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Select an assessment year:

  • Overall approach
    2/12
    • Overarching commitment on deforestation
      0/4
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Commodities (if applicable): Palm oil
      Palm oil: "We want to strengthen our commitment to work towards a more sustainably producing palm oil supply chain, which includes no deforestation, no new development on peat lands, full traceability to the mills including the supplying group of plantations and respect for workers’, local communities’ and human rights."
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Which initiatives?: UN Global Compact
      "In early 2008, Arla signed up to the Global Compact, the UN initiative to promote ethical business practices. As a participant, we are committed to observing the Global Compact’s 10 fundamental principles."
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "No deforestation means - No clearance of rain forest or HCS forests - Areas of high carbon and high conservation value (HCV) shall be protected [...]"
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
      Yes
      0/0
      "In Denmark and the Netherlands, we compensate the CO2e emissions for our organic product range Arla ØKO by investing in climate projects in Eastern Africa, Brazil as well as Indonesia. In Eastern Africa, new trees are planted and in Indonesia and Brazil our investments contribute to preserving rainforest. [...]The Arla Ko® Eko range in Sweden is climate compensated by similar investments in rainforest preservation and planting of new trees. We have invested in tree planting in Uganda, and in Indonesia we support a project that preserved more than 5,300 hectares from being cut down."
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      Type of climate target: Net-zero emissions

      What is the target date for the company to achieve their climate target?: 2050
      "The ambition is to become carbon net zero by 2050 and to reach our Science Based Targets by 2030, reducing Scope 1 and 2 emissions by 30 per cent in absolute terms, and Scope 3 emissions by 30 per cent per kilo milk and whey."
  • Commodity score
    28/88
    • Palm oil
      43/88
      • Commitment Strength
        17/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: RSPO

