Hotspots, opportunities & initiatives Coffee v1.pdf ·  · 2013-07-26Variables affecting coffee impacts ... Trade, Rainforest Alliance, Bird Friendly Coffee and Coffee Farmer Equity

Hotspots, opportunities & initiatives

Coffee

Version 1

May 2013

The Product Sustainability Forum (PSF) is a collaboration of 80+ organisations made up of grocery and home improvement retailers and suppliers, academics, NGOs and UK Government representatives. It provides a platform for these organisations to understand, improve and communicate the environmental performance of the grocery and home improvement products. (www.wrap.org.uk/psf)

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How to use this deck

1. Please view in „Slide Show‟ to activate hyperlinks. 2. To access the slide‟s content either browse one

page at a time or use the navigation bar below to jump between the main sections. Throughout the deck there are links to external sources of interest.

3. A „Help‟ section is provided with more background information on this product summary, FAQs, terms of use and a list of other product summaries and reduction opportunities available to download.

4. We would like to encourage feedback on the contents of this deck. Please click the „Submit feedback‟ links on each page to contribute.

Introduction About this slide deck …

This slide deck summarises some of the key environmental hotspots relevant to this product category. It also provides examples of reduction opportunities to explore – and references key initiatives that could support your activities to improve product sustainability. This work has drawn upon a wide variety of evidence and is intended to be adapted for use by different business functions (e.g. procurement, R&D, etc.). It is important to note that, as every supply chain is different, the information provided should be used to guide further investigation.

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Hotspots – Coffee

Removing the outer pulp & mucilage through the wet processing method leads to high water consumption (40-70 litre/kg of green bean). Untreated wastewater sometimes an issue (10,13).

Consumer water heating – methods vary (e.g. kettle) & behaviour:15% - >65% of lifecycle GHG emissions (5,9,10,12,13). Responsible for some of the 230,000 tons/year avoidable UK consumer drinks waste (15).

Coffee plantations have been linked to land-use change, driving GHG emissions (15-53% of GHG emissions, 12) and habitat destruction, e.g. in Vietnam (1,8,13).

Fertiliser use is variable but contributes to energy use and GHGs (25% to 75% in cultivation phase). Potential for optimisation (4,5,9,12,13). Blue & green water use during coffee growing and plantation irrigation (3,17).

Notable primary & secondary hotspots

• The hotspots, left, can be

used to target efforts –

however actual

performance will be

dependent on the specifics

of your supply chain.

• Numbers in brackets denote

numbered reference in

references slide.

• Evidence level: High – Well

studied product, good

understanding of key

issues.

• 75% of Latin America, inc. Brazil - 1st global exporter, follows sustainable standards compared to 10% in Vietnam – the 2nd largest exporter of coffee (8).

• Coffee is often served with milk and sugar – increasing impact of this product (12).

• Some key variables that affect performance are explored on a later slide.

Notes

Coffee processing is energy intensive, drying (1,13) as well as roasting (13) & packaging (17).

Reducing waste reduces resource consumption at all stages upstream

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Initiatives & key resources

1 3,4,5

2 2

2 6

7 7 7

The initiatives and resources identified offer a range of potential business benefits, including: best practice guidance; knowledge sharing; innovation ideas; standards development; input or process certification; sustainability benchmarking; and communication.

Notes

1. Alliance for Water Stewardship – uses a standard to recognise and reward responsible water users and managers 2. Courtauld Commitment – responsibility agreement aimed at improving resource efficiency, incl. coffee jar lightweighting 3. Fairtrade – non-profit organisation who lends their logo to coffee meeting internationally agreed standard 4. Rainforest Alliance – non-profit organisation providing coffee certification 5. UTZ Certified – provides certification for coffee, cocoa and tea 6. Federation House Commitment – responsibility deal managed by WRAP to reduce water usage 7. Energy Savings Trust Recommended – label for the most energy efficient products, usually the top 20% of those available 8. 4C Association – platform bringing together over 260 coffee sector stakeholders to address sustainability issues 9. International Coffee Organisation – intergovernmental organisation representing 97% of world coffee production

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Variables affecting coffee impacts Cultivation and Green Bean preparation

Cultivation and on-farm processing of coffee contributes to deforestation, loss of biodiversity, eutrophication, depletion of water and energy resources, and erosion (1, 13). A range of factors affect the relative impact of coffee cultivation and green bean production:

‒ Three main forms of coffee cultivation are practised throughout the world: sun coffee, shade coffee and integrated open canopy coffee. Open canopy coffee cultivation has been shown to reduce the loss of biodiversity, deforestation and erosion compared to the other two methods (1).

‒ Robusta (29% of world production) (7) has higher yields but usually requires open sunny fields, while Arabica can be cultivated under shadier conditions.

‒ Using solar driers helps reduce electricity and wood use; the two main fuels used for coffee drying. Reducing wood use particularly, helps reduce logging pressure on tropical forest (1), (13).

‒ At least 90% of water used during on-farm processing of coffee beans can be avoided by substituting the traditional wet processing method, where the cherry and mucilage are removed by soaking, with mechanical separation (1, 13).

Roasting and Consumer use

Coffee is a commodity produced in less developed tropical regions but mainly consumed in developed regions. Roasting coffee usually occurs near consumption markets (9).

Reduced environmental and social impact has been shown for coffee labelled under schemes such as Fair Trade, Rainforest Alliance, Bird Friendly Coffee and Coffee Farmer Equity (6).

