The ‘deal’ Matthew Neilson Head of Sustainability
Process – first steps <ul><li>DMA formed environmental working group: </li></ul><ul><ul><li>To oversee development of new ...
Guiding principles <ul><li>To support government’s ambition to be the ‘greenest ever government’ </li></ul><ul><ul><li>Zer...
What Royal Mail has delivered… <ul><li>Founding member and lead funding of PAS 2020 with the DMA, ISBA & Acxiom </li></ul>...
% Million items Source: TNS Consumer Panel (monthly research with c. 1,000 UK adults) NB Direct Mail only (ie Door Drops e...
A decrease in DM volumes and increase in recycling has led to falls in the quantity of direct mail entering landfill Tonne...
289,920   tonnes of Direct Marketing Material recycled during 2009 (Source: MEL Recycle Rate Study 2009) In 2009 DM recycl...
22% of all advertising mail in the UK is now posted through RM’s PAS 2020 aligned sustainability services
Although recycling levels remains above 70%, recycling messages only appear on 26% of advertising mail  +5.0% pts +3.3% pt...
The new deal <ul><li>Introduction </li></ul><ul><ul><li>Our shared ambition with government </li></ul></ul><ul><li>Scope <...
Scope <ul><li>The GB direct marketing industry </li></ul><ul><li>All activities associated with physical direct marketing ...
Objectives and actions <ul><li>Waste prevention </li></ul><ul><ul><li>Create a single opt-out scheme for door to door item...
Proposed Key Performance Indicators <ul><li>% Non-production (baseline to be determined) </li></ul><ul><li>% of households...
Governance <ul><li>Deal steering group to be established </li></ul><ul><ul><li>Assess performance </li></ul></ul><ul><ul><...
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Matthew Neilson Smp Conference 2011 the deal v1

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  • Research We have continued with the direct marketing materials recycle tracker that we introduced with the Direct Marketing Association in 2009. The research, undertaken by MEL, showed that 70.7% of households recycled direct marketing materials in 2010. The 2009 target was 55% and the 2013 target is 70%. This was a decrease of 5.8% on 2009 results. Further analysis of the data has shown that the large proportion of the drop took place within one secio-demographic group. The research also showed that the amount of ‘definite direct mail’ per household has declined from 0.192kg/week to 0.176 kg/week, a fall of 13% on 2009. All of the information gathered in the research is shared with local authorities to supplement their own analysis and to help improve overall recycling rates in this category.
  • Sources: Direct Mail volumes from TNS consumer panel; Door Drop volumes from DMA Market Size report; volumes are for calendar years except 2009 which shows Nov 08– Oct 09 for DM and a forecast for Door Drop based on current trends. Average weights from Royal Mail MCS (‘Mail Characteristics Study’). Recycle rates from latest MEL study and previous DMA measures. Prevention of 349k tonnes The % recycle rate is only half of the story. In parallel to the growth of recycling, absolute volumes of Direct Marketing Material have fallen sharply since 2003. These two factors have combined to produce a huge decrease in the tonnage of posted direct marketing material going into landfill, down 79% between 2003 and 2009.
  • 348,600 fewer tonnes of mailed Direct Marketing Material are going into landfill in 2009 than were doing so in 2003, a fall of 79%
  • Matthew Neilson Smp Conference 2011 the deal v1

