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Hotspots, opportunities & initiatives Breakfast cereals Version 1 May 2013

Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

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Page 1: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Hotspots, opportunities & initiatives

Breakfast cereals

Version 1

May 2013

Page 2: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

The Product Sustainability Forum (PSF) is a collaboration of 80+ organisations made up of grocery and home improvement retailers and suppliers, academics, NGOs and UK Government representatives. It provides a platform for these organisations to understand, improve and communicate the environmental performance of the grocery and home improvement products. (www.wrap.org.uk/psf)

About the PSF

How to use this deck

Introduction Opportunities Hotspots Resources Help

1. Please view in „Slide Show‟ to activate hyperlinks. 2. To access the slide‟s content either browse one

page at a time or use the navigation bar below to jump between the main sections. Throughout the deck there are links to external sources of interest.

3. A „Help‟ section is provided with more background information on this product summary, FAQs, terms of use and a list of other product summaries and reduction opportunities available to download.

4. We would like to encourage feedback on the contents of this deck. Please click the „Submit feedback‟ links on each page to contribute.

Introduction About this slide deck …

Submit feedback

This slide deck summarises some of the key environmental hotspots relevant to this product category. It also provides examples of reduction opportunities to explore – and references key initiatives that could support your activities to improve product sustainability. This work has drawn upon a wide variety of evidence and is intended to be adapted for use by different business functions (e.g. procurement, R&D, etc.). It is important to note that, as every supply chain is different, the information provided should be used to guide further investigation.

Page 3: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Hotspots – Breakfast cereals

Notable primary & secondary hotspots

• The hotspots, left, can be used to target efforts – however actual performance will be dependent on the specifics of your supply chain.

• Numbers in brackets denote numbered reference in references slide.

• Evidence level: Medium - Variable category with some UK specific data available.

• Sustainability issues will be driven by key raw ingredients (e.g. rice, wheat, oats, dried fruit and sugar) which exhibit significant variation depending on cereal product.

• The addition of milk significantly increases the total life cycle water, carbon and energy footprints (1,8).

• Use phase can be a hotspot for products that require heating (e.g. oats).

Notes

Potential for some key ingredients to drive land use change e.g. palm oil, sugar, cocoa. May be subject to water scarcity (8).

Agricultural inputs and soil emissions for key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8).

Potential to make packaging out of responsible sourced wood (12).

Processing energy use can contribute up to 50% of life cycle GHG emissions (8).

Green water use in crop growing, and dairy farming where milk used at home (1,14).

About 75,000t (£210 million) of breakfast cereals are wasted in UK homes every year (13).

Reducing waste reduces resource consumption at all stages upstream

Milk typically associated with cereal use - high associated environmental impact.

Introduction Opportunities Hotspots Resources Help

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Page 4: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Initiatives & key resources

The initiatives and resources identified offer a range of potential business benefits, including: best practice guidance; knowledge sharing; innovation ideas; standards development; input or process certification; sustainability benchmarking; and communication.

Notes

1. ADAS – run the MIN-NO project to reduce N2O emissions and the Green Grain genetics project with the same aim 2. Alliance for Water Stewardship – uses a standard to recognise and reward responsible water users and managers 3. Forest Stewardship Council (FSC) – provides certification for sustainably sourced packaging 4. Green Food Project – wheat sub-group of this Defra project examined tensions between productivity and environmental gains 5. Greenhouse Gas Action Plan – advice, targets for reducing agricultural GHG emissions and improving business profitability 6. Sustainable Agriculture Initiative – global initiative, including development of principles & practices for sustainable arable farming 7. Courtauld Commitment – responsibility agreement aimed at improving resource efficiency in the grocery supply chain 8. Love Food Hate Waste – WRAP initiative to support consumer waste reduction by providing storage advice & recipes 9. Home Grown Cereals Association (HGCA) – cereals and oilseeds division of the AHDB

1,4,5,6 4,5,6 2,4,6 3,4,6

4,7

4 4

4,7,8 4 4

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Page 5: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Hotspot references

The documents below have been used to identify primary and secondary environmental impact hotspots

