Best Environmental Management Practicein the Retail Trade Sector
Learning from frontrunners

Harald Schönberger
Jose Luis Galvez Martos
David Styles
2013

Report EUR xxxxx EN
Report EUR 25998 EN

European Commission
Joint Research Centre
Institute for Prospective Technological Studies
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JRC76036
EUR 25998 EN
ISBN 978-92-79-30495-8 (pdf)
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JRC Scientific and Policy Report on

Best Environmental Management Practicein theRetail Trade Sector
June 2013
Authors: H. Schönberger, J.L. Galvez Martos, D. Styles

In memoriam:This report is dedicated to the memory of Don Litten (*21.02.1951 - †19.09.2009), whoworked tirelessly to promote better environmental management practices, and who
contributed to the development of this document.

Best Environmental Management Practice in the Retail Trade SectoriTable of contents
EXECUTIVE SUMMARY .................................................................................................................. XIII
A.1. GENERAL ASPECTS, STRUCTURE AND CONTENT OF THE DOCUMENT ..................... xiii
A.1.1 General aspects ....................................................................................................................... xiii
A.1.2 Structure of the document ........................................................................................................xiv
A.2. ENVIRONMENTAL INDICATORS AND BENCHMARKS OF EXCELLENCE ......................xv
A.2.1 Approach to conclude on environmental indicators and benchmarks of excellence.................xv
A.2.2 Presentation of the environmental indicators and the benchmarks of excellence .....................xv
A.3. Use of the SRD by SMEs........................................................................................................... xxvii
PREFACE ....................................................................................................................................... XXXIIISCOPE....................................................................................................................................................XLISTRUCTURE..................................................................................................................................... XLIII
1

GENERAL INFORMATION ...........................................................................................................1
1.1
Turnover and employment..........................................................................................................1
1.1.1
Composition of the retail trade sector in the EU-27 .........................................................2
1.2
Environmental issues of the retail trade sector ...........................................................................4
1.2.1
Direct aspects....................................................................................................................4
1.2.2
Indirect aspects .................................................................................................................5
1.3
Social responsibility and sustainability in the retail sector .........................................................7
1.3.1
Social responsibility .........................................................................................................7

2

BEST ENVIRONMENTAL MANAGEMENT PRACTICES .......................................................9
2.1
Best environmental management practices to improve the energy performance of the retailtrade sector..................................................................................................................................9
2.1.1
Chapter structure ..............................................................................................................9
2.1.2
Chapter introduction .........................................................................................................9
2.1.3
Scope of this Chapter......................................................................................................14
2.1.4
Drivers of retailer energy performance improvement ....................................................16
2.1.5
Techniques portfolio.......................................................................................................20
2.1.6
Best environmental management practices.....................................................................23
2.1.6.1
Retrofitting the building envelope for optimal energy performance.......................23
2.1.6.2
Design premises for new and existing Heating, Ventilation and Air Conditioning
systems ...................................................................................................................35
2.1.6.3
Use of integrated design concepts for buildings .....................................................49
2.1.6.4
Integration of refrigeration and HVAC...................................................................53
2.1.6.5
Monitoring of stores in the energy management system ........................................67
2.1.6.6
Efficient refrigeration .............................................................................................81
2.1.6.7
Efficient lighting...................................................................................................101
2.1.6.8
Simple secondary measures for reducing energy consumption ............................111
2.1.6.9
Use of alternative energy sources .........................................................................115
2.2
Best environmental management practice to improve the sustainability of retail supply chains................................................................................................................................................120
2.2.1
Chapter structure ..........................................................................................................120
2.2.2
Chapter introduction .....................................................................................................120
2.2.3
Scope of this chapter.....................................................................................................122
2.2.4
Drivers of retailer supply chain improvement ..............................................................124
2.2.5
Scientific understanding of supply chain environmental impacts and improvement
options ..........................................................................................................................126
2.2.5.1
Identification of some priority product groups .....................................................126
2.2.5.2
Classification of widely used environmental standards ........................................128
2.2.5.3
Product category example 1: meat and dairy production......................................136
2.2.5.4
Product category example 2: textiles (cotton production) ....................................138
2.2.5.5
Product category example 3: fish..........................................................................140
2.2.5.6
Product category example 4: eggs ........................................................................141
2.2.5.7
Product category example 5: washing powder .....................................................143
2.2.5.8
Product category example 6: sugar .......................................................................145
2.2.5.9
Product category example 7: fresh fruit and vegetables (asparagus) ....................147
2.2.5.10
Agricultural improvement option 1: continuous improvement of conventional
production.............................................................................................................148

Best Environmental Management Practice in the Retail Trade Sectorii

2.2.5.11
Agricultural improvement option 2: organic production...................................... 149
2.2.6
Best environmental management practices for supply chain improvement: techniques
overview....................................................................................................................... 152
2.2.6.1
Integrate supply chain sustainability into business strategy and operations......... 159
2.2.6.2
Assess core product supply chains to identify priority products, suppliers andimprovement options............................................................................................ 165
2.2.6.3
Identify effective product supply chain improvement mechanisms ..................... 173
2.2.6.4
Choice editing and green procurement of priority product groups based on third
party certification ................................................................................................. 181
2.2.6.5
Enforce environmental requirements for suppliers of priority product groups .... 193
2.2.6.6
Drive supplier performance improvement through benchmarking and best practicedissemination ....................................................................................................... 203
2.2.6.7
Collaborative research and development to drive widespread supply chain
improvement and innovation................................................................................ 213
2.2.6.8
Promote front-runner ecological products............................................................ 219
2.3
Best environmental management practice to improve transport and logistics operations ...... 228
2.3.1
Chapter introduction .................................................................................................... 228
2.3.2
Chapter scope............................................................................................................... 230
2.3.3
Drivers of transport and logistics improvement ........................................................... 233
2.3.4
Best environmental management practices for improving transport and logistics
operations: techniques overview .................................................................................. 234
2.3.4.1
Green procurement and environmental requirements for transport providers...... 239
2.3.4.2
Efficiency monitoring and reporting for all transport and logistic operations ..... 245
2.3.4.3
Integrate transport efficiency into sourcing decisions and packaging design....... 255
2.3.4.4
Shift towards more efficient transport modes ...................................................... 259
2.3.4.5
Optimise the distribution network........................................................................ 267
2.3.4.6
Optimise route planning, use of telematics and driver training............................ 273
2.3.4.7
Minimise the environmental impact of road vehicles through purchasing decisions
and retrofit modifications ..................................................................................... 278
2.4Best environmental management practice concerning waste ................................................. 285
2.4.1
Chapter Structure ......................................................................................................... 285
2.4.2
Chapter Introduction .................................................................................................... 285
2.4.3
Scope of this Chapter ................................................................................................... 288
2.4.4
Drivers of retailer waste minimisation (prevention, re-use, recycling and other recovery
operations).................................................................................................................... 300
2.4.5
Techniques portfolio .................................................................................................... 301
2.4.6
Best environmental management practices .................................................................. 303
2.4.6.1
Food waste minimization (prevention and recovery) ........................................... 303
2.4.6.2
Integration of waste management in retailers activities ....................................... 313
2.4.6.3
Return systems for PET and PE bottles and for used products ............................ 325
2.4.6.4
Anaerobic fermentation of food waste ................................................................. 331
2.5
Reduced consumption and use of more environmentally- friendly paper for commercial
publications ............................................................................................................................ 335
2.6
Rainwater collection and reuse to the ground at retail supermarket from roofs and parking
areas ....................................................................................................................................... 337
2.7
Influencing consumer environmental behaviour .................................................................... 341
2.7.1
Introduction.................................................................................................................. 341
2.7.2
The example of plastic bags......................................................................................... 343
3

EMERGING TECHNIQUES/APPROACHES........................................................................... 347
3.1
Improvement of energy performance ..................................................................................... 348
3.1.1
Building design, including HVAC: Trigeneration ....................................................... 348
3.1.2
Refrigeration: beyond the vapour-compression cycle.................................................. 348

4

APPLICATION OF THIS DOCUMENT TO MICRO, SMALL AND MEDIUMENTERPRISES.............................................................................................................................. 351
4.1
Implementation of Best Environmental Management Practices ............................................ 351
4.2
The performance of SMEs in the Retail Trade Sector............................................................ 357
4.3
SMEs and sustainability ......................................................................................................... 360

5

CONCLUSIONS ............................................................................................................................ 361
5.1
General aspects....................................................................................................................... 361
5.2
Specific conclusions............................................................................................................... 361
5.3Best environmental management practices ............................................................................ 362

Best Environmental Management Practice in the Retail Trade Sectoriii

5.3.1
Energy performance – including refrigerants consumption..........................................362
5.3.2
Product supply chain ....................................................................................................363
5.3.3
Transport and logistics..................................................................................................364
5.3.4
Waste Management ......................................................................................................364
5.3.5
Materials consumption – excluding refrigerants consumption .....................................365
5.3.6
Water management .......................................................................................................365
5.3.7
Consumer behaviour.....................................................................................................365
5.4
Common specific key performance indicators of the retail trade sector.................................366
5.5
Benchmarks of excellence and links to BEMP and related specific indicators ......................374
5.6
Recommended sector specific key environmental indicators .................................................385
GLOSSARY OF TERMS AND ABBREVIATIONS...........................................................................395
APPENDICES.........................................................................................................................................399

Best Environmental Management Practice in the Retail Trade Sectoriv

List of figures
Figure i: Bottom-up approach for environmental performance indicators and benchmarks of excellence........................................................................................................................................ xxxiv
Figure ii: Example for the definition of a benchmark of excellence – specific energy consumption forcommercial refrigeration of food in retail stores ............................................................. xxxv
Figure iii: Structure of the Technical Working Group (TWG).............................................................. xxxvi
Figure iv: Timing for the elaboration of the Retail Trade document.................................................... xxxvii
Figure 1.1: Breakdown of retail and repair sector (NACE code G.52) by type of sale, according to shareof gross value added in 2006 ................................................................................................. 3
Figure 1.2: Breakdown of retail and repair sector (NACE code G.52) by size of enterprise, according toshare of gross value added in 2006........................................................................................ 3
Figure 1.3: Overview of Inputs and Outputs of the Retail Trade sector................................................... 6
Figure 2.1: Illustrative scheme of the integration of the energy management system with othermanagement structures in a company .................................................................................. 10
Figure 2.2: Scheme of the Plan Do Check Act approach in an Energy Management System ............... 10
Figure 2.3: Priority of actions for the energy management system and their connection with the most
relevant aspects of retailers.................................................................................................. 13
Figure 2.4: Main energy aspects of store operations.............................................................................. 14
Figure 2.5: Carbon footprint breakdown of Carrefour activities and disclosure for the emissions
associated with electricity.................................................................................................... 15
Figure 2.6: Carbon footprint breakdown of Metro group (a) and Migros (b) ........................................ 16
Figure 2.7: Specific energy consumption vs. number of stores for a sample of food retailers............... 17
Figure 2.8: Specific energy consumption vs. average sales area for several non-food retailers ............ 18
Figure 2.9: Specific energy consumption for heating and electricity of small stores (<300 m2)............ 18
Figure 2.10: Energy losses from a typical UK commercial building through the envelope elements...... 24
Figure 2.11: European climatic zones based on the number of heating degree days ............................... 24
Figure 2.12: Draught lobby at C&A Mainz entrance ............................................................................... 33
Figure 2.13: Climate classification of European capitals ......................................................................... 35
Figure 2.14: Hypothetical daily consumption of a representative European food retailer store .............. 39
Figure 2.15: Hypothetical occupancy profile of a representative European retailer store........................ 40
Figure 2.16: Power consumption profile of a representative store where heating and ventilation arecontrolled as a function of the occupancy............................................................................ 40
Figure 2.17: Examples of power profiles of a store for non-controlled and controlled HVAC systems asa function of demand ........................................................................................................... 41
Figure 2.18: Energy use in EU locations.................................................................................................. 44
Figure 2.19: Design example of a ventilation system for retailers ........................................................... 45
Figure 2.20: Total costs, energy costs and construction costs vs. building heat demand......................... 49
Figure 2.21: Pressure-enthalpy diagram for a typical refrigerant and vapour-compression cycle ........... 53
Figure 2.22: Two examples of heat recovery integration with the auxiliary heating for stores ............... 54
Figure 2.23: Coefficient of performance vs. evaporating temperature and condensing temperature of therefrigeration cycle................................................................................................................ 55
Figure 2.24: Energy flow diagram (Sankey diagram) of a food retailer operation – Case A: No heatrecovery, no envelope improvement.................................................................................... 56
Figure 2.25: Energy flow diagram (Sankey diagram) of a food retailer operation – Case B: Refrigeration
heat recovery, no envelope improvement ............................................................................ 56
Figure 2.26: Energy flow diagram (Sankey diagram) of a food retailer operation – Case C: Refrigeration
heat recovery, optimised envelope....................................................................................... 57
Figure 2.27: Energy flow diagram (Sankey diagram) of a food retailer operation – Case D: Refrigeration
heat recovery, high insulated envelope and heat delivery to district heating....................... 57
Figure 2.28: Store-specific heat consumption vs. cumulative frequency for a good performer............... 58
Figure 2.29: Specific length of display cases and energy consumption for refrigeration vs. sales area... 59
Figure 2.30: Specific heating consumption vs. cumulative frequency ..................................................... 60
Figure 2.31: Integration of the recovered heat from the refrigeration cycle into the HVAC system ....... 62
Figure 2.32: Heat demand vs. ambient temperature for an integration scheme example ......................... 63
Figure 2.33: Payback time vs. energy savings for different scenarios of heating-refrigeration integration............................................................................................................................................. 65
Figure 2.34: Specific heating consumption of German retailers and the associated payback timeassociated if the proposed benchmark is achieved............................................................... 66
Figure 2.35: Heating demand vs. Q/HDD parameter for IKEA buildings operating all over Europe...... 74
Figure 2.36: Corrected heat demand vs. cumulative frequency for Ikea European stores ....................... 76
Figure 2.37: Indicators used frequently in the monitoring system of retailers and their connections ...... 77
Best Environmental Management Practice in the Retail Trade SectorvFigure 2.38:
Figure 2.39:
Figure 2.40:
Figure 2.41:
Figure 2.42:
Figure 2.43:
Figure 2.44:
Figure 2.45:
Figure 2.46:
Figure 2.47:
Figure 2.48:
Figure 2.49:
Figure 2.50:
Figure 2.51:
Figure 2.52:
Figure 2.53:

Figure 2.54:
Figure 2.55:
Figure 2.56:
Figure 2.57:
Figure 2.58:
Figure 2.59:
Figure 2.60:
Figure 2.61:
Figure 2.62:
Figure 2.63:
Figure 2.64:
Figure 2.65:
Figure 2.66:
Figure 2.67:
Figure 2.68:
Figure 2.69:
Figure 2.70:
Figure 2.71:

Figure 2.72:
Figure 2.73:
Figure 2.74:
Figure 2.75:
Figure 2.76:
Figure 2.77:
Figure 2.78:
Figure 2.79:

Figure 2.80:

Example of random distribution of stores performance data................................................78
Example of cumulative distribution of stores performance data ..........................................79
Carbon footprint breakdown of a retailer operation .............................................................81
Refrigeration energy saving measures and associated energy savings.................................83
Energy balance of an open vertical display case ..................................................................83
Energy balance of a horizontal display case.........................................................................84
Vertical and horizontal freezing display case with glass doors (with a sign saying 'Pleasechoose first, then open')........................................................................................................84
Vertical refrigerated display case with glass doors ..............................................................85
Air duct from a refrigeration display case to the ventilation system ....................................86
Carbon footprint breakdown of a typical retailer operation .................................................87
Global warming potential of several commercial refrigerants .............................................88
Comparison of energy consumption of direct evaporation refrigeration systems (CO2 andR404a)..................................................................................................................................89
Random distribution of specific energy consumption of refrigeration plants in a retailer's
division, located in central Europe, and sampled CO2 plants performance..........................90
Relative energy consumption and greenhouse gas (GHG) emissions for different
supermarket refrigeration systems........................................................................................92
Cumulative energy consumption distribution of two real retailers (central Europe)............92
Contribution of refrigeration to overall specific energy consumption vs. linear energy
consumption of refrigeration cabinets in 100 stores of a regional division of a retailer incentral Europe ......................................................................................................................93
Indirect refrigeration for MT and cascade arrangement for CO2 as the refrigerant for LT ..95
Humidity and temperature charts for a store in a 21-day period with and without glass doors
in the refrigeration display cases ..........................................................................................96
Payback time vs. Energy savings for several retrofitting costs with glass lids on vertical pen
refrigeration cabinets............................................................................................................99
Specific lighting power, 24-hor profile ..............................................................................103
Vertical and horizontal natural convection flows in double glass panes ............................104
Dependence of the U-value on the inclination for different types of fillings .....................104
Average illuminances on freezer shelf ...............................................................................106
Specific electricity consumption of three sampled stores of a non-food retailer for different
electricity uses....................................................................................................................113
Energy generation by solar photovoltaics at 17 Colruyt stores in Belgium .......................118
Installed power at distribution centres of Colruyt in Belgium ...........................................118
Simplified value chain for a cotton garment, broken down into constituent supply chains,
indicating the major inputs and outputs, and hotspot stages ..............................................121
The key components of sustainability ................................................................................122
The shares of private label products in retail sales across some European countries .........123
Business drivers for retailers to improve supply chain sustainability ................................124
Contributions of three major product groups to environmental pressures in the EU25 .....126
The relative contribution of different product groups to eight environmental impacts in the
EU-25 .................................................................................................................................127
The origins and composition of GHG emissions arising during the production of 1 kg ofmilk, based on average German conditions, calculated using the GEMIS LCA tool.........136
The origins and composition of GHG emissions arising during the production and storageof 1 kg of frozen beef, based on average German conditions, calculated using the GEMISLCA tool ............................................................................................................................137
The contribution of processes and individual gases to GHG emissions on the egg laying
farm ....................................................................................................................................142
Breakdown of the major sources of GHG emissions over the product lifecycle of a single
wash, under average use conditions (3.9 kg wash load at 46 °C).......................................144
Breakdown of GHG emission sources for different sugar products..................................146
Breakdown of GHG emission sources for asparagus from different sources.....................147
The complementary roles of mainstream production and organic production in driving theinnovation required to achieve sustainable farming systems .............................................150
Options to drive product improvement through 'push' and 'pull' effects ............................152
Key mechanisms by which retailers may improve the sustainability of supply chains, andthe roles of standards and relevant ISO-classified environmental labels ...........................153
Proposed sequence of key questions and actions (shaded rectangular boxes) representing
best practice for systematic supply chain improvement, divided into prerequisites or one oftwo strategies (S1 and S2) ..................................................................................................155
The management and implementation of sustainability objectives in M&S ......................161

Best Environmental Management Practice in the Retail Trade Sectorvi

Figure 2.81: Proposed method of prioritisation to efficiently identify supply chain improvement options,depending on the level of detail required to implement different improvement options ... 166
Figure 2.82: Carbon footprint of apples and kiwis from regional (European) and distant (New Zealand)........................................................................................................................................... 170
Figure 2.83: Water footprint of fruits from different source countries................................................... 170
Figure 2.84: The major control options available to retailers to exert influence over their supply chains........................................................................................................................................... 174
Figure 2.85: Flow chart representing the comprehensive control Coop Switzerland exerts over foodproduct suppliers, including third party certification and auditing by Coop Switzerland andcollaborating retailers ........................................................................................................ 178
Figure 2.86: Ecoproducts can exert an environmental performance 'pull' effect on entire product groups
if they become benchmarks for environmental performance............................................. 220
Figure 2.87: The key role of transport and logistics operations within retail strategy and operations. .. 228
Figure 2.88: Energy consumption for key transport and handling stages in the supply of apples fromNew Zealand and France and chests of drawers to consumers in France, compared withestimated energy consumption during production. ............................................................ 229
Figure 2.89: Simplified schematic of the main transport routes for retail sector goods and waste ........ 232
Figure 2.90: Major points within the T&L network considered within the six techniques (T1 to T6)
described in this chapter, and in product lifecycle optimisation (chapter 2.2)................... 232
Figure 2.91: Important factors and decision points relevant to the optimisation of retail transport andlogistics operations, categorised according to level of retailer engagement required ........ 234
Figure 2.92: Factors affecting road transport efficiency and CO2 emissions ......................................... 235
Figure 2.93: Flow chart of an integrated (best practice) approach to systematic reduction of theenvironmental impact of transport and logistics operations for a particular product group........................................................................................................................................... 236
Figure 2.94: Thousand tonnes CO2 eq. from different parts of Kingfisher's T&L operations, classified as
Scope 1 (direct) and Scope 3 (indirect) according to GHG Protocol guidelines ............... 252
Figure 2.95: Comparative energy consumption and emissions across freight transport modes, expressed
as a multiple of the lowest emitting mode on a per tonne-km basis (2010 average from
Tremove, 2010 and IFEU, 2010). ...................................................................................... 260
Figure 2.96: Comparison of the costs of road and rail transport over increasing distance..................... 264
Figure 2.97: Effect of increasing load and reducing empty running on specific CO2 emissions for a 44
tonne gross (29 tonne net load) truck................................................................................. 267
Figure 2.98: Centralised hub and consolidated platform networks (left) require additional short-distance(10s to 100 km) transport, but enable optimised loading and use of efficient modes for longdistance (100s to 1000s km) transport, compared with uncoordinated systems (right) ..... 269
Figure 2.99: Energy demand from a 44 t HGV over a typical driving cycle in the UK......................... 278
Figure 2.100: The percentage of retailer fleet trucks compliant with EURO 4 and EURO 5 emissions
standards ............................................................................................................................ 282
Figure 2.101: Non-Hazardous Wastes Generation in Europe for several sectors. ................................... 289
Figure 2.102: Wastes generation per category for different retailers and sampled stores........................ 290
Figure 2.103: Disclosure per type of waste treatment for two European retailers ................................... 291
Figure 2.104: Recycling rates vs. specific waste generation for several European retailers. ................... 291
Figure 2.105: Overall recycling rate vs. Waste generation per EUR million turnover ............................ 292
Figure 2.106: Hazardous wastes generated in two different stores from the same retailer ...................... 293
Figure 2.107: Animal by-products and food waste flows in Spain .......................................................... 294
Figure 2.108: Simplified waste flow chart of retailer activities. .............................................................. 302
Figure 2.109: Example of food waste management priorities for retailers .............................................. 305
Figure 2.110: Bread leftovers used for cattle feeding .............................................................................. 307
Figure 2.111: Flow chart of a food donation case study .......................................................................... 309
Figure 2.112: Temperature at reception and shelf display for fresh products .......................................... 310
Figure 2.113: Rate of waste generation of fresh fruit and vegetables in retailers and potential
improvements through better preservation and reduced temperature ................................ 311
Figure 2.114: Flowchart for recovery of materials and wastes and their re-incorporation in the supply
chain .................................................................................................................................. 321
Figure 2.115: Environmental impact of the production of bottle-grade PET-flakes from recycled PET
bottles ................................................................................................................................ 326
Figure 2.116: Part of the return system in a Migros store, including PET bottles ................................... 327
Figure 2.117: Machines for returning beverage bottles............................................................................ 328
Figure 2.118: Flow chart of the biogas plant in CH-Otelfingen, processing food and green waste ......... 331
Figure 2.119: Flow chart for the biogas plants operated by ReFood in Germany.................................... 332
Figure 2.120: View of the biogas plant in CH-Otelfingen and the stack to emit the waste gas from the
combined heat and power plant ......................................................................................... 333
Best Environmental Management Practice in the Retail Trade Sectorvii

Figure 2.121: Rainwater collection tank (100 m3) at the Tengelmann 'Klimamarkt' in Muelheim an derRuhr, Germany...................................................................................................................337
Figure 2.122: Trench for the infiltration of rainwater of the parking area of a supermarket ....................338
Figure 2.123: Costs of infiltration techniques depending on the infiltration coefficient (Kf) in Germany............................................................................................................................................340
Figure 4.1: Distribution of numer, employees and turnover per size in the Retail Trade sector...........357
Figure 4.2: Environmental Impact per category and per size of companies in the Retail Trade sector 358
Figure 4.3: Environmental impact per 1000 employees and per size of companies in the Retail Tradesector ..................................................................................................................................358
Figure 4.4: Environmental impact per EUR mill turnover and per size of companies in the Retail Tradesector ..................................................................................................................................359

Best Environmental Management Practice in the Retail Trade Sectorviii

List of tables
Table 1.1:
Table 1.2:
Table 2.1:
Table 2.2:
Table 2.3:
Table 2.4:
Table 2.5:
Table 2.6:
Table 2.7:
Table 2.8:
Table 2.9:
Table 2.10:
Table 2.11:
Table 2.12:
Table 2.13:

Main indicators for wholesale and retail trade in the EU-27 for 2007 and 2008 ................... 2Some examples of direct environmental aspects of retail activities....................................... 4
Examples from REAP commitments to improve the energy efficiency of stores ................ 11
Energy efficiency techniques portfolio................................................................................ 21
Techniques for improving the energy efficiency of the building envelope ......................... 26
Environmental benefits from some retrofitting packages .................................................... 29
Estimated average energy consumption of typical office buildings .................................... 30
Average U-values of existing buildings and code requirements.......................................... 31
Economics of building retrofitting for meeting the codes ................................................... 31
Checklist for aspects and the potential retrofit actions()...................................................... 38
Examples of HVAC integrated approaches for new and existing buildings ........................ 42
Potential economic savings (estimated) from HVAC system renovation............................ 46
Passive House requirements and measures to achieve them................................................ 49
Recommendations and best practices of elements for the Passive House standard ............. 51
Example of payback time calculation procedure for the integration of heat recovery in aretailer building with improvement of the building envelope.............................................. 64
Table 2.14: Energy source parameters to be controlled in a store as part of a comprehensive energy
monitoring system ............................................................................................................... 69
Table 2.15: Store operation parameters to be controlled in a store as part of a comprehensive energy
monitoring system ............................................................................................................... 70
Table 2.16: Energy-related aspects to be controlled in a store for a comprehensive energy monitoring
system .................................................................................................................................. 71
Table 2.17: Conversion factors from primary to final energy use and associated CO2 emissions per final
energy use ............................................................................................................................ 72
Table 2.18: Proposed prioritisation of techniques to consider for improving the energy performance ofrefrigeration systems............................................................................................................ 82
Table 2.19: Energy consumption of direct and indirect refrigeration systems and TEWI calculation ... 91
Table 2.20: Example calculation of TEWI for a refrigeration system .................................................... 94
Table 2.21: Economic balance of several refrigeration installations ...................................................... 97
Table 2.22: Lighting management concerns and energy-saving strategies........................................... 102
Table 2.23: Disclosure of the specific lighting load for a food retailer and for a non-food retailer...... 102
Table 2.24: Properties of several lighting devices ................................................................................ 105
Table 2.25: Energy savings from lighting system retrofitting .............................................................. 107
Table 2.26: Luminous efficacy and heat dissipation of lighting devices .............................................. 108
Table 2.27: Implementation of renewable energy sources at retailers; sites......................................... 117
Table 2.28: Supply chain social and environmental aspects relevant to the United Nation's Global
Compact principles ............................................................................................................ 122
Table 2.29: Proposed classification of widely recognised third party environment-related standards
commonly used in green procurement............................................................................... 129
Table 2.30: Labels commonly used to identify environmental front-runner products to customers ....... 130
Table 2.31: An example of relevant environmental requirements contained in a basic environmental
standard.............................................................................................................................. 130
Table 2.32: An example of relevant environmental requirements contained in an improved
environmental standard...................................................................................................... 131
Table 2.33: An example of relevant environmental requirements contained in an exemplary
environmental standard...................................................................................................... 132
Table 2.34: Summary of key stages and processes that contribute towards the environmental burden
associated with supply chains for high environmental impact product groups, and relevant,widely-applied (or promising new, in brackets) third-party environmental standards ...... 135
Table 2.35: Ranking of different textile fibres according to environmental performance by MADE-BY........................................................................................................................................... 138
Table 2.36: The effect of different usage characteristics on lifecycle GHG emissions per kg wash load,
relative to the average scenario (first row) ........................................................................ 143
Table 2.37: The contribution of various lifecycle stages to the environmental impact associated withwashing power use............................................................................................................. 144
Table 2.38: Product carbon footprint values for different types of sugar ............................................. 145
Table 2.39: Portfolio of approaches and techniques employed by retailers to improve supply chain
sustainability...................................................................................................................... 157
Table 2.40: Other front-runner retailers who have integrated supply chain sustainability considerations
into their business strategy and operations ........................................................................ 162
Best Environmental Management Practice in the Retail Trade Sectorix

Table 2.41:
Table 2.42:
Table 2.43:
Table 2.44:
Table 2.45:
Table 2.46:
Table 2.47:

Table 2.48:
Table 2.49:
Table 2.50:

Table 2.51:
Table 2.52:
Table 2.53:

Table 2.54:
Table 2.55:
Table 2.56:
Table 2.57:

Table 2.58:
Table 2.59:
Table 2.60:
Table 2.61:
Table 2.62:
Table 2.63:
Table 2.64:
Table 2.65:
Table 2.66:
Table 2.67:
Table 2.68:
Table 2.69:
Table 2.70:
Table 2.71:
Table 2.72:
Table 2.73:
Table 2.74:
Table 2.75:

Description and best practice examples of supply chain environmental impact assessment
methods, ranked in sequence of implementation priority (easiest first) .............................167
Common indicators and potential data sources for product environmental impact
assessment ..........................................................................................................................168
Widely-used third party basic environmental standards applicable to product groups ......183
Widely-used third party improved environmental standards applicable to product groups............................................................................................................................................184
Widely-used third party exemplary environmental standards applicable to product groups
that are relevant for green procurement..............................................................................185
Some environmental performance benchmarks required by the Better Sugarcane Initiative............................................................................................................................................186
Performance of leading retailers and proposed benchmarks of excellence, with respect toindependent certification of priority product groups (expressed as percentage of productgroup certified)...................................................................................................................188
Questions to assess the appropriateness of a product standard for a particular product group............................................................................................................................................189
A summary of the main requirements enforced by retailers across all suppliers of specificpriority product groups, and associated environmental benefits ........................................194
Performance of leading retailers and proposed benchmarks of excellence, with respect toapplication of retailer-defined standards for priority product groups (expressed aspercentage of product group certified) ...............................................................................197
Percentage of suppliers from different regions who fulfil various IWAY criteria .............199
Main continuous improvement programmes implemented by retailers .............................205
Performance of leading retailers and proposed benchmarks of excellence, with respect toproduct groups improved through retailer collaboration with suppliers (expressed aspercentage of product group certified) ...............................................................................207
The range in the carbon footprint of milk across supplier farms........................................210
Some examples of innovative supply chain research coordinated by front-runner retailers............................................................................................................................................214
The two main types of standard representing front-runner ecoproducts promoted via
labelling in this technique ..................................................................................................220
Performance of leading retailers and proposed benchmarks of excellence, with respect tosales of ecoproducts within priority product groups (expressed as percentage of productgroup certified)...................................................................................................................221
Front-runner retailer ecological range sales as a percentage of overall retail sales............222
Some examples of retailer sustainability ranges for food products ....................................223
Some examples of retailer sustainability ranges for non-food products, and associatedenvironmental benefit.........................................................................................................224
The modal share of goods transport within the EU-27 in 2006..........................................230
Portfolio of retailer approaches and best practice techniques to improve the efficiency oftransport and logistics operations .......................................................................................237
Positive and negative aspects of retailers using a third party T&L provider, versus in-house
T&L services......................................................................................................................239
Performance of two leading retailers with respect to environmental requirements for third
party T&L providers...........................................................................................................241
Key input data for monitoring T&L operations .................................................................245
Indicators proposed for the transport and logistics sector in the UN GRI pilot sector
supplement .........................................................................................................................246
Some examples of reported environmental performance improvement across retail T&L
operations ...........................................................................................................................247
Key efficiency (specific performance) indicators for T&L operations ..............................248
Final environmental performance indicators for T&L operations......................................248
Some characteristics of major transport fuels, including direct CO2 emissions fromcombustion .........................................................................................................................249
Indirect emissions arising during the extraction, processing and transport of different fuels,
expressed in relation to one kg of fuel ...............................................................................250
Radiative Forcing Index factor applied to aircraft GHG emissions, depending on altitude(flight length) .....................................................................................................................251
Kingfisher reporting of parameters relevant to the environmental performance of their
dedicated fleet ....................................................................................................................252
Various attributes of different modes of goods transport ...................................................259
Proposed prioritisation ranking of transport modes, based on environmental performance............................................................................................................................................261

Best Environmental Management Practice in the Retail Trade SectorxTable 2.76:
Table 2.77:
Table 2.78:
Table 2.79:
Table 2.80:
Table 2.81:
Table 2.82:
Table 2.83:
Table 2.84:
Table 2.85:
Table 2.86:
Table 2.87:
Table 2.88:
Table 2.89:
Table 2.90:
Table 2.91:
Table 3.1:
Table 4.1:
Table 4.2:
Table 4.3:
Table 4.4:
Table 4.5:
Table 4.6:
Table 4.7:
Table 4.8:
Table.5.1:

Some examples of CO2 savings achieved by modal shifts ................................................ 261
Performance of front-runner retailers for transporting goods overland via efficient modes(rail and inland waterways)................................................................................................ 262
Three major approaches to efficient distribution network design...................................... 268
Some of the main methods applied by retailers route planning ......................................... 274
Portfolio of measures to improve truck efficiency and/or reduce environmental impact .. 280
Emission limit values for heavy duty diesel engines associated with various EUROstandards, expressed per kWh engine output, and year of introduction............................. 281
Examples from REAP commitments about waste management....................................... 296
Set of example actions taken by retailers to prevent food waste in whole product chain(from suppliers to consumers) ........................................................................................... 304
Example pictures of some waste management practices at European stores ..................... 314
Example pictures of some waste management practices at distribution centres of retailers in
Europe................................................................................................................................ 316
Embodied energy consumption and associated emissions of usual waste materials.......... 319
Tonnes of exported wastes from Ireland in 2009 and total estimated tkm (tonne km) ...... 320
Percentages of refillable and ecologically acceptable one-way beverage packaging inGermany ............................................................................................................................ 327
Input/output of the biogas plant in CH-Otelfingen for one year ........................................ 333
Development of paper grammage, area of used paper, paper consumption and percentagesof used paper grades at Carrefour from 2005 – 2009......................................................... 336
Rainwater infiltration capacity of different soils (below the biologically active soil layer)........................................................................................................................................... 339
Emerging techniques for refrigeration ............................................................................... 349
Color code for the assessment of best environmental management practices for SMEs ... 351
Best Environmental Management Practices for SMEs: energy performance– including
refrigerants consumption ................................................................................................... 352
Best Environmental Management Practices for SMEs: supply chain................................ 353
Best Environmental Management Practices for SMEs: transport and logistics ................. 354
Best Environmental Management Practices for SMEs: Materials consumption – excluding
refrigerants consumption ................................................................................................... 355
Best Environmental Management Practices for SMEs: Waste Management .................... 355
Best Environmental Management Practices for SMEs: Water Management..................... 356
Best Environmental Management Practices for SMEs: Consumer Behaviour .................. 356
Waste water quality guideline effluent concentration limit values .................................... 401

Best Environmental Management Practice in the Retail Trade SectorxiExecutive Summary

EXECUTIVE SUMMARY
A.1. GENERAL ASPECTS, STRUCTURE AND CONTENT OF THE
DOCUMENT
A.1.1 General aspects
Background
This report represents the scientific and technical basis of the Sectoral Reference Document(SRD) on Best Environmental Management Practice in the Retail Trade Sector which has beendeveloped according to Article 46 of the Eco-Management and Audit Scheme (EMAS)
regulation(1).
Objective and intention of this document
This document is intended to support environmental improvement efforts of all actors in theretail trade sector. It can be used by all organisations and stakeholders of the sector who seek forreliable and proven information to improve their environmental performance. In case they havean environmental management system, such as EMAS, they can also use the document todevelop it further, especially with respect to continuous environmental improvement measuresand targets.
For this purpose, this document describes best environmental management practices (BEMPs),
i.e. those techniques, measures or actions that allow organisations of a given sector to minimise
their impact on the environment in all the aspects under their direct control (directenvironmental aspects) or on which they have a considerable influence (indirect environmental
aspects). Following this integrated approach, the scope of this document is broad and covers themost important direct and indirect environmental aspects. Thus, not only the direct operations of
the retailers but also their supply chain were considered in detail. For the different BEMPs, thedocument also present appropriate environmental performance indicators which enableorganisations to monitor their performance and compare it over time and with benchmarks.
Indeed, the document also reports a list of benchmarks of excellence representing the exemplary
environmental performance achieved by frontrunner organisations in the sector.
Approach used to develop this document
A Technical Working Group (TWG) was set up to get a broader access to the sector, to obtain
more qualified information and to verify the techniques described as well as to draw theconclusions with respect to appropriate environmental performance indicators and benchmarksof excellence. There was one meeting at the beginning of the whole development process on 25
June 2009 (so-called kick-off meeting) as well as a final meeting at the end on 18-19 November
2010 (final meeting).
A lot of information needed to draft this document was already publicly available from various
sources, including a number of comprehensive reports. That was supplemented with informationcollected directly from retailers and other stakeholders, including consultancy firms, nongovernmental organisations, and technology providers.
The techniques described in the document were selected according to the frontrunner approach,i.e. by identifying frontrunner organisations and studying in-depth their performance and thefrontrunner techniques implemented by them. This was required as the benchmarks of
excellence are a major outcome of the whole process. For this purpose, frontrunnerorganisations and techniques were identified and evaluated in detail through desk research andexpert consultation. If needed, site visits were carried out to obtain further required information
and understanding, both for technical and economic considerations.

(1) Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009
on the voluntary participation by organisations in a Community eco-management and audit scheme(EMAS), OJ L 342, 22.12.2009

Best Environmental Management Practice in the Retail Trade SectorxiiiExecutive Summary

The techniques are presented according to a common structure. Amongst others, this includes
their “applicability”, to provide clear indications under which conditions or circumstances acertain technique can be implemented (technical feasibility) as well as economic information
concerning investment and operation costs (economic viability).

A.1.2 Structure of the document
The document covers the whole value chain for the products sold in retail stores. On the basis ofmass stream thinking, the following input/output scheme has been used to structure thedocument.
PRODU CTION

Wholesale

EnergyWater

CONSUMPTION

Chemicals

Supply Chain

Food, Beverage, Tobacco
NACE 10, 11, 12

Textiles, Apparel, Leather,
Footwear
NACE 13, 14, 15

The RETA IL trade sector

Products

NACE 52
Distribution
andLogistics

Wood, paper, furniture
NACE 16, 17, 31

Consumers…transport, packaging, refrigeration,lighting, recycling, selective sorting, waste
management, working conditions, ...

Computers, Electronics,
Watches, Optical,
Domestic appliances
NACE 26, 27.5

Environmental
labels

Personal care, Jewellery,Sports goods, Games
NACE 20.4, 32

otherRecycling
Reuse…

Solid Waste

Indirect Aspects

Waste Gas

Waste Water

Waste Heat

Direct Aspects

Indirect Aspects

Overview of inputs and outputs of the Retail Trade sector

The heart of the document is Chapter 2 presenting the 'Best environmental management
practices (BEMPs)'. The structure of the description of the different practices is similar to theBest Available Techniques Reference Documents (BREFs), developed according to Article 13of the Industrial Emissions Directive: technical description, achieved environmental benefits,
appropriate environmental indicator, cross-media effects, operational data, applicability,
economics, driving force for implementation, reference retailers and reference literature.
Reflecting the overview above, the different techniques are grouped as follows:
•
•
•
•
•

BEMPs to improve the energy performance (section 2.1)
BEMPs to improve the sustainability of retail supply chains (section 2.2)
BEMPs to improve transport and logistics operations (section 2.3)
BEMPs concerning waste (section 2.4)
other BEMPs (reduced consumption and use of more environmentally-friendly paper forcommercial publications (section 2.5), rainwater collection and reuse (section 2.6), andinfluencing consumer environmental behaviour by means of the example of plastic bags
(section 2.7).

The content of these chapters covers the most significant environmental aspects of the sector.
The first two groups of BEMPs (improving the energy performance and improving thesustainability of the supply chains) are the most important ones.
Best Environmental Management Practice in the Retail Trade Sector

xivExecutive Summary

In addition to Chapter 2 on BEMPs, Chapter 1 contains general information about the retailtrade sector such as data on turnover and employment as well as the direct and indirectenvironmental aspects. These are illustrated by means of the overview of the inputs and outputsof the retail trade sector (see figure above). Chapter 3 describes two new emerging techniques
concerning the improvement of energy performance (building design and refrigeration). The
aim of Chapter 4 is to facilitate the use of the document by SMEs within the Retail Trade sector.
A set of tables on the applicability of the different BEMPs to SMEs are also included at the endof this executive summary.
Finally, Chapter 5 of the document contains concluding tables that compile the informationfrom Chapter 2. Conclusions are drawn with respect to key environmental performanceindicators (Section 5.4) and benchmarks of excellence (section 5.5). A final table (Section 5.6)
presents a set of recommended sector-specific key environmental performance indicators. These
are a subset of all the indicators listed in the document and in the previous section of theconclusions and are those indicators whose use is recommended for most organisations within
the sector.

A.2. ENVIRONMENTAL INDICATORS AND BENCHMARKS OF
EXCELLENCE
A.2.1 Approach to conclude on environmental indicators and benchmarks of
excellenceThis document was developed based on an information exchange with retailers, consultations
with experts, a literature review and site visits. Some of the cooperating retailers were big
players in the retail market.
The conclusions on the environmental indicators and benchmarks of excellence have been
derived by expert judgement of the European Commission through the JRC-IPTS, and by thetechnical working group (TWG). This group included companies, umbrella associations,verification bodies, accreditation bodies and other stakeholders. The European Commission
organised and chaired the meetings of the TWG. The conclusions on the environmental
performance indicators and benchmarks of excellence were drawn at the second meeting of theworking group in November 2010. There was consensus and no split views were recorded.
A.2.2 Presentation of the environmental indicators and the benchmarks of
excellence
The conclusions on the environmental indicators and benchmarks of excellence associated withthe application of BEMP are compiled in the following summarizing table which is structured
according to the BEMPs described in Chapter 2. The table contains cross references to thebackground information on the BEMPs in Chapter 2 of the SRD. This executive summary canbe used as a stand-alone document.

Best Environmental Management Practice in the Retail Trade Sectorxv

Executive Summary
Benchmarks of excellence

BEMP is to

Recommended
indicators

Remarks

ENERGY PERFORMANCE
Chapter 2.1 Best environmental management practices to improve energy performance of the retail sector

Specific energy consumption for heating, coolingand air conditioning less than or equal to 0
kWh/m2yr if waste heat from refrigeration can be
integrated (see Section 2.1.6.4). Otherwise, lessthan or equal to 40 kWh/m2yr for new buildings
and 55 kWh/m2yr for existing buildings.

improve the envelope of existing retailer buildings
to reduce energy losses to an acceptable and feasiblelevel. BEMP is to optimise the building envelope
design in order to fulfil demanding standards going
beyond existing regulations – see Section 2.1.6.1.
retrofit existing HVAC (heating, ventilation andair conditioning) systems in order to reduce energy
consumption and improve indoor air quality.
optimise the design of HVAC systems in newbuildings, using innovative systems to reduce theprimary energy demand and to increase efficiency –see Sections 2.1.6.2 and 2.1.6.3.

Store specific energy
consumption per m2(salesarea) and year.
Store primary energy
consumption per m2 (salesarea) and year.

Applicability: applicable to new and existing stores andto all sales concepts. Climatic dependence factors canbe applied to the benchmark if backed by soundscientific justification.
Economics: long payback times for envelope
retrofitting are foreseen (see Table 2.7). A new
optimised building should not cost more than 10 % of asimilar building without improvement measures.

use integrative concepts for the whole building orfor parts of it to reduce the energy demand of thestore – see Section 2.1.6.3.
Store energy consumption
per m2(sales area) and year.
Heat consumption of 0 kWh/m2yr (absence ofheating system).

recover the waste heat from the refrigeration
cycle and to maximise its use – see Sections 2.1.6.4
and 2.1.6.2.

Energy savings per m2 sales
area and year.
Produced or recovered heatper m2 sales area and year.

100 % of stores and processes are monitored.
Implemented benchmarking mechanisms (y/n).

monitor the energy use of the processes inside astore (heating, refrigeration, lighting, etc.), also atstore and/or organisation levels.
benchmark the energy consumption (per process)and to implement preventive and corrective
measures – see Section 2.1.6.5.

Best Environmental Management Practice in the Retail Trade Sector

Implementation of amonitoring system (y/n)
Percentage of storescontrolled
Number of controlled
processes

Applicability: can be applied to any food retailer.
Benchmark of excellence derived for a load ofrefrigeration (low and medium temperature) higher than
40 m of refrigeration cabinets per 1000 m2 sales area.
Climatic dependence factors can be applied to thebenchmark if backed with sound scientific justification.
Economics: Integration with building envelope and
HVAC retrofitting have long payback periods (> 3years).
Applicability: can be applied to any sales concept. This
practice is very relevant for retailers managing a large
number of stores.
Economics: Low cost of implementation if it isintegrated into business management structures for new
stores. For existing stores, it can be complex but can
result in higher savings due to the implementation ofcorrective measures.

xvi

Executive Summary
Benchmarks of excellence

BEMP is to

100 % covered low temperature cabinets.
100 % use of cooling zones (e.g. in cash and carry)or 100 % covering of medium temperaturerefrigeration where this can lead to an energy
savings of more than 10 %.

implement energy-saving measures in the
refrigeration system of a food store, especially thecovering of refrigeration display cases with glass
lids, when the energy-saving potential produces
relevant environmental benefits – see Section
2.1.6.6.

Specific (linear) consumption of refrigeration 3000
kWh/m yr.

General use of natural refrigerants (y/n).

Lighting: power consumption is less than 12 W/m2
for supermarkets and 30 W/m2 for specialist stores.

100 % of distribution centres who exclusively
service the retailer are monitored.

To have net zero energy buildings (store or
distribution centre) where local conditions allow the
production of renewable energy on site, orinvestment in equivalent renewable energy
generation at other locations (y/n).

Recommended
indicators
Specific energy
consumption per m2 sales
area and year
Specific (linear) energy
consumption per m ofdisplay case and year.
Percentage of stores withnatural refrigerants.

use natural refrigerants in food stores, as theenvironmental
impactwould
bereducedsubstantially and to avoid leakages by ensuring that
installations are tightly sealed – see Section 2.1.6.6.

design smart lighting strategies with enhanced
efficiency and reduced consumption, to use daylightwithout affecting the sales concept and to use themost efficient lighting devices – see Section
2.1.6.7.

implement energy saving measures in distribution
centres, to audit energy use periodically within theenvironmental management system, to train staff
regarding energy savings and to communicate theenergy saving efforts of the organisation internallyand externally – see Section 2.1.6.8.

integrate renewable energy sources in stores wherepreviously measures to reduce the energy demandand increase the efficiency have been applied – see
Section 2.1.6.9.

Best Environmental Management Practice in the Retail Trade Sector

Leakage control (% ofrefrigerant).
Percentage of stores withnatural refrigerants.
Specific energy
consumption per m2 sales
area and year.
Installed lighting power per
m2.
Specific energy
consumption per m2 sales
area and year.
Installed lighting and/or
appliance power per m2.
Energy management system
in place to drive continuous
improvement (y/n).
Specific energy generation
per m2 of sales area.
Percentage of energy fromalternative generation.
Percentage of alternative
energy generation in excess
of consumption.

Remarks
Applicability: applicable to food retailers. Covering
freezers and medium temperature cabinets have an
impact on the HVAC system.
Economics: Covering of cabinets can have shortpayback times (< 3 years) if the achieved savings areequal to or higher than 20 %.
Applicability: applicable to food retailers. The
application of CO2 for medium temperature cycles
depends on ambient temperature.
Economics: Shifting to natural refrigerants, such as
CO2, has the lowest emissions abatement costs.
Applicability: applicable to any sales concept. An
important influence on marketing aspects is observed
for lighting.
Economics: The definition of an optimal lighting
strategy and using the most efficient devices can lead toa savings higher than 50 %.

Applicability: There is no limitation on the size, type or
geographical location of the retailer to perform acomprehensive management system, taking into accountappliances, distribution centres, specific energy uses orcommunication and training.

Applicability: applicable to any sales concept.
Important limitations are the availability of renewablesources, accessibility of land or roof installations anddemand fixing for combined heat and power systems.
Economics: Implemented techniques will produce
benefits in the long term.

xviiExecutive Summary
Benchmarks of excellence
BEMP is to:
Recommended indicators
SUPPLY CHAIN IMPROVEMENT
Chapter 2.2 Best environmental management practices to improve sustainability of retail supply chains

Systematic implementation of supply
chain improvement programmes acrosspriority product groups

Implementation of systematic assessment(independently or through consortia) ofcore product supply chains(for top-level management) tointegrate supply chain sustainability
into the business strategy, and for
dedicated management personnel orunits to coordinate implementationof necessary actions across retail
operations – see Section 2.2.6.1.

Public reporting of quantitative corporate
targets specifically related to improving thesustainability of priority product supply chains(y/n)
Presence of a high-level business unit withresponsibility for driving and coordinating
supply chain sustainability actions (y/n)
Systematic implementation of supply chain
improvement programmes across priority
product groups (y/n).

identify priority products, processes
and suppliers for improvement
through environmental assessment of
product supply chains, using existingscientific information, consultation
with experts (e.g. NGOs), andlifecycle assessment tools – see
Section 2.2.6.2.

Life cycle environmental loadings (CO2 eq., kg
SOx eq., kg VOC eq., kg 1,4-DCB eq., kg Sbeq., m3 water, kg PO4 eq.), biodiversity
pressures, location-specific water pressures,
expressed per product mass or, where moreaccurate, per functional unit.

identify effective supply chain
improvement mechanisms forpriority products, specificallychains of custody and control points
that could be used to effectively
influence environmental performance– see Section 2.2.6.3.

Number of priority product supply chains thatare environmentally improved through theapplication of best practice techniques.

Best Environmental Management Practice in the Retail Trade Sector

Number of core product supply chainsassessed.

Implementation of a systematic assessment(independently or through consortia) of coreproduct supply chains (y/n).

Remarks

Applicability: all retailers can integrate supply chain
sustainability into business strategy. For small retailers, this islimited to green procurement and encouraging ecologicalconsumption. For larger retailers that sell private label
products, a higher level of integration is possible.
Economics: costs associated with systematic improvement of
supply chains should be balanced against: (i) mitigation against
supply chain cost volatility arising from anticipated resource
supply constraints; (ii) higher profit margins associated withvalue-added product ranges; (iii) long-term economic
advantage associated with reputational and marketing
advantages.
Applicability: basic environmental assessment methods are
relevant to all retailers and all products, to select the mostappropriate product groups for choice editing and green
procurement and for promotion of front-runners. More dataintensive assessment methods are applicable to private label
products sold by larger retailers, to inform the implementationof supply chain improvement through environmental
requirements and supplier environmental performancebenchmarking. Core (high sales volume) products should beprioritised for assessment.
Economics: basic assessment of hotspots based on existing
literature is inexpensive, but full supplier-specific assessment isexpensive. Costs may be compensated by the identification of
new process efficiencies, and by revenue increases associatedwith value-added products, marketing and reputational benefits.

xviii

Executive Summary
Benchmarks of excellence

BEMP is to:

Recommended indicators
Percentage of sales within a product group
certified to a specified third party
environmental standard.

100 % certification according to third
party environmental standards

exclude worst performing products,
and require widespread certificationaccording to third party
environmental standards for priority
products – see Section 2.2.6.4.

The environmental performance represented
by that standard.
Percentage certification targets, for productgroups where a programme for widespread
certification is being implemented.
Number of product groups where more thanhalf of sales are certified
Percentage of private label sales within a
product group compliant with specified
environmental requirements.

100 % private label sales within a productgroup comply with particular retailerdefined environmental requirements.

establish environmental criteria forpriority products and their
suppliers, targeting identified
environmental hotspots, and to
enforce compliance these criteria
through product and supplier auditing– see Section 2.2.6.5.

The environmental performance represented
by those requirements.
Percentage compliance targets, for productgroups where a programme for widespreadcompliance is being implemented.
Number of product groups where more thanhalf of sales are compliant with specificenvironmental requirements.
Percentage of private label sales thatoriginate from suppliers participating in retailprogrammes to improve environmental
performance.

100 % private label sales within a productgroup are sourced from suppliers
participating in retail programmes toimprove environmental performance.

drive supplier improvement by
establishing information exchangesystems that can be used tobenchmark suppliers, and bydisseminating better management
practices. The latter aspect may assist
supplier compliance with third party
standards and retailer-defined criteria– see Section 2.2.6.6.

The level of environmental performance
represented by those programmes.
Percentage participating suppliers targets,for product groups where a supplierimprovement programme is being
implemented.
Number of product groups where more thanhalf of sales originate from suppliers
participating in retail programmes to improve
environmental performance.

Best Environmental Management Practice in the Retail Trade Sector

Remarks
Applicability: choice editing and green procurement may be
implemented by any retailer, to branded and private label
products. This technique should be applied to priority productgroups identified during supply chain assessment.
Economics: Achieving widespread certification incurs
significant supplier costs usually passed on to the retailer.
These costs may be offset by small price premiums that can be
asked for certified products. Certification may also increase
retailer's overall private label sales through a positive 'haloeffect' (improved customer perception).

Applicability: large retailers, private label priority products.
Economics: auditing of supplier environmental performancecan be integrated into social auditing and product quality
control systems to minimise additional costs. For suppliers,
compliance costs should be balanced against improved securityof demand and enhanced marketability for their products, andany price premiums they may consequently realise. For
retailers, costs should be balanced against reduced reputationaland medium-term business supply chain risks associated withunsustainable practices, and against price and marketing
premiums they may consequently realize.

Applicability: large retailers, private label priority products.
Economics: Retailers may offer suppliers a small pricepremium to encourage participation in improvement schemes,
and pay for data collation and dissemination of better
management practice techniques. These costs should bebalanced against reduced reputational and medium-termbusiness supply chain risks associated with unsustainable
practices, and against price premiums that retailers may
consequently realise. The dividends of any identified efficiency
improvements may be shared with retailers through contractual
agreement.

xix

Executive Summary
Benchmarks of excellence
10 % sales within food product groups
certified as organic.
50 % cotton sales certified as organic.
10 % sales within non-food productgroups certified according to official (ISOType-I) environmental labels.

BEMP is to:promote front-runner certified
ecological products. Awarenesscampaigns, sourcing, pricing, instore positioning and advertising
are important components of thistechnique, which can be effectively
implemented through development ofown-brand ecological ranges – see
Section 2.2.6.8.

Best Environmental Management Practice in the Retail Trade Sector

Recommended indicators

Remarks

Percentage sales within a product group
certified according to front-runner exemplary
standards.

Applicability: all retailers can stock and encourage
consumption of front-runner ecological products. Large
retailers can implement this technique more extensively,
through the development of own-brand ecological ranges.

Number of product groups for which frontrunner ecological products are offered.
Existence of an extensive own-brandecological product range (y/n).

Economics: Supplier costs associated with front-runnercertification are passed on to retailers. Certified front-runnerecological products are associated with significant pricepremiums and higher profit margins. Own-brand ecologicalranges are also likely to increase a retailer's overall private
label sales through a positive 'halo effect'.

xx

Executive Summary
Benchmarks of excellence
BEMP is to:
Recommended indicators
TRANSPORT AND LOGISTICS PERFORMANCE
Chapter 2.3 Best environmental management practices to improve transport and logistics operations

100 % of transport and logistics (T&L)
providers comply with either: (i) thirdparty-verified environment-related
standards(ii) specific environmental
requirements(iii) best environmental management
techniques contained in this document.

integrate environmental
performance and reporting criteria
into the procurement of transport andlogistic services provided by third
parties, including requirements for
implementation of BEMPs described inthis document – see Section 2.3.4.1.

For 100 % T&L operations between
first-tier suppliers, retail stores andwaste management facilities, including
those performed by third party
transport providers, the following
indicators are reported:(i) percentage transport by differentmodes(ii) kg CO2 eq. per m3 or per palletdelivered.
For all in-house T&L operations
between first-tier suppliers, retailstores and waste management facilities
the following indicators are reported:

Percentage of transport providers certified toenvironment-related standards (includes
registration to reporting programmes), such as:
Clean Shipping Project, ERRT Way Ahead
Programme, US Smartway Program.
Percentage of transport providers complying
with specific environmental requirements or
BEMPs described in this document.

Remarks

Applicability: all retailers purchase at least part of theirtransport and logistic operations from third party
providers, and can make purchasing decisions according toefficiency or environmental criteria. Small retailers arecompletely dependent on third party providers.
Economics: improving the efficiency of transport andlogistic operations reduces operating costs, and requires
effective monitoring and reporting. Efficient third party
transport providers may be able to offer lower costservices to retailers.

Tonnes CO2 eq. per year emitted by transportand logistic operations.
kg CO2 eq. per m3, or pallet delivered.
report on the efficiency andenvironmental performance of alltransport and logistic operations
between first-tier suppliers, distribution
centres, retailers and waste
management facilities, based onmonitoring of in-house operations anddata provided by third party operations– see Section 2.3.4.2.

(i) truck load factor (% weight orvolume capacity)(ii) kg CO2 eq. per tkm

Best Environmental Management Practice in the Retail Trade Sector

whether the following parameters are reported for
all relevant transport and logistic operations:(i) percentage transport by different modes(ii) kg CO2 eq. per tonne, per m3 or per palletdelivered (y/n).
whether the following indicators are reported for
all in-house transport and logistics operations:Applicability: all retailers. Reporting on in-housetransport and logistics operations will only apply to larger
retailers. Small retailers can use basic data on average
emission factors for different modes of transport toestimate emissions.
Economics: effective monitoring and reporting requires
small investment in necessary information technology
systems and management but can identify options toimprove the efficiency of transport and logistic operations,and therefore reduce costs.

(i) truck load factor (% weight or volume
capacity)(ii) kg CO2 eq. per tkm.

xxi

Executive Summary
Benchmarks of excellence

BEMP is to:

Recommended indicators

Remarks

kg CO2 eq./m3 (or pallet) delivered.

