IGD Overview Nick Downing, Sales Manager

How to Reduce your Carbon FootprintECR Europe Forum, 29 May, Berlin

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

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”

Company Carbon Footprint - Casino

Product carbon footprint

Why reduce your carbon footprint?

Source: European Commission’s "You Control Climate Change" website

Reason 1 – Climate Change

Why reduce your carbon footprint?

Reason 2 – Customer Demand

31%

31%

34%

53%

54%

70%

12%

17%

15%

31%

34%

37%France

Netherlands

UK

Spain

Germany

Poland

Interest

Actively look tobuy

Are you interested in/actively looking to buy environmentally friendly products?

Source: IGD 2008

Why reduce your carbon footprint?

Reason 3 – Energy Prices

020406080

100120140160

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Crude oil spot price $ per barrel at turn of year

Source: US Department of Energy

Why reduce your carbon footprint?

Reason 4 – Carbon Trading

Source: NEC Corporation

How to reduce your carbon footprint

Euan MurrayMay 2008

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 Innovations InvestmentsSolutions Enterprises

Last year we:

Worked with >5,000 companies

Identified savings of 4.6 million tCO2 per year worth £500million

How do you actually do it?

Measure

Motivate

Mobilise

Measure: Standards Development

Standards Development

Developing public standards to:Measure;Reduce; andCommunicate

the GHG emissions from goods & services

Partnered with BSI British Standards & UK Department of the Environment

Consulting with ~1,000 organisations in UK and beyond

Testing standards with 20 leading brands

Working with ISO and WRI on next steps

Standards development: Pilot projects

How do you actually do it?

Measure

Motivate

Mobilise

Motivate: The myth of food miles

Walkers34.5g Cheese & Onion

Innocent250ml Mango & Passion Fruit

Total = 75g CO2e Total = 294g CO2ePotato distribution: <1%

Making nitrogen fertiliser: >15%

Source: Carbon Trust Low Carbon Supply Chain Pilot, March 2007

Cutting food miles is important to reduce transport impactsBUT

Food miles is a poor indicator of the overall impact

Growing & Packing: 23%Raw materials transport: 14%

Making the packaging: 30%

Smoothie-making: 21%

Distribution: 10%Disposal: 2%

How do you actually do it?

Measure

Motivate

Mobilise

Mobilise: Case studies of our results

Boots: Shampoo Continental Clothing: T-shirts

UK’s leading pharmacy chain

8 shampoos, 4 packaging types and 2 distribution options

Over 90% of footprint from consumer use

Identified 33% savings opportunities in supply chain

Boots implemented 20%– 10%: recycled bottle– 10%: distribution upgrade

B2B wholesaler of clothing for corporate, leisure and promotional wear

Footprinted supply chain of 7 t-shirts & tops

Sponsored building of wind farm to power the India factory

Yielded 90% saving to the B2B carbon footprint

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

Further information:

Euan Murray General Manager euan.murray@carbontrust.co.uk

www.carbontrust.co.uk www.carbon-label.co.uk

Cutting carbon

Jessica Sansom

hello

Create a business we can be proud of

Be natural Be

responsible

Be commercial

Be generous

• Keep it human, put people first

• Make 100% natural, delicious, healthy stuff, 100% of the time

• Act and talk naturally, treating others as you would want to be treated.

• Leave things a little better than we find them

• Move towards only zero or positive impacts

• Create growth and profit for us and our customers

• Be tough, and be fair

• Think clearly, act decisively and keep the main thing, the main thing

• With time where needed

• With praise wherever possible

• With wealth with those that deserve it

company values

Be entrepreneurial

• Chase opportunities and be responsive

• Be creative and challenge the status quo

• Prove it can be done

We have 5 key company values

Our approach is to ensure that we…

Leave things a little bit

better than we find them

why

Exact outcome is uncertain, but any change is going to have impacts

We want to leave things a little better than we find them

Why bother?