    1. 1. The ‘deal’ Matthew Neilson Head of Sustainability
    2. 2. Process – first steps <ul><li>DMA formed environmental working group: </li></ul><ul><ul><li>To oversee development of new deal </li></ul></ul><ul><ul><li>To support review of PAS 2020 </li></ul></ul><ul><li>Sub-working group on unaddressed mail created: </li></ul><ul><ul><li>Royal Mail Door to Door </li></ul></ul><ul><ul><li>The Leaflet Company </li></ul></ul><ul><ul><li>TNT Post </li></ul></ul><ul><li>Regular meetings with government </li></ul><ul><li>SMP also involved in discussions with government </li></ul>
    3. 3. Guiding principles <ul><li>To support government’s ambition to be the ‘greenest ever government’ </li></ul><ul><ul><li>Zero waste economy </li></ul></ul><ul><ul><li>Low carbon economy </li></ul></ul><ul><li>To aid government understanding on the industry and our media </li></ul><ul><li>To build on the success of PAS 2020, Sustainable® Mail and recycling rates </li></ul><ul><li>To show that advertising mailings can and will be responsible for their environmental impacts </li></ul>
    4. 4. What Royal Mail has delivered… <ul><li>Founding member and lead funding of PAS 2020 with the DMA, ISBA & Acxiom </li></ul><ul><li>Created & funded a new, more robust recycle-rate monitor for Direct Mail from 2009 onwards for the DMA </li></ul><ul><li>Launched two sustainability focused services in 2009 - Sustainable® Mail and Responsible Mail </li></ul><ul><li>Supported industry adoption of ISO 14001 through our mailing house scheme </li></ul><ul><li>Introduced Sustainable Door to Door™ </li></ul><ul><li>Produced the first ever industry environmental report </li></ul>
    5. 5. % Million items Source: TNS Consumer Panel (monthly research with c. 1,000 UK adults) NB Direct Mail only (ie Door Drops excluded) NB Figures for 2009 representative of Nov 08-Oct 09 Better targeting has benefited the consumer, as shown by the improvement in Direct Mail response rates since 2003
    6. 6. A decrease in DM volumes and increase in recycling has led to falls in the quantity of direct mail entering landfill Tonnes (thousands) of mailed direct marketing material, split by mode of disposal Sources: Direct Mail volumes from TNS consumer panel; Door Drop volumes from DMA Market Size report; volumes are for calendar years except 2009 which shows Nov 08– Oct 09 for DM and a forecast for Door Drop based on current trends. Average weights from Royal Mail MCS (‘Mail Characteristics Study’). Recycle rates from latest MEL study and previous DMA measures. 504.1 13% 87% 486.3 29% 71% 403.08 50% 50% 379.9 76% 24% Average weight of Direct Mail = 75.7g Average weight of Door Drop = 15.6g Source: RM Mail Characteristics Study
    7. 7. 289,920 tonnes of Direct Marketing Material recycled during 2009 (Source: MEL Recycle Rate Study 2009) In 2009 DM recycling equated to a saving of 382,698t of greenhouse gas emissions vs the landfill alternative For every 1 tonne of paper recycled rather than incinerated / sent to landfill, 1.32 tonnes of greenhouse gas emissions (in CO2 equivalents) are saved (Source: WRAP) 382,698 tonnes of greenhouse gas emissions saved in 2009 as a result of Direct Marketing recycling vs landfill
    8. 8. 22% of all advertising mail in the UK is now posted through RM’s PAS 2020 aligned sustainability services
    9. 9. Although recycling levels remains above 70%, recycling messages only appear on 26% of advertising mail +5.0% pts +3.3% pts Source: Consumer Panel Apr 2010-Mar 2011, UK Primary Advertising Mail Received Base: 1,000 households per month 12 month % point change
    10. 10. The new deal <ul><li>Introduction </li></ul><ul><ul><li>Our shared ambition with government </li></ul></ul><ul><li>Scope </li></ul><ul><ul><li>What and who it will cover (and who it won’t cover) </li></ul></ul><ul><li>Objectives and actions </li></ul><ul><ul><li>Waste prevention </li></ul></ul><ul><ul><li>Sustainable production & distribution </li></ul></ul><ul><ul><li>Recycling </li></ul></ul><ul><li>Governance & reporting </li></ul><ul><ul><li>How it will be managed </li></ul></ul>
    11. 11. Scope <ul><li>The GB direct marketing industry </li></ul><ul><li>All activities associated with physical direct marketing </li></ul><ul><li>Media and channels over which the DMA has control </li></ul><ul><li>Government to engage excluded materials and develop environmental actions to avoid ‘shift’ </li></ul>Directories Inserts Paid for newspapers and magazines Unaddressed advertising mail Free newspapers and magazines Addressed advertising mail Exclusions: Inclusions:
    12. 12. Objectives and actions <ul><li>Waste prevention </li></ul><ul><ul><li>Create a single opt-out scheme for door to door items </li></ul></ul><ul><ul><li>Provide guidance to consumers/local authorities on opt-out </li></ul></ul><ul><ul><li>Develop and implement an industry non-production report </li></ul></ul><ul><li>Sustainable production & distribution </li></ul><ul><ul><li>Create a new industry standard to replace PAS 2020 </li></ul></ul><ul><ul><li>Introduce tighter controls on paper use & supplier management </li></ul></ul><ul><ul><li>Develop an industry carbon calculator </li></ul></ul><ul><li>Recycling </li></ul><ul><ul><li>Tighter controls to ensure use of recyclable materials </li></ul></ul><ul><ul><li>Increase amount of mail with recycling messages </li></ul></ul><ul><ul><li>Promote mail recycling best practice across local authorities (Defra) </li></ul></ul>
    13. 13. Proposed Key Performance Indicators <ul><li>% Non-production (baseline to be determined) </li></ul><ul><li>% of households opting out of advertising mail </li></ul><ul><li>% of mail posted against new standard </li></ul><ul><li>% of mailers using RM sustainability services </li></ul><ul><li>% of authorities accepting window envelopes </li></ul><ul><li>% recycling rate (70% minimum) </li></ul><ul><li>Carbon footprint indicator to also be considered </li></ul>
    14. 14. Governance <ul><li>Deal steering group to be established </li></ul><ul><ul><li>Assess performance </li></ul></ul><ul><ul><li>Review emerging environmental needs </li></ul></ul><ul><ul><li>Propose amendments to the deal </li></ul></ul><ul><li>Group formed of: </li></ul><ul><ul><li>Direct Marketing Association (Chair) </li></ul></ul><ul><ul><li>Defra </li></ul></ul><ul><ul><li>Royal Mail (TBC) </li></ul></ul><ul><ul><li>Other government organisations and industry members (TBC) </li></ul></ul><ul><li>Group to produce annual report and plan </li></ul>
    15. 15. Your opportunity to comment…

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