Climate Change Data

Environmental Metrics

ESG Focus Areas

• FrieslandCampina in society
• Nutrition & Health
• Care for the environment
• Dedicated employees
• Sustainable agriculture

Environmental Achievements

• 7% of electricity in the Netherlands purchased renewably in 2009, aiming for 15% in 2010.
• Reduced potable water consumption by 150,000 m³ at FrieslandCampina DOMO's Bedum plant.
• FrieslandCampina Indonesia started work on a wastewater recycling system reducing groundwater consumption by 50%.

Social Achievements

• Launched the NutriBus in Malaysia, reaching over 18,500 visitors with nutrition education.
• Provided 4,500 study grants and 4,000 donations through the Den Dom Dom scholarship fund in Vietnam.
• Implemented the 'Campina at School' program in the Netherlands and Germany.

Governance Achievements

• Developed a new code of conduct and whistleblower procedure (implemented in 2010).

Climate Goals & Targets

Environmental Challenges

• Reducing sugar and salt content in products while maintaining consumer acceptance.
• Ensuring sustainable sourcing of raw materials like soy and cocoa.
• Balancing environmental targets with economic performance.

Mitigation Strategies

• Gradual reduction of sugar and salt in products to minimize taste changes.
• Participation in initiatives like the Sustainable Soy Initiative and RTRS.
• Implementation of the Foqus quality system for food safety, environmental protection, and occupational health.

Supply Chain Management

Responsible Procurement

• Business Practices for Suppliers (implemented in 2010-2011), based on code of conduct and covering human rights, food safety, and sustainable business practice.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Level B)

Certifications: ISO 14001 (at many locations)

Environmental Metrics

ESG Focus Areas

• Health & Nutrition
• Responsible Dairy Farming
• Sustainable Supply Chain
• Dairy Development Asia and Africa

Environmental Achievements

• 22.5% of electricity requirements covered via sustainable power purchase in 2010
• Reduced salt content in cheese products by around 500 tonnes
• Reduced sugar content in various products (Vifit, Fristi, Mona puddings, Yoki drink, DubbelFrisss, GoedeMorgen)

Social Achievements

• Implementation of new Code of Conduct
• Implementation of new Whistle-blower’s Regulation
• Implementation of new Business Practices for Suppliers
• Development of programs to reduce sugar and fat in consumer products
• Awarded the Aanmoediging Jaarprijs Voedingscentrum 2010
• Awarded the P&O Proffie Award 2010 for best HR policy in the Netherlands
• 100,000 visitors to Open Farm Days
• 2,000 employees in Vietnam
• Dairy Development Program in Vietnam, Malaysia, Thailand, Indonesia and Nigeria

Governance Achievements

• Implementation of Performance Management System
• Annual reporting to the Supervisory Board’s Audit Committee on Code of Conduct compliance
• Establishment of a Corporate Integrity Committee

Climate Goals & Targets

Environmental Challenges

• Insufficient responsibly produced cocoa to meet Chocomel demands
• Need to reduce work-related accidents
• Need to reduce and control absenteeism due to illness

Mitigation Strategies

• Partnership with UTZ CERTIFIED for sustainable cocoa sourcing
• Global training program for safety awareness
• Absenteeism management training for managers, focus on open communication and timely communication, trust, teamwork and commitment

Supply Chain Management

Responsible Procurement

• Sustainable palm oil
• UTZ CERTIFIED cocoa
• FSC-certified packaging
• Business Practices for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Level B)

Sustainable Products & Innovation

• Optimel and Optiwell (low-fat, no added sugar)
• Milner cheeses (reduced salt and fat)
• Slankie cheeses (reduced fat and salt)
• Chocomel (socially responsible cocoa)

Awards & Recognition

• Aanmoediging Jaarprijs Voedingscentrum 2010
• P&O Proffie Award 2010

Environmental Metrics

ESG Focus Areas

• Nutrition & Health
• Efficient and sustainable production chains
• Dairy development in Asia and Africa
• Sustainable dairy farming

Environmental Achievements

• Reduced sugar in Consumer Products Europe’s products by 700,000 kg
• 14% of electricity used was sustainably generated
• All palm oil purchased was sustainably produced
• Switched to sustainably produced cardboard for all drinks cartons in the Benelux

