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OUR FIVE-FOLDENVIRONMENTALAMBITIONOPENPROGRESS REPORT 2014


INTRODUCTIONAND WIDER AIMSINTRODUCTIONOUR WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSThe food and drink industry is acutely conscious of theresponsibilities that come with our scale and reachas the UK’s largest manufacturing sector. As part of aglobal food production system we face the fundamentalchallenges of world population growth, increasedpressure on natural resources and the need to mitigateand adapt to climate change.To meet these challenges our sector has setitself the aspiration to grow sustainably by 20%by 2020. Through our Five-fold EnvironmentalAmbition, we have been successfullydelivering major improvements in resourceefficiency since 2007. Our member companiesare making improvements at all stages ofproduction and introducing new technologiesand solutions as well as products. Thisinnovation is helping us towards our goal ofproducing more from less and with less impacton the planet, and we know that science andtechnology will be fundamental to drivingfurther improvements in sustainable production.Our members’ commitment is clear, and I amdelighted to report in 2014 that we achievedour ambition to reduce our carbon dioxideemissions way ahead of the original targetof 2020. Our members have delivered anabsolute reduction of 35% in their emissionsmeasured against a 1990 baseline. This is afantastic achievement – it means that sincethe launch of the Five-fold Ambition, absoluteemissions have fallen by 664,000 tonnesof CO 2- equivalent to the annual emissionsarising fromaround 200,000average homesin the UK. Ofcourse oursuccess begsthe question of‘what next’ and the FDF will be consideringthis over the next few months – but the driveto reduce emissions whilst increasing ouractivities and outputs remains undiminished.FDF’s Five-fold Environmental Ambition isthe roadmap for collective environmentalperformance and the FDF is committed tohelping member companies adopt life-cyclethinking to help achieve more sustainableproduction and consumption, as well aspromoting innovation and technology to help usmeet the environmental, social and economicchallenges we face.Melanie LeechDirector General, FDF (2005 - 2014)• Our role as food and drink manufacturers is to supplyconsumers with safe, nutritious, appetisingand affordable food and to help them makesustainable choices which will secure these benefitsfor the future.• We will lead by example, building on the success ofFDF’s Five-fold Environmental Ambition to extendour influence across the supply chain as part of alonger term food strategy.• We will work with our suppliers, customers, employees,policy makers and other stakeholders to develop thenecessary information, skills and business environmentto deliver continuous improvement in the use ofenergy, water and other natural resources to helpaddress the pressing global issues of climate changeand loss of biodiversity.• We will encourage the development of life-cyclethinking throughout the supply chain and tryto remove systemic barriers to improving resourceefficiency, from the sourcing of raw materials to thedisposal of post-consumer waste.• We will promote innovation and technology toreduce waste and extract maximum value from theresources we use and to help consumers get the mostfrom our products.CO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


INTRODUCTIONAND WIDER AIMSFOREWORDFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSI am so pleased to have been asked to write the foreword for this report, whichshowcases that economic growth and success need not be at the expense ofenvironmental ambition.My vision is for the UK food and farmingindustry to be the best in the world: exciting,dynamic, and at the forefront of technology andinnovation. The case studies in this report showwhat can be done, both for the productivity andcompetitiveness of individual businesses andthe environment, when you embrace innovativeprocesses and products. For FDF members,producing more with less isn’t a series of buzzwords, it’s an opportunity to increase efficiencyand competitiveness.This report sets out the progress made bythe industry in the last year. FDF membershave achieved their CO 2reduction targetway ahead of the original target, cutting theiremissions by 35%. They have also reducedtheir water use by 6.1 million m 3 , along withgood progress against waste, packaging, andtransport emissions targets. These are realachievements and it’s encouraging to see thatthe FDF remains committed to working withits partners across the supply chain to face theenvironmental and economic challenges of thefuture.Our food chain is now worth £103bn,employing 13% of the UK workforce; aneconomic powerhouse. But I know that tokeep growing and contributing to the economy,the industry needs a skilled workforce andaccess to the most innovative technology. ThisGovernment is investing in apprenticeshipsand science and education. The numberof apprenticeships in the food sector hasincreased sevenfold since 2010.Food businesses are expanding and thrivingand as a Government we are opening recordnumbers of new markets, abroad and at home.We’ve opened 600 export markets since 2010and in July we launched Peter Bonfield’spublic sector procurement of food and cateringservices. We have re-vamped and simplifiedthe way we buy food, opening up a sectorworth £400m; I would encourage all FDF’smembers, big and small, to take advantage ofthis opportunity.This report demonstrates the FDF’scommitment towards sustainable growth,where they are leading the way. I look forwardto a bright future working together, enablingour world-class industry to grow and compete.Elizabeth TrussSecretary of State for Environment,Food and Rural AffairsFOR FDF MEMBERS,PRODUCING MOREWITH LESS ISN’T ASERIES OF BUZZWORDS, IT’S ANOPPORTUNITYTO INCREASEEFFICIENCY ANDCOMPETITIVENESS.CO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


