How to Reduce your Carbon Footprint ECR Europe Forum, 29 May, Berlin
IGD Overview Nick Downing, Sales Manager
How to Reduce your Carbon FootprintECR Europe Forum, 29 May, Berlin
Agenda
• Why reduce your carbon footprint? – Jon Woolven• Three steps to carbon reduction – Euan Murray• Innocent experience – Jessica Sansom• Danone experience – Jean Pierre Rennaud• Boots experience – Andrew Jenkins• Conclusions – Jon Woolven• Q&A session
What is a carbon footprint?
“The total amount of CO2 and other Greenhouse Gas emissions that an
entity is responsible for including both direct (in-house) and downstream emissions”
Company Carbon Footprint - Casino
Product carbon footprint
Why reduce your carbon footprint?
Source: European Commission’s "You Control Climate Change" website
Reason 1 – Climate Change
Why reduce your carbon footprint?
Reason 2 – Customer Demand
31%
31%
34%
53%
54%
70%
12%
17%
15%
31%
34%
37%France
Netherlands
UK
Spain
Germany
Poland
Interest
Actively look tobuy
Are you interested in/actively looking to buy environmentally friendly products?
Source: IGD 2008
Why reduce your carbon footprint?
Reason 3 – Energy Prices
020406080
100120140160
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Crude oil spot price $ per barrel at turn of year
Source: US Department of Energy
Why reduce your carbon footprint?
Reason 4 – Carbon Trading
Source: NEC Corporation
How to reduce your carbon footprint
Euan MurrayMay 2008
The Carbon Trust
Set up by UK government as independent “not-for-profit” company
We help organisations reduce carbon emissions and develop low carbon technologies
Insights Innovations InvestmentsSolutions Enterprises
Last year we:
Worked with >5,000 companies
Identified savings of 4.6 million tCO2 per year worth £500million
How do you actually do it?
Measure
Motivate
Mobilise
Measure: Standards Development
Standards Development
Developing public standards to:Measure;Reduce; andCommunicate
the GHG emissions from goods & services
Partnered with BSI British Standards & UK Department of the Environment
Consulting with ~1,000 organisations in UK and beyond
Testing standards with 20 leading brands
Working with ISO and WRI on next steps
Standards development: Pilot projects
How do you actually do it?
Measure
Motivate
Mobilise
Motivate: The myth of food miles
Walkers34.5g Cheese & Onion
Innocent250ml Mango & Passion Fruit
Total = 75g CO2e Total = 294g CO2ePotato distribution: <1%
Making nitrogen fertiliser: >15%
Source: Carbon Trust Low Carbon Supply Chain Pilot, March 2007
Cutting food miles is important to reduce transport impactsBUT
Food miles is a poor indicator of the overall impact
Growing & Packing: 23%Raw materials transport: 14%
Making the packaging: 30%
Smoothie-making: 21%
Distribution: 10%Disposal: 2%
How do you actually do it?
Measure
Motivate
Mobilise
Mobilise: Case studies of our results
Boots: Shampoo Continental Clothing: T-shirts
UK’s leading pharmacy chain
8 shampoos, 4 packaging types and 2 distribution options
Over 90% of footprint from consumer use
Identified 33% savings opportunities in supply chain
Boots implemented 20%– 10%: recycled bottle– 10%: distribution upgrade
B2B wholesaler of clothing for corporate, leisure and promotional wear
Footprinted supply chain of 7 t-shirts & tops
Sponsored building of wind farm to power the India factory
Yielded 90% saving to the B2B carbon footprint
Summary of product carbon footprinting
We are working to create international standards to measure, reduce and communicate the results
We are working with leading companies to test the process
We have shown the financial benefits of product carbon footprinting
We are now working with some of those to test carbon labelling with consumers
Further information:
Euan Murray General Manager [email protected]
www.carbontrust.co.uk www.carbon-label.co.uk
Cutting carbon
Jessica Sansom
hello
Create a business we can be proud of
Be natural Be
responsible
Be commercial
Be generous
• Keep it human, put people first
• Make 100% natural, delicious, healthy stuff, 100% of the time
• Act and talk naturally, treating others as you would want to be treated.
