Lakeland Dairies launches ESG/sustainability strategy

The strategy, entitled Pathway to a Better Future, is aimed at significantly reducing emissions at farm and factory level while ensuring that Lakeland Dairies continues to be a world-class producer of dairy products which are consumed in over 100 markets worldwide.

The strategy focusses on six Environmental, Social and Governance (ESG) Pillars – Climate Action, Sustainable Farms, Supply Chains, People and Communities, Sustainable Operations and Responsible Business.

Key targets contained in the strategy include:

* A 30% reduction in Scope 1 and Scope 2 emissions by 2030.

* A 30% reduction in carbon footprint of milk production by 2030.

* 100% of plastic packaging will be reusable, recyclable and compostable by 2030.

* A 15% reduction in water usage by 2025.

* A clear commitment to Diversity and Inclusion.

* Zero waste to landfill by 2026.

* A Net Zero commitment working with the SBTi (Science Based Targets Initiative).

* Rollout of Farm Sustainability Programme in 2023.

The SBTi targets provide companies with a pathway to reduce emissions in line with the Paris Agreement goals to get to Net Zero.

Lakeland Dairies, which has 3,200 farm families and annual turnover of over €2bn, processes some 2bn litres of milk on sites in Ireland as well as Northern Ireland.

Central to the strategy is a policy of rewarding farmers for taking positive environmental actions on their farms. Later this year, Lakeland Dairies will announce a Farm Sustainability Programme which will deliver a Farm Sustainability Incentive Payment to support farm families on the collective sustainability journey.

Commenting on the launch of the strategy, Chairperson of Lakeland Dairies Niall Matthews said:“I am delighted to publish our new Sustainability Strategy to 2030. Pathway to a Better Future forming a key part of the ongoing and future evolution of Lakeland Dairies – a co-operative with a heritage of 130 years of excellence in dairying. We are making a clear and unambiguous commitment to continue on the pathway of reducing emissions and protecting the co-op and our environment for another 130 years and more.

“Lakeland Dairies’ farm families have already played a huge role in tackling climate change and improving our sustainability credentials. Largescale adoption of low-emission slurry spreading (LESS) technology, efficient management of nutrients, using the latest breeding advancements and leadership in the uptake of clover grasses and multi-species swards (MSS) means that Lakeland Dairies suppliers are well-placed to meet the future with optimism.”

Colin Kelly, Group CEO of Lakeland Dairies: “Through Pathway to a Better Future, we're shaping a future where sustainability and ESG are not just goals but a way of life. The world and environment in which we are operating has changed considerably in recent times with environmental demands now greater than ever at farm and factory level. This trend will continue, and we are well prepared for the challenges and opportunities that will present themselves in this new chapter of the co-op’s history.

“Our farm families are true pioneers of sustainability. They have adopted new technologies and practices to make their businesses and farms more sustainable – futureproofing their operations for the next generation. Our people, our staff and our communities are at the centre of this strategy. We are making clear commitments on Diversity and Inclusion, targeting a zero-harm workplace and we pledge to continue to be a force for positivity in the areas in which we operate.”

Lakeland Dairies’ Group Head of Sustainability Rory Farrell added: “Climate action is critically important for us as a business and is also an imperative for our customers and consumers across the world who we serve. Irish dairying is already hugely sustainable, having one of the lowest carbon footprints in the world. Having a verifiable and credible sustainability strategy is also crucial in maintaining our Social Licence to operate.

“As we address the wider ESG agenda we have provided a pathway for action through our supply chain and in our operations while also addressing our commitment to our people and surrounding communities. We will continue always to operate as a responsible business.”