Both decaffeinated and soluble coffee require additional use of water during the roasting process, and decaffeinated coffee also requires a chemical treatment to remove caffeine (13).

Roasters use a variety of fuels (both fossil and biogenic) for roasting coffee beans to one of several roasting grades. The darker the roast, the more energy required for roasting.

Consumers affect the impact of coffee by choosing different coffee types (instant, decaffeinated, ground coffee), brewing method (drip, espresso, capsules), and by adding milk or sugar. Correct dosages, turning off equipment when not in use, and reducing waste coffee all lower the impact of a cup of coffee consumed.

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Hotspot references (1) The documents below have been used to identify primary and secondary environmental impact hotspots:

1. Arce V. C., Raudales R., Trubey R., King D.I., Chandler R.B., & Chandler C.C. (2009). Measuring and Managing the Environmental Cost of Coffee Production in Latin America.

2. Busser S., Steiner R. & Jungbluth N. (2008). LCA of Packed Food Products - the function of flexible packaging - case study coffee [PDF].

3. Chapagain A.K & Hoekstra, A.Y. (2007). The water footprint of coffee and tea consumption in the Netherlands

4. DEFRA, (2009). FO0404 Scenario building to test and inform the development of a BSI method for assessing greenhouse gas emissions from food - main report and technical annex.

5. Humbert S. & Loerincik Y., Rossi V., Margni M., & Jolliet O. (2009). Life Cycle assessment of spray dried soluble coffee and comparison with alternatives (drip filter and capsule espresso) [PDF].

6. Iisd (2004). http://www.iisd.org/pdf/2004/sci_coffee_labelling.pdf

7. International Coffee Organisation (2012). Coffee Trade Statistics 2012.

8. Mistiaen, V., (2012). A better future is percolating for Vietnam’s coffee. The Guardian.

9. Nestle (2012). Life cycle assessment: understanding our environmental performance.

(Continued on next slide)

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Hotspot references (2) The documents below have been used to identify primary and secondary environmental impact hotspots:

10. Salinas B. (2008). Life Cycle Assessment of Coffee Production [PDF].

11. Salamone R. (2003). Life Cycle Assessment applied to coffee production: investigating environmental impacts to aid decision making for improvements at company level [PDF].

12. Tesco (2011). Coffee footprint. Confidential.

13. Viere, T., Enden, J., Schaltegger, S. (2011). Chapter Two: Life cycle and supply chain information in environmental management accounting: A coffee case study.

14. WRAP (2009). Efficient use of resources in hot drinks packaging design [PDF]

15. WRAP (2009). Household Food and Drink Waste in the UK [PDF]

16. WRAP (2011). Recycling of laminated packaging [PDF]

17. WRAP (2013). An initial assessment of the environmental impact of grocery products [PDF]

18. WRAP (n.d.). Cut the cost of coffee in an instant [PDF]

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Reduction opportunities

Reduction opportunities

The PSF has researched „reduction opportunities‟, „action plans and topic guides‟ relevant to the grocery sector. Below are a selection relevant to coffee. Follow the links to find out more about each opportunity. For a full list of resources available see the Help section. While many of the opportunities are not tailored specifically to coffee – the principles and resources are transferable. Where they target a hotspot they are flagged red.

• Benefits of improved soil management • Crop irrigation best practice • Precision agriculture • Closed-loop recycling • Renewable packaging materials • Boiler energy efficiency in food & drink

processing • Water re-use in food and drink processing • Extending product shelf life • Reducing kitchen energy use • Reducing consumer food waste • Capital allowance for green tech

Hotspot

• Harmonising smart planning (manufacturers) and demand forecasting (retailers)

• How to participate in the closed loop economy through waste exchange

Action plans

Topic guides

• Demystifying and de-risking land use change

• Implementing a sustainable procurement process for raw materials

• Best practice in embedding sustainability in product design

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Benefits of soil management Product sustainability opportunity

Despite soil being a fundamental natural resource upon which agricultural production relies, it is consistently undervalued and is in a state of global decline. Some 40% of soil used for agriculture is either degraded or seriously degraded, and estimates suggest we have lost ~70% of global topsoil – the layer of soil allowing plants to grow (1). Healthy soil can act as a buffer against climate change; UK soils alone contain 10bn tCO2, 50 times the UK‟s annual emissions (3).

Other key resources & initiatives

1. See also How to use digestate as a fertiliser substitute action plan

2. World Economic Forum interview with Professor John Crawford (University of Sydney), a world expert on soil 3. Protecting our Water, Soil and Air – gives a good practice guide for soil management 4. Safeguarding our Soils – A Strategy for England – outlines Defra‟s strategy for sustainable soil management by 2030 5. Soil Protection Review – outlines the regulatory compliance and benefit schemes for soil management 6. Profiting from soil organic matter – a guide to improving soil organic matter management

UK soils face three main threats (3): 1. Soil erosion – 2.2mt topsoil is eroded p.a. in the UK at

a cost of £45m, incl. £9m in lost production 2. Organic matter decline – severely reduces soil

quality, holding less water, and costing £82m p.a. 3. Compaction – reduces productivity, but is reversible

through land management practice Soil management best practice will include any of the following practices: reduced tillage, nutrient management, encouraging stubble, and managing overgrazing (1).

