Max Bishop

1
Our approach to tackling Climate Change

• Max Bishop
• Carbon and Climate Change Adviser
• 3rd March, 2009

2
Overview

• The Co-operative Group
• c. 9.4bn turnover
• c. 41bn assets
• c.85,000 staff
• The Co-operative Group businesses
• Food retail
• Pharmacy
• Travel agents
• Funeral agents
• Farming and land holding
• Financial services (Banking and Insurance)

3
Co-operative History

• Responsible approach to business since 1844
• Originally co-ops established to ensure quality,
  unadulterated food at affordable prices.
• Still guided by co-operative values and
  principles
• Self-help we help people to help themselves.
• Self-responsibility take responsibility for
  our actions.
• Democracy members have a say
• Equality one member one vote
• Equity business conducted in a fair and
  unbiased way.
• Solidarity we share interests and common
  purposes
• with our members and other co-operatives.

4
The Co-operative Bank 1998 quirky

• The Co-operative bank was the first on to this
  denying funding for fossil fuel extraction back
  in 1998
• Began reporting on Climate Change Impacts and
  purchasing Green Electricity
• At the time regarded as being somewhat quirky
• Now many mainstream businesses are aware of the
  issues and starting to take action

5
Things now a little bit more serious

• 2005 and 2006 saw the emergence of compelling
  evidence for
• Runaway melting of Arctic sea ice
• The shutdown of global ocean circulation systems
• Massive methane releases from permafrost
• More recent research suggests that previous
  climate models have massively underestimated CO2
  reductions required to prevent dangerous
  warming of the planet, and with that devastating
  positive feedback mechanisms
• Already seeing stronger hurricanes and
  mega-droughts from northern China to Australia

6
Co-operative Group Highlights 2008

• So what is the Co-operative Group doing about
  this
• 99 of electricity sourced from renewables
• 850GWh across more than 4,500 premises (cf
  electricity needs of Edinburgh/Sheffield)
• 25 energy reduction target by 2012, 15 from own
  renewable sources
• 20 HFC refrigerant reduction target
• UKs largest photovoltaics
• Coldham wind farm, others in the pipeline
• High quality carbon offset projects
• Carbon footprinting under way
• Choice editing of least efficient products has
  started
• Campaigning with Friends of the Earth
• Green Energy for Schools - 2m committed
• Engagement with members, staff and customers

7
Sustainability reporting

• Fundamental to taking action on climate change is
  knowing what our emissions are
• Allows tracking of current position and setting
  of future targets
• Key function of the Ethics and Sustainability
  team
• Award warning, totally transparent warts and
  all.

8
Direct greenhouse gas emissions 2003 - 2007
Energy Consumption 43,185t CO2e Refrigeration
123,413t CO2e Transport 129,053t CO2e
9
Energy Efficiency

• Target of 25 reduction in energy consumption by
  2012
• 40m committed for five year programme
• Food stores, distribution and head office 90
• How half hourly metering at over 2,000 sites,
  better housekeeping, building control systems,
  improvements to fridges including night blinds
  and controls, replacement of 10,000 inefficient
  fluorescent tubes
• Management cascaded through The Co-operative
  Food Chief Officer Regional Energy Managers
  Area Managers - Store

10
Support for renewable energy

• Virtually all energy supplying the Group from
  wind, hydro and biomass (savings of around
  293,000 tonnes CO2 each year
• Sourcing high quality renewables more and more
  difficult
• In 2005, the Group led the development of an 8
  turbine windfarm on Group farming land at
  Coldham, Cambridgeshire.
• 38.5GWh of electricity pa
• approx. 36,000 tonnes CO2 pa
• 14 turbine windfarm in Goole approved April 2008
• 28MW capacity
• Enough to power 16,000 homes pa
• Coldham extension approved May 2008.
• 15 of our electricity when all three are built
  in 2010.

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On-site renewables
CIS Solar Tower

• UKs largest-ever solar power installation
• 5.5m project
• 7,000 photovoltaic cell panels
• 181MWh of renewable electricity pa
• Saving 78 tonnes of CO2 emissions pa
• most cost-effective solution to repairing the
  deteriorating façade of the building, whilst
  respecting heritage concerns (the building is
  Grade II listed) and aligning withCFS
  sustainability requirements.