            Does the company have a commitment to the protection of other specific named ecosystems?: Peat
            "REQUIREMENTS TO SUPPLIERS • Palm oil supplied to Arla must be from a supply chain in which each member of the chain (manufacturers, refineries, mills and plantations, etc.) operates in compliance with local laws and regulations. • All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO. • All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations. • All suppliers shall also respect and support the universal declaration of human rights of all workers and community rights in their supply chain. • Suppliers of palm oil are requested to progress on achieving certification of their plantations and 4 ACOP: Annual Communication of Progress mills, as well as refineries and processing plants. We expect them to report progress towards their goals in ACOP4"[...] "Furthermore, we want to strengthen our commitment to work towards a more sustainably produced palm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes demands of no deforestation, no new development on peat lands"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "REQUIREMENTS TO SUPPLIERS • Palm oil supplied to Arla must be from a supply chain in which each member of the chain (manufacturers, refineries, mills and plantations, etc.) operates in compliance with local laws and regulations. • All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO. • All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations. • All suppliers shall also respect and support the universal declaration of human rights of all workers and community rights in their supply chain. • Suppliers of palm oil are requested to progress on achieving certification of their plantations and 4 ACOP: Annual Communication of Progress mills, as well as refineries and processing plants. We expect them to report progress towards their goals in ACOP4"[...] "Furthermore, we want to strengthen our commitment to work towards a more sustainably produced palm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes demands of no deforestation, no new development on peat lands"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            What actions or steps are identified for time-bound implementation?: "Compliance of the suppliers with the before described principles leads to RSPO certification of the oil purchased and it is monitored on a yearly basis. We share our progress in achieving our ambition publicly on an annual basis in our communication of progress report to RSPO and our responsibility report. "
            "Arla‘s ambition is to use only RSPO segregated certified palm oil-based products and by the end of 2018 we were 98 percent of the way to achieving this. If we cannot fulfil this commitment, e.g. due to lack of availability, we have to purchase palm oil products according to [...] Balance or buy RSPO credits for all palm oil used. Palm oil in purchased additives will be certified segregated palm oil by the end of 2019 at the latest." This report was updated in February 2021.
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            What date is given for the interim milestone(s)?: 2018
            "Arla‘s ambition is to use only RSPO segregated certified palm oil-based products and by the end of 2018 we were 98 percent of the way to achieving this. If we cannot fulfil this commitment, e.g. due to lack of availability, we have to purchase palm oil products according to Mass March 2019 Responsible Sourcing Page 7 of 11 Balance or buy RSPO credits for all palm oil used. Palm oil in purchased additives will be certified segregated palm oil by the end of 2019 at the latest."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "REQUIREMENTS TO SUPPLIERS • Palm oil supplied to Arla must be from a supply chain in which each member of the chain (manufacturers, refineries, mills and plantations, etc.) operates in compliance with local laws and regulations. • All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO. • All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations. • All suppliers shall also respect and support the universal declaration of human rights of all workers and community rights in their supply chain. • Suppliers of palm oil are requested to progress on achieving certification of their plantations and 4 ACOP: Annual Communication of Progress mills, as well as refineries and processing plants. We expect them to report progress towards their goals in ACOP4"[...] "Furthermore, we want to strengthen our commitment to work towards a more sustainably produced palm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes demands of no deforestation, no new development on peat lands" "No clearance of rain forest or HCS forests"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "REQUIREMENTS TO SUPPLIERS • Palm oil supplied to Arla must be from a supply chain in which each member of the chain (manufacturers, refineries, mills and plantations, etc.) operates in compliance with local laws and regulations. • All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO. • All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations. • All suppliers shall also respect and support the universal declaration of human rights of all workers and community rights in their supply chain. • Suppliers of palm oil are requested to progress on achieving certification of their plantations and 4 ACOP: Annual Communication of Progress mills, as well as refineries and processing plants. We expect them to report progress towards their goals in ACOP4"[...] "Furthermore, we want to strengthen our commitment to work towards a more sustainably produced palm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes demands of no deforestation, no new development on peat lands" "No clearance of rain forest or HCS forests"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            What actions or steps are identified for time-bound implementation?: "Compliance of the suppliers with the before described principles leads to RSPO certification of the oil purchased and it is monitored on a yearly basis. We share our progress in achieving our ambition publicly on an annual basis in our communication of progress report to RSPO and our responsibility report. "
            "Arla‘s ambition is to use only RSPO segregated certified palm oil-based products and by the end of 2018 we were 98 percent of the way to achieving this. If we cannot fulfil this commitment, e.g. due to lack of availability, we have to purchase palm oil products according to [...] Balance or buy RSPO credits for all palm oil used. Palm oil in purchased additives will be certified segregated palm oil by the end of 2019 at the latest." This report was updated in February 2021.
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            What date is given for the interim milestone(s)?: 2018
            "Arla‘s ambition is to use only RSPO segregated certified palm oil-based products and by the end of 2018 we were 98 percent of the way to achieving this. If we cannot fulfil this commitment, e.g. due to lack of availability, we have to purchase palm oil products according to Mass March 2019 Responsible Sourcing Page 7 of 11 Balance or buy RSPO credits for all palm oil used. Palm oil in purchased additives will be certified segregated palm oil by the end of 2019 at the latest."
        • Commitment to a traceable supply chain
          5/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "We want to strengthen our commitment to work towards a more sustainably producedpalm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes [...] achievement of full traceability to the mill including supplying group of plantations"[...] "Monitoring and follow up: Procurement of palm oil follows Arla’s general procurement management process. Assessment of suppliers, monitoring of development, follow up and handling of deviations will be handled according to these processes"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "We want to strengthen our commitment to work towards a more sustainably producedpalm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes [...] achievement of full traceability to the mill including supplying group of plantations"[...] "Monitoring and follow up: Procurement of palm oil follows Arla’s general procurement management process. Assessment of suppliers, monitoring of development, follow up and handling of deviations will be handled according to these processes"
          • Target date
            No target date
            0/0.7
            Target date
            No target date
            0/0.7
            "All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations."
          • Interim target date
            No
            0/0.3
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces
          "Responsible labour conditions (no child and forced labour, no discrimination and harassment, respect for workers’ rights, safe and healthy workplace, freedom of association, legal wages and working hours)."; "Respect and support UN Declaration of Human Rights" 
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "The Supplier shall provide equal opportunities for its employees and may not discriminate on the basis of race, sex, age, religion, marital status or sexual orientation, or use forced labour."
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        21/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: yes, RSPO ACOP
            In their 2019 RSPO ACOP report , the total volume of palm oil was 39479 tonnes and 100% of that was certified 
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes, RSPO ACOP
            In their 2019 RSPO ACOP report , the total volume of palm oil was 39479 tonnes and 100% of that was certified 
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO 