Systematic implementation of
packaging improvements to maximise
density and improve T&L efficiency.

Over 50 % of overland transport
between first-tier suppliers and retail
distribution centres (tkm or sales
value) is by water/rail (where
infrastructure allows).
Over 99 % of overseas transport,
according to sales value, is by ship.

integrate transport efficiency into
sourcing decisions and packaging
design, based on life cycle assessmentof products sourced from different
regions, and through designing
product packaging to maximise thedensity of transport units – see
Section 2.3.4.3.

shift towards more efficienttransport modes, especially rail,water-based transport and larger trucks,
and to minimise air-freight. Thisoverlaps with planning of productsourcing and distribution networks –see Section 2.3.4.4.

Modal split of transport.

Applicability: large retailers with private label ranges.

Number of product groups where sourcing or
packaging has been modified specifically to
reduce T&L and life cycle environmental
impact.

Economics: for sourcing, highly dependent on productand source location, related to a multitude of sourcing
factors. For packaging, increasing the density of packaged
goods can considerably improve transport efficiency (byup to 30 % for the example of IKEA tea-light candles),and therefore reduce transport costs.

Systematic implementation of packaging
improvements to maximise density and improve
T&L efficiency (y/n).

Percentage of total product transport (tkm or
sales value), from first-tier suppliers to stores,
accounted for by specified more-efficient modes.

Applicability: large retailers with in-house transport andlogistic services, small retailers where they can selecttransport providers based on different modes, third party
transport providers. Products sourced over longer
distances.
Economics: loading and unloading costs for efficientmodes (train and ship) are more than compensated for bylower specific transport costs over longer distances.

kg CO2 eq. per m3 (or pallet) delivered.
Number of consolidation platforms in use.
Number of strategic central hubs in use.
Number of direct transport routes in use.

Systematic optimisation of distribution
networks through the implementationof strategic hub locations, consolidated
platforms, and direct routing.

optimise the distribution network
through the systematic implementationof the most efficient of the following
options: (i) strategic centralised hubs
to accommodate rail and water-basedtransport, (ii) consolidated platforms,(iii) and direct routing – see Section
2.3.4.5.

Percentage reduction in T&L GHG emissions
through implementation of specified distribution
network improvement options.
Outsourcing of T&L operations to a third party
provider with an optimised distribution
network.
Systematic optimisation of distribution
networks through the implementation of strategic
hub locations, consolidated platforms, and direct
routing.
(y/n)

Best Environmental Management Practice in the Retail Trade Sector

Applicability: large retailers with in-house transport andlogistic services, third party transport providers. Products
sourced over longer distances.
Economics: distribution network optimisation tocoordinate transport from multiple suppliers does not
require significant investment. Building new central hubs
integrated with rail and water-based transport networks
does require significant investment. In both cases,
increased loading efficiency and the use of more efficientmodes for longer distance routes can significantly reduce
operating costs. Payback periods vary from months toyears. Efficiency dividends may be shared between
cooperating parties.

xxii

Executive Summary
Benchmarks of excellence

BEMP is to:

Recommended indicators
kg CO2 eq. per m3 (or pallet) delivered.
Fleet average percentage load efficiency(volume or mass capacity).
Fleet average percentage empty running (truckkm).
Fleet average g CO2 eq./tkm.

100 % of drivers continuously trainedin efficient driving, or implementationof an efficient driving incentive
scheme for drivers.
Systematic optimisation of routing
through back-hauling waste andsupplier deliveries on store-delivery
return journeys, use of telematics, andextended delivery windows.

optimise operational efficiency
through efficient route planning, useof telematics, and driver training.
Efficient route planning includes backloading store delivery vehicles with
waste and with supplier deliveries to
distribution centres, and making nightdeliveries to avoid traffic congestion –see Section 2.3.4.6.

Percentage of drivers continuously trained inefficient driving.
Implementation of an efficient driving incentive
scheme for drivers (y/n).
Percentage reduction in T&L GHG emissions
through the implementation of specified options(i.e. back-hauling waste or supplier deliveries,
telematics, driver training and incentive schemes,
off-hour deliveries).

Remarks

Applicability: large retailers with in-house transport andlogistic services, third party transport providers. All
products.
Economics: driver training costs are low, and offer
payback periods of weeks to months assuming a 5 % fuelsaving. Route optimisation may require significant
investment in information technology, but can reduce
capital investment costs (fewer trucks required) andsignificantly reduce operating (fuel) costs. Payback
periods are short. Efficiency dividends may be shared
between cooperating parties.

Systematic optimisation of routing throughback-hauling waste and supplier deliveries on
store delivery return journeys, use of telematics,
and extended delivery windows (y/n).

Best Environmental Management Practice in the Retail Trade Sectorxxiii

Executive Summary
Benchmarks of excellence

BEMP is to:Operation of alternatively fuelledvehicles (natural gas, biogas, electric).
100 % vehicles fitted with low rolling
resistant tyres.

Remarks

l/100 km (vehicle fuel consumption).
kg CO2 eq. per tkm.

100 % trucks EURO 5 compliant with
HGV fuel consumption of less than 30
l/100 km.
100 % trucks, trailers and loading
equipment compliant with PIEK noise
standards, or equivalent standards thatenable night deliveries.

Recommended indicators

Percentage vehicles within transport fleet
compliant with different EURO classes.
minimise the environmental impactof road vehicles through purchasing
choices and retrofit modifications. This
includes the purchase of alternatively
powered vehicles, efficient vehicles
and low-noise vehicles, aerodynamic
modifications, and the application of
low rolling resistance tyres – see
Section 2.3.4.7.

Percentage of vehicles, trailers and loading
equipment compliant with PIEK noise standards,
or equivalent standards that enable nightdeliveries.
Percentage of vehicles in transport fleet poweredby alternative fuel sources, including naturalgas, biogas, or electricity.
Percentage of vehicles within transport fleet
fitted with low rolling resistance tyres.

100 % vehicles and trailers designed or
modified to improve aerodynamic
performance.

Applicability: large retailers with in-house transport andlogistic services, third party transport providers.
Economics: for vehicles driven long distances at higher
speeds (> 80 km/h), small investments in aerodynamic
modifications and larger investments to upgrade to
aerodynamic tractor and trailer units offer payback periodsof months to years. Low rolling resistance tyres pay backover months to years. Alternatively-powered vehicles
require considerably higher investment costs that may not
be paid back, but this depends on national fuel and roadtaxation policies. For the example of Albert Heijn,
investment in low-noise transport and loading equipment
increased capital costs by 15 %, but reduced overall
transport and logistic costs by more than 20 %.

Percentage of vehicles and trailers withintransport fleet designed or modified to improveaerodynamic performance.

WASTE MANAGEMENT
Chapter 2.4 Best environmental management practice concerning waste
kg or tonne of food waste, absolute value, per m2
or per EUR million of turnover.

Zero food waste sent to landfills or
incineration plants.

integrate environmental practices toavoid food waste generation, as
monitoring, auditing, prioritising,logistic issues, better preservation
mechanisms, temperature and humidity
control at store, distribution centres anddelivery trucks, training staff, donation,etc. – see Section 2.4.6.1, and to avoid
landfilling or incineration of foodwaste through fermentation
processes – see Section 2.4.6.4.

Best Environmental Management Practice in the Retail Trade Sector

Percentage of food waste generation referring tototal food purchases.
kg or tonne of food exceeding the sell-by datebut not the use-by date, donated to charitable
institutions.
kg of food waste sent to recovery operations,such as fermentation.

Applicability: food retailers of any size and in any
European country.
Economics: treatment costs of less than EUR 100 per
tonne. Achieved savings are higher if prevention measures
are implemented or food exceeding sell-by date is donated.

kg of food waste sent to landfill or incinerationplans.

xxiv

Executive Summary
Benchmarks of excellence
A waste management system is
integrated in the store and its objective
is to recycle or reuse 100% of
secondary packaging materials.
Consumer return of 80% without
deposit.
Consumer return of 95% with deposit.

BEMP is to:

Recommended indicators

integrate waste management
practices where prevention isprioritised – See section 2.4.6.2.

Percentage of recycling and reuse rates.

implement take-back systems and tointegrate them in the company
logistics, as, for example, for PET or
PE bottles – see Section 2.4.6.3.

Percentage recycling rate defined per sales ofreturnable bottle.

Best Environmental Management Practice in the Retail Trade Sector

Remarks
Applicability: any food retailer could implement thispractice.
Economics: prevention measures and joint initiatives
among stores can produce costs savings
Applicability: any food retailer could implement thispractice
Economics: expensive equipment and maintenance andstaff resources needed. In some countries it is mandatory,
such as Germany. For example, Switzerland is
implementing EUR 0.013 fee per bottle to give an
incentive for the system.

xxv

Executive Summary
MATERIALS CONSUMPTION
Chapter 2.5 Reduced consumption and use of more environmentally friendly paper
100 % certified/recycled paper.
Percentage of paper used that is certified
Grammage less than 49 gr/m2.
Less than 10 % coated paper.

reduce the impact through lessconsumption of materials, such as
paper optimisation for commercial
publications – see Section 2.5.

100 % print shops EMAS/ISO 14001
certified.
WATER MANAGEMENT
Chapter 2.6 Rainwater collection and reuse
Rainwater collection and/or infiltration
on site are integrated in the water
management system.

collect and reuse and/or infiltrate onsite rainwater from roofs and parking
areas – see Section 2.6

Grammage of paper used
Percentage of coated paper
Percentage of printing shops certified EMAS or
ISO 14001

Y/N

Applicability: any food retailer could implement thispractice.
Economics: expected costs reduction, if compared tonormal practices.

Applicability: any retailer could implement this practice,although climate can be an important factor when
implementing this measure.
Economics: cost intensive measure.

CONSUMER BEHAVIOR
Chapter 2.7 Influencing consumer environmental behaviour

Zero one-use bag available atcheckouts.

influence consumers to reduce theirenvironmental impact, throughcampaigns, such as the removal ofplastic bags, responsible advertisingand providing best guidance
information to consumers – see Section
2.7.

Best Environmental Management Practice in the Retail Trade Sector

Number of available one-use bags at check-outs

Applicability: any food retailer could implement thispractice.
Economics: expected costs reduction, if compared tonormal practices.

xxvi

Executive Summary

A.3. Use of the SRD by SMEs
Small and Medium Enterprises wishing to improve their environmental performance may
consider the different options mentioned in the tables below. A user-friendly analysis of costs,
applicability and environmental benefit, is performed below with three colour symbols
representing the level of each aspect. For more detailed information, the sections concerned inchapter 2 are indicated.
Colour code for the assessment of best environmental management practices for SMEs
SymbolCost(initial investment)

High

Applicability to SME

Not applicable

Environmental Benefit

Low

MediumApplicable
restrictions
Significant

Best Environmental Management Practice in the Retail Trade Sector

Low
with

Fully applicable
High

xxvii

Executive Summary

Energy performance – including refrigerants consumption

Management

SectionImprovement of Building Envelope

2.1.6.1.

Optimized design of HVAC systems

2.1.6.2.

Integrative concepts for buildings

2.1.6.3.

Heat recovery from refrigeration

2.1.6.4.

Monitoring

2.1.6.5.

Efficient refrigeration: single measures

2.1.6.6.

Efficient refrigeration: shift to naturalrefrigerants

2.1.6.6.

Efficient lighting

2.1.6.7.

Secondary measures

2.1.6.8.

Alternative Energy sources

2.1.6.9.

Best Environmental Management Practice in the Retail Trade Sector

Env. Benefit

Best
Environmental
Practice

Cost

AspectApp. To
SME

Best Environmental Management Practices for SMEs: energy performance– including refrigerants consumption

Comments

Usually, SMEs do not own the building or the building unit where
they operate. Nevertheless, they have direct control of glazing,shading, entrances, space heating and cooling (in some cases not),management and control of air flow and general maintenance ofbuilding-related aspect. Costs to retrofit existing systems are high,although some measures have very low payback times.
Only suitable for central refrigeration systems. The engineering of
the system can be contracted to third parties.
Metering system needed for each process. The environmental
benefit depends on the implementation of corrective measures.
Cost-efficient solutions through good management and operation
are feasible. Other measures, as glass lids on cabinets, are lessaccessible to SMEs.
For small stores with plug-in devices, it would be only possible for
new equipment.
Use of smart lighting systems and efficient devices is feasible for
SMEs
Efficient appliances, staff training and communication are feasible
measures
Green purchasing can be a good solution for micro enterprises. For
SMEs, the use of renewable energy or other alternative sources canbe achievable, although the payback times are usually high.

xxviiiExecutive Summary

Supply chain

Management

SectionIntegrate supply chain sustainability intobusiness strategy and operations

2.2.6.1

Assess core product supply chains to
identify priority products, suppliers andimprovement options

2.2.6.2

Identify effective product supply chain
improvement mechanisms

2.2.6.3.

Choice editing and green procurement ofpriority product groups based on third
party certification

2.2.6.4.

Enforce environmental requirements for
suppliers of priority product groups
Drive supplier performance improvement
through benchmarking and best practicedissemination
Collaborative research and development todrive
widespread
supplychain
improvement and innovation
Promote front-runner ecological products

2.2.6.5.

Env. Benefit

Best
Environmental
Practice

Cost

AspectApp. To
SME

Best Environmental Management Practices for SMEs: supply chain

Comments

The managing director of an SME may decide to stock and sell
products certified to environmental standards, based on
identification of priority product groups and a plan of action.
For SMEs, this involves identification of priority products to which
third party environmental certification should be applied, based onsales volume and environmental impact intensity (identified
through reference to scientific literature).
For SMEs, this involves identification of appropriate third party
environmental standards for either universal application (for use ingreen procurement) or to identify front-runner products (toencourage sustainable consumption).
Certified products may be more expensive, thought this is highly
dependent on the specific standard and product. By marketing thevalue-added of certified products, retailers can charge consumers asmall price premium.
This BEMP is applicable only to private label products, and may
involve significant costs. It is not applicable to SMEs.

2.2.6.6.

This BEMP is applicable only to private label products, and may
involve significant costs. It is not applicable to SMEs.

2.2.6.7.

This BEMP is applicable only to private label products, andtherefore not to SMEs.

2.2.6.8.

Front-runner environmental products are usually associated with asignificant price premium which consumers must be convinced to
pay through effective marketing.

Best Environmental Management Practice in the Retail Trade Sector

xxix

Executive Summary

Transport and Logistics

Management

SectionGreen procurement and environmental
requirements for transport providers

2.3.4.1

Efficiency monitoring and reporting for alltransport and logistic operations

2.3.4.2

Integrate transport efficiency into sourcing
decisions and packaging design

2.3.4.3

Shift towards more efficient transportmodes

2.3.4.4

Optimise the distribution network

2.3.4.5

Optimised route planning, use oftelematics and driver training
Minimise the environmental impact of roadvehicles through purchasing decisions andretrofit modifications

2.3.4.6
2.2.3.7

Best Environmental Management Practice in the Retail Trade Sector

Env. Benefit

Best
Environmental
Practice

Cost

AspectApp. To
SME

Best Environmental Management Practices for SMEs: transport and logistics

Comments

Applicable to all retailers, and the main improvement option for
SMEs who rely on third party providers for most of their transport
requirements.
Applicable to all retailers. For small retailers, BEMP requires
collation of basic information on the transport mode and distance.
Only applicable to large retailers with private label products. Not
applicable to SMEs.
Primarily applicable to retailers with extensive in-house transportand logistic operations. Not applicable to SMEs, except whereavailable procurement choices enable selection of more efficienttransport modes for particular products.
Only applicable to retailers with extensive in-house transport andlogistic operations. Consolidated platforms may be implemented
with little investment, but development of strategic central hubs isexpensive. Not applicable to SMEs.
Applicable to SMEs if they have their own transport vehicles (e.g.
delivery vans).
Applicable to SMEs if they have their own transport vehicles (e.g.
delivery vans). There is a wide variation in investment costs fordifferent procurement options and vehicle modifications.

xxx

Executive Summary

Materials
consumption

SectionReduceconsumption
and use of moreenvironmentally friendly
paper for commercial
publications

2.5

Env. Benefit

Best
Environmental
Management Practice

Cost

AspectApp. To
SME

Best Environmental Management Practices for SMEs: Materials consumption – excluding
refrigerants consumption

Comments

This technique can be applied
to any company generating
commercial publications.

Waste management

SectionFood waste prevention
and minimization

2.4.6.1

Integration of waste
management activities

2.4.6.2

Return systems for PET
and PE bottles and forused products

2.4.6.3

Fermentation of foodwaste

2.4.6.4

Env. Benefit

Best Environmental
Management Practice

Cost

AspectApp. To SME

Best Environmental Management Practices for SMEs: Waste Management

Best Environmental Management Practice in the Retail Trade Sector

Comments

Any SMEs can apply
preventing measures to
avoid
food
waste
generation. Management
costs
would
be
compensated by costsavings derived from lessproduct losses and lessgenerated waste
SMEs producing a hugeamount of wastes shouldallocate resources andtrain staff for waste
management.
These
systemsareincreasing reuse andrecycling rates in the
countries where it ismandatory.
Extra
resources
wouldbeneeded for managementof the return system.
Applicabletofoodretailerswithdirectcontrol on the treatmentof their wastes.

xxxi

Executive Summary

SectionRainwatercollection
and reuse to the groundat retail supermarket
from roofs and parking
areas

2.6

Water
management

Env. Benefit

Best
Environmental
Management Practice

Cost

AspectApp. To SME

Best Environmental Management Practices for SMEs: Water Management

Comments

Applicable
for
large
surfaces, in case of newstores.

Consumer behaviour

Influencing
theconsumer behaviour: theexample of plastic bags

SectionEnv. Benefit

Best
Environmental
Management Practice

Cost

AspectApp. To
SME

Best Environmental Management Practices for SMEs: Consumer Behaviour

2.7.2

Best Environmental Management Practice in the Retail Trade Sector

Comments

Small and medium enterprises
can be benefitted from theremoval of free disposable
plastic bags, as they can savea significant amount ofmoney by avoiding its
purchase and/or adding a fee
to each disposable bag

xxxii

Preface

PREFACE
1. Background
This JRC Scientific and Technical Report has been drafted to establish the basis for thedevelopment of the Sectoral Reference Document (SRD) on Best Environmental Management
Practice in the Retail Trade Sector, elaborated according to Article 46 of the Eco-Management
and Audit Scheme (EMAS) regulation( 2 ). EMAS was introduced in 1993 for voluntary
participation by organisations, by Council Regulation (EEC) No 1836/93 of 29 June 1993 (EC,1993). Subsequently, EMAS has undergone two revisions in 2001 and 2009. One of the newelements introduced with the latest revision is the development of sectoral reference documentson best environmental management practice as a tool to help organisations better focus on themost important environmental aspects in a given sector and to promote best environmental
practice and performance.
This is the first of a series of reports to be published in the next few years covering a number ofsectors for which the Commission is developing SRDs on Best Environmental Management
Practice. The Institute for Prospective Technological Studies (IPTS) of the European
Commission's Joint Research Centre leads the scientific and technical work.
More information on the overall work carried out in this area are available on the IPTS website
at: http://susproc.jrc.ec.europa.eu/activities/emas/

2. Objective and intention of this document
This document is intended to support the environmental improvement efforts of all actors in theretail trade sector. It can be used by all organisations and stakeholders of the sector who seek forreliable and proven information to improve their environmental performance as well as forappropriate environmental performance indicators and benchmarks of excellence. In case they
have an environmental management system, such as EMAS, they can also use the document todevelop it further, especially with respect to continuous environmental improvement measuresand targets.
As indicated above, this document is the scientific and technical basis for the SRD on Best
Environmental Management Practice in the Retail Trade Sector.

3. Content
Three key elements constitute the heart of this document: best environmental management
practices, environmental performance indicators and benchmarks of excellence.
Best environmental management practices (BEMPs) are those techniques, measures or actions
that allow organisations of a given sector to minimise their impact on the environment in all the
aspects under their direct control or on which they have a considerable influence.
BEMPs can be of a technical or technological nature, such as improving the energy efficiency
of a certain process, or of a more management or organisational type, such as providing training
to employees or engaging in environmental improvement with suppliers.
BEMPs are identified not only within the physical site boundaries of the organisations of thesector concerned but across the whole value chain of their products and services, andconsidering environmental impacts over the whole life cycle.
The concept of BEMP, similarly to the concept of Best Available Technique (BAT) according
to the Industrial Emissions Directive (IED)(3), is linked to two key criteria: the best practice isalready implemented at full scale by a number of organisations in the sector or at least by one( 2 ) Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary
participation by organisations in a Community eco-management and audit scheme (EMAS), OJ L 342, 22.12.2009

Best Environmental Management Practice in the Retail Trade Sector

xxxiiiPrefaceorganisation if replicable/applicable by others; and the best practice is technically feasible andeconomically viable.
In order to make the document more structured and the information easier to find, all the
BEMPs are described according to a common structure: technical description, achieved
environmental benefits, appropriate environmental indicator, cross-media effects, operationaldata, applicability, economics, driving force for implementation, reference retailers andreference literature. This is similar to the structure used in the Best Available Techniques
Reference Documents (BREFs), developed according to Article 13 of the IED(3).
An environmental performance indicator is a "specific expression that allows measurement ofan organisation's environmental performance" (EMAS Regulation(2), Art.2) and "shall: give an
accurate appraisal of the organisation's environmental performance; be understandable andunambiguous; allow for a year on year comparison to assess the development of theenvironmental performance of the organisation; allow for comparison with sector, national orregional benchmarks as appropriate; allow for comparison with regulatory requirements asappropriate" (EMAS Regulation(2), Annex IV). Indicators can be absolute or relative (ornormalised), specific or aggregated (or weighted).
This report focuses on sector-specific environmental performance indicators, i.e. indicators that
go beyond the general core indicators which can apply to all kind of organisations. They deal
with the following key environmental areas (defined for the core indicators in the EMAS
regulation): energy efficiency; material efficiency; water; waste; biodiversity and emissions.
Sector-specific environmental performance indicators can be defined at different level: at thelevel of the whole organisation or company, at the level of a certain site or at the level of a
specific process or activity (Figure i).

Figure i: Bottom-up approach for environmental performance indicators and benchmarks of
excellence

Indicators can be relevant and useful at all these levels, but focus was given to the process level
as this is the level which allows for better and more meaningful comparability acrossorganisations and against benchmarks. This is also the level where indicators can provide usefulguidance on which areas/activities/processes within a certain organisation show the lowest
performance or offer the highest potential for improvement. As shown in Figure i, thiscorresponds to taking a bottom-up approach to environmental performance indicators, where theenvironmental performance at higher levels is a result or, to some extent, a weighted average ofthe environmental performance at process level.

(3) The Industrial Emission Directive (IED) replaces the Integrated Pollution Prevention Control (IPPC) Directive with effect fromJanuary 2014. More information on the IED directive and on the development of BREFs can be found on the web-site of theEuropean
IPPC
Bureau(http://eippcb.jrc.ec.europa.eu)
and
on
DG
Environment
web-siteat:
http://ec.europa.eu/environment/air/pollutants/stationary.

Best Environmental Management Practice in the Retail Trade SectorxxxivPreface

In this report, environmental performance indicators are always given in relation with a specific
BEMP. On the one hand, this makes clear which indicators can be used to monitor progress in
the implementation of that technique. On the other hand, if an organisation can use a certain
indicator and would like to improve its performance in that area, it can implement the related
BEMPs.
It should also be noted that an environmental performance indicator may be appropriate for acertain company, enterprise or administration but may not be for others. If an indicator can beapplied to many companies, enterprises or administrations of a certain sector, a benchmark of
excellence may be derived from it.
As no official definition of benchmark of excellence existed when the work on this series ofreports was started, an appropriate understanding and interpretation of the meaning of this term
was developed. The understanding is that this term reflects exemplary environmental
performance. The term has to be seen in connection with best environmental management
practice which takes also economic considerations into account. As a consequence, benchmarksof excellence cannot simply mean the best of the best but, as rule of thumb, the 10 or the 10 to20 percent best performing installations within the sector overall, or within a good or best
performing organisation within the sector. Where there are sufficient data (which is often not
the case), frequency distributions of a quantified environmental performance indicator can beused to illustrate the approach.

Figure ii: Example for the definition of a benchmark of excellence – specific energy consumption
for commercial refrigeration of food in retail stores

Figure ii shows an example for commercial refrigeration of food by a remote system. In thiscase, the most appropriate environmental performance indicator is the annual energy
consumption per metre of display case and year and the benchmark of excellence wasconcluded by the Technical Working Group (see section 4 below) to be 3000 kWh/myr. The
data shown in the graph stem from one frontrunner retailer. However, the benchmark was also
checked against other data sets and experts' judgement.
The benchmark of excellence can also just be a yes or no criterion, such as for the use of naturalrefrigerants or for the systematic implementation of supply chain improvement programmes
across priority product groups (see table of benchmark of excellence contained in the executive
summary). It can also be a percentage of stores applying a certain technique, such as thepercentage of stores of a retailer where energy is monitored across specific processes, or theBest Environmental Management Practice in the Retail Trade Sectorxxxv

Preface

percentage of sales within a product group certified to a specified third party environmental
standard.
Benchmarks of excellence represent thus a high and ambitious environmental performancelevel, far better than good or average performance. In principle, it is also possible that abenchmark of excellence is derived from a few cases, if the technical feasibility and theeconomic viability are given.
As discussed for the environmental performance indicators, benchmarks of excellence areusually derived for processes where the comparability is best.
Benchmarks of excellence are reference points against which an organisation can compare its
environmental performance in order to identify improvement potentials.
4. Approach used to develop this document
The following strategy was developed and implemented in the elaboration of this report:•

A technical working group (TWG) was established to get a broad access to the expertisepresent in the sector, to obtain support with respect to the identification and descriptionof techniques as well as to draw conclusions on the appropriate sectoral environmental
performance indicators and benchmarks of excellence. The TWG comprises a range ofexperts with in-depth knowledge of the sector from different perspectives (see the setup in the Figure iii).

Figure iii: Structure of the Technical Working Group (TWG)

The elaboration process of this report started with the identification of experts to form
the TWG. Then, two meetings were held: a kick-off meeting on 25 June 2009 and a
final meeting on 18-19 November 2010 (Figure iv).
Besides the meetings, the technical working group interacted constantly with the IPTS
providing information and comments on the two drafts of the document that wereshared with them. For the collection of feedback, it was chosen to take an informal
approach. Comments could be provided by e-mail without using a specific format or
template. This reduced substantially the work load for the members of the TWG andthis is considered crucial to ensure the participation of very competent experts in thedrafting of a document of non-binding character.
The draft versions of the document as well as information on the advancement of thework were published on the IPTS website and thus available for consultation by allinterested stakeholders.
Best Environmental Management Practice in the Retail Trade Sector

xxxviPreface

Figure iv: Timing for the elaboration of the Retail Trade document•

Given the focus of this document on best practices and benchmarks of excellence, a socalled frontrunner approach was developed. Often it is sufficient and appropriate todescribe average or good performance, but in this case best environmental performanceis required. For this purpose, the research carried out focused on studying frontrunnerretailers. Frontrunners were indentified by desk research (looking at available
sustainability reports of retailers, environmental statements, case studies, literature
review, information on environmental indicators, correspondence with sector experts,
consultancy firms, non-governmental organisations, technology providers, etc.). The
frontrunners identified (certain retailers but also technology providers, consultancy
firms, etc.) were contacted and in many cases they were open and prepared to provide
all requested information. Thus, relevant techniques were identified and described alongwith defining suitable environmental performance indicators. In addition, preliminary
ideas concerning possible benchmarks of excellence were derived. Where required,visits of sites operated by frontrunners were carried out to complete the understandingof frontrunner techniques and to obtain specific information for their description
accordingtothecommonstructure.
In two cases, the detailed data provided was declared confidential. Consequently, upon
explicit agreement of the provider, the data were used in an anonymous form (graphs)
but were still useful. At any rate, confidential was respected.

•

As mentioned earlier, a very important outcome of this document is the definition of aset of benchmarks of excellence for the environmental performance in the retail trade
sector. These are directly built on the technical descriptions of the best practicetechniques, which also include one or a number of environmental performanceindicators. Based on these descriptions, the technical working group for the retail trade
sector concluded, thanks to his expert judgement, on appropriate benchmarks of
excellence. These benchmarks are presented as an essential part of the conclusions
chapter of the document. The same chapter also include a table with all environmental
performance indicators and a summary indicators table containing a set ofrecommended sector-specific key environmental performance indicators. These are asubset of all the indicators listed in the document and are those indicators whose use isrecommended for the organisations within the sector.

Best Environmental Management Practice in the Retail Trade Sector

xxxviiPreface

5. How to use this document
This document is not conceived to be read from its beginning to the end, but as a working tool
for professionals willing to improve the environmental performance of their organisation andwho seek for reliable and proven information to do so.
Different parts of the document will be interesting and will apply to different professionals andat different stages.
The best way to start using this document is reading the short section about its structure tounderstand the content of the different chapters and, in particular, which are the areas for which
BEMPs have been described and how these BEMPs have been grouped.
Then, chapter 1 would be a good starting point for the readers looking for a first general
understanding of the sector and its environmental aspects.
Those looking for an overview of the BEMPs described in the document could start fromchapter 5 (Conclusions) and in particular with subchapter 5.5 which present a summary table ofthe benchmarks of excellence, i.e. the exemplary performance level that can be reached in eacharea, together with links to the relevant BEMPs to be implemented to achieve thoseenvironmental performance levels.
For the readers looking for information on how to improve their environmental performance ina specific area, it is recommended to start directly at the concrete description of the BEMPs onthat topic, which can be easily found through the table of contents (at the very beginning of the
document).
Finally, those readers mostly interested in environmental performance indicators fororganisations of the retail trade sector would find useful to begin with the table in subchapter
5.6 containing a list of recommended sector-specific key environmental performance indicators,
as well as information on the related benchmarks of excellence and links to the relevant
BEMPs.

Best Environmental Management Practice in the Retail Trade Sector

xxxviiiPreface

References•
EC, Regulation (EEC) No 1836/93 of 29 June 1993 allowing voluntary participation bycompanies in the industrial sector in a Community eco-management and audit scheme.
Official Journal of the European Union L 168, 10.07.1993, p.1.
•
EC, Regulation (EC) No 761/2001 of the European Parliament and the Council of 19
March 2001 allowing voluntary participation by organisations in a Community ecomanagement and audit scheme (EMAS).Official Journal of the European Union L 114,
24.4.2001, p. 1.
•
EC, Communication from the Commission, the European Economic and Social
Committee and the Committee of the Regions on the Sustainable Consumption and
Production and Sustainable Industrial Policy Action Plan, dated 16 July 2008,
COM(2008) 397 final, 2008a.
•
EC, Commission staff working document accompanying the proposal for a regulation of
the European Parliament and of the Council on the voluntary participation byorganisations in a Community eco-management and audit scheme (EMAS), Impact
assessment.
EC,
Brussels,
2008b,
http://ec.europa.eu/environment/emas/pdf/sec_2008_2121.pdf.
•
EC, Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25
November 2009 on the voluntary participation by organisations in a Community ecomanagement and audit scheme (EMAS), repealing Regulation (EC) No 761/2001 andCommission Decisions 2001/681/EC and 2006/193/EC. Official Journal of the European
Union L 342, 25.11.2009, p. 1.

Best Environmental Management Practice in the Retail Trade Sector

xxxix

Scope

SCOPE
This document addresses the activities specified in Section G 47 of Annex I of Regulation
1893/2006/EC (NACE Rev.2( 4 )), namely: ‘Retail trade, except of motor vehicles andmotorcycles’. Retailing of services, e.g. restaurants, hairdressers, travel agents are excluded.
Retailing covers the resale without transformation of new and used goods to the general public
for personal or household use and consumption(5). A retail store may be specialised in a specificproduct category or non-specialised and cover the entire range of product categories included inretail. The product categories define the various 'sectors' of retail trade. The major retail trade
sectors are the following:
•
•
•
•
•
•
•
•
•

•
•
•
•
•
•

•
•
•
•
•
•
•

food
beverage
tobaccofruit and vegetables
meat and meat products
fish, crustaceans and molluscs
bread, cakes, flour and sugar confectionery
automotive fuelinformation and communication equipment
computers, peripheral units and software
telecommunications equipment
audio and video equipment
textileshardware, paints and glass
carpets, rugs, wall and floor coverings
electrical household appliances
furniture, lighting equipment
cultural and recreation goods
books
newspapers and stationery
music and video recordings
sporting equipment
games and toys
clothing
footwear and leather goods
dispensing chemist
medical and orthopaedic goods
cosmetic and toilet articles
flowers, plants, seeds, fertilisers, pet animals and pet foodwatches and jewellery.

(4) http://ec.europa.eu/environment/emas/documents/nace_en.htm(5) http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NP-06-008/EN/KS-NP-06-008-EN.PDF

Best Environmental Management Practice in the Retail Trade Sector

xliStructure

STRUCTURE
Following a brief description of the context and scope of this document (current section), Part 1('GENERAL INFORMATION') provides some background information on the retail trade
sector in short chapters:•••

Chapter 1.1 regarding turnover and employment
Chapter 1.2 regarding environmental aspects
Chapter 1.3 regarding social responsibility and sustainability.

More comprehensive background information on relevant retail operations and environmental
aspects are provided in Part 2 of the document ('BEST ENVIRONMENTAL MANAGEMENT
PRACTICES'), in Chapter 2.1 to Chapter 2.7.
Part 2 represents the main body of document, and is divided into five main chapters, eachdealing with a particular group of operations and activities over which retailers have, or could
reasonably be expected to have, a significant degree of control and that have importantconsequences for environmental performance or impact:
•
•
•
•
•
•
•

Chapter 2.1 deals with the energy efficiency of retail buildings, including all energyconsuming processes within buildings (e.g. insulating properties of building envelopes,
refrigeration, lighting, ventilation), and is divided into 9 techniques.
Chapter 2.2 addresses how retailers can improve the sustainability of their product supply
chains (e.g. assessing supply chain impacts, sourcing certified products, encouraging
ecological consumption), and is divided into 8 techniques.
Chapter 2.3 deals with transport and logistic operations association with supply anddelivery of retails goods, including distribution network design, collaboration with
suppliers and third party transport providers, etc., and is composed of seven techniques.
Chapter 2.4 deals with waste management and recycling, including retailers' provision of
take-back systems for recyclable materials, and is composed of four techniques.
Chapter 2.5 is comprised of a single technique to reduce paper consumption and use
certified paper in marketing material
Chapter 2.6 is comprised of a single chapter to reduce water consumption and run-off
Chapter 2.7 is comprised of a single practice as an example on how consumer behaviour
can be influenced.

Part 3 of the document shows the description of several emerging techniques, focused on theenergy performance of retailers.
Part 4 of the document summarises how to apply the document to SMEs and what techniques
can be applied to SMEs following three main criteria: costs, applicability and environmental
benefit.
Part 5 of the document summarises the main conclusions on retail best practice, relevant
indicators, and proposed performance benchmarks.

Best Environmental Management Practice in the Retail Trade SectorxliiiChapter 1

1
1.1

GENERAL INFORMATION
Turnover and employment

Retail belongs to the non-financial part of the service sector and constitutes, together withwholesale trade and motor trade, the branch of distributive trades. The retail sector ischaracterised within Eurostat’s structural business statistics according to NACE code G.52
(NACE Rev. 3): 'retail trade, except of motor vehicles and motorcycles; repair of personal andhousehold goods'). In 2007, about 3.8 million enterprises were active in retail trade in the EU-27(Table 1.1). In 2008, retail enterprises employed almost 18 million people, generated a turnoverof EUR 2 537 billion, and generated a value added of EUR 418 billion (Table 1.1). The highturnover share of the sector (second only to wholesale trade), reflects the buying and (re-)selling
nature of this activity.
The retail trade sector is a significant component of the European economy that has grownstrongly since 2000, with an average growth rate of 3.4 % between 2000 and 2008 (Eurostat,
2009b). In 2006, it represented 7.4 % of the EU-27 non-financial business economy, 8.1 % of
the UK economy, 8.3 % of the French and Portuguese economies, and 12 % of the Greek
economy (Eurostat, 2009a). In terms of total value added to the EU-27 economy, the UK retailsector contributed the most (EUR 87.1 billion), followed by Germany (EUR 76.1 billion).
Approximately 75 % of total value added by the sector is concentrated in Germany, Spain,
France, Italy and the United Kingdom. The retail trade is a relatively labour-intensive sector,
and accounts for 13.4 % of employment across the non-financial business economy within the
EU-27 (Eurostat, 2009c).

Best Environmental Management Practice in the Retail Trade Sector

1Chapter 1
Table 1.1:

Main indicators for wholesale and retail trade in the EU-27 for 2007 and 2008

Austria
Belgium
Bulgaria
CyprusCzech Republic
Denmark
Estonia
FinlandFranceGermany
GreeceHungary
IrelandItaly
LatviaLithuania
Luxembourg
Malta
Netherlands
PolandPortugal
Romania
Slovakia
Slovenia
Spain
SwedenUnited Kingdom
EU-27

Enterprises

Employees

Turnovernumber (2007)
42 47873 66891 63211 550124 672
24 5254 058
23 300461 114295 047
194 164
98 86516 777685 698
12 92743 5552 905:
78 795372 639
182 339
134 6499 097
7 126
526 772
59 250
198 707

number (2008)
342 564
292 428288 249
37 946356 515239 21450 515162 255
1 594 127
2 885 907
546 418337 166

million EUR (2008)52 75280 161
10 9365 737
37 49742 7555 311
34 976395 058
411 648
65 88028 303

1 971 918
104 187
167 455
22 458322 837
6 936
9 434
13 669777 182
1 376 904
463 386566 694
104 726
56 145
1 836 869
307 760
3 098 245

99 978103 449
47 96232 136
10 657
11 812242 749
60 805403 132

17 987 233

2 536 570

3 784 470

Source: Eurostat, 2010

1.1.1

Composition of the retail trade sector in the EU-27

Figure 1.1 and Figure 1.2 provide some key statistics on the composition of the retail sector
within the EU-27. Repair of personal and household goods is a minor component of NACE
code G.52. The largest source of economic activity within the retail sector is the sale of nonfood products in specialist stores (e.g. electronic, hardware, clothes stores) (Figure 1.1). The
second largest source of sectoral economic activity is the sale of general products in nonspecialised stores (e.g. super markets). Specialised food retailing accounts for just 6 % of
economic activity in the sector on average across the EU-27, although it is considerably higher
in some smaller Member States. Just 5 % of economic activity in the sector arises from sales
outside of stores, although this is rising. Eurostat (2009a) reported that 12 % of distributive
trade (that includes retail) was conducted via e-commerce in 2008.

Best Environmental Management Practice in the Retail Trade Sector

2Chapter 1

Retail sale ofsecond hand
goods in stores
0.5%

Retail sale not in
stores5%

Repair of
personal andhousehold goods
1%

Non-specialised
in-store retailing
34%
Specialised instore new goods
retailing otherthan food
53%

Specialised instore foodretailing
6%

Source: Eurostat, 2009

Figure 1.1:

Breakdown of retail and repair sector (NACE code G.52) by type of sale, according
to share of gross value added in 2006

The largest portion of economic activity within the retail trade sector (43 %) is generated bylarge enterprises employing 250 or more persons (Figure 1.2). However, there is a bimodal
distribution of economic activity within this sector, with 32 % of economic activity generatedby small enterprises employing 1 to 9 persons. Medium sized enterprises employing between 10
and 249 persons accounted for 25 % of economic activity.

1 to 9 persons
32%
250 or more
persons
43%

10 to 49 persons
16%
Source: Eurostat, 2009

Figure 1.2:

50 to 249
persons
9%

Breakdown of retail and repair sector (NACE code G.52) by size of enterprise,according to share of gross value added in 2006

Best Environmental Management Practice in the Retail Trade Sector

3Chapter 1

1.2

Environmental issues of the retail trade sector

1.2.1

Direct aspects

The retail sector is strategically positioned after the production supply chain and in directcontact with consumers. As such, the retail sector has the ability to strongly influence both the
production and consumption aspects of environmental damage. Figure 1.3 provides a schematic
overview of the sector and its links with suppliers and customers. Every stage of the production
and consumption chain, from growing crops or raising livestock, through manufacturing,storage, distribution and consumption, to dealing with wastes, has environmental impacts. The
choices of all the actors along these value chains influence the environmental footprints of thesechains, and of each other. Retailers are uniquely positioned to coordinate actions across
suppliers and consumers, and drive substantial environmental improvements throughout theirproducts’ value chains.
In the bottom of the figure reference is made to the environmental aspects of the whole chain
from production to consumption according to their origin. Direct aspects are the ones related to
the retail sector only, whereas indirect aspects originate from all the other actors except retailers
i.e. producers, wholesalers, transporters and consumers. Maintenance of product flows within
the retail sector requires significant inputs of energy, water and chemicals, and generates
significant outputs of solid waste, waste gas, waste water and waste heat (Table 1.2). Heating,lighting, refrigeration, transport and packaging are some of the key activities that give rise todirect environmental impacts associated with the retail sector. Table 1.2 refers to some of theenvironmentally important inputs and outputs most relevant to the retail trade sector. Some
aspects, such as electricity consumption, are general aspects that are of high relevance for most
sectors. Other aspects, such as carrier bag waste, are specific to the retail sector.

Table 1.2:

Some examples of direct environmental aspects of retail activities
INPUTS

ExamplesElectricity is the main energy source of energy for refrigeration,lighting, air conditioning, escalators, lifts, computers and otheraccessories in most sectors. It may also be used for heating
Fuel consumption for transportation fleet
Natural gas or light oil for building heating
For domestic use and for cleaning operations.
Refrigerants, cleaning and disinfection agents, vehicle oils andadditives, etc.

EnergyWater
Chemicals
OUTPUTS
Waste gas

Solid waste

Waste water
Noise
Odour

Acidifying gases, ozone forming gases, toxic gases and GHGs
arising from goods transport, heating boilers, etc.
Paper, cardboard, glass, wood, plastic and other packaging materials,
organic materials, food waste and carrier bags
Hazardous waste: batteries, fluorescents, mineral oils
For household waste (indirect aspect) around half originates fromsupermarket purchases. 25 % of household waste is packaging(*)
Domestic sewage, waste water from cleaning operations,condensates from air conditioning
From refrigeration systems, deliveries, customer traffic
From refrigeration and waste systems(*) http://www.wrap.org.uk/retail/index.html

Best Environmental Management Practice in the Retail Trade Sector

4Chapter 1

1.2.2

Indirect aspects

Major indirect impacts are associated with aspects of production and consumption. The supply
chain of the retail sector begins with the manufacturers of consumer products and their raw
material suppliers. Most products require substantial inputs of natural resources such as
minerals, water and energy. The supply chain of many consumer products is complex, and it
may be challenging to attribute quantifiable environmental impacts to specific actors upstreamof retailers. Other products have a clear chain of custody and well quantified environmental
impacts. In some cases, the environmental performance of supply sectors may be regulated byexternal agencies. For example, the IPPC Directive applies to large industrial installations in thefollowing sectors in Europe:
•
•
•
•
•
•

Glass Manufacturing (EC, 2006)
Food Drink and Milk (EC, 2001)
Rearing of poultry and pigs (EC, 2003a)
Slaughterhouses and animal by-products (EC, 2005)
Tanning of Hides and Skins (EC, 2003b)
Textiles (EC, 2003c).

For such sectors, there may be little scope for retailers to exert further influence on
environmental performance. However, many suppliers are from sectors or countries whereenvironmental regulation is weak. There is considerable potential for retailers to play a leadingrole in improving the environmental performance of such suppliers, and in the process shift
towards more sustainable business.
Retailers may be in direct contact with the producers of the products they sell, particularly own
brand products, or they may obtain products through intermediary wholesalers. Where chains ofcustody are long and complex, retailers may be somewhat removed from the actors responsible
for the primary environmental impacts within the supply chain. Nonetheless, the concept ofenvironmentally preferable purchasing is expanding across companies and governmentorganisations based on verifiable environmental criteria that can be used to identify ‘products orservices that have a lesser or reduced effect on human health and the environment whencompared with competing products or services that serve the same purpose’ (PPRC, 2004; US
EPA, 2010). There is considerable scope for retailers to take greater responsibility in productsourcing to drive considerable environmental improvement across product value chains.
For some products, a large share of their environmental burden may arise during theconsumption phase of their lifecycle. Main sources of consumption impacts include thetransportation of goods from the retail outlet to households, actual consumption (e.g. thewashing of textiles, the use of energy for cooking), and the generation of post-consumer waste.
Figure 1.1 highlights the importance of environmental labels as a tool that can influence theenvironmentally responsible behaviour of consumers (and ultimately producers), and the returnof used products to the retailer for recycling/reuse as a tool that can significantly reduce postconsumer waste and diminish the use of natural resources. Consumer choices influence the useof resources and can have environmental effects in the whole length of the supply chain (EEA,
2005).

Best Environmental Management Practice in the Retail Trade Sector

5Chapter 1

PRODUCTION

Wholesale

EnergyWater

CONSUMPTION

Chemicals

Supply Chain

Food, Beverage, Tobacco
NACE 10, 11, 12

Textiles, Apparel, Leather,
Footwear
NACE 13, 14, 15

The RETAIL trade sector

Products

NACE 52
Wood, Paper, Furniture
NACE 16, 17, 31

Distribution
andLogistics…transport, packaging, refrigeration, lighting,recycling, selective sorting, waste management,
working conditions, ...

Computers, Electronics,
Watches, Opticalequipment, Domestic
appliances

Consumers

Environmental
labels

Personal care, Jewellery,Sports goods, Games
NACE 20.4, 32

Recycling
Reuse

Other
Solid waste
Indirect aspects

Figure 1.3:

Waste gas

Waste water

Direct aspects

Overview of Inputs and Outputs of the Retail Trade sector

Best Environmental Management Practice in the Retail Trade Sector

6

Waste heatIndirect aspects

Chapter 1

1.3
1.3.1

Social responsibility and sustainability in the retailsectorSocial responsibility

There are many web-based publications on sustainability policy and practices within the retailsector, and most large retailers publish annual sustainability reports. Brand image and company
reputation are particularly important to retailers, and appear to be increasingly important driversof environmental responsibility as a consequence of increasing consumer awareness ofenvironmental problems. Consumers are ever more willing to support companies that addressenvironmental and social issues. The purpose of annual ‘triple bottom line’ or sustainability
reports is to meet society's demand for greater accountability and to demonstrate that thecompany is aware of, and actively manages, its risks (KPMG, 2002).

Best Environmental Management Practice in the Retail Trade Sector

7Chapter 1

References•
EC, IPPC Reference Document on Best Available Techniques in Food, Drink and Milk
Industries. JRC, Sevilla, 2006. http://eippcb.jrc.ec.europa.eu/reference/fdm.html•
EC, IPPC Reference Document on Best Available Techniques in the Glass Manufacturing
Industry. JRC, Sevilla, 2001. http://eippcb.jrc.ec.europa.eu/reference/gls.html•
EC, IPPC Reference Document on Best Available Techniques in the Intensive Rearing ofPoultry and Pigs. JRC, Sevilla, 2003a. http://eippcb.jrc.ec.europa.eu/reference/irpp.html•
EC, IPPC Reference Document on Best Available Techniques in Slaughterhouses andAnimalBy-products
Industries.
JRC,
Sevilla,2005.
http://eippcb.jrc.ec.europa.eu/reference/sa.html•
EC, IPPC Reference Document on Best Available Techniques in the Tanning of Hides
and Skins. JRC, Sevilla, 2003b. http://eippcb.jrc.ec.europa.eu/reference/tan.html•
EC, IPPC Reference Document on Best Available Techniques in the Textiles Industry.
JRC, Sevilla, 2003c. http://eippcb.jrc.ec.europa.eu/reference/txt.html•
EEA, Household consumption and the environment. EEA Report 11/2005. EEA,
Copenhagen, 2005. http://www.eea.europa.eu/publications/eea_report_2005_11•
Eurostat,
Retailtrade
andrepair,Eurostat,2009a.
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-BW-09-001-19/EN/KS-BW09-001-19-EN.PDF•
Eurostat, Sectoral analysis. Distributive trades, Eurostat, 2009b.
•
Eurostat, Specialisations within the EU’s non-financial service sector. Statistics in focus
61/2009, Eurostat, 2009c.
•
KPMG, The State of Sustainability Reporting in the Trade and Retail Sector, prepared by
KPMG Sustainability Advisory Services for Environment Australia, 2002
http://www.environment.gov.au/settlements/industry/publications/trade-retail/pubs/traderetail.pdf Accessed October, 2010•
PPRC, Supply chain management and environmental improvement, PPRC, 2004.
http://www.pprc.org/pubs/grnchain/casestud.cfm#epp Accessed October 2010.
•
US
EPA,
Environmentally
Preferable
Purchasing,
EPA,
2010.
http://www.epa.gov/epp/pubs/about/about.htm Accessed October 2010.

Best Environmental Management Practice in the Retail Trade Sector

8Chapter 2

2
2.1
2.1.1

BEST ENVIRONMENTAL MANAGEMENT PRACTICESBest environmental management practices to improvethe energy performance of the retail trade sector
Chapter structureThis chapter provides practice-oriented information to retailers to improve the energy
performance of their activities. Only direct aspects of energy, i.e. those controlled by thecompany, are being covered and the focus is mainly made on the operation of stores. An
introduction about energy management systems and energy commitments of known retailers isprovided in Section 2.1.2. The scope of this part of the document is further explained in Section
2.1.3 and the most important drivers, also explained for each described technique, are shown in
Section 2.1.4.
A comprehensive list of the most outstanding practices for energy performance improvement isprovided in Section 2.1.5. Section 2.1.6 gathers all the described techniques. The building
aspects are first explained: building envelope in Section 2.1.6.1, HVAC in Section 2.1.6.2 andPassive House concepts in Section 2.1.6.3. The integration of heat recovery from refrigeration
within a store is explained in Section 2.1.6.4. Monitoring of energy consumption, in Section
2.1.6.5, is also considered as a best practice regarding to direct aspects. Best practices inrefrigeration are described in Section 2.1.6.6. The shift to more efficient lighting systems isshown in Section 2.1.6.7. Other aspects, as the single measures or integration of alternative
energy sources are shown in sections Section 2.1.6.8 and Section 2.1.6.9.

2.1.2

Chapter introduction

The energy management of a company is usually integrated in the environmental management
system. With the implementation of an energy management system, energy would be integrated
into organisational business structures, not only because of the public image and reputation but
also improved business performance through better energy performance and cost-savings.
The European standard EN16001:2009 and the international standard ISO 50001 (draft
published in 2010) on Energy Management Systems integrate energy in the typical businessstructures. These standards are quite similar to ISO 9001 and ISO 14001 and they are based on aPlan, Do, Check, Act (PDCA) approach, which is a continuous improvement scheme. Figure 2.1
shows a simplified diagram of how the different management systems are complementing eachother. The standard for the energy management was developed to be a complement of theenvironmental management system with enhanced focus on the economic aspects of energy
performance.

Best Environmental Management Practice in the Retail Trade Sector

9Chapter 2

Energy Management(EN 16001, ISO 50001, …)

Environmental
Management

Quality
Management(ISO 9001, …)(EMAS, ISO14001,…)

Other management structures

Figure 2.1:

Illustrative scheme of the integration of the energy management system with othermanagement structures in a company

As well as for other standards, the PDCA approach (Figure 2.2) is initiated with an initial
review of the energy related aspects, where an evaluation of the energy aspects of the company
has to be completed. Targets, objectives, the programme for the implementation, etc. of theenergy management system have to be defined in the first steps. Then the implementation andoperation are performed and checked. A good monitoring and measurement system is required.
This is quite significant for retailers, which usually have hundreds or thousands of stores tomanage. The cycle finishes (and start again) with the 'act' aspect, in which the reporting, audits
and top management review of the system are performed and new or reviewed targets have tobe proposed.
Identification of energy aspects,
past and present energy performance,
equipment, priorities, etc.
Establishment of targets, objectives,
program, etc.

Implementation andoperation

Energy policy

Reporting,Internal audits,
External audits
Management review oftargets
Figure 2.2:

Monitoring andmeasurement
Non-conformities,
corrective andpreventive actions

Scheme of the Plan Do Check Act approach in an Energy Management System

Best Environmental Management Practice in the Retail Trade Sector

10Chapter 2Management systems, both for environment or energy, help the organisation to establish
coherent policies, to set procedures for improving, to gain knowledge and understanding of theiroperations and to establish continuous improvement mechanisms. However, there are not any
absolute requirements or mandatory threshold values for the energy performance. The
establishment of such limit or threshold values for the energy performance would depend on thecommitment of the company top management to establish objectives and targets.
The commitment to improve the environmental performance (an thus energy performance) of
the retail trade sector in Europe is reflected in the creation of the Retail Forum, which isintended to contribute to the implementation of the EU Action Plan on Sustainable
Consumption and Production and Sustainable Industrial Policy, presented by the Commission in
July 2008.
The Retail Forum is a multi-stakeholder platform. It was developed with the aim of exchanging
best practices on sustainability and identifying opportunities and barriers of the achievement ofsustainable consumption and production. The first Retail Forum meeting focused on energy
efficiency of stores and an issue paper was produced ( 6 ), with a list of already applied
techniques in the retail trade sector. Most of them are explained in this document in a very
comprehensive way. Details about the performance, the environmental benefit, economic
performance and other aspects are provided. There is no overlapping between the two
documents, as they are complementing each other.
In the framework of the Retail Forum, the Retailers' Environmental Action Programme (REAP)
was launched and some mechanisms were provided to enhance the dialogue with the European
Commission and other relevant stakeholders. It also makes available the commitments andactions of retailers in Europe. The REAP commitments database is located at the Commission
webpage (7) and the list of commitments for energy efficiency (shown in Table 2.1) represents
25 % of the total list.

Table 2.1:
Retailer

Asda Walmart
AuchanDelhaize Group

FCD

Kooperativa
Förbundet
Leroy Merlin,
Spain
The Cooperative Group
ANCC/Coop
ItaliaExamples from REAP commitments to improve the energy efficiency of stores
Target description'What we sell' category
End the sale of filament light bulbs by end 2010 versus 2008
Consumer electronics will use 25 % less energy by end 2010 versus 2007
Stop of selling incandescent light bulbs > 75 watt to consumers
For Belgium, end of incandescent light bulb sales by the end of 2010
Decrease market share of incandescent light bulbs
Decrease energy consumption of light bulbs soldIncrease market share of CFLs (A+B)
Phase out of incandescent light bulbs.
Increase the share of CFLs (number) from 10.7 % in 2007 to 25 % in 2009 and 35 %in 2011
Introduction of a new method to assess the carbon footprint of products whensourcing PLBs
Increase "A" categories for domestic appliances
Stock white goods A or above and phase out the sale of tungsten incandescent light
bulbs'How we sell' category
Reduction of energy consumption in 184 members' company stores with 'Green
Light' certification by promoting energy efficiency applied to lighting(6) More information available at http://ec.europa.eu/environment/industry/retail/about.htm(7) http://ec.europa.eu/environment/industry/retail/reap/index_en.html

Best Environmental Management Practice in the Retail Trade Sector

11Chapter 2
Retailer

APED
Asda Walmart
C&A
Carrefour
Colruyt
Coop Norway
Delhaize GroupEl Corte Inglés
FCD
IKEA
Inditex
KauflandKingfisher

Kooperativa
Förbundet

Lidl
Marks &
Spencers

Mercadona

Mercator
Metro Group
REWE GroupRoyal Ahold –(Albert Heijn )Target description
Increase energy efficiency by using district heating
Promoting energy efficiency in dimmered plants
Promoting energy efficiency by use of LED technology
New 'green' logistic centre for non-food products
Reduce energy consumption
Promoting the replacement of halogen lamps by LED in member companies' stores
Promoting the replacement of CFL by LED lamps in refrigerating appliances
New stores will consume 30 % less energy by end 2009 over 2005 base levels
Existing stores will consume 20 % less energy by end 2009 over 2005 base levels
Installation of an environmentally-friendly lighting system
Reduce energy consumption per m2 of sales area by 30 % by 2020 (based on 2004
baseline consumption)
Continue the design of more ecoefficient buildings and shops
Systematically monitor energy use in our buildings in order to save energy by 2015
To increase eco – efficiency in buildings
Decrease 35 % of overall energy consumption by energy efficiency measures on
store level by 2020
Explore innovative refrigeration system designs and operating practices.
Promote energy efficiency as a principle favouring a relevant electric consumption
reduction per year and m2
Improve the energy efficiency of stores by determining end of 2009 indicators andstandard values.
Reduce energy consumption for the whole of IKEA with 25 % in relative terms e.g.
kWh/m3 sold (base FY 05)
Reduction by 20 % of electrical power consumption per garment in all stores built asof 2009
Identify the most economic and ecological measures to reduce energy consumption
and GHG emissions by using energy-efficient technologies or renewable energy
sourcesAchieve a 10 % reduction in store energy consumption per m² of total sales area by
2011/12 against the 2006/07 baseline
Reduce the environmental impact of its business, in particular its carbon footprint
Reduce direct emissions of GHG in relation to turnoverReduce energy consumption per m2 and diesel consumption in transport
Introduction of energy-efficient pilot stores, reducing energy consumption,
exploiting daylight for lighting, and putting doors and locks on all refrigerators andfreezers
Use environmentally friendly freezing cabinets in new shops
Use of heat recovery system from our refrigeration plants
Source or generate 100 % 'green' electricity of M&S stores, offices and distribution
centres in the UK and Ireland by 2012
Reduce the amount of energy used in the stores by 25 % per square foot of floor
space
All the new and the refurbished stores shall be Eco-efficient stores (more than 20
measures to reduce electrical consumption in stores (efficient lighting system,
improvement of insulation, more efficient heating/cooling systems)
Re-use the heat produced by the air conditioning to acclimatise the stores in 45 % of
the new and the refurbished stores in 2009
Implementation of ISO 14001 in all shops in Slovenia by the end of 2009
Implementation of environmental Balanced ScoreCard and IT support for the groupof parameters written down in ISO 14001
Reduction of the specific energy consumption per m2 of selling space
Develop and implement a technical energy management system
20 % reduction of CO2/m2 in 2015 compared to 2008
20 % renewable energy use in 2020

Best Environmental Management Practice in the Retail Trade Sector

12Chapter 2
RetailerTarget description
Measures: reengineering Refrigeration and HVAC systems, low temperaturecondensation, heating with heat pumps, no gas, low GWP and natural refrigerants,
EC ventilators

S Group
Tesco
The Cooperative Group

C&A
Carrefour
ConfCommercio
IKEA
Marks &
Spencers

Promoting energy efficiency applied to lighting and heating in order to reduce energy
consumption in its members' company stores
Become a zero-carbon business
Reduce emissions from existing stores and distribution centres
Reduce emissions of new stores and other buildings
Reduce greenhouse gas emissions from refrigeration
Reduce energy consumption of buildings
Reduce the use of ozone-depleting refrigerants
Communication category
Change of garment labelling, encourage customers to reduce reliance on tumble
drying wherever possible and suggestion to wash one-click-down.
Raise awareness and promote energy efficient actions, products and renewableelectricity
Increase the awareness of members on energy efficiency
Promote energy saving light bulbs through different national campaigns andinitiatives
Encourage people to wash clothes at 30 degrees to cut energy use and CO2
emissions. 70 % of clothing products now carry a 'wash at 30' label

The environmental impact of energy consumption should be taken into account when retailers
implement new energy efficiency measures. In this document, there is not only one proposedroute of what best practices should be applied. In a first step, it is recommended to reduce theenergy demand (e.g. reduce heat demand by increasing building insulation). Then, shift to abetter energy use through improved efficiency (e.g. an efficient boiler) should be performed.
The use of cleaner energy sources (e.g. biomass) should be performed after the aforementioned
consumption minimisation. The priority actions and their connection with energy aspects inorder to set energy objectives and targets are shown in Figure 2.3.
Energy Management System

Reduce Energy
Consumption(less consumption)

Conservation of
perishable goods(refrigeration)>

Relevant aspects for retailers>

Priority of actions

Increase Efficiency(better use)

Improved comfort(building and HVAC)>>

Use of Cleaner Energy(better source)

Improved productPresentation(lighting)>…

Local andregionalfactors

Figure 2.3:

Energy objectives and targets

Current
situation

Priority of actions for the energy management system and their connection withthe most relevant aspects of retailers

Best Environmental Management Practice in the Retail Trade Sector

13Chapter 2

Some retailers only apply the most innovative techniques to one or a few 'model' stores. Public
image and reputation make these retailers go for highly visible 'lighthouse' projects. The
environmental relevance of this kind of single model stores is negligible if compared to theoverall performance, i.e. the sum of the results of each store of the group. However, theseprojects can contribute to knowledge and deriving new measures to be systematised. Therefore,a learning process from the lighthouse store results is required.

