Value Chain data to drive business performance

Tom Cumberlege

21/11/2017

The Carbon Trust drives efficiency today and innovation for tomorrow

• Mission driven organisation, independent and member owned - any surpluses are reinvested • To have impact we act as a catalyst, making the case for change to businesses, governments and civil society • Deep expertise – 180 engineers, scientists, policy experts, financiers and entrepreneurs

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Our clients

Retail & FMCG Healthcare & Pharma

Telecoms & Media Financial Services

Manufacturing

Industrials

Hospitality & Leisure Transport & Logistics Food & Drink

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The GHG Protocol’s Value Chain Standard is a starting point …

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Measurement is the first step in order to prioritise action

0% 20% 40% 60% 80% 100%

Home appliances

FMCG

Automotive

Electronics

Bread

Leather products / footwear

Plastics products

Dairy

Financial Services

Value Chain Emissions

Upstream Operational Downstream

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Value Chain data helps inform better decision making

Upstream / Supply Chain

Operations Downstream /

Customers

Supply Chain Configuration Which suppliers are at most risk from fluctuating energy prices or climate change impacts?

Product design How do decisions impact the supply chain or the customer use phase?

Business Growth What impact will different growth strategies

have for different regions?

Risk Assessment Modelling the risk of erosion of market

share to competitors with more environmentally sustainable alternatives

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Illustrating the benefits for different business areas

Product Development

/ R&D

Procurement and Supply

Chain

Value Chain data enables

better decisions

Operations

Corporate Supply chain collaboration

Supply chain innovation

Efficiency and engagement

Design better products

Target setting and reporting

(Science-based)

Sales and Marketing

Brand / Investor

Relations Product differentiation

Increased credibility / trust

Sustainability Leadership

• Wyke Farms, a cheese manufacturer based in Somerset, supplies all of the major UK supermarkets. The company has saved 22 million kg of CO2 since 2013 through a combination of energy generation, water recovery and reuse of waste.

• Energy saving initiatives include: • Solar panels installed on farm roofs • All equipment has low energy inverters installed • Deliveries are made with electric vehicles charged by renewable energy • Three digesters to break down organic waste into energy in their biogas plant

• Wyke Farms were the first British dairy farm to earn the Carbon Trust Triple

Standard across carbon emissions, water use and waste for demonstrating reductions year after year.

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Efficiency and Engagement Operations

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Carlsberg’s Value Chain

• Breweries - Energy Strategy

• 50% reduction in carbon emissions at our breweries by 2022

• 100% electricity from renewable sources at our breweries by 2022

• Science-based targets

By 2020 a 30% reduction in beer-in-hand carbon footprint

• Packaging - Supply Chain engagement

• Recyclate content and lightweighting

• Downstream reuse and recycling

• Agriculture

• Malt free brewing

• Innovations in agriculture

Case Study Target setting and reporting (Science-based)

Corporate

• Quorn has held Product Carbon Footprint Certification of its Mince and Pieces (frozen and chilled) products since 2012.

• Quorn wanted to promote diverse ranges of protein sources. The analysis conducted led to an understanding of both the impacts of meat and of Quorn.

• In Recertification Quorn has been able to show an average reduction of 9% in all certified products

• Quorn has reduced the carbon footprint of its core mycoprotein ingredient by 15 per cent.

• Quorn is using the Label in the Nordics, UK, Australia, New Zealand and South Africa to communicate commitment to further reductions

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Product Differentiation

Sales and Marketing

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› An Irish state-funded organisation

› Markets and promotes Irish produce worldwide

› Quality Assurance and food safety remit

Quality Assurance and Food Safety

data

Sustainability metrics and national herd databases

137,000 audits Carbon footprint reports

Measurement Simple Advice

Benchmarking performance to identify areas for improvement:

› Grazing season length

› Age @ first calving

› Calving interval

› Daily live weight gain

› Nitrogen fertiliser efficiency

› Manure management

Business Value

Financial benefit of moving to best practice

… could help boost your farms financial performance by €5,231 and decrease the greenhouse gas emissions by 4%.

Procurement and Supply

Chain Supply chain collaboration

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Significant savings opportunities across the beef and dairy sector

10 Day Increase in Grazing Season Reduces costs by €27 per cow. Cuts carbon footprint by 1.7%

Improving calving rate from 80% to 85% Lifts returns by around €45 per cow. Reduces carbon footprint by 4%

Farm Case Studies – Recognising Sustainable Beef Production

Significant savings opportunities across the beef and dairy sector

Procurement and Supply

Chain Supply chain collaboration

• Amcor is the world’s largest packaging company and the single largest supplier of flexible packaging to business around the world

• In an effort to measure, manage and reduce the impact that packaging has on the environment, Amcor have introduced an in-house lifecycle assessment tool, the “Advanced Sustainability Stewardship Evaluation Tool”

• This enables comparisons of alternative formulations for clients and allows the assessment of water consumption requirements of new products being developed by their research team. Amcor are therefore able to develop packaging solutions with a reduced environmental impact

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Product Development

/ R&D

Design better products

13 Source: Carbon Trust

Conclusion: value chain analysis helps to identify the risks and opportunities to inform better decision making

Whilst reasonable steps have been taken to ensure that the information contained within this publication is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warranty and make no representation as to its accuracy and accept no liability for any errors or omissions. All trademarks, service marks and logos in this publication, and copyright in it, are the property of the Carbon Trust (or its licensors). Nothing in this publication shall be construed as granting any licence or right to use or reproduce any of the trademarks, services marks, logos, copyright or any proprietary information in any way without the Carbon Trust’s prior written permission. The Carbon Trust enforces infringements of its intellectual property rights to the full extent permitted by law. The Carbon Trust is a company limited by guarantee and registered in England and Wales under company number 4190230 with its registered office at 4th Floor Dorset House, Stamford Street, London SE1 9NT. Published in the UK: 2017. © The Carbon Trust 2017. All rights reserved.