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Being bold

Being bold. Many food and drink companies have good individual environmental records FDF decided to be bold about making a real difference for the environment We decided to take a more structured approach towards tackling the challenges. Why change?.

Jimmy
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Being bold

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  1. Being bold • Many food and drink companies have good individual environmental records • FDF decided to be bold about making a real difference for the environment • We decided to take a more structured approach towards tackling the challenges

  2. Why change? • Expert opinion on the consequences of climate change • Support for the waste hierarchy • Expert opinion on water stress • Defra research showing that 87% of the external costs of food transport arise in the UK

  3. Collective commitment • FDF is focusing on areas where we can make the biggest difference • Last October we launched our Five-fold Environmental Ambition • No other food trade body had taken this collective approach

  4. Our five-fold ambition • The 1st part of our Five-fold Ambition is: • to achieve a 20% absolute reduction in CO2 emissions by 2010 compared to 1990 • to show leadership nationally and internationally by aspiring to a 30% reduction by 2020

  5. Our five-fold ambition • The 2nd part of our Five-fold Ambition is: • to seek to send zero food and packaging waste to landfill from 2015

  6. Our five-fold ambition • The 3rd part of our Five-fold Ambition is: • to make a significant contribution to WRAP’s work to achieve an absolute reduction in the level of packaging reaching households by 2010 compared to 2005 • to provide more advice to consumers on how best to recycle or otherwise recover used packaging

  7. Our five-fold ambition • The 4th part of our Five-fold Ambition is: • to embed environmental standards in our transport practices to achieve fewer and friendlier food transport miles • to contribute to the FISS target for the food chain to reduce its external impacts by 20% by 2012 compared to 2002

  8. Our five-fold ambition • The 5th part of our Five-fold Ambition is: • to achieve significant reductions in water use • to contribute to an industry-wide absolute target in the FISS to reduce water use by 20% by 2020 compared to 2007

  9. Delivering FDF’s ambition • In January 2008 we jointly launched the Federation House Commitment on water best practice with Envirowise, to achieve greater water efficiency • Yesterday we launched our Checklist and Clause for Greener Food Transportto achieve fewer and friendlier food transport miles

  10. Delivering FDF’s ambition • We are also making good progress with our CO2 reduction ambition • The extent and pace of change is influenced by a number of drivers such as: • the policy framework • price • corporate responsibility

  11. Understanding the climate change policy framework and its implications

  12. Understanding the policy framework • The policy framework works alongside other drivers such as price and customer and consumer expectations • Take gas prices for example – they have risen steeply in recent months and will drive fresh changes in business behaviour

  13. UK Wholesale Gas Prices 90 80 70 60 50 40 30 20 10 Pence Per Therm Wholesale gas Industry retail gas

  14. Understanding the policy framework • The policy framework itself is extremely complex • It operates at many levels, international, EU and member state

  15. Understanding the policy framework Defra SCP Research Energy White Paper Climate Change Levy EUETS/Transport Sustainable Consumption & Production CHP Cogen F Gas Regs Integrated Pollution Prevention & Control Market Transformation Programme Planning Post Kyoto EU Emissions Trading Scheme 2004 Transport White Paper End use Energy Efficiency Carbon Trust/ Energy Savings Trust CAP Reform Energy Using Products Climate Change Agreements Sustainable Farming and Food Strategy Carbon Reduction Commitment EEC/CERT Renewables Obligation Road Transport Fuels Obligation Landfill Diet & Health Climate Change Policy Ozone Depleting Substances Regs Action CO2 Hazardous waste Biofuels Enhanced Capital Allowances Renewable Heat Combined Heat & Power Strategy Renewables Food Industry Sustainability Strategy Kyoto Energy Performance of Buildings Directive Biomass Strategy Cabinet Office Food Strategy Climate Challenge EE Action Plan Climate Change Bill Animal By-products PAS2050 Farming and Food Link UK Climate Change Programme

  16. Understanding the policy framework • The policy framework can be distilled down into a few key drivers

  17. Understanding the policy framework

  18. Where the food and drink industry fits in

  19. Where does food and drink fit in? • The UK food chain is responsible for 17% of UK GHG emissions • Of the UK food chain, the food and drink manufacturing industry is responsible for 1.8% of UK GHG emissions

  20. Household 15% Food Shopping 3% UK Road Freight 6% Catering 5% Agriculture 49% Retail 8% Manufacturing 11% Where does food and drink fit in? UK Food Chain Greenhouse Gas Emissions (2004) Fertiliser/pesticide production 4% 17% UK GHG Emissions Source: Defra

  21. Making a difference through leadership

  22. Making a difference through leadership • Tate & Lyle’s new biomass boiler producing renewable energy at its Thames Cane Sugar Refinery from 2009, should deliver: -70% reduction in the site’s CO2 emissions -120,000 tonnes less CO2 emissions per year

  23. Making a difference through leadership • A key part of FDF’s Five-fold Ambition is: • to achieve a 20% absolute reduction in CO2 emissions by 2010 compared to 1990 • to show leadership nationally and internationally by aspiring to a 30% reduction by 2020

  24. Making a difference through leadership • McCain Foods’ 3 new wind turbines, producing renewable energy at its Whittlesey plant are delivering: -60% of the site’s annual electricity needs -20,000 tonnes less CO2 emissions per year

  25. Barriers to progress and long term success

  26. Barriers to progress & long term success • Gap • Market • Product demand/mix • Import/export • Demand Side • ‘CCA/EUETS’ Energy Efficiency • New/updated process equipment • New technology • Process design • Supply Side • CHP/Trigeneration • On site renewable electricity • Bio-energy/renewable heat • Carbon Intensity Grid Electricity • (Fuel mix, renewables, nuclear, CCS) -20% MS2 10.7 Food &Drink Sector CCAs BY 11.0 MS5 9.3 -60% EUETS Food & Drink Sector 4.3 3.9

  27. Barriers to progress & long term success • What are the barriers to the UK food and drink industry adjusting to a low carbon economy and the implications for its long term success?

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