2.1.3

Scope of this Chapter

In this chapter only those energy elements under the control of the company, i.e. direct aspects
are covered. The focus will be on stores which have the highest energy consumption andemissions. The described best practices for stores are mainly applicable to distribution centres(e.g. buildings and refrigeration). The energy consumption of retailers' transport and logistics is
also high and it is covered in another chapter.
In Europe, the specific energy use of a food store varies from 500 to 1000 kWh per year andsquare metre of sales area. This value is very high if compared to conventional residentialbuildings (150–250 kWh) or office buildings (100– 200 kWh)(8). The differentiated elements ofretail operations in a store involve different aspects of food conservation, marketing of products
and improved comfort. Usually, 75 % of the carbon footprint of a retail-trade company, without
considering the supply chain, comes from the operation of stores, while 20 % comes from thelogistics aspect and only 5 % comes from the operation of distribution centres. This document
mainly covers the energy aspects of stores operation. Figure 2.4 shows a simplified scheme of
the most important elements of the energy management system of stores.
Air Conditioning

STORE

Active generation

Lighting
Energy Management
Ventilation
Refrigeration
Building

Heating

Figure 2.4:

Main energy aspects of store operations

The average share for energy consumption of each element(9), for a food retailer, is:••50 % for food conservation by refrigeration
25 % for lighting( 8 ) The figures for retailers are collected from various sustainability reports. The value for office buildings is collected from
Schlenger, J. Climatic Influences on the Energy Demand of European Office Buildings. Thesis dissertation. University ofDortmund, Dortmund, 2009. The figures for residential buildings were collected from Nemry, F., Uihlein, A. et al., 2008.
Environmental Improvement Potentials of Residential Buildings (IMPRO-Buildings). JRC Scientific and Technical Reports.
EUR 23493.
9( ) Values collected from several retailers sustainability reports and from the Energy Efficiency issue paper of the Retail Forum.

Best Environmental Management Practice in the Retail Trade Sector

14Chapter 2••

20 % for heating, ventilation and air conditioning, HVAC
5 % for electric appliances and others internal processes. This element can varysignificantly from one retailer to another.

For non-food retailers, the map for the energy consumption of a store is not so clear, as many
types of business should be covered. For example, the consumption of appliances in electronics
stores is higher than for other kinds of business, which can be more dependent on lighting, suchas furniture or Do-It-Yourself stores.
Energy consumption is responsible for a considerable environmental impact. This can be easily
corroborated through published carbon footprint reports of retailers. Carrefour, in their 2009sustainability report, calculated the carbon footprint of their operations and the results areshown in Figure 2.5. Also, the emissions of GHG associated with Metro Group (Germany) and
Migros (Switzerland) are shown in Figure 2.6. For Carrefour, leakage of refrigerants has ahigher influence than for other retailers, as the load is higher than for the other retailers. As
shown, the carbon footprint of retail companies is highly dependent on electricity use. Thiseffect is more important for companies with fewer food stores, such as Metro Group. The
influence from heating systems and the used fuel is also quite important.

Logistics
10%

Gas
3%

Fuel
1%

Labs,
15%
Electricity
44%

Air conditioning,
20%
Lighting
20%

Refrigerants
42%

Food
refrigeration
45%

Figure 2.5:

Carbon footprint breakdown of Carrefour activities and disclosure for theemissions associated with electricity

Best Environmental Management Practice in the Retail Trade Sector

15Chapter 2
Heat
7%

a)

Others8%

Logistics
10%

Electricity
63%
Refrigerants
12%

b)
Heat
25%
Electricity
48%

Fuels
6%

Refrigerants
21%

Figure 2.6:

2.1.4

Carbon footprint breakdown of Metro group (a) and Migros (b)Drivers of retailer energy performance improvement

The improvement of energy performance needs a comprehensive view. Retailers in Europe
operate many thousands of stores. Certain measures having a short payback time applied in eachstore can produce huge savings. Figure 2.7 illustrates the huge improvement potential of some
European food retailers. In this figure, the specific energy consumption per square metre ofsales area for several retailers is shown. The data were taken from the last sustainability,
corporate or financial reports of these sampled retailers. The chart does not aim to compare theperformance of different retailers, but gives an idea of what the improvement potential is. Large
European retailers, with a large number of stores and high sales area (represented by the size of
bubbles in Figure 2.7) have the highest improvement potential through applying energy-saving
measures. For them, energy savings, even with the simplest solutions, are huge.

Best Environmental Management Practice in the Retail Trade Sector

16Chapter 2

High improvement potential withhigh associated beneftis

High improvement
potential

2

Specific energy consumption, kWh/m yr

950

850

750

650
Good performance

550
Non-EU
450

Good performance but withhigh associated benefits throughfurther improvement

Low opening hours
350
0

2000

4000

6000

8000

10000

12000

14000

16000

Number of stores

NB: - Specific energy consumption in kWh per m2 sales area and year.
- Each bubble is placed at the average value of the retailer and the size of the bubble
represents the total sales area.

Figure 2.7:

Specific energy consumption vs. number of stores for a sample of food retailers

For medium-size retailers, there is also a huge potential both for the reduction of the energy
consumption and costs savings. A specific energy consumption of about 500–550 kWh/m2yr
can be considered good performance, although the absolute consumption value for someretailers is even lower due to fewer opening hours (less building use) than for typical retailers.
A similar analysis can be performed with specialized non-food retailers. Figure 2.8 shows the
specific energy consumption per square meter of sales area for different sales concepts. The
green and red lines show the average energy consumption, depending on the sales area, derived
from the study for German buildings( 10 ). As shown, specific data for sampled retailers(electronics and Do-It-Yourself concepts) fit perfectly to the German values. The energy
consumption is much lower than for food-retailers, where refrigeration plays a key role.
Nevertheless, there is a huge potential for improvement, as the variability of the data is reallyhigh. From the study of German buildings, average heat consumption is 195 kWh/m2 for nonfood retailers with less than 300 m2, and 105 for those over 300 m2. The potential improvementof these non-food stores is represented by best performance: for example, all IKEA stores in
Switzerland consume less than 40–55 kWh/m2 for heating, as they are certified with theMinergie standard (the value of required heat demand varies depending on if they are new orretrofitted stores).

(10) Arge Benchmark. 'Benchmarks für die Energieeffizienz von Nichtwohngebäuden - Referenzwerte für Energieausweise', Report,
2009. Available at www.arge-benchmark.de

Best Environmental Management Practice in the Retail Trade Sector

17Chapter 2

Figure 2.8:

Specific energy consumption vs. average sales area for several non-food retailers

2

Specific Energy Consumption, kWh/m yr

Small and medium-sized companies have similar energy consumption profiles to large retailers
in terms of specific values (per square metre of sales area). Figure 2.9 shows the disclosure forelectricity and heating consumption for stores of less than 300 m2 from the benchmarking study
aforementioned for German retailers.

400

Electricity

Heating

350
FOOD

300

NON
FOOD

FOOD

250

NON
FOOD

NON
FOOD

FOOD

NON
FOOD

FOOD

200
150
100
50

Figure 2.9:

0
<40 m

2

2

2

40-100 m 100-150 m

150-300 m

2

Specific energy consumption for heating and electricity of small stores (<300 m2)

Results show very high energy consumption for heating, while the relative impact of electricity
consumption is relatively low. The energy consumption for non-food is similar to the energy
consumption of larger retailers, while the energy demand of food retailers is significantly low if
compared to larger companies (see Figure 2.7). This behaviour can be due to less refrigeration
Best Environmental Management Practice in the Retail Trade Sector

18Chapter 2

and lighting load in small stores. Nevertheless, the improvement potential is really high and theenvironmental and economic benefits of energy performance improvement are also high forsmall companies.
An ambitious energy policy to achieve the best energy performance would lead to theimplementation of the best management practices. These practices would improve theenvironmental profile of the company but also other important driving forces have to beconsidered:
•
•
•
•
•
•
•

improved business performance because of less costs and more competitiveness (relevant
for SME)
generated knowledge and expertise to improve insight into energy aspects
synergies with other management systems would be establisheddecision-making process would be improved
better response to future regulations through anticipated actions
better preparation for foreseen energy prices increases and better response to energy
market turbulences (relevant for SME)
better public image and reputation (relevant for SME).

Best Environmental Management Practice in the Retail Trade Sector

19Chapter 2

2.1.5

Techniques portfolio

Best practices are proposed in a 'techniques portfolio' and described in subsequent sections.
Some of them are not single techniques, but they summarise the best available practices for the
improvement of one or more relevant aspects of retailers. The covered areas are buildings,
electricity, warm water and active generation of energy. The information provided in thisdocument has been gathered by different means.
•

•
•
•

Information provided directly by retailers. Relevant European retailers have provided an
important amount of information to develop this document. Some of the provided data
were confidential and the information is presented in an anonymous manner. The
exchange of information has been very significant for this part of the document.
Publicly available information about retailers' initiatives. For example, joint initiatives
such as the Retail Forum or companies' sustainability and financial reports were used.
Existing literature. Relevant existing or ongoing studies in each knowledge topic andpublicly available literature.
Own research. Important conclusions were derived from EC own research activities.

The selection of aspects to be covered in this chapter was made attending to the environmental
relevance of retailers' activities. In addition, current environmental performance of the sector
was taken into account in relation to other sectors. This is the case for building aspects: thecontribution of these aspects to the overall performance is not as significant as for other sectors,
but the detected situation of retailers' buildings requires special attention when making
comparisons with other sectors. There is significance in the order of described practices. The
application of a technique should be considered in accordance with the prioritisation of actions
and aspects (see Figure 2.3). This should be considered in the decision-making process ofretailers, where local and regional circumstances, the starting point and other issues should beconsidered.
The energy efficiency techniques presented in the document for best environmental
management practices are listed below and presented in Table 2.2.
•

•
•
•
•
•

Technology area: four main areas were identified:buildings: the elements associated to retailers' buildings are influencing theperformance of retailers;
electricity, mainly for refrigeration and lighting;warm water: is not as important as other aspects, but good practices relevant forretailer and other sectors were identified;
active generation: the generation of electricity from renewable sources or combined
heat and power systems is comprised here.
Aspect: the energy aspect affected by the technique.
Technique: the formal heading for subsections of section 2.1.6.
Content: a small summary of the contents.
Scope: The applicability to new or existing stores.
Target groups: relevant retailer stakeholders or third parties to whom the chapter isdirected.

Best Environmental Management Practice in the Retail Trade Sector

20Chapter 2
Table 2.2:
Technology
Area

Building

Electricity

Warm water
Activesystems

Energy efficiency techniques portfolio
AspectTechniques

Content

Scope

Envelope

Retrofitting the building envelope for optimal energy
performance

Wall, roof, ground, windows, shading systems,orientation

New and existing
storesDesign premises for new and existing Heating, Ventilation and
Air Conditioning systems

Size, zoning, upgrading, diagnosis, screening,
maintenance of HVAC systems

New and existing
storesUse of integrated design concept

The use of passive house models or concepts inthe design and management of HVAC systems.

New stores

Integrated
approaches

Integration of refrigeration and HVAC

Waste heat recovery from refrigeration. Energy
recovery. Use of sustainable heating systems

New and existing
storesMonitoring

Monitoring of stores in the energy management system

Refrigeration

Efficient refrigeration

Lighting

Efficient lighting

Use of natural lighting. Use of efficient lighting
devices

New and existing
storesOther aspects

Simple secondary measures for reducing energy consumption

The reduction of the energy consumption throughsingle measures are explained: use of high-rated
appliances, setting up energy objectives, training,communication, etc.

New and existing
storesDesigners, environmental (energy)
managers, store managers, consultants,
investors, staff representatives

Solar / Biomass
RenewableenergyCogeneration

Use of alternative energy sources

Efficient integration and optimisation of the input
from RES and other sources.

New and existing
storesDesigners, environmental (energy)
managers, store managers, consultants,
investors, suppliers

Heating,
Ventilation andAir
Conditioning(HVAC)

Best Environmental Management Practice in the Retail Trade Sector

Comprehensive monitoring of energy
consumption of stores for an appropriated energy
management of retailers
Energy saving measures for the refrigeration
system of stores. Simple saving measures,
refrigeration system retrofitting, refrigerant shifts

Existing stores
New and existing
storesTarget groups
Planners, designers, architects, building
owners, environmental (energy)
managers, consultants, investors,
construction companies
Designers, architects, building owners,
environmental (energy) managers,
consultants, investors, HVAC suppliers
Planners, designers, architects, building
owners, environmental (energy)
managers, consultants, investors,
construction companies, HVAC
suppliers
Planners, designers, architects,
environmental (energy) managers,
consultants, investors, construction
companies, HVAC suppliers
Regional managers, store managers,
environmental (energy) managers,
consultants, investors
Designers, environmental (energy)
managers, store managers, consultants,
investors, suppliers
Designers, environmental (energy)
managers, store managers, consultants,
investors

21

Chapter 2

2.1.6

Best environmental management practices

2.1.6.1

Retrofitting the building envelope for optimal energy performance

Description
Nowadays, there is a high awareness about the energy performance of buildings, as they are
responsible for the consumption of 40 % of primary energy in Europe. However, one area ofpoor understanding is how building elements affect energy consumption, and associated cost
implications (WBCSD, 2008). An integrated approach is always needed when a building isbeing retrofitted to increase its energy performance, i.e. to reduce its energy consumption.
Individual actions for building elements will not be effective and will have higher costs thancomprehensive and integrated actions.
The envelope is particularly important for increasing the energy efficiency of a building, as agood envelope minimises the need for heating and cooling power. In Europe, Directive
2010/31/EU on the energy performance of buildings, EPBD, gives a framework for the Member
States to set minimum requirements for new buildings and those undergoing major renovations.
This regulation was adopted on 19 of May of 2010 and is more restrictive than the last one. The
Directive sets the minimum requirements for the energy efficiency aspects in national codes,
where the building envelope plays a very important role.
The building envelope is defined as those integrated elements which separate the building
interior from the outdoor environment. These elements are classified in this document as:••••

insulation system (e.g. walls, façade, roof, floor)
windows/glazing system (e.g. windows with single, double and triple pane)shading devices (e.g. external or internal blinds)
air tightness (e.g. sealing, doors).

The distribution of energy losses throughout the building envelope depends on many different
factors such as climate, quality of construction materials, socio-cultural issues, etc. For
illustrating the energy losses, as an example, Figure 2.10 shows the average heat loss from atypical commercial building in the United Kingdom (Carbon Trust, 2007a).
The energy performance of a building envelope is usually measured by means of the U-value(11). All the building codes in Europe and all over the world have set requirements for U-values
that are legally binding for new and renovated buildings (Laustsen, 2008). In Europe, therequired value usually varies from one climate to another, being more restrictive for northerncountries than for the southern ones. The renovation of a building according to (or going
beyond) certain available standards and requirements allows for the minimisation of energy
consumption. In addition, this approach can be combined with further measures based on an
integrated energy approach looking at a site as a whole, e.g. a supermarket, taking into accountall energy consuming processes and operations as well as all energy producing processes (e.g.
waste heat from refrigeration).

(11) U-value is measured as W/m2K and represents the amount of energy per second that is lost per square meter of element (wall,roof, floor, etc.) and per one degree of temperature difference between the building interior and the outdoor environment.

Best Environmental Management Practice in the Retail Trade Sector

23Chapter 2

Source: (Carbon Trust, 2007a)

Figure 2.10:

Energy losses from a typical UK commercial building through the envelope
elements

As already indicated, an important factor influencing the techniques involved in the
refurbishment of the building envelope is the climate. In Europe, three climatic zones are
considered, depending on the outdoor temperature (Figure 2.11). The division was madeaccording to the number of heating degree days (HDD) (12): Warm zone, up to 2000; Moderatezone, from 2000 to 4000; Cold zone more than 4000.

COLD

MODERATE
COLD

WARM
Source: Boermans, et al., 2006

Figure 2.11:

European climatic zones based on the number of heating degree days

(12) Heating degree days (HDD): number of days when the outdoor temperature is 1 °C lower than 18 °C. If the difference is, e.g. 2°C during one day, the value of HDD would be 2 for that day. So, the general expression for its calculation is HDD = (18–T) ×
t, where t is the time in days. EUROSTAT method for HDD calculates this parameter with the following conditions:– T is the average temperature between maximum and minimum temperature of a day;

– The term (18 – T) is considered to be null when the value of T is 15 °C (heating threshold) or more.
Best Environmental Management Practice in the Retail Trade Sector

24Chapter 2

For the building envelope, a number of techniques can be implemented for retrofitting. A
summary is shown in Table 2.3.

Best Environmental Management Practice in the Retail Trade Sector

25

Chapter 2
Table 2.3:

Techniques for improving the energy efficiency of the building envelope

Envelope element

TechniqueDescription

Change insulation materials

When an existing building is retrofitted, new materials have to be considered toincrease or change the insulation, and in turn save energy. For example, anincrease of 15 cm of mineral wool insulation can save up to 200 kWh/m2 per year
in cold climates (13).

Wall/façade/roof/floor – cellar
ceiling
Techniques to increase theinsulation thickness

Change to more efficient
glazing
Windows / glazing

Change to more efficient
sashes and frames

Shading

External and internal devices

The material thickness is the most important aspect of insulation. Examples oftechniques are: external thermal composite system , cladding with air circulation,
cavity insulation, fixation to inner surface of walls, flat roof exterior insulation,waterproofing layer, insulation of cellar ceiling, crawl spaces for groundinsulation, etc.
Glazing is the use of glass panes assembled into units of two, three, even four inorder to increase its thermal and acoustic insulation properties. A gas (air) or
vacuum fills the gap between two units. Multiple panes can give good insulation
without sacrificing transparency.
Examples of the most common retrofitting actions are:increase in the number of panes (up to four)
low-e coatings
CO2, vacuum or argon filling
Change to materials for frame, sash and other window components: wood (highthermal performance, high cost for maintenance), aluminium and other metals(bad thermal performance, zero cost for maintenance). Vinyl frames (high thermal
performance and zero cost maintenance, but low resistance to heat).
The replacement of metal parts of the frame and the sash is also a good practice,as it produces thermal breaks that improve insulation.
Solar shading devices should allow the control of direct, diffuse and reflectedsolar radiation and glare. They contribute to the energy performance of buildingsby allowing interior exposure to low-angled sun in winter but not in the summer
sun. Sometimes they perform other roles: some blinds can act as thermal barriers
to prevent thermal losses. So, they have a direct influence on the energy
requirements for the heating, cooling and lighting of a building.
Some of the most common external devices are: overhangs, awnings, trees andvegetation, roller shutter, venetian blind, roller blind, etc.
Examples of internal devices are: venetian blind, roller blind, and curtains

References
Petersdorff,
2006.
Carbon Trust
2007a, 2007c,
2007d.
DOE, 2010.
Petersdorff,
2006.
Carbon Trust
2007a, 2007c,
2007d.
DOE, 2010.
Petersdorff,
2006.
Carbon Trust
2007a.
DOE, 2010.
Krigger, 2004.

Petersdorff,
2006.
DOE, 2010.
Krigger, 2004.

EuropeanCommission,
2005.
ESSO, 2006.

(13) Calculated for a model 1000 m2 building with the same U-values as the average requirements in cold countries.

Best Environmental Management Practice in the Retail Trade Sector

26

Chapter 2
Envelope element

Technique

Improvement of doors

Fast acting doors
Air tightness

Sealing

Buffer sections

Orientation

Overall envelope

MaintenanceBest Environmental Management Practice in the Retail Trade Sector

Description
From the energy efficiency point of view, doors are important and generally havethe same problems as portals. The most important measure for the energy
efficiency of doors is to avoid air leakage, which can account for up to 20 % ofbuilding heat loss. Therefore, weather stripping and sealing must be implemented
following examination. For the best performance, doors should be replaced fordoors with more effective insulation (low U-value doors). Storm doors should also
be usedWhen a door has to be used frequently, such as in warehouses, it is usually left
open by the operator. This results in huge losses of energy for heating and cooling.
The use of automated fast-acting doors for customer entrances or rapid rolling
doors can produce great energy savings, especially for SMEs
Air leakages usually originate from window and door frames, lighting fixtures,
ducts penetration, dryer ventilation, plumbing penetration and electrical outlets.
These leakages can account for between 25 % and 40 % of the heating and coolingneeds of a building. Two techniques can be used to reduce the air leakages frombuilding envelope elements: weather stripping (installation of tension seal, felt,
reinforced foams, tape, reinforce vinyl, door sweeps, magnets, tubular rubber,
reinforced silicone, door shoe, etc.) and caulking (silicone, expandable
polyurethane, butyl rubber, etc.)
The use of buffer sections, like a draught lobby for the entrances, reduces theheating and cooling needs of a building, as the rate of exchanging air with theoutdoor environment is minimised. The same can be done for vehicular accesses,
e.g. in warehouse entrances
For optimising the energy performance of a building, the area of glazing andshading has to be maximised for the north and the south façades of the building,while they have to be minimised for the west and east orientations. For the northand south façades, the solar heat gain and the visual transmittance has to be high,while for the west and east façades it has to be low in retailers buildings, as it canbe a source of discomfort for customers due to glare and air conditioning problems
The management techniques related to maintenances are the simplest solutions tosaving energy. Some examples include:
keeping main entrances and windows closed
keeping the blinds opened for using natural light as much as possible
making regular inspections to the construction elements in order to detect signs ofdamage: rips, cracks, gaps, damps, condensation
making regular inspections to the construction elements in order to detect signs ofdamage: rips, cracks, gaps, damps, condensation

References

DOE, 2010.
Krigger, 2004

DOE, 2010.
Krigger, 2004

DOE, 2010

Carbon Trust
2007a, 2005b.

ASHRAE,2008.

ASHRAE,
2008.
Carbon Trust
2007a, 2005b.

27

Chapter 2

The techniques explained in Table 2.3 can be controlled easily for owned buildings. However,many buildings from retailers are not owned by the retailer. Some companies operate in rented
buildings or building units and do not consider the building aspect as an important part of theirenergy management, as it is not under their direct control. Nevertheless, the description of thistechnique is intended to provide the background of what can be done with the retailers' building
envelope, so property owners are also a target group of the document. For retailers, thecontractual relationship with the building owner requires a consideration for the thermal
behaviour of the building, as it affects the user performance (the retailing company). Some key
requirements in the contract are essential, not only to improve energy performance, but also toassure some minimum standards for the indoor environment. Then, it can be considered bestpractice to set up mechanisms within the company to influence owners to achieve demanding
standards, going beyond national regulations, and integrating retrofitting action plans for both
existing and new buildings. For this purpose, indications given in Table 2.3 puts in the hands ofowners (retailer or not) a number of tools to improve their performance, independently of direct
or indirect, sole or shared building control.
The concept of building unit was introduced in the recast of the Energy Performance of
Buildings Directive and means 'a section, floor or apartment within a building which is designed
or altered to be used separately'. With this concept, the directive affects also the application ofminimum requirements for building units, new or those subject to major renovation. Also, theDirective states that any new building or building unit should have an energy performancecertificate if it is sold or rented out to new tenants. This rule will also be applicable to buildings
with a total useful area over 500 m2 (threshold to be lowered to 250 m2 in 2015) when abuilding is frequently visited by the public. This aspect of the Directive will be very relevant toretailing activity, which consists of an important number of sales concepts and where manybuildings and building units are rented and, therefore, the influence on the building envelope
can be really low. Some large retailers, with stronger influence, are key actors, as theirrequirements on building energy performance can help owners to achieve a good building
energy performance and to implement a really high building standard. A very basic
classification of retailers' buildings, attending to their energy consumption profile, is shown
below:
Food retailers: The energy consumption profile of food retailers is characterised by a highdemand of electricity for refrigeration. Three sales concepts are differentiated.
••••

Hypermarkets: with high sales area, low relative refrigeration load compared to foodsupermarkets and in stand-alone buildings, usually owned.
Supermarket: with high refrigeration load, surface from 1000 to 3000 m2, can be instand-alone buildings (usually owned) or building units (usually rented).
Discounters: with average surface less than 1000 m2, in stand-alone buildings (usually
owned) or building units (usually rented).
Convenience stores and others: small stores with refrigeration of food. Building units areusually rented.

Non-food retailers: more heterogeneity is observed for this type of retailers. Attending to energy
management, they can be divided into categories given below.
•••

Large stores: furniture, Do-it-yourself stores, electronics, etc. with more than 5000 m2.
The building is usually owned, although many of them are rented. Influence of these
retailers on the building is usually high.
Commercial centres: integrated by many small specialty stores (in the same building) andwith some large stores for food and other businesses.
Small stores, usually integrated into building units.

The influence of retailers on rented buildings or building units varies a lot and usually depends
on a large number of factors. This would finally benefit the smaller stores in the samecommercial centre or in the same building.

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Chapter 2

Achieved environmental benefit
The energy consumption of stores and thus associated CO2 emissions can be significantly
reduced if the building envelope is retrofitted. Table 2.4 gives examples for heating savings
obtained from the retrofitting of a model market building of 1000 m2.

Table 2.4:

Environmental benefits from some retrofitting packages

Energy savings(1),(kWh/m2yr)

Retrofit packages

Applied techniques

Wall/roof/ground/façade

Increase insulation thickness
Moderate: 65 (h, mb)
to 15 cm of mineral wool
Warm: 50 (h, mb)

Wall/roof/ground/façade

Changes in the insulation
Moderate: 50 (w)– 65 (mw) (h, mb)
material (for 15 cm)
Warm: 44 (w) – 50 (mw) (h, mb)

Cold: 50 (h, mb)

Cold: 40 (w) – 50 (mw) (h, mb)

Cold: 50 (dp) – 90 (tp) (h, mb)
Moderate:30 (dp) – 60 (tp) (h, mb)
Warm: 20 (dp) – 35 (tp) (h, mb)
Changes in wall, roof and Cold: 60-100 (o, mb) (2)Overall envelope
windows of existing buildings, Moderate: 50–130 (o, mb) (2)
Warm: 45-75 (o, mb) (2)see (Boermans et al., 2006)]
Cold: 30(le) – 40(li) (hc, mb)
Moderate:15(li) – 20(le) (hc, mb)
Shading devices
Addition of shading blinds
Warm: 10(hi) – 35(le) (hc, mb)
Weather-stripping, caulking, Reduction of energy consumption by
Air tightness
up to 40 %door improvement(1) Initial situation: U-values for each climate are the average code requirements for each climate.
(2) Initial situation: U-values for each climate are real averages from existing buildings.
NB: h: heating, mb: model building, w: wood, mw: mineral wool, dp: double pane, tp: triple pane, le:external blind with low air permeability, li: internal blind with low permeability, hc: heating andcooling, hi: internal blind with high air permeability, o: overall energy consumption

Windows

Changes in glazing

The use of retrofitting actions of the building envelope, combined with the best practices in theheating, ventilation and air conditioning (HVAC) system can produce great savings, leading to
low values of primary energy consumption for HVAC: <55 kWh/m2yr. For example, several
existing stores of the Swiss retailers Migros and Coop (see reference retailers) have been
refurbished to this value which is laid down in the Swiss Minergie Standard (Swiss Energie,2007). In the case of new buildings, energy consumption is <40 kWh/m2yr. Ikea has 10 stores in
Switzerland, all of them certified with the Minergie standard.
In Switzerland, the Minergie Standard is widely accepted by builders, planners, architects orengineers as it can be met with a high degree of freedom in the design of building structures andthe choice of materials. Economics are also considered within the standard: the budget for acertified new building (or for the renovation) should not exceed more than the 10 % of thetypical cost of a similar uncertified building.
Appropriate environmental indicator
The easiest way to control the environmental impact of the building energy performance is touse, as an indicator, the specific energy consumption for space heating and/or cooling, defined
per unit of sales area and year. This indicator would gather all the techniques involving building
envelope and the HVAC aspects. The indicator should not exclude the renewable energy
consumption. In order to compare different buildings, correction factors with a scientific basis
can be used to calculate the sales area (e.g. height, factors for corridors, stairs). The time of useof the building can differ for different regions across Europe, but it is not recommended tocorrect it unless comparison between buildings is being performed.

Best Environmental Management Practice in the Retail Trade Sector

29Chapter 2

Some retailers control energy consumption in terms of specific consumption of primary energy.
This method allows for controlling the amount of depleted energy resources due to the store
activity and means a much lower consumption if alternative energy sources (such as renewable,
resource heating, etc.) are used.
Technically, the energy performance of the building envelope can be measured in terms of thespecific energy demand for heating, i.e. the amount of energy that the building really needs andmay be corrected as a function of the climate in order to make comparisons among different
buildings. This would be a clear indication of the thermal behaviour of the building, although
the methodology requires modelling work that has to be done by specialised staff. The
performance can also be measured with the U-value (W/m2K) in terms of heat losses or gains
per envelope area and temperature difference of 1K. Also, the indoor air exchange rate, definedas outdoor air uptake (m3/h) per building volume (m3) is also pointed by technicians as a really
good indicator for the thermal behaviour of the building as it affects the heating or coolingneeds of the building.
Cross-media effects
For the building construction and the production of the insulation material, a significant amountof energy is required, but this is usually small compared with the HVAC savings.
Environmental-friendliness of the insulation material has to be considered, although theenvironmental benefit from the achieved energy savings is much higher than the impacts fromthe insulation materials life cycle, as these materials are supposed to have a long lifetime(Nemry, 2008).
Operational data
The techniques addressed in Table 2.3 and others not mentioned in the table, have to be directed
towards reducing the heat transmission losses through walls, roof, cellar, ground floor, windows
and other elements of the building envelope. A warm climate does not negate the energy andeconomic benefits of good insulation. Buildings in Mediterranean countries have higher
heating-energy consumption than similar buildings in Scandinavian countries (Schengler, 2009).
As an example, Table 2.5 shows the typical values for office buildings in different European
locations. The calculation procedure of energy consumption of the building in Table 2.5
excludes the internal processes (refrigeration and others) and only includes the relevant aspectsof the envelope: heating, cooling, lighting and ventilation.

Table 2.5:

Estimated average energy consumption of typical office buildings
City
Oslo
LondonEnergy consumption(kWh/m2yr)
144 (48 % heating)Brussels

122 (30 % heating)
130 (43 % heating)Milan

215 (64 % heating)

Madrid180 (53 % heating)Source: Schlenger, 2009

The values shown in Table 2.5 can be reduced if the proposed refurbishments are performed in
the building. The initial situation is quite different for the three European climatic zones: thecurrent codes in Nordic countries are more restrictive and require lower U-values than inmoderate or warm zones, as their awareness about energy efficiency of buildings is higher. The
low levels of insulation in some Mediterranean countries must be corrected under the newcodes: Table 2.5 shows the example of typical office buildings in Madrid and Milan, where theheating demand is higher than the demand in Oslo.

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Chapter 2

The current U-values of buildings and the existing code requirements are significantly
influenced by climatic conditions, as shown in Table 2.6.

Table 2.6:

Average U-values of existing buildings and code requirements

Wall, W/m2K
Roof, W/m2K

Cold Zone
Existing
Code
0.5
0.17
0.5
0.13

Moderate Zone
Existing
Code
1.5
0.4
1.5
0.25

Warm Zone
Existing
Code
2.6
0.5
3.4
0.4

Ground floor, W/m2K

0.5

1.2

3.4

Element

0.17

0.4

0.5

Source: Boermans, 2006.

Optimisation of the building envelope goes beyond code requirements. This is quite important
for the warm zone of Europe, where the codes have made good progress in relation to existingbuilding practices. Nevertheless, they have not yet progressed to achieve the optimum value forthe minimum energy consumption and minimum life cycle costs (Laustsen, 2008) to achieve thebest energy performance of the building.
Applicability
Although this section is dedicated to the retrofitting of existing buildings, all the coveredmeasures can be applied to all new buildings or building units. All the measures explained in thedescription of this best practice are applicable to any building, new or retrofitted. Tenants
should implement mechanisms to influence owners and should be aware of the importance ofthe building envelope in their environmental performance.
Economics
When a building is going to be retrofitted, it is not only done to improve energy efficiency.
Other elements also have to be changed in order to renovate the installation or fulfil somestandards, like the upgrading of electrical installations and safety devices. The European
Insulation Manufacturers Association has made a very comprehensive study of the insulation
opportunities and has made an economic analysis of the impact of the insulation. The most
relevant results of the retrofitting economy are shown in Table 2.7.

Table 2.7:

Economics of building retrofitting for meeting the codes

Retrofit packages

Applied techniques

Cost(EUR/m2)

Payback time
(yr)

C: 77
C: 25
M: 42
M: 8
W: 32
W: 6
C: 46
C: 14
Roof insulation
Increase in roof insulation
M: 25
M: 4
W: 16
W: 2
C: 133
C: 8
Windows
Change to more efficient glazing
M: 116
M: 14
W: 60
W: 16
C: 145
C: 10
Improvement to meet code
Retrofitting
M: 86
M: 7
requirements
W: 63
W: 4
C: 62 kWh/m2yr (EUR 0.12 / saved kWh)
Overall savings
M: 136 kWh/m2yr (EUR 0.03 / saved kWh)
W: 150 kWh/m2yr (EUR 0.02 / saved kWh)
NB: All the results presented are for coupled refurbishment. C: cold zone. M: moderate zone. W: warm zone. Costs
per saved kWh are calculated only for retrofitting for a depreciation time of 20 years.
Source: Petersdorff, 2006
External wall insulation

Increase in insulation thickness

Best Environmental Management Practice in the Retail Trade Sector

31Chapter 2

The costs shown in Table 2.7 are calculated for retrofitting an existing building to meet thecurrent code requirement (shown in Table 2.6). The costs are always lower for warm zones, as
the requirements are not as high as for colder zones. The increase of thickness of insulation islower for achieving similar savings, and the materials for the warm zones can be cheaper.
Shown values are estimations, while real values are very dependent on individual
circumstances. For example, the low payback times and cost per saved kWh for the warm zone
are due to the assumption of a worse initial energy performance of the building.
Driving force for implementation
The main driving forces are energy savings, cost savings, reduction of CO2 emissions and, incases for major renovations, fulfilment of legal requirements. Environmental credentials, e.g. inthe sustainability report, communicated to retail stakeholders, such as customers andshareholders, can also be an important driving force for the retrofitting of buildings.
Reference retailers
The two Swiss retailers Migros and Coop already retrofitted existing stores according to the
MINERGIE standard (Swiss Energie, 2007). All IKEA stores in Switzerland are also certified
with the Minergie standard. For retailers, this standard sets maximum energy consumption
values of 55 kWh/m2yr (for existing buildings) and 40 kWh/m2yr (for new buildings) for thesum of primary energy consumption of heating, cooling, warm water and basic electricity uses.
This standard gives freedom to architects and engineers for the design of the building, but theenvelope is always a key element. Examples of retrofitted stores are shown in the Minergie
database at www.minergie.ch.
Colruyt, Belgium. This company has established an energy efficiency policy for its stores. This
policy includes the orientation and insulation issues of Colruyt Group buildings. In the case oforientation, they have built a new distribution centre, with south orientation to take advantage ofsolar heat in winter. The freezer section has no contact with external walls and is next to thechilled food section. This policy includes a reference to the insulation materials for the envelopeand shows the importance of this element in the energy performance of stores.
BioPlanet, Belgium. This company belongs to the Colruyt Group. They have established a new
standard for their new supermarkets: the passive supermarket. The requirements for the newbuildings are very similar to those proposed in the German standard (Passivhaus Institute,2007): increase insulation in cellar ceiling, wall and roof obtaining a U-value of 0.15 W/m2K,
increased air tightness, limited ventilation losses and highly insulated windows(U 0.75 W/m2K).
C&A Mainz, Germany. A textiles store was retrofitted to improve the energy efficiency in
Mainz. The first element to retrofit was the building envelope. There was no insulation in thewalls and the roof. The ground floor was already insulated with 5 cm and was not changed. The
new insulation is 14 cm for walls and roof. The windows were changed from single glazing (Uvalue 5.8 W/m2K) to double glazing with 1.4 W/m2K of U-value. The main entrance waschanged from a single air curtain to a draught lobby entrance. There were other importantmeasures in the HVAC system, such as exhaust air heat recovery. Achieved energy savings,
only for heating, are 80 kWh/m2yr: they reduced the consumption from 97 to 17 kWh/m2yr. The
envelope is responsible for approximately 42 % of these savings. Ventilation improvement
saves approximately 45 %. The draught lobby implementation at the main entrances is
responsible for 13 % of savings, so its contribution is remarkably significant. Figure 2.12 shows
this entrance.

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Chapter 2

Figure 2.12:

Draught lobby at C&A Mainz entrance

Reference literature•
Ashrae, Advanced energy design guide for Small Retail Buildings, www.ashrae.org, 2010.
•
Boermans, T., Petersdorff, C. U-values for better performance of buildings,
www.eurima.org, 2006.
•
Carbon Trust, Energy saving techniques to improve the efficiency of building structures.
Report CTV014 Technology Overview, www.carbontrust.co.uk/energy, 2007a.
•
CarbonTrust,
EnergySavingFact
Sheet.
Building
Fabric,www.carbontrust.co.uk/energy, 2005b.
•
Carbon Trust, How to implement cavity wall insulation. How to implement guide
CTL062, www.carbontrust.co.uk/energy, 2007c.
•
Carbon Trust, How to implement roof insulation. How to implement guide CTL064,
www.carbontrust.co.uk/energy, 2007d.
•
European Commission (DG Energy and Transport), Shading Systems. Solar shading for
the European Climates, www.es-so.com, 2005.
•
European Solar Shading Organization (ESSO), Energy Savings and CO2 Reduction
Potential from Solar Shading Systems and Shutters in the EU-25, ESCORP-EU25,
www.es-so.com, 2006.
•
Krigger, J., Dorsi C. 'Residential Energy: Cost savings and Comfort for Existing
Buildings', Chapter 5 in Windows and Doors, Montana, 2004.
•
Laustsen, J., 'Energy Efficiency Requirements in Building Codes, Energy Efficiency
Policies
forNew
Buildings',
IEA
Information
Papers,http://www.iea.org/g8/2008/Building_Codes.pdf, 2008.
•
Nemry, F., Uihlein, A. et al., Environmental Improvement Potentials of Residential
Buildings (IMPRO-Buildings). JRC Scientific and Technical Report EUR 23493, 2008.
•
Passivhaus
Institute.
What
is
a
Passive
House?,
http://www.passiv.de/07_eng/index_e.html, 2007.
•
Petersdorff, C., Cost-effective climate protection, Eurima, www.eurima.org, 2006.
•
Schlenger, J. Climatic influences on the Energy Demand of European Office Buildings,
PhD dissertation, University of Dortmund, Dortmund, 2009.
•
Swiss Energie, The Minergie Standard for Buildings,http://www.minergie.ch, 2007.
•
U.S. Department of Energy (DOE), Window Installation. Storm windows. Window
Treatments and Coverings. Insulation. Types of insulation. Air Sealing. Exterior Doors.
Storm doors, www.energy.gov, 2009.
•
World Business Council for Sustainable Development, WBCSD, Energy Efficiency in
Buildings. Business realities and opportunities, http://www.wbcsd.org, 2008.

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33

Chapter 2

2.1.6.2

Design premises for new and existing Heating, Ventilation and Air
Conditioning systems

Description
The purpose of the heating, ventilation and air conditioning (HVAC) system of a building is toachieve comfortable conditions for the occupants. The main occupants of a retailer building are
the customers. The designer should avoid any source of nuisance for the clients, as it will
negatively impact business. The design substantially changes across Europe, as the heating load
is low in the south of Europe, or the cooling demand is neglected in Nordic countries. Figure
2.13 illustrates the segregation of climates in Europe, where some cities are differentiated withthe cooling degree days (14) and the heating degree days (15) (Schlenger, 2009; Boermans et al.,2006).

Source: (Schlenger, 2009)

Figure 2.13:

Climate classification of European capitals

Each climatic zone would have differentiated HVAC design premises, due to the different
heating or cooling needs and the solar gain achievable in each location. The indoor air quality
requirements also influence the design because of the integration of filters, humidifiers andother devices. The optimisation of thermal behaviour aspects of the building (see Section
2.1.6.1.) should be taken into account in the design. This optimal situation would lead to thelowest energy demand of the building. Nevertheless, it could be really difficult to predict anaccurate value for the energy demand of the building. Also, optimal values would depend onenergy prices and, therefore, solutions for different locations may differ. So, work on efficientenergy modelling should be common practice during design steps. Also, modelling of existingbuildings would allow the manager to set reasonable targets for the energy performance.

(14)Cooling Degree Days (CDD): number of days when the outdoor temperature is 1 °C higher than 10 °C (for the 10 °C basis). If
the difference is, for example, 2 °C during one day, the value of CDD would be 2 for that day. So, the general expression for its
calculation is CDD = (10–T) × t, where t is the time in days.
(15) Heating Degree Days (HDD): number of days when the outdoor temperature is 1 °C lower than 18 °C (for the 18 °C basis). If
the difference is 2 °C during one day, the value of HDD would be 2 for that day. So, the general expression for its calculation is
HDD = (18–T) × t, where t is the time in days.

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Chapter 2

The HVAC consumes up to 50 % of the overall energy needs of average commercial buildings(Retail Forum, 2009; EPA, 2009). When the focus is on retailers, two specific aspects should beconsidered.
••

The high energy demand for the refrigeration systems at food retailers. Here, the reuse ofwaste heat from cooling and refrigeration systems contributes to reduce the heating loadof the building or even to remove it through integration (see Section 2.1.6.4).
Furthermore, 'cool' zones, like corridors where cooling furniture is placed can provoke
HVAC oversizing or uncomfortable areas for customers.
The high energy demand for artificial lighting. It is common practice for improving thepresentation of products. It considerably increases the energy consumption of a store
without natural light sources.

In non-food stores, most of the consumed energy is used to maintain acceptable comfort levels.
Lighting in some stores (garment stores) makes an important contribution to internal heat gain
and can increase the demand for space cooling. This can lead to unusual HVAC designs forsome buildings integrating this kind of stores: in winter, some garment stores need to be cooled,while the rest of the building needs to be heated.
Then, another consequence of bad design is oversizing. An Ashrae (16) calculation for US storesstated that almost 60 % of the energy demand for HVAC is wasted due to oversizing (Ashrae,2008). The main reasons for that are:•••bad insulation and significant air leakages
inefficient monitoring and control system
for warmer climates, heating systems designs are oversized due to higher coolingdemands.

The system oversizing leads to less efficiency. Moreover, poor humidity control, condensation
problems, and poor mixing (stratification of air) are related problems and indoor air quality is
reduced. Thus, since the system is less efficient, costs considerably increase, as the lifetime ofcompressors is reduced and the maintenance needs are higher.
The optimization of the HVAC system comprises a huge amount of individual techniques. To
make a clear description of the main techniques, this chapter has been divided in several
subsections:•••concepts and available techniques to retrofit existing systems
design premises for new buildings
energy management strategies for HVAC systems.

Concepts and available techniques to retrofit existing systems
When designing a new building or renovating an existing one, the optimisation of the HVAC
system has to be considered in an integral approach (LBNL, 2001). The designer should cover,apart from the HVAC elements, the following aspects:••••

envelope aspects for the best performance of the building
potential solar gain: glazing and shading
air leakages avoidance, air entrances (doors, gaps, etc.), air change rate fixing, heatrecovery from exhaust air
lighting system design (using natural sources as much as possible) and avoiding heatgains from lighting(16) ASHRAE: American Society of Heating, Refrigerating and Air-Conditioning Engineers

Best Environmental Management Practice in the Retail Trade Sector

36Chapter 2•••

potential internal gains (from foreseen occupants, from internal appliances, waste heatfrom internal processes, etc.)
monitoring and optimal control (which reduces maintenance and repair), flexible range ofindoor air temperatures (19–26 °C)
purchase and use of efficient HVAC elements.

When an HVAC system is retrofitted, the four aspects given below also have to be covered(LBNL, 2001).
•
•
•

•

System upgrading: to change to modern and efficient equipment, to include zoning
concepts, to improve or change ducts, etc.
Sizing: the oversized HVAC systems have to be optimised; if improvements in thebuilding envelope are introduced, the HVAC system could use considerably less energy,
but it will become oversized.
Integrating systems: the waste heat produced at refrigeration systems can be reused as asource of heat. The waste heat is so significant that stores recovering it are able to workwithout any other heating source (Migros, 2006) (here, the insulating role of the building
envelope is quite relevant).
Avoiding mould and odour: it has to be urgently corrected because it is an unhealthy
situation for customers.

Several aspects have to be measured when the HVAC is retrofitted. For example:
•
•
•
•
•
•
•

duct leakages
air flows at registers
air handler flow
exhaust and supply fan flow
refrigerant charge of the air conditioning systemenvelope leakage
moisture-related aspects (mould and odour):visualisation/odour
electrical inspection for moisture.

In Table 2.8, a checklist of aspects to be measured and controlled in the HVAC system is
proposed. The diagnosis of the building would help designers and architects to decide whatmain aspects should be retrofitted in order to improve the energy efficiency of the HVAC
system.

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37Chapter 2
Table 2.8:

Checklist for aspects and the potential retrofit actions(17)Observation
Duct leakage
Bad duct insulation
Air flows at registers
Low air handler flow
Bad filter condition
Incorrect
thermostat
setting
Spot ventilation
Spot ventilation: highpower consumption
Equipment capacity
Refrigerant charge
Age and condition of
HVAC system
Location of HVAC
system equipment andducts
Window A/C units
Multiple systems/zoning
Moisture testing
Occupant survey - asking
customers to reportproblems

Potential retrofit action
Add seal ducts: aeroseal/tape/mastic
Add insulation to ducts
Replace registers, open/close dampers, reduce system flow resistanceby straightening existing ducts or replacing them with straight runs of
new ducts
Replace filters, fix duct restrictions, change fan speed, replace fan witha high-efficiency unit, add extra returns in return-restricted systems
Replace filter
Raise thermostat in summer and lower it in winter to account for better
distribution, mixing and envelope improvements
Replace fans if necessary. If possible, remove spot ventilation and use
ducts and central ventilation
Replace with a higher efficiency unit, remove/reduce duct flow
restrictions, clean fan and ducting
Replace with correct size
Add/subtract refrigerant
Clean the system and repair damage or replace the system if >15 years
oldSeal and insulate duct locations. If applicable, move system location
Replace with central unit or improved distribution
Ensure correct damper operation, check capacity of each system/zone
load calculation
Improve source control — better venting in sensitive zones, fix
flashing/detailing, seal crawlspaces in high humidity climates, replacewindows, add insulation to walls, floors and ceiling
Create moisture removal strategies; install new windows, change
register type, airflow and location to improve mixing/remove drafts,
add envelope insulation, etc.

Design premises for new buildings
All of the described techniques are always applicable to existing buildings. However, the cost of
retrofitting would be prohibitive for some of them. Therefore the techniques would have to beconsidered from the very beginning of the design process. Several examples for thesetechniques are (Maisey, 2007):•

heating subsysteminstallation of high-efficiency boilers (gas or oil fired 90 % efficient)demand response programmes using smart control, monitoring and automatization
use of ductwork distribution, as it consumes less energy and increases the comfort
and the air quality
recovery of heat from warm water•

ventilation systemmonitoring pressure drops across the filters for replacement and maintenancerecovery of heat from exhaust air•

availability of alternative energy sources:
engine, turbine or fuel cell to produce electricity(17) The techniques involving the building envelope have been discussed in Section 2.1.6.1.

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Chapter 2

absorption chillers
renewable energy sources, CHP, geothermal heat pumps, etc.
•

use of integrative concepts (see Section 2.1.6.3).

Zoning concepts should also be incorporated into the design. The building should be divided
into differentiated thermal zones. The energy use or demand of the different zones can be very
different. These zones have to be distributed in accordance with the building size, loadrequirements, the space layout, function, number of occupants and special needs. The use ofzoning increases energy efficiency, achieving savings of 20–30 % from the HVAC energy
consumption.
Energy management strategies for HVAC systems
The foreseen occupancy of a building is a determinant factor for the optimal design of the
HVAC system. In the case of retailers, where the use of energy is usually governed by therefrigeration and lighting needs, great savings can still be achieved if the demand is controlled
by the occupancy. If only the heating and ventilation devices of the store respond on demand,
10–20 % of the energy use of the store can be saved (Mathews, 2001; EPA, 2009). For example:a theoretical store will have a daily power consumption similar to that shown in Figure 2.14.
Heating and Cooling

Ventilation

Lighting

kW

Refrigeration

0

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
24 hour period

Figure 2.14:

Hypothetical daily consumption of a representative European food retailer store

This figure shows a very basic consumption profile for the most important energy uses:
refrigeration, ventilation, lighting and heating. Refrigeration is always working because of theneed for preserving food products. Night curtains in refrigeration cabinets would allow for
reducing the energy consumption of the refrigeration installation. The heating or coolingdemand is maintained at minimum during the closed hours and some lighting and a minimum
air flow for ventilation is also maintained. No fluctuation is plotted in the Figure, as it is kept
simple to facilitate further explanations. The area under the overall consumption curve is thetotal energy consumption in kWh per day.
Figure 2.15 shows a hypothetical occupancy curve of a store. The occupancy curve can be very
different from one retailer to another, as it depends on many factors: socio-cultural aspects,
regional and local regulations, location of the store, climatic conditions, rural/urban

Best Environmental Management Practice in the Retail Trade Sector

39Chapter 2

surroundings, special opening hours, etc. Figure 2.15 is an example of an occupancy profile of astore.

0

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
24 hour period

Figure 2.15:

Hypothetical occupancy profile of a representative European retailer store

If the heating/air conditioning and ventilation demands are controlled as a function of theoccupancy, the energy profile would probably change from Figure 2.14 to that shown in Figure
2.16.
Heating and Cooling

Ventilation

Lighting

kW

Refrigeration

0

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
24 hour period

Figure 2.16:

Power consumption profile of a representative store where heating and ventilation
are controlled as a function of the occupancy

Finally, we can subtract the areas from Figure 2.14 and Figure 2.16. The energy savings
correspond to the grey area of Figure 2.17, which is 10 % of the total energy demand. This
reduction is obtained only by introducing an on-demand control. No change on the envelope orBest Environmental Management Practice in the Retail Trade Sector

40Chapter 2

heating devices was performed and no leakage was avoided. This result suggests the great
potential of some smart and inexpensive solutions to be applied for energy efficiency.

kW

Non - controlled
HVAC

Controlled HVAC

0

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
24 hour period

Figure 2.17:

Examples of power profiles of a store for non-controlled and controlled HVAC
systems as a function of demand

The use of on-demand control on the ventilation (using, for example, CO2 sensors) would allow
for minimising the energy loss in exhaust air. Some regulations of Member States have highthreshold values and the required air flow is very high and does not allow for achieving anefficient heat recovery. It is also far from the optimal air exchange for occupancy levels. During
the development of this work, some retailers showed their concern about the strong connectionof the air change rate and the space heating or cooling demand.
Achieved environmental benefit
There are some examples of retrofitting existing buildings and new concepts in the design of
new stores integrating all the energy aspects (building, refrigeration, electricity and renewableenergy). Table 2.9 shows several examples for new and retrofitted examples.

Best Environmental Management Practice in the Retail Trade Sector

41

Chapter 2
Table 2.9:

Examples of HVAC integrated approaches for new and existing buildings

Retailer

Migros Centre
Brügg, food +non-food,
retrofitted

Rewe Model
Market, foodstore, newTengelmann
Kimamart, foodstore, retrofitted
Kik Freestand,Textiles Market,
retrofitted
BioPlanet Leuven
design concepts
from Colruyt
Group, new foodstoresLocation

HVAC actions

Other measures

Overall savings(kWh/m2yr)

Brügg, CH

Integration ofwaste heat fromrefrigeration,
monitoring andcontrol,zoning concepts,
recovery of heatfrom exhaust air

Retrofitting of thebuilding envelope,recovery of heat
for warm waterproduction andspace heating24(79 % of heating
demand; it was
performing at 40
kWh/m2yr for
HVAC before
retrofitting)

Daylight
architecture,
improved
envelope (woodmaterials),
photovoltaics
Photovoltaics,
efficient lighting,daylight use

Berlin, DE

Geothermal heatpump

Mülheim an derRuhr, DE

Geothermal heatpump

Gnoien, DE

Central ventilation
with heatrecovery

Building envelope
improvement

Leuven, BE

Heat recovery
from exhaust air,waste heatrecovery fromrefrigeration

Daylight use,
improved
envelope,
optimised coolingunits,
renewable energy
integration

150(42 % of primaryenergy demand,
excludingrefrigeration)
97(30 % of totalenergy demand)
138(52 % of totalenergy demand)
350(estimated 50 %less than otherColruyt stores)

Several conclusions for Europe arising from the described techniques and design premises for
HVAC are given below.
••••

A good insulation means great energy savings for the HVAC system.
The HVAC system tends to be oversized. The design of this element has to be performed
after other thermal elements.
New best solutions for stores integrate all of the elements: envelope, positioning of thebuilding, use of glazing, waste heat from refrigeration, renewable energy, heat pumps,
etc.
Good monitoring, control and energy management is needed. The best management will
avoid oversizing and high maintenance and repair costs and will provide an optimum
indoor air quality.

The energy consumption of several existing stores of the Swiss retailers Migros and Coop and
Ikea stores in Switzerland has been reduced to values lower than 55 kWh/m2yr .This thresholdvalue is laid down in the Swiss Minergie Standard (Swiss Energy, 2007), which is based on theuse of retrofitting actions of the building envelope, combined with the best practices in the
HVAC system. These measures produce great savings, leading to low values of primary energy
consumption for HVAC. In the case of new buildings, the energy consumption has to be<40 kWh/m2yr.
In Switzerland, the Minergie Standard is widely accepted by builders, planners, architects orengineers as it can be met with a high degree of freedom in the design of buildings and thematerials selection. Economics are also considered within the standard: the budget for acertified new building (or for a renovation) should not exceed more than the 10 % of the typicalcost of a similar uncertified building.
Best Environmental Management Practice in the Retail Trade Sector

42Chapter 2

Furthermore, the concept of Passive House applied to retail buildings can considerably reduce
the energy consumption of a retailer. Bio-Planet, from Colruyt Group, has started to use thisconcept for the design of new supermarkets. The concept of Passive House is to provide an
acceptable and even improved indoor environment in terms of indoor air quality at minimum
energy demand and cost (PassiveHaus Institute, 2007). The objective is to improve the thermal
performance of the envelope and keep the heating system very simple. For this purpose, theheating needs of the building should be lower than 15 kWh/m2yr. Moreover, the heating needsof a retailer can be null if the waste heat from the refrigeration cycle is recovered.
Ikea Sweden is also implementing a number of techniques to reduce the energy consumption of
HVAC systems. For example, the use of floors and ceilings for heat transfer in new buildings or
the retrofit of all spotlighting to reduce internal gains.
Appropriate environmental indicator
The easiest way to control the environmental impact of the HVAC system performance is touse, as an indicator, the specific energy consumption for space heating and/or cooling, defined
per unit of sales area and year. This indicator would gather all the techniques involving building
envelope and the HVAC aspects. The indicator should not exclude the renewable energy
consumption. In order to compare different buildings, correction factors with a scientific basis
can be used to calculate the sales area (e.g. height, factors for corridors, stairs, etc.). The time ofuse of the building can differ for different regions across Europe, but it is not recommended tocorrect it unless a comparison between buildings is being performed.
Technically, the energy performance of the HVAC system depends on many factors. One ofthem is the thermal behaviour of the envelope (see Sections 2.1.6.1 and 2.1.6.3). The air
tightness and the ventilation air flow are also very relevant. Therefore, recommended technicalparameters to control are the air exchange rate, air leakages (e.g. as percentage of air uptake)and envelope U-value, among others.
Cross-media effects
The heating needs will be reduced if good insulation is achieved and they can be negligible if
the waste heat from the refrigeration system is recovered (see Section 2.1.6.4). Nevertheless, thecooling needs may increase because of internal gains. In this case, they may not be important as
the overall consumption is usually reduced. This cross-media effect should be carefully studied
for specific cases. If the initial U-value of the envelope is already very low, the energy
consumption reduction may not be as significant as expected. For food retailers, the cool air
from the refrigeration zone can be mixed with the incoming air to reduce the cooling load.
An important cross-media effect to face will be the indoor air quality of the building
environment. The ventilation and air flow systems have to be carefully designed, as the
reduction of air leakages can provoke more humidity and unwanted odours inside the building.