• Leave things a little better than we find them
• Move towards only zero or positive impacts
• Create growth and profit for us and our customers
• Be tough, and be fair
• Think clearly, act decisively and keep the main thing, the main thing
• With time where needed
• With praise wherever possible
• With wealth with those that deserve it
company values
Be entrepreneurial
• Chase opportunities and be responsive
• Be creative and challenge the status quo
• Prove it can be done
We have 5 key company values
Our approach is to ensure that we…
Leave things a little bit
better than we find them
why
Exact outcome is uncertain, but any change is going to have impacts
We want to leave things a little better than we find them
Why bother?
requirements
growers blender manufacturerswarehouses
packagingsuppliers
customers
• raw materials• energy consumption• waste disposal
• energy consumption• source of energy• landfilled waste• refrigerant loss
• energy consumption• source of energy• waste disposal• refrigerant loss
• energy consumption• source of energy• waste disposal• refrigerant loss
• weight of load• mode of transport• energy for refrigeration• refrigerant loss• distance travelled
• weight of load• mode of transport• type of fuel• distance travelled
• weight of load• mode of transport• type of fuel• distance travelled
• weight of load• mode of transport• type of fuel• energy for refrigeration• refrigerant loss
• weight of load• mode of transport• type of fuel• energy for refrigeration• refrigerant loss• distance travelled
Measuring carbon across our entire supply chain
• use of fertiliser• use of pesticide• energy consumption• type of fuel• method of harvest• waste disposal
Material shipping
Packaging
Manufacture
Distribution
Growing & Packing
Disposal
0
100
200
CO2per bottle(grams)
measuring our carbon footprint
Two carbon audits in 2006 identified where the carbon was
Material shipping
Packaging
Manufacture
Distribution
Growing & Packing
Disposal
0
100
200
CO2per bottle(grams)
action
We knew where to get started
our little bottle
How we got to 100%
0%
20%
40%
60%
80%
100%
2001 2003 2005 2007
100%
Lightweight bottle 21g to
18gApril 2003
Introduce 25% PCR
June 2003
Introduce 50% PCR
April 2006
Material shipping
Packaging
Manufacture
Distribution
Growing & Packing
Disposal
0
100
200
CO2per bottle(grams)
results
We achieved a 15% reduction in the overall footprint of the smoothie
50% recycled content 100% recycled content
suppliers going green
In 6 months, one manufacturer halved their use of land fill …
0
5
10
15
20
25
30
35
40
Mar April May June July
LandfillWaste
(Tonnes) 54%
suppliers going green
… and moved to renewable energyidentified energy savings of 25%= cost savings of £125k per annum
Material shipping
Packaging
Manufacture
Distribution
Growing & Packing
Disposal
0
100
200
CO2per bottle(grams)
results
Our co-packers reduced their footprint by 57%
going forward
We use the data in our business decisions
CO2
Material shipping
Packaging
Manufacture
Distribution
Growing & Packing
Disposal
0
100
200
CO2per bottle(grams)
next - 2008
Reduction gets a little harder, but a lot can still be achieved
Agrochemical reductionSource of fruit
Chilled, frozen, ambient
Bottle production
Energy, waste, water
Fuel efficiencyRefrigeration gases
2008 actions
travel together
Best quality drinks, least carbon
Reducing Footprint
JP. Rennaud Corporate Environment Director / 29.05.08
Founding acts…..on packaging and water
>1972“Corporate responsibility does not end at the factory gate or at the office door. The
jobs we create are central to people’s lives. The energy and raw materials we consume change the shape of our planet. The public is here to remind us our responsibilities.”
Antoine Riboud
1976
1996
1998
1996: Environmental Charter
2000-2010Green PlantsPack Ratio
1996 / 2008 What is done…?
