exciting times for business: the value of farm carbon footprinting up the supply chain - graham...
DESCRIPTION
This presentation formed part of the Farming Futures event 'Carbon & Farming - Putting Science into Practice'.29th July 2010TRANSCRIPT
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Why does your carbon footprint matter?
Graham Wilkinson
Arla Foods
4 August 2010
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Why does your carbon footprint matter?
Retailer
Processor
Consumer
Farm
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SUSTAINABILITY
Companies moving forward
Consumers following in their
footsteps
1 in 8 – companies should be
penalised for no action
79%“Companies should be penalised for
failing to care for the environment”
penalised for no action
84%“Manufacturers have either stepped up
their investment in sustainability or kept it
the same during the recession”
76%“Suppliers think that sustainability
will play a great role in their trading
relations”
Source:Future Foundation, 2009; IGD, 2010
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Shoppers were asked what they feel
they can positively influence
Source: IGD, 2009
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Carbon labelling is becoming more
prominent on packaging
CO2
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Carbon labelling & the consumer
27%Heard &
know what it
means
21%Not heard
When prompted –
understanding of carbon
labelling among
consumers is strong
52%Heard but
unsure what
it means
When it comes to the phrase ’carbon
labelling’ which of your following statements
comes closest to your view?
68% identified correct
definition, rising to 72% in
those concerned about
the environment
Source Pepsico/Populus
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Sustainable wood, LED lighting and a combined heat and power
plant powered with renewable fuel. � no net carbon footprint and
exports back any extra electricity generated to the national grid
Opens First Zero Carbon Supermarket
We'll be a zero carbon business by
£100m+ spend on green technology: Electric Car charging points,
CO2 refrigeration and combined heat and power plants that
generate green electricity
We'll be a zero carbon business by
2050 but only by working with our
suppliers and others across the
industry
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Retailer aims
Become a zero carbon business by 2050
Desire to become carbon neutral
Cut 30% absolute carbon by 2020 vs 2005 base
Cut Co2 emmisions by 25% by 2012 vs 2005/6 base
80% reduction by 2050 (34% by 2020)
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“Our objective is to develop our business on a foundation of long -term perspectives with respect for, and in harmony with, our surroundings.”
-Peder Tuborgh
“Arla's key principle is "Closer to Nature" and therefore Climate Change and reducing
carbon are fundamental to our business.”
- Peter Lauritzen
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Arla CUK: where are we now
Our carbon footprint
Farm
Logistics
3%
Packaging
4%
Operations
3%
Operations
Logistics
30%
Farm
90%
Operations
36%
Packaging
34%
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CUK Environmental strategy
• To achieve emissions targets which meet or exceed Climate Change and key Voluntary Agreements, while allowing Arla and our farmers to remain competitive.
• 34% reduction in CO2 emissions by 2020
• Renewable energy : 30% by 2020
• Water: 20% reduction by 2015
• Waste: Zero to landfill by 2012• Waste: Zero to landfill by 2012
• Meet Courtauld 2 targets: (10% carbon reduction by 2012)
• Meet Milk Roadmap Targets: 10% (2012) – 30% (2015) - 50% (2020) recycled plastic in fresh milk bottles
• To form strategic partnerships with Customers and Suppliers.• To work consistently, proactively and collaboratively enabling
Arla to meet and exceed strategic Customer Expectations.
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Arla CUK achievements to date
•• 2005 to 2009 (despite increased production volumes):2005 to 2009 (despite increased production volumes):
•• 9.6% overall CO2 reduction9.6% overall CO2 reduction
•• 14.3% reduction CO2 from our dairies14.3% reduction CO2 from our dairies
•• 13.6% CO2 reduction from our packaging13.6% CO2 reduction from our packaging•• 13.6% CO2 reduction from our packaging13.6% CO2 reduction from our packaging
•• 11% water savings11% water savings
•• 53% less waste to landfill 53% less waste to landfill -- Settle site (UHT & Butter) zero waste Settle site (UHT & Butter) zero waste
to landfill achievedto landfill achieved
•• Courtauld 2 signatoryCourtauld 2 signatory
•• Active involvement in many groups/initiatives:Active involvement in many groups/initiatives:
•• WRAP, Dairy UK, NISP, FTA Carbon ReductionWRAP, Dairy UK, NISP, FTA Carbon Reduction
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Legislation and media pressure
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’The agricultural sector is a substantial emitter of greenhouse
gases, but it has the potential to be a big part of the solution
to global warming as well’ – Climate and farming.org
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Current retailer/AFMP work on farm
• Tesco funding methane trials on TSDG farms:
’By changing the way we farm we can get quick reductions in the carbon footprint on your milk bottle’ – Dr Rob Smith
’I look forward to seeing how we can use the results with our dairy farmers and the wider dairy industry’ – Emma Jones
• Asda:• Asda:
• 60 carbon trust approved assessments on farm – ongoing work
• Health and culling monitor completed by supplying Asda farms
• On farm workshops covering welfare subjects – improved health =
generally improved carbon footprint
• Morrisons:
• Renewables report with University of Newcastle
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Financial benefits
Financial efficiency Bottom 25% Average Top 25%
Cost of production (ppl) 28.9 28.7 25.4
Carbon footprint (CO2g/litre) 1,275 1,039 834
Carbon footprint as a % of the
average
122 100 80
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AFMP environmental work
• Heat exchange units installed on several farms –
secured discounts through Fabdec and Mueller
• Renewable energy assessments completed on a
number of farms
• 2008 environmental survey completed - another • 2008 environmental survey completed - another
potentially in the pipeline
• Pilot project on vari-speed vacuum pumps
• Working with NFU on nutrient management planning
– Tried and Tested
• Promote case studies and best practice in publications
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Why does your carbon footprint matter?
ConsumerRetailerProcessorFarm
• The consumer wants it – they buy the product
• The retailer wants it – we need a home for our milk
• Processors need to prove competitive advantage to retailers
• It makes financial sense to the whole chain and we need to work
together (LCA)
• We need to be proactive – if we don’t take action we will be told
• We need to ensure we are in a position to defend our industry from
any negative critisism