requirements

growers blender manufacturerswarehouses

packagingsuppliers

customers

• raw materials• energy consumption• waste disposal

• energy consumption• source of energy• landfilled waste• refrigerant loss

• energy consumption• source of energy• waste disposal• refrigerant loss

• energy consumption• source of energy• waste disposal• refrigerant loss

• weight of load• mode of transport• energy for refrigeration• refrigerant loss• distance travelled

• weight of load• mode of transport• type of fuel• distance travelled

• weight of load• mode of transport• type of fuel• distance travelled

• weight of load• mode of transport• type of fuel• energy for refrigeration• refrigerant loss

• weight of load• mode of transport• type of fuel• energy for refrigeration• refrigerant loss• distance travelled

Measuring carbon across our entire supply chain

• use of fertiliser• use of pesticide• energy consumption• type of fuel• method of harvest• waste disposal

Material shipping

Packaging

Manufacture

Distribution

Growing & Packing

Disposal

0

100

200

CO2per bottle(grams)

measuring our carbon footprint

Two carbon audits in 2006 identified where the carbon was

Material shipping

Packaging

Manufacture

Distribution

Growing & Packing

Disposal

0

100

200

CO2per bottle(grams)

action

We knew where to get started

our little bottle

How we got to 100%

0%

20%

40%

60%

80%

100%

2001 2003 2005 2007

100%

Lightweight bottle 21g to

18gApril 2003

Introduce 25% PCR

June 2003

Introduce 50% PCR

April 2006

Material shipping

Packaging

Manufacture

Distribution

Growing & Packing

Disposal

0

100

200

CO2per bottle(grams)

results

We achieved a 15% reduction in the overall footprint of the smoothie

50% recycled content 100% recycled content

suppliers going green

In 6 months, one manufacturer halved their use of land fill …

0

5

10

15

20

25

30

35

40

Mar April May June July

LandfillWaste

(Tonnes) 54%

suppliers going green

… and moved to renewable energyidentified energy savings of 25%= cost savings of £125k per annum

Material shipping

Packaging

Manufacture

Distribution

Growing & Packing

Disposal

0

100

200

CO2per bottle(grams)

results

Our co-packers reduced their footprint by 57%

going forward

We use the data in our business decisions

CO2

Material shipping

Packaging

Manufacture

Distribution

Growing & Packing

Disposal

0

100

200

CO2per bottle(grams)

next - 2008

Reduction gets a little harder, but a lot can still be achieved

Agrochemical reductionSource of fruit

Chilled, frozen, ambient

Bottle production

Energy, waste, water

Fuel efficiencyRefrigeration gases

2008 actions

travel together

Best quality drinks, least carbon

Reducing Footprint

JP. Rennaud Corporate Environment Director / 29.05.08

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

1976

1996

1998

1996: Environmental Charter

2000-2010Green PlantsPack Ratio

1996 / 2008 What is done…?

« Green Plants » Program2000 - 2010 Targets:

Water consumption: -30%Energy consumption: -20%

Achievements 2007 vs 2000:Water Consumption : -22%Energy Consumption : -28%Total Waste: -19%Cooling gazes consumption : -25%

Pack ratio Spain -Evolution 2001 -2006

0,00%

5,00%

10,00%

15,00%

CO

RE

(ER

CA

125

X 4)

DA

NET

X2

(pla

stic

tray)

Dan

onin

osp

oon

(pla

stic

Act

imel

x6

YOG

UR

T X

8 PU

Ave

rage

com

pany

Ratio weight pack/weight product

Product Range

0

2000

4000

6000

Total tons pack full year 06

2001 RATIO 2002 RATIO 2003 RATIO 2004 RATIO 2005 RATIO 2006 RATIO TOTAL K 06

2000- 2010 : - 10% Packaging Ratio2006, 15 CBU have reported their 10 main references : - 6% within 6 years.