Social Achievements

• Launched Foqus Planet, a sustainable dairy farming program with member dairy farmers
• Signed a five-year cooperation agreement with the Dutch Red Cross for emergency aid
• Dutch Lady Blue Brigade volunteered over 3,000 hours on social projects in Malaysia
• Improved labelling system to help consumers make healthy choices

Governance Achievements

• Revised Code of Conduct implemented
• Whistle-blower’s Regulation implemented
• Supplier standards (Business Practices for Suppliers) further implemented
• ISO 26000 declaration received

Climate Goals & Targets

Environmental Challenges

• Accidents at production facilities resulting in two deaths
• Balancing ideal product composition with acceptable price levels
• Meeting the increasing demand for sustainable agricultural raw materials
• Balancing the success of the dairy development program in Asia and Africa with potential reduction in sales opportunities for member dairy farmers in Europe

Mitigation Strategies

• Ongoing worldwide safety awareness program for employees
• Gradual reduction of sugar, salt, and fat in products with improved information
• Cooperation with social organizations to promote sustainable agricultural raw materials
• Focus on self-sufficiency in Asia and Africa alongside growing market demand

Supply Chain Management

Responsible Procurement

• Sustainable purchasing of agricultural raw materials (cocoa, palm oil, soy)
• Use of FSC-certified packaging
• Business Practices for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Level B (self-declared)

Certifications: ISO 26000

Third-party Assurance: Lloyds Register (for ISO 26000 implementation)

Sustainable Products & Innovation

• Meadow milk products (Campina meadow milk, Milner meadow cheese, Vifit and Optimel made with meadow milk)

Awards & Recognition

• Bronze prize from Verbraucher-Initiative (Germany) for Landliebe's sustainability performance

Environmental Metrics

ESG Focus Areas

• Nutrition & health
• Efficient and sustainable production chains
• Dairy development in Asia and Africa
• Sustainable dairy farming

Environmental Achievements

• 3.9% improvement in energy efficiency compared with 2011
• 3.5% improvement in the efficiency of water consumption compared with 2011
• Nearly 100% sustainable palm oil
• 72% of European purchases of beverage cartons are now sustainable

Social Achievements

• Exceeded the goal of reaching one million children with effective information on healthy nutrition and a healthy lifestyle
• Partnership with Agriterra to implement the Dairy Development Programme, supporting local dairy farmers in Asia and Africa
• FrieslandCampina’s CSR efforts led to its selection as a preferred supplier by Unilever
• Successful start of the Foqus planet programme for sustainable dairy farming

Governance Achievements

• CSR policy embedded in strong foundations
• Transparency regarding CSR (33rd in the 2012 transparency benchmark)
• Code of Conduct renewed and compliance monitored

Climate Goals & Targets

Environmental Challenges

• Different attitudes to CSR between various regions (Europe vs. Asia and Africa)
• Need to involve employees and member dairy farmers more closely in sustainability
• Ensuring CSR becomes a self-evident part of daily activities

Mitigation Strategies

• More substantive translation of CSR strategy to local situations
• Investment in training and instruction, including sustainability in leadership development programs
• Dual approach: top-down structure and bottom-up Green Teams

Supply Chain Management

Responsible Procurement

• Sustainable palm oil
• Sustainable cocoa
• Sustainable packaging
• Sustainable soy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Transparency Benchmark

Sustainable Products & Innovation

• Products with lower sugar, salt, and fat content
• Kievit products with RSPO-certified palm oil
• Mona’s chocolate desserts with UTZ Certified cocoa
• Chocomel chocolate milk with UTZ Certified cocoa

Awards & Recognition

• Task Force Sustainable Palm Oil Award
• Productschap MVO-pluim 2012
• Award from Indonesian government for environmental policy
• TPM Excellence Award
• Deli XL CSR award

Environmental Metrics

ESG Focus Areas

• Sustainability
• Safety
• Dairy farming development
• Nutrition & health

Environmental Achievements

• Energy and water usage per 1,000 kilos of dairy products produced reduced by 3.3 percent and 2.3 percent respectively; 60 percent of the electricity FrieslandCampina uses at 35 facilities in the Netherlands is green electricity
• Achieved 80 percent reduction compared with 2011 of the number of job-related accidents resulting in sick leave per 200,000 hours worked