« Green Plants » Program2000 - 2010 Targets:
Water consumption: -30%Energy consumption: -20%
Achievements 2007 vs 2000:Water Consumption : -22%Energy Consumption : -28%Total Waste: -19%Cooling gazes consumption : -25%
Pack ratio Spain -Evolution 2001 -2006
0,00%
5,00%
10,00%
15,00%
CO
RE
(ER
CA
125
X 4)
DA
NET
X2
(pla
stic
tray)
Dan
onin
osp
oon
(pla
stic
Act
imel
x6
YOG
UR
T X
8 PU
Ave
rage
com
pany
Ratio weight pack/weight product
Product Range
0
2000
4000
6000
Total tons pack full year 06
2001 RATIO 2002 RATIO 2003 RATIO 2004 RATIO 2005 RATIO 2006 RATIO TOTAL K 06
2000- 2010 : - 10% Packaging Ratio2006, 15 CBU have reported their 10 main references : - 6% within 6 years.
Groundwater Protection
GREEN DQSE
Implement fundamental environment aspects of business to make sure that Group standards are applied everywhere
ISO 14001Process
1996 / 2008 What is done…?
NEW REGULATIONS
FOR GOVERNANCEETHIC FUNDS
POVERTY
PACKAGING IMPACT
WORKING CONDITIONS
SOCIAL PROGRESS
INTENSIVE AGRICULTURE
GLOBAL WARMING
ACCESS TO EDUCATION
RESOURCESSCARCITY
ACCESS TO WATER
PROTECTION OF WATER RESOURCES
Today, world is changing…..
Tesco
3000gr CO2 /kg
Retail is changing…..
Consumers are changing…..
In all of Europe, attitudes towards sustainable purchases have also become widespread. 22% of German and Spanish populations for example, consider environmental aspects of
products when shopping. Italy and France are both at 30%[
10% - the growth in sales of energy efficient appliances in 2006 to reach £1.8 billion.
$227 billion – the size of the US market for ecological products
“66% - the number of US consumers that have considered switching brand due to issues of CSR.”
43% -the percentage of consumers who consider product information on packaging very important when judging companies
21% - of consumers not only say they are willing to pay more for ethically produced and environment-friendly products (for instance, fair-trade coffee, and energy-efficient light bulbs) but actually do buy these products.”[
57%- adults that say they will look through advertising circulars, 50% say they will conduct research on the internet, and 38% say they will use the catalogues for information before going to purchase a specific product.“[
81% - the increase in UK household spending in line with ethical values from 2002-2007. Up from sepnt £664 in 2006 compared with £366 in 2002; a 81% increase.
Business is under pressure
Emballages Plastiques 26%
The mission today
• “In every country of the world, bring health through nutrition to the greatest number of people, is a concept we all must work towards..
•A new dimension of DANONE “dual project”
People Nature
• Lower environment footprint of activities
• Benefits from nature integrated in our products
The mission today
Our levers to impact positively
business & society
Nutrition and health
Next step for us…
& WATER
1/ Make our processes greener
Innovation &Renovation
GG
GG
GG GG GGGG
GG
Activity Management (Promotion,Copacking…)
Milk, Development ,sourcing, Supplier Management and partnership
Manufacturing: Capex, Production, NRJ &H2O, waste…
SSD Activities
Ingredients , packagings, to beincluded in Goose
GGGGGG
COPROD
CODEV
Distribution : Network design , temperature , 3PLfullfillment of trucks, green trucks …
GG GG
Finance: Taxes,Information system,Carbon economy
CO2 GroupeDANONE
20mil.T
AGRICULTURE 40%
MANUFACTURINGENERGIE
9%
EMBALLAGE 23%
DISTTRANSPORT
28%
2/ DANONE Carbon footprint
Manufacturing7%
Distribution 28%
Packaging
69%
End life-4 %
Distribution 28%
Packaging 13 %
Endlife8 %
Agriculture 47%
Manufacturing 9 %
WATER DANONE
156m.m3
AGRICULTURE 45%
MANUFACTURING 38%
PACKAGING 9%
DISTTRANSPORT
8%
DANONE Water footprint (Est.)
