WM Morrison Supermarkets PLC
From Lauraibm
Contents |
MI Summary
Corporate Social Responsibility Report
Environmental Targets 2007 to end 2010
Reduce our Carbon Footprint
Key Performance Indicator (KPI): Energy efficiency and performance, Targets:
- Reduce Carbon Footprint cumulatively by 36% by 2010 (based on 2005 emissions)
- Reduce Group energy use by 8% per square metre (sqm) by 2010 (based on 2005 emissions)
- 10% of energy from renewable sources by 2010
- Air-freighted produce to be labelled for customer choice/information
- Carbon labelling to be explored
KPI: Refrigeration management, Targets:
- Replace Hydrochloroflurocarbons (HCFCs) with Hydroflurocarbons (HFCs) by 2010
- Trial CO2 system
KPI: Water conservation, Target:
- 15% reduction in Group water use by 2010
KPI: Transport efficiency, Targets:
- Plan to save 8% of our haulage CO2 emissions by 2010 (based on 2005 emissions) through mileage reductions and increased efficiencies
- Reduce road miles travelled per pallet of stock by 6% by 2010 and achieve an 8% reduction of total empty road miles travelled
- Enhance transport planning systems to achieve a 10% increase in trailer utilisation by 2010
- Introduce cleaner Euro5 engines to 15% of fleet by end 2007 and 80% of fleet by 2010.
- Extend availability of BioEthanol E85 fuel on forecourts
Prevent Waste
KPI: Optimisation, Target:
- Volume of waste to landfill reduced by 50% by 2010
KPI: Reduction, Target:
- Use 15% less own brand packaging by 2010
- Reduce environmental impact of standard plastic carrier bag use by 25% by end 2008
KPI: Reuse, Target:
- Extend returnable tray trips by 14m by 2008. Grow future use in line with sales
KPI: Recycling, Targets:
- Increase the proportion of recycled available store waste from 72% to 80% by 2010
- Extend compostable packaging to 200 lines by end 2007
- Increase the opportunities for customers to recycle at and through our stores
- Start to introduce symbols on our packaging to make it easier for customers to recycle
- Increase recycled content of standard plastic carrier bags to 25% by end 2008 and 50% by 2010
Source Responsibility
KPI: Responsible sourcing, Targets:
- Use only timber which is recycled or certified as coming from a sustainable source by 2010,
responsibly principles/policies including 100% of wood derived marketing materials.
- 100% of own brand tissue paper lines to be certified by the Forest Stewardship Council (FSC) by end 2007
- 100% of own brand fish to comply with sustainable sourcing policy by 2010
- 100% of own brand shell eggs to be free range by 2010
KPI: Good choice of organic, Fair Trade,, Targets:
- Increase the range of organic foods available by 40% by end 2007 local and in-season food
- Label all produce with country/place of origin
- Foster responsible methods of agriculture and biodiversity
Progress and Highlights
Reducing Our Carbon Footprint
Reducing our Carbon Footprint Working with the Carbon Trust, we have determined the Group’s Carbon Footprint, which is established from the emissions of carbon dioxide from sources including energy usage, transport and waste. Morrisons Carbon Footprint covers our stores, depots, all transport (Group-owned and third party haulage) and also our in-house supply chain of manufacturing, processing and packing facilities. It is being used as a measure of our carbon emissions for the Group and taking 2005 as the baseline, we aim to reduce our Carbon Footprint cumulatively by 36% by 2010. In the past 12 months we have achieved a 6.6% reduction in our total Carbon Footprint of 90,874 tonnes.
To achieve reductions in our emissions, we are continuing to implement a carbon and energy strategy for the business based on:
- 1. Measuring and monitoring energy consumption
- 2. Implementing ‘good housekeeping’ policies
- 3. Introducing additional energy saving technologies
- 4. Sourcing and generating renewable energy
Our target is to reduce Group energy use by 8% per sqm by 2010, based on 2005 emissions. We are primarily focused on where we can make the biggest impact, which is on reducing energy used at our sites, most notably for refrigeration.
However, across the Group, we have achieved a reduction in CO2 equivalent emissions from energy (electricity and gas) of 9% over the past year.
