How to Reduce Your Carbon Footprint: Three Steps to Carbon Reduction
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How to reduce your carbon footprint Most retailers and manufacturers are seeking to reduce their carbon footprint either to combat climate change or in response to escalating energy prices. This session will consider what the industry has learned so far and the scale of the challenge ahead. It will discuss how to measure carbon and how companies can work together to drive reductions. It will provide practical examples of businesses that have reduced their carbon footprint and consider longer term implications of the drive towards a low carbon economy. Speakers: Euan Murray, Carbon Trust; Jon Woolven, IGD; Jon Wright, Innocent Drinks. Facilitated by IGD.
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How to Reduce Your Carbon Footprint: Three Steps to Carbon Reduction
- 1. How to Reduce your Carbon Footprint IGD Overview ECR Europe Forum, 29 May, Berlin Nick Downing, Sales Manager
- 2. 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
- 3. 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”
- 4. Company Carbon Footprint - Casino
- 6. Why reduce your carbon footprint? Reason 1 – Climate Change Source: European Commission’s "You Control Climate Change" website
- 7. Why reduce your carbon footprint? Reason 2 – Customer Demand France 70% 37% Netherlands 54% 34% UK 53% 31% Spain 34% 15% Interest Germany 31% 17% Actively look to buy Poland 31% 12% Are you interested in/actively looking to buy environmentally friendly products? Source: IGD 2008
- 8. Why reduce your carbon footprint? Reason 3 – Energy Prices Crude oil spot price $ per barrel at turn of year 160 140 120 100 80 60 40 20 0 90 92 94 96 98 00 06 02 04 08 19 19 19 19 19 20 20 20 20 20 Source: US Department of Energy
- 9. Why reduce your carbon footprint? Reason 4 – Carbon Trading Source: NEC Corporation
- 10. How to reduce your carbon footprint Euan Murray May 2008
- 11. 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 Solutions Innovations Enterprises Investments Last year we: Worked with >5,000 companies Identified savings of 4.6 million tCO2 per year worth £500million
- 12. How do you actually do it? Measure Motivate Mobilise
- 13. Measure: Standards Development Standards Development Partnered with BSI British Standards & UK Department of the Environment Consulting with ~1,000 organisations in UK and beyond Developing public standards to: Testing standards with 20 Measure; leading brands Reduce; and Communicate Working with ISO and WRI the GHG emissions from on next steps goods & services
- 14. Standards development: Pilot projects
- 15. How do you actually do it? Measure Motivate Mobilise
- 16. Motivate: The myth of food miles Cutting food miles is important to reduce transport impacts BUT Food miles is a poor indicator of the overall impact Walkers Innocent 34.5g Cheese & Onion 250ml Mango & Passion Fruit Total = 75g CO2e Total = 294g CO2e Potato Disposal: 2% distribution: <1% Distribution: 10% Smoothie-making: 21% Making nitrogen Making the packaging: 30% fertiliser: >15% Raw materials transport: 14% Growing & Packing: 23% Source: Carbon Trust Low Carbon Supply Chain Pilot, March 2007
- 17. How do you actually do it? Measure Motivate Mobilise
- 18. Mobilise: Case studies of our results Boots: Shampoo Continental Clothing: T-shirts UK’s leading pharmacy chain B2B wholesaler of clothing for corporate, leisure and 8 shampoos, 4 packaging promotional wear types and 2 distribution options Footprinted supply chain of 7 t-shirts & tops Over 90% of footprint from consumer use Sponsored building of wind farm to power the India Identified 33% savings factory opportunities in supply chain Yielded 90% saving to the B2B Boots implemented 20% carbon footprint – 10%: recycled bottle – 10%: distribution upgrade
- 19. 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
- 20. Further information: Euan Murray General Manager euan.murray@carbontrust.co.uk www.carbontrust.co.uk www.carbon-label.co.uk
- 22. hello
- 23. company values We have 5 key company values Create a business we can be proud of Be Be Be Be natural entrepreneurial Be commercial generous responsible • Keep it human, • Chase opportunities • Create growth and • With time where put people first and be responsive profit for us and needed • Leave things a little our customers • Make 100% • Be creative and better than we find • With praise natural, challenge the status them • Be tough, and be wherever possible delicious, quo fair • Move towards only • With wealth with healthy stuff, • Prove it can be done zero or positive • Think clearly, act those that deserve 100% of the time impacts decisively and it • Act and talk keep the main naturally, thing, the main treating others thing as you would want to be treated.