Threats & remedial measures Case studies – Pigs & arable

An arable farm showed a net benefit of £27/ha over a 7 year period incorporating straw as organic matter. Fuel costs dropped 20-30% as tractors required less power to drive on healthier soil (5).

A 320ha farm with a 300 sow pig unit saw an increase in net profit of over £60/ha in a 10 year period. The farm uses pig waste as farmyard manure, saving 60-80 units/year of inorganic fertiliser equivalent (5).

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Crop irrigation best practice Product sustainability opportunity

Irrigation water (included in „blue water‟ in water footprinting) is extracted from freshwater lakes, rivers and aquifers. It is estimated that climate change may increase irrigation demand by 20% by 2020, and 30% by 2050 (2). Globally, 70% of blue water is used for irrigation. The environmental impact of irrigation will depend on local water management infrastructure and water scarcity. There are opportunities to reduce water demands by better use of technologies and management practices.

Other key resources & initiatives 1. Defra Irrigation Survey 2010 – covering volumes, costs of water, irrigated areas of crops & management practices undertaken 2. Protecting our Water, Soil and Air – Defra best practice guide for water, soil and air management 3. Save water and money – irrigate efficiently – Natural England & Cranfield University guide to efficient irrigation 4. Water for Business – initiatives guiding sustainable water management in the private sector 5. Simply Sustainable Water – advice from LEAF on Six Simple Steps for managing water quality & use

Irrigation recommended practice

Crop irrigation best practice can elicit substantial financial savings – in fact, 50% of respondents to the Defra 2010 Irrigation Survey stated finance as the driver behind employing more efficient water management (3). Savings can be made through simple steps: • Properly plan the irrigation system • Ensure the irrigation system is working properly • Schedule irrigation to reduce water use • Properly manage irrigation use • Properly measure the irrigation system • Prevent and reduce water losses through leaks

Hotspot

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Case study – Innocent

Innocent source some of their strawberries from Spain which can suffer from severely water stress. Water flow in some Spanish regions has reduced by 80% in 100 years. Innocent are continuing a water engagement policy in Spain to be implemented through three phases. • Phase 1 Gather data regarding water usage in these areas

• Phase 2 Facilitate workshops with local farmers • Phase 3 Support the implementation of best irrigation and

water management practice specific to the region which has the potential to reduce water use by up to 25%

Precision agriculture Product sustainability opportunity

A common definition of precision agriculture (PA) is the application of inputs at the right time, in the right place, in the right amount, from the right source, in the right manner (1). Key to PA is the realisation that while on a 1000ha farm in the U.S. PA might involve sophisticated informational systems and a suite of autopilots, PA on a 0.5ha farm in India may simply involve a team of highly skilled workers, and improved knowledge transfer. One report suggests that a 20% improvement in

nutrient use efficiency by 2020 would reduce use of nitrogen fertilizer by 20 million tonnes annually. This in turn could

produce a net saving worth around £110 billion per annum (4).

Other key resources & initiatives

1. Precision agriculture: challenges and opportunities in a flat world – proceedings from the 19th World Congress of Soil Science 2. The National Centre for Precision Farming – research platform for PA run by Harper Adams University 3. Potential for information technologies to improve decision making – summary of PA technologies for the livestock sector 4. Our Nutrient World – report framing the challenge of producing more food with less nutrient input 5. Further precision farming links provided by Harper Adams University, including HGCA precision farming advice 6. Centre for Precision Agriculture – UK forum, including case studies

Case study – Microdosing in Africa Case study – PepsiCo UK & i-crop

PepsiCo UK have invested in i-crop and Cool Farm Tool as part of their 50 in 5 campaign. By 2011, 70 of PepsiCo‟s British suppliers had adopted the technologies. This has led to growers achieving a 7% reduction in carbon output and a 10% drop in water use.

Research carried out for the International Crops Research Institute for the Semi-Arid Tropics has led to the introduction of microdosing applied directly to plants using bottlecaps for measurement. This simple technique to apply the right amount of fertilizer has led to increases in yield of 44-120%, as well as income increases of 50-130%.

Hotspot

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Closed-loop recycling Product sustainability opportunity The adoption of a circular economy offers considerable economic benefits (1). Strictly defined, „closed-loop recycling‟ is where recycled material from one product is wholly, or partially incorporated back into the same product. In contrast, „open-loop recycling‟ is where recycled material is used for another purpose (2). Certain materials are better suited to this process. Glass, aluminium, steel & plastic recycling can reduce energy, GHG emissions & water use without affecting performance, e.g. recycling ink cartridges – see case study below (3).

Other resources & initiatives

1. WRAP's vision for the UK circular economy to 2020 – outlines the benefits of pushing the UK economy towards circularity 2. Recycled Content Fact Sheet – Incpen guidance on recycled materials 3. Driving Sustainable Consumption: Closed Loop Systems – World Economic Forum report providing overview of closed loop systems 4. Closed Loop Recycling – Opening The Door To Cost Saving – WRAP case study of closed-loop recycling 5. Ellen MacArthur Foundation (EMF) – works with education & business to accelerate the transition to a circular economy 6. Environmental Benefits of Closed-Loop Glass Recycling – WRAP information supported by a glass collection directory

Closed-loop recycling ensures a long term relationship between customers and suppliers and provides a revenue from recovered material, whilst at the same time reducing the amount of waste sent to landfill (2). A closed-loop system operator will need to ensure the manufacturing process allows for the introduction of recycled material and that there are appropriate logistics and distribution networks to control the flow of recovered material (4). Additionally the cost of collection, and possible use of 3rd party collecting centres, may be an extra economic and organisational burden (3).

