Carbon Reduction Plan
Paynes Dairies Ltd
Publication date - May 2026
Commitment to Achieving Net Zero
Paynes Dairies Ltd is committed to achieving net zero emissions by 2050, in alignment with the UK Dairy Roadmap
and the UK Government’s national net zero target.
Baseline Emissions Footprint
Baseline emissions are a record of the greenhouse gases produced prior to the introduction of any strategies to reduce emissions, and are the reference point against which emissions reduction is measured.
Baseline year: 2020 (calendar year)
The 2020 baseline represents Paynes Dairies Ltd’s first formally recorded emissions data, covering Scope 1 and Scope 2. Scope 3 emissions data collection is in progress as part of the 2025/26 GHG audit programme outlined in our Net Zero Timeline (ESG-P005). No prior Scope 3 emissions reporting has been undertaken. The electricity conversion factor was 2.4 in 2020–2022, reducing to 1.5 from 2023 onwards, reflecting the UK grid’s improving carbon intensity.
Baseline year emissions (2020):
Current Emissions Reporting
Reporting year: 2024 (most recent complete calendar year)
Emissions Performance Chart
The chart below shows actual Scope 1 + 2 combined emissions (2020–2024) against the projected reduction trajectory towards the 2030 interim target of 2,476 tCO2e (a 25% reduction on the 2020 baseline).
Historical Emissions Data (Calendar Year)
Annual energy consumption and associated carbon dioxide emission data compiled by Archon Environmental.
Scope 2 = purchased electricity; Scope 1 = steam boiler fuel (gas oil or IHO).
SECR Reporting Data (Financial Year)
The following data has been compiled for Streamlined Energy and Carbon Reporting (SECR) purposes, reported by financial year.
Emissions Reduction Targets
In order to continue our progress towards achieving net zero, Paynes Dairies Ltd has adopted the following carbon reduction targets, in line with the UK Dairy Roadmap and our Net Zero Timeline (ESG-P005):
• Reduce combined Scope 1 and Scope 2 emissions by 25% by 2030 (vs. 2020 baseline of 3,301 tCO2e), targeting ≤2,476 tCO2e.
• Achieve 100% renewable electricity by 2030 through on-site generation or a renewable tariff.
• Complete a comprehensive Scope 1, 2 and 3 GHG emissions audit by 2026 and set science-based targets aligned with the 1.5°C pathway.
• Achieve net zero GHG emissions across all scopes by 2050, aligning with UK national targets and the UK Dairy Roadmap.
We project that combined Scope 1 and 2 carbon emissions will decrease to approximately 2,600 tCO2e by 2029. This represents a reduction of approximately 21% against the 2020 baseline.
Progress to date: combined Scope 1 + 2 emissions have already reduced from 3,301 tCO2e (2020) to 2,939 tCO2e (2024), a reduction of 362 tCO2e (approximately 11%).
Carbon Reduction Projects
Completed Carbon Reduction Initiatives
The following environmental management measures and carbon reduction projects have been completed or implemented since the 2020 baseline:
• Electricity grid decarbonisation benefit: The UK grid electricity conversion factor applied to Paynes Dairies’ purchased electricity reduced from 2.4 (2020–2022) to 1.5 (2023 onwards), contributing a reduction of approximately 521 tCO2e per year in Scope 2 emissions.
• Electricity consumption reduction: Metered electricity consumption has reduced from 7,389 MWh (2020) to 5,989 MWh (2024), a reduction of approximately 19%, through process optimisation and energy efficiency improvements at the Roecliffe processing site.
• ESG Policy Framework: A comprehensive suite of ESG policies (ESG-P001 to ESG-P006) was approved and published in April 2025 to underpin all sustainability and carbon reduction activities.
• Responsible Sourcing: A Responsible Sourcing Policy (ESG-P006) and Sustainable Soy Policy (ESG-P003) have been implemented, targeting 100% deforestation-free soy sourcing across supply chain farms.
Future Carbon Reduction Initiatives
In the future, Paynes Dairies Ltd intends to implement the following further measures, in accordance with our Net Zero Strategy (ESG-P004) and Net Zero Timeline (ESG-P005):
• Comprehensive GHG Audit (2025/26): Full Scope 1, 2, and 3 GHG emissions audit to establish science-based targets and develop a detailed decarbonisation roadmap.
• Renewable Energy: Explore and invest in on-site renewable energy generation (e.g., solar PV) and transition to a 100% renewable electricity tariff by 2030.
• Energy Efficiency: Implement heat recovery systems, LED/PIR lighting controls, variable speed drives, and advanced refrigeration technologies at the Roecliffe processing facility.
• Boiler Fuel Transition: Investigate transitioning steam boiler fuel from gas oil/IHO to lower-carbon alternatives, including biogas from anaerobic digestion.
• Supply Chain Engagement: Work with supplying dairy farmers to reduce on-farm emissions through feed optimisation, improved manure management, and adoption of sustainable farming practices aligned with the UK Dairy Roadmap.
• Packaging Sustainability: Transition to 100% recyclable packaging materials and explore options to reduce plastic content and increase recycled content.
• Transport Decarbonisation: Explore low and zero-emission vehicles for logistics and optimise transportation routes to reduce transport-related emissions.
Declaration and Sign Off
This Carbon Reduction Plan has been completed in accordance with PPN 006 and associated guidance and reporting standard for Carbon Reduction Plans.
Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard and uses the appropriate government emission conversion factors for greenhouse gas company reporting.
Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements (where required), and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard. Scope 3 data collection is currently in progress.
This Carbon Reduction Plan has been reviewed and signed off by the board of directors.
Date: 27.05.2026
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