SUSTAINABILITY

Our Journey & Approach

SUSTAINABILITY PROGRESS UPDATE 2023

Find out more about our sustainability journey in our 2023 Sustainability Progress Update Report

With a rich heritage in the dairy industry, we’ve invested in driving high standards of milk quality, food safety, animal welfare and farm sustainability to responsibly deliver the healthy and nutritious dairy products our customers know and love.

We are committed to our Sustainability journey and have published our goal to achieve carbon net zero across our entire value chain by 2050. We work in partnership with our suppliers, farmers, trade bodies and NGOs to avail ourselves of the best possible expertise so that we can move forwards together. We have developed our Sustainability strategy, and our 4 areas of focus are Climate, Animal Welfare, Packaging & People. Read more in our Sustainability Progress report.

OUR RESPONSIBILITY

We have a responsibility to our consumers and society to always do the right thing – to run our business as efficiently as possible, reducing the amount of energy and raw materials we use, and help our suppliers to do the same.

OUR SUPPORT

We must also help our consumers make better choices too, by delivering healthy and nutritious food, produced in ways that minimise damage to the environment.

OUR COMMITMENT

We’re committed to understanding and responding to the changes in our environment to make sure we are equipped to build a sustainable business that looks after people and the planet, with high standards of animal welfare.

Our sustainability journey

OUR APPROACH

Our approach to sustainability for both Lactalis UK & Ireland and Lactalis Nestlé Chilled Dairy (LNCD) is focused on what’s important to our businesses, but also crucially what is important to our stakeholders, including our employees and suppliers, our farmers and our customers. The wider needs of society and the environment are also critical.

In addressing a range of sustainability issues, we have four core areas of focus:

CLIMATE

Minimising our impact on the environment

Carbon Emissions

Looking After The Enviroment

Sustainable Logistics

ANIMAL WELFARE

Supporting our partnering farms in promoting high standards of animal welfare and sustainability

Supporting Farmers

Animal Welfare

PRODUCT & PACKAGING

Producing the best dairy products for quality and sustainability

Food Waste

Transparency & Responsible Marketing

Packaging

PEOPLE

Pursuing excellence and opportunity for all

Health & Safety

Attracting & Developing People

Supporting Local Communities

SOURCING STANDARD REPORT 2023

Find out more about our Sourcing Standard, download the report for 2023

OUR 2027 AMBITION

We have made a solid start to our sustainability journey.

We have set out a clear pathway to make further improvements and have clear commitments for each of our focus areas.

CLIMATE

Minimising our impact on the enviroment

Our main raw material is produced through farming and so we have a strong relationship with and dependency on the natural environment.

At least

-25%

greenhouse gases (GHG) by 2025 (scope 1 & 2)

At least

-50%

greenhouse gases (GHG) by 2033 (scope 1 & 2)

Carbon

NET ZERO

by 2050
(scope 1, 2 & 3)

ANIMAL WELFARE

Supporting suppliers in production excellence and sustainability

We source milk from around 150 farmers in the UK, local to our production sites, as well as a range of ingredients and products from other suppliers.

5%

Year-on-year reduction in antibiotic use to fight against antimicrobial resistance.

33%

reduction in baseline carbon footprints by 2033

6

Commit to hosting 6 farmer roadshows to share best practice and market activities

PRODUCT & PACKAGING

Producing the best dairy products for quality and sustainability

Our customers can be confident that our range of products will be high quality, safely packaged, nutritious and delicious.

SUSTAINABLE PACKAGING

Finding the right pack

100% of current and future packaging solutions for core products and all future packaging solutions for product innovations screened using an eco design tool by 2025.*

Improving Circularity

We aim to continuously increase the quantity of recycled material included in our packaging with a target of a minimum of 30% recycled material at a consolidated level.

We plan on having 100% of the virgin paper we use covered by a sustainable certification by the end of 2023.**

We will aim for 100% recyclable 100% packaging by design in 2025.*

We will aim to eliminate PVC from our packaging by 2025.**

In 2033, we aim for 100% recyclable packaging in practice for countries with an
Extended Producer Responsibility scheme (EPR).*

Educating Consumers

100% of new graphics will bear waste management information starting in 2022 and 100% of packaging will bear waste management information by 2025.*

We will set up an information module on the Lactalis Packaging Policy to make our employees’ ambassadors starting in 2023.**

We will promote events like Global Recycling Day and World Clean Up Day to raise awareness around waste management.**

* Ambition on a set of 23 countries accounting for 85% of Lactalis Group turnover in 2019. All acquisitions since December 2019 excluded at this stage.

** Ambition set at Lactalis Group level. All acquisitions since December 2019 excluded at this stage.

PEOPLE

Pursuing excellence and opportunity for all.

At Lactalis, people matter. We are a family business connected by shared values, ethics and a passion for making products that bring people closer together.

GOOD EMPLOYER | OUR COMMUNITIES

At least 30% of management/supervisory roles to be held by females.

The company will match employee fundraising for our chosen charity up to agreed target levels each year.

Improve on our employee engagement score of 55%.

Roll out our volunteer policy for all employees at all sites.

Employee turnover rate to be 15% or less.