Royal Friesland Campina N.V.

Royal FrieslandCampina N.V.
Quick Facts
Type	Cooperation (member-owned)
sector	Dairy
Headquarters (Benelux Organization)	Amersfoort, Netherlands
Year of Origin	2008
Emissions (All Scopes)	17,4 Megatons of CO2 (2020)
Total Revenue	11,14 billion (2020)
Stock Exchange	XXX
Key People	Hein Schumacher (CEO), Hans Janssen (CFO), Geraldine Fraser (CPO), Roel van Neerbos (Chairman)
Subsidiaries	61 daughter companies, four joint ventures

Royal FrieslandCampina N.V., stylized as FrieslandCampina, was founded in 2008 by merger of Friesland Foods and Campina. Roots of the cooperation trace back to 1879. Received royal status in 2009. Active in diary. Became a major player through mergers and acquisitions. FrieslandCampina has branch offices in 38 countries and employs 23,877 people (2020). Its products are marketed in more than 100 countries. FrieslandCampina is headquartered in Amersfoort, the Netherlands. With 17000 members they are one of the largest diary cooperatives worldwide. Revenue of FrieslandCampina was 11,1 billion euro’s in 2020, of which 79 million was profit. The operating profit was 268 million, or 2,4% of the net revenue.

FrieslandCampina is the world 7th largest diary company and therefore undoubtedly a key player in its industry. It is the only Dutch player in the list of the largest twenty diary companies in the world, as composed by Rabobank. The balance sheet value of FrieslandCampina was 8,7 billion in 2020.

Company Structure

FrieslandCampina employs a two-tier structure, containing an executive board and a council of commissioners or supervisory board..

Executive Board

Executive Board

Name	Function	Remuneration x1000 EUR
Hein Schumacher	Chief Executive Officer	Unknown
Hans Janssen	Chief Finanacial Officer	Unknown
Geraldine Fraser	Chief Peoples Officer	Unknown
Roel van Neerbos	President Food & Beverage	Unknown

Before 2020, the executive board was composed of two members (CEO Hein Schumacher and Jaska de Bakker, who no longer works for FrieslandCampina) Together they earned 1,4 million euro’s. Of Jaska de Bakker is known that she received 1.1 million euro’s in termination benefits on top of her regular remuneration. Individual remuneration of the other members of the executive board is not disclosed.

Executive Leadership Team

Management Board

Name	Function
Arnoud van den Berg	President Trading
Berndt Kodden	President Specialised Nutrition
Herman Ermens	President Ingredients
Roger Loo	Vice-president Professional
Kemal Cetin	Chief information officer
Margrethe Jonkman	Global director Research & Development
Roman Scieszka	Chief Supply Chain officer
Simone Boitelle	Global director Corporate Affairs
Hein Brenninkmeijer	Global director Corporate Development

There is no information available on the remuneration of the executive leaderschip team.

Supervisory Board

The supervisory board exists of the full board of the Zuivelcoöperatie FrieslandCampina U.A. as well as four external members. Their short-term remuneration in total is 1,1 million euro's, individual remuneration is not disclosed.

Supervisory Board

Name	Function	Remuneration x1000 EUR
Frans Keurentjes	Chairman	Unknown
Erwin Wunnekink	Vice-chair	Unknown
Sandra Addink-Berendsen	Member	Unknown
Heiko Schipper	Member	Unknown
Angelique Huijben-Pijnenburg	Member	Unknown
Hans Stöcker	Member	Unknown
Angelien Kemna	Member	Unknown
René Hooft Graafland	Member	Unknown
Elze Jellema	Member	Unknown
Hans Hettinga	Member	Unknown
Cor Hoogeveen	Member	Unknown
Wout Dekker	Member	Unknown
Frans van den Hurk	Member	Unknown

Accountant

The external accountant of FrieslandCampina is PriceWaterhouseCoopers.

Main Activities

FrieslandCampina is fully owned by Zuivelcoöperatie FrieslandCampina U.A., with 16,995 members, of which 11,100 dairy farmers in the Netherlands, Belgium and Germany.

FrieslandCampina is divided into four business groups, all with their own specific focus and expertise. FrieslandCampina Consumer Dairy supplies consumers and professionals directly with all kinds of diary. FrieslandCampina Specialised Nutrition supplies specific groups of consumers, like young children or professional sporters. FrieslandCampina Ingredients supplies ingredients as innovative partner in healthy or functional foodsolutions. FrieslandCampina Dairy Essentials produces and sells cheeses, butter and milk powder for professional and industrial clients.

Government

FrieslandCampina has received Royal status in 2009. This means that according to the Dutch State, this company is more than 100 years old, prominent in its sector in the Netherlands, its governance is inmpeccable and the management is without any controversy. FrieslandCampina has not received support in NOW-subsidies during Corona-times.