Benefits & barriers Case study – HP ink cartridges

HP ink cartridges are retrieved by post and disassembled following consumer use. PET pellets from packaging are combined with recycled drinks bottles and formed into new cartridges. To date, individual cartridges are recycled up to 10 times and have a 33% smaller carbon footprint per cartridge.

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Renewable packaging materials Product sustainability opportunity

Increasing the use of renewable materials is a key part of improving product sustainability. However, like any material, their use should be carefully considered to avoid unintended environmental consequences and deliver intended business benefits. Bioplastics cover a range of materials which are bio-based, bio-degradable or both (see 1 for definitions). Bio-based plastics can be derived from primary crops (e.g. sugarcane) or waste plant material. The sustainability benefits and trade-offs will largely depend on the raw material used and the specifics of the solution being considered.

Other key resources & initiatives 1. Biopolymer packaging in the UK grocery market – briefing note 2. Consumer Goods Forum Global Packaging Project – includes guidance on the use of renewable materials in packaging 3. European Bioplastics – organisation supporting the growth in use of bioplastics 4. European Renewable Resources and Materials Association – highlights best available technology and organisations 5. NNFCC – advises on bio-based materials (e.g. bioplastics factsheet) and co-ordinates the Renewable Materials LINK Programme 6. The WRAP The International Packaging Study and Resource Efficient Innovations Database contain examples of biopolymers

Bioplastics are being used more as a point of differentiation, and for the positive consumer perceptions associated with the term „biodegradable‟ or „compostable‟ (1). The main unintended environmental consequences relate to the sourcing of raw material feedstock. Where primary crops are used, there are concerns over competition with food and the impacts of non-renewable agricultural inputs (e.g. fertilizers & fuel). However, increased use of bio-based material also requires more sophisticated EoL solutions. Bio-based materials would need to be efficiently identified and disposed of by consumers so as not to contaminate waste streams.

Benefits & barriers Case study – Plant Bottle

Coca-Cola have developed bottles which contain PET derived from plant material. According to Coca-Cola the benefits include: • 30,000 tonnes CO2e saved • Stimulates plant waste market to develop polymers from other sources Learn more on the Coca-Cola website.

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Boiler energy efficiency in F&D Product sustainability opportunity

Boiler replacement

Flue gas/boiler blow down heat recovery

Monitor energy use, carry out boiler maintenance

Boilers play a central role in food and drink manufacturing, consuming up to half of total fuel in the sector (1). The key business driver for addressing boiler energy efficiency is the increasing cost of energy. Common approaches include: regular maintenance, looking at the potential for recovering waste heat, and boiler replacement (see hierarchy below).

Other key resources & initiatives

1. IGD - Energy efficiency measures website highlights boilers as key energy user in grocery sector, and suggests some basic solutions 2. Enhanced Capital Allowances – provide tax relief for energy efficient industrial purchases, improving cash flow 3. The Energy Technology List – a list of equipment that qualifies for ECAs, useful for aiding boiler selection 4. Steam and high temperature hot water boilers reductions guide from The Carbon Trust for staff involved in regular boiler operations

Case study – Heinz

The Heinz manufacturing site in Wigan has achieved impressive efficiency gains through targeting their boiler house operations. Heinz has increased its boiler house energy efficiency to ~90% by installing a heat exchanger, and developing regular steam trap maintenance. The benefits: • 9,000tCO2 reduction p.a. • Payback period of 18-19 months • Steam trap maintenance alone gives a

cost return of 10:1 and CO2 savings of 884t p.a.

Boiler energy savings hierarchy

(Adapted from Carbon Trust 2012)

Cost

Hotspot

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Through the optimisation of clean-in-place systems and the re-use of production waste water, a Kraft site has achieved reductions in potable water use (4): • 4 year project • Invested AUS$3.2million • Avg. payback: 3 years • 39% reduction in water use • Savings of 74 million litres per year The site has also partnered with a construction group to re-use 10million litres of water per year for road compaction and dust compression turning waste water into a secondary commodity.

Water re-use in F&D processing Product sustainability opportunity Food & drink manufacturing used 7.5% of industrial water consumed in the UK in 2009 (1). Water is typically used for cleaning and sterilising machinery and working environments, but is also used for transportation or used as an ingredient (particularly in alcoholic and non-alcoholic drinks) (2). One of the main drivers for water use reduction is concern for future water scarcity.

Other key resources & initiatives

1. Greener Business. Food and Drink – Environment Agency overview of the environmental impacts of the F&D sector 2. Federation House Commitment – voluntary initiative aiming to help industry target of cutting water use by 20% by 2020 3. Casani, S., et al. 2005. A Discussion Paper on Challenges and Limitations to Water Re-use and Hygiene in the Food industry 4. Saving Water Makes Us Happy Little Vegemites – document detailing Kraft water savings at their Port Melbourne site 5. Beverage Industry Environmental Roundtable (BIER) – supporting environmental engagement through meetings and working groups 6. Manufacturing Introduction – introduction to manufacturing water use written by the Alliance For Water Efficiency 7. CDP Water Program – good resource for company water reports and case studies

Reducing water use decreases initial outlay of water costs and reduces the volume, and associated costs, of wastewater leaving a processing site. Additional savings of time, energy and chemical outlay can be made through the decreased need to pre-treat as much water. Uncontaminated water, e.g. cooling water, can be re-used for irrigation, sanitary water supply, line lubrication, facilities maintenance, further cooling/heating or other cleaning processes. A key barrier to increased water re-use in the F&D sector is hygiene – although this issue can be an overcome with adherence to strict hygiene procedures (3).

