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  • Overall approach
    2/10
    • Overarching commitment on deforestation
      0/4
      Overall commitment
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Do they have a commitment for other non-Forest 500 commodities, if so which?: No

      Which commodities does the commodity-specific commitment apply to?: Palm oil
      "We therefore have a specific focus on this area but we also consider the risk of deforestation more widely in our supply chain and completed our fourth response to CDP on forests this year. We have been a member of the Roundtable for Sustainable Palm Oil (RSPO) since 2010 and since 2015, all our palm oil purchases have been certified by RSPO. In 2016, we launched our Palm Product Standard. This requires palm product vendors within our supply chain to publicly commit to “No Deforestation, No Peatland Development, and No Exploitation” and have processes to meet these commitments. We had planned to publish a new version of this in FY21 but that has been delayed until FY22."
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "Determining what's important [...] Protecting biodiversity and the underlying ecosystem services we rely upon, including the impact of deforestation [...] Healthy freshwater, soil and ecosystems are essential to the long-term success of our business, farmers’ businesses, and to communities. Natural resources are limited and the impacts to them are experienced locally. We believe protecting and restoring the environment is critical to safeguard opportunities for future generations. "
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Palm oil

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Not specified
      "Our approach Our Global Procurement Policy and Procurement Standard set out our requirements for the procurement of non-milk goods and services, including capital projects. We are committed to purchasing decisions that set us up for a sustainable future and these requirements apply to all purchasing. For significant items our specialist procurement team must be involved in the purchasing decisions and ongoing management of the vendors. The Global Policy is approved by the Board of Directors and the COO is accountable for ensuring the Global Standard is fully implemented across the organisation. Business Unit procurement leads are accountable for guiding and approving major procurement activities, ensuring procurement control activities are operating effectively and addressing any actual or potential non-compliant behaviours. All employees are responsible for complying with the standard. [...] Palm products are one of the highest-profile raw materials in our supply chain. The production of palm products has been linked to unsustainable practices, including deforestation, habitat destruction and poor human rights. We therefore have a specific focus on this area but we also consider the risk of deforestation more widely in our supply chain and completed our fourth response to CDP on forests this year."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      Yes
      0/0
      What is the target date for the company to achieve their climate target?: 2050

      Type of climate target: Net-zero emissions

      Is this target aligned with/verified by SBTi?: No
      "Our climate change targets are: 30% reduction in manufacturing emissions by 2030, Net zero emissions for our manufacturing sites by 2050, No net increase in GHG emissions from dairy farming between 2015 and 2030"
  • Commodity score
    15/90
    • Soy
      8/90
      • Commitment Strength
        0/17
        • Commodity-specific deforestation commitment
          0/9.5
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        3/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: Not specified

          Other workers' rights commitments: Living wage

          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "We expect our suppliers to support the ethical standards set out in this code of practice regarding workplace health and safety, environment, fair pay and conditions, and economic sustainability. Our suppliers must commit to complying with the following requirements, which are drawn from the International Labour Organisation (ILO) and Ethical Trading Initiative (ETI). These are minimum standards based on the principles of the United Nations Universal declaration of Human Rights.[...] Freely chosen employment - Suppliers shall not make use of forced or bonded labour. By right, labour should be freely given and employees should be free to leave in accordance with established rules. Child labour - Suppliers shall not employ children in violation of conventions 138 and 182 of the International Labour Organization. • Discrimination – Supplier shall not discriminate in any manner on the basis of race, ethnic background, age, religion, gender, sexual orientation or disability. Freedom of association - Suppliers shall respect the right of employees to be represented by trade unions and other bona fide representatives of employees, and engage in constructive negotiations with such representatives with a view to reaching agreements on employment conditions."
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          No
          0/3
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        5/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Fonterra’s global sustainability program is based on a three-step approach: 1. Suppliers acknowledge Fonterra’s Supplier Sustainability Code of Practice and the need to align with it. 2. Based on the risk and the total spend, a selected number of suppliers are requested to complete a selfassessment questionnaire. 3. Audits may be conducted. The audit may be undertaken as part of the regular Approved Supplier Programme of audits or may be a separate sustainability audit. The main goal of the audit is to build a sustainable relationship with our supplier. These audits may result in the development and implementation of jointly agreed improvement plans. [...] Regulations - Supplier should operate in full compliance with international, national and local laws and regulations applicable to their business operations, and obtain all necessary permits. Local industry standards should prevail when more stringent than the local legal requirements"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What steps has the company taken to implement their labour rights commitment?: NA

