Practical SustainabilityBusiness Risk Management

Nigel Davies

Manufacturing & Sustainability Director

What is Sustainability?

WATER

FOOTPRINT ?

ENERGY

USE?

RECYCLING

“Practical Sustainability ......

it’s no afterthought”

So – what is Sustainability?

Supply Chain Collaboration

SAI Platform is the global initiative helping food and drink

companies to achieve sustainable production and sourcing

of agricultural raw materials

Farm Sustainability Assessment

Farm Sustainability Assessment

This does NOT mean more forms to fill in !!

CARBON MANAGEMENT - THE SAFEST BET

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

1/3rdpopulation

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

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

Carbon Footprint: Scopes 1-3

Fuel 17%

N2O from

Soil 35%

N fertiliser

48%

Difference

between

models

6%

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

1,450

2001-2 2002-3 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13

kW

h/T

on

ne

Year

Energy used (kWh/to) CCA Target

Energy, Water, Waste: Bottom Line Benefits

ENERGY USE PER TONNE WATER USAGE

WASTE & RECYCLING

23%

LESS

12%

LESS

0

200

400

600

800

1,000

1,200

1,400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

ton

ne

s

Year

Landfill

Recycled

Total

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

Muntons Carbon FootprintTotal is interesting but drill down is of increasing importance

Now express C footprint

PROCESSPRODUCT

SUPPLY CHAIN

ELEMENT

Muntons Carbon FootprintReduced 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

Biomass municipal 3.5

Municipal waste 0.2

Solar PV 3.8

Anaerobic Digestion

Total project Cost: £5.5M

Plant Life >25 yrs

….. Sale of Bio-Fertiliser?

Reduced electricity cost: up to 25% at half price

Income from Government Feed-in-Tariffs

Off-site Tankering costs £732,000

£650,000

PAYBACK

4.6 years

How Muntons

are helping

farmers save

money and

reduce the

supply chain

carbon footprint

Influencing Farmers – changing perceptions

85%

15%

Convinced

Uncertain

“Carbon calculators are so hard to use”

“What’s a good value?”

300

290

280

270

260

250

Which areas have the greatest impact?

YIELD

+20%

300

TRACTOR

HOURS -20%CAN

– 20%LOW CARBON

CAN

264

253

205

240

230

220

190

180

170

160

150

210

200

CA

RB

ON

FO

OT

PR

INT

OF

MA

LTIN

G B

AR

LEY

kg

CO

2e

q

Base level

301kg CO2 eq/tonne

Base level

301kg CO2 eq/tonne

Low Carbon Malt Commitment

WE HAVE CALCULATED OUR CARBON FOOTPRINT

We are committed to producing 100% low carbon malt

using low carbon options to make a significant impact

on our supply chain carbon footprint.

.. 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

To qualify for a low carbon contract growers must adhere to at least TWO of the following:

+12%

YIELD

Compost REALLY works – Yorkshire Wolds trial

Better than Winter

Barleys!

“The Compost crops looked excellent right

through from emergence to harvest”

£200

per acre

BENEFIT

Reducing Carbon Footprint of Beer

8-20%reduction in

carbon

footprint of

beer*

Research on the Carbon Footprint of Beer (Beverage Industry Environmental Roundtable, June 2012

http://www.bieroundtable.com/files/Beer%20Final%20DEP.pdf

39%25%

13%13% 4%

1%

6%

Malt Brewing Packaging

Transport Electricity Cooling

Other

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

Reducing Carbon Footprint of baking: VICTORIA SPONGE

I’m baked using

25% less sugarI look great, taste great and

take less time to bake!

P.S.

Reducing Carbon Footprint of baking: Cocoa-based muffins

COCOA MALTICHOC

The journey of a thousand miles begins with a single stepConfucius