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?

• 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

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

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

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

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

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

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

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 Transport to achieve fewer and friendlier food transport miles

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

Understanding the climate change policy framework and its

implications

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

90

80

70

60

50

40

30

20

10

2003 2004 2005 2006 2007 2008

Pen

ce P

er T

hermUK Wholesale Gas Prices

Wholesale gasIndustry retail gas

• The policy framework itself is extremely complex

• It operates at many levels, international, EU and member state

Understanding the policy framework

Kyoto

Post Kyoto

Climate Change Policy

Renewables

Biofuels

EE Action Plan

UK Climate Change Programme

Climate Change Bill

Energy White Paper

EU Emissions Trading SchemeEnd use Energy Efficiency

Energy Performance of Buildings Directive

CHP Cogen

Energy Using Products

F Gas Regs

Ozone Depleting Substances Regs

Integrated Pollution Prevention & Control

Hazardous waste

Landfill

Animal By-productsClimate Challenge

Action CO2

EEC/CERT

Renewable Heat

Biomass Strategy

Combined Heat & Power Strategy

Renewables ObligationRoad Transport Fuels Obligation

EUETS/Transport

2004 Transport White Paper

Carbon Reduction CommitmentClimate Change Agreements

Climate Change Levy

Cabinet Office Food Strategy

Farming and Food Link

Food Industry Sustainability Strategy

Sustainable Farming and Food Strategy

Sustainable Consumption & Production

PAS2050

Market Transformation Programme

Enhanced Capital Allowances

Carbon Trust/ Energy Savings Trust

Defra SCP Research

Diet & Health

CAP Reform

Planning

Understanding the policy framework

• The policy framework can be distilled down into a few key drivers

Understanding the policy framework

1990 Baseline

  GHG Reduction Policy 2010 2020 2050

EU EU Climate Change   20% 2°C

  EU International Agreement   30%  

  Renewable Energy   20%  

  Renewable - Transport   10%  

  Energy Efficiency   20%  

  EUETS - from 2005   21%  

UK UK Climate Change Programme 20%    

  Climate Change Bill   26-32% 60-80%

  CCA (FDF) Relative Energy 15%    

  CCA - next phase -2017   CCC  

  Carbon Reduction Commitment   CCC  

FDF Members   20% 30%  

Understanding the policy framework

Where the food and drink industry fits in

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

17% UK GHG Emissions

Fertiliser/pesticide production 4%

UK Food Chain Greenhouse Gas Emissions (2004)

Source: Defra

Agriculture 49%

Manufacturing 11%

Retail 8%

Catering 5%

UK Road Freight 6%

Food Shopping 3%

Household 15%

Where does food and drink fit in?

Making a difference through leadership

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

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

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

Barriers to progress and long term success

Food and Drink Manufacturing CO2 Emissions

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

kT

e C

O2

BY 11.0 MS2 10.7

MS5 9.3

EUETS Food & DrinkSector

4.33.9

Food &DrinkSector CCAs

-20%

-60%

GapMarket•Product demand/mix•Import/exportDemand Side•‘CCA/EUETS’ Energy Efficiency•New/updated process equipment•New technology•Process designSupply Side•CHP/Trigeneration•On site renewable electricity•Bio-energy/renewable heatCarbon Intensity Grid Electricity(Fuel mix, renewables, nuclear, CCS)

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?

Barriers to progress & long term success