SustainabilityOnline recently published its inaugural ‘Ambition Into Action’ report, featuring interviews with senior leaders about how they are turning sustainability vision into business reality at the mid-point of the decade.
Hanne Søndergaard joined Arla Foods in 1989 and has held various marketing, sales, and commercial roles, including several years in Arla UK. In 2010, she became Senior Vice President of the Butter and Spreads category, and in 2012 was promoted to Senior Vice President of Global Categories and Brands. She joined Arla’s Executive Management Team in 2016 as EVP of Marketing, Innovation, Communication & Sustainability and assumed her current role in January 2022.
How has Arla Foods moved from ‘ambition to action’ in terms of turning sustainability into a core value driver – in other words, how have you made sustainability ‘good for business’?
We embedded sustainability into the core of our model, not as an add-on. At farm level, our FarmAhead Check programme gives us one of the industry’s most robust data sets, so we can target the most effective levers and scale what works. We link progress directly to on-farm economy through incentives in the milk price, which drives adoption and continuous improvement.
Commercially, verified reductions and transparent data strengthen partnerships with retailers and customers who need credible Scope 3 progress, and they differentiate our brands. Internally, carbon is managed alongside cost and quality, so initiatives that cut emissions and improve efficiency are prioritised. This creates a flywheel where data guides investment, incentives accelerate change, and commercial traction funds the next improvements.
We’re now at the mid point of the decade. What do you see as the single biggest barrier for businesses in moving from ambition to measurable action – and how can it be overcome?
The primary barrier is high-quality, comparable data at scale, especially in scope 3. Without it, prioritisation and proof are difficult. The solution is to standardise measurement, pair data with incentives and financing so change is rewarded and de-risked, and treat suppliers and farmers as partners in innovation, not just vendors.
Start with the best-available methods, be transparent about your approach, and iterate rather than waiting for perfection.
What role can (and should) leadership play in ensuring sustainability commitments actually deliver results, rather than remaining aspirational? And how can you ensure buy-in from all stakeholders?
Leadership must hardwire sustainability into strategy, governance, and incentives, so it becomes how the business operates. Set clear, science-based targets, translate them into operational roadmaps, resource the change with budget and tools, and report progress transparently.
Speak the language of value for each stakeholder: resilience and income for farmers, credible Scope 3 reductions for customers, trust for consumers, and purpose with performance for colleagues. Build coalitions across the value chain and keep sustainability on the agenda consistently – even in tough markets and volatile conditions – so commitments turn into measurable results.
Learn more about Arla Foods’ sustainability initiatives at www.arla.com/sustainability.