Benefits & barriers

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Case study – Kraft

Hotspot

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Extending product shelf life Product sustainability opportunity WRAP figures from 2011 (1) highlight the level of wastage of perishable products in retail and the household. Consumers are currently throwing away around £6.7 billion of food and drink each year due to it „not being used in time‟ (2). Increasing product life may help reduce this waste where the change could be made without compromising food safety or food quality criteria (3). Products and ingredients wasted in retail & distribution amounted to 0.4mt. Clearly, extending shelf life can improve the environmental performance of products.

Other key resources & initiatives 1. WRAP Handy Facts & Figures: UK Retail & Hospitality/Food Service – gives wastage figures for retail & hospitality sectors 2. WRAP Estimates for household food and drink waste in the UK 3. WRAP also encourages the correct application of date marks, and clear consumer communication 4. WRAP‟s Milk Model – simulating food waste in the home by modelling the impact of purchases and consumption 5. WRAP Product Life Feasibility Study – examined how manufacturers and retailers set product life 6. WRAP Courtauld Commitments Phase Two Case Studies November 2012 – WRAP report providing list of useful shelf life case studies

Case study – ASDA’s ‘Faster Fresh’

„Faster Fresh‟ is an initiative improving shelf life for ASDA (6). The company has increased the shelf life of 1,572 chilled products by an average of one day whilst maintaining their low price offer. This has been achieved by: • Working with 407 suppliers to reschedule

inbound flows • Improving delivery plans to cut down on

road miles • Developing new and simplified systems in-

store to get products to shelf faster and support better stock rotation

Latest research

Available shelf life impacts strongly on waste, as just one

day could reduce the amount of milk thrown away by up to

40% (4). The food industry has introduced many innovations

to increase product life, for example through packaging re-

design, processing technology or product formulation, and

WRAP wishes to encourage these innovative approaches. A

feasibility study into how product life is set within the retail

supply chain (5) found there is potential to deliver product life

benefits through providing more of a product’s maximum life

to consumers, by reducing the buffer between actual and

maximum life, and reducing the dwell time that products

experience in the supply chain.

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Reducing kitchen energy use Product sustainability opportunity Energy used for cooking and chilling foods is a major contributor to household and food supply chain energy consumption (1, 2) – particularly those products stored chilled or frozen, or those that require extended periods of cooking. Opportunities for businesses to influence consumer energy use include product eco-design and consumer communications.

Other key resources & initiatives

1. Energy Consumption in the UK – annual publication produced by DECC providing review of domestic energy consumption 2. Defra Food Statistics Pocketbook – highlights the importance of consumer energy use in food supply chain 3. Carlsson-Kanyama, A., Bostrom-Karlson, K. 2001. Energy Use for Cooking and other Stages in the Life Cycle of Food 4. Incorporated Principles in Action Summary – a review of Mars‟ main activities in 2011 5. McDevitt, J. E., and Mila i Canals, L. (2009) Life cycle assessment for the Ecodesign of UK porridge oat plant varieties.

Consumer education and product re-designs can help reduce the energy needed to cook foods – and also improve the consumer cooking experience (see right). One option is to recommend that the most efficient cooking modes are used (for example, to cook one portion of potatoes in the microwave requires 1.5MJ of energy, whereas a conventional oven would require 6MJ) (3). Chilling & freezing also have energy reduction opportunities, including amongst others: cooling food before putting it in the fridge/freezer; defrosting food in the fridge; optimal fridge/freezer room placement, etc.

Benefits and approaches Case study – Rice and oats

The part-cooking of Uncle Ben’s rice at processing stage reduces consumer cooking time by 10 minutes (50%). Because of the efficiency of large scale cooking, overall greenhouse emissions were reduced by 18% (4).

Researchers at Unilever have explored the potential for growing varieties of oats which require less cooking. By taking a full life cycle approach, environmental improvements are possible at consumer stages through changes in product design through variety selection (5).

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Reducing consumer food waste Product sustainability opportunity

In the UK, 7.2 million tonnes of food and drink is wasted every year, 4.4 million of which is avoidable. The average UK household currently spends £480 on wasted food every year, totalling £12 billion overall. WRAP reported a significant reduction between 2006/7 and 2010 (13%) (1) but a range of opportunities exist for retailers and manufacturers to help further reduce this waste, and deliver significant financial (for customers) and environmental benefits.

Other key resources & initiatives

1. Household food waste resource listing – summary of WRAP partner resources to use to reduce household food and drink waste 2. Courtauld Commitments Phase Two Case Studies November 2012 – WRAP report providing a list of useful case studies 3. Love Food Hate Waste partners site – wide range of resources available for partners to use free of charge 4. New estimates for household food and drink waste in the UK – WRAP report providing food waste estimates for 2011 5. What retailers and brands are doing to help you reduce food waste – Love Food Hate Waste report

Raising awareness and enabling behaviour change

Case studies: Changes to products

Changes to products, packaging and labelling makes it easier for consumers to buy the right amount and use what they buy. • M&S were the first to introduce „freeze

before the date‟ labelling, replacing „freeze on day of purchase‟, giving consumers more flexibility to freeze what they may not eat in time.

