Tracking supermarket progress
towards a greener and fairer food system

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Co-op results - Environment

• Indicator 1.1
• Indicator 1.2
• Indicator 1.3
• Overall commentary and examples of good practice
• Supermarket comments

Indicator 1.1 View criteria

Issue: Corporate commitment to environmental responsibility and performance

Indicator: Board-level responsibility, training and reporting

Co-op obtained high scores in this Indicator, with only a small dip in points regarding staff training and environmental reporting. Both these areas have been recognized and improvements are being made in the near future. Within Co-operative Retail, the Head of Co-operative Brand & Technical has responsibilities for environmental management at Board level. Environmental issues and performance are reported within each monthly Board report. The Chief Operating Officer of the Co-operative group chairs the Environmental Steering Group, which meets on a quarterly basis, reporting progress to the Board.

Senior Management with environmental impact responsibilities receive training and development in the Co-operative Groups policies and practices and on the environmental management systems in place. There is no specific environmental awareness training for store-based personnel but this is due to take place in the near future using a range of communication media including induction and staff information posters.

The Social Accountability summary report covers all areas of Corporate Social Responsibility well. It would be good to see a combination of the Environment section from the report with additional information from the Environmental Management System Strategy and the Responsible Retailing leaflet. Hopefully these will be tied together in the new Social Accountability report planned for Spring 2004.

Indicator 1.2 View criteria

Issue: Climate change

Indicator: Energy use and emissions of carbon dioxide (CO₂)

Co-op reports that their overall management of environmental impacts was not well co-ordinated previously, but have since shown great commitment in this area, developing a model Environmental Management System. For this Indicator they did score well as they have rolled out objectives, targets and procedures for the reduction of in-store and transport emissions. It is not clear whether Co-op is using the DEFRA Environmental Reporting Guidelines for a company reporting on Greenhouse Gas emissions. Co-op is developing opportunities for back-hauling, which will reduce mileage, fuel and the number of vehicles on the road.

Indicator 1.3 View criteria

Issue: Waste

Indicator: Waste management and minimisation

Through their committed approach to waste minimisation in the future more points could be awarded to the Co-op for reducing waste sent to landfill. At present the cost of waste sent to landfill is quite high. The Co-op is currently trialling a small meat waste composting scheme and several stores and depots are involved with Crisis Fairshare resulting in 110 tonnes of fruit and vegetables reaching charitable causes. Co-op has set and achieved their waste targets for this year and have set manageable targets for the year ahead.

The Co-op was the first supermarket to introduce degradable carrier bags, with product packaging now adopting the same plastic. The Co-op has also a number of initiatives for the reduction of packaging and the use of recycled material. This includes taking waste paper from Co-op offices to produce 100% recycled toilet tissue and kitchen towels, which are sold through the stores, hence closing the loop. This scheme earned the Co-op a Green Apple Award. Organic fruit and vegetables utilise biodegradable packaging, but this is still only 5% of fresh food packaging.

Customers are encouraged to use reusable carrier bags rather than the disposable bags and a reward scheme for reuse through the loyalty card is currently under review.

Overall commentary and examples of good practice

Co-op performed very well and achieved high scores across all indicators.

Areas of good practice

• As noted above, the Co-op’s initiative to ‘close the loop’, recognised within the Environmental Best Practice category at the Green Apple Awards.
• Co-op launched Britain’s first biodegradable carrier bag in an effort to reduce landfill waste. Co-op still encourage customers to reuse carrier bags rather than the (biodegradable) disposable bags.

Areas for improvement

• We strongly recommend Co-op aim for absolute CO₂ emission reduction in accordance with Government targets and obligations. Emissions of greenhouse gases should be calculated using DEFRA guidelines and Co-op should sign up to MACC2 (making a corporate commitment) to set more ambitious targets to reduce CO_2.
• Reduce energy emissions through modifications to store lighting and through recovering waste heat from refrigerant systems. Replace older HCHC store refrigerant systems with new more efficient units (HFCs).
• Consideration should be given to push forward targets for reducing greenhouse gases and other emissions, through sourcing in-store and distribution centre energy from renewable sources. Other leading supermarkets purchase 10-25% of their electricity from renewable sources.
• Decrease current waste sent to landfill – and hence cost associated with it by employing waste minimisation techniques. Primarily reduce the amount of packaging used, secondly, increase the use of recycled materials in packaging and thirdly seek to utilise biodegradable packaging of all fruit and vegetables (not just organic).
• Develop a Co-op green travel plan, including car share schemes and walking and cycling initiatives to influence ways staff travel to work.
• Look into becoming a member of Transport 2000’s ‘Ground floor partnership’ – a National group of employers to promote best practice regarding travel plans and transport policy.
• Experiment with new technology in the form of alternative fuels (biodiesel, liquid petroleum gas, compressed natural gas) and new vehicle designs that minimise fuel use through aerodynamic changes and new tyres. Another leading supermarket anticipates running its entire distribution vehicles on chicken fat and waste cooking oils.
• Divert freight off the roads; consider using more environmentally friendly modes of transport: rail, coastal shipping and waterways where appropriate. Combined transport can provide very cost-effective and reliable alternatives to road-only options.
• Develop further opportunities for back-hauling, which will reduce mileage, fuel and the number of vehicles on the road.
• Consideration should be given to implementing environmental and full cost accounting as part of Co-op’s risk management and internal control, which can be published within the Annual Environmental report.
• Introduce Environmental awareness training for all Co-op staff, through the induction process

Supermarket comments

“Our environmental policy is having a significant impact on a range of business activities, and progress has been swift. Since this report, an increase in the amount of ‘green’ electricity has been introduced, achieving the goal set with 11% now from this source. At the same time, part of our distribution fleet has converted to compressed natural gas fuel, with the opening of two new fuel sites. Inevitably, with stores in locations as diverse as the Isles of Scilly and Shetland, distribution is a challenging area of environmental impact but efficient fleet management and route-planning alongside back-hauling and a regionally-focused supply chain help to manage this effectively. Our travel plan for head office staff contributes to the same aim. Targets have been set on reducing CO₂ emission and waste that will be supported by improvements in equipment and store design, and packaging use, with training programmes for store personnel helping to achieve our aims.”

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Posted: 26-Nov-2003