Groundwater Protection

GREEN DQSE

Implement fundamental environment aspects of business to make sure that Group standards are applied everywhere

ISO 14001Process

1996 / 2008 What is done…?

NEW REGULATIONS

FOR GOVERNANCEETHIC FUNDS

POVERTY

PACKAGING IMPACT

WORKING CONDITIONS

SOCIAL PROGRESS

INTENSIVE AGRICULTURE

GLOBAL WARMING

ACCESS TO EDUCATION

RESOURCESSCARCITY

ACCESS TO WATER

PROTECTION OF WATER RESOURCES

Today, world is changing…..

Tesco

3000gr CO2 /kg

Retail is changing…..

Consumers are changing…..

In all of Europe, attitudes towards sustainable purchases have also become widespread. 22% of German and Spanish populations for example, consider environmental aspects of

products when shopping. Italy and France are both at 30%[

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.“[

81% - the increase in UK household spending in line with ethical values from 2002-2007. Up from sepnt £664 in 2006 compared with £366 in 2002; a 81% increase.

Business is under pressure

Emballages Plastiques 26%

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”

People Nature

• Lower environment footprint of activities

• Benefits from nature integrated in our products

The mission today

Our levers to impact positively

business & society

Nutrition and health

Next step for us…

& WATER

1/ Make our processes greener

Innovation &Renovation

GG

GG

GG GG GGGG

GG

Activity Management (Promotion,Copacking…)

Milk, Development ,sourcing, Supplier Management and partnership

Manufacturing: Capex, Production, NRJ &H2O, waste…

SSD Activities

Ingredients , packagings, to beincluded in Goose

GGGGGG

COPROD

CODEV

Distribution : Network design , temperature , 3PLfullfillment of trucks, green trucks …

GG GG

Finance: Taxes,Information system,Carbon economy

CO2 GroupeDANONE

20mil.T

AGRICULTURE 40%

MANUFACTURINGENERGIE

9%

EMBALLAGE 23%

DISTTRANSPORT

28%

2/ DANONE Carbon footprint

Manufacturing7%

Distribution 28%

Packaging

69%

End life-4 %

Distribution 28%

Packaging 13 %

Endlife8 %

Agriculture 47%

Manufacturing 9 %

WATER DANONE

156m.m3

AGRICULTURE 45%

MANUFACTURING 38%

PACKAGING 9%

DISTTRANSPORT

8%

DANONE Water footprint (Est.)

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

New management for carbon neutrality

0%

100%

BreakthroughInnovation

0Current action

Hard work

Co workingwith suppliers…

Compensation

Reduction

Manufacturing

MethanePesticides/fertilizers

Farm practices

Waste

TransportationVolume utilisation

Storage /Cold chain

Weight Conception Materials

Recycling/End lifeUpstream Transportation

ProcessPackagingCleaning

Transportation

13 %

9 %8 %

44 %

28 %Agriculture

Packaging

DistributionFruit, sugar

3 %

Footprint key levers for Dairy

IronWater power

MechanizationTextiles

Commerce

SustainabilityRadical resource

ProductivityWhole system

designBiomimicry

Green chemistryIndustrial ecologyRenewable energy

Green nanotechnology

Digital networksBiotechnology

SofwareInformationtechnology

PetrochemicalsElectronics

AviationSpace

Steam powerRailroad

SteelCotton

ElectricityChemicals

InternalCombustion

engine

Source: Natural Edge

18451785 19501900 1990 2020

Inno

vatio

n

Greenhouse gases emissions (in g eq. CO2/liter of product)

-200

20406080

100120

Materials Production Logistic End of Life

Upstream

FinishedproductDanone site

Energy prod°

Raw materials

Packaging

9.7

112.6 10.2 -5.532.4

FR = 141,31994

12.4

Greenhouse gases emissions (in g eq. CO2/liter of product)

-20

0

20

40

60

80

100

Materials Production Logistic End of Life

Upstream

FinishedproductDanone site

Energy prod°

Raw materials

Packaging

91.4 10.2 -4.532.2

FR=124.3200742 g 32 g

5,566,5

77,67,47,68

9

4

5

6

7

8

9

10

1 2 3 4 5 6 7 8 9 10 111995 1998 2000 2002 2003 2004 2005 2007 2008 2009 2010

EvalutaingNew

materials5,0

?

