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The food and drink supply chain is an important part of the UK economy, but there’s no denying it has some significant environmental impacts.
For example, according to the Government's Food 2030 report, published in 2009, around 22% of UK greenhouse gas emissions are related to food production and consumption. We completely accept that a company as large as ours has a responsibility to do what it can to make a positive difference here. We want to be part of the answer, not part of the problem.
Using water to grow crops is a necessary part of the food supply industry but we are all too aware of the scarcity of this precious resource and the pressure this puts on the world’s ecosystems. We take water reduction in our supply chain very seriously and even though this is a complex issue involving many stakeholders we are actively working with our suppliers, particularly in our crop supply chains, to map our key water hotspots. Our long-term aim is that our products should have the lowest embedded water footprint possible.
Reducing the embedded carbon in products is another huge issue and, like with water, we are seeking better ways of working with suppliers. Our pioneering Dairy Development Group proves that reducing carbon can actually help suppliers become more profitable (see Sourcing with Integrity section) and we are rolling out the same approach with our other key raw materials supply chain both in our food and non-food business. For more information on our suppliers and the environment please visit our Sourcing with Integrity section.
We believe we are pushing the boundaries on packaging reduction and our target, a 33% reduction in packaging by 2015, is the most stretching in the retail sector. We have been introducing packaging innovations in our ranges for many years, but this year we've made some major improvements to our biggest-selling products. We are now selling our 'basics' tinned chopped tomatoes in Forest Stewardship Council tetrapak cartons rather than cans, reducing packaging by half a million kilos every year. This is the biggest selling non-fresh item in the store, which makes it the first time such a high-volume tinned product has ever been switched to cartons. This is the latest innovation in our 'basics' range and will reduce carbon emissions by 156 tonnes per year – not least because it will require fewer journeys to transport the same quantity of product.
This year alone we made a 4.4% saving in packaging weight towards our target, which is the equivalent of an estimated 8,000 tonnes. Significant packaging successes with our range that have contributed to this saving include:
We will have all supermarkets and depots connected to a zero waste to landfill programme for operational waste by the end of 2010
Our views on the issues that are important to our stakeholders.
Milk is one of our best-selling products, selling over 436 million litres a year. Our semi skimmed or ‘2% milk’ is particularly popular. Milk bags offer customers an alternative to plastic bottles and are a great way to reduce the plastic involved in packaging this essential product. Bags are now used by around 60% of consumers in Canada, the US and Australia. The UK has been slower to adopt them, but we led the way in rolling them out to all our stores. The two pint version uses 75% less packaging than the equivalent plastic bottle and if all our customers switched from bottles to bags it would save 1400 tonnes of packaging every year. The bags will also save customers money and will be easy to recycle at any of our stores. Since launching the milk-bags, sales have exceeded expectations and now account for over 10% of all our milk sales - which demonstrates that customers really like the lower packaged version.
Alongside the bags, we are now planning to use 10% recycled material in our plastic milk bottles. We will be the first big retailer to do this and it will save 900 tonnes of virgin packaging a year.
In December 2009, Sainsbury's Energy took its first steps towards creating a 'One Stop Shop' for customers' home energy requirements. We are working in partnerships with EDF Energy to pilot three Home Energy Centres in our Watchmoor Park, Kidderminster and Glen Road Stores where customers can buy a range of renewable products and services.
As a result, we are now the first UK retailer to sell solar PV systems, solar thermal and air-source heat pumps, as well as other services that help customers save money and energy, like energy contracts, DIY insulation, fitted insulation and home energy audits. Since the launch we have completed over 900 audits and 80 micro-generation surveys.
We have also launched a scheme called the Sainsbury’s Energy Savings Challenge, every customer that signs up to Sainsbury’s Energy will automatically join this scheme, and will receive regular information, tips and advice on how to save money on their energy bills and reduce their own carbon footprint.
