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Dave Forsey Chief Executive 19 July 2012 - Sports Direct International

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Environment<br />

The Group is aware that its operations have an impact on the<br />

environment and tries to reduce any negative impact while working<br />

towards compliance with the Government’s Carbon Reduction<br />

Commitment. Building upon investigations in previous years we<br />

have identified property (in particular energy usage in our stores),<br />

transport and waste management at both Shirebrook and in-store<br />

as areas where we can make a difference.<br />

Carbon Footprint Analysis<br />

The single most significant element of the carbon footprint of the<br />

Group is the usage of electricity. Electricity usage contributes<br />

approximately 98% of the footprint.<br />

During the year the Group has made further investments and<br />

continued to trial even more energy efficient solutions, using internal<br />

benchmarks to identify opportunities to improve, and rolling out<br />

proven technologies.<br />

Smart meters now actively monitor and report 98% of the energy<br />

used in our UK store portfolio.<br />

This has contributed to a pro rata saving across the largest 336<br />

like-for-like stores of 4.2%. This saved the equivalent of 1,890<br />

tonnes of CO 2 . (Last year’s saving was 3,635 tonnes.)<br />

kWh per ‘000 sq. ft<br />

82.9<br />

FY08<br />

76.59<br />

70.23<br />

63.63<br />

60.96<br />

FY09 FY10 FY11 FY12<br />

The Group set its energy efficiency benchmarks against the FY08<br />

year: when compared with the base year of FY08 the total reduction<br />

in energy usage across similar stores is 26.5%.<br />

This year we were placed in 56th position in the CRC Energy<br />

Efficiency scheme league table, ahead of retailers such as M&S,<br />

Tesco, Morrison’s, JJB, Debenhams, Sainsbury’s and John Lewis.<br />

Annual savings since the FY08 base year<br />

FY09<br />

+7.6%<br />

FY10<br />

+8.3%<br />

FY11<br />

+9.4%<br />

FY12<br />

+4.2%<br />

The emphasis continues to be on good housekeeping, supported<br />

with targeted investment to ensure that high standards are<br />

maintained. Energy consumption reduction continues to be a key<br />

performance measurement.<br />

During the Year, the Group has worked with its largest waste<br />

contractor covering the majority of the UK stores. This work led to<br />

the diversion of the residual waste to a materials recovery facility.<br />

As a result there is a much higher level of waste stream segregation<br />

thereby minimising the amount of waste going to landfill.<br />

Where possible we recycle electrical waste, ink toners, redundant<br />

IT equipment and light bulbs. This Year we recycled 5,546<br />

(2011:5,546) units of electrical equipment.<br />

During the Year 55 tonnes of waste paper (2011: 26 tonnes), 6,622<br />

tonnes of cardboard (2011: 6,237 tonnes), 127 tonnes of metal<br />

(2011: 116 tonnes) and 453 tonnes of plastic (2011: 488 tonnes)<br />

were recycled.<br />

The Group has always kept its transit packaging to a minimum by<br />

the use of metal roll cages. Where it is necessary to send transit<br />

packaging to shops (e.g. to ensure cleanliness of clothing), it is<br />

returned to the centre for re-use or recycling as appropriate.<br />

Our fleet of trucks haul recyclable cardboard and polythene from<br />

the stores back to the Head Office where it is separated into<br />

recycling streams.<br />

As reported last year, all stores now use biodegradable carrier bags<br />

and provide the option of a Bag for Life. During the Year, the Group<br />

has raised the profile of the Bag for Life, actively promoting the use<br />

of the bag with high levels of employee engagement.<br />

Our aims for the coming years are to further improve energy<br />

efficiency across the stores and to continue to minimise waste.<br />

63

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