- 24. Our approach is to ensure that we… Leave things a little bit better than we find them
- 25. why Exact outcome is uncertain, but any change is going to have impacts
- 26. Why bother? We want to leave things a little better than we find them
- 27. requirements Measuring carbon across our entire supply chain • energy consumption • use of fertiliser • source of energy • use of pesticide • waste disposal • energy consumption • refrigerant loss • type of fuel • energy consumption • method of harvest • source of energy • waste disposal • landfilled waste • weight of load • mode of transport • energy consumption • refrigerant loss • type of fuel • source of energy • distance travelled • waste disposal • refrigerant loss warehouses growers blender manufacturers • weight of load • weight of load • weight of load • mode of transport • mode of transport • mode of transport • type of fuel • energy for refrigeration • type of fuel • distance travelled • refrigerant loss • weight of load • energy for refrigeration • distance travelled • mode of transport • refrigerant loss • type of fuel • distance travelled • energy for refrigeration • refrigerant loss customers packaging suppliers • raw materials • energy consumption • waste disposal
- 28. measuring our carbon footprint Two carbon audits in 2006 identified where the carbon was Disposal Distribution Manufacture 200 CO2 per bottle (grams) Packaging 100 Material shipping Growing & Packing 0
- 29. action We knew where to get started Disposal Distribution Manufacture 200 CO2 per bottle (grams) Packaging 100 Material shipping Growing & Packing 0
- 30. our little bottle How we got to 100% 100% 100% Introduce 50% 80% PCR April 2006 Introduce 25% 60% PCR June 2003 40% Lightweight bottle 21g to 18g April 2003 20% 0% 2001 2003 2005 2007
- 31. results We achieved a 15% reduction in the overall footprint of the smoothie Disposal Distribution Manufacture 200 CO2 per bottle (grams) Packaging 50% recycled content 100% recycled content 100 Material shipping Growing & Packing 0
- 32. suppliers going green In 6 months, one manufacturer halved their use of land fill … 40 Landfill 35 Waste (Tonnes) 30 54% 25 20 15 10 5 0 Mar April May June July
- 33. suppliers going green identified energy savings of 25% … and moved to renewable energy = cost savings of £125k per annum
- 34. results Our co-packers reduced their footprint by 57% Disposal Distribution Manufacture 200 CO2 per bottle (grams) Packaging 100 Material shipping Growing & Packing 0
- 35. going forward We use the data in our business decisions CO2
- 36. next - 2008 Reduction gets a little harder, but a lot can still be achieved 2008 actions Disposal 200 Fuel efficiency Distribution Refrigeration gases Manufacture Energy, waste, water CO2 per bottle Packaging Bottle production (grams) 100 Material shipping Chilled, frozen, ambient Agrochemical reduction Growing & Packing Source of fruit 0
- 37. travel together
- 38. Best quality drinks, least carbon
- 39. Reducing Footprint JP. Rennaud Corporate Environment Director / 29.05.08
- 40. 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 1998 1996 1976
- 42. 1996 / 2008 What is done…? 2000-2010 Green Plants Pack Ratio « Green Plants » Program 2000 - 2010 Targets: Achievements 2007 vs 2000: Water consumption: -30% Water Consumption : -22% Energy consumption: -20% Energy Consumption : -28% Total Waste: -19% Cooling gazes consumption : -25%
- 43. 2000- 2010 : - 10% Packaging Ratio 2006, 15 CBU have reported their 10 main references : - 6% within 6 years. Pack ratio Spain -Evolution 2001 -2006 Total tons pack full year 06 Ratio weight pack/weight product 15,00% 6000 10,00% 4000 5,00% 2000 0,00% 0 DANET X2 (ERCA 125 Actimel x6 YOGURT X company Danonino Average (plastic (plastic spoon CORE tray) 8 PU X 4) Product Range 2001 RATIO 2002 RATIO 2003 RATIO 2004 RATIO 2005 RATIO 2006 RATIO TOTAL K 06