What if we do nothing ?
10% CANN growth = +8% CO2 1% Mix increase of small bottles = +1,5%
We will probably have to reduce our carbon footprint by 10%every year – just to stand still !!
Sustainable growth
New management for carbon neutrality
0%
100%
BreakthroughInnovation
0Current action
Hard work
Co workingwith suppliers…
Compensation
Reduction
Manufacturing
MethanePesticides/fertilizers
Farm practices
Waste
TransportationVolume utilisation
Storage /Cold chain
Weight Conception Materials
Recycling/End lifeUpstream Transportation
ProcessPackagingCleaning
Transportation
13 %
9 %8 %
44 %
28 %Agriculture
Packaging
DistributionFruit, sugar
3 %
Footprint key levers for Dairy
IronWater power
MechanizationTextiles
Commerce
SustainabilityRadical resource
ProductivityWhole system
designBiomimicry
Green chemistryIndustrial ecologyRenewable energy
Green nanotechnology
Digital networksBiotechnology
SofwareInformationtechnology
PetrochemicalsElectronics
AviationSpace
Steam powerRailroad
SteelCotton
ElectricityChemicals
InternalCombustion
engine
Source: Natural Edge
18451785 19501900 1990 2020
Inno
vatio
n
Greenhouse gases emissions (in g eq. CO2/liter of product)
-200
20406080
100120
Materials Production Logistic End of Life
Upstream
FinishedproductDanone site
Energy prod°
Raw materials
Packaging
9.7
112.6 10.2 -5.532.4
FR = 141,31994
12.4
Greenhouse gases emissions (in g eq. CO2/liter of product)
-20
0
20
40
60
80
100
Materials Production Logistic End of Life
Upstream
FinishedproductDanone site
Energy prod°
Raw materials
Packaging
91.4 10.2 -4.532.2
FR=124.3200742 g 32 g
5,566,5
77,67,47,68
9
4
5
6
7
8
9
10
1 2 3 4 5 6 7 8 9 10 111995 1998 2000 2002 2003 2004 2005 2007 2008 2009 2010
EvalutaingNew
materials5,0
?
Bottle weight evolution
EX1:Lightweighting and recycling
CO2 emission evolution
92,2104,7
109
124
0
20
40
60
80
100
120
140
2007 2008 2009 2010 Year
CO2 (g/L of product)
100% PET 32g
25% rPET 32g 25% rPET 29g50% rPET 29g
110
EX2:Recycling PET Bottle to Bottle
Reintroduction of flax in the animal
food chain.
Improve the nutritional profile of
milk.
Cows eat all year long an aliment rich
in omega 3
Neufchâtel/Ferrières
Social benefit+ Value forDanone & Producer
LINUSPROJECT
WHAT?WHAT? HOW?HOW? RESULTRESULT WHERE?WHERE?
Economy changedEconomy changed
Rise of demand
Agriculture changedAgriculture changed
Flax & feed vs Corn
Food changedFood changed
Omega 3 vs AGSGood fat vs bad fatC
onte
xt
Therefore project LINUS
Environmental benefit- CO2: Reduction Cow emissions
Health benefitNatural & Omega 3
ωω33
Ph. Boyer PLF Operations Sept 07
EX5 : UK initiative : A Greener logistics
Transport initiatives Fleet enhancement
Average age of the fleet is 2.37 years. This is expected to reduce further as new vehicles are added in 2007.All units conform to the Euro 4 emission regulations.Culina to move to Euro 5 with effect from 2007.11 units on order that already conforms to Euro 5 emission regulations that take effect in October 2009.
Other initiativesTests to run fleet on Bio fuelReducing empty miles (return loads)Central planning to optimise fleet utilisation and increase load fill, reducing the number of food miles.
