Arla ties climate to financial performance

By Jim Cornall contact

- Last updated on GMT

Arla is set on becoming carbon net zero by 2050.
Arla is set on becoming carbon net zero by 2050.

Related tags: Arla, Sustainability, Carbon dioxide emissions

In 2019, Arla decided to have its environmental, social and governance performance (ESG) externally verified. The company said this demonstrates ESG performance and financial performance are equally important.

“We have very high ambitions for our ESG performance, such as our science-based climate target of reducing our CO2​e emissions by 30% in 2030 and becoming carbon net zero by 2050. To create this amount of impact, we need to know that the data we’re working with is correct. In order to constantly improve our ESG performance, external auditing is a strong tool,”​ chief financial officer at Arla, Torben Dahl Nyholm, said.

 “Furthermore, it is an absolute necessity for us that the data and figures we share publicly are solid and trustworthy. There is a growing demand for transparency from our customers, consumers and financial institutions, and our sustainability actions and thus our ability to account for them are key in building and maintaining trust in Arla as a business and in our farmer owners.”

In the first year of external auditing, Arla’s ESG figures received limited assurance from external auditor Ernest & Young (EY). In 2020, Arla aimed at further improving the ESG data quality; an effort guided by EY’s requirements for reasonable assurance; the highest possible assurance level for non-financial data, which Arla managed to receive on most of its ESG figures this year.

“I am very pleased with both our results and our way of reporting them,”​ Nyholm said.

The figures on CO2​e emissions from farms again received limited assurance in 2020, and Arla said it continues to improve standardization in reporting across farms, aiming at achieving reasonable assurance on all ESG figures.

“As a responsible and trusted brand, full transparency and accountability across our entire value chain continue to be a strong guideline for us and the only way to move forward. Our farmers are working hard to produce high quality milk with as low environmental impact as possible while also providing solid, externally verified data on their farming,”​ Nyholm added.




Related news


Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us


View more