M&S 500+ UK stores +

100 global franchises 60,000 staff 30,000 product lines

– 1000s raw materials

1000+ suppliers – 100,000s workers

3m customers per week

Shareholders Stakeholders from

animal rights groups to the WI

People worry more, trust less, know more, are

confronted more, expect more...

BUT, consumers won’t compromise……BUT, consumers won’t compromise……

Trust

Innovation

Value

Service

Quality

and the evidence that change is needed is now indisputable……

M&S well positioned to take advantage of these trends….

• 100% own brand = 100% control

• Competing on value not lowest price

• It’s a part of our brand – Trust, Innovation

• Good supply partners with similar values

• Customers want to know more

So what did we do?

Know your impacts

Talk to stakeholders

                                    

Talk to customers

25

50

22

2

1

Extremelyimportant

Very

Quite

Not very

Not at allimportant

How important do you think it is that M&S is committed to meeting their social, ethical and environmental responsibilities?

%

Extremely Important

Regular

food

shopper

Occasion

al food

shopper

Non

food

shopper

32 20 21

Regular

clothes

shopper

Occasion

al

clothes

shopper

Non

clothes

shopper

32 37 27

Just a few years later…

What? – 100 point, 5 year, £200m strategic plan

CLIMATE

WASTE

SUSTAINABLE RAW MATERIALS

FAIR PARTNER

HEALTH

How? Brainstorm –> Launch 6 months

3 sustainable development managers

60 people in ‘A team’

‘How we do Business’ Committee – chaired by

CEO

Strategy team, delivery team and

communication team

Steering groups for each ‘pillar’

Climate Change

Over the next five years we will:– become carbon neutral for our own operations

– Reduce energy use by 25%

– maximise the use of renewables (all stores/DCs/ Offices on green energy, lorries on 50% bio-diesel)

– only use offsetting as a last resort (logistics and business air travel)

– address food miles (targets to reduce air freight, ‘flown label’, UK/regional sourcing)

– help our suppliers and customers to reduce their emissions

7. Green electricity175Gwh of ‘renewable’ electricity already sourced, saving 55,000t of CO2

Key100% renewable

85% good quality CHP

100% fossil fuel

8. Anaerobic digestion

AD Farmer’s day engaging 20 M&S Farmers and suppliers

9. Green stores

Bournemouth, Pollock, Galasheils

All effective measures now integrated into ‘M&S Sustainable Construction Manual’

13. Green transport

Trial of ‘Tear-drop’ trailer, improving fuel consumption by 20% and +10% load space.

22. Green factories

Contract signed with MAS Holdings, Sri Lanka, Westbridge UK, and more to come in other countries….

27. Footprint campaign

WWF ‘One Planet Living’ carbon calculator co-developed

Waste

Over the next five years we will:– send no waste to landfill from our operations;– reduce our use of packaging by 25%, – ensure all packaging materials can be

recycled/composted– maximise the use of sustainable packaging

raw materials– put clear recycling logos on every piece of

packaging– reduce our use of carrier bags by 33% – trial closed loop recycling in our cafes– provide our customers with alternatives to

throwing clothes away when they’ve finished with them

34. Construction Waste

75% construction waste from store developments sent for recycling. On site in approx. 60 stores

38. Packaging (sustainable raw materials)

Recycled denim packing box trial.

40. Packaging (WRAP logos)

WRAP symbols on all food products by end year

45. Carrier Bags (reduction)

“Do you need a bag?” Campaign launched

Raw MaterialsOver the next five years we will:

– Wood – all FSC or recycled– Fish – all MSC or equivalent– Polyester – made from recycled plastic– Organic – triple food sales, introduce cotton, wool – Farming – farmers meet independent standards– Water – reduce use in stores and supply chains– Free range – all fresh turkey, pork and duck – Non-food animal welfare – known

source/standard– Stores – more sustainable construction materials

49. Organic food

Launched first ever range of Organic, nut free Easter Eggs, March ‘07.

54. Sustainable textilesFirst major retailer to sell a range of Organic Linen, launched April ’07.

50,000 shirts bought.

8,000 pieces of organic linen.

57. Wood

90% of the Spring ’07 Garden Furniture range made from FSC certified wood.

60. Polyester

400,000 garments sold in Autumn ’07 across Womens and Menswear….

…From 4.5m recycled bottles!

63. Free range

Fresh Geese, Turkey and Duck converted to 100% Free Range by end 07

Health

Over the next five year we will:– Offer the healthiest products – salt reduction

etc– Offer easy to use information – Eat well, Traffic

Lights– Engage our customers and employees – health

coaches, website, cause related marketing etc

89. Eat Well

£1.3BN sales ’06/07, +14% on LY.

30% of food sales.

1,300 products.

90. Labelling

Launched in Jan ’07, rolling out across all FSA categories.

97. Healthy eating assistants

1,500 assistants trained between January and May ’07.

Fair Partner

Over the next 5 years we will:– Launch a Supplier ‘Exchange’ to support

change in our supply chain– Be a leader at managing labour standards– Extend buying pledges for UK farmers– Sell more Fairtrade products (cotton, sugar,

jam, produce)– Support communities in the UK and overseas

Leader on labour standards

More in-country

resources

Networks of support

for suppliers

Unannounced audits

Worker helpline

Responsible buying

82. Supplier Exchange

M&S Supplier Exchange launched. Information provider. Sharing best practice.

570 Store and Head Office ‘Plan A Champions’ appointed.

85. Plan A Champions

Taking Fairtrade into the mainstream…

80. Fairtrade food

Conversion to 100% Fairtrade sugar in Jams and Conserves.

81. Fairtrade Clothing

20 million Fairtrade garments over 12 months

£100m RSV.

10% of the M&S cotton business.

Lessons from Plan A – year 1

Know your customer

10% green crusaders ----> Plan A as whole

30% if its easy -----> M&S brand short hand for doing

their bit, Oxfam, hangers, bags

35% what’s the point? -----> Demonstrate part of

whole e.g. carbon calculator

25% not my problem ------> Diminishing group, driven

by poverty, some issues

resonate e.g. animal welfare

Summary Great rally cry – strategy galvanises

enthusiasm/ideas/effort

Scope – across the business, not cherry picking

Integration – not big CSR team, part of everyone’s

job and objectives

Innovation – must be seen to drive business forward,

new products (cotton, fleece), new services (home)

Partnership – Oxfam, WWF, Groundwork, WRAP,

Carbon Trust, Supplier Exchange