Best Environmental Management Practice in the Retail Trade Sector

43Chapter 2

Operational data
Heating and cooling demand
The calculation of the heating and cooling demand of a building depends on a number of factors
which include:
•
•
•
•
•
•

status of the envelope and its insulating properties
climatic conditions (latitude, humidity, proximity to the sea, etc.)
building use (food store, non-food store, offices, warehouses, etc.)
building occupancy profile (opening hours, use of building during closing hours, etc.)
internal gains and heat recovery systems
temperature control.

Schlenger (2009) calculated the heating and cooling demand for a model office in several
locations across Europe. Taking into account the typical building of each location, the heating
and cooling needs for the office was estimated. The optimisation of the building envelope (wall,roof, shading systems and glazing) led to remarkable results, shown in Figure 2.18. The heating
and cooling demand for three different locations were calculated: Oslo as the cold zone,
Brussels as a moderate zone and Madrid as a warm zone. The heating needs can be drasticallyreduced but the air cooling energy demand can increase. The improved air tightness andinsulating properties of the envelope would lead to a higher influence of the internal and solar
gains. The fact that there would be less heat loss through the building envelope compensates forthe gains and, after the calculation, the cooling needs are very similar to a conventionalsituation. The worst initial scenario of warmer climates leads to great savings (more than 50 %in the case of Madrid). Although the cooling demand can increase, the heating demand of the
optimised building is significantly minimised. For retailers, the use of waste heat from internal
processes, like refrigeration, would lead to zero consumption in these climates.

160

Heating

Cooling

Energy demand, kWh/m 2yr

140
120

40.5

100
80
10.2
19.8

60

95.5
40

13.6
68.6
54.3

20

43.5

19.3

34.2
14

7.3

0

Oslo TypicalFigure 2.18:

Oslo Optimised

BrusselsTypicalBrussels Optimised

Madrid Typical

Madrid Optimised

Energy use in EU locations

Ventilation needs
There are suggestions from some US and European standards (Ashrae, 2008) for retailers
recommending a ventilation air flow of 20–30 m3/h per person. The occupancy profile of thebuilding is a determining factor and it has to be well calculated, as the air flow also has muchinfluence on the heating and cooling systems design. The preferred solution for minimising theBest Environmental Management Practice in the Retail Trade Sector

44Chapter 2energy consumption and the ventilation costs is the demand control unit, as the profile foroccupancy is highly variable.
Ashrae (2008) gives a general design concept for the ventilation system, as shown in Figure
2.19. The design for new stores has to include the possibility of recirculating air (for lower
occupancy) and for heat recovery.

Source: (Ashrae, 2008)
Figure 2.19:

Design example of a ventilation system for retailers

Applicability
The applicability of the techniques for the HVAC system depends on the following factors:••

The status of the building envelope: if there are important heat gains or losses through theenvelope, the retrofitting of the HVAC system will be less effective.
The climate and the outdoor environment; for instance, in cold climates the need forcooling is usually negligible but for the southern countries it is the most important issue.
The orientation of the building and the surroundings are also a key element.

These measures are oriented to existing and new buildings. Some of the concepts for newbuildings, such as the installation of cogeneration plants to replace boilers, heat recovery andPassive House concepts, are usually not applied to existing buildings because of the highinstallation costs. However, there are cases where these systems (or part of them) have been
applied with good environmental results and short payback times.
The differences between different types of retailers may be important for some techniques. For
food retailers, integration with heat recovery from refrigeration is essential to achieve good
performance (see Section 2.1.6.4). Small stores usually depend on external systems (e.g. atcommercial centres), but they should implement mechanisms to detect problems and potential
corrective actions.
Air change rate is also a regulated parameter. The required value can be, in some cases, higher
than the optimal value for the occupancy level.
Economics
Any implemented measures for increasing energy efficiency will always produce cost savings
because of reduced energy consumption. Nevertheless, the achieved results will also depend on
the building envelope. See Section 2.1.6.1 for more information.
Best Environmental Management Practice in the Retail Trade Sector

45

Chapter 2

A simple estimation has been made for the renovation of HVAC systems: one saved kWh
per m2 in a retailer building would produce, for a model 2000 m2 store, EUR 150/yr savings in a
warm climate, EUR 120/yr savings in a moderate climate and EUR 70/yr savings in a cold
climate. Combined with other refurbishments options, this would lead to the savings shown in
Table 2.10 (Petersdorff, 2006).

Table 2.10:

Potential economic savings (estimated) from HVAC system renovation

Savings
fromretrofitting HVAC in a
warm climate(kWh/m2)

Total savings in a2000 m2 model store,
retrofitting HVAC in a
warm climate(EUR/yr)

Savings,
retrofitting
HVAC and envelope
in a warm climate(kWh/m2)

Total savings in a2000 m2 model store,
retrofitting
HVAC
and envelope in a
warm climate(EUR/yr)95

11 200140

1 6520Driving force for implementation
The better environmental performance and the reduced energy consumption would be sufficientgrounds for the implementation of the described measures. Other motivations will also pushretailers to implement energy efficiency measures in the HVAC system: fulfilment of existing
and future regulations, achievement better conditions for clients inside the building, reduction in
the greenhouse gas emissions, etc.
Reference retailers
A number of retailers currently apply techniques to reduce the energy consumption of HVAC
systems. Some of them are:
•
•
•
•
•
•
•
•

Rewe, Germany
Ikea, whole Europe
Colruyt, Belgium
Bio-Planet Leuven, Belgium
Tenglemann, Germany
Lidl, Germany
Migros, Switzerland
Coop, Switzerland

Reference literature•
Ashrae, Advanced energy design guide for Small Retail Building, www.ashrae.org, 2008.
•
Boermans, T., Petersdorff, C., U-values for better performance of buildings,
www.eurima.org, 2006.
•
Environmental Protection Agency, EPA, Retail Store Energy Use Profile,
http://www.epa.gov/rdee, 2009.
•
Lawrence Berkeley National Laboratory, LBNL, Best practices guide for residential
HVAC retrofits, http://ducts.lbl.gov, 2001.
•
Maisey, G.E., Milestone B., Whole Building Design Guide. Optimizing HVAC Life-Cycle
Performance, Building Services Consultants Inc, 2007.
•
Mathews, E.H., 'HVAC control strategies to enhance comfort and minimise energy
usage', Energy and Buildings 33, 2001, pp. 853-863.
•
Migros and Enercom, Migros Centre Brügg Energiekonzept, Personal communication,
2006.
•
Passivhaus
Institute,
What
is
a
Passive
House?,
http://www.passiv.de/07_eng/index_e.html, 2007.
•
Petersdorff, C., Cost-effective climate protection, www.eurima.org, 2006.
Best Environmental Management Practice in the Retail Trade Sector

46

Chapter 2•••

RetailForum,
Issue
Paper
on
EnergyEfficiencyofStores,http://ec.europa.eu/environment/industry/retail/, 2009.
Schlenger, J., Climatic influences on the Energy Demand of European Office Buildings,
PhD dissertation, University of Dortmund, Dortmund, 2009.
Swiss Energie, The Minergie Standard for Buildings, http://www.minergie.ch, 2007.

Best Environmental Management Practice in the Retail Trade Sector

47

Chapter 2

2.1.6.3

Use of integrated design concepts for buildings

Description
Integrative concepts minimise the energy costs of a building, while achieving good thermal andcomfort conditions for the occupants. A good example for this is the Passive House concept. For
this standard, the maximum value of energy consumption for space heating or cooling is 15
kWh/m2yr. So, the heating system is very simple and the approach saves costs if the building
life cycle costs are analysed. Figure 2.20 shows the construction costs (initial investment), theenergy costs during the lifetime and the total costs. In the chart of Figure 2.20, a drop at 15
kWh/m2yr is observed: this point represents the minimum energy cost. Below this value, theconstruction costs would increase due to significant insulation and tightness. If heating demandis higher than 15 kWh/m2yr, the life cycle costs would increase sharply due to the need ofhigher power for the heating system (PassivHaus Institute, 2007).

2

Capitalized costs (€/m )120
TOTAL COSTS

100
80

ENERGY COSTS

60
Passive
House

40

CONSTRUCTION
COSTS

20
0
0

5

10

15

20

25

30

35

40

45

50

2

Heating demand, kWh/m yr

Figure 2.20:

Total costs, energy costs and construction costs vs. building heat demand.
NB: This value should be less than 15 kWh/m2yr for a Passive House (indicated)

The aim of the standard is to provide an improved indoor environment (air quality and thermal
comfort) with the minimum energy demand and cost. The basic idea of a Passive House is toimprove the envelope to a point in which the heating demand becomes very low (Feist et al.,2005). This would lead to the minimum cost reflected in Figure 2.20. Table 2.11 gives an
overview of what other requirements define the Passive House concept and how they can beachieved (Laustsen, 2008).

Table 2.11:

Examples of requirements for integrated design concepts

Requirements

Measure to achieve them

The building heating + cooling demand must be lower
than 15 kWh/m2yr
The specific heat load should be less than 10 W/m2
The building must not leak more air than 0.6 times thehouse volume
Total primary energy demand can not be more than
120 kWh/m2yr

Improved insulation. Recommended U-values less than
0.15 W/m2K
Design without thermal bridges
Windows U-values lower than 0.85 W/m2K
Air tight. Mechanical ventilation with heating
recovery from exhaust air
Innovative heating technology (renewable sources
would account for 0 kWh/m2yr of consumption)

Best Environmental Management Practice in the Retail Trade Sector

49

Chapter 2

The Passive House concept and other integrative approaches can be employed in the design of
any new building for a supermarket or commercial centre. For non-food retailers, it would be
easily applicable, although the internal gains from lighting should be controlled for warmer
periods. When retailers offer refrigerated or frozen goods (meat, dairy products, fish, etc.), theinfluence of in-store processes can be very important. Refrigeration is the main energyconsuming process inside a store and it is responsible for the majority of the environmental
impact of store operations.
For food retailers, the refrigeration process has to be integrated into the whole building concept
and would facilitate the achievement of the main energy objectives. Two approaches are
currently being applied.
•

Bio-Planet, belonging to the Colruyt Group, has planned the first Passive House
supermarket in Belgium. The refrigeration needs are minimised by closing freezers andcreating isolated cold zones. These zones would offer refrigerated products and the accessto the room is made through vertical synthetic strips. The orientation of the cold zones isalso considered in the design: they are in the ground floor at the north side of the building(Colruyt Group, 2009).
Migros, Coop and Ikea are currently applying the Minergie standard in their stores in
Switzerland. They are applying it for new and existing stores. The concept is quite similar
to the Passive House (air tightness, highly insulated buildings, controlled ventilation,etc.), although the requirement is of 40 kWh/m2yr for the HVAC system (55 kWh/m2yr
for retrofitted buildings). The refrigeration is integrated into the energy system of thestore by the measures given below.
Heat recovery from condensing refrigerant (only for food retailers). If therefrigeration load is enough, a store would be able to operate with no extra heating
system.
Closing freezing cabinets and some refrigeration display cases.
Pumping air from the refrigeration section of the store to other warmer zones toachieve a lower temperature in summer. Therefore, no space cooling would beneeded for some climates.
Heat recovery from exhaust air.

•

The integration of lighting is also important for retailers. The use of natural light, to avoid highelectricity consumption, and optimised product illumination would reduce the energy demand.
Less use of artificial lighting would reduce the heat gain of the store, but it can be compensatedfor by the solar gain if natural light is used (see Section 2.1.6.7).
Achieved environmental benefits
The application of restrictive and demanding standards for buildings would allow for thefollowing:••

Reduction in the energy demand and to improve the energy performance.
Help to achieve the targets of the energy policy of the company.

A continuous improvement would be assured if the company includes demanding standards inthe general concept for new stores and the retrofitting of existing stores.
The energy use of a Passive House supermarket is much lower than a similar building
constructed in the conventional way. Bio-Planet, from the Colruyt Group, states that a reductionof 80 % of the primary energy consumption can be reached if it is compared to the European
average. So, the environmental benefit would depend on the basis for comparison.
Appropriate environmental indicator
As already explained for other management practices, the specific energy consumption per
square metre and year seems to be a very relevant indicator for the sector, as many retailers arereporting it. Then, the easiest way to control the environmental impact of the HVAC system
Best Environmental Management Practice in the Retail Trade Sector

50Chapter 2

performance is to disclose the energy consumption for space heating and/or cooling, defined perunit of sales area and year. This indicator would gather all the techniques involving building
envelope and the HVAC aspects. The indicator should not exclude the renewable energy
consumption. In order to compare different buildings, correction factors with a scientific basis
can be used to calculate the sales area (e.g. height, use factors for corridors, stairs, etc.). The
time of use of the building can differ for different regions across Europe, but it is notrecommended to correct it unless comparison between systems is being performed. Two
alternatives can be used: the specific primary energy consumption, with factors from primary to
final defined at national or regional level; or calculate the energy demand of the building
through comprehensive models.
Technically, the thermal behaviour of the envelope (see Sections 2.1.6.1 and 2.1.6.3) iscontrolled by the air tightness, the heat transfer coefficient (U-value) and the ventilation air flow
or air change rate, among others.
Cross-media effects
There are no environmental cross-media effects, as the materials or energy inputs to theintegrative concept is similar to the inputs to a conventional construction method. Air-tightness
is usually very high, so special attention should be paid to the correct design of the Indoor air
quality management system.
Operational data
The three key components of the Passive House standard are the heat consumption(<15 kWh/m2yr), the total primary energy consumption (<120 kWh/m2yr) and the volume
related air leakage at 50 Pa (<0.6 h-1). For the design, some recommendations are given by thestandard developers to fulfil the standard. In Table 2.12, recommended and best practice
examples from existing buildings are provided (Feist et al., 2005).

Table 2.12:

Recommendations and best practices of elements for the Passive House standard

Component

Recommended

Best practice

<0.15

0.05

Thermal bridges
Glazing, U-value, W/m2K

No thermal bridges<0.8

No thermal bridges
0.5

Window framework without
thermal bridge, U-value,
W/m2K

<0.8

0.75

>75

92

<3

<1

<0.45

0.3

Insulation (envelope),
value W/m2K

U-

Exhaust air heat recovery,
efficiency, %Air leakage, %Electricity
demandventilation, W/(m3/h)

forWhen primary energy is evaluated, a factor of almost 3 is given to the electricity supplied fromthe grid. Therefore special attention should be given to the electricity use in the store. The use ofrenewable energy would be a good option, but it is recommended first to reduce the demand andalso increase the efficiency before the implementation of any renewable energy option.
Applicability
Integrative concepts are usually implemented during the design of new buildings. The concept
is partially suitable for existing buildings, as several elements can be integrated without highcosts. The climate can also influence the decision to apply this concept. For example, thePassive House standard was mainly developed by German and Swedish researchers and someBest Environmental Management Practice in the Retail Trade Sector

51

Chapter 2

designers state that the approach is not suitable for warmer Mediterranean countries. But the
PassiveHaus institute made a study on how a Passive House would work in a Mediterraneancountry (Schnieders, 2009). For example, a Passive House in a hot climate (see Figure 2.13)
would save great amounts of energy if a good insulation of the roof is achieved. The
temperature profile during the day would be almost constant and the energy reduction would besignificant.
Economics
Actually, the investment costs of a Passive House building or a Minergie certified one do not
exceed 10–15 % of extra cost compared to a conventional construction. In addition, the life
cycle cost analysis, shown in Figure 2.20, reveals that the Passive House lays at the minimum
life cycle cost, as the heating system is quite simple and the heating power installed is not high.
For more information about costs, see Section 2.1.6.1.
Driving force for implementation
The main driving forces are energy savings, cost savings, reduction of CO2 emissions and, incase of major renovation of buildings, fulfilling of legal requirements. Environmental
credentials communicated to retail stakeholders, such as customers and share holders, can also
be an important driving force, e.g. in the sustainability report.
Reference retailers
The two Swiss retailers Migros and Coop already retrofitted existing stores according to theMinergie standard (Swiss Energie, 2007). All Ikea stores in Switzerland are also certified with
the Minergie standard. For retailers, this standard sets maximum energy consumption values of
55 kWh/m2yr (for existing buildings) and 40 kWh/m2yr (for new buildings) for the sum of
primary energy consumption of heating, cooling, warm water and basic electricity use. This
standard gives freedom to architects and engineers for the design of the building, but theenvelope is always a key element. Examples of retrofitted stores are shown in the Minergie
database at www.minergie.ch.
Bio-Planet, in Belgium, belongs to the Colruyt Group and has established a new standard fortheir new supermarkets: the Passive House supermarket. The requirements for the new buildings
are very similar to those proposed in the standard: increase insulation in cellar ceiling, wall androof obtaining a U-value of 0.15 W/m2K, increased air tightness, limited ventilation losses andhighly insulated windows (U-value 0.75 W/m2K).

Reference literature•
Arge Benchmark, Benchmarks für die Energieeffizienz von Nichtwohngebäuden Referenzwerte für Energieausweise, www.arge-benchmark.de, 2009.
•
Colruyt Group, Sustainable buildings: casus Bio-Planet Leuven, personalcommunications, 2009.
•
Feist, W., Schnieders, J., 'Re-inventing air heating: Convenient and comfortable within
the frame of the Passive House concept', Energy and Buildings, 37, 2005, pp. 1186-1203.
•
Schnieders, J., Passive Houses in the Mediterranean climate, webpage, 2009.
•
Laustsen, J., 'Energy Efficiency Requirements in Building Codes, Energy Efficiency
Policies
forNew
Buildings',
IEA
Information
Papers,http://www.iea.org/g8/2008/Building_Codes.pdf, 2008.
•
Passivhaus
Institute,
What
is
a
Passive
House?,
http://www.passiv.de/07_eng/index_e.html, 2007.
•
Swiss Energie, The Minergie Standard for Buildings, http://www.minergie.ch, 2007.

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Chapter 2

2.1.6.4

Integration of refrigeration and HVAC

Description
The main principle of the refrigeration cycle is the same as for heat pumps. A refrigeration unit
removes heat Q1 from a low temperature source and then transfers heat Q2 to a high temperaturesource using an amount of electrical energy input, W. The performance of the system is usually
measured with the COP coefficient of performance, COP = Q1/W.
The refrigeration of perishable goods in stores is made by means of the vapour compression
cycle. This process consists of four steps.
••••

Evaporation: a liquid refrigerant gets the heat for its evaporation, Q1, from thesurroundings. This heat comes, directly or indirectly, from the goods to be refrigerated orfrozen.
Compression: the refrigerant vapour is compressed. A compression work is needed, W,
usually fed as electricity.
Condensation: the refrigerant is cooled to the saturation temperature and condensed. The
produced heat, Q2, is usually removed to the surroundings by a dry cooler.
Expansion: the subcooled liquid obtained expands in an expansion valve and a mixture ofliquid/vapour is obtained, which is fed again to the evaporation cycle.

The pressure-enthalpy diagram, in Figure 2.21, shows how the cycle works. The continuous
black line represents the L-V equilibrium curve and the intermediate area represents thecoexistence of liquid and vapour phases. The blue line represents the cycle steps.

Q2

pressure

Subcooling Heat
Heat of Condensation Specific Heatnevaporation

Q1

ssio

L+V

pre

L

V

com

expansioncondensation

Heat of Evaporation
Overheat Compression workw

enthalpy
Figure 2.21:

Pressure-enthalpy diagram for a typical refrigerant and vapour-compression cycle

Therefore, four unit processes are needed in a refrigeration cycle: compression, expansion(performed in an expansion valve) and two heat exchangers, one for evaporating (performed in
the display cases) and the other for condensing (usually performed in dry coolers).
The recovery of heat from the refrigerant condensation is currently a common practice inretailers from many countries, like Sweden, Germany, Switzerland, Canada and others (IEA,
2005). The amount of heat is considerably large and it is an attractive resource for space heating
Best Environmental Management Practice in the Retail Trade Sector

53Chapter 2

and warm water production. The heat recovery from the refrigeration cycle would reducesignificantly the primary energy consumption of many stores. This technique can be combinedwith other improvements of the energy efficiency of the building: if better insulation andoptimised HVAC are implemented, the achievable energy and cost savings would be huge.
The integration of waste heat can be very simple. Arias, 2005, described several heat recovery
cases from refrigeration. There are many possibilities for the integration as well as many
configurations of the refrigeration system of a store. Figure 2.22 shows two examples for
integration: a single heat exchanger would produce warm water from 28 °C to 32 °C to preheat
the fresh air supply to the store. If additional heat is needed, an auxiliary heating system (e.g. a
gas boiler), can be installed for the coldest period. The way the integration is performed canvary depending on the type of refrigerant, refrigeration cycle, indoor and outdoor temperatures,etc.

Source: Arias, 2005
Figure 2.22:

Two examples of heat recovery integration with the auxiliary heating for stores

The design of refrigeration systems and the design of HVAC systems usually are not performedby the same engineering company and tend to be very independent in their performance for thesame store. In these cases, the integration of both systems can lead to low efficiency reductionof the compressors and to the oversizing of HVAC installations, increasing compressors
working hours and increasing maintenance costs. The integration design of heat recovery shouldtake into account all the processes demanding energy for heating or cooling, in which theenvelope has a high influence, and according to the best overall efficiency.
One important drawback of heat recovery is related to the condensation temperature, which has
to be kept at a level, in which heat can be transferred to store, e.g. 38 °C. This would lead tohigher energy consumption of compressors. Although the balance is always positive if
compared to overall savings, the coefficient of performance, COP, can be decreased
substantially (EFBPP, 2000). Figure 2.23 shows how the COP is affected by condensing andevaporation temperature. The use of heat pumps is a good option for recovering the refrigeration
waste heat in building space heating. This would allow for optimising the coefficient of
performance, as there is no need for increasing the condensing temperature.

Best Environmental Management Practice in the Retail Trade Sector

54Chapter 2

COP

T2 Condensing
temperature

T1 Condensing
temperature

T1>T2
Evaporating temperature
Source EFBPP, 2000
Figure 2.23:

Coefficient of performance vs. evaporating temperature and condensing
temperature of the refrigeration cycle

A boiler or other techniques should be used if the amount of heat recovered from therefrigeration cycle is not enough to meet the heat demand. This would depend on the climaticconditions and on the building performance. Some retailers produce more heat than needed andthey sell the excess heat to closest stores or to a district heating system.
As explained, heat recovery integration can be performed in many different ways. For
illustrating the energy flow, four generic Sankey diagrams are proposed. They represent four
possible cases for a food retailer building.
••••Case A, Figure 2.24. No integration of heat is performed. The needed heat is obtained
from a fossil fuel boiler; the extra heat from refrigeration is removed by a condensing unit
placed on roof. The envelope is responsible for an important amount of heat loss.
Case B, Figure 2.25. Heat from the refrigeration cycle is recovered, but the envelope is
not improved and extra heat is still needed from fossil fuels.
Case C, Figure 2.26. Heat from refrigeration cycle is recovered and the building envelope
is improved to the point where no additional fossil fuel for heat is needed.
Case D, Figure 2.27. Heat from refrigeration cycle is recovered and the building envelope
is improved to fulfil the most demanding standards. Therefore, extra heat is possibly
produced.

Best Environmental Management Practice in the Retail Trade Sector

55

Chapter 2
Waste heat fromrefrigeration cycle

Heat content of refrigerant after exchange in cabinets
Solar
Gain

Other heat losses

Internal
Gains

HVAC

EAHR*

Heat demand

Electricity demand
for refrigeration

Refrigeration
systemElectricity appliances and lighting

Heat loss, exhaust air

Heat loss, building envelope
Warm Water

Building Envelope

Heat demand from fossil fuels

NB: EAHR: Exhaust Air Heat Recovery

Figure 2.24:

Energy flow diagram (Sankey diagram) of a food retailer operation – Case A: No
heat recovery, no envelope improvement

Unrecovered heat fromrefrigeration cycle

Heat content of refrigerant after exchange in cabinets
Solar
Gain

Other heat losses

Internal
Gains

RecoveredHeat from refr.
cycle

HVAC

EAHR

Heat demand

Electricity demand
for refrigeration

Refrigeration
systemElectricity appliances and lighting
Heat loss, exhaust air

Heat loss, building envelope
Warm Water

Heat demand from fossil fuels

Building Envelope

NB: EAHR: Exhaust Air Heat Recovery

Figure 2.25:

Energy flow diagram (Sankey diagram) of a food retailer operation – Case B:
Refrigeration heat recovery, no envelope improvement

Best Environmental Management Practice in the Retail Trade Sector

56

Chapter 2
Unrecovered heat fromrefrigeration cycle

Heat content of refrigerant after exchange in cabinets
Solar
Gain

Other heat losses

Internal
Gains

Refrigeration
systemElectricity demand
for refrigeration

HVAC

RecoveredHeat from refr.
cycle

EAHR

Heat demand

Electricity appliances and lighting

Heat loss, exhaust air
Heat loss, building envelope
Warm Water

Building Envelope

NB: EAHR: Exhaust Air Heat Recovery

Figure 2.26:

Energy flow diagram (Sankey diagram) of a food retailer operation – Case C:
Refrigeration heat recovery, optimised envelope

Unrecovered heat fromrefrigeration cycle

Heat content of refrigerant after exchange in cabinets
Solar
Gain

Electricity demand
for refrigeration

Refrigeration
systemHVAC
RecoveredHeat from refr.
cycle

EAHR

Electricity appliances and lighting

Heat demandInternal
Gains

Other heat losses

Heat loss, exhaust air
Heat loss, building envelope
Warm Water

Produced Heat

Building Envelope

NB: EAHR: Exhaust Air Heat Recovery

Figure 2.27:

Energy flow diagram (Sankey diagram) of a food retailer operation – Case D:
Refrigeration heat recovery, high insulated envelope and heat delivery to district
heating

Less energy consumption would take place in cases C and D, where the improved building
envelope plays an important role in minimising the heat loss of the building (see Section
2.1.6.1). As shown for case D, if the management is well performed, a food store can provide
heat to building units or can feed a district heating installation. The energy input of cases A and
B are higher than C and D because heat losses are minimised in better buildings and the heat
content of exhaust air is also minimised. When a building is well insulated and air-tight, a good
design of the ventilation system is required as moisture, odours and other problems with theBest Environmental Management Practice in the Retail Trade Sector

57

Chapter 2

indoor air quality can arise. As an example of the application of the different levels of
integration (cases A, B, C and D), Figure 2.28 shows the results of the operation of more than
100 stores from a retailer in central Europe. This data represents the real performance of theretailer and it shows the different levels of application of heat recovery integration in thebuildings. Best cases, C and D, represent more than 50 % of the stores. More than 40 % ofstores produce heat to be sold to other buildings and more than 50 % do not need any extra
heating system.

Specific HEATING consumption, kWh/m2yr

The retailer of Figure 2.28 is really one of the best performers in heat integration in Europe andit shows what results are achievable through the implementation of integration during the last 20
years.
Case ANo Heat Recovery

400
Case DHeat recovery and heatproduction

300
200

Case C
Heat
recovery
without
boilerCase B
Heat recovery with fossil fuelboiler

100
0
-100
-200
-300
-400
0%

20%

40%

60%

80%

100%

NB: Negative values of the curve stand for produced heat to be sold outside

Figure 2.28:

Store-specific heat consumption vs. cumulative frequency for a good performer

It is not the objective of this document to propose a unique solution or only one integration
scheme. Such integration should be studied with caution and it will depend on the particular
circumstances of the store and/or the retailer. The measures explained here should be taken into
account for new or existing buildings and the operation of these systems would have different
results depending on different factors.
•••

Building size and use: big retailers' stores are usually not alone in their buildings. So, the'neighbourhood' (e.g. small shops in a commercial centre) is a potential consumer of theexcess heat. As a general rule, a food store with a typical refrigeration load and an
optimised envelope would recover enough energy to heat twice its own surface.
HVAC design and maintenance: all the elements of the HVAC system should be correctly
designed and maintained. Exhaust air heat recovery, on-demand control of ventilation
with CO2 sensors and monitoring of air tightness and indoor air quality are strongly
recommended techniques.
Refrigeration system design: the amount of display cases inside a store varies a lot anddepends on many factors: logistics, marketing, climate conditions, traditions, customers
profile, etc. As an example, Figure 2.29 shows the trend lines of the specific length ofdisplay cases (per m2 of sales area) and the consumption of the refrigeration system for a
middle-Europe retailer. It can be deduced from the chart that small stores use moreBest Environmental Management Practice in the Retail Trade Sector

58Chapter 2

display cases and use more electricity per metre of display case. So, small stores offer
more refrigerated products and the efficiency for refrigeration is lower. There are several
reasons for this: the use of plug-in cabinets reduces energy efficiency, the improved
logistics make the amount of frozen food higher than for big stores, the costs for heatrecovery has longer payback times, etc. Therefore, the initial investment is not attractive
for the store and a loss of efficiency is preferred by the retailer for economic reasons.
0.14

5800
0.12
5600
0.1

5400
5200

0.08

5000
0.06

4800
4600

0.04

4400
0.02
4200
4000

Specific length of display cases, m/m2

Refrigeration consumption, kWh/m yr

6000

0

0

1000

2000

3000

4000

5000

Sales Area, m2

Figure 2.29:

Specific length of display cases and energy consumption for refrigeration vs. sales
area

Achieved environmental benefits
The number of refrigeration cycles possibilities and the number of ways to combine it with the
HVAC system are almost infinite. Some retailers have provided, for this document, several dataon how these integrated systems work and the environmental benefits that arise from their use.
For illustrating the environmental benefits, the achievements of individual examples are notshown. It is preferable to show the cumulative curve of the specific heating consumption of
three groups of stores, in Figure 2.30.
•••

Purple line, 'German retailers'. A benchmarking study for the German regulation EnEv
2009, performed by Arge Benchmark and publicly available, provides the behaviour ofmany different types of non-residential buildings in Germany. The curve shown in Figure
9 is the one for food retailers with a sales area of over 300 m2, with more than 200 stores.
Blue line, 'good performer'. This cumulative curve shows the results for more than 200
stores of a middle-Europe company regional division. They recover heat with goodenvelopes and a good HVAC management in some stores.
Red line, 'best performer'. This curve shows the results of more than 100 stores of anothermiddle-Europe company regional division. They recover waste heat from the refrigeration
cycle; they have optimised buildings and good HVAC management in many of thesampled stores. The negative values stand for produced heat, i.e., sold heat to nearbybuildings.

Best Environmental Management Practice in the Retail Trade Sector

59Specific HEATING consumption, kWh/m2yr

Chapter 2

600

400
GERMAN RETAILERS
GOOD PERFORMER

200

0BEST PERFORMER

-200

-400

0%

20%

40%

60%

80%

NB: - 240 German stores (),- a sample of 221 stores of a middle-Europe retailer (),- 105 stores of the regional division of other middle-Europe retailer (Figure 2.30:

100%

).

Specific heating consumption vs. cumulative frequency

Figure 2.30 also shows what the evolution of a good energy management of a retailer would
look like. German retailers can be considered as the average behaviour, where few measures forheat recovery are implemented. The awareness for recovering heat and integrating the different
elements of the building is undoubtedly growing, although it is a slow process and there are too
many different approaches. 'Lighthouse' projects, as model stores, are frequently built. The mostadvanced techniques are all together in this model store. The cost for this approach is extremely
high and the environmental benefit is insufficient for the overall performance of the company.
So, the whole concept of a 'lighthouse' project store can not be considered as best management
practice, although the techniques used to build it can be individually considered best practice.
When a retailer has decided to establish a standard of heat integration in all its stores, it will
establish first a concept for the new buildings and a procedure to integrate such a system when astore is retrofitted. In few years, the overall performance will be increased and the specificheating consumption can be reduced to the level of the blue line of the chart. Here, the company
can be considered a good performer: it reduces the energy consumption actively from year toyear. There is still a wide gap for improvement but it will be covered because of a continuous
improvement policy.
The company would have learnt from its own experience and would have increased the speed of
improvement. Then, results would be similar to the red curve of Figure 2.30. This curve
represents the energy profile of a company that started to apply the integration concepts in many
stores in the 1990-2000 decade. The amount of saved energy and, therefore, saved costs arehuge. In addition, the speed of amortisation is highly increased when they produce heat to be
sold to their neighbours' buildings. Therefore, the negative part of the red curve does not
represent cost savings but sales.
Evaluated in a quantitative manner, the average difference between German retailers ('normal
performer') and the best performer is about 110 kWh/m2yr. So, if a division of 150 stores of a'normal performer' applies the heat integration, the savings would be of 16.6 GWh for thedivision (taking 1000 m2 as the average area). If savings are assumed for natural gas, 3 800 t
Best Environmental Management Practice in the Retail Trade Sector

60Chapter 2

CO2 are not emitted. In specific terms, 25 kg of CO2 per square metre of sales area and year are
saved. This approach would produce the same results per store than the typical low-energy store
of 'lighthouse' projects. So, it is worth noting the following.
•••

While the payback time of some low energy stores is usually quite long, the single
measures proposed for a group of stores have significantly better economic behaviour.
The economic response to sharp increases of energy tariffs is definitely better when anumber a number of stores have been optimised and not when only one is saving energy.
The generated knowledge also means benefits for the company. This usually takes placewhen improving an important number of stores. In the case of low or zero energy stores,
the design, construction and maintenance is usually subcontracted with third parties andthe gained knowledge is sometimes very limited.

When integrating the heat from the refrigeration cycle in the HVAC system of a building in a'standard' food retailer, the objective, if possible, has to be to eliminate the energy consumption
for heating. So, provided certain conditions are met, a food retailer store can eliminate theprimary energy consumption for heating. Of course, it will depend on many factors, which are
analysed in the 'Applicability' section.
The energy management system of a retailer has also to establish the target for each store. The
monitoring system has to be comprehensive enough for the manager to propose targets andbenchmarks, detect good practices and potential bad practices. More information about thisissue is included the monitoring section (see Section 2.1.6.5).
Appropriate environmental indicator
As already explained for other management practices, the specific energy consumption per
square metre and year seems to be a very relevant indicator for the sector, as many retailers arereporting this indicator. It is recommended to disclose the indicator for space heating and/or
cooling, defined per unit of sales area and year. This indicator would gather all the techniques
involving building envelope and the HVAC aspects and the heat recovered from refrigeration.
Also, the energy savings or the produced heat from refrigeration per square metre and year
would give an understandable indication of the environmental impact of heat integration.
Cross-media effects
There are no significant effects on other environmental aspects when a store is retrofitted tointegrate heat recovery. Technically, an important issue to face during the design will be theIndoor Air Quality (IAQ) of the building. The ventilation system has to be carefully designed,
as the reduction of air leakages can provoke more humidity and unwanted odours inside thebuilding. Under-demand control with CO2 sensors is strongly recommended.
Retrofitting actions in the refrigeration system, e.g. change of refrigerant, change of machinery,etc., would affect the energy flow of the system. For example, there is a significant impact whenchanging to a more efficient system, in which case less heat would be recoverable.
Operational data
Figure 2.31 shows a diagram about how the integration is performed in a concrete example. It
would correspond to 'Case B' of the Sankey diagrams, shown in Figure 2.25. The
implementation of these techniques as the standardized heating system is not trivial and takes a
lot of effort. System planning, monitoring and management have to be optimised while training
and awareness of workers is also a key issue.

Best Environmental Management Practice in the Retail Trade Sector

61Chapter 2

CW

Fuel

Fuel

Gas
Boiler

Oil
BoilerHeat
recoveryCW

fromrefrigeration

CW

70/500C
Water line

Warm
Water
Tank

37/270C
Water line

CW
Warehouse
HeatingAir
heating

CW

HX

HX

StaticHeating
BoilerCW

CW: Cooling Water
WW: Warm Water
HX: Heat Exchanger

WW, 600C

Preboiler

HX
CW

Figure 2.31:

Integration of the recovered heat from the refrigeration cycle into the HVAC
systemThe heat recovered from the refrigeration cycle is used to produce warm water (for domestic
and sanitary use).Part of the water is used to produce 37 °C water, which is employed as theheating fluid for the warehouse, air supply and the static heating systems. If the heat provided
by the refrigeration cycle is not enough (as the case for large hypermarkets), a system of twonatural gas boilers is used to provide the rest of the heat demand.
Figure 2.32 shows the heating power needed as a function of the outdoor temperature for the
integrated installation of Figure 2.31. Fossil fuel boilers operate when the ambient temperature
is lower than 1.5ºC. In Figure 2.32, this temperature is represented by the intersection point of
the recovered heat line with the heating needs curve. The improved insulation of the building
results in space heating needs of zero when the ambient temperature is higher than 10 ºC. Under
these conditions, the required heat is gained from internal processes and is supplied by theventilation system.

Best Environmental Management Practice in the Retail Trade Sector

62Chapter 2

Recovered heat from refrigeration

700

500

Fuel not needed

Use of fuelHeat Demand, kW

600

Heating Needs
Amount of heat demand covered withrecovered heat from refrigeration
Heat for Warm Water

400

1.50C
300

200

100

-10

0

5

10

15

Ambient Temperature, 0C
Figure 2.32:

Heat demand vs. ambient temperature for an integration scheme example

Applicability
To apply this technique, specific for food retailers, important factors are given below.
•

•

•

•

The refrigeration load. As explained, smaller stores offer more refrigerated goods per
square metre of sales area and the efficiency in refrigeration is lower (see Figure 2.29). In
addition, the trend to increase the refrigerated goods is also important. The size of thestore does not influence the technical applicability of integrated approaches, but the costefficiency of the whole system is lower for small stores.
Climatic conditions. In cold climates, the load for refrigeration is lower than for warmer
regions. At the same time, the heat demand of northern European buildings is high, so theintegration would depend on the quality of the building envelope. For the warmest
climates, e.g. Mediterranean countries of Europe, the cooling demand can be very
relevant and the air tightness of the building can make the internal gains to be very high.
An optimised ventilation design is, therefore, necessary. Mechanical cooling at night andvariable indoor temperature (e.g. 21–26 °C) are also recommended techniques.
Ambient temperature. In the integration of the refrigeration cycle, there is a limit ambient
temperature, which depends on the system design, where the waste heat generation rate is
not enough to keep a comfortable temperature inside the buildings. An extra heating
source may be needed but this again depends on the building envelope.
Building ownership. Many stores are integrated in a residential or commercial building,which belongs to a third party. Better integration of heat recovery, therefore, must involve
owners.

Economics
For new stores, the extra initial investment for the integration of heat recovery is not higher than
10 % of the conventional installation costs. The payback time is about 4 to 5 years. For thiscalculation, the conventional construction costs have to be estimated on the basis of fulfilling
the requirements of national codes for the building. When a building is retrofitted, cost-savings
depend on many factors, but especially on the initial state of the building, i.e., what amount ofenergy can be saved.

Best Environmental Management Practice in the Retail Trade Sector

63Chapter 2

As an example, Table 2.13 shows the elements of the cost balance to perform an estimation of
the payback time for a retrofitting scenario and the ratio investment per kWh saving. The periodof time for this last parameter is the depreciation time: 20 years assumed for the building and 10
for the heating system. These periods are usually longer, so the calculated values of investment
per saved kWh can be smaller.

Table 2.13:

Example of payback time calculation procedure for the integration of heatrecovery in a retailer building with improvement of the building envelope
Element

Value

Unit

Sales Area, A

2 000

m2s.a.

Envelope Area, AE

2 900

m2 e.a.

Retrofitting cost, CR

75

EUR / m2 e.a.

217 500

EUR

100 000

EUR

Energy savings, Es

250

kWh / m2 s.a.yr

Energy costs, CE

0.08

EUR/kWh

Costs savings,
CS = CE x Es xA

40 000EUR/yrPayback time,
tpb = (IE + II) / CS

7.9

yr

Payback time, only for integration (rationale
not shown)

6.3

yr

0.086

EUR / saved
kWh

0.05

EUR / saved
kWh

Investment for the envelope,
IE = AE x CR
(depreciation de = 20 yr)
Investment for the HVAC and integration,
II (estimated)(depreciation di = 10 yr)

Investment per kWh saved (integrated
approach)IE
II+
A E s 0.60 d e A E s 0.40 d i
Investment per kWh saved (only heatrecovery )II
A E s 0.40 d i

In the estimation shown in Table 2.13, apart from the achieved savings, results are reallysensitive to envelope retrofitting costs. A set of values for this parameter, collected from thereferences (Petersdorff, 2006) is shown in Section 2.1.6.1. The investment in the building
envelope would be lower per kWh saved in its depreciation time than for the heating system.
Expressions in Table 2.13 can be used to calculate this parameter for shorter periods.
Other factors are also important and, therefore, the economic results can vary a lot from one
retailer to another. Figure 2.33 shows how the costs for the integration of waste heat fromrefrigeration, HVAC and building envelope retrofitting would vary with the potential energy

Best Environmental Management Practice in the Retail Trade Sector

64Chapter 2savings. Two scenarios for energy prices and retrofitting costs are assumed as examples, so four
curves are obtained.
EUR 100 /m2, current energy price

EUR100 /m2, 20% increase in energy priceEUR 50/m2, current energy priceEUR 50/m2, 20% increase of energy price

14

Payback time (yr)12Tendency if:- Increase of energy
price- Decrease of Heating
Degree Days
(climatic condition)- Decrease of Materials
price- Better initial situationof the store

10
8
6
4
2
0
100

200

300

400

500

600

700

Energy savings, kWh/m2yr

Figure 2.33:

Payback time vs. energy savings for different scenarios of heating-refrigeration
integration

As shown in Figure 2.33, future trends would reduce the payback time continuously. The energy
price is going to increase in coming years and the price of insulation materials is decreasing as aconsequence of the higher competitiveness in the sector.
Although there are strong reasons to save energy, such as the reduction of CO2 emissions andthe avoidance of resources depletion, the integration of heat from the refrigeration cycle hassignificant economic benefits for retailers. As an example, the estimation of payback time for
the German retailers on heating consumption is shown in Figure 2.34. This chart shows the two
payback time curves for the investment needed to fulfil the benchmark (0 kWh/m2yr or no
consumption for heating).

Best Environmental Management Practice in the Retail Trade Sector

65Chapter 2

15

400

12

300

9

200

6
GERMAN RETAILERS

100

Payback time, yr

EUR 50/m2, 20% increase of energy price2

kWh/m yrSpecific Heating Consumption,

EUR 50 /m2, current energy price"

500

3

0

0
1%

10%

20% 30%40%

50% 60%70%

80% 90% 100%

Cumulative frecuency
NB: cumulative curve

Figure 2.34:

Specific heating consumption of German retailers and the associated payback timeassociated if the proposed benchmark is achieved

Driving force for implementation
The better environmental performance and the reduced energy consumption would be sufficientgrounds for the implementation of the described measures as they are economically attractive
and would ensure a better response to hypothetical future energy crises. Other motivations will
also push retailers to implement energy efficiency measures in the HVAC system: fulfilling ofexisting and future regulations, achieving better conditions for clients inside the building,
reducing the greenhouse gases emissions footprint of the retailer, etc.
Reference retailers
There are important retailers who have a strong commitment to improving their energy
efficiency through the integration of heating and refrigeration. Some of them have developed
technically sound concepts, not only for new but also for existing stores. Concepts from Lidl,
Rewe, Migros and Coop are examples of these integration practices.
Reference literature•
Arge Benchmark, Benchmarks für die Energieeffizienz von Nichtwohngebäuden Referenzwerte für Energieausweise, www.arge-benchmark.de, 2009.
•
Arias, J., Energy Usage in Supermarkets – Modelling and Field Measurements, PhD
dissertation, Royal Institute of Technology Stockholm, 2005.
•
Energy Efficiency, Best Practice Programme, EFBPP, Energy efficient refrigeration
technology – the fundamentals. Good Practice Guide 280, www.hysave.com, 2000.
•
International Energy Agency, Advanced Supermarket Refrigeration/Heat Recovery
Systems (annex 26), www.ornl.gov, 2005.
•
Petersdorff, C., Cost-effective climate protection, www.eurima.org, 2006.

Best Environmental Management Practice in the Retail Trade Sector

66Chapter 2

2.1.6.5

Monitoring of stores in the energy management system

Description
The energy management system of a company, as well as the environmental management
system, are Plan-Do-Check-Act (PDCA) processes (Figure 2.2), which have to be integrated
into the business structure and have to produce energy and costs savings through a continuous
improvement cycle. There are standards (EN 16001:2009 and the next ISO 50001) on how tointegrate the energy management system in a company. These standards are based on the
structure of ISO 9001 or 14001 and they are quite connected. Nevertheless, they do not give any
absolute requirement nor do they guarantee an optimal performance (SEI, 2009).
An effective management system of a retailer, usually operating many stores, should be divided
into:
•
•
•
•

plan: establish targets, objectives, fulfil regulations
do: establish energy policy, involve and train employees, measure and monitor energy
performancecheck: control of deviations, corrective actions, audits, benchmarking
act: management review, reporting, review targets, objectives.

For a retailer, one of the most sensitive parts of management is the monitoring. Many retailers
in Europe are multi-site companies, with many branches or subsidiary companies which are
difficult to monitor if there is not a strong commitment and effort from the top management, a
training process of the employees and enough allocated resources. The best way to optimise themonitoring of the energy consumption of hundreds or thousands of stores is to integrate theenergy and the environmental aspects into the business structure for control and reporting.
The application of energy saving measures to a number of stores requires a good management,
as many resources have to be mobilised. In addition, a good monitoring system is required andcontrols all the performance indicators of all stores. Except for special energy uses, it is notenough to monitor only a part of the stores. Data collection is a task of the environmental
management system that allows the company to (Carbon Trust, 2009a):••••

detect avoidable energy wastes (undetectable in a simpler way);quantify the savings achieved by the implemented techniques or practices;
identify the aspects of the company where a special effort should be made to save energy;
increase knowledge of the company, increase awareness, establish targets and undertake
benchmarking.

Monitoring alone does not producing energy savings. The dynamic behaviour of retailers,learning from the monitoring system, can produce great energy savings by an active
benchmarking activity and by applying efficient techniques. The basic aspects measured by acentral energy monitoring system are shown in the tables indicated below:•••

In Table 2.14, a set of variables for monitoring energy resources is proposed. Fourdifferent categories are recommended: renewable (consumed or produced), fossil, mix
and recovered.
In Table 2.15, a set of variables for monitoring the processes consuming energy inside astore is proposed. The subcategories are: building, HVAC, lighting, refrigeration andothers.
In Table 2.16, several energy-related aspects which have to be covered are shown.
Proposed subcategories are: climatic conditions, incidents, perishable food and buildinguse.

In total, 35 parameters are proposed. A number for each category is given and a letter isassigned to the measured parameters. For example, 2b is category 2, store operation parameters
Best Environmental Management Practice in the Retail Trade Sector

67Chapter 2

is category b, Warm Water Generation. The period of time to measure each parameter can bedifferent. For example, the lighting system can be controlled every day by an online system,
while space heating or cooling are seasonal parameters. Other parameters only change inperiods greater than a year (e.g. the length of refrigeration display cases) or have to be
calculated after an established period of assessment (e.g. building heat gain or heat loss iscalculated with the heating degree days). The relationship between the different main categories
is indicated in the fourth column of each table ('linked to'), where an indication of what
subprocess from other monitoring categories has to be included. For example, for oil use (1a),the disclosure between oil for space heating (2a) and oil for warm water generation (2b) should
be considered. Meanwhile, when measuring the consumption of space heating, an indication of
the energy source should be included (oil, gas, biofuel, geothermal or different sources ofelectricity).
The proposed processes and parameters to be controlled by the monitoring system, listed below,
are gathered in a very comprehensive list. The sales concept (e.g. food or non-food), store
format and size (e.g. hypermarket or supermarket) can influence the number of processes to becontrolled. Retailers should decide the most relevant indicators to control the energy
consumption of their operations. No information should be lost.
The recommended indicator is the specific energy consumption (measured in kWh/m2yr), if
possible, as primary energy. Other indicators (or alternative units for assessing the performance)
are given. They can help to measure and understand the specific performance of different
processes.

Best Environmental Management Practice in the Retail Trade Sector

68Chapter 2
Table 2.14:

Energy source parameters to be controlled in a store as part of a comprehensive energy monitoring system

Category

1. Energy sources

Subcategory

Flow/process parameter

Linked to(see Table 2.15)

Fossil

1a Oil2a, 2bkg/m2yr, L/m2yr

Fossil1b Gas2a, 2bm3/m2yr

Renewable (cons)

1c Biofuel2a, 2bkg/m2yr, L/m2yr

Renewable (cons)

1d Geothermal heat

2a, 2b, 2d

NA

Renewable (cons)

1e Solar heat (for warm water)

2b

Performance indicator

Alternative
indicators/units

NA
Energy consumption peryear an per square metreof sales area: kWh/m2yr

Recovered

1f Recovered heat frominternal processes

2a, 2bRecovered

1g Energy storage

2a – 2d, 2i – 2l

NA

Grid

1h Electricity from grid2a – 2d, 2g – 2oNA

Renewable (cons)

1i Green electricity

2a – 2d, 2g – 2o

% of green purchased
electricity

Renewable (prod)

1j Renewable electricity(produced)(produced)

Ratio produced/consumed
electricity

Grid

1k. Electricity from CHP

2a – 2d, 2g – 2oSystem efficiency

Ratio recovered heat/heatdemandNB: annual consumption and production for a whole site, e.g. a store.

Best Environmental Management Practice in the Retail Trade Sector

69Chapter 2
Table 2.15:

Store operation parameters to be controlled in a store as part of a comprehensive energy monitoring system
Category

2. Store operation

Subcategory

Flow/process parameter

Linked to(see Table 2.14)

HVAC

2a Space heating

1a – 1d, 1f, 1h, 1i

NA

HVAC

2b Warm water generation

1a – 1d, 1f, 1h, 1h

NA

HVAC

2c Ventilation

1h, 1im3/h person

HVAC

2d Space cooling

1h, 1iNA

Building

2e Total heat demand

2aNA

Building

2f Total cooling demand

2dNALighting

2g Internal lighting

1h, 1iW/m2

Lighting

2h External lighting (e.g.
parking, ads)

1h, 1iRefrigeration

2i Refrigeration (centralised)

1h, 1iRefrigeration

2j Freezing (centralised)

1h, 1i

kWh/m yr

Refrigeration

2k Refrigeration (plug-ins)

1h, 1i

kWh/m yr

Refrigeration

2l Freezing (plug-ins)

1h, 1i

kWh/m yrOther

2m Appliances for special
processes e.g. lamps store,
electronics store

1h, 1iNA

Other

2n Appliances (standard use)

1h, 1iNA

Other

2o Other

1h, 1iNA

Best Environmental Management Practice in the Retail Trade Sector

Performance indicator

Energy consumption peryear and per square metreof sales area: kWh/m2yr

Other indicators/units

W/m2
kWh per metre of display
cases and year, kWh/m yr

70

Chapter 2
Table 2.16:

Energy-related aspects to be controlled in a store for a comprehensive energy monitoring system
Category3.
aspects

Energy-related

Subcategory

Flow/process parameter

Linked to (see Table
2.14)

Performance indicator

Other indicators/units

Climatic conditions

3a Heating degree days

NA

NA

Kd

Climatic conditions

3b Cooling degree days

NA

NA

Kd

Incidents

3c Use of emergency power

1a, otherNA-

Incidents

3d Use of emergency heat

1a, other

Energy consumption peryear and per square metreof sales area: kWh/m2yr

Perishable food

3e Length of display cases

NANA

m/m2 yr

Building use

3f Opening hours

NA

NA

h

Building use

3g Sales area or heated andcooled area

NA

NA

m2

Building use

3h Heat loss (winter)

NA

NA

W/m2

Building use

3i Heat gain (summer)

NA

NA

W/m2

Best Environmental Management Practice in the Retail Trade Sector

NA71Chapter 2

Monitoring of energy sources and CO2 emissions
The main environmental impacts of energy consumption are the CO2 and GHG emissions andthe resource depletion due to primary energy consumption. There are other associated impacts
to the energy life cycle, but the mentioned impacts are able to create enough awareness. In thisfield, the energy management system of a large retailer has to be able to detect potential
problems in the stores (excessive consumption, bad practices related to refrigeration, etc.)
The balance of energy should be performed in terms of primary energy consumption. Table 2.17
shows the conversion factors from final energy uses to primary energy consumption. With thesefactors, the total primary energy demand of a store can be calculated. The use of electricity is
penalised by a high conversion factor, as the efficiency of electricity generation is usually low.
The value of these factors depends on local and regional aspects, as renewables efficiency,
electricity generation mix, etc. A weight of 0.1 is given to renewable energy to avoid theperception of 'free' energy or 'non-consumed' energy when dealing with renewable energy
sources. This would take into account the whole energy life cycle.

Table 2.17:

Conversion factors from primary to final energy use and associated CO2 emissions
per final energy use

Energy source

kWhprimary/kWhconsumed

FossilFossil fuel for furnaces/heaters/boilers

1

District heating

0.7

Recovered
Recovered heat from exhaust air
Recovered heat from refrigeration
Mix
Grid electricity (HVAC, lighting,refrigeration, other)
Renewable
Biomass
Geothermal heat pump
Photovoltaic
Outdoor air for heating/coolingGreen electricity supply
Solar hot waterkg CO2 / kWh consumed
0.277 for oil, 0.184 for gas
0.7 × (0.277 for oil, 0.184 for
gas)

0

0

2.7

0.544

0.1

0

Source: (Carbon Trust, 2009b; DIN, 2007)

Indirect greenhouse gases emissions from different energy sources and direct emissions fromcombustion processes could be easily calculated if an energy monitoring system isimplemented. A specific production rate of CO2 emission is given per kWh in Table 2.17. Some
example factors are also given for several technologies. The value of these factors depends on
local and regional aspects, on the country energy mix, technology efficiency, etc.
The control of the refrigerant leakages is also very important. They can be monitored in situ
with the sensors, but the monitoring of leakages of a number of stores has to be deduced fromrefrigerants purchasing (although it is not the exact figure). The emissions of HFC refrigerants
have an important GWP. Therefore, the accounting should be done in equivalent CO2 and added
to the carbon balance as direct emissions. More information on this aspect is shown in Section
2.1.6.6.

Best Environmental Management Practice in the Retail Trade Sector

72Chapter 2

Monitoring of buildings and HVAC•
The monitoring of the HVAC system should also be very helpful if it is performed in acomprehensive way. The heating demand of a store can be easily controlled and it will
give fundamental information about many aspects:•
the heat gain/loss through the building envelope•
the efficiency of the HVAC system•
the influence of the climate on the HVAC system and, therefore, on the building envelope•
the influence of external/internal factors, e.g. the works done inside the building,
improvements, air leakages, changes in opening hours.
Here, two aspects should be pointed out. First, the amount of waste energy recovered from therefrigeration system should be monitored. Sometimes, there is no need for heat from externalsources because of the refrigeration excess heat recovery (see Section 2.1.6.4). This does notmean that the system is efficient. Maybe, an excess of electricity is consumed in the
refrigeration plant, or part of the recovered heat is lost due to the lack of pipe insulation, thesmall size of heat exchangers or due to the absence of consumers for the recovered heat. Best
performers are actually selling the excess recovered heat (see Section 2.1.6.4)
The second aspect with some controlling difficulties is the 'quality' of the building envelope, as
many factors actually influence it. The best way to control for the building envelope is tomeasure or to calculate the overall heat transfer coefficient, U-value, for the entire building, but
the calculation procedure is complex and not easy to perform all the time. An approximatedmethod is proposed, based on the definition of the U-value:

U=

q
A T

(2.1)

where
U
q
A
T

is the U-value (W/m2K);
is the heat flux (energy per square meter) over a surface of 1 m2 of building envelope(J/m2s);is the surface area for heat transfer, i.e. the area of the building envelope (m2)is the temperature difference between building indoor and outdoor environments.

The U-value represents how the building is losing or gaining heat through the envelope and it isa function of the thickness and of the properties of the construction materials. But this parametercan be unsatisfactory to evaluate all the energy gains and losses of energy of a building. For thispurpose, all the heat losses and gains due to all heat transfer aspects should be taken into
account:
conduction: wall, roof, floor, windows, doors, frames, thermal bridges, etc.
convection: air leakages, fresh air for ventilation, pressure drops, heat recovery from exhaust
air, internal gains (people, light, appliances), heating and cooling system, open windows, open
doors, buffer sections, etc.
solar radiation: windows with single, double, triple glazing, glass bricks, solar shading, etc.
So, the amount of energy transferred by the building envelope is a complex issue. In thisdocument, the shift to a more simplified expression is proposed:

U =kQ
AS HDD

(2.2)

where
U

is the U-value (W/m2K);

Best Environmental Management Practice in the Retail Trade Sector

73Chapter 2

Q
As
HDD
k

is the specific heat consumption (energy per square meter) per 1 m2 of sales area
(kWh/m2yr);
is the area of the building envelope per m2 of sales areais the value of the Heating Degree Days
is a conversion factor and its value depends on the units

The value of k is constant, and the value of AS depends on the design of the building shape andsize. For many retailers, this factor would be constant, as the building design is quite similar.
So, it can be stated that the U-value is proportional to the quotient Q/HDD:

U~

Q
HDD

(2.3)

Figure 2.35 shows the influence of this parameter on the heat demand for the buildings of IKEA
for its European stores.
North and middle Europe stores

180

Stores with Heat Pump / Elec Heating
South Europe stores

2

Heating demand, kWh/m a

160
140
120
100
80
60
40
20
0
0

0.01

0.02

0.03

0.04

0.05

0.06

Q/HDD
NB: data from 156 stores

Figure 2.35:

Heating demand vs. Q/HDD parameter for IKEA buildings operating all over
EuropeAs this figure shows, there is no distinction between the buildings of north and central Europe,
but the southern buildings are clearly identified in the other trend line of the graph. The trendlines are linear, so a direct relationship between heating demand and heat losses is proved. The
climatic influence changes the slope of these trend lines. The amount of heat needed in abuilding placed in the south of Europe is much less than for a similar building (same Q/HDD
value) in a middle or northern Europe location. The consumption for northern buildings issimilar to those in central Europe. This fact is due to the building insulation, which is usuallyhigher in northern Europe.
So, this kind of monitoring would detect problems but would also help the benchmarking
process and the establishment of environmental targets in relation to the building envelope.