          What is the status of those FPIC processes?: NA
          "Fonterra’s global sustainability program is based on a three-step approach: 1. Suppliers acknowledge Fonterra’s Supplier Sustainability Code of Practice and the need to align with it. 2. Based on the risk and the total spend, a selected number of suppliers are requested to complete a selfassessment questionnaire. 3. Audits may be conducted. The audit may be undertaken as part of the regular Approved Supplier Programme of audits or may be a separate sustainability audit. The main goal of the audit is to build a sustainable relationship with our supplier. These audits may result in the development and implementation of jointly agreed improvement plans. [...] We expect our suppliers to support the ethical standards set out in this code of practice regarding workplace health and safety, environment, fair pay and conditions, and economic sustainability. Our suppliers must commit to complying with the following requirements, which are drawn from the International Labour Organisation (ILO) and Ethical Trading Initiative (ETI). These are minimum standards based on the principles of the United Nations Universal declaration of Human Rights"
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          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
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Palm oil *
      35/90
      • Commitment Strength
        13/17
        • Commodity-specific deforestation commitment
          8/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat

            Which certification schemes are used?: RSPO

            When was this commitment set?: 2016
            "We therefore have a specific focus on this area but we also consider the risk of deforestation more widely in our supply chain and completed our fourth response to CDP on forests this year. We have been a member of the Roundtable for Sustainable Palm Oil (RSPO) since 2010 and since 2015, all our palm oil purchases have been certified by RSPO. In 2016, we launched our Palm Product Standard. This requires palm product vendors within our supply chain to publicly commit to “No Deforestation, No Peatland Development, and No Exploitation” and have processes to meet these commitments. We had planned to publish a new version of this in FY21 but that has been delayed until FY22." [...] "All suppliers must commit to: 3.3.1 Identify, protect and enhance High Conservation Values (HCV). 3.3.2 Recognise community land rights through Free, Prior and Informed Consent (FPIC) and participatory mapping. 3.3.3 Use the High Carbon Stock Approach (HCSA) in any plantation development to identify, protect, and restore the natural forests in the landscapes in which they operate. 3.3.4 Follow a best-practice, science-based approach to managing existing plantations on peat, and to restoring and enhancing critical peatland in the landscapes in which they operate. No new development is to occur on peat."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            What subsidiaries are explicitly excluded?: NA

