Chris Shearlock

Sustainable Development Manager

Ethical Operating Plan: Protecting the

Environment

2.

Ethical Operating Plan

3.

50 „weighty‟ targets within eight areas

Rolling three year plan; signed off by Values & Principles Committee, Executive and Board; places

ethical issues on same level as other financial plans.

• Democratic control: Triple our membership base by 2020, from 6 million to 20 million, and extend

membership to under 16s as soon as legally possible.

• Co-operative support: Invest £11 million by 2013 to support co-operative enterprise, and launch a £20 million

international Co-operative Development Loan Fund.

• Keeping communities thriving: By 2013, 10% of profits available for distribution to be invested in the

community, with at least £5m being used to tackle poverty around stores and branches

• Tackling global poverty: Continue to show the greatest commitment to Fairtrade in the UK, remaining

second to none in terms of availability and over-trade, and will newly commit that if a primary commodity can

be Fairtrade, it will be Fairtrade by 2013.

• Protecting the environment. We have set the toughest carbon reduction targets of any major business:

reduce by 35% by 2017, and will ensure that our operations are carbon neutral by 2012.

• Inspiring young people: Help bring about a cultural shift in the way that young people are viewed and treated

in this country. As part of this, provide £30m by 2013 to support an Apprenticeship Academy, a Green Schools

programme and the creation of 200 Co-operative Schools.

• Responsible retailing: Ensure that Healthier Choice products are no more expensive than standard

equivalent lines and the nutritional content of Simply Value products at least as good as standard equivalents.

• Ethical finance: Extend Bank‟s Ethical Policy to the investments underpinning key insurance products. At the

same time, increase commercial lending for green energy, from £400m to £1 billion.

4.

5.

Environment targets

Climate Change

• Reduce gross greenhouse gas emissions from our operations by 35% by 2017 and generate 25% of our electricity needs from our own renewables.

• Render our operations carbon neutral by 2012, with carbon offset solutions provided by a programme of international co-operative projects.

• Construct a new head-office by 2012 that will set new standards in sustainable design, construction and operation in the UK.

• Increase our commercial lending for renewables and energy efficiency to £1 billion

• Contracted farmers to receive additional benefits starting with energy efficiency and renewable electricity for our 250 dairy famers.

Waste & Packaging

• Having reduced the weight of our packaging by more than 15% will reduce its impact by a further 10%; increase our carrier bag reduction target to 75% by 2013.

• Vast majority of operational waste to be diverted from landfill by 2013 and expand our work with Fareshare.

6.

Environment targets

Biodiversity

• Aim to be the UK‟s leading retailer on forest protection, moving our palm oil and soya sourcing to a sustainable footing by 2011 and 2015 respectively, while maintaining our leading edge work on wood and paper.

• Maintain our position as one of the UK‟s most responsible retailers of fish.

• Extend Plan Bee to address the decline of other „at risk‟ pollinators.

• Secure the future of priority species on our farms through our Habitat Heroes programme.

PBT Chemicals

• Enhance our market leading pesticides policy banning chemicals such as endosulfan and paraquat.

Water

• Reduce our water consumption by 30% by 2014.

Campaigning & Transparency

• We will continue to use our influence to campaign for a more sustainable world and engage with 500,000 members and customers per annum, and always be open about such lobbying and its outcome.

7.

Sustainability reporting

8.

„Direct‟ greenhouse gas emissions 2006 - 2009

2006

2007

2008

2009

2010

Co-operative

Group Gross

emissions

(tonnes CO2e)

1,414,686 1,396,926 1,289,575 1,116,053 953,678

Energy Consumption:

679,063tCO2e

Transport:150,024t

CO2e

Refrigeration:

124,592tCO2e

Figures include Somerfield and Britannia

9.

10.

11.

12.

Renewables

13.

Carbon Offset

14.

Carbon Footprinting

15.