INTRODUCTIONAND WIDER AIMSFOREWORDOUR CORE AMBITIONSOUR COREAMBITIONSPROGRESSHIGHLIGHTSTackling direct environmental impacts in our members’ own operations remains at the core of FDF’s Five-fold Environmental Ambition - continuing to deliversignificant financial savings as well as measurable progress against class-leading targets in carbon reduction, water saving, food waste, packaging and transport.We have also been able to show that this can be achieved while increasing output - decoupling growth from the impacts of production - generating employmentand income across the economy, while also adding value as the largest customer of UK agriculture.CO2EMISSIONSOUR CURRENT TARGETS2014 PROGRESSCO2EMISSIONSWASTEPACKAGINGWATERAchieve a 35% absolute reduction in CO 2 emissions by 2020 againsta 1990 baseline.Seek to send zero food and packaging waste to landfill at the latest by 2015and make a significant contribution to WRAP’s Courtauld Commitment 3 targetto reduce traditional grocery ingredient, product and packaging waste in thegrocery supply chain by 3% by 2015, from a 2012 baseline.Make a significant contribution to WRAP’s Courtauld 3 target to improvepackaging design through the supply chain to maximise recycled content asappropriate, improve recyclability and deliver product protection to reduce foodwaste, while ensuring there is no increase in the carbon impact of packaging by2015, from a 2012 baseline.Achieve significant reductions in water use to help reduce stress on thenation’s water supplies and contribute to an industry-wide absolute target toreduce water use by 20% by 2020 compared to 2007.FDF members have achieved an absolute reduction of 35% in CO 2emissions from their use of energy in manufacturing operations in2013 compared to the 1990 baseline. This is an excellent resultmeaning FDF members have now met the ambition set for 2020.FDF members have reduced the amount of food and packaging waste theysend to landfill to 3% of total waste from operations. The first year results ofthe Courtauld Commitment Phase 3 show that there has been little overallchange in the amounts of supply chain waste in 2013, compared to 2012 butfood waste prevention efforts have led to 80% more food being redistributed.The first year results of the Courtauld Commitment Phase 3 show thatsignatories have delivered an impressive 4.5% reduction in the carbonimpact of packaging against the 2015 zero increase target.Between 2007 and 2013 Federation House Commitmentsignatories collectively made a 15.6% reduction in their wateruse (excluding that in product). This reduction is equivalent to 6.1million m 3 water or 2,430 Olympic-size swimming pools.WASTE PACKAGING WATER TRANSPORTTRANSPORTEmbed environmental standards in our members’ transport practices, includingcontracts with hauliers as they fall for renewal, to achieve fewer and friendlier foodtransport miles and to make a contribution to the Freight Transport Associationadministered Logistics Carbon Reduction Scheme target to reduce the carbonintensity of freight operations by 8% by 2015 against a 2010 baseline.Results for the second year of the Logistics Carbon Reduction Schemeshowed that it delivered a 4.3% reduction average kg of CO 2equivalentemissions per vehicle km in 2012 compared to 2010.SUSTAINABLESOURCINGRESOURCES


INTRODUCTIONAND WIDER AIMSFOREWORDPROGRESS HIGHLIGHTSOUR COREAMBITIONSPROGRESSHIGHLIGHTS35%REDUCTION INCO 2 EMISSIONSNO SIGNIFICANTCHANGE INSUPPLY CHAINWASTE15.6%REDUCTION INWATER USE4.5%REDUCTION IN CARBONIMPACT OF PACKAGINGTHE EQUIVALENT OF2,430 OLYMPICSIZEDSWIMMINGPOOLS4.3% REDUCTION INTRANSPORT EMISSIONSCO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