            What subsidiaries are explicitly included?: NA

            What is the rationale for any exclusions?: NA

            What percentage of commodity production/sourcing is excluded?: NA
            "We therefore have a specific focus on this area but we also consider the risk of deforestation more widely in our supply chain and completed our fourth response to CDP on forests this year. We have been a member of the Roundtable for Sustainable Palm Oil (RSPO) since 2010 and since 2015, all our palm oil purchases have been certified by RSPO. In 2016, we launched our Palm Product Standard. This requires palm product vendors within our supply chain to publicly commit to “No Deforestation, No Peatland Development, and No Exploitation” and have processes to meet these commitments. We had planned to publish a new version of this in FY21 but that has been delayed until FY22." [...] "All suppliers must commit to: 3.3.1 Identify, protect and enhance High Conservation Values (HCV). 3.3.2 Recognise community land rights through Free, Prior and Informed Consent (FPIC) and participatory mapping. 3.3.3 Use the High Carbon Stock Approach (HCSA) in any plantation development to identify, protect, and restore the natural forests in the landscapes in which they operate. 3.3.4 Follow a best-practice, science-based approach to managing existing plantations on peat, and to restoring and enhancing critical peatland in the landscapes in which they operate. No new development is to occur on peat."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "We therefore have a specific focus on this area but we also consider the risk of deforestation more widely in our supply chain and completed our fourth response to CDP on forests this year. We have been a member of the Roundtable for Sustainable Palm Oil (RSPO) since 2010 and since 2015, all our palm oil purchases have been certified by RSPO. In 2016, we launched our Palm Product Standard. This requires palm product vendors within our supply chain to publicly commit to “No Deforestation, No Peatland Development, and No Exploitation” and have processes to meet these commitments. We had planned to publish a new version of this in FY21 but that has been delayed until FY22." [...] "All suppliers must commit to: 3.3.1 Identify, protect and enhance High Conservation Values (HCV). 3.3.2 Recognise community land rights through Free, Prior and Informed Consent (FPIC) and participatory mapping. 3.3.3 Use the High Carbon Stock Approach (HCSA) in any plantation development to identify, protect, and restore the natural forests in the landscapes in which they operate. 3.3.4 Follow a best-practice, science-based approach to managing existing plantations on peat, and to restoring and enhancing critical peatland in the landscapes in which they operate. No new development is to occur on peat."
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "We therefore have a specific focus on this area but we also consider the risk of deforestation more widely in our supply chain and completed our fourth response to CDP on forests this year. We have been a member of the Roundtable for Sustainable Palm Oil (RSPO) since 2010 and since 2015, all our palm oil purchases have been certified by RSPO. In 2016, we launched our Palm Product Standard. This requires palm product vendors within our supply chain to publicly commit to “No Deforestation, No Peatland Development, and No Exploitation” and have processes to meet these commitments. We had planned to publish a new version of this in FY21 but that has been delayed until FY22." [...] "All suppliers must commit to: 3.3.1 Identify, protect and enhance High Conservation Values (HCV). 3.3.2 Recognise community land rights through Free, Prior and Informed Consent (FPIC) and participatory mapping. 3.3.3 Use the High Carbon Stock Approach (HCSA) in any plantation development to identify, protect, and restore the natural forests in the landscapes in which they operate. 3.3.4 Follow a best-practice, science-based approach to managing existing plantations on peat, and to restoring and enhancing critical peatland in the landscapes in which they operate. No new development is to occur on peat."
        • Commitment to a traceable supply chain
          6/7.5
          • Commitment details
            Downstream company, traces to Processing Facility, checks compliance
            4/4
            Commitment to a traceable supply chain
            Downstream company, traces to Processing Facility, checks compliance
            4/4
            When was this commitment set?: 2016
            "Transparency and Traceability [...] Suppliers of palm products must commit to: Be able to trace all products to mills. / Have time-bound plans in place and demonstrate meaningful progress towards traceability of all products to plantation, with an aim of full traceability to plantation by 2018 (excluding smallholders) / Make available maps and coordinates of their operations, including all owned and third party supplier mills and refineries, and concession maps where legally permissible. / Publicly report progress on compliance with this standard for all palm products. / Use credible third-party verification or certification of environmental and social performance. [...] Palm kernels are sourced from very wide catchment areas, may be transported across long distances from source, and may be passed through numerous traders before being processed. This complex supply chain presents a significant challenge for traceability. Fonterra recognises this challenge and will take this into consideration when verifying plans and demonstrated progress of suppliers."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Indirect suppliers