1. Chapagain, A. & Orr, S. (2010). Water Footprint Bitesize Shredded Wheat [PDF]

2. Gray, S. (2009). Down the Drain [PDF]

3. Kellogg‟s Corporate Responsibility Report, (2012). Energy use and greenhouse gas emissions

4. Marshall A & Howarth C & Cowan A & Langdon T & Valentine J & McDevitt J & Macleod M Clarke S & Bounds P (2010). The incorporation of important traits underlying sustainable development of the oat crop through combining “conventional” phenotypic selection with molecular marker technologies [PDF]

5. McDevitt, J. & Canals L. (2009). Life Cycle Assessment for the Ecodesign of UK porridge oat plant varieties

6. Roundtable on Sustainable Palm Oil (2013). RSPO

7. Small World Consulting, (2010). Booths Greenhouse Gas Footprint report [PDF]

8. Tesco (2011). Carbon Footprint of Cereals, Confidential

9. University of Warwick (2007). Direct energy use in agriculture [PDF]

10. University of Warwick (2012). Energy dependency and food chain security.

11. Van Berkel R, (2002). The Application of LCA for Improving the Eco-Efficiency of Supply Chains [PDF]

12. WRAP, (2009). Efficient use of resources in breakfast cereal packaging design [PDF]

13. WRAP (2009). Household Food and Drink Waste in the UK [PDF]

14. WRAP (2013). An initial assessment of the environmental impact of grocery products [PDF]

15. WRAP (n.d.). How to apply date labels to help prevent food waste [PDF]

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Page 6: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Reduction opportunities

Reduction opportunities

The PSF has researched „reduction opportunities‟, „action plans and topic guides‟ relevant to the grocery sector. Below are a selection relevant to breakfast cereal. Follow the links to find out more about each opportunity. For a full list of resources available see the Help section. While many of the opportunities are not tailored specifically to breakfast cereal – the principles and resources are transferable. Where they target a hotspot they are flagged red.

• Rolling out agricultural GHG tools • Sugar crop sustainability • Boiler energy efficiency in food & drink processing • Identifying the true cost of waste • Product re-formulation • Extending product shelf life • Improving consumer portioning • Reducing kitchen energy use

Hotspot

• Harmonising smart planning (manufacturers) and demand forecasting (retailers)

Action plans

Topic guides • How to identify high sustainability, reputation, supply

chain risk and resilience

Submit feedback

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Page 7: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Rolling out agricultural GHG tools Product sustainability opportunity

Research by the Product Sustainability Forum and others have highlighted agriculture as a significant contributor to the life cycle greenhouse gas emissions in many product categories. Whilst many mitigation options are possible, farmers and growers benefit from guidance on where to focus efforts. Farm „carbon calculators‟ can have a role to play in raising awareness and providing the ability to explore various mitigation options. There are a wide array of tools available – some commercial, some free and some developed for specific sectors, e.g. wine.

Other key resources & initiatives 1. Carbon footprinting for farm businesses – review by the Organic Research Centre into a number of calculators used in the UK 2. Cool Farm Tool – farm-level calculator; unlike many calculators, CFT incudes soil sequestration 3. CPLAN – web-based calculator and consultancy; whole farm or enterprise-level; focus on direct emissions 4. Carbon Accounting for Land Managers (CALM) – web-based calculator for farm businesses; also takes account of soil carbon 5. Low Carbon Farming Project – initiative from the Soil Association with a principally qualitative Farm Carbon Assessment Tool (FCAT)

Case study – Cool Farm Tool & Heinz

Heinz have been using Cool Farm Tool (CFT) to target their tomato procurement from 270,000 acres in California. Use of CFT estimated average on-farm emissions at 23kg CO2e per US short ton. The tool identified that increasing adoption of both reduced tillage and cover crops had the highest reduction potential – these measures were deemed feasible in the Californian context, and have been adopted.