            Which processes or groups does the company use for third party verification?: certification schemes
            In their 2019 RSPO ACOP report , the total volume of palm oil was 39479 tonnes and 100% of that was certified 
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            Which processes or groups does the company use for third party verification?: Certification schemes

            For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
            In their 2019 RSPO ACOP report , the total volume of palm oil was 39479 tonnes and 100% of that was certified 
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: UNICEF Initiative

          What is the nature of that participation?: Providing financial support
          "In Indonesia, we have continued to financially support workshops in collaboration with our main supplier of palm oil. Our primary objective has been to strengthen sub-supplier understanding of human rights and labour issues and to improve plantation management practices. Through the workshops, suppliers also gain a deeper understanding of responsible sourcing expectations. This year’s focus has been the implementation of a child protection policy, which was finalised with the support of UNICEF."
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own mechanism 

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Arla values and respects honest and open communication, and all stakeholders have the opportunity to raise questions and or concerns through: arla@arlafoods.com. "   They have a whistleblowing system "to report breaches of our code of conduct or violations of the law including issues relating to bribery and corruption, competition law, fraud, financial crime, food safety and quality issues, harassment and discrimination, international trade controls, protection of personal data, rights and protection of individuals, serious environmental damage or conflicts of interest."; The grievance policy also discusses the Ethics Line for anyone to disclose social and environmental grievances related to Arla. 
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 39479 tonnes
          In their 2019 RSPO ACOP report , the total volume of palm oil was 39479 tonnes and 100% of that was certified 
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          What is the certified volume?: 39479 tonnes

          What third-party verification is used?: RSPO Certification

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%

          What is the non-certified/non-compliant volume?: 0 tonnes
          In their 2019 RSPO ACOP report , the total volume of palm oil was 39479 tonnes and 100% of that was certified 
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Annually 

