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10 June 2010

M&S Reports On Progress In Year Three Of Plan A

Marks & Spencer (M&S) today reports a 20 per cent reduction in food packaging¹, a 19 per cent increase in energy efficiency in stores, 417 million fewer carrier bags used last year² and over £50 million of profit invested back in the business from Plan A activities in its annual ‘How We Do Business Report’.

The report details the progress of Plan A, M&S’ eco and ethical programme launched in 2007. Three years on and 62 of the original 100 commitments have been achieved, 30 are ‘on plan’ to be achieved by 2012 and seven are ‘behind plan’ as a result of unexpected challenges. One, the use of bio-diesel, is on-hold until sustainable supplies become available.

Other headline achievements include:

• 33 per cent less waste sent to landfill year-on-year;
• 40 per cent of electricity sourced from ‘green’ tariff renewable supplies;
• 18 per cent reduction in refrigeration emissions (compared to 06/07);
• 1.8 million garments recycled through the Oxfam Clothing Exchange;
• Packaging reduced by 36 per cent on general merchandise products1;
• 84 per cent of PET food plastic packaging made using recycled materials;
• 72 per cent of wood used is Forest Stewardship Council, recycled or from sources which otherwise protect forests and communities;
• Healthier food now makes up 38 per cent of food products ranges;
• 91 per cent of food products now meet FSA salt reduction targets;
• Over £13.2 million invested last year in community projects.
  
  

Sir Stuart Rose, Chairman of Marks & Spencer, said: “Plan A is making a real difference to the environment and for our customers, employees and people working in our supply chains. We’ve introduced products and services to help customers live more sustainably, increased our contribution to local communities and, this year, generated £50 million additional profit which has been invested back in the business.

“We’ve made excellent progress, but there’s no time to stand still. It is clear that evidence of environmental damage and social inequality has increased since we launched Plan A.

“That’s why we’re now pushing ahead with our new, bigger and bolder version of Plan A with 80 new commitments and the ultimate goal to become the world’s most sustainable retailer by 2015.”

Plan A was extended in March this year to incorporate 80 new commitments and extensions to the original commitments. Progress on the new and extended commitments will be reported on in the 2011 How We Do Business Report.

Plan A progress in more detail

Progress on tackling climate change …

Since the launch of Plan A, M&S has cut its carbon emissions by eight per cent and 20 per cent per sq ft of sales floor. This has been achieved by improving energy efficiency, reducing emissions from refrigeration systems and improving the efficiency of delivery fleets. In 2009 M&S was certified with the Carbon Trust Standard for measuring, managing and reducing its carbon footprint.

M&S Energy has now signed up over 300,000 customers since launch. Customers are rewarded for cutting their energy use and every unit of electricity used is matched with the same amount of clean electricity, generated from hydro dams and put back into the National Grid. Last year M&S Energy launched a home insulation service to help customers save energy and reduce their bills and all M&S employees were offered either loft or cavity wall insulation free of charge.

Progress on reducing waste …

In the past twelve months waste sent to landfill was down by 33 per cent and in February Birstall, a Simply Food store near Leeds, became the first ‘zero waste to landfill’ M&S store. Food waste has been reduced by 29 per cent and last year we collected 133 million clothes hangers and re-used 76 per cent of them with the remainder being recycled.

Non-glass packaging is down by 20 per cent (foods, average per item) and 36 per cent (non-foods, average per item). We are also using more recycled content in our packaging and encouraging more recycling amongst consumers by investing in local authorities to increase their kerbside recycling capabilities.

Progress on using sustainable raw materials …

In the past twelve months M&S has lead the market by becoming the first UK retailer to purchase GreenPalm certificates, which fund the development of sustainable palm oil, to cover its entire palm oil usage and launched eight products that use RSPO certified palm oil. These are amongst the first products in the UK to receive the certification.

Wood sourcing has been improved with 72 per cent (including 100 per cent of paper and board used in marketing materials) being FSC certified, recycled or in a category which otherwise protects forests and communities. 62 per cent of M&S wild fish is now either Marine Stewardship Council (MSC) certified or undergoing MSC assessment and M&S was the first UK company to sign the WWF Seafood Charter.

As part of its Cotton Sustainability Strategy, M&S signed a deal with WWF to help fund a programme for best practice for cotton production in Warrangal in India and, also in association with WWF, published a ‘Good Water Stewardship’ guide for agricultural suppliers on World Water Day in March.

Progress on being a fair partner …

Over £13.2 million was invested by M&S in community projects last year, the equivalent to 1.9 per cent of adjusted pre-tax profits. In addition customers and employees raised over £2.1 million for Breakthrough Breast Cancer, £2.8 million for local charities as part of the 125 year celebrations, £1/4 million for Leukaemia & Lymphoma Research’s Botham Walk and £1/4 million for the Poppy Appeal.

M&S helped suppliers set up 10 Ethical Model Factories last year which demonstrate how good employment practices can improve productivity and provided over 80,000 hours of supplier training.

Marks & Start – the work experience scheme for those who face barriers getting into the workplace – had another successful year with over 700 people taking part. Since launch, 40 per cent of participants have gone on to find jobs.

Progress on health …

Last year M&S expanded its health food ranges, which now make up 38 per cent of food products, with the launch of new products such as the Simply Fuller Longer range and selenium enriched spinach. No artificial colours and flavourings are used in M&S foods and 91 per cent of M&S food meets FSA salt reduction targets.

A healthy lifestyle website and a monthly health bulletin for customers was launched last year and employees are benefiting from an internal ‘Plan A way to health’ website and initiatives such as ‘Free Fruit Friday’.