Ethical Finance

The Co-operative Bank - Ethical Policy

• Over £400m declined on environmental grounds since 1992

– Fossil fuel extraction and production

– Unsustainable harvesting of natural resources

– Manufacture of persistent or bioaccumulative chemicals

• £1bn to invest in renewables and energy efficiency

16.

17.

Campaigning with members

18.

19.

Packaging & Waste 2006 - 2009

2006 2007 2008 2009 2010

Total primary packaging

handled (tonnes)

287,388 269,388 266,506 234,089 211,951

Total waste arisings

(tonnes)

161,623 152,649 146,595 124,293 119,429

Figures include Somerfield and Britannia

20.

21.

Biodiversity - Fish

• Responsible fish sourcing policy launched 2008.

• Phased out all Marine Conservation Society‟s “fish to avoid”.

• MSC certified fish products increased from two to 28 lines.

• The Co-operative is funding twelve UK fisheries to pursue MSC certification.

• Funded „Project 50‟ extension to Cumbria.

• Campaigned with the Marine Conservation Society for 30% of the UK‟s seas to be designated as

Marine Reserves.

22.

Biodiversity – forest protection

• 99% of own-brand wood and paper products FSC certified or recycled.

• The Co-operative Funeralcare – FSC coffins – 2008 (now 93%)

• Aiming to achieve WWF- Forest Trade Network graduate status this year.

• Palm oil – 46% fully traceable CSPO; remainder covered with Green Palm certificates.

23.

Biodiversity - Peatland and wetland stewardship

• Peat and soil improvers peat reduction targets (20% peat now; 100% peat free by 2014).

• Sphagnum restoration project in the Peak District

• Over £5m raised for wetland restoration with the RSPB

6.

24.

Plan Bee campaign

• Honeybees pollinate a third of food we eat contributing £200m a

year to the UK economy

• Honeybee population has halved over last 20 years

• The cause of the decline is unknown

• Plan Bee campaign launched January 2009

• Extended to include other pollinators in 2011

25.

Highlights

• Nearly one million packets of wildflower seeds given away

• Bee Roads project launched to provide network of wildflower

meadows for pollinators

• Results of wildflower research show fourteen times more bees

on test strips compared to hedgerows and grass margins

• 300 new urban beekeepers trained

• Over 1,300 hives on our farming land

26.

Which UK food retailer/financial services provider do you consider to be the

leader on addressing environmental issues?

10.5%

13.2%

6.0%

8.7%

6.6%

9.6%

13.5%

5.8%

7.5%

6.8%

9.4%

12.5%

6.1%

7.1%

7.7%

12.1%

10.5%

6.1%

8.3%

6.0%

15.6%

10.1%

7.7%

6.4%

7.4%

12.5%

12.1%

6.4%

7.6%

7.4%

13.2%

10.5%

7.0% 6.2%

6.2%

0.0%

5.0%

10.0%

15.0%

20.0%

Co-operative Tesco Asda Sainsburys Marks and

Spencer

5.4%

4.2%

1.1%

3.5%

2.6%

5.5%

5.5%

5.0%

2.6%

3.5%

6.1%

4.8%

4.7%

3.7%

2.8%

7.1%

5.0%

3.8%

2.5%

2.7%

8.0%

4.2%

3.4%

3.9%

3.2%

7.7%

4.3%

3.5%

3.8%

3.1%

5.9%

4.0%

3.9% 3.4% 2.9%

Co-operative HSBC Barclays Natwest Lloyds

Jul-10

Sep-10

Dec-10

Feb-11

Apr-11

Jul-11

Sep-11

27.

Profitable Ethics

• Energy efficiency – 30% reduction saves

us £35m per year

• Waste to landfill – 32% reduction saves us

£1.75m per year

• Fairtrade sales have nearly tripled to

£100m in three years

• Fastest area of commercial lending is

green energy, increasing from £100m in

2009 to £500m today

• Since launching the Ethical Operating Plan

we have attracted a quarter of a million

new members and seen a ten percentage

point incease in those who would consider

using our business