Sustainability and waste: A UK retail perspective feb 09 (2)
An update on the latest legislation and retail recycling initiatives Jane Milne Director of Business Environment British Retail Consortium www.brc.org.uk/retailingclimate
The importance of retailing in theUK economy UK retail sales were £265bn in 2007, larger than the combined economies of Denmark and Portugal The retail sector generates almost 8% of UK GDP QuickTime™ and a decompressor are needed to see this picture. And employs 11% of the total UK workforce
The British Retail Consortium OUR VISION To work with our members to create a vibrant and sustainable retail industry OUR MISSION • Promoting and defending retailers interests • Advising retailers of threats and opportunities • Improving the perceptions of retailing in the UK
Our members"The BRC offers avaluable service to itsmembers; providinginformation and expertiseas well as representing theindustry to Governmentand in the media on theimportant issues of theday."Sir Terry Leahy,Chief Executive, Tesco
Our markets • Town centre • Community shops • Retail parks • Shopping malls • On-line and mail order
What do UK customers say?• Retailers (supermarkets) are seen as 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 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
What do the legislators say?Regulations and policies being elaborated at all levels, for example:• EU Sustainable Consumption and Production proposals• UK Climate Change Act• Defra and Scottish Government Waste strategies• London Councils Shopping Bags Bill
Current Regulatory and VoluntaryInitiatives• WEEE• Batteries• Scottish Government zero waste strategy• Courtauld II
Why a retail initiative?“ During the next three to five years, most companiesin.. ..heavy industries will need to act on climate changein a major way. Sectors that have so far featured lessprominently in the debate, such as consumer goods, hightech, and financial services, will have to get moving aswell.” Business Strategies for Climate Change, The McKinsey Quarterly 2008“Few believe that retailers alone can resolve the issueand recognise that shoppers will also need to play apart.” Sustainability Issues in the Retail Sector, Ipsos MORI 2007
A Better Retailing Climate• Sector-wide• Leading actors and those taking early steps• Single, clear message• Seeking to work with partners to deliver real change
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 vulnerabilities4. Engage in the public policy debate and support the Government in meeting its climate change goals5. Report our achievements transparently and consistently
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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– Diverting less than 50% of our waste to landfill, minimising waste from operations and managing sustainably unavoidable waste
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 – Reduced consumer packaging waste – Recycling and end of life product disposal
Help our suppliers to reduce theirenvironmental 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
Packaging and sustainability - perceptions • Consumer packaging makes up about 20% of household waste QuickTime™ and a decompressor are needed to see this picture. • And occupies about 80% of their consciousness! • Fresh produce is most often referred to
Waste reduction: the waste hierarchy• UK retailers support the Government’s approach to resource conservation• But need also to consider the purpose of packaging• And put consumers at the heart of the process when designing systems
Packaging and sustainability - rolePackaging is designed to: QuickTime™ and a• Protect people decompressor are needed to see this picture.• Protect product• Deliver statutory QuickTime™ and a decompressor information are needed to see this picture.• Deliver consumer QuickTime™ and a decompressor advice e.g. use by are needed to see this picture. dates, recipe suggestions
Future developments: communications • Need increasingly to ‘justify’ packaging i.e. it must be seen to be adding value • And must have a life beyond first use • Closed loops are the ultimate goal • But other acceptable solutions must also be developed/explained
Working together in a sustainable future • Governments, customers, retailers all want sustainably produced goods, with minimal waste • Retailers are looking for suppliers who can deliver this vision • Innovation in packaging will be key to delivery
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