• „Display until‟ dates are being removed by many retailers and brands, reducing confusion and giving prominence to the important dates.

• ASDA launched new packaging for their extra special Royal Jersey potatoes that increases shelf life and reduces waste

A combination of large-scale campaigns and local engagement is an effective way to help consumers realise the benefits of throwing away less food, and giving them the tools and confidence to make small changes to the way they shop, store and cook food. Morrisons Great Taste Less Waste had regular articles in their magazine and on-line tips and advice, whilst Sainsbury‟s Make your roast go further campaign provided its customers with leftover recipes designed to incorporate key ingredients from a roast. The Co-op regularly includes Love Food Hate Waste messages on till-screens, reaching millions of customers in store.

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Capital allowance for green tech Product sustainability opportunity The Enhanced Capital Allowance (ECA) scheme is managed by the Carbon Trust on behalf of HMRC and DECC. It allows businesses to claim a 100% first year capital allowance on certain energy and water-saving equipment against the taxable profits of the period of investment. Even if the company surrenders a loss in that tax year, it can still claim 19% of the capital costs (1). The Energy and Water Technology Lists (2,3) provide practical platforms to source new equipment.

Other key resources & initiatives

1. The Enhanced Capital Allowance scheme for energy-saving technologies – Carbon Trust‟s guide to the scheme 2. The Energy Technology List – DEFRA‟s list of approved energy-saving equipment 3. The Water Technology List – DEFRA‟s list of approved water-saving equipment 4. HMRC‟s guide to first year allowances

Müller Wiseman Dairies (formerly Robert Wiseman) utilised the ECA scheme to invest £1.5m of capital towards their “Environmental Excellence Roadmap”, including installing two new low loss transformers, helping to achieve: • An 18% saving on electricity • A 7% saving on gas consumption • An overall saving of £100,000 • Emissions reductions of 353 tCO2 p.a. The full environmental measures taken by staff at the plant can be seen here.

Case study - Jaspers Case study – Müller Wiseman Dairies

Jaspers, a family-run abattoir in Treburley, Cornwall, uses 17,000m3 water p.a. They chose to install a water recycling system from the Water Technology List (3), reclaiming capital through the ECA scheme. The installation: • Re-uses 90% of water for washing animal

sheds and vehicles • Saves £10,000 p.a. • ECA reduced payback period to 4.5 years Financial controller Michael Armstrong explains how selecting the right system allowed Jaspers to claim an ECA here.

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Smart planning and demand forecasting Action Plan

Resources

1. WRAP – Reducing Food Waste through Retail Supply Chain Collaboration 2. WRAP – Waste arisings in the supply of food and drink to households in the UK 3. WRAP – New estimates for household food and drink waste in the UK

Implementation Process

Opportunities to reduce wastage from:

a) increased visibility of wastage quantities generated by manufacturer and retailer b) smarter stock control systems c) smarter stock allocations d) better communication between manufacturers and retailers e) joint responsibility for waste generated and f) flexible commercial arrangements

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Action Plan

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Manufacturer

Quantify

waste

Review ordering

and inventory

management

systems

Engage retailer

on opportunities Individual

reviews between

retailer and key

suppliers

Trial of selected

opportunities

and cost /

benefits

delivered

Implementation

and monitoring

Retailer

Engage

manufacturer(s)

on opportunities

Implementation

and monitoring

• Waste in the supply chain is estimated to cost food retailers and manufacturers £5bn annually. • Sales forecasting of food products is affected by a number of factors like weather patterns, promotions and

competitive activities, which poses a challenge for retailers and manufacturing when planning production runs. • There is potential to save up to 1% of turnover by reducing packaged food waste and from less discounting. • This Action Plan is designed to help procurement teams of retailers and manufacturers to reduce waste from poor

forecasting and planning.

[Details of each step of the implementation process are in the Action Plan]

Participating in waste exchange Action Plan All businesses produce waste that they cannot reduce further, re-use in their processes or send for recycling. For manufacturers, distributors and retailers involved with grocery products 5 million tonnes of food product related waste (excluding packaging) is sent to landfill each year(1). Establishing a mutually beneficial waste exchange arrangement with other organisations can reduce waste, material and processing costs and impacts. This may include involvement in food redistribution projects, supplying food waste and by-product materials for recycling or equipment and material reuse schemes.

Resources 1. WRAP - Waste arisings in the supply of food and drink to households in the UK 2. DEFRA - Guidance on the legal definition of waste and its application - a practical guide for businesses and other organisations 3. SEPA - Is It Waste - Understanding the definition of waste and supplementary guidance 4. WRAP - How to apply date labels to help prevent food waste 5. Environment Agency - A guide to when electrical and electronic equipment is considered waste and the controls that apply 6. WRAP - Workforce partnerships for resource efficiency

Implementation Process

This Action Plan focuses on the steps and business case for taking part in a waste exchange arrangement as a waste producer or recipient. In doing this consideration needs to be given to regulators waste classifications (2, 3).

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Action Plan

2: Business case 3: Identifying partners 4: Trialling & monitoring 5: Embedding & review 1: Determining value

Initiate a small scale trial with one type of waste with one organisation. Key factors to agree: Quantity Material performance Storage and transport Regulatory

requirements Health and safety

Producer: Quantify the volume & characteristics of any waste materials, energy, water or by-products.