Choosing the right carbon calculator

With the wide range of carbon calculator tools available, it is important to choose the tool that is fit for purpose. A carbon calculator tool needs to balance the need for accurate data with being user friendly, and this is reflected in significant variance across tools even when assessing the same farms. Farmers should: • Consider why the carbon balance is required (is it for

mitigation & management or education & awareness?) • Consider time and data availability – the benefits

reflect the effort made • Stay loyal to the selected tool – only then can long-

term emissions reductions be quantified

Hotspot

Page 8: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Sugar crop sustainability Product sustainability opportunity A substantial number of UK businesses rely on sugar, especially the production of the top five global producers: Brazil, India, China, Thailand & Pakistan (FAOSTAT). Of these, global sugar production is heavily dominated by Brazil. With the advent of biofuel from sugarcane, and its transition into a globalised export commodity like sugar itself, sustainable sugar cropping is set to become even more important.

Other key resources & initiatives

Case study – Rainforest Alliance

RA‟s sustainable sugar standard was launched in April 2009, encouraging farmers that harvest mechanically not to burn, or phase-out within a 3 year period, minimise their carbon footprint, and address worker welfare. El Salvador‟s Cooperativa ATAISI gained certification in 2010 for: planting new varieties of cane that drop their leaves naturally without need for burning, and creating a closed-energy cycle using sugar processing by-products to power its coffee mills.

1. A Sweeter Tomorrow for Sugarcane Farms – document detailing the RA‟s sustainable sugar standard in El Salvador & Guatemala 2. Sugarcane.org – Brazil-centric website developed by the Brazilian Sugarcane Industry Association (UNICA) 3. Towards sustainable sugar sourcing in Europe – Coca-Cola Europe water footprint sustainability assessment including case studies

Cane, beet or sweetener? UK manufacturers largely source from either: • Cane: cane supply chains are exposed to certain

environmental & welfare risks. Key issues are: labour risks, freshwater availability, local air quality when cane is burned, and land use change (LUC).

• Beet: UK beet sugar is largely W European in origin and well regulated. Key issues are: GHGs from growing and processing, soil compaction and high pesticide use, and welfare issues associated with subsidised beet undermining standards in cane production.

The current ratio in the UK of beet:sugar is roughly 50:50; comment tends to favour sustainably sourced cane over sugar. However, there are opportunities to use sugar alternatives like Stevia (an artificial sweetener), which can reduce costs and improve the nutritional profile of produce.

In the UK, British Sugar is providing an example of manufacturing best practice: at its Wissington plant, manufacturing by-products are used to grow tomatoes.

Hotspot

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Page 9: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Boiler energy efficiency in F&D Product sustainability opportunity

Boiler replacement

Flue gas/boiler blow down heat recovery

Monitor energy use, carry out boiler maintenance

Boilers play a central role in food and drink manufacturing, consuming up to half of total fuel in the sector (1). The key business driver for addressing boiler energy efficiency is the increasing cost of energy. Common approaches include: regular maintenance, looking at the potential for recovering waste heat, and boiler replacement (see hierarchy below).

Other key resources & initiatives

1. IGD - Energy efficiency measures website highlights boilers as key energy user in grocery sector, and suggests some basic solutions 2. Enhanced Capital Allowances – provide tax relief for energy efficient industrial purchases, improving cash flow 3. The Energy Technology List – a list of equipment that qualifies for ECAs, useful for aiding boiler selection 4. Steam and high temperature hot water boilers reductions guide from The Carbon Trust for staff involved in regular boiler operations

Case study – Heinz

The Heinz manufacturing site in Wigan has achieved impressive efficiency gains through targeting their boiler house operations. Heinz has increased its boiler house energy efficiency to ~90% by installing a heat exchanger, and developing regular steam trap maintenance. The benefits: • 9,000tCO2 reduction p.a. • Payback period of 18-19 months • Steam trap maintenance alone gives a

cost return of 10:1 and CO2 savings of 884t p.a.

Boiler energy savings hierarchy

(Adapted from Carbon Trust 2012)

Cost

Hotspot

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Page 10: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Identifying the true cost of waste Product sustainability opportunity

The cost of waste disposal is a small fraction, typically 5%, of the true cost of waste. The true cost should include cost of materials and value added during the production process, including: costs of labour; energy; water; equipment; warehouse; administration; and disposal. The example shown in the chart shows how value added to a cake at each stage of production increases the true cost of waste.