This has been achieved by:
- Using the Group’s energy management and monitoring system, Optima, which facilitates targeting areas of high energy use.
- As part of the on-going monitoring process, 15 sites identified with unusual or fluctuating energy consumption levels have been separately audited to assess their gas, electricity and water usage, with average savings of 5% having already been made as a result.
- Implementing our ‘Energy Eye’ system of monthly measurement and targeting of energy consumption at our sites, monitored by a designated ‘Energy Engineering Group’.
- Measurement and targeting of refrigeration, with fixed and locked set points for improved efficiency and re-commissioning of all refrigeration systems.
- Climate Change Agreements in operation at 202 stores and 9 manufacturing sites, aimed at reducing the energy used in food production.
- Introducing an ‘Energy Awareness’ campaign involving the training of over 100,000 colleagues throughout the business.
- Issuing a ‘Good Housekeeping’ guide and a supporting policies document.
Energy saving technology We specify that contractors for any of our new-build projects must purchase equipment from a government approved ‘energy technology product list’. Everything on this list, from heating and refrigeration equipment to lighting, is designed to significantly reduce or eliminate the production of carbon dioxide. In 2006 we invested £10m in energy-saving technology.
Renewable energy We are trialling a micro wind turbine for generating electricity at our Leominster store. Installed on the roof of the store, it is being used to run part of the refrigeration plant. The test was highly commended in The Cooling Industry Awards 2006 and we are planning to install the same technology at a number of other sites. Feasibility trials for a larger wind-generated electricity system are also underway at our Regional Distribution Centres. Other initiatives for low carbon energy being explored include Combined Heat & Power (CHP), for generating electricity in supermarkets and re-using more heat including from the refrigeration system in stores. Further projects for renewable energy are being investigated in conjunction with the Carbon Trust.
Saving Water Our target is to achieve a 15% reduction in group water use by 2010. We are taking steps to reduce water consumption. Measures include the installation of “Opti-flush” water control devices in cisterns and the use of push taps on wash hand basins.
We are currently working with Yorkshire Water, auditing six sites as a pilot scheme to identify further ways of saving water. It is expected that this pilot will lead to a benchmark for the most efficient water use in stores, which will be referenced across the estate to achieve savings. We are also working with Waterscan to identify and fix leaks promptly and to audit stores.
Transport Efficiency We plan to save 8% of our haulage CO2 emissions by 2010 (based on 2005 emissions) through mileage reductions and increased efficiencies; and to reduce road miles travelled per pallet of stock by 6% by 2010. We will also be improving the space utilisation of our vehicles and increasing back-haul pallet volumes. We are introducing vehicles with cleaner Euro5 engines into our fleet, rather than the currently required Euro4 and well ahead of these engines becoming a requirement in 2009. These are more efficient and cleaner engines, which will help to reduce emissions. Rigorous maintenance schedules, new engineering developments and fuel efficiency programmes, as well as driver training, are also aimed at helping to reduce the environmental impact of our transport fleet. For example, our new fleet vehicles will have long-drain oils giving 100,000km between drain intervals, which will save around 14,000 litres of oil per year. In addition, we remould 9,000 tyres per year saving over 675 tonnes of rubber.
Case Study: BioEthanol E85 fuel On March 15th 2006, Morrisons opened the UK’s first BioEthanol E85 fuel filling pump at Norwich, tying in with the first deliveries of the Saab 9-5 Bio Power flexfuel car. The fuel is branded as Harvest BioEthanol E85, with the environmentally friendly pumps featuring a butterfly logo. It is now available at 14 sites and is being introduced to all new store filling stations. We intend to further increase availability as demand increases, believing that E85 offers an effective way to rapidly increase the percentage of renewable fuel used in motor vehicles, delivering a significant contribution to reducing CO2 emissions. BioEthanol E85 is produced from a wide variety of agricultural produce, including forest residue, sugar cane, sugar beet, and grain, making it a totally renewable and sustainable fuel source.
Preventing Waste
Preventing waste We aim to prevent waste through a sustainable waste management strategy that focuses on optimisation, reduction, reuse and recycling. Where disposal is the only practical option available, we use appropriately licensed waste management facilities in accordance with legislation. All of our stores have the capability to recover cardboard and polythene, which are the largest contributors to waste produced in store. Currently 72% of all store generated waste is recovered for recycling.
