lids. Consistent with Danone's global ambition, all Karicare's packaging will be either recyclable, reusable or compostable by 2025.
Carbon neutral certification
The carbon neutral journey for Karicare will commence with the newly launched Karicare Gold Plus+ Organic, which will be certified carbon neutral in 2022. All other products in the Karicare range will be progressively certified up to 2030, at the latest.
"Danone's approach to carbon neutrality is to focus on reductions first and foremost," continued Lima. "We continuously act together with our partners to reduce our emissions in agriculture, operations and packaging, then taking responsibility for offsetting remaining emissions to achieve a carbon neutral position.
"With carbon neutral Karicare, we're providing consumers with a more sustainable option and giving them the opportunity to choose a better future for their family."
References:
1). Danone: Towards carbon neutrality - https://www.danone.com/impact/planet/towards-carbon-neutrality.html
2). Net zero emissions of all greenhouse gases other than biogenic methane by 2050 –
3). Danone: Circular economy of packaging: https://www.danone.com/impact/planet/packaging-positive-circular-economy.html
4). Ellen MacArthur Foundation, Completing the Picture: How the Circular Economy Tackles Climate Change (2019) www.ellenmacarthurfoundation.org/publications
About Danone
Danone is a leading multi-local food and beverage company building on health-focused and fast-growing categories in 3 businesses: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With its 'One Planet. One Health' frame of action, which considers the health of people and the planet as intimately interconnected, Danone aims to inspire healthier and more sustainable eating and drinking practices. To accelerate this food revolution and create superior, sustainable, profitable value for all its stakeholders, Danone has defined nine 2030 Goals, and paved the way as the first listed company to adopt the French "Entreprise à Mission" status, inspired by the public benefit corporation status in the US. With a purpose to bring health through food to as many people as possible, and corresponding social, societal and environmental objectives set out in its articles of association, Danone commits to operating in an efficient, responsible and inclusive manner, in line with the Sustainable Development Goals (SDGs) of the United Nations. By 2025, Danone aims to become one of the first multinational companies to obtain B CorpTMcertification. With more than 100,000 employees, and products sold in over 120 markets, Danone generated €25.3 billion in sales in 2019. Danone's portfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including AQUA, Blédina, Bonafont, Cow & Gate, Horizon Organic, Mizone, Oikos, Prostokvashino, Silk, Vega). Listed on Euronext Paris and present on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Vigeo Eiris and Sustainalytics, as well as the Ethibel Sustainability Index, the MSCI ESG Indexes, the FTSE4Good Index Series, Bloomberg Gender Equality Index, and the Access to Nutrition Index.
