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Nigel Davies Practical Sustainability Profiting from Sustainability Conference York Dec 2014

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Conference Presentation at Profiting from Sustainability in York (UK) Dec 2014

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Nigel Davies Practical Sustainability Profiting from Sustainability Conference York Dec 2014

  1. 1. Practical Sustainability Business Risk Management Nigel Davies Manufacturing & Sustainability Director
  2. 2. What is Sustainability? WATER FOOTPRINT ? ENERGY USE? RECYCLING “Practical Sustainability ...... it’s no afterthought”
  3. 3. So – what is Sustainability?
  4. 4. Supply Chain Collaboration SAI Platform is the global initiative helping food and drink companies to achieve sustainable production and sourcing of agricultural raw materials
  5. 5. Farm Sustainability Assessment
  6. 6. Farm Sustainability Assessment This does NOT mean more forms to fill in !!
  7. 7. CARBON MANAGEMENT - THE SAFEST BET
  8. 8. 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 1/3rd population 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
  9. 9. 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
  10. 10. Carbon Footprint: Scopes 1-3 Fuel 17% N2O from Soil 35% N fertiliser 48% Difference between models 6%
  11. 11. Energy, Water, Waste: Bottom Line Benefits 1,450 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1,000 ENERGY USE PER TONNE WATER USAGE Energy used (kWh/to) CCA Target 2001-2 2002-3 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 kWh/Tonne Year 23% LESS WASTE & RECYCLING 12% LESS 1,400 1,200 1,000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 tonnes Year Landfill Recycled Total
  12. 12. 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
  13. 13. Muntons Carbon Footprint Total is interesting but drill down is of increasing importance Now express C footprint PRODUCT PROCESS SUPPLY CHAIN ELEMENT
  14. 14. Muntons Carbon Footprint Reduced 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 Solar PV 3.8 Biomass municipal 3.5 Municipal waste 0.2
  15. 15. Anaerobic Digestion Total project Cost: £5.5M Plant Life >25 yrs Reduced electricity cost: up to 25% at half price Income from Government Feed-in-Tariffs Off-site Tankering costs £732,000 ….. Sale of Bio-Fertiliser? £650,000 PAYBACK 4.6 years
  16. 16. How Muntons are helping farmers save money and reduce the supply chain carbon footprint
  17. 17. Influencing Farmers – changing perceptions 85% 15% Convinced Uncertain
  18. 18. “Carbon calculators are so hard to use” “What’s a good value?”
  19. 19. Which areas have the greatest impact? 300 290 280 270 260 250 YIELD +20% TRACTOR HOURS -20% 300 CAN – 20% LOW CARBON CAN 264 253 205 240 230 220 210 200 190 180 170 160 150 Base level 301kg CO2 eq/tonne CARBON FOOTPRINT OF MALTING BARLEY kg CO2eq
  20. 20. Low Carbon Malt Commitment We are committed to producing 100% low carbon malt using low carbon options to make a significant impact on our supply chain carbon footprint. WE HAVE CALCULATED OUR CARBON FOOTPRINT
  21. 21. To qualify for a low carbon contract growers must adhere to at least TWO of the following: .. 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
  22. 22. Compost REALLY works – Yorkshire Wolds trial +12% YIELD Better than Winter Barleys! “The Compost crops looked excellent right through from emergence to harvest” £200 per acre BENEFIT
  23. 23. Reducing Carbon Footprint of Beer 8-20% reduction in carbon footprint of beer* 13% 13% 4% 1% 6% 25% 39% Malt Brewing Packaging Transport Electricity Cooling Other Research on the Carbon Footprint of Beer (Beverage Industry Environmental Roundtable, June 2012 http://www.bieroundtable.com/files/Beer%20Final%20DEP.pdf 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
  24. 24. Reducing Carbon Footprint of baking: VICTORIA SPONGE I’m baked using 25% less sugar I look great, taste great and take less time to bake! P.S.
  25. 25. Reducing Carbon Footprint of baking: Cocoa-based muffins COCOA MALTICHOC
  26. 26. The journey of a thousand miles begins with a single step Confucius

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