M&S Systems for Success Environmental Toolkit MARCH 2021
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ENVIRONMENTAL SYSTEMS FOR SUCCESS A SUSTAINABILITY REFERENCE GUIDE FOR M&S FOODS SUPPLIERS INTRODUCTION M&S has been working proactively with suppliers on issues of ethical trade, environmental sustainability and lean manufacturing since the launch of Plan A in 2007. Over the years, through our Supplier Exchange programme, we have been lucky to capture best practise from experts and M&S suppliers which has helped M&S food suppliers drive forward positive change in these areas within their businesses. We have witnessed great successes from significant waste reduction programmes, through to fantastic employee engagement and significant cost savings due to lean efficiencies. The toolkit contains case studies from a variety of organisations of different scales, all facing different challenges and coming up with different approaches to overcome them. We hope that this toolkit will inspire you to look again within your own organisation and think – what can you do to continue to push this agenda on and ensure your business is fit for the future? ? HOW TO USE THIS TOOLKIT? This toolkit is developed from all the best practise that has been captured from the M&S supply base and clearly shows the journey from starting out developing a strategy through to a comprehensive integrated approach. We know that when it comes to developing a sustainability and human rights strategy there is no simple one size fits all so this toolkit is not designed to be a prescriptive guide; but instead a reference guide for your business to learn from others, and help develop your own strategy that works for your business. This toolkit: • Is not designed to replace M&S policies • Contains helpful links to find out more • Is not a prescriptive list, use it as a guide to develop your own strategy • Can be used to benchmark your current processes and approach 1 BUSINESS BENEFITS PAGE Environmental improvements have quantifiable business benefits and it is vital that senior management are 2 bought in to unlock these. EMS 2 ENVIRONMENTAL MANAGEMENT SYSTEMS An EMS is a vital framework to manage environmental issues and legal compliance, this section will help you 5 create and implement an EMS. 3 WASTE REDUCTION Outlines key steps to identify waste reduction opportunities, implement zero waste to landfill and to reduce 11 and redistribute food waste. 4 ENERGY AND EMISSIONS Summary of key resources to help you take action on your emissions, including top tips from suppliers. 21 5 WATER MANAGEMENT This section outlines key steps to take to manage water use in factories and on farms, including reducing 28 water use, management of waste water and water stewardship practices. 6 BIODIVERSITY Understand why biodiversity is important and how to take action on site, in your supply chain and in the 39 local community. 7 ENGAGING STAFF IN ENVIRONMENTAL IMPROVEMENTS It is vital that staff at all levels of an organisation are empowered to achieve environmental improvements. 44 1 ENVIRONMENTAL 1 BUSINESS BENEFITS Environmental risks and social inequality are making the world more complicated and unpredictable. Customers are increasingly aware of their personal impact on the world and businesses must work hard to build and maintain their trust. Growing pressure on natural resources and poor global stewardship may increase our costs, restrict our access to key raw materials and make our global supply chains more volatile. BUSINESS BENEFITS OF ENVIRONMENTAL IMPROVEMENTS From our experience over the past 10 years we have found that presenting environmental improvement activities as opportunities for the business has been critical to ensuring buy in and support at all levels in the organisation. In particular, the ability to put an actual number to the business case has been very important. M&S has highlighted five key business benefit categories: eco efficiency savings, brand reputation and differentiation, innovation, increased staff motivation and morale, resilience/ future proofing (against climate change and other factors). There are a number of elements of the business case that you can put actual numbers to, which helps in presenting a convincing case to senior management to motivate for a change. Some of these are shown below. The figures here SUGGESTED STEPS TO DEVELOPING are from research commissioned by M&S and carried out by Ergon which included an extensive study of a few key AND PRESENTING A BUSINESS CASE M&S Food suppliers to quantify the business benefits of sustainability improvements over 5 years (2007-2012). TO SENIOR MANAGEMENT: WRITE A SIMPLE, CONCISE NARRATIVE to demonstrate how the environmental strategy and action plan 1 help to deliver business objectives, using the business’ language ENERGY USE