Recipient: Define the material needs, including volume and characteristics, of your operations

Involve operational and management staff in assessing: Business benefits Investment

requirements Risks Operational changes

Priorities: Amounts, quality

and consistency of supply of materials

Compliance with grocery labelling requirements (4)

Compliance with waste responsibilities (5)

Implement new contracts, operational procedures and training

Understand who needs to buy-in to change. Consider a workforce partnership approach (6)

Establish a programme of review

Reducing Land Use Change risk Topic Guide If you use agricultural or forestry raw materials in your supply chain, then your brand and reputation could be at risk from destructive land use change (LUC). Products such as soy, palm oil, beef, wood/paper and biofuels have in many cases been linked to deforestation, land grabs, loss of natural habitats, damage to local livelihoods and the release of large amounts of CO2 from lost vegetation and soils. However, it should be possible to avoid or reduce these risks.

Resources

1. Food Climate Research Network (FCRN) – Carries out research and publishes reports into the climate impacts of our food supply 2. Sustainable Sourcing Guidelines – Food and Drink Federation guide for managing supply chain risk 3. WWF LUC Guidance – Information about the LUC impacts of key products, and recommended actions

Implementation Process

This Topic Guide focuses on how to make an analysis of LUC risk, and also suggests starting points for improvement. Identifying risk should be assessed against two main areas:

1) Strategic exposure

2) Supply chain vulnerability

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Topic Guide

(1) Risk

Screening

All raw materials

Analysis of

objectives:

What matters to

your business? Strategic

exposure

Generic

policies

(2) Detailed

Diagnostics

Carried out on a

sub-set of high risk

/ high priority raw

materials

Product-

specific

specifications

and initiatives

Supply chain

vulnerability

Preparation of

info systems:

What do you sell,

and what is it

made of?

1. Alignment 2. Risk analysis 3. Implementation

Hotspot

Sustainable Procurement of Raw Materials Topic Guide

Raw materials (RMs) used in grocery products present both sustainability opportunities and risks to businesses, whether they are producers, manufacturers or retailers. This Topic Guide describes the overall process for implementing sustainable RM procurement to reduce risks, achieve lower costs and encourage innovation. Procurement‟s role here is to work in a structured way with product development and supply chain management partners to identify and pursue opportunities.

Resources 1. Food & Drink Federation - Sustainable Sourcing: Five Steps Towards Managing Supply Chain Risk 2. Defra - Sustainable Procurement Prioritisation Tool 3. WRAP - Reducing Food Waste through Retail Supply Chain Collaboration 4. SAI Platform - Practitioner‟s Guide for Sustainable Sourcing of Agricultural Raw Materials 5. UN Global Compact - Supply Chain Sustainability guide

Implementation Process

The process follows a step by step approach to ensure that raw material procurement takes account of sustainable aspects by thorough risk and opportunity analysis, and by working closely with key suppliers.

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Topic Guide

1. Mapping 2. Identify 3. Review 4. Select 5. Plan 6. Implement

Retailer

Map how

sustainability is

currently included

in procurement

processes

Identify key RMs

through a spend

and risk analysis,

and map their

current sourcing

For each key

RM review

impacts and

risks along the

supply chain

Select key suppliers

and engage to

jointly review

impacts, risks and

opportunities

Develop joint

action plan and

implement with

selected

suppliers

Track progress,

review and

communicate to key

stakeholders.

Review learnings

and repeat process

for a cycle of

continuous

improvement

Manufact

urer /

Supplier

Map how

sustainability is

currently included

in procurement

processes

Identify key RMs

through a spend,

risk and product

sales analysis, and

map their current

sourcing

For each key

RM review

impacts and

risks along the

supply chain

Identify key

customers and

suppliers and

discuss impacts,

risks and

opportunities

Develop joint

action plan and

then implement

with selected

customers and

suppliers

Hotspot

Proposal/ briefing

Product design

Production Launch Post-

launch review

Embedding sustainability in product design Topic Guide Over 80% of all product-related environmental impacts can be influenced during the design phase, presenting an opportunity for designers to adopt more sustainable practices and in turn contribute towards lower impact products and services. The challenge is to incorporate sustainable design principles into R&D processes, and to embed Ecodesign principles within the business sustainability strategy and brand positioning considerations.

The business benefit include cost reductions, brand and reputation enhancement. This approach may also meet future customer demand for products and services with reduced environmental impacts.

Resources

1. Defra sustainable product roadmaps – life cycle assessments, research and initiatives to improve environmental impact of products 2. WRAP circular economy – research and information on the circular economy (recapture & reuse of resources) 3. Eco SME – resources on Ecodesign for small businesses 4. Centre for Sustainable Design Ecodesign Strategy Wheel – Ecodesign consultancy for business 5. Eco3 Design consultancy – integrating Ecodesign into R&D

Implementation Process

This Topic Guide focuses on how to adapt conventional design into Ecodesign, starting with R&D. Embedding Ecodesign encompasses five main stages:

1) Identify design improvements

2) Compare design alternatives

3) Set Ecodesign strategy

4) Develop communications plan

5) Pilot and review of programme

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Topic Guide

Identify

design

improvements

– review

products in

context of

sustainability

strategy

Comparison

of design

alternatives –

develop new

products or

make changes

to existing

products

Ecodesign

strategy

setting –

agree

principles

aligned to

strategy

Communicate

environmental

benefits of

products

Pilot and

embed

programme.