Other key resources & initiatives

1. Business Benefits of Resource Efficiency – WRAP report estimating the overall potential resource efficiency gains for UK business 2. Opportunities for Resource Efficiency in the Food and Drink Sector – WRAP report reviewing waste arisings at FDF member sites 3. WRAP, Confidential Waste Prevention Reviews, 2011-13 4. Efficient Consumer Response – working group co-ordinator, supporting developments in process efficiency 5. Lean Manufacturing and the Environment – USEPA research on advanced manufacturing systems and their environmental benefits 6. Waste Arising in the Supply of Food and Drink to Households in the UK – focusing on manufacture, distribution & retail 7. Benefits to Change in the Retail Supply Chain – provides links on improving supply chain resource efficiency

There are more than £800m worth of savings possible through improved waste in the food & drink sector (1). Estimates place the true cost of a tonne of waste at £550 (2) to £2,000 (3) per tonne. Calculation of the true cost helps prioritise opportunities, develop accurate cost-benefit analyses and implement waste prevention measures.

Benefits & barriers

Hotspot

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Page 11: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Product re-formulation Product sustainability opportunity Product reformulation, where a product‟s composition is altered or ingredients are substituted for alternatives, can be driven by a number of different factors e.g. ingredient price fluctuation or compliance to government legislation. Altering a product‟s composition can mitigate material risk associated with high environmental impact ingredients, or may impact how the product is used by the consumer which might lower the product‟s energy or water requirement (1). There are many other potential benefits, including: reduced raw material costs; lower distribution impacts; less required storage space; reduced packaging; as well as the potential to pass on costs savings to the consumer.

Other key resources & initiatives

1. See Unilever‟s Persil Small & Mighty 2. Courtauld Commitment Phase Two Case Studies – provides some examples of product re-formulations 3. Product Re-formulation: Channelling Efficiency savings – WRAP information sheet encouraging re-thinking of products

Case study - United Biscuits

United Biscuits (UB) reformulated their McVitie‟s biscuits, reducing the salt content by up to 60% and the saturated fat content by up to 80%. The reformulations enabled a 40% reduction in UB‟s use of palm oil and reduced pressure on rainforest destruction, but most importantly, a total of £4m was added to sales value, with sales of biscuits up by more than 5%.

Case study – Britvic concentrate

In March 2011, Britvic introduced a new double concentrate to its Robinsons squash brand. The double concentrate squash is now in 1.25 litre and 1.75 litre bottles. The smaller bottle sizes have enabled a significant reduction in secondary packaging, & transport required. The benefits are: • Better consumer value for money • 61% reduction PET per litre drunk • 70% reduction in total packaging • 50% reduction in lorries used • 14,000 tCO2 saving p.a.

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Page 12: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Extending product shelf life Product sustainability opportunity WRAP figures from 2011 (1) highlight the level of wastage of perishable products in retail and the household. Consumers are currently throwing away around £6.7 billion of food and drink each year due to it „not being used in time‟ (2). Increasing product life may help reduce this waste where the change could be made without compromising food safety or food quality criteria (3). Products and ingredients wasted in retail & distribution amounted to 0.4mt. Clearly, extending shelf life can improve the environmental performance of products.

Other key resources & initiatives 1. WRAP Handy Facts & Figures: UK Retail & Hospitality/Food Service – gives wastage figures for retail & hospitality sectors 2. WRAP Estimates for household food and drink waste in the UK 3. WRAP also encourages the correct application of date marks, and clear consumer communication 4. WRAP‟s Milk Model – simulating food waste in the home by modelling the impact of purchases and consumption 5. WRAP Product Life Feasibility Study – examined how manufacturers and retailers set product life 6. WRAP Courtauld Commitments Phase Two Case Studies November 2012 – WRAP report providing list of useful shelf life case studies

Case study – ASDA’s ‘Faster Fresh’

„Faster Fresh‟ is an initiative improving shelf life for ASDA (6). The company has increased the shelf life of 1,572 chilled products by an average of one day whilst maintaining their low price offer. This has been achieved by: • Working with 407 suppliers to reschedule

inbound flows • Improving delivery plans to cut down on

road miles • Developing new and simplified systems in-

store to get products to shelf faster and support better stock rotation

Latest research

Available shelf life impacts strongly on waste, as just one

day could reduce the amount of milk thrown away by up to

40% (4). The food industry has introduced many innovations

to increase product life, for example through packaging re-

design, processing technology or product formulation, and

WRAP wishes to encourage these innovative approaches. A

feasibility study into how product life is set within the retail

supply chain (5) found there is potential to deliver product life

benefits through providing more of a product’s maximum life

to consumers, by reducing the buffer between actual and

maximum life, and reducing the dwell time that products

experience in the supply chain.

