This will require “radical changes” over the coming decades, including developing new technologies, the dairy co-operative, Arla Foods, said.
It admitted the target was “ambitious”, but said it was achievable.
However, the Vegan Society said there was no way to make dairy a climate-friendly product.
Gases which help to heat the atmosphere and contribute to climate change are a by-product of the dairy industry.
They include direct emissions of methane, a potent greenhouse gas, from cows, and carbon dioxide and nitrous oxide from the likes of packaging, transportation and fertilisers.
Arla, the largest farming co-operative in Europe, said it aimed to neutralise all the CO2 produced by the dairy farms of its 10,300 members.