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Retailers' Environmental Action Programme Retailers’ Environmental Action Programme Annual Report 2013 REAP Annual Report 2013 1 FOREWORD Our members are determined to fulfil their environmental responsibilities, despite the eco- nomic crisis which has hit retail as any other sector. Today, environmental sustainability is fully integrated into the overall strategy of the REAP – Retailers Environmental Action Programme - members and the commitment of the whole sector to tackle environmental challenges remains intact. Those suffering the worst effects of Europe’s economic woes, however, are her citizens. The cost of household bills, such as petrol and heating, is on the increase, while national austerity plans are cutting wages and welfare assistance. Increasingly, therefore, consumers have less to spend on the weekly shop. Nevertheless, REAP members are steadfast in their resolve to encourage their customers to adopt more sustainable lifestyles. The challenge for retail is to make the sustainable choice the easy choice for consumers. Where possible we will accom- pany them along the way. In this difficult climate, this fourth edition of our annual report is of particular importance to us. 2012 marks the beginning of the 2nd term of the Retailers Environmental Action Programme. Initially set up for a period of 3 years, the success of the Retail Forum for Sustainability has been such that, prolonging it for another three years was the obvious decision. Our main achieve- ments last year have been: • In-depth discussions on seafood and textiles, two product categories with high environ- mental impacts. Also addressed was water management, an issue which will continue to grow in importance in the coming years. • Reports from members and stakeholders on how the recommendations from the first REAP term were implemented showed good progress on energy efficiency and transport. • The Retail Agreement on Waste, which has to date been signed by 25 retail companies, including twenty REAP members. Signatories commit to carrying out at least two aware- ness-raising initiatives around waste, focusing on providing information to raise consumer awareness. With this agreement, REAP members have, yet again, demonstrated their leadership and ability to stimulate others to act as well. We would like to thank all stakeholders, as well as the European Commission, and in particular, Commissioner Janez Potočnik, for their staunch and unfailing support over the years. We must keep the momentum and urge you to continue your support. Only together can we achieve our commitment – to make tomorrow’s world a sustainable one. Baroness Lucy Neville-Rolfe Philip Clarke President, EuroCommerce President, European Retail Round Table (ERRT) Chief Executive Officer of Tesco PLC REAP Annual Report 2013 1 FOREWORD Foreword – European Commission The Retail sector is a key sector of the European economy. With almost 19 million persons employed in 3.6 million enterprises it is also the largest private economic sector within the EU. The way in which we produce and consume today is not sustainable in light of the expected demographic development in this planet. 9 billion people in 2050 demanding today’s quality of life enjoyed in the EU will exceed the limits of the natural resources of our planet. Change therefore is urgently needed. Retailers are in a unique position to promote more sustainable consumption patterns both through their daily contact with consumers and more sustainable production in partnership with their suppliers. They have an influence to green supply chains both up and downstream. The challenges the retail sector faces are numerous. The economic crisis has hit consumer spending patterns, with a strong demand for lower priced basic goods. At the same time the demand for sustainable products continues to expand, with consumers seeking better and more reliable information about the impacts of the products they buy: on the environment, on resources, and on working conditions of the people who make the products they find on shelves. The Retail Forum has reached numerous achievements in addressing key issues in this past year with regard to sustainable textiles and sustainable water management. I am happy to see many good examples of best practice highlighted in this report. For exam- ple, efforts to increase sustainable sourcing by offering more certified products, to introduce innovative solutions for cooling and freezing, and to organise EU wide and global campaigns aimed at reducing waste and food wastage in particular. These types of activity will significantly contribute to Europe’s resource efficiency agenda and I am confident that they will become an integral part of the retailers’ business plans to support the European Commission’s effort to promote circular economy in the EU. But there is no time for complacency, we all must step up efforts to upscale the individual solutions to green all our activities for the benefit of all - consumers, business and the envi- ronment. Karl Falkenberg, Director General of DG Environment 2 REAP Annual Report 2013 Foreword – European Commission About REAP Overview In March 2009, in response to the European Commission’s Action Plan on Sustainable Con- sumption and Production, European retailers decided to proactively contribute to the process, and launched the Retailers’ Environmental Action Programme (REAP). REAP is a voluntary initiative aimed at reducing the environmental footprint of the retail sec- tor and its supply chain, working towards the promotion of more sustainable products, and providing better information to consumers. The objective of the REAP is furthermore to provide a common platform to facilitate the sus- tainability dialogue with key stakeholders, whether suppliers, EU policy-makers or environ- mental organisations, but also to effectively stimulate actions by retail members. In order to achieve these goals, two specific instruments were created: the Retail Forum for Sustainability, and the Matrix of environmental Action Points (MAP). The Retail Forum for Sustainability The Retail Forum for Sustainability was launched in March 2009 by ERRT and EuroCommerce, with the support of then Commissioner for Environment, Stavros Dimas, and Commissioner for Consumer Affairs, Meglena Kuvena. The Forum is a multi-stakeholder platform that aims at exchanging views and best practices, as well as identify existing opportunities and barriers for the retail sector. Since it was launched, the European Commission has maintained its full support to the Retail Forum in the following years, and the mandate of the platform was renewed for an additional 3 years in 2012. Several topics of interest to the retail sector are open for analysis each year and, following every meeting, an issue paper is drawn up by the REAP Secretariat (ERRT and EuroCommerce) in collaboration with the European Commission, and taking into account the input from all stakeholders involved. These papers provide an overview on the issues and include recommendations for businesses and for policy makers. To this date, the Retail Forum has addressed the following topics: • Energy efficiency of stores • Optimisation of distribution systems • Marketing and effective communication • Timber • Environmental Life-cycle information for products used every day in households on daily use products • Measurement and reduction of carbon footprint of stores • Labelling • Packaging optimisation • Sustainable seafood • Waste minimization • Sustainability of textiles The conclusions of the discussions are available on the REAP website at: http://ec.europa.eu/environment/industry/retail/issue_papers.htm. REAP Annual Report 2013 3 ABOUT REAP Anyone wishing to attend the meetings of the Retail Forum can also use the above website to register. Sustainable water management, CSR reporting/environmental management and animal wel- fare are amongst the issues that are being or will be discussed in the near future. The MAP The Matrix of environmental Action Points is an open, dynamic list of commitments on envi- ronmental targets made by individual retail companies and associations. The actions are grouped into three categories: • What we sell: includes actions aimed at selling lower impact, better performing products and services. • How we sell: includes actions aimed at limiting environmental impacts from retail- ers’ own distribution activities (stores, distribution centres, transport and goods) as well as limiting environmental impacts of operations through the supply chain. • How we communicate: includes actions aimed at informing and influencing the consumer to make better choices and decisions in consuming, owning and using more sustainable products and services. The MAP, with its impressive list of retailers’ actions for the environment, is available at: http://ec.europa.eu/environment/industry/retail/reap/index_en.html Retail Agreement on Waste Measuring waste reduction at consumer level is very difficult in the absence of the involve- ment of other players, such as local authorities. Nonetheless, European retailers have com- mitted in October 2012 to carry out awareness raising initiatives, thus demonstrating their commitment to sustainability. 20 REAP members have committed to this retail waste agreement and will: 1. Carry out, at least, two awareness raising initiatives on a global and/or national level by the end of June 2014 on food waste reduction (for food retailers) or on their main product range e.g. textiles, electrical and electronic equipment (for non- food retailers). 2. Progress will be measured
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