Review and

feedback on

process

Help section

This section contains background information on the contents of this slide deck, including:

1. Frequently Asked Questions (FAQs)

2. Terms of use/Disclaimer

3. Product summary list – 50 product summaries are available covering food, drink, household and personal care categories

4. Reduction opportunities – a list of all those developed to date

5. Action plans & topic guides – a list of all those developed to date

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FAQs

1. What is the Product Sustainability Forum (PSF)? The Product Sustainability Forum is a collaboration of 80+ organisations made up of grocery and home improvement retailers and suppliers, academics, NGOs and UK Government representatives. It provides a platform for these organisations to understand, improve and communicate the environmental performance of the grocery and home improvement products. Website: www.wrap.org.uk/psf

2. What are the five PSF ‘metrics’? To date, the PSF has focused on the performance of products across five core environmental „metrics‟: energy use, water use, waste generation, material use and greenhouse gas emissions. A more detailed discussion of the work done on these five metrics is available in a published PSF report entitled “An initial assessment of the environmental impact of grocery products”. The PSF is also beginning to look at the biodiversity impact of products.

3. What do the red and orange shading denote on hotspot matrices? Red cells highlight stages within the value chain which are

often the primary source of impact for the metric in question (e.g. greenhouse gas emissions, energy use, etc.). Orange cells are

typically secondary sources of impact. These are qualitative assessments to highlight likely hotspots and should be used to focus

further investigation.

4. How are ‘Primary’ and ‘Secondary’ hotspots identified? Primary and secondary hotspots have been identified using a range of sources – but mainly publicly available life cycle and sector-level research into resource use and environmental impacts. These are fully referenced within the deck. Primary hotspots are those which, according to the evidence identified, are likely to contribute the most to the metric in question (e.g. agricultural stages dominate the carbon footprint of dairy products). However, due to the varied and patchy nature of the evidence, some summaries are more complete than others – and in many cases, hotspots have been estimated based on proxies. To guide users a qualitative „evidence level‟ score has been developed to highlight any significant data gaps. As every supply chain is different, this information should be used to guide further research into your own supply chain.

5. Which other product summaries are available and where can I get them from? A summary of products researched to date is available at the end of this deck.

6. How can I submit ideas/comments for future revisions of this PowerPoint deck? Click on the „Submit feedback‟ link at the top right hand side of each slide to send feedback to the PSF team.

7. How can I use this content? See our „Terms of Use‟ slide.

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Terms of use

• While we have tried to make sure this slide deck is accurate, we cannot accept responsibility or be held legally responsible for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. You can copy it free of charge as long as the material is accurate and not used in a misleading context. You must identify the source of the material and acknowledge our copyright. You must not use material to endorse or suggest we have endorsed a commercial product or service. For more details please see our terms and conditions on our website at www.wrap.org.uk.

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Product summary list

Bananas Bath & shower products Beef Biscuits Bread & rolls Breakfast cereals

Butter

Cakes, pastries, etc.

Canned meat

Coffee

Canned vegetables Carbonates Cat & dog food

Cheese Chocolate Cider & perry Deli-food Deodorant

Nappies

Dishwashing products

Fish & seafood

Frozen vegetables

General cleaning products

Ice-cream & frozen desserts

Lamb Margarine

Pork Potato crisps Potatoes Poultry Pre-packed sandwiches Ready meals

Rice Spirits

Sugar confectionery Tea

Toilet & kitchen rolls Tomatoes

Processed snacks

Yogurts

Dilutables

Beer

Laundry detergent

Eggs

Wine

Juices

Onions Pizza

Canned seafood

Milk & cream

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Reduction opportunity list

• Addressing „green water‟

• Benefits of soil management

• Crop irrigation best practice

• Precision agriculture

• Rolling out agricultural GHG tools

• Sourcing palm oil responsibly

• Sugar crop sustainability

• Sustainable fisheries & aquaculture

• Sustainable forestry products

• Water efficiency in livestock farming

• Closed-loop recycling

• Drinks packaging optimisation

• Renewable packaging materials

• Boiler energy efficiency in F&D

• CIP for resource efficiency

• Identifying the true cost of waste

• Increased efficiency of in-store bakeries

• Increasing motor drive efficiency

• Product re-formulation

• Water efficiency in drinks manufacture

• Water efficiency in meat processing

• Water re-use in F&D processing

• Extending product shelf life

• Food redistribution

• Shared logistics opportunities

• Improving consumer portioning

• Reducing kitchen energy use

• Reducing consumer food waste

• Water efficiency in the home

• Capital allowance for green tech

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Action plan & topic guide list

Action plans

• Harmonising smart planning (manufacturers) and demand forecasting (retailers)

• How to participate in the closed loop economy through waste exchange

• How to use digestate as a fertiliser substitute

• Refrigeration best practice in food and drink chill chains

• Securing crop supply through whole crop purchasing

Topic guides

• Demystifying and de-risking land use change

• Implementing a sustainable procurement process for raw materials

• Lowering the impact of pig feed soya

• Effective commissioning of LCAs/footprint studies

• Engaging colleagues on sustainability

• Engaging suppliers on sustainability

• Best practice in embedding sustainability in product design

• How to identify high sustainability, reputation, supply chain risk and resilience

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