INTRODUCTIONAND WIDER AIMSCO 2EMISSIONSReducing CO 2emissions remains the cornerstoneof our industry’s efforts to increase the sustainabilityof food and drink manufacturing and contribute to thegrowth of a greener economy in the UKCO 2AMBITION:To achieve a 35% absolute reductionin CO 2 emissions by 2020 against a1990 baseline.CO2EMISSIONSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSIn 2013 FDF members achieved an absolute reduction of35% in CO 2 emissions from their use of energy in manufacturingoperations measured against a 1990 baseline. This is an excellentresult meaning FDF members have now met the ambition set for2020. We believe that this is as a result of continued focus onenergy efficiency and low carbon innovation by FDF membersset against a background of rising output and a difficult economicclimate in the UK in recent years.% Reduction CO2 Emissions1990 1995 2000 2005 2010 2015 20200%-5%-10%-15%-20%-25%-30%-35%-40%CO 2EMISSIONS REDUCTION-12%-17%-19%-21%2010 target-20%-25%-32%-27%-35%Of course this raises the questionwhat next? In 2015 FDF will beanalysing how our success wasachieved to better understand thereasons for progress to date andto look at possible options to revisethe ambition. This will focus on thelevel of the target, the timescaleover which the target is set andhow FDF can continue to promotebest practice.In 2014 FDF has been workingwith DECC and BIS on the Foodand Drink ‘Industrial Roadmapfor Carbon Reduction andEnergy Efficiency to 2050’. Theobjective of this project is toidentify those opportunities andtechnologies that could help2020 target-35%further deliver a low carbon foodand drink manufacturing sectorbeyond FDF’s current Five-foldEnvironmental Ambition timehorizon of 2020. This projectreports in early 2015. Also nextyear FDF will be working withDECC on the review of the FDF2020 Climate Change Agreementtarget. Both of these activities willinform FDF’s review of the futureambition on CO 2reduction fromenergy use.WASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGMEMBER CASE STUDIESRESOURCES


INTRODUCTIONAND WIDER AIMSMEMBER CASE STUDIESFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSREAD FULL CASE STUDYHaving achieved significant reductions in water and waste, the focus forthe Kellogg UK business is in reducing energy use and greenhouse gasemissions.The engineering teams at the Kelloggfactories in Manchester and Wrexhamhave identified innovative applications forthe capture and use of heat as an energysource, which has helped reduce gasconsumption.Its Manchester factory operates awastewater treatment plant where heatenergy would have traditionally escapedto the atmosphere from the treatmentprocess. The site is now putting this heatto good use, using an advanced heatpump system that cools the wastewatertreatment tank and also uses the energyrecovered to heat water for cleaning andstaff use on site. The Wrexham factory hasinitiated a project to recover previouslywasted energy from the exhaust systemson the cookers, and this is used to preheatboiler feedwater.Both projects have recognised energyreductions of over 3,700MWh with apayback of less than four years. TheManchester factory has reduced itsgreenhouse gas emissions by 24% since2009 and is now seen as a global frontrunner within Kellogg for meetingreduction targets.“As a company, and as individuals, we are passionate aboutenriching and delighting the world through foods andbrands that matter. We understand that people care abouthow the foods they eat are grown and produced. That’s whyenvironmentally sustainable practices are such a crucial partof ensuring our brands remain relevant with consumers.”Diane Holdorf,Chief Sustainability Officer, Kellogg CompanyKellogg’s heat recoverysystem in WrexhamNestlé’s Fawdon factory acts as a ‘lighthouse’ facility where an operationalsustainability strategy and supporting activities can be developed, tested androlled out to other sites worldwide.Through an investment of more than £3.2million, the installation of a state of theart effluent plant in Nestlé’s confectioneryfactory in Fawdon has delivered a groundbreaking sustainable solution to boostresource efficiency.Designed, built and commissioned byClearfleau, a British renewables technologycompany, this facility converts trade effluentand residual confectionery ingredients intorenewable energy. The on-site anaerobicdigestion plant combines renewableenergy production with waste and nutrientmanagement and helps reduce greenhousegas emissions, reducing the site’s carbonfootprint. The unique process is the first ofits kind, taking both solid and liquid wasteand then using natural biological digestionprocesses to produce clean water andmethane gas.The biogas produced is used to run a microcombined heat and power (CHP) plant,generating 300kWe of electricity as well asthermal energy, reducing greenhouse gasemissions and exposure to risingenergy prices.“The FDF Five-fold Environmental Ambition has complementedour sustainability strategy and drive towards innovative solutionsto reduce our environmental impact.”Inder Poonaji,Head of Sustainability, Nestlé UK & IrelandREAD FULL CASE STUDYNestlé’s anaerobic digestionplant in FawdonCO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