          Details of monitoring: Using certification
          "Procurement of palm oil follows Arla’s sourcing process. Assessment of suppliers, monitoring of development, follow up and handling of deviations is managed according to these processes. Compliance of the suppliers with the before described principles leads to RSPO certification of the oil purchased and it is monitored on a yearly basis. We share our progress in achieving our ambition publicly on an annual basis in our communication of progress report to RSPO and our responsibility report."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          The Code of Conduct states that "We expect our Suppliers to comply with the requirements set out in “Our Responsibility”, including environmental, social and human rights aspects" - ie. including the palm oil policy. "In the event of a material and/or repeated breach by the Supplier of any of its obligations under this Code of Conduct for Suppliers, Arla Foods is entitled in whole or in part to terminate its co-operation with the Supplier, without incurring any liability towards the Supplier."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      14/88
      • Commitment Strength
        3/20
        • Commitment to protect priority forests
          3/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: FSC; PEFC
            "Although we have been working with certified forest-based packaging material for years, in 2020 we formally adopted a sourcing policy stating that by end of 2021, all use of forest fibre in Europe will be from certified sources, we are exploring opportunities to expand to all markets. We prefer FSC-certified forest fibre for packaging materials and energy use at our sites, and when this is not possible, we allow for PEFC-certified. In 2020, we have mapped our use of forest fibre and made plans for transition into compliance with our sourcing statement by the end of 2021."; "We have already achieved our environmental strategy 2020 goal of reducing climate impact from packaging by 25 per cent from a 2005-baseline. This is the result of continuously decreasing the weight of individual packaging formats, without impacting functionality, as well as increasing the percentage of renewable and recycled packaging material. We have also continued to take responsibility for sourcing responsibly produced packaging materials, for example, carton and paper which is FSC (Forest Stewardship Council) certified."; "All corrugated material delivered to sites in Denmark and Sweden is now 100 per cent FSC (Forest Stewardship Council) certified."; "As part of its investments to biomass boilers, Arla Foods has committed to financing sustainably sourced wood feedstock that is certified under FSC, which is a credible certification scheme that mitigate controversial land use change activities, such as deforestation and conversion of high value conservation forests, and the implementation of riparian buffer zones and a variety of other environmental management controls."
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Location
            "Although we have been working with certified forest-based packaging material for years, in 2020 we formally adopted a sourcing policy stating that by end of 2021, all use of forest fibre in Europe will be from certified sources, we are exploring opportunities to expand to all markets. We prefer FSC-certified forest fibre for packaging materials and energy use at our sites, and when this is not possible, we allow for PEFC-certified. In 2020, we have mapped our use of forest fibre and made plans for transition into compliance with our sourcing statement by the end of 2021."
          • Target date
            2021
            0.7/0.7
            Target date
            2021
            0.7/0.7
            "Although we have been working with certified forest-based packaging material for years, in 2020 we formally adopted a sourcing policy stating that by end of 2021, all use of forest fibre in Europe will be from certified sources, we are exploring opportunities to expand to all markets. We prefer FSC-certified forest fibre for packaging materials and energy use at our sites, and when this is not possible, we allow for PEFC-certified. In 2020, we have mapped our use of forest fibre and made plans for transition into compliance with our sourcing statement by the end of 2021."
          • Interim target date
            Yes
            0.3/0.3
            Interim target date
            Yes
            0.3/0.3
            "We have already achieved our environmental strategy 2020 goal of reducing climate impact from packaging by 25 per cent from a 2005-baseline. This is the result of continuously decreasing the weight of individual packaging formats, without impacting functionality, as well as increasing the percentage of renewable and recycled packaging material. We have also continued to take responsibility for sourcing responsibly produced packaging materials, for example, carton and paper which is FSC (Forest Stewardship Council) certified. "
        • Commitment to reduce use of virgin wood fibre
          0/5
          • Commitment details
            No
            0/3
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
          "REQUIREMENTS TO SUPPLIERS:[...] Responsible labour conditions (no child and forced labour, no discrimination and harassment, respect for workers’ rights, safe and healthy workplace, freedom of association, legal wages and working hours)."  
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "The Supplier shall provide equal opportunities for its employees and may not discriminate on the basis of race, sex, age, religion, marital status or sexual orientation, or use forced labour."
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        6/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "We have already achieved our environmental strategy 2020 goal of reducing climate impact from packaging by 25 per cent from a 2005-baseline. This is the result of continuously decreasing the weight of individual packaging formats, without impacting functionality, as well as increasing the percentage of renewable and recycled packaging material. We have also continued to take responsibility for sourcing responsibly produced packaging materials, for example, carton and paper which is FSC (Forest Stewardship Council) certified. "
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC

            Which processes or groups does the company use for third party verification?: FSC
            "We have already achieved our environmental strategy 2020 goal of reducing climate impact from packaging by 25 per cent from a 2005-baseline. This is the result of continuously decreasing the weight of individual packaging formats, without impacting functionality, as well as increasing the percentage of renewable and recycled packaging material. We have also continued to take responsibility for sourcing responsibly produced packaging materials, for example, carton and paper which is FSC (Forest Stewardship Council) certified."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own mechanism