12
Community Owned Hydro 2008

• In early 2008, the Group agreed to purchase
  electricity via a private wire to its local Food
  store from a co-operatively owned small-hydro
  project in New Mills, Derbyshire.
• The Co-operative Bank will be the principal
  lender to this project
• and a grant of 45,000 was provided from The
  Co-operative Fund

13
Choice editing

• White goods and domestic lighting account for 56
  of all domestic electricity consumption in the UK
• In 2007, The Co-operative Food became first major
  food retailer to commit to only stocking white
  goods (eg, fridges, freezers and washing
  machines) which are energy rated A or above, or
  Energy Saving Recommended
• removal of 12 models
• projected to savings of 13GWh of electricity and
  5,500 tonnes of CO2 over the lifetime of products
• Also committed to phase out the sale of tungsten
  incandescent light bulbs by no later than 2010

14
Carbon Footprinting

• Involves looking at greenhouse gas emissions
  associated with the whole life cycle of a product
  (cradle to grave)
• central role in formulating an industry standard
  for the process of carbon footprinting (PAS 2050)
• Group has been key partner in the Carbon Trust's
  carbon footprinting pilot, looking at the
  footprint of two varieties of strawberry
• Spanish
• Scottish
• Found some very interesting results with
  footprint for Scottish coming out higher due to
  high carbon inputs during cultivation stage

15
Co-operative Bank Insurance Ethical Finance

• Customer-led policy, launched 1992
• Stipulates who the bank will and will not offer
  services to.
• 700 million in declines over 15 years
• 1/3 of customers choose The Co-operative Bank
  because of its ethical stance
• Areas arms trading, animal welfare, human
  rights, genetic modification, fossil fuel
  extraction
• Not just about negative screening also
  directs investment. (e.g. Renewable Energy and
  Asset Finance)

16
Carbon Offsetting

• Carbon Offsetting is a key element in our
  approach to tackling climate change
• Involves funding projects in the developing world
  which either absorb (e.g. through reforestation
  projects) or avoid (e.g. through energy
  efficiency projects) equivalent amounts of CO2
• Operations, products, services, customer offset

17
Carbon Offsetting
18
Carbon Offsetting
19
Campaigning Engaging our customers and Members

• CFS has recently published a report jointly with
  WWF, warning of the dangers of unconventional
  oils.
• E.g. oil sands and oil shales
• Very energy intensive to extract
• Very destructive to local environment
• Well to wheel life cycle 3 times more carbon
  intensive than conventional oils
• We intend to work with CFS 6.5 million
  customers to ensure that the UK and the EU have a
  robust legislative framework in place that will
  prevent these climate hostile fuels from entering
  the domestic market.
• Likely to include lobbying of MPs and MEPs
• Stakeholder engagement activity already starting
  to take place through CIS Ethical Engagement
  policy (using the report as a basis for this)

20
Engaging with the community

• 2million committed to project
• Phase 1 complete (100 schools) solar panels
• Phase 2 under way
• 60 more solar schools
• Piloting other technologies (wind, biomass,
  Ground Source Heat Pumps)
• Project outcomes
• Education and learning for next generation
• Giving back to the local communities
• Stimulating/supporting the microrenewables market

21
Recognition and Business Benefits

• Energy efficiency programme to save 13m / year
• Positive media coverage of 3m in 2007
• Brand reinforcement

22
Arguably, no business has done more on Climate
Change

• (July 06) Winner of Business in the Community
  Environmental Impact Award
• CFS Management of Climate Change
• (April 07 ) Queens Award for Sustainable
  Development
• Group only major business within retail or
  financial services
• (June 07) UK winner of Business Commitment to
  the Environment Award
• Groups Management of Climate Change
• (June 07) British Renewable Energy Awards
• Group named the pioneer user
• (June 07) Research commissioned by BBC Money
  Programme finds the Co-op to be Britains
  greenest retailer
• (July 2007) CFS Business Commitment to the
  Environment (BCE) Leadership Awards
• (May 2008) CFS Sunday Times Best Green
  Companies Award

23
Conclusions

• There is increasing awareness of climate change
  issues amongst the general public
• It is also key to our core values and principles
  and central to our brand
• Our members and customers demand that we take
  this approach
• There is increasing interest from other
  industries to occupy this space (which we
  welcome) and will push the boundaries to raise
  the bar and show leadership in this field if
  you do not take action you will be left behind.
• There are certainly financial incentives to take
  action in areas such as energy efficiencies but
  equally the deep cuts in greenhouse gas emissions
  that the planet needs will require tough
  decisions and substantial investment
• We will not shy away from these responsibilities

24
Thank you

• Max Bishop, Carbon and Climate Change Adviser