WASTESending food and packaging waste to landfill not only wastes the resources used in their production,but also adds to total greenhouse gas emissions through decomposition. Even though most food wasteis generated by households rather than manufacturers, FDF members recognise the need to lead byexample in their own operationsCO2EMISSIONSINTRODUCTIONAND WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSFDF’s waste reduction target isdelivered through the Manufacturing andRetail target of the WRAP CourtauldCommitment, a voluntary agreementinvolving manufacturers and retailers.First year results under Phase 3 showthat there has been little overall changein the amounts of supply chain wastein 2013 compared to 2012, althoughrecycling and recovery have bothincreased and there has been an 80%increase in food being redistributed forhuman consumption.In terms of progress towards the FDFzero waste to landfill target, the latestsurvey results of members’ food andpackaging waste arisings were publishedearlier this year jointly with WRAP. Theseresults confirmed that members continueto find new ways to prevent or otherwisedivert their food and packaging wastetowards recycling and recovery awayfrom disposal, sending only 3% to landfillin 2012 compared to 16.5% in 2006.Recycling showed a significant increaseon previous surveys with 28% of allwaste managed in this way increasing to96% for used packaging alone. The focusgoing forward will be on further reducingmixed waste to landfill.We have been actively promotingbroader industry engagement on foodwaste prevention within our Europeanassociation FoodDrinkEurope through ourleadership of its Food Wastage Taskforce.The Taskforce has recently publisheda progress report on the actions beingundertaken by Europe’s food and drinkmanufacturers to tackle food wastageboth within their own operations and upand down their supply chains in supportof the European Joint Food WastageDeclaration. This includes examplesof FDF’s work with WRAP and otherstakeholders.WASTE AMBITION:Seek to send zero food and packagingwaste to landfill at the latest by 2015and make a significant contribution toWRAP’s Courtauld Commitment 3 targetto reduce traditional grocery ingredient,product and packaging waste in thegrocery supply chain by 3% by 2015,from a 2012 baseline.WASTEPACKAGING WATER TRANSPORTSUSTAINABLESOURCINGMEMBER CASE STUDIESRESOURCES


MEMBER CASE STUDIESINTRODUCTIONAND WIDER AIMSOUR COREAMBITIONSPROGRESSHIGHLIGHTSAt the end of 2013, Premier Foods achieved its target to send zero waste tolandfill by 2015, a full two years earlier than planned.Premier Foods Zero Waste to Landfilljourney began back in 2010. The companyset two challenging environmental targetsto send zero waste to landfill by 2015and achieve zero net spend on wastemanagement.To support the delivery of its wastemanagement objectives it established‘Environmental Champions’ at each of its30 UK manufacturing sites and launcheda ‘Green Matters’ employee environmentalawareness programme. The aim of thisprogramme is to encourage employeesREAD FULL CASE STUDYto think differently about waste andconsider it as a ‘lost resource’ with both anenvironmental and financial value.If Premier Foods had not set theseambitious targets and carried on usinglandfill, its waste bill would now be inthe region of £1.9m and continuing toincrease year on year.Premier Foods has achieved itstarget to send zero waste to landfilltwo years early“Our commitment to sustainability is an important pillar ofour category growth strategy and helps shape the way we dobusiness. We’ve continued to make good progress againsteach of the Five-fold Environmental Ambition objectives. I’mparticularly proud that we achieved our target of sending zerowaste to landfill two years early, driving both environmentaland cost benefits.”Gavin Darby,CEO, Premier FoodsREAD FULL CASE STUDYKP Snacks is continuously working to minimise its environmental impact and hasachieved zero waste to landfill status at all its sites.For the last five years KP Snacks hasbeen focused on waste reduction atits manufacturing sites and now all itsmanufacturing sites, as well as the HeadOffice in Hayes, are zero waste to landfill.Achieving this has been a complex task -the company has worked hard to removeexcess packaging, recycle more and improvethe general awareness of waste amongstemployees.At the home of McCoy’s in Teesside, forinstance, staff accompanied waste skipsto local landfill sites to better understandexactly what the site was sending to landfill– then communicated this to colleagues tohelp develop a zero waste approach.As well as tackling packaging and productionwaste, a number of innovative ideas havehelped eliminate food waste to landfill, suchas a project at Tanfield to turn waste saltinto salt lick for cattle or road grit, and newequipment at Teesside to recover wastestarch from the potato wash and resell it forproducts such as wallpaper paste.“Keeping waste reduction front of mind with our colleagues isan important part of delivering our long term business vision.It also generates significant cost savings that contribute to oursuccess overall. Our pursuit of reduced waste at every level ofour business continues!”Mark Thorpe,Managing Director of Operations, KPWaste salt fromthe productionof bakedsnacks atTanfield is nowcollected, soldand re-used inproducts suchas road gritor salt lick forcattleCO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


