Conference Presentation at Profiting from Sustainability in York (UK) Dec 2014

1. Practical Sustainability
Business Risk Management
Nigel Davies
Manufacturing & Sustainability Director

2. What is Sustainability?
WATER
FOOTPRINT ?
ENERGY
USE?
RECYCLING
“Practical Sustainability ......
it’s no afterthought”

3. So – what is Sustainability?

4. Supply Chain Collaboration
SAI Platform is the global initiative helping food and drink
companies to achieve sustainable production and sourcing
of agricultural raw materials

5. Farm Sustainability Assessment

6. Farm Sustainability Assessment
This does NOT mean more forms to fill in !!

7. CARBON MANAGEMENT - THE SAFEST BET

8. CO2 levels of 546-568 parts per million would
reduce nutrients in grains and legumes
ZINC IRON PROTEIN
WHEAT 9.3% 5.1% 6.3%
RICE 3.3% 5.2% 7.8%
FIELD PEAS 6.8% 4.1% 2.1%
SOYBEANS 5.1% 4.1% 4.6%
MAIZE / SORGHUM No significant reduction
1/3rd
population
already suffer from iron
and zinc shortages,
leading to some 63
million life years being
lost annually
2bn people
get at least 70% of their
iron and zinc from
grains and legumes.
Myers et al: Nature (2014) doi:10.1038/nature13179

9. Low Carbon Malt-
Hitting the mark
In house:
• Energy action plan
• £8M investment
over 6 years in
environmentally
beneficial projects
Externally:
• Supply chain discussion
• Farmer involvement
• Knowledge Transfer
• Field Trials

10. Carbon Footprint: Scopes 1-3
Fuel 17%
N2O from
Soil 35%
N fertiliser
48%
Difference
between
models
6%

11. Energy, Water, Waste: Bottom Line Benefits
1,450
1,400
1,350
1,300
1,250
1,200
1,150
1,100
1,050
1,000
ENERGY USE PER TONNE WATER USAGE
Energy used (kWh/to) CCA Target
2001-2 2002-3 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13
kWh/Tonne
Year
23%
LESS
WASTE & RECYCLING
12%
LESS
1,400
1,200
1,000
800
600
400
200
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
tonnes
Year
Landfill
Recycled
Total

12. Energy Investment: Environmental benefits
£4m project to
install new silos
24,000 tonnes
capacity
SAVES: Farmers
installing less
efficient on-farm
drying
SAVES: 1700 vehicle
movements a year:
130 tonnes CO2

13. Muntons Carbon Footprint
Total is interesting but drill down is of increasing importance
Now express
C footprint
PRODUCT PROCESS
SUPPLY
CHAIN
ELEMENT

14. Muntons Carbon Footprint
Reduced by 18% - How? GREEN ELECTRICITY
GREEN
ELECTRICITY
0.05014
kg CO2/kWh
NORMAL
ELECTRICITY
0.48357
kg CO2/kWh
Electricity source % of supply
Hydro 63.7
On shore wind 23.7
Off shore wind 5.1
Solar PV 3.8
Biomass municipal 3.5
Municipal waste 0.2

15. Anaerobic Digestion
Total project Cost: £5.5M
Plant Life >25 yrs
Reduced electricity cost: up to 25% at half price
Income from Government Feed-in-Tariffs
Off-site Tankering costs £732,000
….. Sale of Bio-Fertiliser?
£650,000
PAYBACK
4.6 years

16. How Muntons
are helping
farmers save
money and
reduce the
supply chain
carbon footprint

17. Influencing Farmers – changing perceptions
85%
15%
Convinced
Uncertain

18. “Carbon calculators are so hard to use”
“What’s a good value?”

19. Which areas have the greatest impact?
300
290
280
270
260
250
YIELD
+20%
TRACTOR
HOURS -20%
300
CAN
– 20%
LOW CARBON
CAN
264
253
205
240
230
220
210
200
190
180
170
160
150
Base level
301kg CO2 eq/tonne
CARBON FOOTPRINT OF MALTING BARLEY
kg CO2eq

20. Low Carbon Malt Commitment
We are committed to producing 100% low carbon malt
using low carbon options to make a significant impact
on our supply chain carbon footprint.
WE HAVE CALCULATED OUR CARBON FOOTPRINT

21. To qualify for a low carbon contract growers
must adhere to at least TWO of the following:
.. becoming a ‘low
carbon grower’
should not add cost
to the production of
malting barley …
Use of abated nitrogen fertiliser
Precision farming techniques that result in more
efficient use of/reduction of inputs
Use of Green compost to improve soil
structure/reduce the inorganic fertiliser used
Use of alternative fertilisers that comply with PAS100 (*No onions
or other products know to taint grain are permitted *)
Nitrogen fixing cover crops
Adherence to Conservation Grade/LEAF protocols to improve biodiversity
Compliance with the SAI Platform Protocol

22. Compost REALLY works – Yorkshire Wolds trial
+12%
YIELD
Better than
Winter
Barleys!
“The Compost crops looked excellent right
through from emergence to harvest”
£200
per acre
BENEFIT

23. Reducing Carbon Footprint of Beer
8-20%
reduction in
carbon
footprint of
beer*
13%
13% 4%
1%
6%
25% 39%
Malt Brewing Packaging
Transport Electricity Cooling
Other
Research on the Carbon Footprint of Beer (Beverage Industry Environmental Roundtable, June 2012
http://www.bieroundtable.com/files/Beer%20Final%20DEP.pdf
50%
reduction in
MALT
carbon
footprint
21%
14%
48%
9%
3%
1%
4%
BOTTLED
CANNED
* % depends whether canned or bottled and on grist recipe
CARBON FOOTPRINT ANALYSIS

24. Reducing Carbon Footprint of baking:
VICTORIA SPONGE
I’m baked using
25% less sugar
I look great, taste great and
take less time to bake!
P.S.

25. Reducing Carbon Footprint of baking:
Cocoa-based muffins
COCOA MALTICHOC

26. The journey of a thousand
miles begins with a single
step
Confucius