            What is the rationale for any exclusions?: Smallholders are not included in this commitment
            "Transparency and Traceability [...] Suppliers of palm products must commit to: Be able to trace all products to mills. / Have time-bound plans in place and demonstrate meaningful progress towards traceability of all products to plantation, with an aim of full traceability to plantation by 2018 (excluding smallholders) / Make available maps and coordinates of their operations, including all owned and third party supplier mills and refineries, and concession maps where legally permissible. / Publicly report progress on compliance with this standard for all palm products. / Use credible third-party verification or certification of environmental and social performance. [...] Palm kernels are sourced from very wide catchment areas, may be transported across long distances from source, and may be passed through numerous traders before being processed. This complex supply chain presents a significant challenge for traceability. Fonterra recognises this challenge and will take this into consideration when verifying plans and demonstrated progress of suppliers."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: Fonterra will monitor suppliers annually using credible third-party assessors to identify any areas of non-compliance with this standard.
            "Transparency and Traceability [...] Suppliers of palm products must commit to: Be able to trace all products to mills. / Have time-bound plans in place and demonstrate meaningful progress towards traceability of all products to plantation, with an aim of full traceability to plantation by 2018 (excluding smallholders) / Make available maps and coordinates of their operations, including all owned and third party supplier mills and refineries, and concession maps where legally permissible. / Publicly report progress on compliance with this standard for all palm products. / Use credible third-party verification or certification of environmental and social performance. [...] Palm kernels are sourced from very wide catchment areas, may be transported across long distances from source, and may be passed through numerous traders before being processed. This complex supply chain presents a significant challenge for traceability. Fonterra recognises this challenge and will take this into consideration when verifying plans and demonstrated progress of suppliers."
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: Current
            "Transparency and Traceability [...] Suppliers of palm products must commit to: Be able to trace all products to mills. / Have time-bound plans in place and demonstrate meaningful progress towards traceability of all products to plantation, with an aim of full traceability to plantation by 2018 (excluding smallholders) / Make available maps and coordinates of their operations, including all owned and third party supplier mills and refineries, and concession maps where legally permissible. / Publicly report progress on compliance with this standard for all palm products. / Use credible third-party verification or certification of environmental and social performance. [...] Palm kernels are sourced from very wide catchment areas, may be transported across long distances from source, and may be passed through numerous traders before being processed. This complex supply chain presents a significant challenge for traceability. Fonterra recognises this challenge and will take this into consideration when verifying plans and demonstrated progress of suppliers."
      • Associated Human Rights Abuses
        8/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Other workers' rights commitments: Living wage

          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Not specified
          "We expect our suppliers to support the ethical standards set out in this code of practice regarding workplace health and safety, environment, fair pay and conditions, and economic sustainability. Our suppliers must commit to complying with the following requirements, which are drawn from the International Labour Organisation (ILO) and Ethical Trading Initiative (ETI). These are minimum standards based on the principles of the United Nations Universal declaration of Human Rights.[...] Freely chosen employment - Suppliers shall not make use of forced or bonded labour. By right, labour should be freely given and employees should be free to leave in accordance with established rules. Child labour - Suppliers shall not employ children in violation of conventions 138 and 182 of the International Labour Organization. • Discrimination – Supplier shall not discriminate in any manner on the basis of race, ethnic background, age, religion, gender, sexual orientation or disability. Freedom of association - Suppliers shall respect the right of employees to be represented by trade unions and other bona fide representatives of employees, and engage in constructive negotiations with such representatives with a view to reaching agreements on employment conditions."
        • Inclusion of small-scale farmers
          Yes
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: Not specified

          What is the nature of that support?: Education and training, Economic
          "All suppliers of palm products within Fonterra’s supply chain must be publically committed to policies that give equivalent effect to “No Deforestation, No Peatland Development, and No Exploitation” and have business processes in place to enact these commitments. 3.2 All suppliers of palm products to Fonterra must commit to consider and account for the impacts of their activities on the community and the environment, and exercise their influence with others within their own supply chains towards compliance with this standard. All suppliers must commit to: [...] Work with smallholders within mill catchment areas to encourage adoption of good environmental management practices, improve productivity, and develop fair business arrangements."
        • Gender equality in the supply chain
          Commitment to address the inclusion of women in commodity supply chains
          1/2
          Gender equality in the supply chain
          Commitment to address the inclusion of women in commodity supply chains
          1/2
          "ensure the inclusion of women in plantation with a specific focus on engaging in challenges currently faced by women (Equal pay for equal work, equal access to information and resources)"
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Not specified
          "All suppliers must commit to: [...] Recognise community land rights through Free, Prior and Informed Consent (FPIC) and participatory mapping. [...] Free Prior and Informed Consent (FPIC): The principle that a community has the right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use."
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        14/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Fonterra’s global sustainability program is based on a three-step approach: 1. Suppliers acknowledge Fonterra’s Supplier Sustainability Code of Practice and the need to align with it. 2. Based on the risk and the total spend, a selected number of suppliers are requested to complete a selfassessment questionnaire. 3. Audits may be conducted. The audit may be undertaken as part of the regular Approved Supplier Programme of audits or may be a separate sustainability audit. The main goal of the audit is to build a sustainable relationship with our supplier. These audits may result in the development and implementation of jointly agreed improvement plans. [...] Regulations - Supplier should operate in full compliance with international, national and local laws and regulations applicable to their business operations, and obtain all necessary permits. Local industry standards should prevail when more stringent than the local legal requirements"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          What product types/sectors is this in?: dairy

