This document discusses why an individual's carbon footprint matters. It notes that consumers are increasingly concerned about sustainability and the environment. Many companies are taking steps to reduce their carbon emissions in response to this consumer demand. Reducing carbon footprints also makes financial sense as farmers with lower emissions have lower costs of production. The entire supply chain from farm to consumer must work together to lower carbon footprints in order to remain competitive and defend against potential criticism of their environmental impacts.

1. Why does your carbon footprint matter?
Graham Wilkinson
Arla Foods
4 August 2010

2. Why does your carbon footprint matter?
Processor
Retailer
Farm
Consumer

3. SUSTAINABILITY
Companies moving forward
Consumers following in their
79%
“Companies should be penalised for
footsteps failing to care for the environment”
1 in 8 – companies should be
penalised for no action
76% 84%
“Suppliers think that sustainability
“Manufacturers have either stepped up
will play a great role in their trading their investment in sustainability or kept it
relations” the same during the recession”
Source:Future Foundation, 2009; IGD, 2010

4. Shoppers were asked what they feel
they can positively influence
Source: IGD, 2009

5. Carbon labelling is becoming more
prominent on packaging
CO2

6. Carbon labelling & the consumer
When prompted –
understanding of carbon
21%
27% Not heard
labelling among
Heard &
know what it consumers is strong
means
52% 68% identified correct
Heard but
unsure what
definition, rising to 72% in
it means
those concerned about
the environment
When it comes to the phrase ’carbon
labelling’ which of your following statements
comes closest to your view?
Source Pepsico/Populus

7. Opens First Zero Carbon Supermarket
Sustainable wood, LED lighting and a combined heat and power
plant powered with renewable fuel. no net carbon footprint and
exports back any extra electricity generated to the national grid
We'll be a zero carbon business by
2050 but only by working with our
suppliers and others across the
industry
£100m+ spend on green technology: Electric Car charging points,
CO2 refrigeration and combined heat and power plants that
generate green electricity

8. Retailer aims
Become a zero carbon business by 2050
Desire to become carbon neutral
Cut 30% absolute carbon by 2020 vs 2005 base
Cut Co2 emmisions by 25% by 2012 vs 2005/6 base
80% reduction by 2050 (34% by 2020)

9. “Our objective is to develop our business on
a foundation of long-term perspectives with
respect for, and in harmony with, our
surroundings.”
-Peder Tuborgh
“Arla's key principle is "Closer to Nature" and
therefore Climate Change and reducing
carbon are fundamental to our business.”
- Peter Lauritzen

10. Arla CUK: where are we now
Packaging
Our carbon footprint Logistics
4%
Operations 3%
3%
Logistics
30%
Operations
Farm
36% 90%
Packaging
34%

11. CUK Environmental strategy
• To achieve emissions targets which meet or exceed
Climate Change and key Voluntary Agreements, while
allowing Arla and our farmers to remain competitive.
• 34% reduction in CO2 emissions by 2020
• Renewable energy : 30% by 2020
• Water: 20% reduction by 2015
• Waste: Zero to landfill by 2012
• Meet Courtauld 2 targets: (10% carbon reduction by 2012)
• Meet Milk Roadmap Targets: 10% (2012) – 30% (2015) - 50% (2020)
recycled plastic in fresh milk bottles
• To form strategic partnerships with Customers and
Suppliers.
• To work consistently, proactively and collaboratively enabling
Arla to meet and exceed strategic Customer Expectations.

12. Arla CUK achievements to date
• 2005 to 2009 (despite increased production volumes):
• 9.6% overall CO2 reduction
• 14.3% reduction CO2 from our dairies
• 13.6% CO2 reduction from our packaging
• 11% water savings
• 53% less waste to landfill - Settle site (UHT & Butter) zero waste
to landfill achieved
• Courtauld 2 signatory
• Active involvement in many groups/initiatives:
• WRAP, Dairy UK, NISP, FTA Carbon Reduction

13. Legislation and media pressure

14. ’The agricultural sector is a substantial emitter of greenhouse
gases, but it has the potential to be a big part of the solution
to global warming as well’ – Climate and farming.org

15. Current retailer/AFMP work on farm
• Tesco funding methane trials on TSDG farms:
’By changing the way we farm we can get quick reductions in the
carbon footprint on your milk bottle’ – Dr Rob Smith
’I look forward to seeing how we can use the results with our dairy
farmers and the wider dairy industry’ – Emma Jones
• Asda:
• 60 carbon trust approved assessments on farm – ongoing work
• Health and culling monitor completed by supplying Asda farms
• On farm workshops covering welfare subjects – improved health =
generally improved carbon footprint
• Morrisons:
• Renewables report with University of Newcastle

16. Financial benefits
Financial efficiency Bottom 25% Average Top 25%
Cost of production (ppl) 28.9 28.7 25.4
Carbon footprint (CO2g/litre) 1,275 1,039 834
Carbon footprint as a % of the 122 100 80
average

17. AFMP environmental work
• Heat exchange units installed on several farms –
secured discounts through Fabdec and Mueller
• Renewable energy assessments completed on a
number of farms
• 2008 environmental survey completed - another
potentially in the pipeline
• Pilot project on vari-speed vacuum pumps
• Working with NFU on nutrient management planning
– Tried and Tested
• Promote case studies and best practice in publications

18. Why does your carbon footprint matter?
Farm Processor Retailer Consumer
• The consumer wants it – they buy the product
• The retailer wants it – we need a home for our milk
• Processors need to prove competitive advantage to retailers
• It makes financial sense to the whole chain and we need to work
together (LCA)
• We need to be proactive – if we don’t take action we will be told
• We need to ensure we are in a position to defend our industry from
any negative critisism