Nigel Davies Practical Sustainability Profiting from Sustainability Conference York Dec 2014

 Food

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1. Practical Sustainability Business Risk Management Nigel Davies Manufacturing & Sustainability Director 2. What is Sustainability? WATER FOOTPRINT ? ENERGY USE?…
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  • 1. Practical Sustainability Business Risk Management Nigel Davies Manufacturing & Sustainability Director
  • 2. What is Sustainability? WATER FOOTPRINT ? ENERGY USE? RECYCLING “Practical Sustainability ...... it’s no afterthought”
  • 3. So – what is Sustainability?
  • 4. Supply Chain Collaboration SAI Platform is the global initiative helping food and drink companies to achieve sustainable production and sourcing of agricultural raw materials
  • 5. Farm Sustainability Assessment
  • 6. Farm Sustainability Assessment This does NOT mean more forms to fill in !!
  • 7. CARBON MANAGEMENT - THE SAFEST BET
  • 8. CO2 levels of 546-568 parts per million would reduce nutrients in grains and legumes ZINC IRON PROTEIN WHEAT 9.3% 5.1% 6.3% RICE 3.3% 5.2% 7.8% FIELD PEAS 6.8% 4.1% 2.1% SOYBEANS 5.1% 4.1% 4.6% MAIZE / SORGHUM No significant reduction 1/3rd population already suffer from iron and zinc shortages, leading to some 63 million life years being lost annually 2bn people get at least 70% of their iron and zinc from grains and legumes. Myers et al: Nature (2014) doi:10.1038/nature13179
  • 9. Low Carbon Malt- Hitting the mark In house: • Energy action plan • £8M investment over 6 years in environmentally beneficial projects Externally: • Supply chain discussion • Farmer involvement • Knowledge Transfer • Field Trials
  • 10. Carbon Footprint: Scopes 1-3 Fuel 17% N2O from Soil 35% N fertiliser 48% Difference between models 6%
  • 11. Energy, Water, Waste: Bottom Line Benefits 1,450 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1,000 ENERGY USE PER TONNE WATER USAGE Energy used (kWh/to) CCA Target 2001-2 2002-3 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 kWh/Tonne Year 23% LESS WASTE & RECYCLING 12% LESS 1,400 1,200 1,000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 tonnes Year Landfill Recycled Total
  • 12. Energy Investment: Environmental benefits £4m project to install new silos 24,000 tonnes capacity SAVES: Farmers installing less efficient on-farm drying SAVES: 1700 vehicle movements a year: 130 tonnes CO2
  • 13. Muntons Carbon Footprint Total is interesting but drill down is of increasing importance Now express C footprint PRODUCT PROCESS SUPPLY CHAIN ELEMENT
  • 14. Muntons Carbon Footprint Reduced by 18% - How? GREEN ELECTRICITY GREEN ELECTRICITY 0.05014 kg CO2/kWh NORMAL ELECTRICITY 0.48357 kg CO2/kWh Electricity source % of supply Hydro 63.7 On shore wind 23.7 Off shore wind 5.1 Solar PV 3.8 Biomass municipal 3.5 Municipal waste 0.2
  • 15. Anaerobic Digestion Total project Cost: £5.5M Plant Life >25 yrs Reduced electricity cost: up to 25% at half price Income from Government Feed-in-Tariffs Off-site Tankering costs £732,000 ….. Sale of Bio-Fertiliser? £650,000 PAYBACK 4.6 years
  • 16. How Muntons are helping farmers save money and reduce the supply chain carbon footprint
  • 17. Influencing Farmers – changing perceptions 85% 15% Convinced Uncertain
  • 18. “Carbon calculators are so hard to use” “What’s a good value?”
  • 19. Which areas have the greatest impact? 300 290 280 270 260 250 YIELD +20% TRACTOR HOURS -20% 300 CAN – 20% LOW CARBON CAN 264 253 205 240 230 220 210 200 190 180 170 160 150 Base level 301kg CO2 eq/tonne CARBON FOOTPRINT OF MALTING BARLEY kg CO2eq
  • 20. Low Carbon Malt Commitment We are committed to producing 100% low carbon malt using low carbon options to make a significant impact on our supply chain carbon footprint. WE HAVE CALCULATED OUR CARBON FOOTPRINT
  • 21. To qualify for a low carbon contract growers must adhere to at least TWO of the following: .. becoming a ‘low carbon grower’ should not add cost to the production of malting barley … Use of abated nitrogen fertiliser Precision farming techniques that result in more efficient use of/reduction of inputs Use of Green compost to improve soil structure/reduce the inorganic fertiliser used Use of alternative fertilisers that comply with PAS100 (*No onions or other products know to taint grain are permitted *) Nitrogen fixing cover crops Adherence to Conservation Grade/LEAF protocols to improve biodiversity Compliance with the SAI Platform Protocol
  • 22. Compost REALLY works – Yorkshire Wolds trial +12% YIELD Better than Winter Barleys! “The Compost crops looked excellent right through from emergence to harvest” £200 per acre BENEFIT
  • 23. Reducing Carbon Footprint of Beer 8-20% reduction in carbon footprint of beer* 13% 13% 4% 1% 6% 25% 39% Malt Brewing Packaging Transport Electricity Cooling Other Research on the Carbon Footprint of Beer (Beverage Industry Environmental Roundtable, June 2012 http://www.bieroundtable.com/files/Beer%20Final%20DEP.pdf 50% reduction in MALT carbon footprint 21% 14% 48% 9% 3% 1% 4% BOTTLED CANNED * % depends whether canned or bottled and on grist recipe CARBON FOOTPRINT ANALYSIS
  • 24. Reducing Carbon Footprint of baking: VICTORIA SPONGE I’m baked using 25% less sugar I look great, taste great and take less time to bake! P.S.
  • 25. Reducing Carbon Footprint of baking: Cocoa-based muffins COCOA MALTICHOC
  • 26. The journey of a thousand miles begins with a single step Confucius
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