By 2010, we aim through a number of initiatives to recycle, recover or re-direct 50% of the current waste stream away from landfill against the 2005/06 baseline. Management initiatives in our stores have seen the recovered tonnage for recycling increase by some 27% this year.
We have an extensive system of returnable baskets for both internal and external stock movements, which are continually reused through our distribution network and between suppliers. These replace cardboard and other packaging used to transport and display products and are most prevalent in our fresh food areas. In the past year the number of basket trips has increased by over 9% to 144 million, which is estimated to have saved approximately 65,000 tonnes of cardboard. Our use of returnable baskets is expected to continue to grow at least in line with sales.
Recycling In addition to recovering back-door waste for recycling, wherever possible we aim to offer our customers the chance to recycle materials including paper, aluminium, glass, clothing, shoes, books, CDs and plastics. Other initiatives have included mobile phone recycling in aid of our Charity of the Year (last year Breast Cancer Campaign, this year Asthma UK), Christmas card recycling in partnership with the Salvation Army and offering inkjet cartridge recycling through the Woodland Trust, which has so far enabled 900 trees to be planted. All our stores also provide facilities for carrier bag recycling.
Reducing packaging Our target is to cut own brand packaging by 15% by 2010. Our objectives are to use less packaging and to avoid packaging waste being sent to landfill, wherever possible.
We are actively addressing packaging waste by aiming to ensure that we use no more packaging material than is necessary to protect and transport the products safely, whilst maintaining the necessary levels of safety, hygiene, quality and consumer acceptance of the packed product.
We use a range of packaging types and formats that are designed to be efficient throughout a product’s entire lifecycle. When designing packaging we aim to ensure it serves its purpose well, aiming to minimise weight and volume and following the principles of reduce, reuse and recycle.
Some form of packaging is often essential. It protects, meaning products can travel and arrive without damage. It keeps foods safe, fresh and in good condition and it carries essential information such as lists of ingredients, nutrition and cooking instructions. However, we will be reducing packaging wherever we can and looking for more sustainable and recyclable sources.
We are making changes and to help us with our decisionmaking, we are implementing ‘Packaging Guidelines’ across the business, which are based on consideration of the following principles:
- Optimisation
- Recycled content
- Materials’ recyclability
- Materials’ sustainability
- Minimising use of non-renewable resources used in packaging
Packaging reduction projects, such as changes to meat packaging, sandwich and salad packs and a re-design of our wine carriers, together with the introduction of compostable packaging to organic produce lines, are already saving over 30 tonnes of packaging waste a year. Our packaging group (which reports into the CSR Steering Group) is working to further reduce the environmental impact of our packaging by identifying more ways to design out packaging waste growth by 2008 and deliver absolute reductions in packaging waste by the end of March 2010, to meet the shared objectives of the WRAP (Waste Resources and Action Programme) Courtauld Commitment, to which we are signatories. This also includes a commitment to tackling the amount of food waste consumers throw away, by the end of 2010.
Carrier bags Being focused on reduce, reuse and recycle, our standard plastic carrier bags are designed to offer exceptional performance with a minimum of resources used in their production and also to be reusable. Our target is to reduce the environmental impact of standard carrier bag use by 25% by the end of 2008. To date we have achieved a 5% reduction in use through an active management policy at our checkouts. To achieve further reductions in use, in addition to our multi-trip ‘Charity Bag’, which is made from 100% recycled material and is also recyclable, we are introducing a small and a large size durable woven shopping bag, which can also be recycled, together with a shopping bag made of jute, which is a natural fibre that is biodegradable. Smaller size carrier bags are available for convenience shopping to prevent the use of the full size bags. Messaging on all our bags provides customers with information on the further use and means of disposal.
Source Responsibility
We seek to ensure that own brand products and the ingredients that go into them are produced as responsibly as possible. This means applying responsible sourcing policies to cover specific raw materials such as timber, palm oil and soya and addressing issues such as sustainable seafood sourcing and animal welfare.
Responsible sourcing also means offering a good choice of Organic, Fair Trade, British and locally-sourced produce.
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