Bottle weight evolution

EX1:Lightweighting and recycling

CO2 emission evolution

92,2104,7

109

124

0

20

40

60

80

100

120

140

2007 2008 2009 2010 Year

CO2 (g/L of product)

100% PET 32g

25% rPET 32g 25% rPET 29g50% rPET 29g

110

EX2:Recycling PET Bottle to Bottle

Reintroduction of flax in the animal

food chain.

Improve the nutritional profile of

milk.

Cows eat all year long an aliment rich

in omega 3

Neufchâtel/Ferrières

Social benefit+ Value forDanone & Producer

LINUSPROJECT

WHAT?WHAT? HOW?HOW? RESULTRESULT WHERE?WHERE?

Economy changedEconomy changed

Rise of demand

Agriculture changedAgriculture changed

Flax & feed vs Corn

Food changedFood changed

Omega 3 vs AGSGood fat vs bad fatC

onte

xt

Therefore project LINUS

Environmental benefit- CO2: Reduction Cow emissions

Health benefitNatural & Omega 3

ωω33

Ph. Boyer PLF Operations Sept 07

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 initiativesTests to run fleet on Bio fuelReducing empty miles (return loads)Central planning to optimise fleet utilisation and increase load fill, reducing the number of food miles.

64

Current FlowCurrent Flow

Asda RDC

Coventry Depot

Proposed Zebra Flow Proposed Zebra Flow

Asda RDC70% vol via Zeebrugge

30% vol via Coventry

Zeebrugge Depot

Asda & DWUK Depot

100% vol via ZB

COMPENSATION

Protect/restorebio-diversity

0

Reducescarbon

Actionplan

Thank you for your attention…

& WATER

Product Carbon FootprintsThe first Low-Carbon Shampoo

ECR Forum – May 2008

Contact : Andrew Jenkins, Boots 0115 9686766

Boots Has A Proud Heritage …

Established in 1849 by the Boot family in Nottingham as “Boots the Chemist”

21 Strands Of CSR Action

The product journey

Sustainable design

Carbon footprinting

Product footprinting

Low temperature formulation

Ethical sourcing

Sustainable sourcing

Biodiversity

Green Chemistry

Supplier Auditing

Energy reduction

Waste reduction / recycling

Reduce ingredients inventory

Double deck trailers

Singles to store

Collect from suppliers

Dual Fuel Vehicles

Healthy Stores

Energy Reduction (lighting, heating)

Energy monitoring

Waste recycling

Recyclable display units

Carrier bag reduction

Carbon labelling

Consumer Advice:“You can help too…”

Research into product use at home

Products that work at lower water temperature

Recycling

Use of recycled materials

Labelling for recycling

Reuseable

transit containers

CONCEPT MATERIAL

S

PRODUCTION

DISTRIBUTION

RETAILUSEDISPOSAL

•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

Materials66%

Distribution29%

Production5%

Retail>0%

Disposal>0.%

Distribution2%

Production0.3%

Materials5%

CONSUMER USE - 93%

water heating

Total Footprint Excluding Use Phase

PACKAGING

(bottles) 58%

Shampoo Carbon Footprint

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%

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.”

What can you do?

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

As an individual, do you think you can help to reduce carbon footprints?

82%

5%

13%

Yes

No

Not sure

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.

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?

Summary

For more information:

•On Product / Packaging SustainabilityAndrew.Jenkins@boots.co.uk

(+44) 115 968 6766

•To Shop at Boots: www.boots.com

• On Boots Environment Management:http://www.boots-plc.com/environment/

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

Carbon Communication

Simple Detailed

Panel Session