Green Dairy Bonds
Completed
Challenge
The dairy industry is increasingly concerned with the greenhouse gas (GHG) impacts of their supply chains. Technologies exist to enable GHG emission reduction on dairy farms, but they have not yet achieved broad implementation. Reliance on individual farmers to finance these improvements slows this process.
Impact Goal
Green bonds can supply much needed investment dollars for carbon-neutral solutions in the Minnesota dairy industry. Green bonds have the potential to spread the cost across supply chains, facilitate significant production changes to bring about GHG reductions and catalyze novel environmental and economic solutions in the dairy industry.
Funding
Partner Organization(s)
Project Leads
Funds Enterprise, Finance Department
Research Professor in Sustainable Food Systems
Associate Research Professor in Economics and Industrial Ecology
Financing Greener Dairy Production
Almost three quarters of the GHG emissions of pasteurized fluid milk and cheese come from milk production and related on-farm impacts. These impacts pose significant risks to companies through reputational harm, climate disruptions to agricultural supplies and the possibility of regulatory action.
Furthermore, consumers concerned with the high environmental impacts of milk products are
increasingly choosing non-dairy alternatives, which, while reducing emissions, negatively impacts
livelihoods of those in the dairy industry.
This project aimed to connect investors, farmers, companies and consumers to understand how financing GHG-reducing technologies can be implemented on Minnesota dairy farms through green bonds, which enable investment in projects with environmental benefits.
Outcomes
- Published a research paper in the Journal of Sustainable Finance and Investment outlining their life-cycle assessment of green bonds
- Held a conversation about the measurement of impact and challenges facing Environmental, Social, and Governance (ESG) financing, published on the CFA Society of Minnesota’s Youtube channel
- Held 10+ one-on-one stakeholder meetings
- Gave multiple presentations and held multiple workshops on their research to inform and collaborate with dairy industry community members
Meet the Project Team
Project Leads
Susanna Gibbons
Fellow
Since 2019
FLC
Since 2026
Funds Enterprise, Finance Department
Carlson School of Management
Jennifer Schmitt
Fellow
Since 2017
Staff
Since 2015
Research Professor in Sustainable Food Systems
Institute on the Environment
Nathaniel Springer
Associate
Since 2018
Staff
Since 2017
Associate Research Professor in Economics and Industrial Ecology
Institute on the Environment
Additional Team Members
Project Status
Last Updated
Aug 05, 2026
Impact Location
Minnesota