- 44. 1996 / 2008 What is done…? Process ISO 14001 GREEN DQSE Groundwater Protection Implement fundamental environment aspects of business to make sure that Group standards are applied everywhere
- 46. Today, world is changing….. WORKING POVERTY RESOURCES CONDITIONS SCARCITY SOCIAL PROGRESS ACCESS TO WATER NEW REGULATIONS ACCESS TO FOR EDUCATION PROTECTION OF GOVERNANCE WATER RESOURCES ETHIC FUNDS INTENSIVE PACKAGING GLOBAL AGRICULTURE WARMING IMPACT
- 47. Retail is changing….. 3000gr CO2 /kg Tesco
- 48. Consumers are changing….. 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.“[ In all of Europe, attitudes towards sustainable purchases have 81% - the increase in UK household spending in line with ethical also become widespread. 22% of German and Spanish values from 2002-2007. Up from sepnt £664 in 2006 compared populations for example, consider environmental aspects of with £366 in 2002; a 81% increase. products when shopping. Italy and France are both at 30%[
- 49. Business is under pressure Emballages Plastiques 26%
- 50. 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”
- 51. The mission today Our levers to impact positively business & society Nutrition and health People Nature • Lower environment footprint of activities • Benefits from nature integrated in our products
- 52. Next step for us… & WATER
- 53. 1/ Make our processes greener G G D EV CO Ingredients , packagings, to be Innovation &Renovation included in Goose G Activity Management (Promotion,Copacking…) G G G G R OD Milk, Development ,sourcing, CO P SSD Activities Supplier Management and partnership G G G Manufacturing : Capex, Production, NRJ &H2O, waste… G G Network design , temperature , 3PL Distribution : fullfillment of trucks, green trucks … Finance: Taxes,Information system,Carbon economy
- 54. 2/ DANONE Carbon footprint Groupe CO2 DANONE 20mil.T End life -4 % AGRICULTURE 40% MANUFACTURING 9% Packaging ENERGIE 69% EMBALLAGE 23% Endlife 8% DIST 28% Distribution 28% Distribution TRANSPORT 28% Packaging 13 % Manufacturing 9% Agriculture Manufacturing 47% 7%
- 55. DANONE Water footprint (Est.) DANONE WATER 156m.m3 AGRICULTURE 45% MANUFACTURING 38% PACKAGING 9% DIST 8% TRANSPORT
- 56. 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
- 57. New management for carbon neutrality 100% Compensation Reduction Breakthrough Co working Innovation with suppliers… Current action 0 Hard work 0%
- 58. Footprint key levers for Dairy Weight Conception Materials Recycling/End life Upstream Transportation Packaging 13 % Manufacturing Fruit, sugar Distribution Waste 3% Transportation Volume utilisation Process Storage /Cold chain Packaging Agriculture Cleaning Transportation 28 % 8% Methane 9% Pesticides/fertilizers Farm practices 44 %
- 59. Source: Natural Edge Sustainability Radical resource Productivity Whole system Innovation design Biomimicry Green chemistry Iron Industrial ecology Water power Renewable energy Mechanization Green Textiles nanotechnology Commerce Electricity Digital networks Steam power Chemicals Petrochemicals Biotechnology Railroad Internal Electronics Sofware Steel Combustion Aviation Information Cotton engine Space technology 1785 1845 1900 1950 1990 2020
- 60. EX1:Lightweighting and recycling 9.7 12.4 Greenhouse gases emissions Greenhouse gases emissions 1994 (in g eq. CO2/liter of product) 42 g 2007 32 g (in g eq. CO2/liter of product) FR = 141,3 FR=124.3 Upstream Upstream 120 100 Finished 100 product Finished Danone site 80 product 80 Danone site Energy prod° 60 60 Energy prod° Raw materials 40 40 Raw materials 20 Packaging 20 Packaging 0 0 -20 Materials Production Logistic End of Life -20 Materials Production Logistic End of Life 112.6 10.2 32.4 -5.5 91.4 10.2 32.2 -4.5 Bottle weight evolution 10 9 8 9 7 8 7,6 7,4 7,6 7 6 6,5 ? 5 6 EvalutaingNew 5,5 5,0 4 materials 1995 1998 20003 2002 4 2003 5 1 2 2004 2005 2007 2008 20099 201010 6 7 8 11