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Arla values and respects honest and open communication, and all stakeholders have the opportunity to raise questions and or concerns through: arla@arlafoods.com. "   They have a whistleblowing system "to report breaches of our code of conduct or violations of the law including issues relating to bribery and corruption, competition law, fraud, financial crime, food safety and quality issues, harassment and discrimination, international trade controls, protection of personal data, rights and protection of individuals, serious environmental damage or conflicts of interest."; The grievance policy also discusses the Ethics Line for anyone to disclose social and environmental grievances related to Arla. 
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          The Code of Conduct states that "We expect our Suppliers to comply with the requirements set out in “Our Responsibility”, including environmental, social and human rights aspects" - ie. including the palm oil policy. "In the event of a material and/or repeated breach by the Supplier of any of its obligations under this Code of Conduct for Suppliers, Arla Foods is entitled in whole or in part to terminate its co-operation with the Supplier, without incurring any liability towards the Supplier."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      28/88
      • Commitment Strength
        6/20
        • Commitment to protect priority forests
          6/11
          • Commitment details
            Credible certification scheme
            2.7/8
            Commitment to protect priority forests
            Credible certification scheme
            2.7/8
            (For downstream soy companies only) Does the company commitment also explicitly apply to hidden/indirect soy?: Yes

            Which certification schemes are used?: RTRS
            "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
          • Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
          "REQUIREMENTS TO SUPPLIERS:[...] Responsible labour conditions (no child and forced labour, no discrimination and harassment, respect for workers’ rights, safe and healthy workplace, freedom of association, legal wages and working hours)."  
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        18/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            "Our target of 100 per cent responsibly sourced palm oil, soy and cocoa has been achieved for soy and cocoa."
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          2/2
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Which processes or groups does the company use for third party verification?: RTRS

            Which tools, approaches, third-party verification, including certification, schemes are used?: RTRS
            "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own mechanism

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Arla values and respects honest and open communication, and all stakeholders have the opportunity to raise questions and or concerns through: arla@arlafoods.com. "   They have a whistleblowing system "to report breaches of our code of conduct or violations of the law including issues relating to bribery and corruption, competition law, fraud, financial crime, food safety and quality issues, harassment and discrimination, international trade controls, protection of personal data, rights and protection of individuals, serious environmental damage or conflicts of interest."; The grievance policy also discusses the Ethics Line for anyone to disclose social and environmental grievances related to Arla. 
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 347,880 tons
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%

          What third-party verification is used?: Proterra, RTRS, equivalent soy or covered by credits via feed suppliers

          What is the compliant volume?: 17880 tonnes

          What is the certified volume?: 330,000 tons
          "Of the above volume, 17 880 tonnes were Proterra/RTRS certified/equivalent soy or covered by credits via feed suppliers (SE soy dialogue)"
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Annually

          Details of monitoring: Using certification
          "Procurement of soy-based ingredients follows Arla’s sourcing process. Assessment of suppliers, monitoring of development, follow up and handling of deviations is managed according to these processes. Only soy products that are produced according to RTRS/Pro Terra principles can be used in Arla branded products. Compliance with this is monitored on a yearly basis. We share our progress in achieving our ambition publicly on an annual basis in our progress report to RTRS and our responsibility report."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          The Code of Conduct states that "We expect our Suppliers to comply with the requirements set out in “Our Responsibility”, including environmental, social and human rights aspects" - ie. including the palm oil policy. "In the event of a material and/or repeated breach by the Supplier of any of its obligations under this Code of Conduct for Suppliers, Arla Foods is entitled in whole or in part to terminate its co-operation with the Supplier, without incurring any liability towards the Supplier."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    9/20
    Avg. score
  • Reporting and Implementation
    15/50
    Avg. score
  • Social considerations
    5/18
    Avg. score

Profile

Arla Foods is a dairy cooperative with activities around the world. The company’s most prominent markets are the United Kingdom, Central Europe and Asia. Its products include milk, cheese, butter and cooking ingredients with brands such as Lurpak, Castello and Apetina. Arla Foods is one of the world’s largest ingredient producers. Soy plays an important role in the cooperative’s animal feed and palm oil is also used in its products. Arla Foods is selected as a powerbroker for palm oil, soy and paper packaging.

Sector
Industry sector 
Dairy, Packaged food
Segments
Manufacturer
HQ
HQ 
Denmark
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Anchor, Arla, Castello, Lurpak, Cravendale, Skyr

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.