Packaging reduction the ASDA way

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Addressing the issues we all care about at home and around the world.

Working with our partners to create a naturally affordable choice.

Improving the way we work to reduce our global impacts.

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What does Sustainability mean to Asda in 2008 ?

Project Workstream Deliverables

Energy

Sustainable Stores

New stores consume 30% less energy by end 2009 over 2005 base levels

Existing stores consume 20% less energy by end 2012 over 2005 base levels

Sustainable Distribution

Fleet transport reduces CO2 emissions by 40% by end 2009 over 2005 base levels

Waste

Materials Management - Carrier Bags

Reduce carrier bags environmental impact by 25% by end 2008

Materials Management – Store Waste

Send zero store waste to landfill by end 2010

Products & Packaging

Reduce Packaging Reduce food packaging by weight by 25% by end 2008

Food

100% sustainable fish by end 2010

All Asda brand products contain sustainable palm oil by end 2008

GM End sale of filament light bulbs by end 2010

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Zero Waste to Landfill & Recycling

• Already hit Courtauld Commitment for

packaging 7 months early

• Created 6 regional recycling centres –

Falkirk for Scotland

• Recycle from back of stores

• Delivered absolute packaging

reductions

• Packaging composition and end of life

reclamation is linked

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Tangible Results

65% of our waste is recycled, reused or composted

157,000 tonnes of cardboard

9,000 tonnes of plastic

£5.3m p/a saved in landfill tax from recycling of cardboard and plastic

£12.3millions p/a saved in energy consumption

£6.1millions saved in transport

Recycled from the back of our stores

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So what are we doing about packaging?

By the end of this year we will use 25% less packaging around our food

1,000s of packs being light-weighted, right-sized or down-gauged

Re-setting “Best In Class” standards – SVN Network

Favour use of Forestry Stewardship Council (FSC) paper and board

Favour use of Post-Consumer Waste (PCW) Recycled content

ASDA chairs Cross Industry Packaging Waste Group – supported by government, retailers, manufacturers and waste industry

WE HAVE ALREADY DELIVERED ON THE COURTAULD 10% REDUCTION

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Our Strategy

Our strategy

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The value of packaging

CONVENIENCE SELLS THEPRODUCT

PROVIDESINFORMATION

IMPROVESSHELF-LIFE

CHOICEPORTION CONTROL

REDUCES WASTE SECURITY INNOVATION

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25%

25% 2010

Focusing on Bio-degradable

LeadingEnd 2008

Not Reducing Glass

15% 2012 Behind the pack

20095%

25% 2010 Nearest Rival but one year behind

Retail Targets

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REMOVE

REDUCE

RECYCLE

RENEWABLE

REVENUE

Asda Packaging Strategy: The 5 Rs

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REMOVE

REDUCE

RECYCLE

RENEWABLE

REVENUE

Asda Packaging Strategy: The 5 Rs

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REMOVE

REDUCE DowngaugingLightweightingRightsizing

RECYCLE

RENEWABLE

REVENUE

Asda Packaging Strategy: The 5 R’s

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REMOVE

REDUCE

RECYCLE Recycled ContentRecyclable

RENEWABLE

REVENUE

Asda Packaging Strategy: The 5 R’s

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REMOVE

REDUCE

RECYCLE

RENEWABLENo CompostablesNo BiodegradablesNo PLA

REVENUE

Asda Packaging Strategy: The 5 R’s

X

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Asda Packaging Strategy: The 5 R’s

REMOVE

REDUCE

RECYCLE

RENEWABLE

REVENUEMaking sustainability affordableLess is More £

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Simple changes make a big difference: Ready Meals

Carboard Sleeves reduced32% Less PackagingMore than 2300t of card saved

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Simple changes make a big difference: Olive Oil

Change from Glass to Plastic32% Less PackagingMore than 988t of glass saved20% Better Carbon Footprint

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Simple changes make a big difference: Wine, Coffee & Spices

Lightweight Glass5%-20% Less PackagingOver 6000t of glass savedLead Retailer in WRAP Glassrite project

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Simple changes make a big difference: Cut Herbs

Simple bag, was in a tray66% Less PackagingOver 56t of Plastic savedModified Atmosphere Packaging (MAP) extends shelf-life and minimises food waste

NEW

OLD

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Simple changes make a big difference: George Cosmetics

Carton removal10% Less PackagingOver 104t of Card saved

NEW

OLD

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Simple changes make a big difference: Courgettes

Plastic Tray & Film Removed75% Less Packaging

OLD

NEW

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The Big Wins!

Eggs 7% Less

Mince 14% Less

Yoghurts 15% Less

Dips 17% Less

Salmon 27% Less

Ice Cream(s) 29% Less

Pizza 68% Less

Courgettes 75% Less

Muesli 80% Less

Bagels 81% Less

Sweetcorn 85% Less

Grapefruit 93% Less

One of our first ranges reviewed: Organics Range

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We lead the industry at a 19% Packaging Reduction so far and feel confident in delivering our 25% reduction target by end of 2008 reducing the packaging on more than 4,000 products

In weight terms we have already removed more 35,500t of packaging. By the end of this year we will have increased the figure to more than 46,000t less packaging

That’s the equivalent weight of more than 6,600 London Buses!

ASDA are also the first Retailer to deliver Courtauld Commitment

10%

6%

2%

22%

18%

14%

25%

Morrisons

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How Asda is helping customers to recycle

Customers tell us they want help to recycle – this should be closely linked to packaging composition and Local Authority waste infrastructure

New cross-retailer icon initiative will help to clarify packaging recyclability for customers – more on this later

Asda is reviewing all car park ‘bring banks’ to make it simpler for customers to recycle – more Tetra Pak, better units

Progress to be maintained through recycling champions Engaged with Councils and with local schools National Recycling Week 2008 New materials to upskill colleagues and customers:

— Monthly E-zine— Web resources— ASDA Magazine and ASDA FM— Supported by colleague training systems

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New packaging ‘ease of recycling’ icon

We will make it easier for our customers to recycle more of our packaging more often

Every packaging component on every pack

On over 2,000 packs already

ASDA packaging to be 100% recyclable

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646

813

687

617

807

726

746

667.5

65%70%

67%

62%

76%74%

62%

69%

600

650

700

750

800

850

Asda Lidl Localshops

Market M & S Morrisons Sainsbury Tesco

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total weight % recyclable

LGA War On Waste Study: ASDA No1

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-10%

-5%

0%

5%

10%

15%

ASDA LIDL M&S Morrisons Sainsburys Tesco Supermarket

Average

Oct-07 > May-08 Packaging Reduction %

LGA War On Waste Study: 9% reduction in 6 months!

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0%

5%

10%

15%

20%

25%

30%

ASDA LIDL M&S Morrisons Sainsburys Tesco Supermarket

Average

Competition Use (%) More Packaging Vs. ASDA

LGA War On Waste Study: How much more packaging?

ASDA, Making Green Living Affordable for All!