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: not specified

          Total volume: 27,487 tonnes

          Reporting certified/compliant volume: 71%

          Reporting non-certified/non-compliant volume: 0% Unknown
          "During the 2020 calendar year, we purchased 27,487 tonnes of palm-related products as an ingredient with 71% RSPO certified as segregated supply and 22% certified as mass balance. While we missed our original deadline of 2018, we made good progress in CY2020 and expect that to continue. [...] 71% of purchased palm oil is now certified as ‘segregated supply’ from credible organisations [...] We missed our original target date, but we have continued to make good progress during CY2020. In addition to the 71% ‘segregated supply’, 22% was certified by mass balance and the remaining 7% was certified using RSPO credits. By volume, 96% of all palm oil being purchased by our New Zealand business and 100% of all palm oil being purchased by our Australian business is certified as segregated supply"
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: action plans

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          "Fonterra’s global sustainability program is based on a three-step approach: 1. Suppliers acknowledge Fonterra’s Supplier Sustainability Code of Practice and the need to align with it. 2. Based on the risk and the total spend, a selected number of suppliers are requested to complete a selfassessment questionnaire. 3. Audits may be conducted. The audit may be undertaken as part of the regular Approved Supplier Programme of audits or may be a separate sustainability audit. The main goal of the audit is to build a sustainable relationship with our supplier. These audits may result in the development and implementation of jointly agreed improvement plans. [...] We expect our suppliers to support the ethical standards set out in this code of practice regarding workplace health and safety, environment, fair pay and conditions, and economic sustainability. Our suppliers must commit to complying with the following requirements, which are drawn from the International Labour Organisation (ILO) and Ethical Trading Initiative (ETI). These are minimum standards based on the principles of the United Nations Universal declaration of Human Rights"
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          Yes, report direct suppliers
          2/4
          Downstream: Reporting suppliers
          Yes, report direct suppliers
          2/4
          What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA

          For what percent of suppliers' production areas are point locations disclosed?: NA

          For what percent of smallholder suppliers is location disclosed?: NA

          From what country(ies) does the company source material?: NA

          From what sub-national jurisdiction(s) does the company source material?: NA

          For what percent is no location data disclosed?: NA

          What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA

          For what percent are boundaries disclosed?: NA

          Does the company disclose location of suppliers' production areas or primary processing sites?: No
          Fonterra have an active link to palm oil mills supplying palm oil by Wilmar. It's clear they use other suppliers but not who these are "Early in FY21 we divested of our interest in Agrifeeds, a joint venture between Fonterra and Wilmar. The Agrifeeds joint venture was formed in 2008 to secure the competitive supply of palm kernel expeller (PKE) and other imported feed ingredients for New Zealand farmers. As part of our ongoing review of investments it was concluded that a competitive animal feeds market had been established and investment in Agrifeeds was no longer required to ensure farmers have access to responsibly sourced and competitively priced feed."
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          How frequently is compliance assessed?: Annually

          How is compliance monitored?: Certification; Internal monitoring and verification systems

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          What percentage of the company's supply chain volume does that represent?: 100%

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
          "Monitoring and Reporting 3.6 Fonterra will monitor suppliers annually using credible third-party assessors to identify any areas of non-compliance with this standard. 3.7 Fonterra will disclose use of palm products and performance of palm products suppliers in relation to this standard, including steps taken to address non-compliance with this standard"
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Suspend suppliers, engage to bring into compliance, and reintroduce to the supply chain
          2/2
          Downstream: Engagement with non-compliant suppliers
          Suspend suppliers, engage to bring into compliance, and reintroduce to the supply chain
          2/2
          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: NA

          What criteria does the policy specify for blacklisting or exclusion?: NA
          "Fonterra will work to influence partners across the dairy industry, including other suppliers of palm kernel expeller to its farmer suppliers, to comply with this standard to the fullest extent relevant to them. 3.9 Fonterra will continue to work with partners to identify new and innovative opportunities to improve the sustainability of palm products within its supply chain, including prioritising sourcing from those organisations demonstrating an active commitment to sustainability [...] Working with non-compliant suppliers to develop time-bound action plans; and compensatory restoration requirements where appropriate; b. Suspending suppliers that found to be non-compliant with agreed action plans"
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper *
      8/90
      • Commitment Strength
        0/17
        • Commodity-specific deforestation commitment
          0/9.5
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        3/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Not specified