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Chapter 2

Monitoring of refrigeration
The refrigeration processes installed in a store consumes more than 50 % of the total energy
demand. The monitoring of refrigeration systems is essential for any energy management
system, as the vapour compression cycle (Figure 2.21) demands a high amount of energy, as
electricity, for the compression step.
Some retailers have an excellent monitoring system of the refrigeration system. First, these
retailers know exactly the length of display cases for refrigeration and freezing they have ineach store. If they have refrigerated rooms, they transform the room area in length as a functionof the product load. Second, they control separately the amount of electricity consumed by therefrigeration system. With these data, they are able to control:••

the specific electricity consumption of display cases by calculating the amount of energy
per metre of display cases consumed in a year, kWh/m yr;
the specific electricity consumption per square metre of sales area, kWh/m2yr.

When a retailer proposes a benchmark, it is not easy to propose a value for the overall energy
consumption of the refrigeration system, as each store can have different loads of perishable
goods, as a question of logistics, tradition, local or regional aspects, etc. To improve theperformance of refrigeration systems, it is better to propose a benchmark for the specific energy
consumption of cooling display cases per linear metre of cabinets. Typical values vary from
2500 to 6000 kWh/m2yr, with exceptions for stores with a high load of frozen food.
Monitoring of other aspects
For some aspects, the existing monitoring system would not be enough. This is the case forlighting, which is hardly separated from the overall electricity consumption. Nevertheless, thelighting of products at stores is highly important because of the high intensity needed formarketing purposes. It can consume more than 25 % of the total energy consumption of a store.
Another important aspect is space cooling, which is not usually controlled even in warmer
climates. It is highly recommended to monitor these aspects in stores, as they would be very
helpful to optimise and to implement more efficient energy policies.
Climatic aspects such as HDD or CDD are not monitored by the companies as there are national
agencies monitoring these parameters and this information can be downloaded from their web
pages. The value is obtained annually and it can be very helpful to explain the energy
consumption of heating or refrigeration.
Achieved environmental benefits
The environmental benefit of the energy management and monitoring of a retail company is thesaving of large amounts of energy when simple measures are applied to all sites and are also
related to the detection of bad practices CO2 emissions would also be reduced and resources
consumption would be lower. As an example, cumulative distribution curve evolution across
156 IKEA stores (all over Europe) for the heat consumption is shown in Figure 2.36.

Best Environmental Management Practice in the Retail Trade Sector75180.00

2

Corrected heat demand, kWh/m yr

Chapter 2

Year 1160.00Year 2

Year 3140.00120.00100.00
80.00
60.00
40.00

Main improvements

20.00
0.00
0%

20%

40%

60%

80%

100%

NB: data from 156 stores

Figure 2.36:

Corrected heat demand vs. cumulative frequency for Ikea European stores

The retailer of the example is operates all over Europe and a correction for the climate
conditions and the opening hours have been performed in the curves shown in Figure 2.36. The
difference between the three curves for three consecutive years seems to be minimal. The
apparent low progress is reflected in the specific energy savings, which are 3.5 kWh/m2yr. But,
if the sales area of the whole group is taken into account, more than EUR 1 million is saved.
The implementation of an energy monitoring system would also:
•
•
•
•
•
•
•
•
•

help a company to identify the areas where potential energy savings can be carried out;
require the company to implement actions to improve its energy performance, from
simpler to more complex ones;
increase the awareness and the understanding of the processes consuming energy inside astore, generating a huge amount of knowledge which can be protected by the company;
help to implement an energy policy, to establish targets and objectives and to increase theperformance through a continual improvement process (see Description);allow the manager to select the best performance indicators;
detect potential bad practices;
detect best practices;
allow to the manager to propose energy consumption benchmarks;
control the implementation of new design concepts for new/retrofitted stores.

Appropriate environmental indicator
To monitor the energy consumption of stores, the specific consumption per square metre ofsales area and per year is an appropriate indicator. The calculation of the three elements of thisexpression (energy, sales area, time) has to be harmonised in order to obtain comparable
measures. It should be controlled at the process level, i.e. controlled per energy consumer at thestore, such as refrigeration, lighting, heating, etc. Aggregated values can be used to measure theoverall impact at the store level or at the company level.
Furthermore, the specific energy generation is a recommended indicator to be controlled by themonitoring system if an alternative energy generation installation is implemented by the retailer.
The leakages of refrigerants should be also monitored, as they contribute largely to GHG
emissions. The high energy consumption from lighting devices should also be controlled. The
Best Environmental Management Practice in the Retail Trade Sector

76Chapter 2

most common indicator to measure for this aspect is the power density of lighting, measured in
W/m2.
Figure 2.37 shows the most frequently used indicators for the energy performance of stores.
This figure can help to understand the connections among indicators.

(other impacts)(other impacts)

Primary
EnergyConsumption
kWh / m2 yr

SPECIFIC
ENERGY
GENERATION
kWh / m2 yrGHGemissions(direct andindirect),kg

indirect

SPECIFIC ENERGYCONSUMPTION
kWh / m2 yr

Space Heating/cooling

Building
Heat Loss,
W/m2

Linearconsumptionof cabinets
kWh/myr

Refrigeration
Electricity

direct

direc

t

di
re
ct

% GreenElectricity
Consumption

Use ofnaturalrefrigerantsy/nRefrigerantleakages,% or kg

Lighting

OthersLighting
power
density,
W/m2

LEGEND
Recommended
indicator
Alternative
Indicator

Use ofNaturalLighty/nFigure 2.37:

Process
Connection /Contribution

Indicators used frequently in the monitoring system of retailers and theirconnections

The use of correction factors, as a function of the climate, local conditions (e.g. for assessing
GHG emissions), or different activities (presence of restaurants, bakeries, etc.), should be
Best Environmental Management Practice in the Retail Trade Sector

77Chapter 2

implemented with a sound scientific basis and with a clear definition of the purpose of thecorrection factor. For example, correction factors for building height can be implemented tocompare the performance of different heating systems. Furthermore, correction factors can beused to assess the impact of the energy management system, as the example of Figure 2.36.
Cross-media effects
There are no any associated cross-media effects.
Operational data
No details about the operation of the monitoring system as such are given. The energy and theenvironmental results from a store are usually integrated into other business monitoring
schemes and the methodology is usually quite different from one retailer to another.
Nevertheless, several monitoring concepts should be followed in the system.
••

Performance•

Planning and scheduling: several aspects do not need to be monitored in a continuous
manner. For example, the heating system is not used in summer. However, other aspects,
as refrigeration, should be controlled continuously. Other systems, such as lighting(without natural light) do not need a strictly continuous control because the consumption
is usually constant throughout the year. Some retailers do not disclose the electricity
consumption of lighting, but they check the lighting system in detail in all theenvironmental (energy) audits. This is a good achievement, but it would be a better
practice to monitor it continuously.
Staffing and resourcing. A good energy management system needs resources from thecompany. The implementation of a monitoring system should avoid existing staff
overloading and scarcity of resources. Economy of the energy efficiency measures would
justify this approach. The work can be done by a third party but improvements have to be
initiated by the retailer.
Data management. The acquisition of data by the energy manager should be fast, efficientand the data should be homogeneous in order to be comparable. Among otherrepresenting techniques, two types of charts are strongly recommended:
Random distribution chart (Figure 2.38): allows for fast detection of potential bad
management practices (red bars) and best performers and also potential bestpractices (green bars). The energy management system can be evaluated throughthe amplitude of the variability of the stores. The average performance is rapidly
detected through a visual scan.

Store

Figure 2.38:

Example of random distribution of stores performance data

Cumulative distribution chart (Figure 2.39): this chart would also allow for
detecting best practitioners, but with a clearer view of what benchmark can beproposed and what performance can be selected as best practice. The energy
management system can also be assessed through the slope (at the 50 % cumulative
Best Environmental Management Practice in the Retail Trade Sector

78

Chapter 2

Performance

frequency value): the lower the slope the more similar the performance of storesand the more homogeneity of the management system.

Cumulative frequency

Figure 2.39:••

Example of cumulative distribution of stores performance data

Monitoring of 'lab' stores. When a new measure to increase the energy efficiency of astore is tested, it is usually implemented in one or several stores. In these 'lab' stores, themonitoring system is even more detailed than usual in order to have a complete picture of
the benefits of the new measure. Lab stores are usually the same for every new measure,although special climatic conditions or regional regulations can modify their location.
Global monitoring or sample monitoring. The implementation of a comprehensive
monitoring system in every store is recommended to achieve the best energy
performance. Sometimes it is enough to make the sampling of a concrete measure, even if
it is applied to the whole company. For example, to assess the behaviour of new LED
lamps installed in all new freezers, it is not necessary to implement the same control andmonitoring scheme of this special item in all stores. It would be enough to monitor arepresentative sample of stores.

Applicability
The monitoring of all the stores of a retailer is a huge task and with a significant degree ofcomplexity, but there is no limitation to the size or type of retailer that can implement acomprehensive monitoring system. It is easier to monitor new or modern stores than older ones,
but, again, the energy management system should deal with all operated stores. The retailer
should decide which parameters should be controlled to have a comprehensive view of theirenvironmental impact and their energy performance. The relevance of the parameter depends on
the store format. For instance, clothing stores consume a large amount of energy for lighting(values of 60 W/m2 or even more), and it supposes more than 70 % of their energy bill. So,
metering and lighting zones control should be implemented for this process. This may not be thecase for food retailers, where more than 50 % of the energy is consumed for refrigeration andless than 20 % of the energy is consumed for lighting.
Economics
Energy efficiency measures always produce cost savings. The problem to tackle is the period oftime in which the adopted measures would pay back the investment, i.e. the payback time. For
most retailers, a payback time greater than three years is unacceptable. Energy monitoring isrequired to calculate energy savings, and therefore payback times, for particular improvement
options. A good monitoring system is, therefore, an essential component of any retailer's energy
management strategy.
A good example of energy monitoring is shown in Figure 2.36. This chart is the result of many
single measures. One single measure, for example, is to change the indoor temperature from 24
to 21 °C in several stores. The cost of this measure is not significant, but the savings, for all theBest Environmental Management Practice in the Retail Trade Sector

79Chapter 2company, are huge. The benefit from more complex and expensive measures would be moredifficult to assess and/or to implement if the monitoring system is not comprehensive or precise.
Therefore, the monitoring system is an essential tool in the decision-making process.
Another example of the benefits of implemented measures, assessed with a comprehensive
monitoring system, is shown in Section 2.1.6.4.
Currently, the concern of retailers deals with the high costs of the monitoring of existing stores,
when compared to new stores. Nevertheless, best practice is to control 100 % of stores or
having that figure as an objective for the monitoring and implementing the techniques and staff
training needed for that purpose. Then, growing knowledge and expertise will be symptoms ofcontinuous improvement.
Driving force for implementation
A monitoring system, integrated into the energy management system, would provide a numberof advantages, for example:
•
•
•
•
•
•
•
•

improved insight into the energy aspects of the company
improved knowledge and competitivenessadditional opportunities for energy savings
improved basis for decision-making
better response to new energy regulations, market fluctuations
improved reputation and public image
improved control through a tool to check the effectiveness of implemented measures,
facilitates other environmental monitoring systems.

Reference retailers
An important number of companies have implemented energy monitoring systems in new storesand existing stores. For this document, most of the information was collected from Ikea
(Sweden), Migros and Coop (Switzerland), Carrefour (France), Colruyt (Belgium), and Royal
Ahold – Albert Heijn (Netherlands).
Reference Literature•
Carbon Trust, Monitoring and Targeting: techniques to help organisations control andmanage their energy use, www.carbontrust.co.uk, 2009a.
•
Carbon Trust, Conversion factors report, www.carbontrust.co.uk, 2009b.
•
DIN, Energy efficiency of buildings – Calculation of the net, final and primary energy
demand for heating, cooling, ventilation, domestic hot water and lighting. Part 1.
General balancing procedures, terms and definitions, zoning and evaluation of energy
sources, Standard DIN V 18599, Berlin, 2007.
•
European Commission, Reference Document on Best Available Techniques for Energy
Efficiency, http://eippcb.jrc.es/reference/, 2009.
•
Sustainable Energy Ireland, Technical Guideline I.S. EN 16001:2009. Energy
Management System – requirements with guidance to use, http://www.seai.ie, 2009.

Best Environmental Management Practice in the Retail Trade Sector

80Chapter 2

2.1.6.6

Efficient refrigeration

Description
The main environmental impact of food stores operation is derived from the installed
refrigeration systems. Refrigeration is essential for the conservation of perishable goods within
the store and is a key element in the optimisation of logistics and the transportation of food. But
the influence of refrigeration system in the carbon footprint of typical retailers in Europe isextremely important, as shown in Figure 2.40.

Refrigeration
61 %

HVAC
13 %

Logistics
10 %Others16 %Source: Carrefour, 2010 and
own elaboration
Figure 2.40:

Carbon footprint breakdown of a retailer operation

The disclosure of the carbon footprint of refrigeration systems in supermarkets, hypermarkets
and other food stores is usually divided into two categories:••

50 % from the direct emissions of refrigerants. Halogenated refrigerants have high Global
Warming Potential (GWP) values and, therefore, the leakages and disposal procedures ofthese refrigerants have a significant environmental impact. Some refrigerants are banned
and the most common refrigerants are R404a and R134a. The leakage rate varies fromone supermarket to another and its value mainly depends on the used refrigerant,
installation design and maintenance practices. In the 1980s, the leakage rate was about
25 % of refrigerant charge in US stores. It has been reduced in modern systems and the
reduction depends largely on the country, on the operation practice and other factors.
50 % from indirect emissions. These emissions are associated with the production of theelectricity needed to run the refrigeration system. The main energy demand of therefrigeration cycle is the compression step. The mechanical compressors are fed withelectricity, usually taken from the grid. The energy consumption of the refrigeration
system actually accounts for more than 50 % of the total energy demand of a food retailer
store.

The accounting of the Greenhouse Gases (GHG) of refrigeration systems is usually performedby the Total Equivalent Warming Impact (TEWI) method, which takes into account the amountof direct and indirect emissions. This methodology is explained below.
There is a strong connection between the energy performance of the refrigeration systems andthe refrigerant. The change to a more environmentally-friendly refrigerant should be performed
only if the overall impact is reduced. A new or cleaner refrigerant can cause an important
increase of the energy consumption of the refrigeration system due to lower efficiency.
Best Environmental Management Practice in the Retail Trade Sector

81Chapter 2

Direct and indirect GHG emissions and the whole energy consumption are the main influencing
elements for taking into account the environmental performance in the implementation of newtechniques. A proposed prioritisation is shown in Figure 2.21. Frequently, it is preferable toreduce the energy demand before applying other alternative techniques focused on improving
the efficiency or introducing renewable energy.

Table 2.18:

Proposed prioritisation of techniques to consider for improving the energy
performance of refrigeration systems

Priority

Reduce consumption(less use)

Optimise efficiency(better use)

Use of renewableenergy (cleaner use)

Techniques to consider
Energysavingmeasures:- display cases covering- improved design- better maintenanceNew refrigerants andinstallations to reducethe carbon footprint,
reducetheenergydemand and/or to fulfil
regulations
Energysavingmeasures:- smart control- under-demand fans,pumps and compressors- lighting optimisation
Energybalanceofstores: heat recovery
and cold storage
Green purchasing
Self-generation

Investment

Increased
efficiency?

Low

Yes

High

Depends on the system

Low

Yes

High

Yes

Low

No
No/depends
subsidies

High

cost-

on

Energy saving measures on existing systems
In a comprehensive study published in 2009 by the Federal Environmental Agency of Germany(Rhiemeier et al., 2009), the environmental benefit of several measures was investigated andquantified for some of them. These measures and their benefits are shown in Figure 2.41, withan indication of the location of the measure within the refrigeration cycle. A description of eachindividual technique can be found in that reference. The implementation of most of themeasures is usually fast and has extremely low payback times, while their environmental benefit
is considerable. The proper loading of products would be an example of this. Currently, most
retailers already properly control the loading processes.
Attending to the location indicated in Figure 2.41, most important measures would have to be
applied in the evaporation step, i.e., at display cases. Some of the measures would require thereplacement of display cases, while others only require the addition or retrofitting ofcomponents.

Best Environmental Management Practice in the Retail Trade Sector

82Chapter 2
Glass doors/lids, c

40 %Flooded evaporator, c

30 %
18 %

Air humidity in shop area, ca. condenser

15 %Speed control of compressor*, e
Fan motor outside cabinets, c

10 %Decreased condensation temperature (3K), a

9%

Increased evaporation temperature (3K), c

9%Infrared reflecting shades, c

7%Proper loading of products, c

6%

Two stage compression, e

6%

Improved lights, c

5%Defrost on demand, c

5%

Improved antisweat heaters, c

5%Improved expansion valve, b4%Adjusted condensation temperature, a3%

Efficient evaporator fan, c3%b. expansion valve

e. compressors

c. display cases

d. pumps(*) Also fan or pump speeds at a, c and d
NB: The location of the measure in the refrigeration cycle (a, b, c, d, e) is shown
Source: Rhiemeier et al., 2009

Figure 2.41:

Refrigeration energy saving measures and associated energy savings

The interaction of the display cases with the surroundings is the most important aspect. As
observed, the covering of cabinets achieves a maximum energy saving of 40 % of therefrigeration electricity consumption. The air humidity of the store, which gives condensationand frosting problems in cabinet walls, and store lighting, which increases the heat gain, are also
very important interactions.
The thermal balances in the surrounding of open vertical and horizontal display cases for
medium temperature, MT, and low temperature, LT, are shown in Figure 2.42 and Figure 2.43.

Source: Arias, 2005

Figure 2.42:

Energy balance of an open vertical display caseBest Environmental Management Practice in the Retail Trade Sector

83Chapter 2

Source: Arias, 2005

Figure 2.43:

Energy balance of a horizontal display case

The refrigeration load has to compensate for a significant amount of external heat gain tomaintain the operating temperature inside the display case. The number of opportunities to saveenergy at the display cases is very high. The most evident saving opportunity is the installationof doors or lids to avoid the infiltration of air, which is the highest heat gain in vertical cabinets(64 %) and also very important for horizontal display cases (23 %). The infiltration of heat iscomprised of latent heat, due to condensation and dependent of store humidity, and sensible
heat, dependent of the temperature inside the store.
The installation of glass lids in horizontal chest freezers is currently a common practice, as it isbeing implemented in many retailers. Although the ratio of heat loss is not high, 23 %, theamount of heat for low temperature devices pays back these glass lids. Also, heat gain throughradiation can be avoided with thin metal layers on the glass doors. The opening frequency is a
key factor with a very high influence on the performance of these freezers. Usually, a sticker
indicates to the customer to choose the product before opening the door. An example is shownin Figure 2.44 .

Figure 2.44:

Vertical and horizontal freezing display case with glass doors (with a sign saying'Please choose first, then open')

For MT refrigeration, many retailers apply night covers for open cabinets. Nevertheless, theapplication of glass covers is far from being common practice. Retailers are aware of theachievable savings but the costs balance is not acceptable for most of them. Also, for someretailers, covering with glass doors of MT cabinets does not produce important savings (lessthan 10 %) due to the high opening frequency. The efficiency reduction of food loading would
Best Environmental Management Practice in the Retail Trade Sector

84Chapter 2

also be affected. Then, the payback time may be far from acceptable. In addition, the sales may
be affected, as a barrier is placed between the consumer and the product, which can reduce theturnover of the store. But this seems to be far from the accomplishments of some retailers.
Royal Ahold (Albert Heijn), in the Netherlands, decided to close with glass doors all the verticalcabinets for MT and all freezing display cases (Versteegh, 2010). Achievable savings are 20 %of the refrigeration energy consumption. In 2010, they retrofitted 250 out of 850 stores withdoors in front of wall cabinets and they expect to retrofit 100 % of stores by 2015.
Figure 2.45 shows an example of normal refrigeration covered display case with glass lids.
There is no evidence of the negative influence of glass doors on the turnover of a supermarket.
Studies for closed chest freezers revealed that after a short adaptation period (one to two weeks)sales figures are the same as with open freezers. Achieved savings are high, about 40 %, and theeconomic behaviour of the measure justifies its application. For MT, with higher sales volume,a high opening frequency is expected. But, following the diagram shown in Figure 2.42, thetheoretical energy savings are close to 70 % (Arias, 2005; Rhiemeier et al., 2009), so the benefit
can be very great. Also, some retailers have detected some benefits from increased comfort andthe impression given to consumers of better food preservation.

Figure 2.45:

Vertical refrigerated display case with glass doors

The high lighting intensity focused on the refrigerated products is also an important source ofheat gain in display cases. A differentiation between internal lighting and external lighting
should be made: spotlights inside a display case are major sources of heat to be removed andcan have a negative impact in the conservation of a product. Heat gains and health risks should
be avoided, if possible, by removing the internal lighting system. If it is not possible, lowenergy solutions, like LED, should be used. Basic store lighting is unavoidable: the optimisationof the lighting system of the store (for example, the introduction of daylight and the use of low
power density lighting) would be recommendable (see Section 2.1.6.7).
Other heat sources are less important and sometimes unavoidable. For example, heating wires toavoid condensation are often needed. Innovative surface layers can avoid the use of heating
wires, but make the system more expensive.
The covering of display cases can change the heat balance within a store. Air conditioning
design usually depends on the amount of coldness coming from the display cases. GoodBest Environmental Management Practice in the Retail Trade Sector

85

Chapter 2practitioners do not feed cooled air to the refrigeration zone and, usually, pump air from therefrigeration zone to other places in order to save energy in the space cooling system. Figure
2.46 shows the outlet air conduction to the ventilation system in a real example. When closed,
the surroundings of the cabinets also need air conditioning and the 'coldness' gain is much lower.
This would result in the redesign of the space cooling system due to a slightly higher demand.
However, the overall energy balance would be positive. Also, the air inside the cabinets, whichneeds to be refreshed at a certain rate to avoid condensation, can be fed to the space coolingsystem.

Figure 2.46:

Air duct from a refrigeration display case to the ventilation system

Use of cleaner refrigerants
The environmental impact of refrigerants has been a very important environmental concern
since their potential for ozone depletion was discovered (chlorofluorocarbons, CFCs). Current
regulations are highly strict with the use of ozone depleting refrigerants and currently used
substances cause a low or zero impact on the ozone layer, but with a great GWP, especiallyhydrofluorocarbons – HFCs, such as R404a and R134a. The carbon footprint of commercial
refrigeration systems associated with refrigerant leakages and disposal is very important.
Figure 2.47 shows the breakdown of the refrigerant contribution to a company carbon footprint.

Best Environmental Management Practice in the Retail Trade Sector

86Chapter 2

Logistics
10 %HVAC, 1 %Walk Ins, 2 %Condensing Unit, 6 %Store piping, 7 %Condenser, 12 %

Gas
3%

Fuel
1%

Refrigerants
42 %Electricity
44 %Display Case, 16 %Mechanical room, 56 %Source: Carrefour, 2010 and Rhiemeier et al., 2009
NB: Left column shows the different locations of refrigerant leakages.

Figure 2.47:

Carbon footprint breakdown of a typical retailer operation

Currently, the amount of leakages from refrigeration installations can significantly vary: it
depends on the amount of fittings, maintenance practices, the complexity and operational
conditions such as the compression ratio. Modern installations avoid screw joints, but they still
have leakages which are produced from many small points and, therefore, leakage prevention ismore difficult. The magnitude of leakages can vary from 5 to 10 % of the refrigeration charge.
A highly-tightened installation requires high investment and high operating costs. Many
retailers are switching to non-harmful refrigerants. Rhiemeier et al., 2009, give a list of ideal
specifications of refrigerants:
•
•
•

•
•
•
•
•
•
•
•
•
•
•
•
•
•

zero ozone depletion potential
low global warming potential
high energetic efficiency:
high capacity for heat transfer
high heat conductivity
low viscosity
low pressure ratio condensing to evaporating pressure
low pressure drops in piping
high efficiency during compression
chemically stable
inert
high dielectric strength with hermetical compressors
non-flammablenon- toxic
non-corrosive
inexpensive
compatible with the refrigeration system's materials
high heat of evaporation in relation to specific volume at compressor suction
evaporation pressure above 1 bar (prevention of air entrance in leakages)
freezing point below evaporation temperaturecondensing pressure below 25 or 32 bar
good solubility with lubricants
easily detectable for leak detection.

Best Environmental Management Practice in the Retail Trade Sector

87Chapter 2

There is no refrigerant that fulfils all these requirements. Regarding the environmental impact,
most retailers are implementing natural refrigerants. These are naturally occurring substances,such as hydrocarbons (propane, iso-butane), CO2, ammonia, water and air (PSD, 2010). Theirozone depletion potential is null but also their GWP is very much reduced when compared to
HFC and other refrigerants (Figure 2.48).

50% C2HF5, 50% C2H3F3

3300

R404A 44% C2HF5, 4% C2H2F4, 52% C2H3 F3

3260

R507

R410A 50% C2HF5, 50% CH2F2
R22

HCF2ClR134A C2H2F4
R1270

3 C3 H6R290

3 C3 H8

R600A

3 i-C4H10

R744

1 CO2

R717

0 NH3
0

1720

1500
1300

1000

2000

3000

4000

GWP (IPCC, 100 yr)

N.B: (CHFCs:R507, R404A, R410A, R134A, HCFCs: R22. HCs. R1270, R290, R600A and naturalrefrigerants CO2 and NH3)

Figure 2.48:

Global warming potential of several commercial refrigerants

As shown, natural refrigerants have the lowest environmental impact and their use iscommercially available. Hydrocarbons (HCs) have to be used in indirect cycles due to theirflammability. They have very good physicochemical properties as refrigerants in comparison to
HFCs. Secondary heat transfer fluids have to be used to reduce risk. Also, ammonia can be used
only in indirect systems, due to its toxicity. The coefficient of performance, COP, of theammonia refrigeration cycle is usually higher than from that of other refrigerants.
Carbon dioxide has excellent properties as refrigerant but two main drawbacks define its
performance:••

The critical temperature is 31°C. For heat sink temperatures higher than 25 °C, theoperation would be transcritical and the COP would be reduced.
The saturation pressure at normal working temperature is very high if compared to otherrefrigerants. For MT refrigeration, it is higher than 100 bar (10 times higher than thepressure range of other refrigerants).

The high pressure of CO2 cycles is a technical concern but has been solved. The high volumetricrefrigeration capacity of CO2 overcompensates the energy balance: less mass of CO2 is needed
to cool, so smaller compressors and smaller pressure ratios are needed. The overall energy
consumption of CO2 refrigeration systems is usually lower than for other refrigerants. In fact,many retailers have retrofitted the LT refrigeration to CO2 cycles in a cascade combination withother refrigerants. MT cycles are currently being installed, although the relatively high pressuresand the strong dependence of COP on ambient temperature is still a barrier for theirimplementation.

Best Environmental Management Practice in the Retail Trade Sector

88Chapter 2

Figure 2.49 shows how the ambient temperature influences the coefficient of performance ofrefrigeration installations (Haaf, 2002). In that Figure, the assessed systems use CO2 or R404a
as the only refrigerant (direct refrigeration cycle) for low and medium temperature. For thelowest temperatures, the COP is even higher for CO2. For intermediate temperatures (14–28 °C), the COP would be very similar. For the transcritical cycle, the COP is lower for CO2.
The authors of the study proposed the use of an additional cooling mechanism for thecondensers, such as a water spray system, to enable application in warm climates.
0.8
R404a

0.7

R744 (c. dioxide)
R744 + Water spray system

0.6

1/COP

0.5
0.4
0.3
0.2
0.1

Source: Haaf, 2002.
0
-20

-10

0

10

20

30

40

0

Ambient temperature, C

Figure 2.49:

Comparison of energy consumption of direct evaporation refrigeration systems(CO2 and R404a)

The performance of CO2 installations depends on many factors, so comparison with HFCs andother systems should be performed with caution. Usually, the use of CO2 reduces the specificconsumption of display cases: Figure 2.50 shows a random distribution (with a disclosed
average and standard deviation) of the specific consumption of refrigerated cases (measured as
kWh per metre and year) for the overall performance of a number of stores in central Europe,with similar ambient temperatures, and sampled CO2 refrigerated stores. No differentiation
between MT and LT is provided.

Best Environmental Management Practice in the Retail Trade Sector

89Chapter 2
9000

8000

Sample of CO2
plants

7000

+

6000

5000

Average,retailer performance
+

4000

3000

-

Refrigeration Display cases energy consumption,
kWh/myr

Retailer performance(>100 stores)

Average,sampled CO2 plants
performance

2000

Figure 2.50:

Random distribution of specific energy consumption of refrigeration plants in aretailer's division, located in central Europe, and sampled CO2 plants performance

Carbon dioxide as refrigerant seems to be the choice of Migros, in Switzerland, which has
implemented more than 150 CO2 installations (47 transcritical cycles for MT refrigeration and
105 supercritical for LT) out of around 600 sites.
Achieved environmental benefits
Good energy management and the appropriate energy saving measures always produce animportant environmental benefit, since the carbon footprint of the company is reduced and theconsumption of resources is also decreased. Covering existing open cabinets for medium or low
temperature produces 20 % of savings, although the achievable savings can reach 70 % of therefrigeration electricity consumption. In addition, for new stores, 20 % less power forcompression is needed because of the lower energy losses in the cabinets.
In the case of the refrigeration installation, the balance of cleaner refrigerants and energy
consumption should be assessed. For example, the use of secondary fluids with naturalrefrigerants like ammonia or hydrocarbons can drastically reduce the associated carbon
emissions. However, the energy consumption will be higher. Integration of heat recovery andthe use of cleaner sources can improve the results of these systems. Arias, 2005, made aninteresting balance regarding this issue. On the one hand, an estimation of the energy
consumption of a 2700 m2 store with R404a direct system and heat recovery was performed. On
the other hand, the same system was also assessed with an R404a indirect system with a waterglycol mixture as heat transfer fluid and heat recovery. The TEWI method was used to evaluate
the GHG emissions associated with both systems. The TEWI method evaluates both indirect(due to energy consumption), and direct emissions (due to refrigerant leakages and fuelcombustion). Table 2.19 shows the results of the energy balance for the 2700 m2 store with both
direct and indirect systems.

Best Environmental Management Practice in the Retail Trade Sector

90Chapter 2
Table 2.19:

Energy consumption of direct and indirect refrigeration systems and TEWI
calculation
Direct system + heatrecoveryUnit(1)

Indirect system + heatrecoverySpace heating

14

17

Space cooling

1

1

180

188

Other

180

180

Total energy cons.

375

386

70

8

70

73

140

81

Refrigeration system

Direct GHG emissions fromrefrigeration
Indirect GHG emissions
from refrigeration
Total GHG emissions fromrefrigeration

kWh/m2kg CO2 eq. /m2(2)1( )Balance per square meter of sales area(2)Calculated with an average emissions value of 0.39 kg CO2 per kWh (Europe).
Source: Arias, 2005, and own elaboration

The achieved environmental benefit is high, although the energy consumption is slightly higher.
Avoided emissions sum to 60 kg of CO2 per square metre of sales area (around 80 % from directemission). The main contribution to this environmental benefit is the less R404a piping needed
for indirect systems, so leakages are drastically reduced. In the case of energy consumption, thestore actually recovers heat from the refrigeration cycle and, therefore, the energy consumption
is highly reduced from the system without heat recovery.
The retrofitting of refrigeration systems usually do not lead to a higher energy consumption
profile. In fact, the use of natural refrigerants would lead to zero indirect emissions and to lower
energy consumptions. Usually, the system does not work at optimal performance before
retrofitting. Rhiemeier et al., 2009, give several examples of this kind of refrigeration system.
Figure 2.51 shows the relative energy consumption and GHG emissions of different systems.

Best Environmental Management Practice in the Retail Trade Sector

91Chapter 2

Energy consumption

Total GHG emissions

Relative value (%)

125

100

75

50

25

0

R404a direct

R404a MT and
R744 LT, cascade

R717 indirect

R744 direct

N.B: R404a direct = 100 %Figure 2.51:

Relative energy consumption and greenhouse gas (GHG) emissions for different
supermarket refrigeration systems

The results shown are not intended to express a quantitative behaviour, as the systems dependon many external factors, but to indicate the potential of natural refrigerants in a qualitative
manner. The initial situation of a system to be retrofitted is not the optimal (the case of R404a
first case in Figure 2.51 is an optimal design) and the change to a more environmentallyfriendly system usually produces great savings, apart from reducing drastically the carbon
footprint.
A good management of refrigeration systems also produces great savings. Good maintenanceand monitoring practices, combined with a restrictive energy policy in the company would leadto situations like that shown in the cumulative distributions of refrigeration energy consumption
shown in Figure 2.52. These data belong to real retailers operating in a region on central Europe.

Specific refrigeration consumption,
kWh/m yr

12000

10000

RETAILER ARETAILER B

8000

6000

4000

2000

0

0%

20%

40%

60%

80%

100%

NB: Retailer A: 105 stores; Retailer B: 221 stores

Figure 2.52:

Cumulative energy consumption distribution of two real retailers (central Europe)

Best Environmental Management Practice in the Retail Trade Sector

92

Chapter 2

Retailer A operations consume much less energy than retailer B. Good management practices ofretailer A can be proved with the lower slope of the red line of the chart, as refrigeration energy
consumption of different stores tend to the average value of the distribution. Comparing one
retailer to another, achieved energy savings sums more than 1000 kWh/m or 100 kWh/m2 ofsales area (per year).
Appropriate environmental indicator
As seen in previous sections, three main indicators are used to measure the environmental
performance of refrigeration systems:••••

specific energy consumption, measured in kWh/m2yr
specific refrigeration linear energy consumption, measured in kWh/m yr
refrigerant leakages, % or kg per year
carbon footprint, kg CO2 per metre of display cases or per square metre of sales area.

The specific energy consumption is already described and is the recommended indicator for any
process within the store. In this case, other specific indicators are used by the sector. The
specific energy consumption of the refrigeration system refers to the length, usually
measured in metres, of display cases. This indicator takes into account the efficiency of thesystem and it reflects the influence of refrigeration on the energy performance of the store, as
shown in Figure 2.53. To convert this indicator to energy consumption per square metre of salesarea, the length of refrigeration display cases per m2 is needed. More frequent values forsupermarkets vary from 40 to 100 m/1000 m2. As many retailers also have refrigerated rooms, acorrection from area to length should be performed.

kWh refrigeration / kWh total

0.8
0.7
0.6
0.5
0.4
0.3
0.2
3000

4000

5000

6000

7000

8000

Linear energy consumption (kWh/m yr)
Figure 2.53:

Contribution of refrigeration to overall specific energy consumption vs. linear
energy consumption of refrigeration cabinets in 100 stores of a regional division ofa retailer in central Europe

Refrigerant leakages are also quite important to control within the refrigeration system, as they
are responsible for an important amount of CO2 emissions. Retailers control this parameter as
the total amount of purchased refrigerant to refill the installation, in kg per year. The tightnessof the refrigeration installation can be controlled with the percentage of leakages referring to thetotal amount of refrigerant. The use of natural refrigerants would make this indicator less useful
to assess the environmental performance, as the GWP of natural refrigerants is negligible.
Best Environmental Management Practice in the Retail Trade Sector

93Chapter 2

The carbon footprint of the refrigeration system is the amount of emitted GHG referring toequivalent CO2. The TEWI method has to be used, as direct GHG emissions are produced in the
refrigeration installation. The TEWI describes the sum of indirect emissions, due to energy
consumption, and direct emissions caused by installation leaks. The DIN 378-1 method, as
described by Arias, 2005, has been used to calculate the total impact:

TEWI = GWP L n + GWP m (1
where
TEWI
GWP
L
n
M
R

Ea

R

) + n Ea

Total Equivalent Warming Impact, kg CO2
Global Warming Potential (mass of CO2 with the same impact potential as 1 kg of
substance)
Leakage rate (kg/yr)
Operating time, yr
Refrigerant charge, kg
Recovery fraction of refrigerant before disposal
Energy consumption, kWh/yr
CO2 emissions from consumed energy life cycle.

An example of the TEWI calculation is shown in Table 2.20.

Table 2.20:

Example calculation of TEWI for a refrigeration system
Refrigerant
Installation
GWP
Lnm(15 years)

R404a
Direct / Highly tighten
3260 kg CO2eq / kg R404a
0.012 kg R404a / m2 yr
1 yr
0.013 kg R404a / m2
0
200 kWh / m2 yr
0.4 kg CO2 eq / kWhREa
GHG emissions due
torefrigerantleakages

39.1 kg CO2eq / m2

GWP L nGHG emissions due
torefrigerant
disposal

GWP m (1R

42.4 kg CO2eq / m2)

GHG emissions due
torefrigerant
disposal

80 kg CO2eq / m2

n Ea
TEWI

161.5 kg CO2 eq / m2
(e2000 kg CO2 eq / m)

Cross-media effects
For some natural refrigerants, the reduction of the carbon footprint actually increases the energy
demand of the refrigeration cycle as secondary refrigerants are already used. Although thebalance is still very positive from the environmental point of view, an optimised design concept
should avoid the increase of the energy demand.

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94Chapter 2

The Heating, Ventilation and Air-Conditioning (HVAC) system of the store can be affected by
the covering of display cases. Open cabinets release cool air to the surroundings and reduceenergy consumption of the space cooling system in summer. However, for winter periods, thespace heating system has to compensate the heat loss caused by the cooling furniture. When thecabinets are covered, the space air cooling can become undersized, while the space heating
oversized. The disrupted thermal balance of the store can also cause moisture problems, leading
to condensation on glass lids. Therefore, integral approaches are required and not single
measures. Here, the building and HVAC systems are also key factors.
Operational data
The shift to a more environmentally-friendly refrigerants requires extensive changes to the store
infrastructure, including piping, materials, compressors and other accessories that are notcompatible from one refrigerant to another. Many interesting options have been observed across
many retailers in Europe. Most of them are being implemented in new stores, while existing
stores are usually retrofitted because of legal requirements or major renovation.
The options preferred by many retailers are detailed below:•••

CO2 as the only refrigerant for LT and also for MT. High pressure operation in thetranscritical cycle is required and the influence of climate conditions is quite important.
CO2 for LT. It has a high yield when included in cascade systems. The refrigerant for
medium temperature is still an HFC, as R134a or R404a, in a high tightened installation.
Although the technical performance can be optimal for this system, the use of HFC still
has a high GWP and this option is not environmentally recommendable.
CO2 for LT and indirect system for MT. An example is shown in Figure 2.54. The firstrefrigeration cycle can still use HFC refrigerants, but in this case, the use of naturalrefrigerants is more feasible. A water/glycol brine or other thermal fluid could be used.
Dry Cooler
1st refrigeration cycle:
Hydrofluorocarbon
Hydrocarbon or
Ammonia(indirect):
Secondary refrigeration for MT
Water/glycol brine

Heat
Recovery
System(direct)

2nd refrigeration cycle for LT:
CO2 arranged in a cascade configuration

Source: Kauffeld, 2007

Figure 2.54:

Indirect refrigeration for MT and cascade arrangement for CO2 as the refrigerant
for LT

Best Environmental Management Practice in the Retail Trade Sector

95Chapter 2

For the different energy saving measures affecting the refrigeration installation, many technicaloptions are available. As a general rule, an integrated approach is needed, as the change of one
element can provoke new unknown situations and problems to be overcome. The mostinteresting example of the need for an integrated approach is the use of glass covers forrefrigeration cabinets. The change from uncovered to covered cabinets actually removes a
stream of cool air fed to the store, so the heating system would consume less energy in winterand the air conditioning system could be undersized for summer needs. Open cabinets also often
act as humidity sinks as they cool fresh air and remove part of the water content in the air bycondensation. If the cabinet is closed, air losses from cabinets are much lower and the waterbalance is drastically affected.

Temperature (°C)

Humidity (%)

The problem of space cooling in summer can be very important. As an example, Figure 2.55
shows the humidity and the temperature chart for 21 days of a store in one month in summer. As
seen, the implementation of glass doors in the refrigeration equipment affects the water content
in the air and the humidity is increased by about 20 %. This will undoubtedly lead tocondensation over the glass panes and maybe also over the products. The thermal balance of thestore is also affected. As seen in Figure 2.55, the temperature control is also affected as the lackof a cool air stream causes the air conditioning system to be undersized. The averagetemperature inside the store is increased and the indoor environment can be uncomfortable forcustomers.
70

Installation of glass doors

60
50
40
30
28
26
24
22
20
18

Figure 2.55:

1 summer month
Humidity and temperature charts for a store in a 21-day period with and without
glass doors in the refrigeration display cases

Retailers across Europe previously test this kind of measure in several stores to gain knowledgeof the systems. To achieve best performance, information and knowledge sharing among all the
Retail Trade sector stakeholders is highly recommended.

Applicability
The measures proposed in this section are applicable all over Europe and for new and existing
stores. The engineering approach can change a lot from southern to northern countries, but themain concepts explained in this document are applicable to any climate condition. In fact, thewill to reduce the use of HFC refrigerants should not be affected by the climate. The designconcepts for some of the energy saving measures, such as glass covering of display cases, also
highly affects the store thermal and moisture balance, which is also affected by the climate.
Technical feasibility and environmental behaviour of the proposed measures do not change forexisting stores, but the payback time for existing stores is higher than for new ones and it can belonger than the desired value by the company. For new stores, the lower power needed for theBest Environmental Management Practice in the Retail Trade Sector

96Chapter 2

refrigeration system also makes the energy saving measures more attractive, as less initialinvestment would be needed.
Economics
For the use of a cleaner refrigerant, the economic behaviour can not be measured in terms of
payback time, as the whole installation will usually need to be changed. Taking the calculation
process of Rhiemeier et al., 2009 for a specific store, the CO2 abatement cost has been
calculated for the foreseen leakages scenario in the application of the legislation. The reference
system is a direct multiplex with R404a as the refrigerant. The results from a simple economic
balance are shown in Table 2.21.
As shown, the main benefit of natural refrigerants is the abatement of direct emissions, which isvery important (it reaches 47 % for direct R744 – CO2 – refrigeration), while the energy
consumption or the costs are quite similar. The investment costs proposed in Table 2.21 arederived from the references (Rhiemeier et al., 2009), while the electricity costs assumed are
EUR 0.11/kWh. The CO2 generation rate per kWh is the average value for Europe: 0.399
kg/kWh.
The use of CO2 for LT in a cascade system with an HFC as the refrigerant produces the same
GWP as the direct option with the HFC as refrigerant for LT an MT. There is a slightly lower
consumption of HFC, but it is compensated for by the complexity of the cascade system, whichmakes the system consume more energy and be more expensive. These results differ from thestudy of the European Partnership for Energy and the Environment, EPEE (SKM Enviros,
2010), where an emission reduction of 17 % for the system R404a/R744 is calculated. Then,emissions would change from 229 kg of CO2 to 188 kg and the costs for CO2 abatement would
be EUR 20.5 per tonne.

Table 2.21:

Economic balance of several refrigeration installations
Energyconsumption

Total
emissions

Total
Investment
costs

AnnualEnergy costs+
maintenance

Total
Annualcost

CO2abatement

CO2 cost
abatement

kWh/m2yr

kg CO2/m2 yr€/m2€/m2yr€/m2yrkg CO2/m2 yr (%)€/tonCO2

R404a dir

299

227

296

38

58

-

-

R404a/
R744dir

299

229

296

39

59

-2 (+1 %)More CO2
produced

R717ind

344

138

315

43

64

89 (-40 %)71

R744dir

299

120

296

38

58

107 (-47 %)0

Source: (Rhiemeier et al., 2009)

For the energy saving measures in existing systems, the payback time seems to be a key elementin the decision-making process. Generally, retailers do not accept payback times higher than 3
years for an energy saving measure to be applied. Nevertheless, energy savings have to be
regarded as an environmental aspect of stores and not only as a term of the cost balance ofretailer operations. So, more economic flexibility has to be given to the application of energy
saving measures, as it is a real environmental aspect. For this document, an approximatedanalysis was performed for the covering of refrigeration display cases. The results are shown in
Figure 2.56. As can be observed, the payback time is reduced when the energy savings are high,but there is a limit for the technical feasibility of the energy savings. Experts from retailers
propose 40 % as the highest saving achievable. Royal Ahold (Albert Heijn) has obtained a valueof 20 % of energy savings from the covering of their vertical display cases for LT and MT. To
have less than 3 years of payback time, the cost for retrofitting has to be less than EUR 460 per
metre of retrofitted display case. The obtained values fit well with the values shown in theBest Environmental Management Practice in the Retail Trade Sector

97Chapter 2

references (Ligthart, 2007), where a payback time of 3±1 years is foreseen for 55 % savings at adoor price of EUR 766/m.

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98Chapter 2

15
14Technical
Feasibility

13
12
11

Payback time, yr

1091500€/m

8
71200€/m
6
5900€/m4
460€/m
3600€/mEconomical suitability

2300€/mCommercial viability region

1
0
10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

Energy savings, %Figure 2.56:

Payback time vs. Energy savings for several retrofitting costs with glass lids on vertical pen refrigeration cabinets

Best Environmental Management Practice in the Retail Trade Sector

99Chapter 2

Driving force for implementation
The most important driving force for retailers is that the economic behaviour of the proposed
measures produces cost savings. The best energy performance makes the company ready for
future energy prices. In addition, retailers can improve their reputation through huge CO2
savings. Also, fulfilment and going beyond future legal requirements is an important issue, as
extra costs and resources can be derived from the lack of preparation to more restrictive
regulations.
Reference retailers and stakeholders
Some retailers currently cover their normal refrigeration display cases, such as Royal Ahold(Albert Heijn) in the Netherlands. Many European retailers have already covered their chest or
vertical freezers. The Swiss Coop has achieved great progress in terms of the achieved energy
consumption of their refrigeration systems. For natural refrigerants, the market is currently
moving on and very large companies, such as Ahold (NL), Carrefour (FR) or ALDI (D) arealready implementing CO2 refrigeration systems, although there is still a challenge for replacing
HFC refrigerants.
For the refrigeration aspect, the role of suppliers is extremely important. Part of the information
given in this chapter was provided by suppliers, such as Hauser (for covered cabinets) or Carrier(for CO2 installations).
Reference Literature•
Arias, J., Energy Usage in Supermarkets – Modelling and Field Measurements, PhD
dissertation, Royal Institute of Technology Stockholm, 2005.
•
Carrefour Group, Sustainable Development at Carrefour. Expert Report 2009,www.carrefour.com, 2010.
•
Kauffeld, M., 'Trends and Perspectives in Refrigeration Technology', presentation at
Internationale Konferenz Co2ol Food – klimafreundlich Kühlen im Supermarkt,
www.umweltbundesamt.de, 2007.
•
Haaf, S., Heinbokel, B., 'Supermarktkälteanlagen mit natürlichen Kältemitteln', Die
Kälte&Klimatechnik 9, 2002, pp. 32-39.
•
Ligthart, F.A.T.M., Closed supermarket refrigerator and freezer cabinets: a feasibility
study, Energy Research Center of the Netherlands report ECN-E-07-098, 2007.
•
Partnership for Sustainable Development (PSD), Refrigerants, Naturally! (Initiative),
http://www.refrigerantsnaturally.com/, 2010.
•
Rhiemeier, J.M., Harnisch, J., Ters, C., Kauffelld, M., Leisewitz, A., Comparative
Assessment of the Climate Relevance of Supermarket Refrigeration Systems andEquipment, Research Report 20644.00 UBA-FB 001180/e, www.umweltbundesamt.de,2009.
•
Sinclair Knight Merz (SKM) Enviros, Eco-Efficiency study of supermarket refrigeration
for the European Partnership for Energy and the Environment (EPEE), SKM, 2010.

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100Chapter 2

2.1.6.7

Efficient lighting

Description
Lighting is a very important and sensitive aspect for products presentation at stores. The use of
spotlights can improve the appearance of products and the general lighting concept of a store isusually connected to the retailer public image. Thus, the energy saving measures for lighting arelimited to business and marketing aspects.
Generally, lighting is responsible for more than 20 % of the energy consumption in foodretailers and more than 40 % for non-food retailers. The use of lighting inside a store is divided
into two categories (Tenglemann, 2010).
••

Natural light: it directly comes from the sun through store glazing. The orientation of thebuilding, building surroundings and the availability of external light are the main factors
affecting natural light systems. In addition, some retailers avoid the use of natural lighting
devices because of their sales concept and, sometimes, to avoid unwanted gains of heat.
Artificial light. Artificial lighting consumes a significant amount of electricity. Two typesof artificial lighting have to be considered:basic lighting: for store corridors, accesses, parking and general store lighting;effect lighting: designed to produce a desired effect on a product. For example, acolourful effect for the liquor department, special low energy for refrigerators,
spotlights to emphasise offers, etc.

In this section, a unique solution or measure for energy savings in the lighting concept is not
given, but the description of several possibilities are provided.
Lighting strategies and energy management. A correct lighting strategy is able to produce
significant energy savings (Philips Dynalite, 2010). The strategy for reducing lighting energy
consumption should be included in the energy management system of the company: the energy
policy and the energy objectives and targets should reflect the strategy for lighting as one of themost efficient measures to reduce lighting consumption. In addition, lighting should beconsidered one of the main sources of energy and costs savings. Philips Lighting (Philips
Dynalite, 2010) gives some advice to set up a comprehensive lighting strategy with enhancedenergy performance (Table 2.22).

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101Chapter 2
Table 2.22:

Lighting management concerns and energy-saving strategies

Strategies
Limit time of use:
Eliminate unnecessary lighting energy use
outside normal hours. Lighting that is not
required can be switched off or dimmed.
Optimise light output
Design illumination
Daylight integration
Enable sunlight to displace artificial lightingwith sensitivity to occupants.
Life-cycle operating costs
Programmed lamp replacement is costeffective

MeasuresOccupancy sensors, dimming, enhanced
control, on-line systems
Lamps efficiency upgrade
Grid relocation, de-lamping, illumination
management control, occupancy sensors,
step dimming
Dimming,
harvesting

occupancy

sensors,

daylight

Maintenance

Enhanced lighting monitoring

Central control, online systems, maintenance

Low utilisation areas
Tariff sensitive control

Occupancy sensors, time control
Central control

Source: Philips Dynalite, 2010

A
Definition of lighting strategy.
Lighting strategy should be defined in two ways.
•

First: definition of lighting needs within the building. A disclosure of the light intensity
across the store and the technologies used at each point are needed (LRC, 1997). For this
aspect, the customer response, the economic balance and the environmental profile should
be considered together. Two examples for a food retailer and for a non-food retailer areprovided in Table 2.23.

Table 2.23:

Disclosure of the specific lighting load for a food retailer and for a non-foodretailer
Example 1. Food retailer•

Example 2. Non-food retailer

SectionLoad(W/m2)

SectionLoad(W/m2)

Whole store
Grocery aisles
Frozen foods
Produce
Meat
BakeryFloristCheckout
Food storage

23
34
17
16
23
23
32
31
12

Stairs
Entrance
Showroom
Restaurant
Market hall
Warehouse
Checkout

5
10
12
12
20
9
12

Second: the lighting use profile. A well-controlled lighting system would optimise the useof lights by switching them off when not needed. This would reduce the need for lightduring the night time, during restocking or during special uses (LRC, 1997). Operationalparameters should be carefully designed. The average load in use is not higher than
15 W/m2. For the example 1 of Table 2.23, the profile of lighting use is shown in Figure

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Chapter 2

2.57. As shown, a daylight control system would allow for a considerable reduction in theenergy consumption for lighting.
25
Lighting Power Density, W/m2

Total design load: 22.6 W/m2

20Lighting strategy

15

Load with daylightcontrol system

105Area under curve: specificenergy consumption forlighting in Wh /m2day

0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Time

Figure 2.57:

Specific lighting power, 24-hor profile

Daylight controlled lighting
If the building orientation allows for the use of natural light through the walls or through theroof, the installation of skylights and well insulated windows would produce an efficient lightscattering, even independent of the type of light irradiation received (Tenglemann 2010). A
central system is able to control the needed artificial light at different moments. In this system,
daylight is considered to be a complement of basic lighting and should not be used for effectlighting.
There is an increasing interest in the use of skylights. The physical properties of the glass forthis purpose have been improved and high insulating capacities are being used nowadays. Solarheat gain and light transmission are key factors to be optimised at the same time, as they usually
have the opposite behaviour. A standard Insulating Glass Unit (IGU) consists of, at least, twoglass panes, separated by a spacer and filled by air or by a special gas like argon.
For vertical panes, the heat transfer is performed by heat conduction (17 %), convection (17 %)and radiation (66 %). U-values (see Section 2.1.6.1) are around 1 W/m2K for double glazing andgas filling, and around 0.6 W/m2K for triple glazing. Nevertheless, the heat transfer through theglass can be increased by 50 % due to the increase of convection heat transfer. As shown in
Figure 2.58, vertical gas filling has a slow natural convection process, but when these panes are
shifted to a horizontal position, the heat transfer rate is increased due to the formation of many
short and fast circuits.

Best Environmental Management Practice in the Retail Trade Sector

103Chapter 2a) Vertical Glass Unitb) Horizontal Glass Unit
Cold
side

Warm
side

Cold
side

Warm
side
Figure 2.58:

Vertical and horizontal natural convection flows in double glass panes

Figure 2.59 shows the variation of the U-value with the inclination of the window. For thehorizontal configuration, the U-value can be increased more than 50 % for gas fillings. Bestfilling of panes for horizontal windows are aerogel and capillary slabs.

2.2
2.0
Air 16 mm

2

U-value, W/m K

1.8
1.6

Argon 16 mm

1.4

Capillary Slab 40 mm

1.2
1.0
0.8

Aerogel 30 mm

0.6
0.4

Aerogel 60 mm

0.2
0.0
0
Horizontal

Figure 2.59:

15

30

45

60

Inclination (º)

7590Vertical

Dependence of the U-value on the inclination for different types of fillings

For aerogel filling, the U-value is the lowest for double pane, so the insulation capacity is really
improved. In addition, the characteristics of this kind of pane for light diffusion are also good.
The colour rendering index( 18 ) is maintained at 100 %. The use of translucent skylights
increases the energy efficiency by reducing the overall consumption for lighting, while it(18) The color rendering index, CRI, is a quantitative measure of the capacity of a light source to reproduce accurately the colors ofobjects in comparison with an ideal light source

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Chapter 2

prevents any disturbing glare. Also, the solar gain of this system can reduce the consumption of
the heating system.
Efficient lighting
The reduction of energy consumption achievable by efficient or innovative lighting is about
50 % for supermarkets (without taking into consideration the lighting of refrigeration cabinets).
The savings potential depends on the technology used and the renovation of the lighting conceptthat is being developed. Three concepts are very important in the design of an efficient lighting
system.
•••Luminous efficacy is the luminous energy perceived by the human eye, generated perunit of consumed energy. It is defined as the amount of luminous flux per installed light
power. The unit is lumen (lm) and it is always based on light perceived by the human eye.
This is a key concept in the design of the store lighting: taking into account the number oflumens per m2 (i.e. illuminance) needed by the customer, the luminous efficacy ofdifferent devices would help in the minimisation of energy consumption. Illuminance,measured in lux or lm/m2, is a measure of intensity of light (perceived by the human eye)that passes through a surface.
Colour Rendering Index, CRI. It is essential for the correct presentation of products inthe store. It should be maximized for that purpose. Also, the use of low CRI light sources
with reduced energy consumption, as low pressure sodium lamps, should be applied fornon-marketing aspects, as external parking or warehouses.
Lifetime. This is also an essential aspect of lighting devices. The economic balance andthe energy consumption for lighting are strongly dependent on the lifetime of devices. So,
it would be a very important aspect for the maintenance and operation costs of a store.

Table 2.24 shows typical values for the luminous efficacy, CRI and lifetime of several lighting
devices.

Table 2.24:

Properties of several lighting devices
Lighting device

Incandescent tungsten
Fluorescent T12, magnetic ballast
Fluorescent T8, electronic ballast
Fluorescent T5, electronic ballast
White LED, 4W
White LED, 13W, freezer application
Low pressure sodium lamp

Luminous efficacy,(lm/W)<20<60
80–10070–11050–15050–150100–200

CRI

Lifetime, h

~100
50-85
75-85
85
80
70
5

500–1 500
5 000–20 000
20 000–30 000
20 000–30 000
35 000–50 000
35 000–50 000<20 000

To achieve efficient store lighting, the specific power (W/m2) should be minimised, maintaining
a correct illuminance (lm/m2 or lux) of the store. Relatively high illuminances should be
avoided, daylight systems should be used and the illuminance of zones without impact in sales
should be minimised. The installed specific power usually varies from 20 to 40 W/m2. After
retrofitting, the optimisation of the lighting system has lead to values even lower than 10 W/m2
for several European stores.
After illumination optimisation, another important aspect is the selection of the lighting devices.
There are a significant number of options and suppliers with enhanced technologies leading to
the best efficiencies. Apart from the integration of natural light in the lighting control systemand other technologies, preferred options are given below.

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Chapter 2••

Novel fluorescent technologies. T5 fluorescents with high performance (even higher than
100 lm/W) are being produced and are available. They are often used in the basic or
general lighting of stores. Achievable lighting savings are high with these systems, the
CRI is around 85 and the lifetime is usually higher than 20 000 h. The temperaturedependence and the influence of on/off cycles in their performance are the maindrawbacks of fluorescent systems.
Light-emitting diode, LED. The development of LED lighting has been very significant
in recent years. The performance of LED devices has increased exponentially. The
lifetime of these devices is higher than for fluorescents and they do not depend on switch
on/off cycles, so the maintenance costs are reduced. They do not generate infrared
radiation, so they do not produce the amount of heat that incandescent bulbs produce.
Nevertheless, they need to remove heat by conduction or convection and a heat sink isneeded (DOE, 2006). In addition, the cost of LED is much higher than for other lighting
options and LED emission tends to be directional.