REDUCED COSTS/ REDUCED ADDITIONAL SAVINGS IN PURCHASE OF EMPLOYER REVENUE FROM LOGISTICS RAW MATERIALS LIABILITY/ WASTE USE AND (fuel efficiency and AND/OR PROPERTY RECYCLING reducing trips through ESTIMATE QUANTIFIABLE SAVINGS PACKAGING INSURANCE or sale of by-products and ask the finance department to sign it off. Put in place load efficiency) for other uses a process to regularly capture these savings ongoing 2 (see the list of quantifiable savings on the previous page) QUANTIFIABLE INTANGIBLE BENEFITS – at this stage it’s best to just record but don’t try to quantify these BUSINESS BENEFITS a. Brand reputation with customer (qualitative but keep records of awards, audit results, comments from buyers etc) b. Innovation and product differentiation (quantitative but keep a record of new products and new business opportunities due to sustainability attributes) X 3 c. Staff morale and motivation, attracting and retaining talent REDUCED UTILITY BILLS SAVINGS FROM (reducing costs of recruitment, training and absenteeism and benefits of improved productivity and quality) (Some of our suppliers achieved a 10-14% reduction in ELIMINATING WASTE electricity, gas and water bills through eco efficiency including reduced costs of solid waste and waste d. Future proofing/resilience (preparation against forthcoming activities. For example one saved £100,000 a year water disposal (£3million saved over 18 months legislation and taxes and avoiding fines and penalties) by installing a Free Cooling System and another by one company by reducing waste, energy and reduced gas consumption and therefore bills by 10% water use. Another supplier achieved a 13% reduction by installing a new gas meter and boiler. Others in water use costs in just one year, another saved a removed some of those costs entirely through six figure sum on waste disposal each year) investment in renewable energy or water recycling.) BALANCE THIS AGAINST THE COSTS OF PROPOSED CHANGES 4 (it may not be necessary to incorporate the full cost of replacement of equipment for example, only the ‘additional’ cost of the more sustainable option) 2 3 ENVIRONMENTAL Huge EMS CASE STUDY savings 2 ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS) GREENCORE – Environmental actions bringsignificantbusinessbenefits ? WHAT IS AN ENVIRONMENTAL MANAGEMENT SYSTEM “ It’s a tough retail climate. The world is AND WHY IS IT IMPORTANT? going on around us: inflation, raw materials and utilities. If you don’t have An EMS is a system designed to identify, understand (detailed in its environmental policy, objectives and vision and put sustainability at the and manage environmental impact reduction and targets) will be achieved. The aim is a comprehensive compliance with environmental legislation and other approach to managing environmental issues, forefront you will be left behind – our % applicable requirements. It provides a framework integrating environmental orientated thinking returns would have fallen otherwise. I’ve detailing how an organisation’s environmental goals into every aspect of business management. no doubt that if we hadn’t introduced these systems, we wouldn’t be in the great shape we’re in re profitability. ” Greencore Senior Management OVERVIEW OF THE EMS JOURNEY Greencore is a convenience food company supplying M&S with chilled prepared meals and sandwiches. GAP ANALYSIS ENVIRONMENTAL ACTIONS AND PROJECTS improvement identified through Environmental Management System, monitoring use in each area. • Improvedelectricityefficiency. 17% reduction in Financial savings from utilities. electricity used per tonne of product from 2007 to 2019. Achieved by installing free cooling in 3 units • Now achievedZerowastetolandfill. Big focus on INTERNAL ENVIRONMENTAL REVIEW (IER) over 2 years (cost of installation £70,000, savings communication, training and changing behaviour To identify relevant legislation/requirements, key aspects and impacts and their relative risk and £100,000 a year), installing energy efficient lighting to increase separating waste for recycling. Six figure importance, in order to decide on your key areas of focus. and improving compressed air efficiency. Many overall savings from waste minimisation and sending ideas for energy efficiency measures generated in less to landfill (2-3 year payback on investment). staff engagement workshops. New bespoke Energy Revenues now made from cardboard sent for Management System enables staff and management recycling and food waste. AGREE EMS to see where energy is being used in real time, • Staff awardsandrecognition for making to focus on the highest consumers of energy environmental savings. e.g. boiler rather than oven. • Sustain able supply chain. Worked with their supply • Improvedgasefficiencyandreducedconsumption. chain to move to the use of independently verified IMPLEMENT 59%