          Other workers' rights commitments: Living wage
          "We expect our suppliers to support the ethical standards set out in this code of practice regarding workplace health and safety, environment, fair pay and conditions, and economic sustainability. Our suppliers must commit to complying with the following requirements, which are drawn from the International Labour Organisation (ILO) and Ethical Trading Initiative (ETI). These are minimum standards based on the principles of the United Nations Universal declaration of Human Rights.[...] Freely chosen employment - Suppliers shall not make use of forced or bonded labour. By right, labour should be freely given and employees should be free to leave in accordance with established rules. Child labour - Suppliers shall not employ children in violation of conventions 138 and 182 of the International Labour Organization. • Discrimination – Supplier shall not discriminate in any manner on the basis of race, ethnic background, age, religion, gender, sexual orientation or disability. Freedom of association - Suppliers shall respect the right of employees to be represented by trade unions and other bona fide representatives of employees, and engage in constructive negotiations with such representatives with a view to reaching agreements on employment conditions."
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          No
          0/3
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        5/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Fonterra’s global sustainability program is based on a three-step approach: 1. Suppliers acknowledge Fonterra’s Supplier Sustainability Code of Practice and the need to align with it. 2. Based on the risk and the total spend, a selected number of suppliers are requested to complete a selfassessment questionnaire. 3. Audits may be conducted. The audit may be undertaken as part of the regular Approved Supplier Programme of audits or may be a separate sustainability audit. The main goal of the audit is to build a sustainable relationship with our supplier. These audits may result in the development and implementation of jointly agreed improvement plans. [...] Regulations - Supplier should operate in full compliance with international, national and local laws and regulations applicable to their business operations, and obtain all necessary permits. Local industry standards should prevail when more stringent than the local legal requirements"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What is the status of those FPIC processes?: NA

          What steps has the company taken to implement their labour rights commitment?: NA

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
          "Fonterra’s global sustainability program is based on a three-step approach: 1. Suppliers acknowledge Fonterra’s Supplier Sustainability Code of Practice and the need to align with it. 2. Based on the risk and the total spend, a selected number of suppliers are requested to complete a selfassessment questionnaire. 3. Audits may be conducted. The audit may be undertaken as part of the regular Approved Supplier Programme of audits or may be a separate sustainability audit. The main goal of the audit is to build a sustainable relationship with our supplier. These audits may result in the development and implementation of jointly agreed improvement plans. [...] We expect our suppliers to support the ethical standards set out in this code of practice regarding workplace health and safety, environment, fair pay and conditions, and economic sustainability. Our suppliers must commit to complying with the following requirements, which are drawn from the International Labour Organisation (ILO) and Ethical Trading Initiative (ETI). These are minimum standards based on the principles of the United Nations Universal declaration of Human Rights"
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          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
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    3/17
    Avg. score
  • Implementation and Reporting
    7/56
    Avg. score
  • Associated Human Rights Abuses
    4/17
    Avg. score

Profile

Fonterra is a New Zealand-based cooperative of 10,000 farmers focused on developing a sustainable business model. They were founded in 2001 and currently has a revenue of $14.49 billion. Their portfolio includes well-known brands such as Anchor, Anmum, Anlene, NZMP and Farm Source. Fonterra has been selected as a powerbroker for soy, and is also assessed for palm oil and paper/pulp in packaging.

Sector
Industry sector 
Agricultural Products, Industrial Conglomerates
Segments
Manufacturer, Retailer
HQ
HQ 
New Zealand
Company Type
Company type 
CO
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Anchor, Anchor Boneeto, Anchor Fernleaf, Anchor Food Professionals, Calciyum, Chesdale, NZMP, Anlene, Anmum, New Zealand Farm Source, De Winkel, Fresh 'n Fruity, Kapiti, Mainland, Mammoth, Perfect Italiano, Piako, Primo, Symbio

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.