A Better Retailing Climate

Jane MilneDirector of Business Environment

Why launch another climate change initiative?

• Sector-wide• Leading actors and

those taking early steps

• Single, clear message

• Seeking to work with partners to deliver real change

What do customers say?• Retailers (supermarkets) are seen as a the most

responsible sector with regard to climate change, ahead of the general public, electricity and car companies, food and drink manufacturers and government

• But there is still more to be done - only a small minority are satisfied with current efforts on sustainability

• Collaboration is seen as an essential challenge if retailers are to move the agenda forward significantly

Sustainability Issues in the Retail Sector, Ipsos MORI 2007

Why a retail initiative?“ During the next three to five years, most companies in.. ..heavy industries will need to act on climate change in a major way. Sectors that have so far featured less prominently in the debate, such as consumer goods, high tech, and financial services, will have to get moving as well.”

Business Strategies for Climate Change The McKinsey Quarterly 2008

“Few believe that retailers alone can resolve the issue and recognise that shoppers will also need to play a part.”

Sustainability Issues in the Retail Sector Ipsos MORI 2007

What will we deliver?• A shared vision across retailers from the corner

shop to the giants of the industry • An agreed set of priorities and KPIs on which

performance can be measured and judged• A shared view of the solutions required • A platform for improved collaboration both across

the retail industry and with its stakeholders

Our goals1. Reduce the direct environmental impact of our

businesses2. Manage our climate risks3. Help our customers, staff and suppliers to

reduce their environmental impacts and vulnerabilities

4. Engage in the public policy debate and support the Government in meeting its climate change goals

5. Report our achievements transparently and consistently

Reduce the direct environmental impact of our businesses

– Cutting energy-related emissions from buildings by 15%

– Aiming for a reduction of 15% in energy-related transport CO2 emissions from stores deliveries

– Measuring water-use in sites accounting for 75% of usage, and setting targets for reductions

– Landfilling less than 50% of our waste, minimising waste from operations and managing sustainably unavoidable waste

Manage our climate risks

– Ensure our customers receive continuity of supply and the highest levels of service, working with national and local government

– Provide our customers with the new products and services that they will need as average weather conditions change

Help our customers to reduce their environmental impacts/ vulnerabilities

• Helping customers to understand more about climate change

• Helping them make more informed decisions about– Energy efficient and low carbon products– Environmentally responsible ways to access our services– Recycling and waste disposal

• And providing or supporting services for– Reduced consumer packaging waste– Recycling and end of life product disposal

Help our suppliers to reduce their environmental impacts/ vulnerabilities

– Working with our suppliers to understand better• The carbon footprint of their production systems

– And to offer products that• Have a lower carbon footprint/higher energy efficiency • Are more sustainable• Have the most sustainable, and minimum effective,

packaging

Help our employees to reduce their environmental impacts/ vulnerabilities– Engage our staff– Help them to play their role in meeting these

commitments– Encouraging them to make informed choices

outside work

3 million ambassadors for action!

Engage in the public policy debate and support the Government in meeting its

climate change goals

Supporting objective, evidence-based policy making to:

•Develop and maintain a growing, low carbon economy

•Ensure business continuity measures are in place

•Reduce emissions, enhance resilience and reduce the environmental impact of communities

Report our achievements transparently and consistently

• Board-level recognition of the need to incorporate climate risks into business strategy

• Sector-level reporting on annual progress towards these goals, and plans for future action