Social Achievements

• Improved results from the Consumer Products Asia, Ingredients and Cheese, Butter & Milkpowder business groups; Major improvements to safety and safety awareness; Further implementation of sustainability programmes; Dairy Development Programme in Indonesia, Thailand and Malaysia; Contribution towards aid programmes focused on nutrient-rich food for the Philippines and the Middle East and the Farmer2Farmer support programme for small farmers in developing countries; Celebration of 50 years Dutch Lady Malaysia; Friso introduced in Indonesia

Governance Achievements

• Implementation of various changes in the organisation to achieve a more streamlined organisation; Repaid stock exchange listed perpetual notes; Acquisition of Zijerveld and Veldhuyzen B.V., and G. den Hollander Holding B.V. strengthen positions in cheese; Repurchase of Friso infant nutrition brand name in the Benelux; FrieslandCampina acquires 7.5 percent interest in Synlait Milk Ltd. in New Zealand

Climate Goals & Targets

Environmental Challenges

• Persisting economic crisis in Europe leading to declining consumer spending and pressure on volumes and margins; Rapid growth in emerging countries slowing down; Markets remaining volatile; Poor economic market conditions in Europe led to a further decline in dairy product consumption; Increasing competition from local dairy companies; Unrest in Egypt, Libya and Syria affecting sales to the Middle East and Africa; Natural disasters in the Philippines affecting operations; Higher guaranteed price for raw milk could not be passed on to the market quickly enough

Mitigation Strategies

• Focus on costs by reducing complexity, speeding up decision-making processes and making more use of its scale; Restructuring in Europe to improve position; Efficiency improvements in production and cost management; Cost and efficiency programmes; Focus on Landliebe brand and cost reductions in Germany; Transfer of Frico brand cheese sales to Russia; Improved distribution in Indonesia and Vietnam; Investments in capacity increases in several production facilities; Further improvements to quality systems, safety and safety awareness; Achievement of synergy with acquired companies and further roll-out of the cost leadership programme; Achieving cost leadership for milk powder and butter; Targeted investments in advertising and new product introductions; Further improvements to the quality systems, safety and safety awareness on the shop floor

Supply Chain Management

Responsible Procurement

• Purchase of sustainable raw materials, RSPO palm oil, RTRS soya, UTZ cocoa and FSC packaging materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: KPMG Accountants N.V.

Sustainable Products & Innovation

• Optimel Pure and Optimel Greek Yoghurt; Frico Landkaas; Dutch Lady Complete

Awards & Recognition

• Alaska Milk Corporation won the Agora Award for ‘Marketing Company of the Year’

Environmental Metrics

ESG Focus Areas

• Nutrition & health
• Dairy development in Asia and Africa
• Efficient and sustainable production chains
• Sustainable dairy farming

Environmental Achievements

• Reduced CO2 emissions through the use of renewable energy
• 91% of electricity used in Dutch production facilities was sustainably generated
• 100% sustainable palm oil based on RSPO criteria
• 100% sustainable cocoa based on UTZ Certificate criteria
• 100% sustainable soy oil and soy co-products based on RTRS criteria
• 67% of waste recycled or reused

Social Achievements

• Launched fundraising campaign for 25,000 Indonesian school children
• Partnership with Dutch Red Cross to combat hunger and malnutrition
• Drink.Move.BeStrong campaign reached 68 million people in Southeast Asia
• Increased percentage of women in senior management positions to 19%

Governance Achievements

• Implemented Foqus planet quality and sustainability system for member dairy farmers
• Developed a Code of Conduct and Whistle-blowers’ regulation
• Externally evaluated implementation of ISO 26000 criteria

Climate Goals & Targets

Environmental Challenges

• Achieving climate-neutral growth throughout the chain
• Maintaining meadow grazing at 81% of member dairy farms
• Reducing antibiotic use to 1999 levels
• Unexpected increase in milk production due to lifting of milk quota
• Balancing sugar reduction with consumer preferences

