Metrics and targets

In 2025, we set two new scope 3 targets aligned with the SBTi-based target FLAG pathway, shifting from our previous milk and whey intensity target to one absolute scope 3 FLAG emissions reduction target and one scope 3 supplier and partner engagement target. 2024 was the final year reported against the former target, achieving a 13% reduction from the 2015 baseline, nearly halfway to the original 2030 goal of 30%. The new targets replace the previous scope 3 target, and future reporting will focus exclusively on these.

We now have two emission reduction targets and one scope 3 supplier and partner engagement target, supported by detailed roadmaps outlining specific levers, expected impact and individual contributions.

Scope 1 and 2

The scope 1 and 2 target intends to reduce 63% of absolute emissions by 2030. The target follows the "Absolute Contraction" approach and is aligned with limiting global warming to 1.5°C with a baseline year of 2015. It is calculated using a market-based approach. The target boundary includes land-related emissions and removals from bioenergy feedstocks.

Scope 3 FLAG emissions

In order to align with the new FLAG guidance (published in 2022), we updated our scope 3 target in 2025 and moved from an intensity target to an absolute one. With the new near-term target, we commit to reducing absolute scope 3 FLAG GHG emissions by 30.3% by 2030 from a 2020 baseline year. It covers emissions from farm and externally sourced whey and is aligned with limiting global warming to 1.5°C and the FLAG sector pathway.

Scope 3 supplier and partner engagement

In 2025, we introduced a new target for scope 3 supplier and partner engagement. By the end of 2029, 82.6% of suppliers and partners measured by emissions, covering purchased goods and services, capital goods, upstream and downstream transportation and distribution, waste generated in operations, and investments, should have science-based targets in place. The target boundary includes land-related emissions and removals from bioenergy feedstocks.

All three targets are validated and approved by SBTi.

Progress towards carbon reduction targets

We continued to deliver solid scope 1 and 2 reductions, achieving an additional 5.6% decrease compared to last year. This brings our total reduction to 43.6% compared to our 2015 baseline, driven by optimisations, investments in heat pumps and increased use of renewable energy.

In 2025, Arla farmer owners reduced emissions intensity per kg of owner milk by 0.4%, achieved through a continued increase in the use of renewable electricity, improvements in emissions from digestion, increased biogas utilisation and lower peatland emissions – all supported by FarmAhead™ Technology and the continued dedication of our farmers. Average GHG emissions from Arla farmer owners, including soil carbon sequestration, were 1.07 kg CO₂e per kg of owner milk, representing a 9.9% decrease from the 2020 baseline.

In the second half of 2025, we saw a significant increase in the delivery of owner milk to Arla in line with market developments. This volume growth outweighed the per-kg reductions, resulting in a 4.4% increase in absolute emissions under the scope 3 FLAG emissions from raw milk and whey target. Nevertheless, this still marks an accumulated reduction of 3.7% compared to our 2020 baseline. We continuously assess options to accelerate progress towards our scope 3 FLAG emissions target.

Further data and an explanation of our updated targets can be found in our 2025 Annual report