PACKAGINGPackaging plays an essential role in helping to ensure the safety, quality and shelf-life of food and inconveying important information to consumers about issues such as use, storage, nutrition, ingredientsand origin. Although on its own packaging contributes relatively little to the total product environmentalfootprint, the innovations being made to packaging and the information it carries have much potentialto further improve efficiency and reduce waste across the whole supply chain including in the homeCO2EMISSIONSINTRODUCTIONAND WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSOur ambition to optimise packaging isdelivered through FDF member activitiesunder the carbon reduction target of theWRAP Courtauld Commitment. First yearresults for Phase 3 of the Commitmentshow that signatories have delivered animpressive 4.5% reduction in the carbonimpact of packaging against the 2015zero increase target.This equates to a 16kt (0.6%) reduction intotal packaging by weight of which primarypackaging is down by 32kt and single usetransit is up by 16kt. Transit packagingplays an important role in protecting foodand drink products and the associatedprimary packaging from damage.The number of FDF members signed upto the On-Pack Recycling Label Scheme- a UK-wide consistent messaging systemto help consumers recycle more - currentlystands at 24.FDF has continued to work with otherpackaging and food industry organisations,local authorities and WRAP on ways togive the ‘Fresher For Longer’ initiativelaunched in 2013, under WRAP’s LoveFood Hate Waste programme morenational coverage and buy-in, followingthe successful national conference held inFebruary 2014.Following publication by the EuropeanCommission (EC) of its legislativeproposals to review the packagingrecycling and other waste relatedtargets, FDF has contributed to aFoodDrinkEurope lobbying position forthe Council and European Parliament.This puts forward the case for a sharedresponsibility approach, involving allrelevant stakeholders along the wastemanagement chain, to be reflected inthe final legislation given that this hasdelivered high levels of recycling of usedpackaging at lower cost to consumers andto society overall. This activity will be takenforward into 2015 following the EC’sannouncement of its intention to replacethese legislative proposals with somewhich are even more ambitious.PACKAGING AMBITION:To make a significant contribution toWRAP’s Courtauld 3 target to improvepackaging design through the supplychain to maximise recycled content asappropriate, improve recyclability anddeliver product protection to reducefood waste, while ensuring there isno increase in the carbon impact ofpackaging by 2015, from a 2012baseline.WASTEPACKAGINGWATER TRANSPORTSUSTAINABLESOURCINGMEMBER CASE STUDYRESOURCES


MEMBER CASE STUDYINTRODUCTIONAND WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSCoca-Cola Enterprises (CCE) is dedicated to reducing the environmentalimpact of its packaging and focuses on producing less material overallwhilst using a higher proportion from recycled and renewable sources.Sustainability is an ‘always on’process for CCE and is a fundamentalconsideration for its entire businessoperation.In 2014 the company launched itsPlantBottle 500ml, which containsup to 22.5% plant based materialand 25% recycled polyethyleneterephthalate (PET), helping to reducereliance on fossil fuels. CCE has alsolightweighted both its bottles and cans,helping to save 5.2m tonnes of CO 2peryear. Overall, 27% less packaging isnow used than in 2007.CCE has also continued to transformPET recycling in the UK with itsinvestment in Continuum Recycling,a plastics reprocessing site, openedin 2012, which is the result of a jointventure with ECO Plastics. This year,the site passed the landmark of abillion bottles processed, and is capableof reprocessing nearly 50% of all theplastic bottles collected in the UK.“Sustainability is a fundamental considerationacross our entire business in Great Britain and weare committed to minimising the environmentalimpact of our products and processes. The Five-foldEnvironmental Ambition allows us to reflect uponthe gains we have made to improve efficiency acrossCCE and also motivates us to continue in our efforts.”Leendert den Hollander,CEO, Coca-Cola Enterprises LtdREAD FULL CASE STUDYCoca-Cola’sPlantBottleplastic is madeusing 22.5%plant materialswith up to 25%recycled plasticCO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


WATERThe water used in the manufacturing process is a relatively small part of total water use in the foodchain. But increasing concern over the future balance of supply and demand here in the UK meansthat all our water resources need to be used as efficiently and sustainably as possibleCO2EMISSIONSINTRODUCTIONAND WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSFDF and our members are committedto making a collective contribution to anindustry-wide absolute target to reducewater use, outside of that embeddedin products, by 20% by 2020 against a2007 baseline.This ambition is being delivered throughthe Federation House Commitment(FHC) launched in 2008 to improvewater efficiency in the food and drinkmanufacturing sector.In partnership with WRAP we havetracked progress on water use reductionfor over 50 signatories.The latest annual FHC progress reporthighlights that between 2007 and2013, signatories collectively madea 15.6% reduction in their wateruse (excluding that in product). Thisreduction is equivalent to 6.1 million m 3water or 2,430 Olympic-size swimmingpools. Between 2012 and 2013 alone,MEMBER CASE STUDIESsignatories reported a 1.35 million m 3reduction in annual water use.Since 2007 water intensity has beenreduced by 22%. This equates to a waterreduction of 0.49 m 3 /tonne of productand is a notable achievement given thatproduction for these sites increased by8.2% over the same reporting period.As part of our wider Five-foldEnvironmental Ambition aims wecontinue to promote our Every LastDrop campaign to improve water useand management throughout the supplychain. The next stage is to develop newresources to assist companies withemployee engagement on water.WATER AMBITION:Achieve significant reductions in wateruse to help reduce stress on thenation’s water supplies and contributeto an industry-wide absolute target toreduce water use by 20% by 2020compared to 2007.WASTEPACKAGING WATERTRANSPORTSUSTAINABLESOURCINGMEMBER CASE STUDIESRESOURCES