Mitigation Strategies

• Increased meadow grazing payment per 100 kilos of milk
• Implemented Cow Compass management tool
• Information programme on responsible use of animal medicines
• Investment in technological innovations for energy and water savings
• Step-by-step approach to sugar reduction

Supply Chain Management

Responsible Procurement

• Purchase of sustainably produced agricultural raw materials (soy, palm oil, cocoa, paper, tropical fruit, sugar)
• Use of internationally recognized standards (RSPO, RTRS, UTZ Certified)
• Collaboration with industry initiatives (SAI Platform)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core, Transparency Benchmark

Certifications: ISO 14001, OHSAS 18001, Various HACCP certifications

Awards & Recognition

• King Willem I Prize
• Best Sustainable Business Practice Award in Asia Pacific

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Sustainable Sourcing
• Sustainable Packaging
• Farmer Livelihoods

Environmental Achievements

• Reduced scope 1 and 2 emissions by 30% from 2015 to 2020.
• 100% renewable electricity consumption in 2021, with 50% from member dairy farmers.
• 90% of packaging recyclable in 2021.

Social Achievements

• Launched Biodiversity Monitor in partnership with WWF and Rabobank.
• Provided carbon footprint calculation model to all member dairy farmers.
• Implemented Foqus planet quality and sustainability program for member dairy farms.
• Dairy Development programs supporting farmers in developing countries.

Governance Achievements

• Commitment to Science Based Targets initiative (SBTi).
• Integrated annual reporting following GRI standards.
• External assurance on greenhouse gas emissions since 2015.

Climate Goals & Targets

Environmental Challenges

• Reducing scope 3 emissions (especially from member dairy farms and other supply chain actors).
• Improving data quality for scope 3 emissions.
• Ensuring sustainable practices across global supply chains.

Mitigation Strategies

• Developing category-specific reduction strategies for scope 3 emissions.
• Collaborating with suppliers to reduce emissions.
• Investing in technology and programs to support member dairy farmers in reducing emissions.
• Implementing Dairy Development programs to improve sustainability in developing countries.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with suppliers to reduce emissions.
• Sourcing sustainable raw materials (e.g., RSPO palm oil, RTRS soy).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards, Greenhouse Gas Protocol, SBTi

Certifications: Null

Third-party Assurance: External auditor for limited assurance since 2015

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through emission reductions, sustainable sourcing, farmer support, and biodiversity improvements.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Better nutrition
• A good living for our farmers
• Now and for generations to come

Environmental Achievements

• Reduced greenhouse gas emissions from production and transport by 4.0% to 925 kt CO2 equivalent
• Increased green electricity in production facilities to 78% of total consumption
• Reused or recycled 71% of production waste

Social Achievements

• Trained 18,752 farmers via local Dairy Development Programmes
• Reduced accidents resulting in sick leave by 50%
• Launched Drink.Move.BeStrong campaign in South-East Asia

Governance Achievements

• Renewed Compass code of good business conduct
• Implemented Golden Quality Rules for quality assurance

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions at farms due to increased milk production
• Increased energy consumption due to increased milk supply and production of energy-intensive products
• Need to further reduce phosphate production to meet EU environmental requirements

Mitigation Strategies

• Jumpstart cooperative for mono-manure fermentation to reduce greenhouse gas emissions
• Initiatives to improve energy efficiency in production facilities
• Phosphate reduction package of measures including Feed Track Agreements and Cessation of Farming Scheme

Supply Chain Management

Supplier Audits: 450/year

Responsible Procurement

• Sustainable procurement of raw materials; use of internationally recognised responsible production standards; collaboration with suppliers on sustainability plans.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: FSSC 22000

Third-party Assurance: PricewaterhouseCoopers Accountants N.V.

UN Sustainable Development Goals

• SDG 2, SDG 3, SDG 7, SDG 8, SDG 12, SDG 17

The report details how FrieslandCampina's initiatives contribute to these goals.