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Page 13: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Improving consumer portioning Product sustainability opportunity Unit dose packaging is one of the ways that manufacturers can influence consumer behaviours by removing the need for the consumer to measure the product at use phase. If product measurement instructions are not followed closely this may lead to unnecessary environmental impact through avoidable product use. Additionally, excessive product use may be detrimental to the effectiveness of the product, for instance in the case of detergents (1), or may lead to food waste in the case of grocery products not being consumed after being prepared for meals.

Other key resources & initiatives

1. Unit Dose: A Sustainability Step for Fabric Liquids – Unilever report detailing the environmental benefits of liquid tablets 2. Revision of Ecolabel Criteria for Laundry Detergents 2008-2010 – background report for revision of ecolabel by Ecolabelling Denmark 3. Annual Review 2008 Towards Sustainable Cleaning – report by AISE, the soap, detergents & maintenance products industry body 4. WRAP food hub – provides a multitude of consumer food waste resources, including case studies, initiatives & reports

For detergent, only 65% of consumers dose according to the manufacturer recommendations, most over-dose (2). Portion control reduces overall material use, transport and product wastage. Dosing control can face consumer backlash and new products will need to work with marketing to develop an approach to ensure consumer engagement (1). R&D will need to be involved to develop workable products but may provide an opportunity for innovation and brand differentiation even overall if less product is being sold.

Benefits & barriers Case study – Ariel

Ariel have diversified their product portfolio to include unit dose control measures. Liquitabs require more packaging, however due to reduced product per wash and wastage they estimated it has resulted in a reduction of 250,000 tonnes of product per annum (1).

Case study – Heinz

Heinz have introduced a 1kg reclosable bottle for their Heinz Beanz range, which includes a see-through portion guide on the side to help consumer portioning.

Hotspot

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Page 14: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Reducing kitchen energy use Product sustainability opportunity Energy used for cooking and chilling foods is a major contributor to household and food supply chain energy consumption (1, 2) – particularly those products stored chilled or frozen, or those that require extended periods of cooking. Opportunities for businesses to influence consumer energy use include product eco-design and consumer communications.

Other key resources & initiatives

1. Energy Consumption in the UK – annual publication produced by DECC providing review of domestic energy consumption 2. Defra Food Statistics Pocketbook – highlights the importance of consumer energy use in food supply chain 3. Carlsson-Kanyama, A., Bostrom-Karlson, K. 2001. Energy Use for Cooking and other Stages in the Life Cycle of Food 4. Incorporated Principles in Action Summary – a review of Mars‟ main activities in 2011 5. McDevitt, J. E., and Mila i Canals, L. (2009) Life cycle assessment for the Ecodesign of UK porridge oat plant varieties.

Consumer education and product re-designs can help reduce the energy needed to cook foods – and also improve the consumer cooking experience (see right). One option is to recommend that the most efficient cooking modes are used (for example, to cook one portion of potatoes in the microwave requires 1.5MJ of energy, whereas a conventional oven would require 6MJ) (3). Chilling & freezing also have energy reduction opportunities, including amongst others: cooling food before putting it in the fridge/freezer; defrosting food in the fridge; optimal fridge/freezer room placement, etc.

Benefits and approaches Case study – Rice and oats

The part-cooking of Uncle Ben’s rice at processing stage reduces consumer cooking time by 10 minutes (50%). Because of the efficiency of large scale cooking, overall greenhouse emissions were reduced by 18% (4).

Researchers at Unilever have explored the potential for growing varieties of oats which require less cooking. By taking a full life cycle approach, environmental improvements are possible at consumer stages through changes in product design through variety selection (5).