INTRODUCTIONAND WIDER AIMSMEMBER CASE STUDIESFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSPepsiCo UK works on continued reduction in water and energy usageacross the business and since 2006 has reduced water consumption in itsmanufacturing operations by 33%.PepsiCo is a company that utilises acomprehensive, bespoke approach tosustainability across its global operations.In the UK, its approach is to harness localexpertise in resource efficiency. Every sitehas a sustainability manager responsiblefor energy, water and waste, and a keypart of their role is to identify and deliverimprovements that have a positive impacton the business, engaging employees atevery level.The adoption of the company’s ResourceConservation (ReCon) programme –(Click to view)READ FULL CASE STUDYenabling each site to monitor water,waste and energy usage and identifyopportunities to decrease environmentalimpact – combined with high levels ofinter-plant collaboration, has contributedsignificantly to a 7.1% compound annualreduction in specific water consumption inthe period 2010 to date.By focusing on the agriculture phase, thecompany has also made great progressagainst its stated commitment to halvethe amount of energy and water usedin growing its key crops over a five-yearperiod (the ’50 in 5’ programme).“We take our environmental and sustainability commitmentsseriously and we’re proud of the great strides we’ve madeacross the Five-fold Environmental Ambition priority areasin recent years. Innovation and collaboration is key to ourapproach – putting employees at the heart of our strategyand harnessing their expertise to find the best solutions andprojects we can.”Dave Clark,UK Sustainability Manager at PepsiCoWaste water recycling inSkelmersdale video.The energy, water, waste, resources and fuel-saving initiatives introduced byapetito have saved money and focused the business on innovation and leadershipin sustainability.At apetito’s main Trowbridge factory,resource efficiency and energy managementwork groups have made step by stepimprovements in water, waste, fuel andenergy efficiency.One project has involved replacing thewater ring main with a low volume highpressure system with hose triggers, creatingsignificant clean down water savings. Thecompany has also invested in water efficientkit and introduced simple water savingmeasures such as fitting hose trigger releaseguns that stop the flow when hose is not inuse.In 2013 apetito installed nearly 700 solarpanels on its main South-facing factoryroofs. These generate some 150kw ofpower and make a useful and predictableREAD FULL CASE STUDYcontribution to overall electricity costs. Thecompany has also halved factory food wasteand ensured the remainder is directed toanaerobic digestion to produce electricityand generate agricultural soil improver.“Sustainability is simply about being an efficient and innovativebusiness. The Five-fold Environmental Ambition has been thefoundation of our environmental programme giving us directionand performance milestones that have enabled us to strengthenour business and work alongside suppliers and customersprogress toward a sustainable future.”Paul Freeston,CEO, apetitoLitres water total use / 1000 units producedWater savings at apetito, 2007-2013CO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


TRANSPORTThe contribution of transport to the environmental impact of food production is frequently overestimatedand in most cases accounts for only a small percentage of total product footprint. But itdoes add directly to costs and gives rise to a range of indirect effects, including traffic congestion. It istherefore a very clear example of where improved efficiency makes good business sense for everyoneCO2EMISSIONSINTRODUCTIONAND WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSMembers have continued to reduce theimpact of their transport operations,whether undertaken by third partyhauliers or provided by their own fleetby including environmental standards intheir food transport practices.These improvements are based on theFDF 10-point checklist for GreenerFood Transport which remains thecornerstone of our transport commitment.Our ‘hard’ transport target is deliveredthrough members making a contributionto the Freight Transport Associationadministered Logistics Carbon ReductionScheme which aims to reduce the carbonintensity of freight operations by 8% by2015 compared to 2010.Results for the second year of thescheme showed that it delivered a 4.3%reduction in average kg of CO 2equivalentemissions per vehicle kilometre in 2012compared to 2010. Projecting thisreduction forward suggests that thescheme is on track to meet the targetearly. Since there is a two-year lag inreporting results from this scheme 2014results will not become available until2016.We are continuing to look for furtheropportunities to publicise the positivebenefits for FDF members involved in thescheme with a view to generating moresupport from food and drink companiesand/or their third party hauliers.TRANSPORT AMBITION:Embed environmental standards in ourmembers’ transport practices, includingcontracts with hauliers, as they fall forrenewal, to achieve fewer and friendlierfood transport miles and to make acontribution to the Freight TransportAssociation administered LogisticsCarbon Reduction Scheme target toreduce the carbon intensity of freightoperations by 8% by 2015 against a2010 baseline.WASTEPACKAGING WATER TRANSPORTSUSTAINABLESOURCINGMEMBER CASE STUDYRESOURCES