Paris Agreement to Today

FrieslandCampina has developed a tool to measure emissions per member farm, which can help reduce these emissions. Since 2019, for all member farms emissions are being calculated seperately. This data has not yet been publicly shared and therefore no conclusions on progress can be drawn from this data.

Financial Results since 2015

This tabel is meant to indicate that the companies have plenty of money to make their company more sustainable. Clearly distinguish between Dutch data and international data.

Financial situation

Year	Revenue	Profit	Dividend/profit flowing back to shareholders/members
2015	11,265 billion EUR	343 million EUR	119,9 million EUR ((55% of profit attributable to shareholder)
2016	11 billion EUR	362 million EUR	125,95 million EUR (55% of profit attributable to shareholder)
2017	12,11 billion EUR	227 million EUR	64,35 million EUR (45% of profit attributable to shareholder)
2018	11,553 billion EUR	203 million EUR	33,3 million EUR (45% of profit attributable to shareholder)
2019	XXX Billion EUR	XXX EUR	XXX EUR
2020	XXX Billion EUR	XXX EUR	XXX EUR
2021	XXX Billion EUR	XXX EUR	XXX EUR

Scandals and controversies

Any dirt on the companies can be added here.

Current Emissions

In 2020, FrieslandCampina’s greenhouse gas emissions during production and transport were 0,72 Megatonnes CO2-eq. The greenhouse gas emissions on member diary farms counted up to 12,319 megatonnes CO2-eq. These numbers exclude the purchase of extra CO2 emission rights of 0,12 megatonnes (2019) and 0,11 megatonnes (2020). In 2019, according to its own calculations, total emissions were 11,96 megatonnes CO2-eq. In an investigation commissioned by Milieudefensie, Houkema Advies Duurzaam Voedsel concluded FrieslandCampina emitted 17,4 mton CO2-eq. in 2019. Due to lack of insight into the calculations of FrieslandCampina, an explanation of the difference cannot be given.

Although products of FrieslandCampina are sold in over 100 countries worlwide, all of the member diary farms are located in the Netherlands, Belgium and Germany. In the Netherlands, over 75 percent of all dairy farmers are members of FrieslandCampina. Nearly 95 percent of all emissions by FrieslandCampina occur in the Netherlands, Belgium and Germany (12,319 megatonnes out of 13,039 megatonnes CO2-eq.).

Total emissions XXX Megatonnes of CO2 (2020)

Scope 1	Scope 2	Scope 3
XXX Megatonnes of CO2 (2020)	XXX Megatonnes of CO2 (2020)	XXX Megatonnes of CO2 (2020)

Climate Policy and Plans

FrieslandCampina strived to grow its company in a climate-neutral way. This long-term climate-neutral growth objective has been realised according tot heir own rapportations: greenhouse gas emissions in the period 2010-2020 decreased from 13,108 megatonnes to 13,039 megatonnes, while production volume increased by 13.6 percent.

FrieslandCampina has sustainability targets, but there are no targets on emission numbers besides the long-term targets which are set out in law. As an example, one of the sustainability targets is maximizing income for member farmers, which coincides with the interest of the company owners, which are the member farmers. Other targets are making processes circular and feeding a growing world population. In other words, increase output and reduce production costs.

By 2050, FrieslandCampina aims to be producing (net) climate-neutral dairy and, by 2030, it intends to reduce the emission of greenhouse gases by more than one-third (compared to 2015) in line with the Paris Climate Agreement and Green Deal climate targets. How these targets will be met is not specified. FrieslandCampina mentions net climate-neutrality, leaving the option open to compensate emissions instead of reducing them.

FrieslandCampina claims to have reduced greenhouse gasses emissions with 20% between 1990 and 2020. Based on the FrieslandCampina data, the prognosis of emission reduction is exactly 45 percent in 2030.

Due Diligence

Keep the broader context in mind. Is the company integer when it comes to deforestation, palm oil, biodiversity, human rights etc etc? Be critical in the sources used here.

Conclusion

FrieslandCampina has set emission reduction targets for 2030 and 2050, as mandated by law. The way in which these targets will be met is not specified. FrieslandCampina wants its production to grow in accordance with the growth of the demand for dairy worldwide. This expected growth is 2 percent per year and is therefore higher than the production growth in the period 2010-2020, which was 13,6 percent. In the period 2010-2020 emissions dropped by less than 1 percent. FrieslandCampina strives to lower emissions from 2015 to 2030 by more than 33 percent.

FrieslandCampina is going through difficult times in terms of profit and member satisfaction. More than 95 percent of the emissions of FrieslandCampina take place in the Netherlands, Belgium and Germany while the large majority of the products is exported. The current business model of FrieslandCampina prevents third world countries from properly developing their own markets. Due to its expansion thrift, FrieslandCampina has hardly cut down on emission in previous years. With its expected growth numbers, their emission reduction targets for 2030 are hardly realistic. Especially when comparing the targets to the realised numbers of the last decade.