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Page 15: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Smart planning and demand forecasting Action Plan

Resources

1. WRAP – Reducing Food Waste through Retail Supply Chain Collaboration 2. WRAP – Waste arisings in the supply of food and drink to households in the UK 3. WRAP – New estimates for household food and drink waste in the UK

Implementation Process

Opportunities to reduce wastage from:

a) increased visibility of wastage quantities generated by manufacturer and retailer b) smarter stock control systems c) smarter stock allocations d) better communication between manufacturers and retailers e) joint responsibility for waste generated and f) flexible commercial arrangements

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Action Plan

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Manufacturer

Quantify

waste

Review ordering

and inventory

management

systems

Engage retailer

on opportunities Individual

reviews between

retailer and key

suppliers

Trial of selected

opportunities

and cost /

benefits

delivered

Implementation

and monitoring

Retailer

Engage

manufacturer(s)

on opportunities

Implementation

and monitoring

• Waste in the supply chain is estimated to cost food retailers and manufacturers £5bn annually. • Sales forecasting of food products is affected by a number of factors like weather patterns, promotions and

competitive activities, which poses a challenge for retailers and manufacturing when planning production runs. • There is potential to save up to 1% of turnover by reducing packaged food waste and from less discounting. • This Action Plan is designed to help procurement teams of retailers and manufacturers to reduce waste from poor

forecasting and planning.

[Details of each step of the implementation process are in the Action Plan]

Hotspot

Page 16: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Identifying high supply chain risks Topic Guide The grocery sector is fast moving, and involves thousands of product lines that combine ingredients with a wide spectrum risk profiles. Managing data at this level of volume and complexity without getting bogged down in detail requires a systematic approach, using proportionate levels of information. Your aim is to have just enough information to make effective decisions about where and how to address risks to resilience.

Resources

1. Resource Futures – Chatham House Report on the new global political economy and critical interventions that may be needed 2. Sustainable Sourcing Guidelines – Food and Drink Federation guide for managing supply chain risk 3. WWF 2050 Criteria – WWF guidance on responsible investment in agricultural, forest and seafood commodities

Implementation Process

This Topic Guide focuses on how to make an analysis of risk, which can be fed into a resilience plan. Identifying risk should be assessed against two main areas:

1) Strategic exposure

2) Vulnerability

A. Supply chain risk

B. Resource intensity

C. Integrity

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Topic Guide

(1) Risk

Screening

All raw materials

Analysis of

objectives:

What matters to

your business?

Strategic

exposure

Generic

policies

(2) Detailed

Diagnostics

Carried out on a sub-

set of high risk / high

priority raw materials

Product-

specific

specifications

and initiatives

Vulnerabilities

Preparation of

information:

What is it, what is

it made of, and

where does it

come from?

1. Alignment 2. Risk analysis 3. Implementation

Page 17: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Help section

This section contains background information on the contents of this slide deck, including:

1.Frequently Asked Questions (FAQs)

2.Terms of use/Disclaimer

3.Product summary list – 50 product summaries are available covering food, drink, household and personal care categories

4.Reduction opportunities – a list of all those developed to date

5.Action plans & topic guides – a list of all those developed to date

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Page 18: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

FAQs

1.What is the Product Sustainability Forum (PSF)? The Product Sustainability Forum is a collaboration of 80+ organisations made up of grocery and home improvement retailers and suppliers, academics, NGOs and UK Government representatives. It provides a platform for these organisations to understand, improve and communicate the environmental performance of the grocery and home improvement products. Website: www.wrap.org.uk/psf

2.What are the five PSF ‘metrics’? To date, the PSF has focused on the performance of products across five core environmental „metrics‟: energy use, water use, waste generation, material use and greenhouse gas emissions. A more detailed discussion of the work done on these five metrics is available in a published PSF report entitled “An initial assessment of the environmental impact of grocery products”. The PSF is also beginning to look at the biodiversity impact of products.

3.What do the red and orange shading denote on hotspot matrices? Red cells highlight stages within the value chain which are often the primary source of impact for the metric in question (e.g. greenhouse gas emissions, energy use, etc.). Orange cells are typically secondary sources of impact. These are qualitative assessments to highlight likely hotspots and should be used to focus further investigation.