MEMBER CASE STUDYINTRODUCTIONAND WIDER AIMSOUR COREAMBITIONSPROGRESSHIGHLIGHTSYearsley Logistics and General Mills are working together to improvethe environmental impact of warehouse and transport logistics.Yearsley Logistics has been a keylogistics partner of General MillsUK for ten years, providing variouswarehouse services linked to thecompany’s production factories inBerwick-upon-Tweed, where it makesits market-leading Jus-Rol fresh andfrozen pastry, and Arras in France,where it makes its renowned Häagen-Dazs ice cream.In 2013, with a movement towardslegislation based on Defra guidelines,the General Mills logistics teamproposed including key performanceindicator (KPI) metrics for measuringwarehouse and transport carbonimpacts through directional reporting.This was adopted by YearsleyLogistics and has become their firstcustomer driven KPI relevant toenvironmental impact.The success in cutting emissionsis reviewed against measured KPIsthrough regular reviews and bothcompanies are benefiting from sharingincreased efficiencies by keepingcarbon emissions down.In addition, Yearsley Logisticscontinues to work closely with GeneralMills UK on supporting the recordingof load fill data in an effort to increasephysical volumes and keep road milesto a minimum.READ FULL CASE STUDY“As one of the world’s largest foodcompanies, it is vital that we take ourresponsibility as an environmentalcustodian seriously across all theterritories in which we operate. Smallchanges across big organisationslike ours can make a huge difference,and we are committed to constantlyreviewing and appraising our processesto ensure we are being as efficient aswe possibly can be.”Dave Howorth,Supply Chain Director at General Mills UK, Ireland & NordicGeneral Mills hasintroduced KPImetrics for measuringwarehouse and transportcarbon impactsCO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


SUSTAINABLE SOURCINGTo address risks in supply chains and meet rising consumer expectations of corporate responsibilityfood and drink manufacturers are increasingly looking to source their ingredients sustainablyINTRODUCTIONAND WIDER AIMSFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSCO2EMISSIONSThrough initiatives such as FDF’sFive-fold Environmental Ambition,the UK food and drink sector isalready taking action to reduce itsdirect environmental impacts inmanufacturing operations. But theglobal food system is coming underincreasing pressure from the impactsof climate change, population increase,a growing demand for limited resourcesand changing diets.These challenges will affect all aspectsof the way food is produced andconsumed, from the raw materials wesource, the energy, water and otherresources we use in manufacture, tothe distribution and storage of what weproduce and the choices consumersmake.In follow up to our SustainableSourcing: Five Steps TowardsManaging Supply Chain Risk guidance,FDF has developed a SustainablePalm Oil sourcing guide and has beenworking with WRAP in 2014 to developa Raw Material Risk Tool for food anddrink companies. When launched in2015, this tool will help companiesidentify, understand and address thepotential environmental, social andeconomic risks associated with theirsupply chains.In partnership with Zero WasteScotland we have also carried out workwith two Scottish members to developcase studies based on our SustainableSourcing guide to demonstratethe benefits that result in a moresustainable supply chain. This project isdue to report in early 2015.Building a secure and sustainablesupply chain not only makes goodbusiness sense but also has thepotential to bring with it a number ofbenefits for a company that is seen tobe acting in line with wider stakeholderand societal interests.View our SustainablePalm Oil sourcingguideWASTEPACKAGING WATERTRANSPORTSUSTAINABLESOURCINGMEMBER CASE STUDIESRESOURCES