- 61. EX2:Recycling PET Bottle to Bottle CO2 (g/L of product) CO2 emission evolution 140 100% PET 32g 120 25% rPET 32g 25% rPET 29g 100 50% rPET 29g 80 124 110 109 60 104,7 92,2 40 20 0 2007 2008 2009 2010 Year
- 62. Context Economy changed Agriculture changed Food changed Rise of demand Flax & feed vs Corn Omega 3 vs AGS Good fat vs bad fat Therefore project LINUS WHAT? HOW? RESULT WHERE? Reintroduction of Cows eat all year Improve the Neufchâtel flax in the animal long an aliment rich nutritional profile of /Ferrières food chain. in omega 3 milk. Environmental benefit - CO2: Reduction Cow emissions ω3 LINUS PROJECT Health benefit Social benefit Natural & Omega 3 + Value for Danone & Producer
- 63. 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 initiatives Tests to run fleet on Bio fuel Reducing empty miles (return loads) Central planning to optimise fleet utilisation and increase load fill, reducing the number of food miles. Ph. Boyer PLF Operations Sept 07
- 64. Current Flow Proposed Zebra Flow 30% vol via Coventry Asda RDC Asda RDC 70% vol via Zeebrugge Coventry Depot 100% vol via ZB Asda & DWUK Zeebrugge Depot Depot 64
- 65. COMPENSATION
- 66. Action plan 0 Reduces carbon Protect/restore bio-diversity
- 67. Thank you for your attention… & WATER
- 68. Product Carbon Footprints The first Low-Carbon Shampoo ECR Forum – May 2008 Contact : Andrew Jenkins, Boots 0115 9686766
- 69. Boots Has A Proud Heritage … Established in 1849 by the Boot family in Nottingham as “Boots the Chemist”
- 70. 21 Strands Of CSR Action
- 71. The product journey CONCEPT MATERIAL PRODUCTION Sustainable design S Ethical sourcing Energy reduction Carbon footprinting Sustainable sourcing Waste reduction / Product footprinting Biodiversity recycling Low temperature Green Chemistry Reduce ingredients formulation inventory Supplier Auditing DISTRIBUTION Double deck trailers Singles to store Collect from suppliers Dual Fuel Vehicles USE RETAIL DISPOSAL Healthy Stores Carbon labelling Recycling Energy Reduction Consumer Advice:“You Use of recycled (lighting, heating) can help too…” materials Energy monitoring Research into product Labelling for use at home Waste recycling recycling Products that work at Recyclable display Reuseable transit lower water units containers temperature Carrier bag reduction
- 72. •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
- 73. Shampoo Carbon Footprint Total Footprint Excluding Use Phase Production Distribution 5% 29% Materials 5% CONSUMER USE - 93% water heating Distribution 2% Materials 66% PACKAGING Production Retail Disposal 0.3% >0% >0.% (bottles) 58%
- 74. 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%
- 75. 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.”
- 76. What can you do? As an individual, do you think you can help to reduce carbon footprints? 13% 5% Yes No Not sure 82% 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
- 77. Summary 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.
- 78. 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?
- 79. For more information: • On Boots Environment Management: http://www.boots-plc.com/environment/ •On Product / Packaging Sustainability Andrew.Jenkins@boots.co.uk (+44) 115 968 6766 •To Shop at Boots: www.boots.com
- 80. 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
- 81. Carbon Communication Simple Detailed
- 82. Panel Session