Sustainable Products & Innovation

• New infant formula ingredient

Awards & Recognition

• Gold standard Award for Regional Corporate Citizenship for Drink.Move.BeStrong campaign

Environmental Metrics

ESG Focus Areas

• Better nutrition, affordable for everyone
• Better living for farmers
• Better climate, carbon-neutral future
• Better nature, improving biodiversity
• Better packaging, 100% circular
• Better sourcing, 100% responsible

Environmental Achievements

• Greenhouse gas emission production and transport decreased by 4.4% to 720 kton CO2 equivalent (2019: 753 kton CO2 equivalent)
• Greenhouse gas emissions on member dairy farms decreased by 0.2% to 12,319 kton CO2 equivalent (2019: 12,344 kton CO2 equivalent)
• Recyclable packaging increased to 87.3% (2019: 87.0%)
• Recyclable plastic increased to 28.2% (2019: 33.0%)
• Water consumption decreased by 3.0% to 4.81 m3/tonne end-product (2019: 4.96 m3/tonne end-product)
• Sustainable agricultural raw materials reached 100% (2019: 87%)
• Traceability to source (palm oil, soy, pulp & paper, cocoa) reached 91%
• Use of ‘Green Electricity’ increased to 100% (2019: 94%)
• Green electricity consumption from own chain increased to 44% (2019: 25%)

Social Achievements

• 57,534 local dairy farmers trained (DDP) (2019: 77,934)
• Percentage of women in management positions increased to 27.0% (2019: 25.9%)
• Accident ratio decreased to 0.32 (2019: 0.35)

Governance Achievements

• Implemented a legal group restructuring effective 1 January 2020 to comply with the fiscal cooperative regime
• Issued a 300 million euro perpetual hybrid subordinated debenture loan

Climate Goals & Targets

Environmental Challenges

• Corona pandemic impacting sales in Hong Kong and out-of-home channels, devaluation of local currencies, lower commodity dairy prices
• Farmers’ protests in the Netherlands
• Economic problems in Nigeria due to loss of oil-related income
• Global spike in cybercrime

Mitigation Strategies

• Accelerated implementation of strategy and cost savings
• Restructuring of business operations
• Shifting salesforce from foodservice and out-of-home to retail
• Focus on digital and e-commerce channels
• Cost reduction measures
• Established Security Operations Centre to address cyber threats
• Constructive dialogue with stakeholders regarding farmers’ concerns

Supply Chain Management

Responsible Procurement

• Sustainable procurement of agricultural raw materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Lactoferrin production expansion
• Recyclable packaging
• Paper straws

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Recyclable packaging
• Sustainable sourcing
• Animal health and welfare
• Nitrogen reduction

Environmental Achievements

• Reduced greenhouse gas emissions from production and transport (Scope 1 and 2) by 6.1% to 649 kt CO2 equivalent (2021: 691 kt)
• Reduced greenhouse gas emissions on member dairy farms (Scope 3 – member milk) by 2.5% to 10,823 kt CO2 equivalent (2021: 11,099 kt)
• Increased recyclable packaging to 91% (2021: 90%)
• Achieved 100% responsible sourcing of traceable raw materials
• 94% traceability to source (palm oil, pulp and paper, and cocoa)
• Reduced water consumption by 2.7% to 4.72 m3/tonne end-product (2021: 4.85 m3)

Social Achievements

• Increased remuneration for member dairy farmers by 47.2% to 58.69 euros per 100 kilos of supplied milk
• Launched Olper’s cheese in Pakistan
• Launched various new sustainable products (Biotis®, Friesche Vlag Barista Haver, Valess, Chocomel plant-based, Friso Natura, Debic Vegan-top, etc.)
• Completed a large-scale nutrition survey in Southeast Asia (SEANUTS II)
• Dairy Development activities supported tens of thousands of local farmers globally
• 83.8% of member dairy farms in the Netherlands practiced pasture grazing

Governance Achievements

• Published climate plan with SBTi validated 2030 targets aligned with the Paris Agreement
• Established a Sustainability Committee within the Supervisory Board
• Negotiated a new continuous credit facility (EUR 1.25 billion) linked to four sustainability performance indicators
• Implemented a new methodology for Foqus planet Sustainable development, increasing remuneration for sustainability measures on farms

