Sustainability Resource Guide
for U.S. Dairy Processors
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The Plan
Setting Goals and Measuring Progress
Resources for Setting and Reporting GHG Goals

The Science Based Targets Initiative’s (SBTi) target setting methodology is the most credible and accepted GHG reduction goal setting methodology available. SBTi also has methodology on setting net-zero GHG reduction targets, and is in the process of developing a forestry, land and agriculture (FLAG) sector specific standard.

Companies must establish a GHG baseline — a complete accounting of the sources and quantity of GHG emissions in a given year — as a benchmark to accurately measure progress against a GHG reduction goal. The reliability of this initial baseline is critical to future reporting and business relationships.

GHG emissions are categorized into different scopes:

The scopes correlate to who “owns” those emissions and the level of control applicable to changing those emission levels at each stage. Accepted GHG accounting standards, such as the GHG Protocol, differentiate between a Scope 1 and 2 baseline, and a Scope 3 baseline. However, the combination of these two baselines together comprises a company’s complete GHG emissions baseline.

Information on how to establish and measure a Scope 1 and 2 baseline and track emissions over time can be found in Chapter 5 of the GHG Protocol Corporate Standard. Information on how to establish and measure a scope 3 baseline and track emissions over time can be found in Chapter 9 of the GHG Protocol Corporate Value Chain (Scope 3) Standard. Specific guidance for dairy cooperatives and processors is provided in the Innovation Center’s Scope 1 and 2 GHG Inventory Guidance, and Scope 3 GHG Inventory Guidance.

The largest source of GHG emissions in the dairy supply chain is the dairy farm itself. For cooperatives and processors, this is a source of a majority of Scope 3 emissions – specifically, Scope 3: Purchased Goods and Services. The FARM Environmental Stewardship Program (ES), managed by the National Milk Producers Federation, is an on-farm evaluation that collects relevant information through a limited set of questions to generate a scientifically robust estimate of a farm’s GHG emissions. This on-farm GHG estimate provides a credible and streamlined method for cooperatives and processors to quantify Scope 3: Purchased Goods and Services emissions from their supplier farms. More information can be found on page 5 and 13 of the Scope 3 GHG Inventory Guidance.

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