The use of the different innovative technologies depends on the approach of each retailer. Thereis not a unique solution for the development of an efficient lighting system. In fact, manyretailers are refusing to use LED for general or basic lighting because of the high costs
associated with this technology. The use of novel fluorescent technologies is good enough tosave a significant amount of energy in general lighting. On the other hand, LED does not
generate heat as infrared radiation and it is becoming a very interesting option for lighting insidefreezers and refrigeration cabinets. The energy consumption of the refrigeration system would
be reduced as the heat gained from the lighting system would be negligible. The safety of thefood preservation would also be increased, as less damaging radiation affects the refrigerated
goods. In addition, the illuminance across the freezer shelves is more homogeneous. A study
from Price Chopper (LRC, 2006) shows that optimized LED in freezers reduces the energy
consumption while uniformity across the shelf is improved (Figure 2.60).

6000

Illuminance (lux)5000

Fluorescent
LED

4000
3000
2000
1000

Source: (LRC, 2006)
0
EDGE

Figure 2.60:

CENTEREDGE

Average illuminances on freezer shelf

Achieved environmental benefits
The use of efficient lighting systems produces significant improvement in energy performance.
Currently, there is no doubt about the great savings that innovative lighting system can produce
in non-optimised stores. The attention is usually focused on the effect of the new system onsales and on the economic balance of the lighting system, which is not always considered
acceptable. In some cases, customer satisfaction is also enhanced through improved
Best Environmental Management Practice in the Retail Trade Sector

106Chapter 2

illumination. In addition, the use of natural light has a positive effect not only on customer
satisfaction but also on staff working in the store (Tenglemann, 2010). The achievable savings
depend on the store configuration, store needs, sales concept and on the availability ofresources. The influence of the retailer energy policy and the lighting strategy is also quite
important in this respect. Table 2.25 shows three examples of retrofitted stores. Achievablesavings are 50 % for the three cases.

Table 2.25:

Energy savings from lighting system retrofitting

Retailer/suppliersStore
location

Averagecurrent
lighting
consumption

Appliedtechniques

Energy savings
frominitialsituation

Tenglemann/Okalus,
Philips

Mülheim,
Germany

17 % of total
consumption

Natural light
LED at freezers
T5 35W for basic
lighting, etc.

Reductionof
50 % of lighting
load

Unknown/Fobsun

Lyon, France

10731 kWh/yr(tested section)

Substitution of T8
with LED

Migros/Unknown

Frauenfeld,
Switzerland

Unknown

Substitution of T8
with LED, LEDat freezers

Reductionof
50 % of lighting
consumption
Reductionof
50 % of lighting
consumption

The fast development of new lighting systems is causing suppliers to be highly involved in thedevelopment of new innovative concepts. The retail sector is a very important client fordevelopers, as very specific needs of this sector should be covered. So, more examples andinformation are given by suppliers. Philips and Osram are two suppliers who, among otherprojects, have retrofitted a great number of stores and achieved important energy savings in thelighting systems of retailers such as Sainsbury's, Edeka, Migros and Plus.
Appropriate environmental indicator
To monitor the lighting energy consumption of stores, the specific consumption per square
metre of sales area and per year is an appropriate indicator. The calculation of the threeelements of this expression (energy, sales area, time) has to be harmonised in order to obtaincomparable measures. For the lighting of stores, technical performance indicators are also
commonly used by retailers as they are quite related to the energy efficiency of these systems.
The specific lighting power density, measured in W/m2, is related to the energy efficiency of thelighting devices: two main technical parameters influence this indicator:••

the illuminance (measured in lux or lm/m2) is defining the lighting needs (influenced bycommercial purposes), but has no environmental meaning;
for lighting devices, the luminous efficacy, lm/W, is a very important parameter oflighting devices with a direct impact in the energy consumption of stores.

Cross-media effects
The reduction of energy consumption for lighting will produce great economic andenvironmental benefits. Nevertheless, lighting is also an important source of internal heat gains
inside a store. The change to a more efficient system, with improved design and less heatproduction would affect the HVAC system. If the lighting and HVAC systems are retrofitted
simultaneously, the design should take into account the new situation.
In addition, the use of a more efficient system and devices with higher luminous efficacy can
produce unwanted glare to customers.

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107Chapter 2

Operational data
The different approaches to reducing the lighting energy consumption usually agree on the main
target: to reduce the lighting load with the increase of the luminous efficacy of installed devices.
The identified best performers are new T5 fluorescents and LED technology. Similar
performances are achievable with them. A recent study (Qin et al., 2009) has shown that LED iseven worse in heat dissipation and real efficacy than T5 fluorescents. Some results from thisstudy are shown in Table 2.26.

Table 2.26:

Luminous efficacy and heat dissipation of lighting devices

Parameter

18W
T8
fluorescent
lamp

14W
T5
fluorescentlamp

1W LED

3W LED

LED

Rated
efficacy(lm/W)

61.1

96

45

40

107

Measuredefficacy(lm/W)

60.3

96.7

31

30

78.5

Heat
dissipation
factor

0.77

0.73

0.9

0.89

0.87

Although the results from the aforementioned study point to the best performer as being the T5
fluorescent lamp, LED still has huge improvement potential. In fact, the efficacy of thesesystems has grown exponentially during recent years. The performance of such devices isaffected by many factors, such as ambient temperature or the on/off cycles. On the one hand, T5
fluorescents do not work properly under low temperatures and are seriously affected by on/off
cycles. On the other hand, LED is performing better at low temperatures, does not lose heat as
infrared radiation and is not affected by on/off cycles. With these performances, retailers havedecided to use T5 for general lighting and LED for very specific purposes, such as foodillumination inside freezing cabinets.
Applicability
Lighting is a very sensitive aspect of retailing. Goods presentation is directly connected to sales
and it is also part of the public image of retailers. Nevertheless, new lighting systems are more
efficient, consume less energy and, in most cases, improve the lighting concept of stores. So, theapplication of new devices to existing or new buildings is only dependent on economic
balances, as there is not any specific technical drawback for existing stores. Hundreds ofexisting retrofit kits for T5 or LED technologies are being commercialised. For example, screw
bulbs with single LEDs inside are quite popular for changing existing incandescent bulbs. LED
tubes in a T8 tube are also commercially available. T5 fluorescents to be adapted to existing T8magnetic ballasts also require electronic adaptors, called retrofit conversion kits (Carbon Trust,2009).
The application of natural light and day control lighting depends on the building configurationand can be mandatory in some Member States in the EU. Usually, the installation of windows in
the roof is economically viable in new buildings. Some retailers have installed natural light inthe major renovations of their buildings. The performance would also depend on thesurroundings and in the availability of natural light.
Economics
The use of natural light in a store has a direct impact in the energy use of the store, reducing
operating and maintenance costs. A positive impact on customers is also expected, which can

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108Chapter 2

also have an impact on sales. Nevertheless, retrofitting costs for skylights are high and expected
payback times are relatively high. No specific data are available for this technique.
The payback times of retrofitting existing T12, T8, T5 fluorescents, halogens and incandescentbulbs to high efficacy T5 or LED would always be short, although it depends on the lighting
concept before and after retrofitting. LED in freezing cabinets have payback times shorter than
4 years. T5 fluorescents with high efficacy for general and basic lighting have payback times
shorter than 1 year (Tenglemann, 2010).
A store in Lyon, France, retrofitted 40 T8 fluorescents with LED in T8 tubes to be adapted toexisting luminaries. The investment was about EUR 1100 and the expected maintenance costs
were EUR 720/yr less than the costs for the existing systems. The calculated payback time forthe installation is 1–2 years (Fobsun, 2009).
Driving force for implementation
As for other energy saving measures, economic performance will be enhanced due to costs
savings. Better environmental performance will also increase retailers' reputations and lower
store energy consumption would make companies better prepared for future energy tariffincreases. The use of novel technologies for lighting can also improve the presentation of goods
in stores.
Reference retailers
For the use of natural light, the installation of daylight controlled systems in the Tenglemann
Kimamarkt in Mülheim, Germany, is remarkable.
The use of LED in freezers is quite extended in Europe: Royal Ahold (Albert Heijn), in the
Netherlands, Migros and Coop in Switzerland, Sainsbury in the UK and others are good
examples of this. The use of LED for general lighting is not extended for economic reasons. For
the moment, several retailers have tested this technology in basic and specific lighting.
The use of new T5 fluorescents is also quite extended in Europe due to the good energy andeconomic performances of these devices. New Carrefour Supermarkets and Hypermarkets and
Ikea are examples of T5 integration.
The lighting concepts and strategies followed by Coop and Migros in Switzerland fit with the
SIA 180/4 requirements and the average installed load for lighting is not higher than 15–18
W/m2. Tenglemann Klimamarkt uses 10 W/m2 with the daylight control system. Ikea stores arealso an example of low lighting load.
Reference Literature•
CarbonTrust,
How
toimplement
T5
retrofit
conversion
kits,
www.carbontrust.co.uk/energy, 2009.
•
Department of Energy, DOE, United States, Lifetime of white LEDs' Energy Efficiency
and Renewable Energy, DOE Report PNNL-SA-50957, www.eere.energy.gov, 2006.
•
Fobsun, 'A supermarket in Lyon, France', Fobsun Case Studies. www.fobsun.com, 2009.
•
Light Research Center, LRC, 'LED lighting in Freezer Cases', Field Test Delta Snapshots,
Issue 2, www.lrc.rpi.edu, 2006.
•
Lighting Research Center, LRC. 'Demonstration and Evaluation of Lighting Technologies
and Applications. Lighting case studies', Delta Snapshots, 1 (2), www.lrc.rpi.edu, 1997. .
•Philips Dynalite, Energy Management for Commercial Building, Philips Commercial
Information, www.lighting.philips.com, 2010.
•
Qin, Y., Lin, D., Hui, S.Y., 'A simple method for Comparative Study on the Thermal
Performance of LEDs and Fluorescent Lamps', IEEE Transactions on Power Electronics,
24(7), 2009, pp. 1811-1817.
•
Tenglemann, Daylight controlled Lighting system installed in the first Tenglemann
Climate store', personal communication, 2010.
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109Chapter 2

2.1.6.8

Simple secondary measures for reducing energy consumption

Description
The main environmental impact of energy use is mainly allocated to the energy aspects
mentioned so far: building (envelope and HVAC), refrigeration and lighting. The consumptionof these processes represents more than 90 % of the energy consumption of a store.
Nevertheless, the energy consumption of other aspects, such as the electric appliances, can bequite significant for non-food retailers, such as specialised retailers in electronic equipments,
lamps, etc. This chapter is covered in the electricity aspects of the techniques portfolio of Table
2.3 because main practices to be covered involve electrical energy consumption.
In this section of the document, several identified practices to improve the energy performanceof retailers' activities are summarised and include:
•
•
•
•
•

use of efficient appliances
monitoring and management of the energy performance of energy consuming products in
exhibitors
energy performance of distribution centres
internal and External communication andtraining.

Use of efficient appliances
The impact of appliances can be significant for the energy consumption of a store, especially for
non-food retailers. Plug-in freezers or fridges used as display cabinets should not be considered
as a secondary electric appliance and its consumption should be accounted for the whole
refrigeration system (see Section 2.1.6.5).
Selection of small appliances (e.g., cash registers, appliances of staff rooms, computers) should
be made with regard to reduce the environmental impact of their life cycle (e.g. selection of ecolabelled products). One of the most important aspects of their life cycle is energy consumption.
The best energy rated equipment should be preferred. For the selection process, it is also quite
important to avoid oversizing. The number of appliances and their power load should be
optimal. A strategy should be defined in the energy management of the store to optimise theperformance and the lifetime of appliances.
For the purchasing of high energy consuming appliances (e.g. elevators, escalators, ovens andothers), it is also recommended to optimise lifecycle costs. More efficient equipment usuallyrequires a larger initial investment but produce great savings. A clear statement on this should
be included in the energy management policy of the company. A high standardisation level ofthe company in these aspects is also recommended.
Monitoring and management of the energy performance of energy consuming products in
exhibitors
Non-food retailers selling electric appliances usually show the performance of their products tocustomers. This is a very important aspect of the marketing of electric appliances. The
consumption of exhibitors is usually low if it is compared to other processes, e.g. lighting.
Nevertheless, excessive or useless electricity consumption should be avoided. It is
recommended to control separately the performance of exhibitors or, at least, to monitor themcontinuously or periodically through energy audits.
The business standardisation procedure for exhibitors should take into account the energy
consumption in the optimisation of their marketing concept. A good example of this is theminimisation of basic store lighting in the store sections for lamps, bulbs and other lighting
devices, where there is an excess of illumination and the basic lights can disturb theappreciation of the different lighting products.

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Chapter 2

Energy performance of distribution centres
Distribution centres account for 5–10 % of the energy consumption of retailers and for 10–20 %of the carbon footprint. Internal processes are quite similar to those shown for stores, except for
those relevant to product presentation. There is no need for enhancing the presentation of
products through lighting, and there is no need for the same display cabinets as used insupermarkets. The conservation of perishable food is the most important aspect, which is
performed by refrigeration installations. Therefore, the size of the refrigeration system of a
distribution centre is much higher than those installed in supermarkets or hypermarkets.
The techniques described for buildings, heat recovery or refrigeration are also applicable to
distribution centres. Main differences to take into account are given below.
•
•

•
•

Optimisation for energy efficiency. A distribution centre does not have a sales area, so theapplication of energy efficiency measures is not affected by marketing issues.
The refrigeration system. A distribution centre is placed in a large industrial building witha significant area to be refrigerated at very low temperatures. The refrigerant leakages arehighly significant in these centres. The use of CO2 or ammonia in cascade or indirectconfigurations is more effective for larger installations, and the costs associated withmore expensive configurations (e.g. indirect ammonia-brine systems) are reduced(Rhiemeier et al., 2009). The building envelope is also a key aspect in the performance ofthe refrigeration system, as cooled rooms are extensively used.
Only basic lighting is used. The illumination needs are those defined in national orregional regulations for work places and no enhanced product presentation is needed.
A significant area is cooled to conserve perishable goods. So, the role of the building
envelope is a key aspect in the energy performance of distribution centres.

Communication and training
The standard CEN 16000 for energy management systems (CEN, 2010) establishes that, for the
implementation and operation of the system, the organisation has to ensure that all workers areaware of:••••the organisation's energy and energy management programmes
the energy management requirements, including activities of the organisation to control
energy use and improve energy performancethe impact of energy consumption and their activities to achieve the energy objectives andtargets
the benefits of improved energy efficiency.

Personnel with tasks which can cause impacts on the energy consumption have to be competentwith enough training and experience. A process for the identification of training needs in energy
aspects is also required.
Regarding communication, all of the people working for (and on behalf of) the organisation
have to be informed about the energy management and the improvement of the energy
performance. A periodic and transparent communication procedure of the company to the public
and interested parties is essential in a good energy management system. Therefore, a correctbalance between performance, perception and communication is needed. It is not good practiceto have intensive public campaigns while the energy objectives and targets are not ambitious orjust few measures have been implemented. Good performers have to communicate whatpractices they have put into practice to improve their image and to make customers aware of thebenefits of improved energy performance.
Achieved environmental benefits
The benefits of single practices proposed are not easily measured. Energy audits would beneeded to evaluate the achievements of an environmental management system, but theallocation of energy savings to specific measures is not always easy to perform. In case ofcommunication and training, the benefits for the company are significant and contribute toBest Environmental Management Practice in the Retail Trade Sector

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Chapter 2

creating awareness and a proper atmosphere for the implementation of the energy management
system.
Environmental benefits of energy savings in distribution centres are also significant andcomparable to those achieved with the implementation of saving measures at stores.
The benefits from efficient appliances are important but difficult to measure, as the control ofdifferent electricity consumption is usually not performed except for lighting and refrigeration.
Appropriate environmental indicator
The energy consumption per square metre of sales area and year is an appropriate indicator. It
can be used as an indicator of the overall performance and, it can also be divided per source or
section. Indicators already explained (see Section 2.1.6.5) can be used to control this practice. In
addition, the presence of an energy management system in place to drive continuous
improvement is a proper indicator.
Cross-media effects
The improvement of energy performance by described measures does not have any cross-media
effects.
Operational data
An important number of techniques are covered in this section. Two examples of them areshown below: one for the management of specific energy uses of stores and the other for
external communication concepts within a retail trade company.
Energy management of specific needs
One particular non-food retailer periodically audits the energy consumption of its stores. It is agood performer but notably has an excellent monitoring and energy management system.
Energy audits from this company usually check all the energy consuming processes. Figure 2.61
shows the energy performance of some internal processes (excluding HVAC) of this retailer for
three of its stores. It is quite interesting how the external lighting influences the breakdown ofenergy consumption of stores 2 and 3. The audit process would reveal where excessive
consumption profiles come from. Also, non-conformities would be identified and corrective
actions would be proposed.

140

2Specific consumption (kWh/m yr)

160
OfficeTotal external lights
Lifts
120

Restaurant

100

Warehouse
Exhibitors

Other electricity
demands

Internal Lighting

Lamp store
80

Sales Area Lighting

60
40
20
0

Store 1Figure 2.61:

Store 2

Store 3Specific electricity consumption of three sampled stores of a non-food retailer fordifferent electricity uses

Best Environmental Management Practice in the Retail Trade Sector

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Chapter 2External communication
The environmental impact produced by retailers' operations is relatively low compared to theimpact produced by the supply chain or even by the consumer. Nevertheless, the influence of aretailing company and the capacity to reduce impacts are higher for direct aspects and it is really
limited for the supply chain and also for consumers. The retailer has to optimise theircommunication procedures, not only to change consumers' perception but also to influence otheractors of the whole chain.
Applicability
There is no limitation on the size, type or geographical location of the retailer to perform acomprehensive management system, taking into account appliances, distribution centres,
specific energy uses or communication and training.
Economics
All the energy efficiency measures produce costs savings, although the decision-making process
always depends on the payback time and other economic parameters. An example of the use of
simple measures to improve performance is shown in 'Achieved environmental benefits' of
Section 2.1.6.5. For the economics of practices at distribution centres, see the similarly
described techniques for stores.
An indicator of the economics of energy management is the number of cost-saving techniques
being implemented in the whole company. Most of them are described in this document.
Staffing and allocation of resources are also very sensitive economic aspects of energy
management systems.
Driving force for implementation
Best management practices would improve the environmental profile of the company but also
other important driving forces have to be regarded: improved business performance, costsavings, better response to market fluctuations and better reputation are examples of driving
forces to consider in the implementation of described techniques.

Reference retailers
An important number of companies have implemented good practices to improve theperformance of the aspects described in this section: Rewe, Royal Ahold (Albert Heijn),
Carrefour, Migros, IKEA, Coop, etc.
Reference Literature•
CEN, 16001:2009. Energy Management System – requirements with guidance to use,
European Standard, 2009.
•
Rhiemeier, J.M., Harnisch, J., Ters, C., Kauffelld, M., Leisewitz, A., Comparative
Assessment of the Climate Relevance of Supermarket Refrigeration Systems andEquipment, Report 20644.00 UBA-FB 001180/e, www.umweltbundesamt.de, 2009.
•
Versteegh, Climate Action of Albert Heijn, personal communication, 2010.

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Chapter 2

2.1.6.9

Use of alternative energy sources

Description
As stated in the general introduction of the techniques to improve the energy performance ofretailers (see Section 2.1.2), priority should be given to the reduction of the energy demand of
stores. Excessive energy use should always be avoided, even if the main source of energy isrenewable or if the carbon footprint of the store has been offset.
The integration of alternative energy sources is usually considered a building aspect and it isstrongly connected to the energy management system of the building (Tassou et al., 2010). The
European Directive for the energy performance of buildings (EP, 2010) states that the energy
performance of a building shall be determined taking into account the positive influence of
renewable energy sources and cogeneration, but also from natural light and district heating.
Several techniques for the use of alternative energy sources have successfully been introduced
in retailers' buildings. Usually, the initial investment for these techniques is higher than that
required for conventional fossil or grid-based ones. Nevertheless, the life cycle costs of thesetechniques can be lower than for conventional ones, although this aspect depends on an
important number of individual factors.
The links between retailers 'activities and alternative energy sources are:•••warm water generation
solar thermal tube collector
heating/coolingbiomass-fired boilers
geothermal Heat Pump
cold Storage
other processes as CHP, heat pumps
electricity
implementation of renewable energy sources on site/ investment on renewableenergy sources at other locations
purchase of available 'green' electricity.

One of the objectives of the use of renewable energy sources is to build a zero energy building(ZEB), which is a building with a high level of energy efficiency, with an energy demand equal
to or less than the energy production from renewable energy sources on site. A positive energy
building (PEB) is, therefore, that with higher renewable energy generation than demand. The
usual definition is calculated on a yearly basis: zero or negative energy consumption over ayear.
The ZEB/PEB approach is considered a natural progression from demanding standards, as the
Passive House concept. A ZEB/PEB can be designed using mature technology and retailers areapplying this concept for some of their buildings. Long payback periods are foreseen, although
the life cycle costs would be always the lowest for optimal ZEB/PEB. According to Kolokotsa
et al., 2010, there are a large number of techniques to integrate into a ZEB/PEB:
•
•
•
•
•
•

improvement of the envelope
innovative shading devices (automated/seasonal devices)
improved air tightness and ventilationhigh efficiency heating and cooling devices
use of renewable energy sources
implementation of efficient energy management, monitoring and control systems.

Two types of ZEB/PEB are observed: autonomous buildings and 'net' zero energy buildings. An
autonomous building is not connected to the grid and it produces its own energy, storing it whennecessary. A net zero or positive energy building is connected to the grid as a source or as a sinkof electricity. From the technical point of view and from a life cycle perspective, the use of theBest Environmental Management Practice in the Retail Trade Sector

115

Chapter 2

net zero energy concepts are more environmentally friendly, as they avoid storage systems, andflexibility for the appliances is gained (Hernández, 2010). The autonomous building should be
restricted then to specific applications or site conditions.
The main barrier for the implementation of a net ZEB/PEB is the economic cost of theimplemented solutions, although the techniques involved are commercially available. In thecase of autonomous buildings, some cost-efficient solutions have been proposed for isolated
zones, but with the used technologies are still in an early stage of development. This is the caseof some renewable-energy integration case studies using hydrogen as energy storage (Milo etal., 2011).
Many existing retailers' buildings are far from achieving zero energy consumption, as the needsof a store make the specific energy demand to be, generally, more than three times the need of ahousehold or a normal office. Only the energy intensity of refrigeration and lighting processes
within a store would require a huge renewable energy input to balance the consumption.
Nevertheless, integrated concepts as described in previous techniques (see Sections 2.1.6.1 to
2.1.6.4), and the techniques involving net ZEB/PEB, would minimise the energy consumption
and significantly improve the environmental performance of retailers' operations.
Achieved environmental benefits
Alternative energy sources do not reduce the energy consumption of retailers' activities but animportant reduction of the primary energy demand is achieved. An important benefit from theuse of renewable energy use is the reduction of associated CO2 emissions. To achieve acomprehensive balance of the techniques, a life cycle perspective should be used. For example,
the use of roof PV installations does not emit CO2, but the life cycle analysis reveals that many
impacts are associated with the production of PV panes. However, the life cycle perspective
also reveals that these techniques have positive environmental balances after three or more yearsof use.
Appropriate environmental indicator
As for measuring the energy performance of other techniques, the specific consumption ofalternative energy sources per square metre of sales area and per year is an appropriate
indicator. The calculation of the three elements of this expression (energy, sales area, time) has
to be harmonised in order to obtain comparable measures. In addition, for on-site generation(e.g. from roof PV installation), energy generation should be given in the same terms, e.g.,
kWh/m2yr, to give a comparable measure of generation to processes consuming energy.
In addition, the percentage of renewable energy used in the store, fed from green purchasing or
own generation, should be provided. In the case of ZEB/PEB the excess generation percentage
in relation to consumption can be provided (0 % for ZEB and >0 % for PEB).
Cross-media effects
No cross-media effects are detected.
Operational data
The implementation of renewable energy techniques in retailers' buildings is becoming common
practice. Some data from company reports are shown in Table 2.27.

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Chapter 2
Table 2.27:

Implementation of renewable energy sources at retailers; sites

Retailer

Technology

Location

PV Area(m2)

Installed
Power
(kWp)

Energygeneration

Ground source
heat pump

30
installations in
EuropeNA

500-1000NA

7 locations at
FR and DENA

100 000

NA

NA

1 650

1 850 MWh/yr

NA

2 000

4 400 MWh/yr

NA

4 600

7 500 MWh/yr

Wind offshoreNA

44 400142 000
MWh/yr

4 Distribution
centers, BE

44500

2 730

2 200 kWh/yr

17 Stores, BE

12600

1 240

Store,
southeast ofES
Several stores
in ES
Alovera,Distribution
centre, ES
SeverallocationsinEurope(20
sets)

7000 m2 (sales
area)

116

NA

NA

109 MWh/yr

NA

1 000

NA

NA

2 000

NA

Ikea

Wind turbines
Colruyt Group(Colruyt,
2009)

SpanishretailerRoof-PV
Carrefour
Spain

Ikea

Dassenveld,
distribution
centre, BE
Ghislenghien,
D.C., BE2 Wind Farms,
BE

1 040 MWh/yr(80
kWh/m2yr)
161 MWh/yr(23
kWh/m2yr)

Solar water
heating60
installations

NA

-

NA

Biomassburning

20 burners

NA

150–1 400

NA

Apart from the examples shown above, many retailers are implementing novel renewableenergy techniques. Examples of these are Rewe, Tesco, Metro Group, Leroy Merlin, Ikea andmany others.
The case of Ikea's renewable energy installations is remarkable. It is a non-food retailer, so noheat recovery from refrigeration is possible for them. So, apart from windmills and photovoltaic
installations, Ikea is implementing a number of techniques for space heating and cooling, as
biomass boilers, ground source heat pumps and air source heat pumps. They also use solar water
heating. Another particularity of Ikea is their international character: they are placed all over
Europe and they have to develop different solutions for each site to cope with the climaticconditions, the demand of the building and local aspects (subsidies, infrastructures, etc.).
For this document, Colruyt Group provided detailed information during the meeting of theTechnical Working Group about their renewable energy installations in Belgium. Figure 2.62
and Figure 2.63 show the solar photovoltaic generation of stores (more than 80 kWh/m2yr) andthe installed power at distribution centers.
Best Environmental Management Practice in the Retail Trade Sector

117Chapter 2

Net generation, MWh/yr

100
90Colruyt Stores generation: 1040 MWh/yr;
installed power 1242 kW,
specific generation approx. 80 kWh / m2

80
70
60
50
40
30
20
10
0

StoresFigure 2.62:

Installed Power, kW

2500

Energy generation by solar photovoltaics at 17 Colruyt stores in Belgium

Colruyt Distribution Centres generation: 8437 MWh/yr

2000

1500

1000

SOLAR-PV

WIND-ONSHORE

5000Distribution Centres
Figure 2.63:

Installed power at distribution centres of Colruyt in Belgium

Applicability
For the use of alternative energy sources, such as solar power, solar thermal heat or geothermalheat pumps, the location can be a key factor for the applicability of the measure. Systemefficiency should be considered in the design phase prior to its implementation. The integrationof the technique within the building can also be a determining factor in the selection andimplementation of the technique.

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Chapter 2

Economics
The use of alternative energy sources does not produce energy savings but compensates theenergy consumption of the store. So, these techniques are measures to compensate the energy
consumption and the carbon footprint of the operation. Own generated energy is also usuallymore expensive than external energy sources, like electricity from the grid or district heating. In
addition, the costs of renewable energy sources are quite dependent on national or regional
subsidies.
An example of the economics of an alternative energy source is a Spanish retailer, which
implemented a 100 kWp roof PV installation in a new store of 7000 m2. The payback time of
the installation is about 11 years and depends on the received subsidies. The initial investment ishigher than EUR 500.000 and the specific energy generation per year is 23 kWh per sales areasquared metre. Subsidies of EUR 0.29/kWh are foreseen when the generated electricity is soldto the national electricity grid.
Driving force for implementation
The use of alternative energy sources will reduce the rate of energy resource depletion andreduce greenhouse gases emissions. In addition, the visibility of many measures contributes toretailer image.
Reference retailers
An important number of companies have implemented alternative energy sources to improvetheir performance: Colruyt Group, Rewe, Leroy Merlin, Metro, Tesco, Carrefour, etc.
Reference Literature•
Colruyt Group, Sustainable energy policy at Colruyt Group, http://www.colruytgroup.be,2010.
•
European Parliament, Directive 2010/31/EU of the European parliament and of thecouncil of 19 May 2010 on the energy performance of buildings, Official Journal of theEuropean Union, L 153 2010, pp. 13-35.
•
Hernández, P., Kenny, P., 'From net energy to zero energy buildings: defining life cycle
zero energy buildings (LC-ZEB)', Energy and Buildings, 42, 2010, pp. 815-821.
•
Kolokotsa, D., Rovas, D., Kosmatopoulos, E., Kalaitzakis, K., 'A roadmap towards
intelligent net zero- and positive-energy buildings', Solar Energy, 2010, doi:
10.1016/j.solarener.2010.09.001.
•
Milo, A., Gaztañaga, H., Etxebarria-Otadui, I., Bacha, S., Rodríguez, P., 'Optimal
economic exploitation of hydrogen based grid-friendly zero energy buildings' Renewable
Energy, 36, 2011, 197-205.
•
Tassou, S.A., Ge, Y., Hadawey, A., Marriott, D., 'Energy consumption and conservation
in food retailing'. Applied Thermal Engineering, in press (2010), doi:
10.1016/j.applthermaleng.2010.08.023.

Best Environmental Management Practice in the Retail Trade Sector

119Chapter 2

2.2
2.2.1

Best environmental management practice to improve thesustainability of retail supply chains
Chapter structureThis chapter provides retail stakeholders with information on how retailers can improve thesustainability of their supply chains by reducing the environmental impact of their products andsuppliers, and by encouraging more sustainable consumption. Following a basic introduction in
Section 2.2.2, the scope of this chapter is described in Section 2.2.3, and a number of important
driving forces for retailers to manage their supply chains are presented in Section 0. The breadthof this chapter's scope, including multiple products, processes and environmental impacts,
necessitates an introductory overview of the scientific understanding of major environmental
impacts associated with important product groups (Section 2.2.5). Examples of 'hotspot'
environmental impacts, and responsible processes, are detailed for a cross-section of priority
products in Section 2.2.5.3 to Section 2.2.5.7. Subsequently, best practice is described in linewith other chapters in this document.
Practical retailer actions to improve supply chain sustainability are categorised and described as
distinct approaches and techniques in Section 2.2.6. Techniques regarded as essential
prerequisites for effective supply chain management are detailed in Section 2.2.6.1 to Section
2.2.6.3. Techniques involving retailers stipulating environmental standards or improvement
requirements for products and suppliers are detailed in Section 2.2.6.4 to Section 2.2.6.6, whilst
Section 2.2.6.8 outlines a technique for retailers to encourage sustainable consumption. Section
2.2.6 outlines how retailers can collaborate on research to drive supply chain sustainability.
Where possible, categorical and quantitative data are provided to measure and propose bestpractice. However, this chapter necessarily relies heavily on descriptive examples of existingretailer best practice to improve supply chain sustainability. These examples are presented ascase studies that clearly indicate how and why they represent best practice.

2.2.2

Chapter introduction

Production and consumption of retail products is a major driver of global environmentalpressures. In particular, the production and consumption of food is estimated to account for
30 % of environmental pressure in the EU-25 (EC, 2006). Typically, over 90 % of theenvironmental impact associated with products arises during production and consumption,compared with less than 10 % during handling by the retailer (EC, 2009). IKEA estimates that
raw-material extraction, supplier operations, and customer transport and use contribute 56 %,
10 %, and 28 %, respectively, towards the lifecycle GHG emissions of their products (IKEA,
2010). Many products sold by retailers are grown and manufactured in developing countries
with poor environmental standards (weak regulations and poor management practices), or
sourced from relatively small suppliers not subject to rigorous environmental regulation.
Consequently, retailers and large food manufacturing companies are often the entities with thegreatest capability to influence the environmental performance of suppliers who are at the frontline of many global environmental impacts.
There is increasing recognition that business-as-usual supply chain models are inadequate todeal with the projected global supply challenges for critical products including food. In a recent
report on food strategy, it was concluded that 'a system that is able to reconcile the often
conflicting goals of resilience, sustainability and competitiveness, and that is able to meet andmanage consumer expectation will become the new imperative' (Ambler-Edwards et al., 2009).
Retailers are seen as key drivers of the necessary changes: 'Collaborative relationships aroundthe supply network will take on a new importance…Retailers in particular will need to adapt
their practices to alter the balance of risk and reward throughout the supply chain' (AmblerEdwards et al., 2009). Retailers are strategically-positioned to drive significant and continuous
environmental improvement throughout their supply chains, and entire value chains throughBest Environmental Management Practice in the Retail Trade Sector

120Chapter 2

their influence on customers. The potential positive environmental influence of retailers' market
power is enormous.
Large individual retailers may purchase hundreds of thousands of products from many
thousands of suppliers, who themselves coordinate multiple operations and subcontractors.
Figure 2.64 demonstrates that even relatively basic products, such as textiles, are typicallysupplied via an extensive network of independent operating units, including sub-suppliers andcontractors who do not have direct contracts with retailers. Consequently, ensuring producttraceability and quality is an enormously complex task, even before consideration is given toassessing and reducing environmental impacts. Yet supply chain management provides retailers
with the greatest opportunity to drive environmental, and wider sustainability, improvement.
Through effective supply chain management, retailers can play a central role in addressing
global sustainability challenges, and achieving European policy targets.

N.B: Orange boxes represent environmental hotspots; yellow boxes represent higher environmental risk.
In some supply chains, multiple stages between the farmers and retailers may be performed by single
entities.
Figure 2.64: Simplified value chain for a cotton garment, broken down into constituent supply
chains, indicating the major inputs and outputs, and hotspot stages

Best Environmental Management Practice in the Retail Trade Sector

121Chapter 2

2.2.3

Scope of this chapter

Supply chain sustainability of course relates to the three pillars of sustainability (Figure 2.65).
Economic aspects of supply chains are well represented within the market system in which
retailers operate, and are reflected in standard financial accounting procedures. Environmental
and social aspects are not well represented within existing trading and accounting practices. The
UN's Global Compact initiative has provided guidelines for businesses to measure and improve
supply chain sustainability, much of which is relevant to retailers.

ENVIRON
MENT

SOCIALSUSTAIN-ABLEECONOMIC

Figure 2.65:

The key components of sustainability

Important aspects of social and environmental performance are listed in Table 2.28. This
document is focused on environmental aspects, but recognises that retailer actions to reduce theenvironmental impacts of product supply chains need to be coordinated with actions to improvesocial conditions (e.g. in supplier codes of conduct), within an acceptable business economic
framework, in order to secure genuinely sustainable supply chains over the longer term. The
broader definition of 'improved supply chain sustainability' is therefore used.

Table 2.28:

Supply chain social and environmental aspects relevant to the United Nation's
Global Compact principles
SocialForced/child labour
Working hours
Wages and benefits
Humane treatment
Non-discrimination
Freedom of association and collective
bargaining
Occupational safety
Occupational hygiene and conditions

Environmental
Material toxicity and chemicals
Raw material use
Recyclability/product end-of-life
Greenhouse gas emissions
Energy use
Water use and waste water treatment
Air pollution
Biodiversity

Retailers are in the early stages of assessing and improving supply chain environmental
sustainability, and different retailers are employing a range of approaches and techniques toachieve this objective. The objective of this chapter is to provide an overview of thesetechniques, identify the most effective ones, and propose best practice. This chapter deals withthe supply chain from producer to retailer, with reference to transport and logistics,
consumption, and product end-of-life in relation to optimisation of product lifecycle impacts
through supply side actions (Figure 2.64). Retailer best practice techniques with respect totransport and logistics and product end-of-life are referred to in more detail in Chapter 2.3 andBest Environmental Management Practice in the Retail Trade Sector

122Chapter 2

Chapter 2.4 respectively, whilst best practice techniques with respect to direct retail operations
are covered in Chapter 2.1.
The opportunity for retailers to influence product supply chains is greatest for, but not restricted
to, their private label (own-brand) products. The scope of retailer influence, and theapplicability of some improvement techniques, depends on the proportion of private label sales
within product groups sold by individual retailers. The sales share of private label products
varies considerably across retailers and countries (Figure 2.66). Private label products accountfor over 25 % of European retail sales, highest in Switzerland (53 %), the UK (47 %), Slovakia(44 %), Spain (42 %) and Germany (41 %) (PLMA, 2010). Some examples of private label
shares for larger retailers are 29 % for REWE, 90 % for Migros, and 98 % for Marks &Spencers (Fennel, 2009; M&S personal communication). Many small retailers do not sell
private label products.

60
50
40
30
20
10
0
Au
st
r
C
ze Be iach lgiR um
epu
D blic
en
m
a
Fi rk
nl
an
Fr d
a
G nce
er
m
an
G y
re
e
H ce
un
ga
ry
N
et Ita
he ly
rla
n
N ds
or
w
a
Po y
la
Po nd
rtu
Sl gal
ov
ak
ia
Sp
a
Sw in
e
S
U wit den
ni
z
te er
la
d
Ki nd
ng
do
m

Private label retail sales (% of total volume)

Improvement of branded product supply chains is primarily the responsibility of brandmanufacturers, who are outside the scope of this document, but some techniques referred to inthis chapter are relevant. In particular, retailers can employ choice editing, green procurement(Section 2.2.6.4) and promotion of ecological front-runners (Section 2.2.6.8) to branded as wellas private label products.

Source: data from PLMA , 2010

Figure 2.66:

The shares of private label products in retail sales across some European countries

Best Environmental Management Practice in the Retail Trade Sector

123Chapter 2

2.2.4

Drivers of retailer supply chain improvement

There is increasing awareness across businesses about the importance of managing supply
chains to reduce their environmental impact, in the context of both corporate responsibility andbusiness planning. The strong business case for improving the sustainability of supply chains
has been made by the Business for Social Responsibility (BSR) global consortium (Figure2.67).

Source: UN Global Compact and Business for Social Responsibility (2010)
Figure 2.67:

Business drivers for retailers to improve supply chain sustainability

Taking a proactive approach to improving supply chain sustainability is not just about ensuring
longer-term business viability, but is associated with stronger contemporary businessperformance (Accenture, 2009). Based on the business drivers to improve supply chain
sustainability listed in Figure 2.67, but also economic trends, evolving environmental
awareness, and the strategic importance of retailers as supply chain 'gate keepers', the critical
driving forces for retailers to reduce environmental impacts across their supply chains may besummarised:
•
•
•
•
•
•

resource price volatility: response to large increases in commodity prices, and insurance
against future price volatility;
risk management: realisation that fundamentally unsustainable rates of resource
consumption in supply chains pose a major risk to future business viability;
image and public relations: stakeholder (notably customer and shareholder) concern overenvironmental issues such as climate change;
demand and marketing: increasing customer demand for 'ecological' products, and retailer
positioning to market these more profitable value-added products;
corporate responsibility: retail directors/governance responding to increasingly evident
environmental problems;
regulation: the prospect of regulation imposing restrictions or costs on environmentallydamaging activities and products (e.g. a carbon tax)

Reference Literature
Best Environmental Management Practice in the Retail Trade Sector

124Chapter 2

•
•
•
•
•
•
•
•
•

Accenture, The Sustainable Supply Chain: Balancing cost, customer service andsustainability to achieve a high-performance supply chain, Accenture, 2009.
Ambler-Edwards, S., Bailey, K., Kiff, A., Lang, T., Lee, R., Marsden, T., Simons, D.,
Tibbs, H., Food futures: rethinking UK strategy, Chatham House, London, 2009. ISBN
9781862032118.
EC, Environmental Impact of Products (EIPRO): Analysis of the life cycle environmental
impacts related to the final consumption of the EU-25, IPTS, Seville, Spain, 2006.
EC, Towards a greener retail sector, EC DG Env, Brussels, 2009.
Fennel, D., 'Overview of private label in Europe & update on PLMA 2009', presentation
by Bord Bia in Amsterdam, 22.04.2009.
IKEA,
The
Never
EndingJob:
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, Sweden, 2010.
M&S, personal communication, telephone conversation with head of CSR 20.08.2010.
Private Label Manufacturers Association International, Private Label Today – Private
label gains in Europe http://www.plmainternational.com/en/private_label_en.htm, 2010.
UN Global Compact and Business for Social Responsibility, Supply chain sustainability:a practical guide for continuous improvement, UN, 2010.

Best Environmental Management Practice in the Retail Trade Sector

125Chapter 2

2.2.5

2.2.5.1

Scientific understanding of supply chain environmental impacts andimprovement options
Identification of some priority product groups

Efficient supply chain improvement requires accurate information on environmental impacts
associated with products. Selection, improvement, and labelling practices should be targeted
towards products, processes, aspects, and stakeholders (usually suppliers or customers) with thegreatest improvement potential. Improvement potential is determined following considerationof: (i) the scale and intensity of environmental impact; (ii) the feasibility and economics ofimprovement options. It is essential that supply chain intervention is informed by evidence
obtained from applied supply chain research.
A considerable amount of information has already been published regarding environmentalpressures associated with particular product groups. Two recent EU studies provide some useful
initial guidance as to where actions might be targeted in order to efficiently reduce theenvironmental impact of product supply chains. Some summary findings from theEnvironmental Impact of Products (EIPRO) study (EC, 2006) are presented in Figure 2.68,
Figure 2.69 and Table 2.34. Research was based on environmental pressures classified
according to eight impact categories (biotic depletion, acidification, ecotoxicity, eutrophication,
global warming, human toxicity, ozone depletion, photochemical oxidation) and aggregated
NACE code activity groupings which correspond only approximately with retail classificationof broad product groups.

Contribution to total EU25 impact (%)

60
50
40

Abiotic depletion

Acidification

Ecotoxicity

Eutrophication

Global warming

Human toxicity

Ozone-layer depletion

Photo-chemical oxidation
Percentage of EU25
expenditure

30
20
10
0
Food and alcoholic
beverages

Furnishings, household
Clothing and footwareequipment, household
maintenance*
NB: (*) Includes electricity and fuel use associated with household appliances and maintenance.
Figure 2.68:

Contributions of three major product groups to environmental pressures in the
EU25'Food and alcoholic beverages' is the largest contributory group to major environmentalpressures, on average accounting for 30 % of EU environmental pressure, and over half (58 %)of the eutrophication pressure (Figure 2.68). 'Furnishings, household equipment and household
maintenance' is responsible for a smaller but substantial share of EU environmental pressure,most notably abiotic depletion and acidification. This reflects the inclusion of product energy
consumption during consumer use in impact assessment, and highlights the importance ofconsidering upstream (consumer and end-of-life) product impacts at the design phase –Best Environmental Management Practice in the Retail Trade Sector

126Chapter 2

particularly for energy-consuming devices. 'Clothing and footwear' makes a smaller but
significant (3 %) contribution to environmental pressure in the EU-25 (Figure 2.68). Whenenvironmental pressures are normalized according to expenditure (dashed lines in Figure 2.68),
the food and alcoholic beverages product group has the greatest environmental pressure
intensity per EUR product sold. However, pressure intensities per EUR product sold vary byless than a factor of two between the clothing and footwear and food and alcoholic beverages
groups. There is considerable scope for improvement across all product groups, and theseresults highlight that:•supermarket retailers selling multiple product types should prioritise food and drinks
products for supply chain improvement;
nonetheless, it is important for retailers specializing in household furnishings and clothing
and footwear to reduce environmental impact across their product groups.

•

The EIPRO study also ranked more disaggregated product groups according to theirenvironmental pressures. Figure 2.69 summarises these results for product groups relevant to
the retail sector. There is a general correlation in the relative contribution that different products
make to different impact categories, but there are also some notable divergences whereparticular products appear to be 'hotspots' for particular pressures. For example, production andprocessing of meat and dairy products make a particularly large contribution to eutrophicationcompared with other pressures, whilst the manufacture of drugs has a particularly large ozonedepletion effect, and manufacture of apparel makes particularly large contributions toecotoxicity and eutrophication.
These results emphasise the importance of considering multiple environmental impact
categories in product lifecycle assessments. For example, it is well known that meat and dairy
product supply chains are associated with high GHG emissions, but the relative contribution ofthese supply chains to eutrophication and acidification pressures in Europe is even greater thantheir relative contribution to global warming pressure. Thus, any actions aimed at reducing the
GHG intensity of these supply chains should also address emissions of acidifying gases to air
and diffuse emissions of nutrients to water.

Potato chips, snacks

FruitsPhotochem. pollution
Non-durable home goods

Ozone depletion

Candy + confectionery

Human toxicity

House furnishings
Carpets and rugs

Eutrophication

Seafood

Ecotoxity

Roasted coffee

Acidification

Vegetables

Abiotic depletion

Cigarettes

Drugs

Bread, cake, etc

Edible fats and oils

CheeseApparel manufacture

Global warming

Fruit + vegetables

2

Soft drinks

4

Fluid milk

6

Poultry processing

8

Prepared meats

EU15 impact contribution (%)

10

Meat production

120

NB: Product groups are ordered according to global warming impact ranking.
Source: based on data from the EC EIPRO study (EC, 2006).
Figure 2.69:

The relative contribution of different product groups to eight environmental
impacts in the EU-25

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2.2.5.2

Classification of widely used environmental standards

An important mechanism to improve product supply chains is certification of products andsuppliers according to appropriate, widely recognised third party environmental standards. A
large number of such standards exist, but they vary widely in their geographical and productcoverage, and their environmental scope and stringency. This document recommends extensive
use of appropriate third party standards – for green procurement by retailers (Section 2.2.6.4)
and to identify front-runner environmental products to consumers to encourage green
consumption (Section 2.2.6.8). This section provides a brief overview of how these standards
can be classified by retailers according to the level of environmental protection they represent.
Firstly, readers are guided to the informative websites of the Global Ecolabelling Network(http://www.globalecolabelling.net/)andthe
Ecolabel
Index(http://www.ecolabelindex.com/ecolabels/). This document cannot be exhaustive in terms ofthird party environmental standard classification, and focuses on the most widely used
standards, primarily those for which sales data were provided by retailers (Table 2.29). Thesestandards, and the classification criteria outlined below, are intended to offer retailers andverifiers a practical and indicative, but not exhaustive, basis for retailer performance assessment
in relation to product supply chain sustainability.
In the first instance, there are a range of standards that may be used by retailers for green
procurement. These are classified into "Basic", "Improved", and "Exemplary" (Table 2.29).
Basic standards (Table 2.29 and Table 2.31) are defined as a group of requirements that aim toavoid the most environmentally-damaging practices, and approximate to minimum legal
environmental requirements in Europe. The main requirements of basic standards are:
•
•
•
•
•

compliance with local regulations
record keeping for important environmental aspects (especially land use, chemical use,water management (Table 2.31)
implementation of an environmental management plan (see GlobalGAP AF2.2.2 andAF5.1.1 requirements in Table 2.31)
in some cases, exclusion of the most damaging practices or products (e.g. red-listed fish)in some cases, specific benchmarks for a minority of important environmental aspects.

Improved standards (Table 2.29 and Table 2.32) are defined as a group of specific requirementsthat address important environmental aspects more rigorously and more completely than basic
standards. In addition to requirements contained in basic standards, improved standards include
the following requirements in relation to important environmental aspects:•••

specific management practices associated with significant environmental improvement(UTZ criteria in Table 2.32)
compliance with quantitative environmental performance benchmarks (e.g. BSI
benchmarks listed in Table 2.46 in section 2.2.6.4)
demonstrated continuous improvement within a specified framework (e.g. UTZ criteria in
Table 2.32, BCI criteria described in Case study 2.7).

Exemplary standards (Table 2.29 and Table 2.33) are defined as a group of specificrequirements that address important environmental aspects sufficiently robustly and completelythat certified products may be defined as environmentally sustainable (e.g. FSC, see Table
2.33). For products whose primary environmental impact is the depletion of renewable
resources, such as wood and fish, exemplary standards may be quite narrowly defined as
requirements for a sustainable harvest rate and avoidance of ecosystem damage throughbiodiversity loss, soil erosion, seabed damage, etc. Thus, the Forest Stewardship Council (FSC)and Marine Stewardship Council (MSC) labels are classified as exemplary. The Programme for
the Endorsement of Forestry Certification (PEFC) introduced new requirements for certificationof national forest certification schemes in 2010 that compare with FSC requirements in terms ofcompleteness (PEFC Council, 2010). However, there is concern about the rigour andconsistency of the verification process performed by PEFC approved national forest
Best Environmental Management Practice in the Retail Trade Sector

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Chapter 2

certification schemes hitherto (WWF, 2009; Technical Working Group, 2010) – consequently,
PEFC certification has been classified as improved, rather than exemplary, in Table 2.29.

Table 2.29:

Level

BASIC

Proposed classification of widely recognised third party environment-related
standards commonly used in green procurement

Widely used standards
GG: Global Good Agricultural
Practice(andbenchmarked
standards)
OT: Oeko-Tex 1000
NPC: National/regional production
certification (e.g. Red Tractor British
origin certification)
RLF: Red-listed fish (deselection)

Product groups

References

Crops andlivestock

GlobalGAP,
2009.

TextilesOeko-Tex, 2010

All food

AssuredFoodStandards, 2010.

Fish

BCI: Better Cotton Initiative
BCRSP:
Basel
Criteriaon
Responsible Soy Production
BSI: Better Sugarcane Initiative(*)
4C: Common Code for the Coffee
Community Association

Greenpeace,
2010;
IUCN,
2010; MSC, 2010.
BCI, 2010

Cotton products
Soy (feed supporting
ProForest, 2004.
dairy, egg and meat)
Sugar products
BSI, 2010
4C Association,
Coffee2010
Agricultural products
FT: Fairtrade (an exemplary socialfromdeveloping Fairtrade, 2009
standard)
regions
IMPR- RA: Rainforest Alliance
Agricultural products
SAN, 2010
OVED(products from the tropics)
from tropics
RSPO: Round Table on Sustainable
RSPO, 2007
Palm oil products
Palm Oil
RSPO, 2009
PEFC:
Programme
for
the
PEFC
Council,Endorsementof
Forestry Wood and paper
2010
Certification
RTRS: Round Table on Responsible Soy (feed supporting
RTRS, 2010
Soy
dairy, egg and meat)
Cocoa, coffee, palm
UTZ
UTZ, 2010
oil, tea
Wood and paper
FSC, 2002
EXEMP- FSC: Forest Stewardship Council
LARY
MSC: Marine Stewardship Council
Wild-catch seafood
MSC, 2010(*) The BSI standard is still awaiting official EU recognition as a voluntary scheme, and although it is not yet in use
by retailers or food processors, criteria contained within it and wide stakeholder participation in its development
suggest it will be a good standard.

In the second instance, products may be certified and labelled with standards that, by definition,
identify them as front-runner ecological products (Table 2.30). Such standards are used to
inform environmental selection by customers, and are usually associated with a considerable
price premium. Therefore, they are not suited for universal green procurement. Environmental
requirements for the award of widely recognised ISO Type-I environmental labels such as the
EU Ecolabel, Blue Angel and Nordic Swan are based on multi-criteria lifecycle assessment of
product groups, and are updated to reflect the best performing products within their respective
product groups (e.g. the top 10–20 % for the EU Ecolabel: EC, 2010). For reasons outlined in
Section 2.2.5.11, organic certification is also regarded as an exemplary front-runner standard(Table 2.30). Organic certification should be at least compliant with regulations EC No
889/2008 and EC No 834/2007 on implementation of organic production and labelling. Somestandards, such as the Global Organic Textile Standard, go beyond basic organic requirements
Best Environmental Management Practice in the Retail Trade Sector

129Chapter 2

to ensure high levels of environmental performance throughout the processing chain (GOTS,
2008).

Table 2.30: Labels commonly used to identify environmental front-runner products to customers

Front runner label

Product groups

References
Blauer-engel,2010;
EL: Environmental labels (Blue Angel,Non-food products
EC, 2010; Nordic†
EU Ecolabel, Nordic Swan) ( )Ecolabelling, 2010
EC, 2007; EC, 2008;
OC: Organic (EC standard, GOTS, Food and natural fibre GOTS, 2010; KRAV,KRAV, Soil Association…) (†)
products
2009; Soil Association,
2010

Key aspects and environmental benefits of standards listed in Table 2.29 are summarised in
Section 2.2.6.4 in relation to choice editing and green procurement. Key aspects andenvironmental benefits of front-runner labels listed in Table 2.30 are summarised in Section
2.2.6.8 in relation to labelling for consumers.
Table 2.31 to Table 2.33 contain some of the most relevant environmental requirements takenfrom one example standard at each level of classification for green procurement standards. The
GlobalGAP basic standard, applicable to all farms, contains few mandatory environmental
requirements (Table 2.31), although there are additional standards for specific types of crop andlivestock production (GlobalGAP, 2010).

Table 2.31:

An example of relevant environmental requirements contained in a basic
environmental standard

Environmental requirements from the general GlobalGAP standard (All-farm control points)
AF 2.2.2. A management plan that has implemented strategies to meet the objectives of this specific control
point (site management) has been developed. (This plan should include one or more of the following: habitat
quality, soil compaction, soil erosion, emission of greenhouses gases where applicable, humus balance,
phosphorus balance, nitrogen balance, intensity of chemical plant protection).
AF 4.2.3. All possible waste products (such as paper, cardboard, plastic, oil, etc) and sources of pollution(e.g. fertiliser excess, exhaust smoke, oil, fuel, noise, effluent, chemicals, sheep dip, feed waste, dead ordiseased fish, algae produced during net cleaning, etc.) produced by the farm processes have been listed.
AF 4.1.2. Visual assessment that there is no evidence of breeding grounds in areas of waste/litter in theimmediate vicinity of the production or storage buildings. Incidental and insignificant litter and waste on
The designated areas are acceptable as well as the waste from the current day’s work. All other litter andwaste has been cleared up. Areas where produce is handled indoors are cleaned at least once a day.
AF 5.1.1. There must be a written action plan which aims to enhance habitats and increase biodiversity on
the farm. This can be either a regional activity or individual plan, if the farm is participating in or covered byit. This includes knowledge of IPM practices, of nutrient use of crops, conservation sites, etc.
NB: Control points and compliance criteria for all-farm integrated farm assurance.
Source: GlobalGAP, 2009.

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130Chapter 2

The UTZ standard contains a range of specific management criteria covering many importantenvironmental aspects of coffee production (Table 2.32). Additional standards are available forcocoa, palm oil and tea production (UTZ, 2010b).

Table 2.32:

An example of relevant environmental requirements contained in an improved
environmental standard
Key environmental requirements from the UTZ standard

4.A.2. The producer uses practices to conserve and recuperate soil structure and fertility. There is visual and/or
documented evidence that these practices are used.
4.A.3. The producer uses techniques to prevent soil erosion. There is visual and/or documented evidence that one ofthese techniques is used. Special attention is given after (re)planting.
5.A.2. The responsible person (producer, certificate holder or external advisor) has a documented fertiliser
programme in place. This is to ensure that fertilisers are applied judiciously, preventing the amount applied fromexceeding the needs of the crop and the storage capacity of the soil. The responsible person demonstrates thatconsideration has been given to nutritional needs of the crop and soil fertility.
6.B.1. The certificate holder has a water action plan to optimise irrigation water use and reduce loss and waste ofwater.
6.B.2. The certificate holder uses the most efficient and commercially practical water delivery system and/or methods
to ensure the best utilisation of water resources. The certificate holder shows the efficiency of the irrigation system interms of the amount of water used per Mt of coffee produced.
6.C.1. The certificate holder makes an annual risk assessment of phytosanitary, chemical or physical pollution orcontamination of irrigation water sources. Irrigation water is analysed at a frequency according to the results of therisk assessment. In case of adverse results, records are kept of the actions taken.
6.D.1. Irrigation water is extracted from sustainable sources.
7.A.11. The producer applies recognised IPM techniques where they are technically feasible. The producer knows
and is able to show evidence of implementing at least one of each of the following IPM activities:••••

prevention, reduction, monitoring and intervention
to reduce pest attacks
use low toxicity products
use biological products where possible.
11.A.1. The certificate holder conducts a risk assessment on environmental impacts. The assessment is regularly
reviewed and kept up to date. The assessment can be done regionally and can be conducted by an external party.
11.A.2. Based on the risk assessment on environmental impacts (11.A.1), the certificate holder makes andimplements an action plan how to address these environmental risks. Implemented actions are documented.
11.A.3. The certificate holder has a conservation plan or participates in a regional biodiversity or forest management
plan.
11.B.1. The producer protects and conserves all the water streams and sources (incl. ground water) on the farm fromcontamination and pollution.
11.B.2. The producer allows a strip of native vegetation to grow along water streams to control erosion, filter out
agrochemicals and protect the wildlife habitat.
11.C.1. Degradation and/or deforestation of primary forest is prohibited. The producer demonstrates that there has
been no degradation and/or deforestation of primary forest in the 24 months prior to the date of first registration withUTZ CERTIFIED.
11.C.2. The producer does not plant new coffee on land that is not classified as agricultural land and/or approved for
agricultural use.
11.C.3. Deforestation of secondary forest is only allowed if all of the following are complied with: legal land title isavailable; government permits are available (if required); there is compensation with at least equal ecological value,
to be confirmed by an independent expert report.
11.C.4. When using wood for drying of coffee, the producer obtains this wood from managed forests or from thepruning of crops or shade trees, and not from native forests, unmanaged community forests, borders of waterways
and other sources of water or protected areas.
11.C.5. The producer uses shade trees whenever this is compatible with the local coffee production practices andtakes into consideration the productivity.
11.C.7. Coffee production does not take place in protected areas. Coffee production does not take place in theimmediate vicinity (2 km) of these areas if this is not allowed in the official management plan for the area.
11.C.8. If coffee production is in the immediate vicinity (2 km) of a protected area or biological corridor, thecertification holder is in contact with the park authorities.
11.D.1. The certification holder records and monitors the use of energy in production and processing.
11.D.4. The producer uses the by-products of coffee growing and processing (pulp, hulls, husk and parchment) as
fertiliser, compost, mulch or energy source (for machine drying).
NB: Certified producers must implement all these requirements within four years of certification, but not all
requirements are mandatory for initial certification.
Source: UTZ, 2010. Code of conduct for coffee.