4.How are ‘Primary’ and ‘Secondary’ hotspots identified? Primary and secondary hotspots have been identified using a range of sources – but mainly publicly available life cycle and sector-level research into resource use and environmental impacts. These are fully referenced within the deck. Primary hotspots are those which, according to the evidence identified, are likely to contribute the most to the metric in question (e.g. agricultural stages dominate the carbon footprint of dairy products). However, due to the varied and patchy nature of the evidence, some summaries are more complete than others – and in many cases, hotspots have been estimated based on proxies. To guide users a qualitative „evidence level‟ score has been developed to highlight any significant data gaps. As every supply chain is different, this information should be used to guide further research into your own supply chain.

5.Which other product summaries are available and where can I get them from? A summary of products researched to date is available at the end of this deck.

6.How can I submit ideas/comments for future revisions of this PowerPoint deck? Click on the „Submit feedback‟ link at the top right hand side of each slide to send feedback to the PSF team.

7.How can I use this content? See our „Terms of Use‟ slide.

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Terms of use

While we have tried to make sure this slide deck is accurate, we cannot accept responsibility or be held legally responsible for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. You can copy it free of charge as long as the material is accurate and not used in a misleading context. You must identify the source of the material and acknowledge our copyright. You must not use material to endorse or suggest we have endorsed a commercial product or service. For more details please see our terms and conditions on our website at www.wrap.org.uk.

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Page 20: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Product summary list

Bananas Bath & shower products Beef Biscuits Bread & rolls Breakfast cereals

Butter

Cakes, pastries, etc.

Canned meat

Coffee

Canned vegetables Carbonates Cat & dog food

Cheese Chocolate Cider & perry Deli-food Deodorant

Nappies

Dishwashing products

Fish & seafood

Frozen vegetables

General cleaning products

Ice-cream & frozen desserts

Lamb Margarine

Pork Potato crisps Potatoes Poultry Pre-packed sandwiches Ready meals

Rice Spirits

Sugar confectionery Tea

Toilet & kitchen rolls Tomatoes

Processed snacks

Yogurts

Dilutables

Beer

Laundry detergent

Eggs

Wine

Juices

Onions Pizza

Canned seafood

Milk & cream

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Page 21: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Reduction opportunity list

• Addressing „green water‟

• Benefits of soil management

• Crop irrigation best practice

• Precision agriculture

• Rolling out agricultural GHG tools

• Sourcing palm oil responsibly

• Sugar crop sustainability

• Sustainable fisheries & aquaculture

• Sustainable forestry products

• Water efficiency in livestock farming

• Closed-loop recycling

• Drinks packaging optimisation

• Renewable packaging materials

• Boiler energy efficiency in F&D

• CIP for resource efficiency

• Identifying the true cost of waste

• Increased efficiency of in-store bakeries

• Increasing motor drive efficiency

• Product re-formulation

• Water efficiency in drinks manufacture

• Water efficiency in meat processing

• Water re-use in F&D processing

• Extending product shelf life

• Food redistribution

• Shared logistics opportunities

• Improving consumer portioning

• Reducing kitchen energy use

• Reducing consumer food waste

• Water efficiency in the home

• Capital allowance for green tech

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Page 22: Hotspots, opportunities & initiatives Breakfast cereals cereals v1.pdf · key cereal crops e.g. rice, wheat account for 30-85% of GHG emissions (8). Potential to make packaging out

Action plan & topic guide list

Action plans

• Harmonising smart planning (manufacturers) and demand forecasting (retailers)

• How to participate in the closed loop economy through waste exchange

• How to use digestate as a fertiliser substitute

• Refrigeration best practice in food and drink chill chains

• Securing crop supply through whole crop purchasing

Topic guides

• Demystifying and de-risking land use change

• Implementing a sustainable procurement process for raw materials

• Lowering the impact of pig feed soya

• Effective commissioning of LCAs/footprint studies

• Engaging colleagues on sustainability

• Engaging suppliers on sustainability

• Best practice in embedding sustainability in product design

• How to identify high sustainability, reputation, supply chain risk and resilience

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