An update on the latest legislation and retail recycling initiatives

Jane MilneDirector of Business Environment

British Retail Consortium

www.brc.org.uk/retailingclimate

The importance of retailing in the UK 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

And employs 11% of the total UK workforce

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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 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

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

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 Voluntary Initiatives

• WEEE

• Batteries

• Scottish Government zero waste strategy

• Courtauld II

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

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 vulnerabilities

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

5. 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 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

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

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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:• Protect people• Protect product• Deliver statutory

information• Deliver consumer

advice e.g. use by dates, recipe suggestions

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Future developments: technical

• 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

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