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The FSC standard contains rigorous requirements for forestry operators that ensure sustainable
forest harvest and management, for example requiring at least the preservation of existing
ecological functions (Principle 6.3 in Table 2.33) and the avoidance of any loss of highconservation value forest area (Principle 6.10 in Table 2.33).

Table 2.33:

An example of relevant environmental requirements contained in an exemplary
environmental standard

Some key environmental requirements from the FSC Standard
Principle #6: Environmental impact. Forest management shall conserve biological diversity and its associated values,
water resources, soils, and unique and fragile ecosystems and landscapes, and, by so doing, maintain the ecological
functions and the integrity of the forest.
6.1. Assessment of environmental impacts shall be completed – appropriate to the scale, intensity of forest management
and the uniqueness of the affected resources – and adequately integrated into management systems. Assessments shall
include landscape level considerations as well as the impacts of on-site processing facilities. Environmental impacts shallbe assessed prior to commencement of site-disturbing operations.
6.2. Safeguards shall exist which protect rare, threatened and endangered species and their habitats (e.g. nesting andfeeding areas). Conservation zones and protection areas shall be established, appropriate to the scale and intensity offorest management and the uniqueness of the affected resources. Inappropriate hunting, fishing, trapping and collecting
shall be controlled.
6.3. Ecological functions and values shall be maintained intact, enhanced, or restored, including:a) forest regeneration and successionb) genetic, species, and ecosystem diversityc) natural cycles that affect the productivity of the forest ecosystem.
6.4. Representative samples of existing ecosystems within the landscape shall be protected in their natural state andrecorded on maps, appropriate to the scale and intensity of operations and the uniqueness of the affected resources.
6.5. Written guidelines shall be prepared and implemented to: control erosion; minimise forest damage during
harvesting, road construction, and all other mechanical disturbances; and protect water resources.
6.6. Management systems shall promote the development and adoption of environmentally-friendly non-chemical
methods of pest management and strive to avoid the use of chemical pesticides. World Health Organization Type 1A and1B and chlorinated hydrocarbon pesticides; pesticides that are persistent, toxic or whose derivatives remain biologically
active and accumulate in the food chain beyond their intended use; as well as any pesticides banned by international
agreement, shall be prohibited. If chemicals are used, proper equipment and training shall be provided to minimise healthand environmental risks.
6.7. Chemicals, containers, liquid and solid non-organic wastes including fuel and oil shall be disposed of in anenvironmentally appropriate manner at off-site locations.
6.8. Use of biological control agents shall be documented, minimised, monitored and strictly controlled in accordancewith national laws and internationally accepted scientific protocols. Use of genetically modified organisms shall be
prohibited.
6.9. The use of exotic species shall be carefully controlled and actively monitored to avoid adverse ecological impacts.
6.10. Forest conversion to plantations or non-forest land uses shall not occur, except in circumstances where conversion:a) entails a very limited portion of the forest management unitb) does not occur on high conservation value forest areasc) will enable clear, substantial, additional, secure, long term conservation benefits across the forest management unit.
Principle #7: Management plan
A management plan – appropriate to the scale and intensity of the operations – shall be written, implemented, and kept
up to date. The long term objectives of management, and the means of achieving them, shall be clearly stated. Four
specific criteria listed under this principle.
Principle #8: Monitoring and assessment
Monitoring shall be conducted -- appropriate to the scale and intensity of forest management -- to assess the condition of
the forest, yields of forest products, chain of custody, management activities and their social and environmental impacts.
Five specific criteria are listed under this principle.
Principle #9: Maintenance of high conservation value forests
Management activities in high conservation value forests shall maintain or enhance the attributes which define suchforests. Decisions regarding high conservation value forests shall always be considered in the context of a precautionary
approach. Four specific criteria are listed under this principle.
Principle #10: Plantations. Plantations shall be planned and managed in accordance with Principles and Criteria 1 – 9,
and Principle 10 and its Criteria. While plantations can provide an array of social and economic benefits, and cancontribute to satisfying the world's needs for forest products, they should complement the management of, reducepressures on, and promote the restoration and conservation of natural forests. Nine specific criteria listed under thisprinciple.
Source: FSC, 2002. Principles and criteria for forest stewardship

Table 2.34 provides an overview of the most important product groups, according to theircontribution to the eight environmental impacts considered in the EIPRO study (EC, 2006), andalso their estimated contribution to biodiversity impacts (primarily through land use pressures
Best Environmental Management Practice in the Retail Trade Sector132

Chapter 2

leading to natural habitat loss, and unsustainable harvesting of natural resources). The major
processes and lifecycle stages contributing to impacts are indicated, along with relevant third
party environmental standards available to control these processes and impacts. The
environmental importance of food and drink products, especially animal-related, is apparent
from Table 2.34.
In order to provide some more insight into the measurement and sources of environmental
impacts over product lifecycles, some examples of environmental pressures and source
processes are provided for a number of priority products in Section 2.2.5.3 to Section 2.2.5.9.
These examples provide a background and reference point for particular standards and actions
applied to the relevant product groups in subsequent sections of this chapter.
Reference literature•
Assured Food Standards homepage,
http://www.redtractor.org.uk/site/REDT/Templates/GeneralWho.aspx?pageid=14&cc=G
B, November 2010.
•
BCI, Better Cotton Initiative Production Principles and Criteria 2.0,
http://www.bettercotton.org/, 2010.
•
Blauer-engel homepage, http://www.blauer-engel.de/en/index.php, July 2010.
•
BSI, Better Sugarcane Initiative Production Standard – July 2010,
http://www.bettersugarcane.org/certification.html, 2010.
•
4C Association, The 4C Code of Conduct version approved in May 2009, including
generic indicators approved in February 2010, http://www.4c-coffeeassociation.org/en/,2010.
•
EC, Environmental Impact of Products (EIPRO): Analysis of the life cycle environmental
impacts related to the final consumption of the EU-25, IPTS, Seville, Spain, 2006.
•
EC, 'Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production andlabelling of organic products and repealing Regulation (EEC) No 2092/91', Official
Journal of the European Union L 189/1 (20.07.2007).
•
EC, 'Commission Regulation (EC) No 889/2008 of 5 September 2008 laying down
detailed rules for the implementation of Council Regulation (EC) No 834/2007 onorganic production and labelling of organic products with regard to organic production,labelling and control', Official Journal of the European Union L 250/1 (18.09.2008).
•
EC, 'Regulation (EC) No 66/2010 of the European Parliament and of the Council of 25
November 2009 on the EU Ecolabel', Official Journal of the European Union L 27/1
(30.01.2010).
•
Fairtrade, Generic Fairtrade Standards for Small Producers' Organizations. Version:
15.08.2009, http://www.fairtrade.net/, 2009.
•
FSC, FSC Principles and criteria for forest stewardship FSC-STD-01-001 (version 4-0),
http://www.fsc.org/1093.html, 2002.
•
GlobalGAP, Control Points and Compliance Criteria: Integrated Farm Assurance
Introduction. English Versions V.3.0-3_Apr09 Valid from 29 April 2009, GlobalGAP,
2009.
•
GOTS, Global Organic Textile Standard Version 2.0. International Working Group on
Global Organic Textile Standard, http://www.global-standard.org, 2008.
•
Greenpeace, International seafood red list,
http://www.greenpeace.org/international/seafood/red-list-of-species, 2010.
•
KRAV, Standards for KRAV-certified production. Edition January 2009,http://www.krav.se/System/Spraklankar/In-English/KRAV-standards/, 2009.
•
MSC, MSC Fishery Standard. Principles and Criteria for Sustainable Fishing. Version
1.1 (1 May, 2010), http://www.msc.org/, 2010.
•
Nordic Ecolabelling, The criteria process, http://www.nordicecolabel.org/Criteria/TheCriteriaProcess.aspx, 2010.
•
Oeko-Tex, Oeko-Tex Standard 1000 Edition 02/2010, http://www.oekotex.com/OekoTex100_PUBLIC/content5.asp?area=hauptmenue&site=gruendefuereinfue
hrung&cls=02, 2010.
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133Chapter 2

•
•
•
•
•
•
•
•
•
•

PEFC Council, PEFC ST 1003:2010. PEFC International Standard Requirements forcertification schemes, http://www.pefc.org/, 2010.
ProForest, 2010, The Basel Criteria for Responsible Soy Production August 2004, Vers.
2005-02-16, ProForest, Oxford, UK.
RSPO, RSPO Principles and Criteria for Sustainable Palm Oil Production Including
Indicators and Guidance, http://www.rspo.org/, 2007.
RSPO, RSPO Supply Chain Certification Systems November 2009 (Approved by RSPO
Executive Board 5 November 2009), http://www.rspo.org/, 2009.
RTRS, RTRS Standard for Responsible Soy Production Version 1.0 (10 June, 2010),
http://www.responsiblesoy.org/, 2010.
SAN, SAN Sustainable Agriculture Standard July 2010, http://www.rainforestalliance.org/agriculture/standards/farms, 2010.
Soil Assocition, Soil Association organic standards for producers. Revision 16.3,
www.soilassociation.org/organicstandards, 2010.
Technical Working Group, 'Technical Working Group for the Retail Trade sector',
Workshop in Seville, Spain, 18–19 November 2010.
UTZ, UTZ Certified Good Inside Code of Conduct For Coffee. Version 1.1 - January
2010, http://www.utzcertified.org/, 2010.
WWF, Analysis of the FSC and PEFC Systems for Forest Certification using the FCAG
2008, http://assets.panda.org/downloads/2009_01_27_final_fcag_summary.pdf, 2010.

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Table 2.34:

Summary of key stages and processes that contribute towards the environmental burden associated with supply chains for high environmental impact
product groups, and relevant, widely-applied (or promising new, in brackets) third-party environmental standards

Product group

Cigarettes
Clothes
Coffee
Dairy
Drugs
Fruit and veg
Fats and oils
Grain products

Key processes

Fert.
appl.

Manure Animal
managem husbandry
ent

Irrigation

Pesticide Processappl.
ing

Wastewater

GOTS*,OX

Poultry, eggs
Red meat
Seafood
Soft drinks
Sugar

Packag- Animal Habitat Resource
ing
feed
displace- consumpti
ment
on

Use
phase

End-oflife

EL

EL

EL

EL

Tobacco production, paper production
Cotton cultivation, flax cultivation, textile
processing, polyester production, leather

BCI , FT,OCBCI , FT,OCBCI , FT,OC

Coffee cultivation, processing

4C, FT,
UTZ, OC

4C, FT,
UTZ, OC

4C, FT,
UTZ, OC

Animal feed production, animal husbandry,
manure management, land use

GG, NPC, RA, GG, NPC, RA, GG, NPC, RA,
OC
OC
OC

GOTS*,OX

4C, FT,
UTZ, OC

Manufacture, packaging, transport

NPC, RAB-WW**

Cultivation, greenhouse heating, transport (airGG, FT, OC
freight)

GG, FT, OC GG, FT, OC

Cultivation, processing, land use

NPC,RSPO,RT
RS

NPC,RSPO,RT NPC,RSPO,RT
RS
RS

Cultivation, processing, land use

NPC, GG,
OC

NPC, GG,
OC

NPC, GG,
OC

NPC, GG,
OC

NPC, GG,
OC

NPC, GG,OC

NPC,RSPO,RT
RS

NPC, GG,OC

Harvest, manufacture, transport,
Animal feed production, animal husbandry,
manure management
Animal feed production, animal husbandry,
manure management, land use
Harvesting, processing, transport (feed forfish-farms)
Sugar production, processing, packaging,transport
Cultivation (type of feedstock), processing,transport

BCI , FT,OC

GG, RA,
RTRS, OC

Manufacture, packaging, transport, use,
Household Chemicals
disposalHousehold goods (non- Harvest, manufacture, transport, resource use,
durable)disposalHousehold FurnitureTransport

EL

B-WW**,
EL

EL

B-WW**,
EL

EL

B-WW**,
EL

EL
EL
FSC, PEFC FSC, PEFC
GG, RTRS,OC

NPC, GG,
OC

NPC, GG,
RA, RTRS,OC

NPC, RA(ASC), OC(ASC), MSC,
(ASC), MSC
OC(BSI), FT,OC(BSI), FT,OC(BSI), FT,OC(BSI), BWW**(BSI), FT,OC(BSI), FT,OC(BSI), FT,OC(BSI), FT,OC(BSI), FT,OC(BSI), BWW**(BSI), FT,OC(BSI), FT,OC(*) Other processes covered by GOTS are included under OC.
(**) B-WW is a specific waste water quality guideline, not a product standard.
4C, Common Code for the Coffee Community; (ASC) Aquaculture Stewardship Council (not finalised); BCI, Better Cotton Initiative; (BSI), Better Sugar Initiative (not finalised as standard); BWW, BSR Waste Water Quality Guidelines; EL, Ecolabel; FSC, Forest Stewardship Council; FT Fairtrade; GG, Global Good Agricultural Practice; GOTS, Global Organic Textile Standard; MSC,
Marine Stewardship Council; NPC, National (or regional or local) production Certification; OC, Organic; OX, Oekotex 1000; PEFC, Programme for the Endorsement of Forestry Certification
schemes; RA, Rainforest Alliance; RSPO, Roundtable on Responsible Palm Oil; RTRS, Roundtable on Responsible Soy (alternative is Basel Criteria on Responsible Soy Production).

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2.2.5.3

Product category example 1: meat and dairy production

Impacts
The importance of meat and dairy production in terms of environmental impact was highlighted
in Section 2.2.5, in particular Figure 2.69. Specifically, it has been calculated that meat anddairy consumption contributes 24 % towards environmental impact from final consumption in
the EU-27, whilst contributing 6 % towards economic activity (EC, 2008). For individual
impact categories, meat and dairy production contribute between 6 % (mineral extraction) and
47 % (aquatic ecotoxicity). Aquatic and terrestrial eutrophication, nature occupation andacidification impacts are also high (25–39 %). Greenhouse gas emissions and other major
environmental pressures are dominated by the following livestock system processes:
•
•
•
•
•
•

animal husbandry
feed production
manure management
fertiliser application
fertiliser manufacture
land occupation (expansion into (semi-)natural ecosystems).

To provide a brief example of global warming pressures attributable to milk and beef supply
chains, the freely-available Global Emission Model of Integrated Systems (GEMIS) tool (ÖkoInstitute, 2008) was used to assess the hundreds of individual processes that contribute to thelifecycle GHG emissions of these products. Processes were classified according to five maincategories (Figure 2.70 and Figure 2.71), and highlight the importance of non-energy-related
emissions of methane (primarily from enteric fermentation within cows' digestive systems,
represented by animal husbandry) and nitrous oxide (primarily from manure management andfertiliser application). Transport and waste typically make minor contributions to the lifecycle
GHG emission burdens (carbon footprints), and overall environmental footprints, of theseproducts.
1.0

Lifecycle GHG emissions kg CO2 eq.

0.9

Energy*
CO2

0.8

Waste

0.7
0.6
N2O

Transport

0.5
0.4

Fertilizer

0.3
CH4

0.2

Animalhusbandry

0.1
0.0
Supply 1 kg Milk(*) Energy includes all direct and indirect energy associated with agricultural operations, excluding fertiliser
manufacture and transport.

Figure 2.70:

The origins and composition of GHG emissions arising during the production of 1
kg of milk, based on average German conditions, calculated using the GEMISLCA tool

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136Chapter 2
16
Energy*HCFCs/HFCs

14

CO2

kg CO2 eq.

12

Waste

10
N2O

8

Transport

6
CH4

4

Fertilizer

Animalhusbandry20
Supply 1 kg Beef frozen(*) Energy includes all direct and indirect energy associated with agricultural operations, excluding fertiliser
manufacture and transport.

Figure 2.71:

The origins and composition of GHG emissions arising during the production andstorage of 1 kg of frozen beef, based on average German conditions, calculatedusing the GEMIS LCA tool

Improvement options
The 2008 EC study on the environmental improvement potential of meat and dairy products
recommended the following improvement potentials to reduce impacts associated with
consumption by 20 %:
•
•
•
•
•
•
•
•
•
•
•

plant catch crops during winter;
improve growing practice and yields in low-yield areas;
optimise protein feeding for pigs and dairy;
reduce pH of liquid manure;tighten manure-application rules;
reduce copper in pig and dairy cattle diets;
introduce methane-reducing diets for dairy cattle;
biogasification of manure from pigs and dairy cows;
home-delivery of groceries;
power saving across production-to-consumption chain;household meal planning.

In summary, the farming system (e.g. specialised versus integrated), animal husbandry, feed
types and sources, and manure/fertiliser management are the processes with the greatest
potential for modification to reduce GHG emissions and other impacts such as eutrophication. A
number of no-regret efficiency options exist, such as ensuring good animal health andassociated productivity, whilst the scope of management decisions can easily be expanded toconsider lifecycle environmental pressures (e.g. when determining optimum slaughter age forbeef-cattle).
Relevant basic environmental standards that avoid worst impacts, including expansion into
(semi-)natural habitats, include:

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Chapter 2••

GlobalGAP
National (or regional/local) Production Certification

The Rainforest Alliance standard may also be applied to meat from major source areas in central
and South America, in particular to indicate that grazing land has not recently displaced forest
or natural grassland habitats. Meanwhile, organic certification indicates lower resource use andguarantees minimal ecotoxicity pressures.
However, red meat and dairy production is not widely certified according to improved or
exemplary standards, and there are various alternative approaches that farmers can adopt toreduce impacts – including intensification, extensification, or diversification into integrated
systems. The most appropriate approach depends on local factors (e.g. the quality andavailability of land, feed sources). Therefore, we propose that the most effective way to drive
improvement in the short-term is to encourage monitoring and benchmarking of environmental
performance across farmers, and disseminate best practice identified from front-runner farms.
Some retailers are developing closer links with meat and dairy farmers to monitor performanceand encourage environmental improvement in this manner: See Case study 2.8 in section
2.2.6.6.

2.2.5.4

Product category example 2: textiles (cotton production)

ImpactAccording to a report by MADE-BY (2010), textile production is dominated by polyester (40 %of the global fibre market) and cotton (35 % of the global fibre market). A separate report by
MADE-BY (2009) classified the major textile fibres according to their overall environmental
impact, based on six impact categories: global warming, human toxicity, ecotoxicity (eachweighted 20 %), and energy input, water input, land use (each weighted 13.3 %). Polyester is
rated as Class D, whilst cotton is rated as Class E (Table 2.35). Wool is another well known andhigh impact textile fibre, but is a considerably smaller constituent of global textile production.
This section focuses on the fibre responsible for the largest share of the global environmental
impact attributable to textile production: cotton.
Table 2.35:

Ranking of different textile fibres according to environmental performance by
MADE-BY

Class AClass BClass CClass DClass E

Unclassified

Recycled
cottonRecycled nylon
Recycled
polyesterOrganic hemp
Organic
flax(linen)Tencel(Lenzing
lyocell
product),
Organic
cottonIn conversion
cottonConventional
hemp
Ramie
PLA
Conventional
flax (linen)

VirginpolyesterPoly-acrylic
Lenzing-modal(viscose
product)

Conventional
cottonVirgin nylon
Rayon-cuprammonium
Bamboo viscose
Wool
Generic viscose

Silk
Organic wool
Leather
Elasthane(Spandex)AcetateCashmerewool
Alpaca wool
Mohair wool
Fiber-basebambooSource: (MADE-BY, 2009)

Worldwide, 35 million ha of land are under cotton production (2.5 % of global arable land),mainly in India, US, China and Pakistan. The global average yield of 1670 kg seed cotton(584 kg lint) per ha varies considerably across regions, reaching 3837 kg seed cotton per ha in
Israel (WWF, 2007). Cotton cultivation accounts for 8–10 % of world pesticide use, including
50 % of pesticide use in developing countries where handling practices are often poor (e.g. noprotective clothing worn) and where worker exposure leads to a significant percentage ofBest Environmental Management Practice in the Retail Trade Sector138

Chapter 2

workers experiencing pesticide poisoning. On average globally, cultivation for one kg cotton
lint requires 8 506 l of water, and up to 20 217 l in India (three quarters of cotton production is
irrigation-fed). Flooding of cotton fields for irrigation can damage plant roots, increase weed
invasion, result in high evaporative water losses and increase the risk/rate of soil salinisation.
Further up the cotton value-chain, processing, dyeing and finishing of cotton in textile
production can require a further 200 l per kg textile, and is associated with significant waterpollution (e.g. COD loading).
India is the third largest cotton producer in the world, but productivity is low – on average 300
to 463 kg cotton lint per ha (CABI, 2009), reflecting poor seed supply, fibre contamination, andpoor management practices. In Pakistan, another major cotton producer, yields have begun todecrease owing to poor seed quality (including supply of counterfeit hybrid seeds) and limited
technical support. Similarly in West Africa, constraints to cotton production include poor seedsupply, poor marketing structures, and lack of technical support (CABI, 2009).
Improvement options
There is considerable potential to improve the efficiency, and reduce the environmental impact,of cotton cultivation globally. Reducing resource use per unit output improves the financial
security, and also the social conditions, on the many small family farms that produce cotton.
Furrow irrigation methods can reduce water use by 50 %, and more advanced drip-feed
irrigation systems can reduce water use by up to 70 % (WWF, 2007). The UN Food andAgricultural Organisation (FAO) promote an Integrated Pest Management (IPM) system – apractical approach to reduce chemical-pesticide use that includes the use of pheromones andnatural pest predators, improved crop rotation practices, and highly targeted application ofchemical pesticides (FAO, 2010). Implementation of IPM in a project involving 8 274 farmers
in Punjab reduced pesticide use by 50 %, increased yields by 11 %, and increased profits by
46 % (CABI, 2009). IPM has therefore been recommended as Better Management Practice(BMP) for cotton farmers under the Better Cotton Initiative (Case study 2.7 in Section 2.2.6.5),
and in Fairtrade standard criteria.
Organic cotton cultivation is another BMP option, particularly for smallholder farmers in
isolated areas with poor access to agro-chemicals, and farmers who achieve low yields on
marginal agricultural land, because it:•allows inter-cropping with food crops•
reduces expenditure•
reduces the risk of pesticide poisoning (smallholders often lack protective clothing)•
improves soil quality•
enables farmers to obtain a price premium.
MADE-BY (2009) classifies organic cotton as Class B in terms of environmental impact,
indicating considerably better environmental performance than conventional cotton which isranked as Class E (Table 2.35).
Best practice for cotton farmers includes:••••

use of furrow or drip irrigation, where irrigation is required
Integrated Pest Management to minimise synthetic chemical applications
nutrient management planning to optimise fertiliser use efficiency
certified organic production.

Differing soil and climatic conditions necessitate regional-specific BMP research to optimise
production. CABI (2009) suggest that the 29 % drop in cotton price in late 2008, coupled withdecreasing global demand and subsidies given to cotton producers in developed countries,
threatens the implementation of BMP in developing countries. Most improvement schemes have
involved finance from foreign donors, and require long-term support to disseminate BMPs
widely (e.g. through farmer field schools, training of facilitators, and resource centres (WWF,2010).
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Chapter 2

Retailers can play an important role in driving environmental improvement across cotton supply
chains, through:•••green procurement of recycled or certified cotton (e.g. BCI 'better cotton', Fairtradecotton, or cotton from Oekotex-1000 certified suppliers, Section 2.2.6.4)
providing funding and support for dissemination of more efficient cultivation (e.g. the
BCI programme, Section 2.2.6.6)
collaborating with suppliers to increase the availability of organic cotton (C&A, Casestudy 2.11 in section2.2.6.8; Coop Switzerland).

The textile supply chain comprises additional important processes with significant
environmental impacts, including textile dying (and upstream dye production). Consequently,
emissions to water and waste water treatment are also important in terms of environmentalpressure and environmental protection within the textile supply chains.
2.2.5.5

Product category example 3: fish

ImpactAccording to a recent UN FAO study (FAO, 2009), over 75 % of the world's major fisheries areeither fully or over-exploited, or already depleted. Catches in the western Central Pacific and in
the western Indian Ocean continue to increase, but catches are declining in the western andeastern-central Atlantic Ocean. Most catches from inland waters occur in Asia, and arecontinuing to increase in part because of stock enhancement practices. Meanwhile, aquaculture
continues to be the fastest growing animal food-producing sector, with per capita aquaculture
fish supply increasing from 0.7 kg in 1970 to 7.8 kg in 2006 (FAO, 2009).
Relatively few LCA studies have been performed for wild catch fish supply chains. These few
studies indicate that the fish harvesting stage accounts for 70–95 % of impact (Hospido andTyedmers, 2005). Post harvest impacts associated with packaging, transport, cooling andcooking are typically relatively small compared with the harvest stage, though can be high foraluminium packaging of canned fish. For all the fisheries studied by Hospido and Tyedmers, thegreatest relative (normalised) impacts were:
1. marine ecotoxicity
2. acidification
3. global warming
4. eutrophication.
Thrane et al. (2009) refer to Danish flatfish studies showing a 15-fold difference in fuelconsumption per kg landed fish, depending on the fishing gear used. However, the mostimportant impacts associated with wild catch fisheries, namely biotic renewable resource (i.e.
fish) depletion and seabed damage, are poorly represented in LCA studies. Furthermore, options
to reduce biotic depletion and seabed damage may conflict with options to reduce impacts suchas marine ecotoxicity and global warming, indicated by LCA studies. For example, beam andbottom dredges are efficient in terms of fuel use, but cause extensive seafloor damage (Thrane
et al., 2009).
The aggregate lifecycle environmental impact of fish farming can be lower or higher than wildcatch fisheries, per kg fish supplied, depending on the type of fish being farmed and the feed
used. Fish farming often relies on wild-catch fisheries to supply feed, and is associated withlocalised eutrophication and toxicity impacts (d'Orbcastle et al., 2009). Shrimp farming is
associated with significant negative impacts on coastal mangrove ecosystems.

Improvement options

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Chapter 2

The main improvement options for wild-catch fisheries are to avoid catching endangered
species, and to manage (harvest) stocks sustainably based on the scientific monitoring of fish
populations. In addition, fishing methods should minimise bycacth and seabed damage as muchas possible without leading to large increases in fuel consumption. For retailers, the major bestpractice options to reduce the impacts of wild-catch seafood supply chains include:
•
•
•
•
•

not stocking endangered species such as those on the WWF red list (section 2.2.6.4)
green procurement of MSC-certified fish (section 2.2.6.4)
implementation of tracking systems to ensure that fish do not come from unsustainable
stocks (section 2.2.6.5)
specification of efficient packaging and use of recycled aluminium for canning
avoidance of air freight and optimisation of transport logistics.

Fish farms have considerable potential to provide fish sustainably if efficient feed inputs areused and pesticide use is minimised. They may be based on sustainable feed sources, including
algae in turn fed by nutrients applied to the water – for some fish species such as tilapia. Thereis further scope for improvement of fish farming methods through the development of integrated
systems that recycle nutrient-rich waste water from the fish farms for use in neighbouring
cropping systems. This concept is implemented in its simplest form in integrated rice-fish
systems (Berg, 2002). Best practice for fish farming systems includes:••••

avoiding or reducing use of wild catch fish for feed
minimising pesticide use
avoiding nutrient sensitive areas
implementation of integrated or organic systems.

Best practice options for retailers to reduce the impacts of farmed-fish supply chains include:
•
•
•
•
•

stocking fish from integrated systems
stocking organic-certified fish (e.g. KRAV label, section 2.2.6.8)
encouraging the consumption of more sustainably produced species (e.g. tilapia)
specification of efficient packaging and use of recycled aluminium for canning
avoidance of air freight and optimisation of transport logistics.

In summary, the most important retailer action to improve the sustainability of wild-catch fish
supply chains is to trace their fish supplies, and ensure that they originate from non-depleted
and sustainably-managed stocks, using fishing methods that minimise damage to the seabed(e.g. MSC-certified, or Greenpeace Green-list fish species – see Section 2.2.6.4 and Section
2.2.6.5). For farmed fish, the most important retailer actions are to stock fish from low-input
farms (organic and integrated systems) – see example of Coop Switzerland in Section 2.2.6.8.
During 2011, it is envisaged that a new comprehensive exemplary standard will become
available for farmed fish, from the Aquaculture Stewardship Council (ASC). The ASC was
founded in 2009 by WWF and the Dutch Sustainable Trade Initiative to establish global
standards for sustainable aquaculture.
Once this standard and its associated label becomes available, best retailer practice for thesourcing of farmed fish will be green procurement of ASC certified fish.

2.2.5.6

Product category example 4: eggs

Impact
The German PCF Pilot project (PCF, 2009) published a detailed case study for Tengelmann
quantifying the GHG emissions associated with the production of their Naturkind organic eggs.

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Chapter 2

The production of six eggs was calculated to cause the emission of 1.18 kg CO2 eq. The major
processes responsible for these emissions were:••••

pullet-rearing and egg laying farms (62 %)use phase – transport, cooking and eating (21 %)handling by retailers (10 %)supply transport (1.5 %).

The egg laying farm stage is responsible for the largest portion (59 %) of lifecycle GHG
emissions for the production of six eggs (0.69 kg CO2 eq.). Figure 2.72 demonstrates thatemissions from the egg laying farm are dominated by manure management and feed production(responsible for approximately 79 % of egg laying farm emissions). Nitrous oxide is the largest
component of GHG emissions from the egg laying farm stage, in terms of global warming
potential. This arises from manure management, and fertilisation of feed crops. These processes
are also hotspots for air emissions (ammonia) and eutrophication (nitrogen runoff).

100%
CO2
CO2

Combine harvesting80%
Fava beans prod
Protein peas prod
60%

Green manure
N2O

Light fuel oil use
Grain maize prod

40%

Electricity use
Soy bean prod
20%
Wheat grain prod
CH4

Poultry dung appl.

0%

Figure 2.72:

The contribution of processes and individual gases to GHG emissions on the egg
laying farm

In additional to GHG emissions, major pressures associated with egg and poultry production
include:•••eutrophication of water from nutrient runoff
emissions of acidifying gases from fertiliser application, transport and farm machineryuse
displacement of natural habitat in tropical climates from soy feed production.

Improvement options
The following GHG reduction options were highlighted in the case study (reduction potentials
are expressed as a percentage of the reference GHG footprint, in brackets):••••

installation of biogas plant at egg laying farms (14 %)consumers using egg boilers for cooking (11 %)using renewable electricity in regional warehouses and stores (9 %)customer shopping by bike or foot (4 %).

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Retailer options to reduce the environmental impact of egg supply chains include:
•
•
•
•
•

green procurement of GlobalGAP or National Production Certified eggs
benchmarking of farmers and encouraging adoption of BMPs (section 2.2.6.6)
requiring farmers to use RTRS certified soy feed, or alternative sources of feed
encouraging the consumption of certified organic eggs
informing consumers of energy-efficient cooking methods (e.g. using an egg boiler).

2.2.5.7

Product category example 5: washing powder

ImpactHousehold chemicals represent an environmentally significant product group, and usuallyexhibit major environmental impacts at the use and disposal phases. In conjunction with theGerman PCF Pilot Project, Henkel performed a comprehensive LCA for one of their washingpowders. This example also provides a best-practice case study for product assessment (Section
2.2.6.2). Data on manufacturing impacts were obtained from Henkel monitoring for ingredients
manufactured on site, and from a lifecycle database (Ecoinvent v.2.01:
http://www.ecoinvent.org/database/) for imported ingredients. The generation of domestic waste
water and solid packaging waste were considered, and it was assumed that solid waste wasincinerated to generate electricity. The recycling of packaging materials was not consideredowing to an absence of data. For the use phase, an average scenario was applied, based on awash temperature of 46 °C, a wash load of 3.9 kg, and an electricity demand of 0.68 kWh per
wash (mean German values). The use phase was found to account for >70 % of the PCF (Figure2.73), with extraction and supply of raw materials for powder production accounting for 20 %,and the production process itself accounting for just 2 %.
The range of likely use phase conditions was represented by low and high scenarios derived
based on wash temperatures of 30 °C and 60 °C, loads of 5 and 2.5 kg, and light and heavy
soiling, respectively (Table 2.36). The powder dose rate varied from 35 g for the light-soiling
scenario to 116 g for the heavy-soiling scenario. The single most important factor for use-phaseemissions was found to be the wash temperature.

Table 2.36:

The effect of different usage characteristics on lifecycle GHG emissions per kg
wash load, relative to the average scenario (first row)

Wash temp.
46
30
60
46
46
30
90

Load
3.9
3.9
3.9
2.5
5.0
3.9
3.9

Soiling
NormalNormalNormalNormalNormalLight
Heavy

g CO2 eq. / kg
180
115
240
280
140
90
380

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Difference
0%
-36 %
+33 %
+56 %
-22 %
-50 %
+111 %

143

Chapter 2
800
Use
600

g CO2 eq.

Shopping tour

400

Distribution

200

Production, packaging,disposalRaw materials

01Standard wash load @ 46oC

Figure 2.73:

Breakdown of the major sources of GHG emissions over the product lifecycle of asingle wash, under average use conditions (3.9 kg wash load at 46 °C)

In addition, a number of non-CO2-related environmental impacts were found to be important at
various stages of the washing lifecycle (Table 2.37). As with global warming potential, human
toxicity, summer smog and resource depletion impacts mainly occurred during the use phase.
However, eutrophication and BOD impacts mainly occurred at the disposal phase – in the final
discharge from waste water treatment plants to the aquatic environment.

Table 2.37:

The contribution of various lifecycle stages to the environmental impact associatedwith washing power use

ImpactIndicator

Rawmaterials

Production

PackagingDistribution

User
Transport

Use
phase

Disposal

GWP

kg CO2 eq.

19.5

1.7

2.7

0.5

1.3

71.6

2.7

Eutrophication

kg PO4 eq.

17.1

0.2

2.2

0.4

0.5

8.9

70.5

Human Toxicity.

kg 1.4-DCB

42.7

0.3

2.4

0.3

1.9

39.6

12.8

Summer smog

kg ethylene

43.9

0.5

4.2

0.8

3.9

41

5.6

BOD

kg

46.3

0.1

3.3

1.1

2.0

9.1

38.1

Resource
depletion

kg antimony

26

1.8

2.9

0.5

1.1

66.2

1.6

Source: PCF Pilot Project (2009).

Improvement options
From this LCA, Henkel concluded that the use phase represents the major opportunities for
product lifecycle improvement. Higher GHG emissions during the production phase associatedwith enzyme production lead to considerably lower GHG emissions during the use phase byenabling low temperature washing. Henkel has targeted action at reducing the wash temperature
required for their washing powders to work effectively, and conveys information on optimum
dosing and temperature to consumers, on packaging and through a dedicated website
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Chapter 2(http://www.persil.com/thirtyDegreesWashing.aspx). In addition, Henkel has set a target to
reduce the carbon footprint of production by 15 % between 2007 and 2012. Retailers can pursue
similar ecodesign improvements for their private label washing powders, following the example
of Carrefour applying ecodesign to reduce the ecotoxicity of their pesticide range (Carrefour,2010).
Best environmental management practices by retailers to reduce the environmental impact ofwashing powder over its lifecycle:••••

encouraging consumer shifts towards environmental labelled washing powders(marketing);
green procurement of branded washing powders with lower self-declared (ISO Type-IIlabel) or third party verified (ISO Type-III label) lifecycle impacts;
ecodesign of private label washing powders to reduce lifecycle impact;
informing consumers of economic savings from optimum dosing, loading and wash
temperatures.

2.2.5.8

Product category example 6: sugar

Impact
The Migros 'CO2 Champion' label is awarded to products with lifecycle GHG emissions at least
20 % lower than other products in the same category. Lifecycle GHG emissions are
independently assessed by Climatop, and verified in a peer-review process. In late 2009 Migros
had awarded the CO2 Champion label to 104 products (Migros webpage, 2010). The results of
Climatop's sugar LCA are summarised here (Climatop, 2008).
Total lifecycle GHG emissions were considered from sugar supply to the retailer, including all
stages except the use phase. Six types of sugar were compared:••••sugar cubes and granulated sugar from Swiss/German sugar beetsugar cubes and granulated sugar from Columbian sugarcane
organic granulated sugar from Swiss/German sugar beetorganic granulated sugar from Paraguayan sugarcane.

The PCF per kg varied by a factor of two (see Table 2.38), primarily due to high cultivation
emissions for sugar beet compared with sugarcane (see Figure 2.74). Cultivation emissions arise
mainly from fertiliser application and manufacture, but also from machinery fuel use and soil
carbon loss under tillage agriculture. Organic cultivation was found to result in significantly
lower GHG emissions for sugarcane cultivation in Paraguay, but not for sugar beet cultivationin Switzerland or Germany.

Table 2.38:

Product carbon footprint values for different types of sugar
Sugar source and feedstock

kg CO2 eq./ kg sugar

From Swiss/German sugar beet

0.6

From Columbian sugar cane

0.42

From organic Paraguayan sugar cane

0.32

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Chapter 2

Source: Climatop, 2008

Figure 2.74:

Breakdown of GHG emission sources for different sugar products

In addition to GHG emissions, the sugar production contributes significantly to otherenvironmental pressures, primarily:
•
•
•
•
•
•

soil erosion
depletion of water resources and salinisation where irrigation is useddisplacement of natural habitat in tropical climates
eutrophication of water from nutrient runoff and sugar processing
ecotoxicity effects from pesticide use
emissions of acidifying gases from fertiliser application, sugar processing, transport andfarm machinery use.

Improvement options
The conclusion for sugar is that lower cultivation and processing emissions for sugarcane inwarmer climates more than offset emissions from sea-transport to Europe. The higher efficiencyof sugarcane production should result in a lower environmental footprint across the range ofenvironmental impacts, not just global warming. In particular, eutrophication, air emissions, andland use pressures should be reduced. Implementation of BMPs, as per cotton production(Section 2.2.5.4), can significantly reduce the range of environmental pressures associated withsugar cultivation.
Retailer best environmental management practices to reduce the environmental impacts of sugar
supply chains include:•••

sourcing private label sugar from sugarcane farmers (preferably with a certification todemonstrate that the sugarcane is not planted on recently deforested land);green procurement of Fairtrade certified sugar;
encouraging a shift towards organic sugar consumption.

It is anticipated that the Better Sugarcane Initiative standard will be operational in 2011.
Retailer best practice will then be represented by green procurement of sugar from Better
Sugarcane Initiative certified suppliers.
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Chapter 2

2.2.5.9

Product category example 7: fresh fruit and vegetables (asparagus)

Impact
The results of the Climatop LCA for fresh green and white asparagus are presented in thissection (Climatop, 2009). They present an example of the main environmental impacts
associated with fresh fruit and vegetables that may be sourced from geographically distantsource regions outside of local production seasons.
For asparagus, total life cycle GHG emissions were calculated up to the shop display stage,excluding emissions associated with consumption, as for sugar. Five types of asparagus werecompared. In decreasing order of carbon footprint they were:
•
•
•
•
•

white asparagus flown from Peru
green asparagus flown from Mexico
white asparagus shipped from Peru
green and white asparagus transported by lorry from Germany
white asparagus transported by lorry from Hungary.

The PCF for one kg of asparagus ranged from 0.5 to 12 kg CO2 eq. Cultivation is the largest
source of emissions for asparagus transported by lorry and ship, but air transport completely
dominates emissions for air-freighted Mexican and Peruvian asparagus. As for sugar, cultivation
emissions arise mainly from fertiliser application and manufacture, but also from manufactureof plastic sheeting, machinery fuel use, and soil carbon loss under tillage agriculture.
In addition to GHG emissions, the cultivation of fruit and vegetables contributes significantly toother environmental pressures, primarily:
•
•
•
•
•

soil erosion
depletion of water resources and salinisation where irrigation is usedeutrophication of water from nutrient runoff
eco toxicity effects from pesticide use
emissions of acidifying gases from fertiliser application, machinery use and transport.

Source: (Climatop, 2009)

Figure 2.75:

Breakdown of GHG emission sources for asparagus from different sources

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Chapter 2

Improvement options
The main conclusion for asparagus (and similar fresh products) is that air transport, but not shiptransport, over long distances can massively increase PCFs, and should be avoided where
possible. However, out-of-season production in greenhouses heated by fossil fuels can lead toeven higher environmental burdens than long-distance transport, so should also be avoided.
Some retailers are shifting their sourcing of short shelf-life fruit and vegetables to closer regionswith warm climates, from where products may be transported using water- and land-basedtransport modes, such as Morocco (Coop Switzerland, 2010; M&S, 2010). Retailers are also
encouraging seasonal consumption and/or working with regional suppliers to extend thegrowing season without relying on artificial heating (e.g. Sainsbury's, 2010).
Some retailers balance the environmental costs of long-distance transport against the social
benefits of production in developing countries. Coop Switzerland does this with Fairtrade roses
sourced from Kenya, and buys carbon credits to offset transport CO2 emissions (Coop
Switzerland, 2010).
However, it is crucial that retailers consider the range of major environmental pressuresassociated with fruit and vegetable cultivation when taking action to reduce GHG emissions. In
particular, retailers can require growers to implement BMPs as per cotton production (Section
2.2.5.4). These include use of efficient drip irrigation techniques, application of IPM, andimplementation of a nutrient management plan based on periodic soil testing.
Best environmental management practices for retailers to reduce the environmental impacts offresh fruit and vegetable supply chains include:
•
•
•
•
•
•

green procurement of GlobalGAP or Fairtrade certified fruit and vegetables (section
2.2.6.4);
encouraging a shift towards organic consumption (section 2.2.6.8);
performing environmental assessment to identify efficient improvement options specificfor each type of fruit and vegetable (section 2.2.6.2);
encouraging seasonal consumption;
not stocking air-freighted products, subject to sustainability assessment (section 2.2.6.4);
developing supplier capacity for short shelf-life products in warm regions within a rangeof water- and land-based transport modes (section 2.3.4.3).

2.2.5.10

Agricultural improvement option 1: continuous improvement of
conventional production

Synthetic nitrogen application has been a key factor driving large increases in global foodproductivity, and supports 50 % of global food production. Continuing yield improvements andsynthetic fertiliser application are regarded as essential to satisfy the growing demand for fooddriven by: (i) a global population that is forecast to peak at around 9 billion people in 2050,
from 6 billion people today; (ii) a shift towards more protein (dairy and meat)-rich diets indeveloping countries. In particular, it is argued that agricultural intensification is key toreducing further encroachment of agricultural land into natural habitats, and the array ofenvironmental impacts associated with this. For example, it is estimated that land use change for
agriculture accounts for 12 % of global GHG emissions, almost half of agriculture's total
contribution of 26 % (Bellarby et al. 2008).
The fertiliser industry has used LCA to demonstrate that the land appropriation and global
warming consequences of lower production associated with no synthetic fertiliser-N application
exceed the acidification, eutrophication and global warming consequences of moderate (96 kg
ha-1 yr-1) and high (192 kg N ha-1 yr-1) but not very high (288 kg N ha-1 yr-1) fertiliser-N
application rates for grain production (Brentrup, 2010). Burney et al. (2010) estimate that
agricultural intensification (increased fertiliser and pesticide application, but also crop breeding,increased mechanisation and irrigation) has prevented between 1.9 and 2.3 Gt C per year
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Chapter 2

globally on average between 1961 and 2005 (equivalent to between approximately 14 % and
16 % of current annual global emissions). Synthetic fertiliser application can also contribute tolong-term soil organic matter accumulation in non-tilled grassland soils (Byrne et al., 2007).
So, on the one hand, fertiliser-N application requires energy-intensive fertiliser production(accounting for 0.8 % of global GHG emissions), and results in emissions of N2O (1.3 % of
global GHG emissions: Bellarby, 2008), NH3 and NOx – contributing to global warming,
acidification and eutrophication. On the other hand, fertiliser application enables higher yields
that can help prevent further loss of ecologically-valuable natural habitats. There is considerable
scope to increase the efficiency of intensive agricultural production (i.e. reduce the inputs andimpacts per unit of output), and doing this is a route to widespread environmental improvement(e.g. as demonstrated by the Better Cotton Initiative: Case study 2.7 in Section 2.2.6.6).

2.2.5.11

Agricultural improvement option 2: organic production

Whilst improving the efficiency of conventional intensive agricultural production is widely
regarded as a necessity to meet expected increases in food demand in the medium term, there
remain some serious questions regarding the long-term sustainability of intensive production in
many areas. A recent review of soil erosion rates in relation to soil formation rates acrossEurope estimated that actual soil erosion rates for tilled arable land range from three to 40 times
above sustainable erosion rates (Verheijen et al., 2009). There is growing concern about thequality of agricultural soils (EU Soil Framework Directive), especially the depletion of organic
matter associated with long-term tillage agriculture, salinisation associated with irrigation in hot
climates, and physical (structural) degradation (e.g. IAASTD, 2009). Meanwhile, reserves ofphosphorus mined for fertiliser production are rapidly depleting, and supply is expected to peakin 2030 against projected increases in demand from conventional agricultural practices (Cordell
et al., 2009).
Organic agriculture can contribute considerably towards improving agricultural sustainability
through the maintenance of soil quality (especially by increasing organic matter content), andby supporting sustainable biological nutrient cycles – through the utilisation of the large
quantities of organic nutrients currently diffused to the environment in waste streams. The UN
FAO regards soil improvement associated with organic agriculture as an effective adaptation
option for a changing climate (Niggli et al., 2009), whilst IFOAM claim that organic agriculture
could sequester enough carbon in soil and vegetation to offset one third of human GHG
emissions (up to 2.3 t C ha-1 yr-1 in a long-term arable crop field trial in the US). Compared withconventional intensive agricultural production, yield increases have been lower for organic
production, and yields are typically around 30 % lower per ha of land farmed (IFOAM, 2009).
Nonetheless, crop development and investment have so far focused on conventional production:
further investment in, and crop development for, organic methods could increase yields
substantially. Meanwhile, organic production develops knowledge on sustainable soil, nutrientand pest management practices that can be transferred to improve non-organic production.
In summary, there is a clear need for widespread continuous improvement of conventionalfarming systems, in particular to reduce pesticide, water and fertiliser input per unit of productoutput. Such improvement will be central to improved supply chain sustainability. Meanwhile,development of alternative farming systems, such as organic, develops the knowledge required
to achieve genuine sustainability in the longer-term (Figure 2.76). Therefore, retailer actions toimprove supply chain sustainability should focus on both:(i) driving widespread continuous improvement of intensive agricultural production throughgreen procurement (Section 2.2.6.4), product environmental specifications (Section 2.2.6.5) andintervention (Section 2.2.6.6);

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Chapter 2(ii) stimulating alternative production systems, such as organic and integrated systems, byencouraging a shift towards the consumption of certified front-runner (e.g. organic) products(Section 2.2.6.8).

Sustainable
farming systems
Mainstream
INNOVATION
production

Organic
production

Soil quality
High yields
Soil carbon sequestration
Large scale
Nutrient recycling
Utilises less fertile soils
Innovation (e.g. crop
Eco-efficiency innovation(e.g. precision agriculture) breeding for low inputs)
Figure 2.76:

Productive
Large scale
Nutrient recycling
Maintaining soil
quality
Soil carbon
sequestration
Integrating land
services

The complementary roles of mainstream production and organic production in
driving the innovation required to achieve sustainable farming systems

Reference literature•
Bellarby, J., Foereid, B., Hastings, A., Smith, P., Farming: Climate impacts ofagriculture and mitigation potential, Cambridge University Press, Cambridge, 2008.
•
Berg, H., 'Rice monoculture and integrated rice-fish farming in the Mekong Delta,
Vietnam—economic and ecological considerations', Ecological Economics, 41, 2002, pp.
95-107.
•
Brentrup, 'Comparing different agricultural practices through LCA: main issues andinsights', Presentation on 14th June 2010 in: Towards a road map for a methodology toassess the environmental performance of food and drink supply chains, JRC, Ispra, Italy,
2010.
•
Burney, J.A., Davis, S.J., Lobell, D.B., 'Greenhouse gas mitigation by agriculturalintensification', Proceedings of the National Academy of Sciences of the United States ofAmerica, 107 (26), 2010, pp. 12052-12057.
•
Byrne, K.A., Kiely, G., Leahy, P., 'Carbon sequestration determined using farm scalecarbon balance and eddy covariance', Agriculture, Ecosystems and Environment, 121,
2007, pp. 357-364.
•
CABI, A report on better management practices in cotton production in Brazil, India,
Pakistan, Benin, Burkina Faso, Cameroon, Mali, Senegal and Togo, CABI, 2009..
•
Cordell, D., Drangert, J.O., White, S., 'The story of phosphorus: Global food security andfood for thought', Global Environmental Change, 19, 2009, pp. 292-305.
•
d’Orbcastel, E.R, Blancheton, J.P., Aubin, J.I., 'Towards environmentally sustainableaquaculture: Comparison between two trout farming systems using Life Cycle
Assessment', Aquaculture Engineering, 40, 2009, pp. 113-119.
•
EC, Environmental Impact of Products (EIPRO): Analysis of the life cycle environmental
impacts related to the final consumption of the EU-25, IPTS, Seville, Spain, 2006.
•
EC, Environmental Improvement Potentials of Meat and Dairy Products, IPTS, Seville,
Spain, 2008.
•
EC, Environmental Impacts of Diet Changes in the EU, IPTS, Seville, Spain, 2009.
•
FAO, The state of the world fisheries and aquaculture. UN FAO, Rome, 2009. ISBN
978-92-5-106029-2•
FAO, Integrated Pest Management webpage, http://www.fao.org/agriculture/crops/corethemes/theme/pests/ipm/en/, 2010.
Best Environmental Management Practice in the Retail Trade Sector

150Chapter 2

•
•
•

•

•

•
•
•
•

•
•
•

IAASTD, Agriculture at a crossroads. International Assessment of Agricultural
Knowledge, Science and Technology Development, IAASTD, Washington, 2009.
IFOAM, The contribution of organic agriculture to climate change mitigation, IFOAM,
Bonn, 2009.
IPCC, 'Summary for Policymakers', in: Climate Change 2007: Mitigation. Contributionof Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on
Climate Change [B. Metz, O.R. Davidson, P.R. Bosch, R. Dave, L.A. Meyer (eds)],
Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA,2007.
MADE-BY, MADE-BY environmental benchmark for fibres – condensed version,
http://www.madeby.nl/downloads/EnvironmentalBenchmarkFibersExternalParties2009.pdf MADE-BY,
California, 2009.
MODINT,
CSR
Factsheeton
CottonandWool,
http://www.modint.nl/handlers/printcontent.cfm?GroupID=33&ContentID=4042&ThisPa
geURL=http%3A%2F%2Fwww.modint.nl%2Findex.cfm%2Findex.cfm&EntryCode=94
05, 2010.
Niggli, U., Fliessbach, A., Hepperly, P., Scialabba, N., Low Greenhouse Gas Agriculture:
Mitigation and Adaptation Potential of Sustainable Farming Systems, FAO, 2009.
OECD/IEA, World energy outlook 2010. Executive summary, International Energy
Agency, Paris, 2010.
PCF Pilotprojekt Deutschland, Naturkind organic free-range eggs by the Tengelmann
Group, PCF, Germany, 2009.
Sutton, M.A., Oenema, O., Erisman, J.W., Grennfelt, P., Beier, C., Billen, G., Bleeker,A., Britton, C., Butterbach-Bahl, K., Cellier, P., van Grinsven, H., Grizzetti, B., Nemitz,
E., Reis, S., Skiba, U., Voss, M., de Vries, W., Zechmeister-Boltenstern, S., Managing
the European Nitrogen Problem: A proposed strategy for integration of European
Research on the multiple effects of reactive nitrogen, 2009.
Verheijen, F.G.A., Jones, R.J.A., Rickson, R.J., Smith, C.J., 'Tolerable versus actual soil
erosion rates in Europe', Earth-Science Reviews, 94, 2009, pp. 23-28.
WWF, Cleaner, greener cotton: Impacts and better management practices, WWF, 2007.
Climatop - The label for climate-friendly product alternatives (http://www.climatop.ch/),the label for sugar from 2008 (Climatop, 2008) has been replaced by an updated version:
http://www.climatop.ch/tl_files/factssheet/2013/D_factsheet%20Zucker_Migros_2012_2
014_v2.pdf; the label (Climatop, 2009) for asparagus is no more valid

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2.2.6

Best environmental management
improvement: techniques overview

practicesforsupplychain

Product improvement options
Figure 2.77 provides an overview of interventions that can be employed by governments todrive environmental performance improvement of products (Ryder, 2008). All theseinterventions are pursued to varying degrees for different product groups through existing EU or
member state policies, and provide a useful context for the role of the retail sector in driving
product supply chain improvement. In fact, many of the improvement options in Figure 2.77 canalso be implemented by retailers, perhaps more effectively than by national governments for
globalised supply chains.

Numbers of products in the market

Government interventions on products - the approach
Cut out theleastsustainableproducts

Drive the existing market towards greater
sustainability

Encourage
development ofnew, moresustainableproducts

Interventions:• Minimum
standards• Pricing and trading• Voluntary initiatives• Producer responsibility• Business support• Procurement• Labelling• Public information

Less

PRODUCT SUSTAINABILITY

Interventions:Interventions:•Support
innovation

More

Source: DEFRA, 2008.
Figure 2.77:

Options to drive product improvement through 'push' and 'pull' effects

Retailer influence over suppliers and consumers
Retailers have strong direct and indirect influence over the supply chains of their private label(own brand) products (Section 2.2.3). By establishing environmental performance criteria forprivate label products through third party certification and contract agreements, or supporting
suppliers to address environmental hotspots, retailers can have a powerful influence over the
performance of their supply chains through a 'push' effect (Figure 2.78). Retailers may also use
choice editing ('push') and green procurement ('push' or 'pull' depending on whether
environmental certification is mandatory for a product group) to influence the supply chains ofbranded products.
Retailers have significant direct influence over consumer choice, through the provision ofenvironmental information and the marketing (pricing and positioning) of front-runner products.
Front-runner ecological products should be identified to the consumer with rigorous Type-1
environmental labels (Figure 2.78). The decision to obtain Type I environmental label
certification is usually taken by suppliers for marketing purposes, but may be encouraged byretailers (Section2.2.6.8). Front-runner products are often associated with a price premium
which consumers must be willing to pay to create demand and thus pull supplier improvement
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Chapter 2(Figure 2.78). The main role of retailers with respect to environmental labelled products is toencourage this consumer pull effect through environmental awareness campaigns and marketingof front-runner products (e.g. by inclusion in an umbrella ecorange). In this role, retailers act as
an intermediary between front-runner ecological producers and consumers, and their net
influence is regarded as smaller than for push effects (Figure 2.78), as reflected in priotirisation
below (Table 2.39).
Fundamental shifts and overall reductions in consumption will be important to achievesustainability, but conflict with retail business objectives and are outside the scope of thischapter. Targeted application of best practice techniques represents an opportunity for retailers
to leverage their influence over the entire value chain, and drive widespread environmental
improvement.

Figure 2.78:

Key mechanisms by which retailers may improve the sustainability of supply
chains, and the roles of standards and relevant ISO-classified environmental labels

Identification of core priority products
The range of products, environmental impacts and suppliers involved in retail supply chains isvast (e.g. Figure 2.64 in Section 2.2.2 and Figure 2.69 in section 2.2.5.1). It is critical thatretailers target supply chain monitoring and improvement to maximise environmental
improvement potential, in particular:••

focus on the most important environmental impacts, processes and products as indicatedin Section 2.2.5;
focus on high sales volume (by value) products – subsequently referred to as 'core
products' in this document.

There is much scope for improvement in supply locations where regulations are weak andproduction processes are less developed, although the ability of retailers to influence
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Chapter 2

environmental performance in such locations may be lower compared with geographicallycloser supplier locations.
Overview of retail approaches and techniques
Table 2.39 provides a simplified categorisation of the major strategies and associated actions(techniques) being employed by retailers to improve the environmental performance of their
supply chains. Some techniques are more relevant to some sizes and formats of retailer (e.g.
grocery versus specialist) than others, depending on the range of products they sell and thedegree of influence they have over their supply chains. A number of techniques are criticalprerequisites for the effective supply chain environmental improvement, and apply to allretailers.
•••Technique 1 in Table 2.39: top-level management must prioritise the improvement of
supply chain sustainability, demonstrated through (i) reported quantifiable targets set atthe corporate and operational (e.g. procurement) level, and (ii) communication of supply
chain sustainability actions to stakeholders, including shareholders and customers (e.g.
embedded in marketing). Supply chain sustainability needs to be integrated into the retailorganisation through establishment of a top-level-management steering committee todrive and coordinate necessary actions across all relevant business units and departments.
Technique 2 in Table 2.39: assessment of product supply chain environmental impacts(using published scientific reports, advice from experts, and in-house assessment) to
identify priority products, processes and impacts for intervention.
Technique 3 in Table 2.39: identify effective supply chain improvement mechanisms,
based on identification of hotspots and appropriate certified environmental standards.
Where such standards are not available, transparency and traceability must be introduced
throughout the supply chain through communication with suppliers and collaboration
with other retailers (e.g. via supplier data exchange systems such as Sedex:
http://www.sedex.org.uk/sedex/go.asp?u=/WebSite/home&pm=6&location=Home).

The first strategy defined in Table 2.39 is for retailers to drive widespread environmental
improvement across products and suppliers. It is based on:••••

Technique 4 in Table 2.39: choice editing to exclude the most environmentallydamaging products, and green procurement of products complying with basic, improved
or exemplary level standards (Table 2.29), applied to priority product groups.
Technique 5 in Table 2.39: establishment of environmental requirements (criteria) forcore product groups, enforced alongside routine product quality criteria in quality
assurance systems.
Technique 6 in Table 2.39: retailer intervention in the supply chain to measure andbenchmark environmental performance, and to disseminate better management practices.
Technique 7 in Table 2.39: participate in strategic collaboration between retailers,branded-product manufacturers, suppliers, research institutes and NGOs to develop new
product standards and drive innovation.

The second strategy defined in Table 2.39 can complement the first, and is defined as retailers
encouraging consumers to select ecological products. It is comprised of one technique:•Technique 8 in Table 2.39: encouraging ecological consumption through awarenesscampaigns and marketing of front-runner ecological products (defined by third-party
certified exemplary standards, in particular ISO Type I environmental labels).

