Sustainability and Waste: a UK Retail Perspective Jane Milne Director of Business Environment British Retail Consortium www.brc.org.uk/retailingclimate

The importance of retailing in the UK economy UK retail sales were £ 2 65bn in 2007, larger than the combined economies of Denmark and Portugal The retail sector generates almost 8% of UK GDP And employs 11% of the total UK workforce

UK retail sales were £ 2 65bn in 2007, larger than the combined economies of Denmark and Portugal

The retail sector generates almost 8% of UK GDP

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 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 a valuable service to its members; providing information and expertise as well as representing the industry to Government and in the media on the important issues of the day." Sir Terry Leahy, Chief Executive, Tesco

"The BRC offers a valuable service to its members; providing information and expertise as well as representing the industry to Government and in the media on the important issues of the day."

Sir Terry Leahy,

Chief Executive, Tesco

Our markets Town centre Community shops Retail parks Shopping malls On-line and mail order

Town centre

Community shops

Retail parks

Shopping malls

On-line and mail order

What is sustainability?

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

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 Bill Defra and Scottish Government Waste strategies London Councils Shopping Bags Bill

Regulations and policies being elaborated at all levels, for example:

EU Sustainable Consumption and Production proposals

UK Climate Change Bill

Defra and Scottish Government Waste strategies

London Councils Shopping Bags Bill

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

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 Launched 30 April

Sector-wide

Leading actors and those taking early steps

Single, clear message

Seeking to work with partners to deliver real change

Launched 30 April

Our goals Reduce the direct environmental impact of our businesses Manage our climate risks Help our customers, staff and suppliers to reduce their environmental impacts and vulnerabilities Engage in the public policy debate and support the Government in meeting its climate change goals Report our achievements transparently and consistently

Reduce the direct environmental impact of our businesses

Manage our climate risks

Help our customers, staff and suppliers to reduce their environmental impacts and vulnerabilities

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

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 CO 2 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

Cutting energy-related emissions from buildings by 15%

Aiming for a reduction of 15% in energy-related transport CO 2 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

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

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 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

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 And occupies about 80% of their consciousness! Fresh produce is most often referred to

Consumer packaging makes up about 20% of household waste

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

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 - role Packaging is designed to: Protect people Protect product Deliver statutory information Deliver consumer advice e.g. use by dates, recipe suggestions

Packaging is designed to:

Protect people

Protect product

Deliver statutory information

Deliver consumer advice e.g. use by dates, recipe suggestions

Future developments: technical Minimising appropriate to market Lightweighting Maximising recyclability Bulk/denser transporting ‘ Smart’ packaging

Minimising appropriate to market

Lightweighting

Maximising recyclability

Bulk/denser transporting

‘ Smart’ packaging

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

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

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