INTRODUCTIONAND WIDER AIMSMEMBER CASE STUDIESFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSUnilever’s environmental impacts cut across its entire value chain – from thesourcing of raw materials all the way through to the energy and water neededby people who use its products.Unilever’s success depends on being ableto decouple growth from its environmentalimpact. By 2020 the company will source100% of its agricultural raw materialssustainably.More than two-thirds of its environmentalimpact results from consumer useand disposal of its products, therefore,consumer behaviour change is important.In 2014 Unilever launched the LiveBetter Challenge – an online hub to helpinspire individuals and families to changetheir behaviour and create a better andmore sustainable life through a series ofchallenges. This nationwide campaign isa significant expansion of the company’sSustainability Challenge and focuses onthemes including reducing food waste;lowering energy and water consumption;sustainable sourcing; and improving healthand wellbeing.The first part of the challenge addressedwaste, with the households aiming toreduce their food bills by 15% andhousehold waste going to landfill by 25%.Unilever asked participants not to throwaway any leftovers or edible food for aweek and as a result more than 10 tonnesof food waste was saved, meaning that5.7 tonnes of food didn’t end up in landfill.If every household in the country took thischallenge, 135,000 tonnes of food wastewould be saved every week.“The Live Better Challenge supports our company’sSustainable Living Plan, which sets out a series of timeboundcommitments to help Unilever increase its positivesocial and economic impact while reducing its environmentalfootprint. Unilever aims to lead the industry in the area ofsustainability and we are fully committed to achieving and,where possible, exceeding the Five-fold EnvironmentalAmbition targets.”Graeme Pitkethly,Executive Vice President & Chairman, Unilever UK & IrelandREAD FULL CASE STUDYUnilever’s Sustainable Living Plan setsout goals to reduce environmentalimpact and enhance livelihoodsMondelēz International has achieved 100% Roundtable for Sustainable Palm Oil(RSPO) coverage for its palm oil bought in 2013, two years ahead of target.Supporting sustainable farming practicesfor key raw materials, such as cocoa, coffeeand wheat is one of Mondelēz International’skey environmental initiatives. The companyachieved RSPO coverage for 100 percentof the palm oil it bought in 2013, two yearsahead of its commitment.In 2014 Mondelēz published an action planfor its approach to the palm oil supply chainto embed sustainability requirements rightthe way through the procurement processand commercial negotiations.At the heart of this work is its commitmentto giving priority to suppliers that meet thecompany’s principles of sustainable sourcing.The action plan requires that its suppliersachieve 100% traceability to the mill level bythe end of 2015 or lose their contracts, andthey also must publish sustainable sourcingpolicies that meet Mondelēz principles andimplementation timelines by the same date.In addition, Mondelēz is the largest purchaserof Fairtrade cocoa and its Cocoa Lifeprogramme aims to improve the livelihoodsand living conditions of more 200,000cocoa farmers and about onemillion people in cocoa farmingcommunities, through a $400million investment to 2020.“Protecting the wellbeing of our planet is a key part of our strategyat Mondelēz International. We are focussing on those areas wherewe can have the greatest impact. We are proud to be part of theFive-fold Environmental Ambition to help make an impact both inthe UK and around the world.”Phil Greenhaulgh,Managing Director, UK, Mondelēz InternationalREAD FULL CASE STUDYMondelēz InternationalCocoa Life videoCO2EMISSIONSWASTE PACKAGING WATER TRANSPORTSUSTAINABLESOURCINGRESOURCES


INTRODUCTIONAND WIDER AIMSRESOURCESABOUT FDFFOREWORDOUR COREAMBITIONSPROGRESSHIGHLIGHTSVIEW FULL CASE STUDIES: (click to view online)CO 2EMISSIONSWASTEPACKAGINGWATERTRANSPORTSUSTAINABLESOURCING- Kellogg’s- Nestlé- Premier Foods- KP Snacks- Coca-Cola Enterprises Ltd- Pepsico- apetito- General Mills- Mondelēz International- UnileverCLICK HERE TO LEARN MORE ABOUTFDF’S SUSTAINABILITY WORKThe Food and Drink Federation is the voice of the UK food anddrink industry, the largest manufacturing sector in the country. Oursector directly employs up to 400,000 people, and as many as 1.2million in ancillary services; it accounts for 16% of the UK’s totalmanufacturing sector by value; and it is an invaluable partner toBritish agriculture, buying two thirds of what farmers produce.Our membership comprises manufacturers of all sizes as well astrade associations dealing with specific sectors of the industry.In representing the interests of our members, we focus on thefollowing core priorities:• Food Safety and Science• Health and Wellbeing• Sustainability• CompetitivenessCO2EMISSIONSWASTE PACKAGING WATER TRANSPORT6 Catherine Street, London WC2B 5JJTel: 020 7420 7140Email: pressoffice@fdf.org.ukWeb: www.fdf.org.ukTwitter: @FoodanddrinkfedSUSTAINABLESOURCINGRESOURCES

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