Arla Foods, one of the leading dairy cooperatives, has recently contested the findings of a 100-page report that scrutinizes its sustainability targets and initiatives. The report, published by The Changing Markets Foundation in collaboration with Greenpeace Nordic, alleges that Arla operates under “undemocratic structures” that favor larger, more industrial farms and criticizes its lack of transparency regarding methane emissions. According to Arla, the report contains “multiple inaccuracies” and does not accurately reflect its science-based targets or the cooperative’s commitment to sustainability.
### Overview of the Report’s Claims
The Changing Markets report asserts that Arla’s current practices could save up to 15% in emissions per kilogram of milk through biogas production. However, Arla disputes this claim, stating that the figure is not backed by credible evidence. The report also highlights the challenges posed by Arla’s Arlagarden initiative, which aims to standardize animal welfare and milk production measures across the cooperative. Critics argue that the initiative often requires substantial investments in infrastructure, thereby disproportionately impacting smaller farmers.
Moreover, the report points to Arla’s FarmAhead sustainability incentive tool, designed to collect farm-specific emissions data through an online questionnaire. Critics contend that this tool encourages farmers to intensify production rather than prioritize emission reductions, labeling it as “weak” in terms of its effectiveness in fostering genuine sustainability practices.
In response, an Arla spokesperson emphasized the cooperative’s commitment to transparency and sustainability: “We have taken the time to review the report and unfortunately it does contain multiple inaccuracies. It is therefore not a true reflection of Arla’s science-based targets, our farmers’ actions to reduce emissions, and our commitment to producing more sustainable dairy.”
### Methane Emissions and Sustainability Goals
The report also delves into Arla’s estimated methane emissions, which the cooperative claims account for 43% of its total emissions. However, it does not report these emissions separately. According to the Changing Markets report, Arla’s methane emissions—when assessed on a 100-year global warming basis—amount to approximately 13.4 million tonnes of CO2 equivalent per year, representing 56% of all greenhouse gas emissions attributed to the cooperative.
Arla calculates its total greenhouse gas emissions by converting various gases into carbon dioxide equivalents (CO2e), with Scope 3 emissions—comprising farm emissions and the emissions produced during dairy production—making up a significant portion of its overall emissions profile. In 2024, Arla reported a 1% reduction in Scope 3 emissions compared to a baseline year of 2015 and is targeting a 30% reduction by 2030, measured in intensity terms (i.e., emissions per kilogram of milk).
However, Changing Markets argues that Arla has only achieved a 25% reduction in Scope 1 and 2 emissions since 2015, and an 8.4% reduction in Scope 3 emissions, with an intensity reduction of just 6.6% from 2017 to 2023. This trajectory suggests that Arla may only achieve a total reduction of approximately 13.2% by 2030, falling short of its stated goal.
### Critique of Net-Zero Goals
The report further critiques Arla’s net-zero goals, stating that they only align with one of nine United Nations recommendations regarding sustainability practices. While Arla has taken some steps towards sustainability, such as diversifying its product range to include plant-based alternatives, these efforts are seen as insufficient. The report notes that Arla’s sales of plant-based products, such as its milk alternative Jord, only account for 0.3% of its total UK revenue, indicating a lack of substantial engagement in this area.
Alma Castrejon-Davila, a senior campaigner at Changing Markets Foundation, expressed concern over Arla’s sustainability narrative, stating, “Arla has been selling us a fairytale for far too long. This report exposes the stark contradiction between Arla’s reputation as the poster child of dairy sustainability and the reality of its failure to develop robust plans to reduce its emissions—particularly its methane emissions.”
She further urged Arla to establish a more ambitious methane reduction target, advocating for a minimum 30% decrease by 2030 and an increased focus on plant-based options. “Only by implementing these measures will the dairy giant be able to reduce its emissions at the pace and scale that are needed,” she asserted.
### Conclusion
As the scrutiny of Arla Foods continues, the cooperative faces pressure not only to clarify its sustainability claims but also to substantively enhance its efforts in reducing greenhouse gas emissions. In an era where climate change concerns are at the forefront of public discourse, the dairy industry, including major players like Arla, will need to navigate the complexities of sustainability while addressing the criticisms highlighted in the Changing Markets report. The challenge will be to transform ambitious sustainability targets into measurable actions that effectively contribute to a more sustainable future for the dairy sector.