64
Current FlowCurrent Flow
Asda RDC
Coventry Depot
Proposed Zebra Flow Proposed Zebra Flow
Asda RDC70% vol via Zeebrugge
30% vol via Coventry
Zeebrugge Depot
Asda & DWUK Depot
100% vol via ZB
COMPENSATION
Protect/restorebio-diversity
0
Reducescarbon
Actionplan
Thank you for your attention…
& WATER
Product Carbon FootprintsThe first Low-Carbon Shampoo
ECR Forum – May 2008
Contact : Andrew Jenkins, Boots 0115 9686766
Boots Has A Proud Heritage …
Established in 1849 by the Boot family in Nottingham as “Boots the Chemist”
21 Strands Of CSR Action
The product journey
Sustainable design
Carbon footprinting
Product footprinting
Low temperature formulation
Ethical sourcing
Sustainable sourcing
Biodiversity
Green Chemistry
Supplier Auditing
Energy reduction
Waste reduction / recycling
Reduce ingredients inventory
Double deck trailers
Singles to store
Collect from suppliers
Dual Fuel Vehicles
Healthy Stores
Energy Reduction (lighting, heating)
Energy monitoring
Waste recycling
Recyclable display units
Carrier bag reduction
Carbon labelling
Consumer Advice:“You can help too…”
Research into product use at home
Products that work at lower water temperature
Recycling
Use of recycled materials
Labelling for recycling
Reuseable
transit containers
CONCEPT MATERIAL
S
PRODUCTION
DISTRIBUTION
RETAILUSEDISPOSAL
•The Carbon Footprint of Botanics Shampoo has been measured and options for reduction implemented.
• Boots pioneered the Carbon Trust carbon footprint label trial (with Walkers & Innocent)
• In store Point of sale material introduced in July 2007
• Advantage Card users have completed questionnaire on carbon labelling
• Boots are now working with the Carbon Trust to refine the methodology and labelling scheme
Materials66%
Distribution29%
Production5%
Retail>0%
Disposal>0.%
Distribution2%
Production0.3%
Materials5%
CONSUMER USE - 93%
water heating
Total Footprint Excluding Use Phase
PACKAGING
(bottles) 58%
Shampoo Carbon Footprint
Reducing the footprint
•
Use of 30% post-consumer recycled PET in bottles
Overall footprint reduced by 10%
•
Redesigning the logistics network
–
No cardboard or plastic sent to stores for around 80% of items supplied
Overall footprint reduced by 10%
Reducing the footprint –
Consumer Use
“You can help too. Using cooler water to wash your hair cuts CO2 emissions, reduces your energy
bills and is actually better for your hair.”
What can you do?
Comment: A high level of understanding of the part individuals can play.
Understanding the consumer use phase and options for personal actions are important to tap into this understanding.
Base:1029 Advantage Card Users w/c 7th September 2007
As an individual, do you think you can help to reduce carbon footprints?
82%
5%
13%
Yes
No
Not sure
Learnings – Supply Chain
• Carbon footprint must include all aspects of the Product Journey.
- Whole supply chain must be involved
• Data management requires co-operation across the supply-chain
• The process has improved supply chain co-operation (eg; logistics, supplier energy efficiency)
• Willingness for suppliers to become involved.
Summary
Challenges - Measurement
• Measurement is a complex process• Setting the system boundaries.
•Common data sets for materials / processes
= A need for common standards-UK Standard PAS 2050
Carbon footprinting – its place in wider sustainability?
Summary
For more information:
•On Product / Packaging [email protected]
(+44) 115 968 6766
•To Shop at Boots: www.boots.com
• On Boots Environment Management:http://www.boots-plc.com/environment/
Conclusions – Jon Woolven
• Collaboration is the best way to tackle carbon reduction • Sharing best practice is essential • We need an international standard for measuring
carbon footprints • We need to debate the best form of carbon
communication to consumers
Carbon Communication
Simple Detailed
Panel Session