Climate Goals & Targets

Environmental Challenges

• High inflation impacting consumer dairy business and inability to fully pass on cost increases
• Supply chain disruptions due to the war in Ukraine and energy crisis
• Limited availability of biofuels for production
• Uncertainty among member dairy farmers due to the nitrogen debate in the Netherlands
• Difficulty staffing job openings due to a tight labor market
• Increased ESG reporting requirements

Mitigation Strategies

• Restructuring and optimization of the production network
• Price increases to retain healthy margins
• Investments in new sustainable production facilities
• Initiated various pilots on livestock feed additives, circular barn systems, and deforestation-free soy
• Attractive recruitment campaigns and focus on employee well-being
• Initiatives to prepare for CSRD reporting obligations

Supply Chain Management

Responsible Procurement

• Sustainable and traceable sourcing of agricultural raw materials
• Collaboration with Agrifirm on deforestation-free soy
• Zero deforestation and conversion policy

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods (Pakistan)
• Extreme weather

Transition Risks

• Regulatory changes (nitrogen regulations)
• Market shifts (consumer purchasing power)

Opportunities

• Development of energy-efficient products
• Growing demand for sustainable products

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: PricewaterhouseCoopers Accountants N.V. (limited assurance)

Sustainable Products & Innovation

• Biotis® GOS-OP High Purity Prebiotic
• Friesche Vlag Barista Haver Plant-based oatmeal beverage
• Valess Crispy chicken style burger
• Olper’s kaas
• Chocomel plant-based
• Vana-SanaTM DHA & ARA
• Friso Natura
• Friso goat
• Debic Vegan-top
• Debic cream cheese

Awards & Recognition

• Best Employer Brand in Europe (Tiara Talent Acquisition awards)
• Graduates Choice Award Malaysia

Environmental Metrics

ESG Focus Areas

• Reducing greenhouse gas emissions on farms
• Sustainable farming and land use
• Reducing greenhouse gas emissions in production and transport
• Climate change adaptation
• Circular packaging and waste

Environmental Achievements

• Greenhouse gas emissions from production facilities and milk transport: 588 kt CO2 equivalent (-9.4%)
• Greenhouse gas emissions on member dairy farms: 10,359 kt CO2 equivalent (-4.3%)
• 91% of the electricity purchased by our production facilities in the Netherlands was covered by electricity generated by member dairy farmers (2022: 89%)
• 91% recyclable packaging (2022: 91%)

Social Achievements

• 75% of consumer products complied with the FrieslandCampina Global Nutritional Standards (GNS) Next Level (2025 target: 74 percent)
• 74% of the product range consists of ‘basic nutritious products for daily consumption’ and 26 percent consists of ‘indulgent products for occasional consumption’
• 16 percent of consumer products was affordable for population groups with low incomes

Governance Achievements

• Chief Sustainability Officer (CSO) joined the Executive Board on 1 October 2023
• Successfully issued a 300 million euro Schuldschein linked to ESG goals
• Signed an agreement for the issue of private loans in support of long-term financing valued at 400 million euros and USD 100 million

Climate Goals & Targets

Environmental Challenges

• Difficult market conditions and one-off restructuring costs negatively affected FrieslandCampina’s 2023 results
• Difference between the guaranteed price of member milk and market prices for commodity dairy products
• Sale of expensive stocks in a market of low prices
• Unfavourable currency translation effects
• Loss of consumer purchasing power due to high inflation
• Structural decline in profit
• High costs
• Loss of market share, particularly in consumer markets
• Low profit margins associated with the sale of cheese

Mitigation Strategies

• Implementation of the Expedition 2030 strategy and a new executive structure with seven focused business groups
• Cost savings programme including a reduction of 1,800 jobs
• Optimisation of the product portfolio, simplification of product specifications and process standardisation
• Annual cost savings of 400 to 500 million euros by 2026

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of agricultural raw materials and paper packaging
• Responsible Supplier Policy including zero-deforestation and -conversion

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Changes in consumer demand

Opportunities

• Development of energy-efficient products
• Renewable energy generation solutions

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: PricewaterhouseCoopers Accountants N.V.

UN Sustainable Development Goals

• Goal 7
• Goal 13

FrieslandCampina contributes to eight UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Friso Prestige premium infant nutrition
• Chocomel plant-based

Awards & Recognition

• LinkedIn Talent Insights Pioneer award