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Setting Goals and Measuring Progress
After completing a materiality assessment and identifying sustainability impact areas
that are most relevant for your organization (see What Matters Most), the next step is
to prioritize where to make improvements; set goals for those areas and implement
mechanisms to measure and report progress towards those goals. This helps manage
business risks and provides opportunities for cost reduction and income generation.
Greenhouse Gas Emissions
Greenhouse Gas (GHG) emissions are likely the first place to start. GHG emissions are a
material sustainability topic for all industries including U.S. dairy at the national level
and are very likely a material topic for dairy cooperatives and processors at a company
level too. As a result, stakeholders increasingly expect companies to address and
manage their GHG footprint.
Resources for setting and reporting on credible GHG reduction goals for both direct and
indirect emissions, including an explanation of the types of emissions (Scope 1, 2, and 3)
can be accessed here.
Other Environmental Sustainability Impact Areas for Processors
Other material environmental sustainability topics in dairy include energy use, water
quantity and quality, and resource recovery. Determining a baseline for these topics can
generally be done through facility audits, which usually requires working with
third-party consultants.
A simple and streamlined way to establish a baseline for all these topics is through the
Processor Stewardship Reporting Tool. The Tool is built directly on the processor
metrics outlined in the U.S. Dairy Stewardship Commitment. It provides a credible and
cost-effective way to calculate and report on sustainability metrics on a
facility-by-facility basis, while simultaneously supporting U.S. dairy’s efforts around
industry aggregate reporting.
The tool enables companies to monitor and manage sustainability performance at a
location level, collect the data necessary to measure and make progress towards
company goals. It also provides cooperatives and processors with a Scope 1 and 2 GHG
emissions baseline.
Dairy Processor Handbook
The Dairy Processor Handbook is a comprehensive guide for dairy manufacturers and
processors who utilize the Processor Stewardship Reporting Tool. The Handbook was
built in direct alignment with the Tool and the Stewardship Commitment, and provides
step-by-step guidance on how to measure and report information on these material
sustainability metrics at the processing facility:
- Energy use to improve efficiency
- Greenhouse gas emissions to reduce the processing facility’s carbon footprint
- Water management to responsibly manage water use
- Resource recovery through optimal recovery, recycling and reuse
- Workforce development to maintain employee satisfaction and a safe
working environment
- Community contributions supporting local communities
- Product safety and quality to ensure a safe and reliable dairy product supply
On-Farm Considerations
Sustainability begins with caring for the dairy herds that produce our milk and extends
through the supply chain. Dairy farmers have a proud history of providing
environmental stewardship with a focus on continuous improvement.
Every dairy farm is different, requiring tailored sustainability goals and practices that
make sense for their unique situation. Learn more about On-Farm Sustainability Goals
and Practices here.
Continuous Improvement
Sustainability is a daily, purposeful commitment that touches all aspects of operations
and manifests in sound, responsible business practices. Like all business strategies, it
requires an eye to the future and a mindset of continuous improvement.
Learn about continuous improvement and innovation across the supply chain from the
winners of the annual U.S. Dairy Sustainability Awards. Industrywide progress is
reported in the 2020 U.S. Dairy Sustainability Report.
Furthermore, there are several freely available resources — developed by the Innovation
Center for U.S. Dairy’s Processor Working Group — that dairy processors can use to
continuously improve their company environmental footprint, while simultaneously
supporting the industry’s 2050 Environmental Stewardship Goals.
The Processor Working Group hopes to develop and release additional industry
guidance documents focused on other relevant topics to support dairy processors on
their sustainability journeys.
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