john-lewis-partnership-plc-annual-report-2015

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58 John Lewis Partnership plc Annual Report and Accounts 2015 Partnership performance (continued) ENVIRONMENT review The Partnership’s approach to the environment is outlined in the Constitution in rule 109 to “take all reasonable steps to minimise any detrimental effect its operations may have on the environment, and to promote good environmental practice”. The challenges we face The issue of climate change should be a primary concern for all businesses. For the Partnership, it matters both in terms of how we minimise our impact on the environment, and how the effects of climate change will impact us in the future. We need to take action so that we can carry on growing, while minimising our direct negative environmental impacts and continuing to ensure we source products from environmentally sustainable sources. Our Carbon Plan The biggest contributor to our operational carbon footprint is the energy we use in our estate. In 2010 we published our Carbon Plan with an absolute operational emission target of 15% CO 2e reduction. This is an exceptionally challenging target in particular with our current level of growth being a 33% increase in sales since 2010. In addition we recognise the changes in global carbon reporting coming into effect in 2015 will have a material effect on the way we report our carbon footprint. During 2014 we have also gained valuable insight on the application and viability of on-site renewable energy technologies which have proved very challenging. We are therefore reviewing our future Carbon Plan targets in line with the Partnership’s projected growth rate, the balance of that growth to be delivered between new shops and online, the change in reporting guidance and the availability of viable on site renewable technology. We will ensure that these changes do not deter from the Partnership’s goal of reducing our environmental impact. In 2014 we have continued to innovate and develop technologies that help make us more efficient. This has included building two new Partnership emissions award-winning highly energy efficient shops, an Absolute industry leading Partnership LED roll emissions out programme, tonnes CO 2 e innovative green fuel trucks and a 19% 515,380 509,931 539,275 546,358 583,915 reduction in refrigerant emissions since last year. This year our trading was 53 weeks (usually 52) so in light of this, and an 11% increase in electricity emission factors, we believe our reduction in carbon intensity is good progress. Responsible 2011 2012Development 2013 2014 2015 Framework Assured by DNV GL Our Responsible Development Framework helps us design, operate and manage our estate in a way that meets the needs of our customers, Partners and the wider community, while Transport minimising emissions our environmental impact. Since Transport its launch, emissions our focus tonnes has been CO 2 e to per embed £m sales it into our construction process. In 2014 we 8.8 8.7 8.4 8.4 8.5 worked on developing a tool to do this, which we will implement in 2015. Once again this year, we chose shops to trial new technologies, new materials, and new ways of end-to-end working. In 2014, we also developed a planting policy that will have 2011 2012 2013 2014 2015 positive outcomes for wildlife, carbon reduction and Assured the by community. DNV GL Partnership emissions Absolute Partnership emissions tonnes CO 2 e 515,380 509,931 539,275 546,358 583,915 2011 2012 2013 2014 2015 Assured by DNV GL Partnership emissions tonnes CO 2 e per £m sales 62.8 58.4 56.5 53.7 53.4 Transport emissions Transport emissions tonnes CO 2 e per £m sales 8.8 8.7 8.4 8.4 8.5 2011 2012 2013 2014 2015 Assured by DNV GL 2011 2012 2013 2014 2015 Waste Assured Global by average diverted from landfill DNV GL surface temperature change (relative to 1986–2005) Proportion of Partnership waste O C diverted 6 from landfill % 480.8 89.0 92.1 39 96.1 96.5 2 0 -2 32 2000 2050 2100 Source: 2011 IFCC 2012 2013 2014 2015 Assured Focus by DNV on GL climate change 2015 is set to be a vital year in addressing the challenge of climate change as world leaders work towards ratifying a new international climate change agreement in December. These international negotiations offer Governments an opportunity to draft long-lasting agreements to tackle climate change. Business will be integral to helping to achieve these ambitions. Partnership 62.8 5 2011 2 Assured by DNV Waste di Proportion diverted fro 80.8 8 2011 2 Assured by DNV
Annual Report and Accounts 2015 John Lewis Partnership plc 59 Transport We aim to reduce transport emissions by 15% by 2020. This excludes the effect of business growth, which means we need to reduce emissions by around a half for each item we carry. As a result of the increase in sales and the shift to greater fulfilment of online orders, this has been a challenge. However, we aim to meet our target by reducing miles driven, improving fuel consumption, and exploring lower carbon fuels. See www.johnlewispartnership.co.uk/ ourenvironment for more on our approach. Waste We aim to divert 98% of our operational waste from landfill by year-end 2015/16 which we are on track for. We continue to look for opportunities to increase the use of recycled materials in our buildings and, where possible, to make this a closed-loop solution. See www.johnlewispartnership.co.uk/ ourenvironment for more information. Through our Waitrose Farm Risk assessment, we are encouraging our suppliers to understand their environmental footprint. Supply chain emissions We recognise there is much more work to do with our supply chain partners, communities and customers to widen our circle of influence and create bigger change through collaboration. See pages 56, 64, 72 for how we are managing our impact through sourcing. Collaboration We work with a number of organisations to help us reduce our environmental footprint, primarily through research, and engagement with policy makers. For example, we sit on a number of the British Retail Consortium’s (BRC) working groups, including the Environmental Policy Action Group. Our priorities To ensure we are driving and measuring our progress in the right areas, we will identify and establish key indicators which we will start reporting against in 2016. Partnership emissions For more on our environmental activities: www.johnlewispartnership.co.uk/ourenvironment Absolute Partnership emissions tonnes CO 2 e 515,380 509,931 539,275 546,358 583,915 2011 2012 2013 2014 2015 Assured by DNV GL Transport emissions Transport emissions tonnes CO 2 e per £m sales 8.8 8.7 8.4 8.4 8.5 2011 2012 2013 2014 2015 Assured by DNV GL Partnership Using low carbon emissions fuels We currently operate 44 trucks using Absolute gas dual-fuel Partnership technology. emissions These vehicles tonnes CO 2 e use 515,380 both diesel 509,931fuel 539,275 and methane 546,358 gas 583,915 – the gas displaces around 40% of diesel. Methane produces less carbon emissions than diesel, in particular where bio-methane is used. One of our dual-fuel trucks running on bio-methane will reduce overall carbon emissions by 36%. 2011 2012 2013 2014 2015 Assured by DNV GL Transport Partnership emissions emissions tonnes CO 2 e per £m sales 62.8 58.4 56.5 53.7 53.4 Transport emissions tonnes CO 2 e per £m sales 8.8 8.7 8.4 8.4 8.5 2011 2012 2013 2014 2015 Assured by DNV GL 2011 2012 2013 2014 2015 Assured by DNV GL Waste diverted from landfill Proportion of Partnership waste diverted from landfill % 80.8 89.0 92.1 96.1 96.5 2011 2012 2013 2014 2015 Assured by DNV GL Introduction Partnership difference Principles Strategy Performance Governance Financial statements Par 6 2 Assu Wa Pro dive 8 2 Assu
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