A framework for systematic improvement of retail product assortments
Techniques displayed in Table 2.39 are listed in order of priority, according to their potential to
improve the overall sustainability of retail supply chains (for entire product assortments). Figure2.79 presents a sequence of questions and actions that retailers can apply across priority productgroups (identified in Section 2.2.6.2) to effectively implement the first strategy in Table 2.39,
and systematically improve the environmental sustainability of their product assortments.
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Chapter 2

Clearly, implementing prerequisite techniques is the first priority for retailers who want toimprove their supply chains, including assessing product groups (Figure 2.79). Subsequently,
the greatest improvement potential exists in requiring suppliers to comply with widelyrecognised third-party-certified environmental standards (Technique 4). A number of highimpact product groups remain poorly represented by such standards at the basic and improved
level (Table 2.29 and Table 2.34) – for example dairy and red meat. In such cases, front-runnerretailers are either developing their own environmental requirements (Technique 5) or engaging
with suppliers to define and drive environmental improvement (Technique 6). Front-runnerretailers also engage with the development of third party standards that can be applied to
products in the future, and participate in research to drive product innovation (Technique 7).

Figure 2.79:

Proposed sequence of key questions and actions (shaded rectangular boxes)
representing best practice for systematic supply chain improvement, divided into
prerequisites or one of two strategies (S1 and S2)

Environmental labelled products typically demand a significant price premium, and are
therefore bought by a minority of ecologically-aware consumers. The direct environmental
improvement potential of the second strategy (Technique 8) in Table 2.39 is therefore limited by
the extent to which retailers can expand this share of consumers, and/or further shift thepurchasing decisions of these consumers towards environmental labelled products. However, asmall but commercially-viable market in exemplary ecological products may drive sufficient
front-runner innovation to significantly improve wider environmental performance. Technique 8
may therefore be associated with significant indirect environmental improvement potential, andis an important complement to the other techniques, but is a lower priority in terms of
maximising retailer leverage over supply chains.
Note that product labelling of environmental performance (ISO Type III labels) can be used as abasis for retailers to select products and suppliers (i.e. green procurement), but does not
represent best practice in communicating ecological products to consumers. Two key defining
characteristics of front-runner retailers are:Best Environmental Management Practice in the Retail Trade Sector

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Chapter 2••

front-runner retailers take responsibility for improving their supply chains, and do not
abdicate this responsibility to consumers who cannot reasonably be expected to have astrategic overview of complex supply chain sustainability challenges;
front-runner retailers work with their suppliers to systematically improve theenvironmental performance of their core supply chains, using independent standards
where possible.

Demonstration by example
Developing sustainable supply chains is a massive and complex task that is difficult toquantitatively measure in its entirety, and that retailers are just beginning to address.
Consequently, this chapter:•
proposes technique implementation in a step-wise manner across priority (high sales
value, high environmental impact) product groups, and presents indicators andbenchmarks of excellence expressed at the level of individual priority product groups;•
uses case studies on best practice technique implementation by specific retailers to
elucidate individual techniques and demonstrate their commercial viability (see examples
listed in Table 2.39).
Reference literature•
Deloitte. Finding the green in today's shoppers: sustainability trends and new shopper
insights. GMA/Deloitte, 2009.
•
ISO. International Standard ISO 14021, Environmental labels and declarations – selfdeclared environmental claims (Type-II environmental labelling). ISBN 0580354253,
1999•
ISO. International Standard ISO 14024, Environmental labels and declarations – Type I
environmental labelling – Principles and procedures. ISO, 1999.
•
ISO. International Standard ISO 14025, Environmental labels and declarations – Type III
environmental declarations – principles and procedures. ISO, 2006.
•
Misiga, P. A vision for European environmental product policy. Workshop on Ecodesign
and Resource Efficiency 26 November 2010, Eigtveds Pakhus, Copenhagen, 2010.
•
Department for Environment, Food and Rural Affairs (DEFRA), Progress Report on
Sustainable Products and Materials, London/UK, www.defra.gov.uk, 2008

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Chapter 2
Table 2.39:
StrategyPrerequisites:
integrate
sustainablesourcing intobusinessstrategy
andoperations

1.
Drive
widespread
productandsupplier
environmental
improvement

2. Encourage
ecologicalpurchasing

Portfolio of approaches and techniques employed by retailers to improve supply chain sustainability
Best practice techniques
1. Integrate sustainable sourcing into business strategy andoperations. Develop supply chain environmental improvement
objectives and specific targets that are communicated to stakeholders
and integrated into the retail organisation through a high-level unit
with responsibility for implementation.
2. Product supply chain assessment. Collate scientific information
on product environmental hotspots, and identify priority improvement
options.
3. Identify effective supply chain improvement mechanisms.
Identify chains of custody and control points to influence theenvironmental performance of priority product groups and suppliers.
4. Choice editing and green procurement. Exclude worst
performing products, and require widespread certification according to'basic', 'improved' or 'exemplary' environmental standards for priority
product groups.
5. Establish environmental criteria for products and suppliers.
Define and enforce ‘basic’, ‘improved’ or 'exemplary' environmental
standards for suppliers of priority product groups, targeting
environmental hotspots, and work with suppliers to improve
performance.
6. Intervene to encourage supplier improvement. Assist suppliercertification according to third party standards, disseminate bestpractice, benchmark performance.
7. Strategic collaboration on product and standard development.
Participate in research to drive supply chain innovation, including
collaboration to develop product standards and supplier dataexchange.
8. Promote front-runner ecological products. Use awarenesscampaigns, positioning, pricing and own-brand ecological ranges topromote third-party-certified ecoproducts. Expand availability ofthese products.

ExamplesCoop Switzerland (Case study 2.2); M&S's Plan A(Case study 2.1)
Coop Switzerland (Case study 2.3); M&S and
WWF; Sustainability Consortium (Albert Heijn,
Asda, M&S, Safeway)
H&M (Case study 2.4); Migros (RSPO, Case study
2.5)

Applicability

SectionAll retailers

2.2.6.1 (p.
159)

All retailers
All
core
products
All retailers
All
core
products

2.2.6.2 (p.
165)
2.2.6.3 (p.
173)

Sainsburys, M&S (RSPO); Coop Switz, Migros,
Rewe (GlobalGAP); IKEA, M&S, Migros (BCI);
M&S, Waitrose (MSC fish); B&Q (FSC)

All retailers
All
core
products

2.2.6.4 (p.
173)

H&M (CoC, CR, BSR-WWQG); IKEA (IWAY
CoC and Wood Sourcing: Case study 2.6); Migros(Terra Suisse)

Larger retailers
Private-labelcore products

2.2.6.5 (p.
181)

BCI (Case study 2.7); H&M (CPP: Case study 2.9);
Sainsburys (DDG: Case study 2.8)

Larger retailers
Private-labelcore products

2.2.6.6 (p.
203)

Coop Switzerland (FiBL research: Case study 2.10);
Tesco (Sustainable Consumption Institute)

Larger retailers
All
core
products

0 (p. 213)

Albert Heijn (Pure and Honest); B&Q (One Planet
Home); C&A (organic cotton: Case study 2.11);
Colruyt (Bio Planet stores); Coop Switz(Naturaplan/Naturaline); Migros (Bio)All retailers
All
core
products(2.2.6.8
p.219)

NB: BCI, Better Cotton Initiative; BSR WWQG, Business for Social Responsibility Wastewater Quality Guidelines; FSC, Forest Sustainability Council; GAP, Good Agricultural Practice; MSC, Marine
Sustainability Council; RSPO, Roundtable on Responsible Palm Oil; RTRS, Roundtable on Responsible Soy .

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Chapter 2

2.2.6.1

Integrate supply chain sustainability into business strategy andoperations

Description
The transformation of existing supply chains into sustainable supply chains is a massive andlong-term challenge faced by retailers and other key stakeholders, including consumers. The
scale and long-term nature of this challenge require that supply chain environmental
improvement be given explicit recognition and prioritisation by top-level retail management if it
is to be effectively addressed (through a systematic and strategic plan). Coordination is required
across the many business units typically involved in aspects of the supply chain, including those
responsible for procurement, manufacturing, quality assurance, transport and logistics, andmarketing. This in turn requires strategic management of supply chain issues, best achieved
through a high-level business unit with overarching responsibility for them.
Integrating management of supply chain sustainability into retail organisations can improve
long-term economic performance, both through creating a strong value-added brand identity,
and by securing efficient and sustainable product supplies into the future. A recent reportpublished by the global management consulting company Accenture (Accenture, 2009) foundthat businesses with greater control over their supply chains exhibited stronger economic
performance than businesses with less control over their supply chains. The establishment of
quantitative sustainability targets that are widely communicated and highly weighted in thecorporate decision-making process is particularly important, both as an indicator and driver ofactions to improve supply chain sustainability.
It is important that the full range of environmental impacts attributable to product supply chainsare considered (air pollution, biodiversity, climate change, ecotoxicity, resource depletion, water
quality and availability, etc.) in order to effectively prioritise particular supply chains and target
improvement actions. These should be considered alongside social and economic aspects so thatthe overall sustainability of supply chains can be optimised. It appears that this is not yet thecase for many retailers. Whilst most sustainability reports from major retailers refer to thecarbon footprint of supply chains, only a few retailers demonstrate comprehensive awareness ofwider environmental impacts. Even fewer demonstrate an integrated understanding ofenvironmental, social and economic aspects, or implement strategic programmes forcomprehensive and systematic supply chain improvement.
Achieved environmental benefits
Front-runner retailers who have successfully integrated supply chain sustainability objectives
into their operations demonstrate best practice across a range of techniques, and achieveenvironmental benefits detailed in Section 2.2.6.4 to Section 2.2.6.8. The overall environmental
impact attributable to these retailers' product assortments is being systematically reduced.
Appropriate environmental indicator
Integration of sustainable supply chain management into retailer organisations necessitates anumber of features that can be categorically defined, including:•••public reporting of quantitative corporate targets specifically related to improving thesustainability of priority product supply chains (e.g. in annual reports);
presence of a high-level business unit with responsibility for driving and coordinating
supply chain sustainability actions (e.g. 'How we do business committee' in Figure 2.28);
quantitative internal performance targets (e.g. for individual employees) specificallyrelated to supply chain sustainability.

The scope and comprehensiveness of targets can be used to indicate best practice, with leading
retailers demonstrating a comprehensive understanding of environmental challenges throughout
the supply chains of many core products (e.g. in sustainability reports). Meanwhile, the mainindicators of successful integration of supply chain environmental improvement are based onachieved improvements, and can be assessed from retailer performance across key techniques,Best Environmental Management Practice in the Retail Trade Sector

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Chapter 2

according to quantitative targets proposed for Techniques 4, 5, 6 and 8. These indicators can besummarised as:•••

percentage of products in core product groups that are certified according to third party
standards of varying stringency (Section 2.2.6.4 and Section 2.2.6.8);
percentage of products in core product groups that comply with environmental criteria
specified by the retailer (Section 2.2.6.5);
percentage of products in core product groups that originate from suppliers participatingin retailer-driven eco-efficiency improvement programmes (Section 2.2.6.6).

A proposed benchmark of excellence is the systematic implementation of supply chain
improvement programmes across priority product groups, as indicated in schematic Figure 2.78
(section 2.2.6).
Cross-media effects
Best practice integration of supply chain sustainability objectives reduces the overall
environmental impact of product assortments by targeting priority products and considering all
major environmental impacts (air pollution, biodiversity loss, climate change, ecotoxicity,
resource depletion, etc.). This is informed by comprehensive environmental assessment of coreproduct supply chains using tools such as LCA (Section 2.2.6.2). Any cross-media effects
should be identified and considered within the design of optimized improvement options.
Retail managers at the corporate and operational levels may need to decide how to balance
trade-offs between various aspects of sustainability. Examples of this include:••

social benefits of providing employment in developing countries versus the impact oflong-distance transport for perishable products such as flowers;
animal welfare benefits of free-range production versus higher per-unit GHG and airpollution emissions.

Some retailers use balanced scorecards to help decide such trade-offs, and front-runner retailers
explicitly communicate trade-offs to stakeholders (e.g. Coop Switzerland, 2009).
Operational data
Best practice is illustrated through case studies for two front-runner retailers, below. Figure 2.28
shows the management hierarchy for M&S's comprehensive Plan A (Case study 2.1), andprovides an example of how sustainability objectives can be integrated into a retailer's
management structure and operations (based on top-level prioritisation, and a high-levelcommittee to integrate sustainability objectives).

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Chapter 2
How We Do Business Committee
Chaired by M&S Chief Executive Officer.
• Reports to Board at least once per year.
• Meets regularly (11 times 2008/9).
• Drives Plan A and other activities.
Each ‘pillar’ below issponsored by one
committee member,and actions managed
across M&S bydedicated steeringgroup:
ClimateChangeMANAGEMENTPRIORITISATION

Director Plan A and Sustainable Business• Supports Committee on Plan A decisions.
• Establishes and coordinates implementationof Plan A objectives with a team of social,environmental and ethical specialists.

Waste

Sustainable
Raw Materials

Fair Partner

COORDINATION

HealthCOMPREHENSIVE
SCOPE

Plan A Champions
Coordinate specific Plan A actions across M&S stores and offices

OPERATIONALIMPLEMENTATION

Employees
Plan A objectives form part of employees' performance targets

EMPLOYEEINVOLVEMENT

Source: based on information from M&S, 2009
Figure 2.80:

The management and implementation of sustainability objectives in M&S

Case study 2.1: M&S's comprehensive Plan A sustainability strategy
Management
In 2007, M&S launched their 'Plan A' ('there is no Plan B') – a five-year plan comprised of 100
commitments on the key social, environmental and ethical challenges facing M&S (many withmeasureable targets), supported by a EUR 240 million investment commitment. Figure 2.80 shows how
Plan A is integrated into M&S management structure. In March 2010, Plan A was updated to include 180
commitments to be achieved by 2015, alongside an overarching ambitious target for M&S to become theworld's most sustainable major retailer by 2015 (M&S, 2010). Plan A contains five short-term (2011)
commitments specifically intended to integrate sustainability into M&S systems and processes. M&Sworks in partnership with suppliers and organisations such as WWF, MSC, FSC and RSPO to establish
supply chain sustainability targets.
Communication
Progress on achieving sustainability objectives is clearly communicated to all stakeholders via annual
reporting (compliant with Global Reporting Initiative G3 level C) that includes progress on all Plan A
commitments (M&S, 2010). As of 2010, 62 of the original 100 Plan A commitments were achieved, 30
commitments were on schedule, and 8 commitments were behind schedule. Some key commitments to
supply chain environmental improvement are listed in Appendix A2. Plan A is part of the M&S 'way ofbusiness' (Figure 2.80), and is regarded as an integral part of a business strategy intended to differentiate
M&S from other retailers.
Product requirements
Two thirds of Plan A's 180 commitments are relevant to supply chain environmental performance. Fortythree commitments are strongly related to techniques for supply chain environmental improvement
referred to in this chapter, and 14 of these have already been achieved (M&S, 2010). To monitor andencourage compliance with product quality and sustainability standards, M&S have 17 regional
compliance managers in seven countries (including Turkey, India, Bangladesh, Thailand, Vietnam, Sri
Lanka and China). M&S demonstrates good performance with respect to product standards (Section
2.2.6.4 and Section 2.2.6.8), and is a front-runner in terms of ambitious targets to drive supply-chain
improvement through benchmarking (Section 2.2.6.6).
Plan A generated a net profit of EUR 60 million in 2009-10 through efficiency improvements and newincome streams.

Another exemplary retailer in terms of integrating sustainability considerations into supply
chain management is Coop Switzerland, as outlined in Case study 2.2, below. Two additional
front-runner retailers are referred to in Table 2.40.
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161Chapter 2
Case study 2.2: Integration of sustainable supply chain objectives in Coop Switzerland's
management structure and operations
Management
In 2008, Coop Switzerland established a single high-level Sustainability Steering Committee, reporting
directly to the CEO, containing representatives from all business units, and responsible for sustainability
and quality assurance along the entire supply chain (Coop Switzerland, 2009). Coop Switzerland regards
sustainability as an integral component of business strategy, not a separate strategy, and has acomparatively long history of supply chain environmental improvement. The proof of this is in Coop's
position as a front-runner retailer for many best practice techniques referred to in this document.
Comprehensive supply chain sustainability targets (Appendix A1) indicate a commitment to systematic
environmental improvement of supply chains, whilst close collaboration with environmentalorganisations and research institutes to develop long-term solutions to supply chain challenges (Section
2.2.6.7) demonstrates a strategic approach. This is reinforced by Coop's contributions to the policy debate
on environmental sustainability in Switzerland. Coop's 2010 Sustainability Report (Coop Switzerland,2010) identifies five specific measures taken in 2009 to integrate sustainability into strategy andmanagement.
Communication
Environmental objectives are prioritised within Coop's mission statement, and comprehensive targets
related to environmental improvement of supply chains are listed in sustainability reports (see Appendix
A1). In Coop's 2010 Sustainability Report, progress towards achieving 15 goals relevant to supply chain
environmental improvement is summarised, and 48 associated measures taken in 2009 are listed.
Priorities stated in Coop's 2009 Sustainability Report are: climate change, water shortage, over-fishing,destruction of woodland, dwindling biodiversity and fair working conditions. Communication of thesepriorities suggests that Coop has a comprehensive understanding of supply chain environmental impacts.
Product requirements'Sustainable products' is one of three pillars of Coop Switzerland's sustainability strategy, and sustainablelabelled products account for 12 % of total sales (Section 2.2.6.8). Environmental criteria are consideredalongside social and commercial criteria when selecting suppliers, using a balanced score-card approach.
Coop Switzerland is a front-runner retailer with respect to product standards (Section 2.2.6.4), and is
responsible for almost half of all organic food sales in Switzerland (Section 2.2.6.8).

Table 2.40:

Other front-runner retailers who have integrated supply chain sustainability
considerations into their business strategy and operations

H&M explicitly acknowledges the centrality of its supply chain to overall sustainability performance, andhas CSR team of over 80 people working in 13 countries. Each department must identify potential forenvironmental improvement, and the CSR department employs a range of key performance indicators.
Migros compete with Coop Switzerland on sustainability issues and have a track record pursuing a wide
range of supply chain improvement actions. Migros management take a comprehensive and long-termview, as reflected in numerous case study examples within this document. Migros sells EUR 1.5 billion ofsustainable labelled products annually (14 % retail sales in 2009).

Applicability
Integration of a sustainable supply chain strategy into the management structure and operations
is possible for any retailer.
Economics
Full integration of supply chain management into retailer business structure, enabling greater
supply chain control, has been shown to improve business performance (Accenture, 2009). In
the medium term, the retail sector is critically dependent upon improving supply chain
sustainability. Marketing advantages have been identified for front-runner retailers (Deloitte,2009).
Driving force for implementation
Major driving forces for retailers to integrate supply chain sustainability improvement into theiroperations and management structure include:
Best Environmental Management Practice in the Retail Trade Sector

162Chapter 2

•
•
•
•
•
•

corporate responsibility: retail directors/governance responding to increasingly evident
environmental problems;resource price volatility: response to large increases in commodity prices, and insurance
against future price volatility;
risk management: realisation that fundamentally unsustainable rates of resource
consumption in supply chains pose a major risk to future business viability;
image and public relations: stakeholder (notably customer and shareholder) concern overenvironmental issues such as climate change;
demand and marketing: increasing customer demand for 'ecological' products, and retailer
positioning to market these more profitable value-added products;
regulation: the prospect of regulation imposing restrictions or costs on environmentallydamaging activities/products (e.g. a carbon tax).

Reference retailers
Coop Switzerland, H&M, M&S, Migros.
Reference literature•
Accenture. The Sustainable Supply Chain: Balancing cost, customer service andsustainability to achieve a high-performance supply chain, Accenture, 2009.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2008,
http://www.coop.ch/pb/site/common/get/documents/system/elements/ueber/zahlen_fakten/_pdf/en/NHB08.pdf, 2009.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
Deloitte, Finding green in todays shoppers. Sustainability trends and new shopper
insights, GMA/Deloitte, 2009.
•
H&M,
H&M
Sustainability
Report2008,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2008_PDF_1240
240530209.pdf, 2009.
•
H&M,
Style
and
Substance.
H&M
Sustainability
Report,2009.
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
M&S, How we do business report 2009. Doing the right thing.
http://corporate.marksandspencer.com/file.axd?pointerid=f3ccae91d1d348ff8f523ab8afe9
d8a8&versionid=fbb46819901a428ca70ecf5a44aa8ddc, 2009.
•
M&S, How we do business report 2010. Doing the right thing,
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.

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Chapter 2

2.2.6.2

Assess core product supply chains to identify priority products,
suppliers and improvement options

Description
In order to target action effectively towards improving supply chain sustainability, it is firstnecessary for retailers to understand the supply chains of their products. This technique should
be applied to core (high sales volume) products that retailers suspect have a high environmental
impact. There is a considerable body of available evidence identifying environmental hotspots
for various product groups, some of which is identified in Section 2.2.5. In addition, many
resources are available to retailers to help them quantify the environmental pressures associatedwith product supply chains, including LCA databases such as CML, Eco-Invent and theEuropean platform on LCA, and various software tools (e.g. Gemis and SimaPro) andconsultancy companies. The European Commission provides guidance and links to these tools
at: http://lca.jrc.ec.europa.eu/lcainfohub/index.vm.
Recently, a number of retailers have concentrated on quantifying the Product Carbon Footprint(PCF) of their products, in some cases for the purpose of providing consumer information.
However, best practice in supply chain assessment is to take an approach that is bothquantitative and comprehensive with respect to major environmental pressures. The range ofenvironmental pressures that occur throughout product value chains, from production through to
end-of-life, must be considered, and can be compared using lifecycle impact assessment
methodologies (normalisation and weighting of impact categories).
Some environmental pressures are not well accounted for in LCA databases and associatedmodelling methodologies. Particular attention is required when assessing impacts that are highly
dependent on the local context (e.g. biodiversity loss and water use) and indirect effects (e.g.
displacing global agricultural production into areas of high conservation value). Alternative
approaches are required to supplement LCA methodologies. Guidance on water footprint
methodologies
isprovidedbytheAlliancefor
Water
Stewardship(http://www.allianceforwaterstewardship.org/)
and
the
Water
Footprint
Network(http://www.waterfootprint.org/?page=files/home)
Full assessment of supply chains using LCA can be time consuming, although time and costrequirements are declining considerably with experience (Carbon Trust, personalcommunication). The primary objective of supply chain assessment is to identify priority
improvement options, and it is neither feasible nor necessary for retailers to perform full LCAs
for all products. Retailers should select the most efficient methods of assessment (lowest effort
required) to enable the effective implementation of supply chain improvement according tosubsequent techniques (Figure 2.81 and Table 2.41).
•••

Method 1 in Table 2.41. In many cases, critical processes contributing to environmental
impacts are sufficiently well known that retailers can identify them, and associatedimprovement options, through reference to existing scientific literature (see Table 2.34).
This method is relevant for all improvement techniques, but particularly for choiceediting and green procurement (Technique 4) – it provides sufficient information forretailers to select appropriate certification schemes for different product groups.
Method 2 in Table 2.41. The environmental impacts of some product supply chains are
not well documented, or may vary considerably depending on factors such as source
region. For such supply chains, basic LCA using region-specific data may be used to
identify improvement options. In addition, performing detailed LCA on a small subset of
product groups may offer useful insight into typical 'hotspot' processes for different typesof product. This method is particularly relevant to inform the establishment of priority
environmental criteria for products and suppliers (Technique 5).
Method 3 in Table 2.41. Where supply chain impacts are highly dependent on the source
region and/or fall outside the scope of LCA, expert knowledge on region-specificpressures is required (e.g. cumulative water demand relative to availability). Retailers caneffectively identify region-specific improvement options by working closely withBest Environmental Management Practice in the Retail Trade Sector

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Chapter 2•

independent environmental experts (e.g. WWF). This method is particularly useful totarget regional clusters of suppliers to whom environmental specifications should be
addressed (Technique 5), and supplier who should be benchmarked and targeted for better
management practice dissemination (Technique 6).
Method 4 in Table 2.41. For a number of important product groups the environmental
performance of individual suppliers can vary greatly depending on specific management
practices. For example, environmental performance across the hundreds of dairy farmers
that supply large retailers strongly depends on factors such as the type of animal-feed
used and manure management (Section 2.2.5.3 and Case study 2.8). Where it is notpossible to use third-party standards or mandate environmental criteria for products andsuppliers, environmental performance improvement requires intervention by retailers tobenchmark the performance of individual suppliers and facilitate the implementation of
better management practice (Technique 6). Such action requires supplier-specific data,and is therefore resource intensive to initiate, but represents best practice where otheractions are not applicable.

Knowledge gained during initial supply chain assessment will provide retailers with the insightnecessary to develop systematic, risk-based impact assessment and supply chain improvement
across their assortments (Method 5 in Table 2.41).

BEMP 2
INCREASING ASSESSMENT EFFORT
Identify priority product groups and environmental hotspots

1. Literature
review

2. Reference
LCA
databases

4. Supplierinformationexchange

3. Expert
consultation

Identify generic supply chain improvement options forpriority product groups

Identify supply chainsrequiring supplier-specificinformation

BEMP 3
Identify effective control points
Identify appropriate third party standards
Identify relevant environmental requirementsfor products and suppliers

Figure 2.81:

Identify supplierspecific improvement
options for priority
groups

Proposed method of prioritisation to efficiently identify supply chain improvement
options, depending on the level of detail required to implement different
improvement options

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Chapter 2
Table 2.41:

Description and best practice examples of supply chain environmental impact
assessment methods, ranked in sequence of implementation priority (easiest first)

Method

1. Use available data
to identify obvious'hot spots'

2. Refer to reference
LCA databases andperform detailed
LCA
for
exampleproduct groups

3. Work withindependent experts
to identify 'hotspots'

Description

Refer to published scientific evidence
on environmental 'hotspots' for various
product groups (e.g. Section 2.2.5) toselect priority product groups andpriority improvement options

Work with consultants, experts, or
independently using available support
tools, to identify typical 'hotspot'
processes in supply chains. Performing
detailed LCA for a few priority productgroups can be used to inform a wider
understanding of supply chain impacts.
Work with independent experts,
including environmental consultants
and
NGOs,
to
identify
key
environmental
impactsandimprovement options

4. Collate supplier datato assess performanceacross suppliers

Collaborate with suppliers to collectrelevant
data
for
performanceassessment and benchmarking acrossindividual suppliers

5. Develop risk-based
screening of supply
chainsformajor
environmental impacts

Based on knowledge gained fromenvironmental impact assessments,
develop a screening method to highlighthigh-risk supply chains for various
environmental impacts

Best practice examples
Migros established the RSPO withWWF
toaddress
tropicaldeforestation
for
palm
oil
production; IKEA and Kingfisher
identified unsustainable logging asa priority impact; H&M introduced
chemical
and
waste
water
restrictions across apparel supply
chainsTengelmann organic egg PCF(section 2.2.5.6), Henkel case study(below)

Coop Switzerland, IKEA, Migros
and M&S work with WWF toidentify priority impacts andimprovement options (e.g. forsustainable wood and fish sourcing)
Sainsburys DDG (Case study 2.8),
H&M collated water use data from296 suppliers and their subcontractors in 2009 to benchmark
water-use efficiency. M&S plan tobenchmark farmers in their
Sustainable
Agricultural
Programme
M&S and WWF have produced a
guidance document for water usethat includes guidance on how
agricultural suppliers can assesswater availability and pollution
risks (M&S-WWF, 2010)

Achieved environmental benefits
Environmental impact assessment is a prerequisite for improving the environmental
performance of supply chains, and directs retailers' efforts towards achieving maximum
environmental benefits by identifying priority product groups, processes, and suppliers.
Environmental benefits attributable to all the techniques described in this chapter are informed
and measured using environmental assessment methods. Environmental benefits are describedin Section 2.2.6.4 to Section 2.2.6.8.
Appropriate environmental indicators
Some common indicators used to express environmental impacts in LCA are listed in Table
2.42 (and Table 2.37 in Section 2.2.5.7). Average default data may be obtained from LCA
databases such as CML, Eco-Invent and the European platform on LCA. For detailed data
specific to particular supply chains, retailers must ask suppliers to provide relevant data. Somepossible types and sources of relevant data are referred to in Table 2.42. Product impacts should
be expressed per functional unit as described in formal LCA guidance (ISO 14040). For many
food products, impacts may be expressed per unit weight (e.g. per kg beef), but for otherproducts such as washing powder and light bulbs, careful definition of functional units isessential (e.g. kg clothes washed or luxes of light produced).

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Chapter 2

An indicator of retailer best practice for this technique is:•

implementation of systematic assessment (independently or through consortia) of coreproduct supply chains.

Table 2.42:

Common indicators and potential data sources for product environmental impact
assessment

Impact

LCA indicators

Data sources

Air pollution

kg air emissions of NOx, SOx, NH3, PM,
VOCs, expressed as acid or VOC or
ethylene equivalent

Process technology emission factors,
exhaust gas concentrations

Biodiversity loss

ha high-conservation-value land area lost

Climate change

kg GHG emissions, expressed as CO2
equivalent

Ecotoxicity

kg
toxic
substance
releasedtoenvironmental compartments, expressed as
1,4-dichlorobenzene (DCB) equivalent

Resource depletion

kg of finite or over-harvested renewable
resource extraction, expressed as kg
antimony equivalent

Water use

m3 water used

Water quality

kg water pollutants (COD, N, P expressed
as PO4 eq., toxic substances expressed as
1,4-DCB eq.)

Land-use records and Geographic
Information Systems (GIS)
Mass balance accounting, process
emission factors (IPCC)
Mass
balanceaccountingofsubstances used in processes,
chemical analysis to identify toxic
substances used
Mass balance accounting
Farm records, estimates based on
cropping system and climate. See
Water Footprint Network (2010) andAlliance for Water Stewardship(2010)
Massbalanceaccountingofsubstances used in processes,
chemical analysis of waste water
concentrations

Cross-media effects
It is important for retailers to consider the full range of major environmental impacts. The
current retailer focus on calculating product carbon footprints should provide an opportunity toscreen for other important impacts with little additional effort (e.g. water footprints in Casestudy 2.3 and the range of impacts presented in Table 2.37 for the washing power LCA example
in Section 2.2.5.7).
Operational data
Best practice is most readily conveyed through comprehensive case studies of product LCA, but
retailers are reluctant to provide such case studies owing to concerns over confidentiality withrespect to their own operational procedures and information provided by suppliers (Tesco,
personal communication, 2010). The washing powder LCA performed by the brandmanufacturer Henkel, presented in Section 2.2.5.7, represents a best practice example of productassessment. In this example, considering the entire product lifecycle was necessary todemonstrate that increasing the impact of production (by including enzymes) resulted in aconsiderable lifecycle impact reduction owing to lower wash temperatures during the use phase.
Data provided by Coop Switzerland also demonstrates how relatively simple LCA-based ecoaudits, using existing data sets, can be used to inform environmentally-responsible productsourcing (Case study 2.3).
Minimising the environmental impacts of products over their entire lifecycle (value chain) may
sometimes conflict with minimising impacts over the lifecycle phases that occur within the
supply chain. For products where the use phase dominates environmental impact, such as forwashing powder (Section 2.2.5.7), it is especially important that retailers consider improvement
Best Environmental Management Practice in the Retail Trade Sector

168Chapter 2

options from a lifecycle perspective. A number of observations were made by Henkel in relation
to their washing power LCA.
•
•
•
•
•

•

It can be difficult for retailers to obtain primary data (e.g. energy use) from suppliers who
are often reluctant to divulge information on operational parameters.
Logistics processes can be difficult to trace and assess owing to complex businessstructures (contractors and sub-contractors). Transport assessment often involves
assumptions about the EURO standard compliance of transport vehicles.
Consequently, assessment procedures may rely heavily on secondary data from sources
such as the Ecoinvent database.
Product Category Rules (PCR) need to be developed to standardize scope, boundary andallocation procedures for product groups in LCA.
Communication of LCA results to consumers will require internationally consolidated
methodologies to be developed for products, and should focus on key messages, such asrecommendations to reduce use-phase impacts (NB: standardised methodologies are notrequired for retailers to identify hotspots and improve supply chains).
LCA calculation is too time and resource intensive to pursue for all products.

When contracting third parties (primarily consultants) to assess product lifecycle impacts, it isimportant that retailers define the product functional unit, process boundaries, and expected
outputs (Carrefour, 2010).

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Chapter 2
Case study 2.3: Coop Switzerland assessment of fruit and vegetables
Approach
Coop Switzerland assessed 28 different fruits and vegetables, from 29 countries of origin. A range of production
methods were compared, including integrated and organic production, and field-grown and glass-house production.
Data were obtained from the Ecoinvent database (http://www.ecoinvent.org/database/), and SimaPro 7 software wasused to model different supply chains. The functional unit was defined as 1 kg of fruit or vegetable. There was afocus on GHG emissions (Figure 2.82), water use (Figure 2.83), land use and biodiversity.
Results
The carbon footprints of regionally-supplied apples and kiwis increase with time from harvest owing to storage
energy requirements (Figure 2.82). However, GHG emissions attributable to storage are lower than GHG emissions
attributable to transport from New Zealand at all times of the year. Water requirements vary considerably acrossfruits and countries (Figure 2.83). In some cases low water and carbon footprints coincide (e.g. apples from
Switzerland), in other cases there may be conflicts requiring trade-offs (e.g. avocados from Mexico). Coopdemonstrates that relatively simple ecoaudits are often sufficient to inform environmentally-responsible purchasing
decisions.
0.9
0.8

End of storage

Start of storage

0.7

kg CO2 / kg product

0.6

0.5
Start of storage

0.4
End ofstorage

0.3

0.2
Apple from Switzerl., harvest Sep
Apple from New Zeal., harvest Feb

0.1

Kiwi from Italy, harvest Oct
Kiwi from New Zeal., harvest May

0
Sep

Figure 2.82:

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Carbon footprint of apples and kiwis from regional (European) and distant (New
Zealand)
Source: Hofer, 2009.

Water for irrigation (waterfootprint UNESCO) weighted with water stress index in m3/kg productFigure 2.83:

Water footprint of fruits from different source countries
Source: Hofer, 2009.

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Applicability
In order to make most efficient use of resources, high volume (sales value) and anticipated highimpact product categories should be prioritised for initial assessment. Basic environmental
assessment methods are relevant to all retailers and all products, to select the most appropriate
product groups for choice editing and green procurement (Section 2.2.6.4) and for promotion offront-runners (Section 2.2.6.8).
More data intensive assessment methods are applicable to private label products sold by larger
retailers, to inform the implementation of supply chain improvement through environmental
requirements (Section 2.2.6.5) and supplier environmental performance benchmarking (Section
2.2.6.6).
Economics
No specific economic data were provided, but it is estimated that the cost of product LCA
assessment will decline by an order of magnitude as experience is gained and more products areassessed (Carbon Trust, pers. com.).
Time and cost burdens may be compensated by the implementation of new process efficiencies
identified during the assessment, and by revenue increases associated with value-added
products, marketing and reputational benefits.
Driving force for implementation
Retailers need to assess supply chain environmental impacts in order to begin reducing them,and thus improve the sustainability of their supply chains (see driving forces listed in Section 0).
Specific retailer objectives for supply chain environmental impact assessment are to:•••identify opportunities to leverage efficient environmental impact reduction
identify opportunities to improve the efficiency of supply chains
identify major supply chain risk factors and mitigation options.

Reference retailers
Coop Switzerland, H&M, IKEA, Kingfisher, Migros, M&S, Tengelmann.
Reference literature•
Alliance for Water Stewardship homepage, http://www.allianceforwaterstewardship.org/,
2010.
•
BSI, PAS 2050, 2008. Specification for the assessment of the life cycle greenhouse gas
emissions of goods and services, BSI, UK, 2008.
•
Carbon Trust, personal communication, telephone conversation March 2010.
•
Carrefour, Carrefour and TaraPak Global Packaging project pilot project. Summary
report, Carrefour, France, 2010.
•
EC JRC, Carbon footprint – what is it and how to measure it. EC, Ispra, 2007.
•
EC JRC, European Lifecycle Reference Database (ELRD) and LCA Resources Directory,
http://lca.jrc.ec.europa.eu/lcainfohub/index.vm, EC, Ispra, 2007.
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009.
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
Hofer, 'How to reduce the environmental footprints of consumer goods: LCA Studies on
fruit and vegetables production', 37th LCA discussion Forum, Lausanne, Switzerland,
19.03.2009.
•
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
•
ISO, ISO 14040 Environmental management – life cycle assessment – Requirements andguideline, ISO, Geneva, 2006.
•
Kingfisher,
Responsibility
reportwebpage,
http://www.kingfisher.com/responsibility/index.asp?pageid=61, 2010.
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Chapter 2

•
•
•
•
•
•
•
•
•
•

M&S-WWF, Good water stewardship: guidance for agricultural suppliers, M&S-WWF,
2010.
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en, 2010.
Öko Institut, Product Carbon Footprint Memorandum, Öko Institut, Berlin, 2009.
PCF Pilot Project, Case study Persil Megaperils by Henkel Ag & Co. KGAA, PCF Pilot
Project, Germany, 2009.
PCF Pilot Project, Naturkind organic free-range eggs by the Tengelmann Group, PCF
Pilot Project, Germany, 2009.
PCF Pilot Project webpage, http://www.pcf-projekt.de/main/background/product-carbonfootprint/, 2010.
Sainsbury's,
Corporate
Responsibility
Report,2010,
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010.
Tesco, personal communication, email contact February, 2010.
UN, Global Reporting Initiative Environmental Reporting Indicator Protocol Guidelines,
UN, Geneva, 2009.
Water Footprint Network homepage, http://www.waterfootprint.org/?page=files/home,
2010.

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2.2.6.3

Identify effective product supply chain improvement mechanisms

Description
Reliance on external auditing of suppliers for compliance with the third-party standards is an
important approach to supply chain improvement, and can be relied upon where retailers
implement green procurement (Section 2.2.6.4 and Section 2.2.6.8). However, the availability
and coverage of widely recognised environmental standards is currently insufficient to form thebasis of supply chain improvement across all priority product groups. For longer supply chains,
important processes and impacts may fall outside the scope of certified standards. Therefore, inorder to drive widespread environmental improvement of private label supply chains, it isnecessary for retailers to identify chains of custody and control points that can be used to verify
compliance with their own standards or requirements. This technique is therefore a criticalprerequisite for retailer intervention to drive supply chain improvement (Section 2.2.6.5 andSection 2.2.6.6).
It can be particularly challenging for retailers to establish effective improvement mechanisms
for supply chains where these chains:•••

have many levels of supplier or subcontractors (see Case study 2.4);
have a broad base of many hundreds, or thousands, of raw material suppliers (e.g. milk
and cotton);originate in developing regions where regulatory requirements and/or enforcement are
weak.

These features are increasingly common for globalised product supply chains, and the latter two
features are associated with high improvement potential. Small scale farmers are often
associated with under-developed farming practices. Meanwhile, retailers and branded productmanufacturers are often the only entities in a position to effectively influence the social andenvironmental performance of suppliers in regions where regulatory control is weak. Despite
the challenges of doing so, retailers are wise to exert more supply chain control in such regions,to protect their reputation from supply chain 'scandals'.
Many retailers have established mechanisms to control social conditions (employment, healthand safety) throughout important supply chains – in particular for apparel supply chains
following heightened public awareness of poor working conditions in apparel factories since theearly 1990s. Retailer codes of conduct and contractual agreements for suppliers typically focus
on social conditions (see Table 2.28 in Section 2.2.3), but are increasingly including
environmental criteria. However, few retailers demonstrate a level of control over supply chain
environmental performance equivalent to the best third-party certification schemes indicated inTable 2.29, and at best such control is effectively exerted over a small number of priority supply
chains.
Figure 2.84 provides an overview of the main control options available to retailers. If retailers
do not delegate supply chain control to third party certification, they may need to establish
collaboration with first tier suppliers to obtain information about their operations, and theoperations of second-tier suppliers and sub-contractors. It may be necessary to approach second
tier suppliers for further information, but this is complicated in the absence of contractual
agreements between the retailer and these suppliers. Tracking down entire supply networks isoften not feasible, and it is therefore important that critical control points are identified inrelation to:••

influence over relevant processes driving environmental impact (section 2.2.6.2)
potential for control through specification of verifiable requirement criteria

Two principal mechanisms can be used by retailers to influence the environmental performanceof suppliers beyond the first-tier, the first a form of control, the second a form of influence:

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Chapter 2••

contractual agreements with first-tier suppliers that place responsibility for ensuringsecond-tier supplier performance with themtargeted intervention directed at key lower-tier suppliers to encourage them to implement
better management practices.

Figure 2.84 indicates a hierarchy of the main control options available to retailers, in order ofthe level of control they exert over supply chains (highest first).
1. Delegation of environmental performance regulation to certification organisations (i.e.
exclusively purchasing certified products – see Section 2.2.6.4 and Section 2.2.6.8).
2. Mandatory environmental requirements for first tier suppliers (e.g. IKEA's IWAY Code of
Conduct (Case study 2.6). These may be enforced by retailer or independent auditing.
3. Mandatory environmental requirements for second tier suppliers (e.g. H&M's restrictedchemical list in Case study 2.4; IKEA's Forestry Standard in Case study 2.6). These can be
enforced through product testing (e.g. for chemical residues) and requirements for detailed
record keeping.
4. Intervention to encourage better practices by benchmarking suppliers against best
performers and disseminating best practice techniques (e.g. H&M's Cleaner Production
Programme in Case study 2.4 or Sainsbury's DDG in Case study 2.8). This may be applied
to any tier of the supply chain.

Figure 2.84:

The major control options available to retailers to exert influence over their supply
chainsThe level of control does not necessarily correlate with environmental improvement potential. A
large portion of supply chain improvement potential is located at the supply chain base, whereretailer control is often lowest. For these suppliers, including farmers, well-targeted intervention
to improve the performance through the dissemination of BMPs can be more effective thanindirect requirements expressed in contracts with first-tier suppliers. Examples of this include
the Better Cotton Initiative (Case study 2.7), H&M's Cleaner Production Programme (Casestudy 2.8), and Sainsbury's Dairy Development Group (Case study 2.8) in Section 2.2.6.6.
Front-runner retailers employ a number of methods simultaneously to effectively drive
improvement across different supply chains, or different levels of supplier within the same
supply chains. Two Swedish retailers, H&M and IKEA, publish their approaches to theidentification of chains of custody and the establishment of control points for key supply chains(Case study 2.4, and Case study 2.6 in Section 2.2.6.5). In addition, C&A intervenes at different
levels in the apparel supply chain to increase organic certification (Case study 2.11 in Section
2.2.6.8).

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Achieved environmental benefits
As with environmental impact assessment (Section 2.2.6.2), identifying chains of custody andestablishing control points is a prerequisite for improving the environmental performance of
supply chains. This technique enables retailers to address supply chain hotspots, and is a direct
prerequisite for retailers working with suppliers to improve their environmental performance(Section 2.2.6.5 and Section 2.2.6.6). The environmental benefits listed in those sections are
therefore attributable to the identification of supply chain improvement mechanisms as
described in this technique.
Appropriate environmental indicator
Retailer performance in this technique is ultimately reflected in indicators for Techniques 4 to 6,
and Technique 8 (Section 2.2.6.4 to Section 2.2.6.6, and Section 2.2.6.8). The ideal summary
indicator for retailer performance in this technique is:•the percentage of total sales represented by products from supply chains that areenvironmentally improved through use of certification, or retailer standards, orintervention.

An easier to calculate alternative is:•the number of priority product supply chains that have been extensively environmentally
improved (improved products represent at least 50 % of sales value within the group)
through application of best practice techniques.

Cross-media effects
There are no significant direct cross-media effects associated with this technique. Retailers needto balance environmental and social impacts when deciding on priority stages, processes andcriteria to influence within supply chains, as referred to in Section 2.2.6.2.
Operational data
Environmental criteria can be integrated into existing mechanisms of supply chain control forsocial standards, for example by being added to existing lists of social criteria that suppliers are
expected to comply with, as defined in contractual agreements or codes of conduct (Section
2.2.6.5). For specialist retailers, systematic and regular auditing of all major suppliers is
possible (H&M and IKEA: Case study 2.4 and Case study 2.6 in Section 2.2.6.5), whilst forgrocery retailers it is important to target high-risk supply chains based on environmental
assessment (Technique 2 in Section 2.2.6.2), and further to target high-risk suppliers forauditing according to criteria such as location – for example, IKEA's approach to targeted wood
supplier auditing outlined in Case study 2.6. The WWF's Global Forest and Trade Network
provides an online guide to the responsible sourcing of forest products that may be of use forother products: http://sourcing.gftn.panda.org/index.php?id=1
Owing to diverse supply chains containing large numbers of suppliers, and practicalities ofcompliance assessment, environmental criteria contained in general supplier agreements of large
retailers are often basic, and do not adequately address environmental hotspots. To drive
significant environmental improvement, product- and supplier- specific criteria are required(e.g. H&M's requirement for wet-process suppliers to comply with BSR Water Quality
Guidelines, and IKEA's Forestry Standard).
Retailers can exchange compliance information regarding specific suppliers through systems
such as the UK-based Sedex supplier ethical data exchange system (over 400 members, of
which
M&S,
Tesco
and
Waitrosearefounding
members:
http://www.sedex.org.uk/sedex/go.asp?u=/WebSite/home&pm=6&location=Home) in order to
optimise supplier selection and auditing processes. The scope of Sedex is being expanded toconsider some basic environmental criteria, and this should assist retailers to select suppliers'
based on such criteria in the future.

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Figure 2.85 indicates how front-runner retailers can use a combination of control mechanisms,
targeted for specific product groups and product ranges, to comprehensively improve theirproduct assortment. This includes use of third party certification, retailer-defined requirements,
and collaboration with other retailers to enable more efficient auditing of common requirements.
Applicability
Any retailer can identify the most effective supply chain improvement mechanisms:••

for large retailers with private label products, all aspects of this technique can be
implemented.
for small retailers, this technique is restricted to identification of priority products forchoice editing or green procurement based on third-party certification.

Economics
No economic data were provided, but supply chain control and auditing costs are small in
relation to the potential costs associated with reputational damage from product or supply chain'scandals'.
When comparing the cost of third party certification (Technique 4) with the implementation ofretailer-defined criteria (Technique 5), retailers should carefully consider the effectiveness andvalue-added of the control mechanisms, both in terms of environmental effectiveness andconsumer perception (see Section 2.2.6.5).

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Case study 2.4: H&M's comprehensive approach to management of a complex supply chain
Code of Conduct
In 2009, H&M had 700 suppliers operating 1900 apparel factories (H&M, 2010). In 1997, H&M drew up
a Code of Conduct (CoC), last updated in 2009, containing eight sections: Legal requirements; Childlabour; Safety; Workers' rights; Factory conditions; Housing conditions; Environment; Monitoring andcompliance. The last section includes standards on waste and chemical management procedures. A five
point grading system is used to measure supplier compliance with the CoC: Permanently rejected;
Rejected; Temporary; Insufficient; Satisfactory. All new suppliers must meet 'Temporary Grade', and areallowed six months to achieve the 'Insufficient' grade. Suppliers are rejected if they move down to'Temporary' grade.
Compliance is monitored by 70 auditors who implement H&M's Full Audit Programme (FAP) across allapparel factories (direct suppliers and subcontractors). In 2008, 2509 CoC compliance audits were
performed (1145 in the Far East, 615 in Asia, 749 in Europe, the Middle East and Africa), taking up to six
person-days each. 254 production units were graded 'Rejected' (contracts suspended) and one supplier
was permanently rejected. In 2008, 515 audits on potential new production units resulted in 138 graded'Rejected' (H&M, 2009).
Restricted Chemicals
A wide range of chemicals are used in textile production. H&M's suppliers are contractually bound tocomply with a list of banned substances which must not be used, or used only in limited quantities. The
list was composed in 1995, and was most recently updated in 2008 (Appendix A4) to include over 180
substances. Sensitive analytical methods such as gas chromatography high-resolution mass spectrometry
are used to detect ultra-trace quantities in tens of thousands of compliance tests carried out every year.
Suppliers are trained to enforce chemical restrictions compliance among sub-contractors.
Waste water limits
Since 2006, H&M have required all suppliers to comply with BSR Waste Water Quality Guidelines(Appendix A3). All suppliers with wet processes (textile finishers) are requested to submit results fromstandard water quality tests conducted by H&M-approved laboratories. Where limits are exceeded,
suppliers are requested to devise draft action plans. Suspicious (e.g. very low) reported values areinvestigated with unannounced visits. The FAP also checks waste water plant management and sludge
handling. In 2009, waste water quality was assessed for 198 wet-process production units: 78.8 %suppliers reported BOD5 within the lowest threshold (30 mg/l); 93.3 % suppliers reported COD within thelowest threshold (200 mg/l); and 76.3 % suppliers reported TSS within the lowest threshold (30 mg/l).
Reaching beyond first-tier suppliers
Much of the lifecycle environmental impacts of H&M products arise lower down on the production chain,beyond first-tier suppliers directly contracted by H&M. In addition to placing responsibility for subcontractor requirements with first-tier suppliers (above), H&M implement a Cleaner Production
Programme aimed to improve the environmental performance of fabric dyeing mills (Case study 2.9 in
Section 2.2.6.5 and participate in the Better Cotton Initiative (Case study 2.7 in Section 2.2.6.5).

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Figure 2.85:

Flow chart representing the comprehensive control Coop Switzerland exerts overfood product suppliers, including third party certification and auditing by Coop
Switzerland and collaborating retailers
Source: Information from Coop Switzerland (2010) and own elaboration

Driving force for implementation
Greater control over supply chains has been shown to improve business performance in general(Accenture, 2009), and can add value to product assortments. In the medium term, the mostsuccessful retailers will be those that ensure their supply chains are sustainable in the context ofincreasing resource scarcity and environmental carrying capacity (see Section 0).
Reference retailers
C&A, Coop Switzerland, H&M, IKEA, M&S, Sainsbury's.
Reference literature•
Better Cotton Initiative homepage, http://www.bettercotton.org/, 2010.
•
C&A, Acting sustainably. C&A Sustainability Report 2010.
a.com/service/press/material/download.php/2592, 2010.

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www.c-and-

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•
•
•
•
•
•
•
•
•

Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
H&M,
H&M
Sustainability
Report2008,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2008_PDF_1240
240530209.pdf, 2010.
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009.
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
IKEA. IWAY Standard. Minimum requirements for environment and social & working
conditions when purchasing products, materials and services. IKEA, 2008.
IKEA,
IKEA
Sustainability
Report08.
http://theneverendinglist.ikea.ca/en/pdf/en/Report_IKEASE_2008.pdf, 2009.
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
M&S, How we do business report 2010. Doing the right thing.
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010.
Sainsbury's,
Corporate
Responsibility
Report,2010,
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010.
Sedex
homepage,
http://www.sedex.org.uk/sedex/go.asp?u=/WebSite/Home&pm=6&location=Home,
2010.

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2.2.6.4

Choice editing and green procurement of priority product groups
based on third party certification

Description
This technique describes how retailers can demand widespread certification (i.e. target of 100 %within priority product groups) according to third party environmental standards. Thesestandards are broadly classified as basic (Table 2.43), improved (Table 2.44), or exemplary(Table 2.45) – according to the rigour and comprehensiveness of environmental requirements,
as outlined in Section 2.2.5.2, and apply to the product or to the supplier. Retailers may require
100 % certification according to exemplary standards where these standards relate to sustainable
harvest rates (i.e. FSC and MSC), but universal certification is not regarded as best practice forfront-runner ecological standards such as official environmental labels (e.g. EU Ecolabel) andorganic (see Section 2.2.6.8). Retailer performance is indicated by the highest achieved (ortarget) certification rate, for the highest classification of standard. Performance is assessed, andbest practice is identified, at the level of individual product groups.
Consumers are often overwhelmed with information about products. Horne (2009) reports that
97 % of consumers think there is too much information on products, and consumers do not trust
retailers' environmental claims about their products (in contrast, NGO claims are widely
trusted). This may partially explain the considerable deficit between the high proportion of
consumers who claim that environmental considerations are important to them when buying
products and the proportion of consumers who actually select products based on environmental
criteria (IBM, 2008; EC, 2009). In fact, many consumers may implicitly assume that products
available to them are sustainably produced and sourced. Ensuring that products comply withminimum environmental standards is regarded by front-runner retailers as a 'gate-keeper' duty totheir customers (Hofer, 2009), and is an effective way for retailers to mitigate against
reputational damage that can arise from product 'scandals'.
The most robust method for retailers to ensure that their supply chains comply with definedenvironmental performance criteria is to require third party certification according to relevant
and widely-recognised environmental standards. This technique is implemented through choiceediting and green procurement. For large retailers, widespread green procurement necessitates aplan to require existing suppliers to become certified according to appropriate third party
standards. Where appropriate third party standards are available for a particular product group,
as determined through the application of Technique 2 (Section 2.2.6.2) and Technique 3(Section 2.2.6.3); requiring suppliers to become certified according to these standards ispreferable to the requirement for compliance with retailer-defined standards (Technique 5 in
Section 2.2.6.5), as indicated in Figure 2.78 (Section 2.2.6), because:••••third party certified standards are usually the strongest and most comprehensive form of
supply chain control available to retailers (section 2.2.6.3);
coordinated use of common widely-recognised standards across retailers and brandedproduct manufacturers represents the most efficient approach to widespread supply chain
improvement;
third party standards are the most transparent and credible indicators of environmental
value-added for the consumer;
coordinated use of common widely-recognised standards reduces label proliferation andenhances consumer recognition of environmental value-added.

Choice editing may involve the complete removal of particular products from retail assortments
in response to strong environmental concerns. For example, a number of retailers do not stock
acutely endangered fish species (e.g. those on the red lists of Greenpeace, IUCN or MSC). A
recently published report highlights the role that choice editing by retailers could play inpromoting diet changes associated with health and environmental improvements in Europe (EC,2009). Buying products certified as locally or regionally produced (i.e. within Europe) is a way
to ensure that the worst practices in global supply chains are avoided (Table 2.43). However, it
is preferable that retailers require certification beyond basic standards, and require improved
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Chapter 2(Table 2.44) or exemplary (Table 2.45) standards that can be applied to products and suppliers
from across the globe.
There is overlap between the application of this technique and Technique 8 – encouraging
consumers to buy front-runner ecological products (Section 2.2.6.8). Technique 8 focuses on
ISO Type-I labelling for consumers, whilst this technique emphasises retailer use of businessto-business certification to screen products before they are offered to consumers. Nonetheless, it
is important for retailers to communicate their choice editing and green procurement actions,and the consequent supply chain improvement, to consumers through advertising, information
displays, and product labelling.
Leading retailers contribute to the development of third party product standards, along withstakeholders from NGOs and industry. Migros was largely responsible for initiating theRoundtable on Sustainable palm Oil (RSPO) that has developed a palm oil certification
standard. It is important that retailers keep track of the evolution of existing standards, and theintroduction of new ones. One important new standard close to completion is the Aquaculture
Stewardship Council standard: http://www.ascworldwide.org/. Where it involves coordinateddevelopment of widely recognised international standards, participation in standard
development by retailers can reduce the risk of 'standard proliferation', and thus represents bestpractice (see Section 2.2.6.7).
Achieved environmental benefits
The environmental benefit achieved by requiring products to be certified according to third
party standards is a function of:••

the difference in environmental performance between suppliers of certified and noncertified products (i.e. the additionality of environmental requirements beyond prevailingenvironmental performance)
the volume of conventional products replaced by certified products (approximate toadditional sales of certified products).

This cannot be calculated precisely, but can be estimated for particular impacts.
The environmental improvement potential associated with implementation of BMPs acrosssmall farms in developing countries is considerable. Case study 2.7 in Section 2.2.6.6
summarises the substantial improvements in the environmental efficiency of cotton production
achieved by farmers participating in the BCI scheme. Three year data for trial farms in India
indicate that water use has been reduced by 49 %, pesticide use by 81 % and fertiliser use by
18 %, on average. For trial farms in Pakistan, the equivalent reductions are: 32 % for water use,
32 % for pesticide use, 38 % for fertiliser use (WWF, 2010). Meanwhile yields and grossmargins increased.
To provide an indication of environmental benefits associated with the implementation of thistechnique, the main features and environmental benefits associated with widely used standards
are displayed in Table 2.43, Table 2.44 and Table 2.45 – for standards classified as basic,
improved and exemplary, respectively.

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Table 2.43:

Widely-used third party basic environmental standards applicable to productgroupsStandard

GG: Global Good
Agricultural Practice
(GAP)
and
benchmarked
standards

RLF: Red-listed fish

NPC: National (orregional)
Product
Certification

OT: Oeko-Tex 1000

Features
The GlobalGAP standard is widespread (94 000
certified producers in over 100 countries), and isprimarily focused on food hygiene and health andsafety. Environmental protection arises from sitemanagement and waste disposal 'musts' (see Table
2.31 in section 2.2.5.2) and various 'recommended'measures to reduce erosion and water use(GlobalGAP, 2009)
Greenpeace, the IUCN and MSC have listed fish
species from particular regions that are likely tocome from unsustainable fisheries (Greenpeace,
2010; IUCN, 2010; MSC, 2010).
A number of certification schemes guarantee that
products have been sourced within a particular
European country or region, including the Red
Tractor (Assured Food Standards, 2010) in the UK
and Suisse Garantie (Suissegarnatie, 2010) in
Switzerland.
The Oeko-Tex 100 standard precludes the use of arange of banned and harmful substances in textile
products, enforced through analysis of products
for residues. In addition to these requirements, theOeko-Tex 1000 standard requires textile
processing facilities to comply with basic
environmental management criteria, including
emission limits for waste water and air emissions(Oeko-Tex, 2010).

Best Environmental Management Practice in the Retail Trade Sector

Main environmental
benefits

Avoids excessive use ofresourcesandbadenvironmental practices

Preserves
acutely
endangered fish species
Avoidsworst
environmental
management
practices
employed in some poorly
regulateddeveloping
countries

Avoids worst ecotoxicity
impacts
Safeguards air and waterfrom intense pollution

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Table 2.44:

Widely-used third party improved environmental standards applicable to productgroupsMain environmental
benefits

Standard

Features

BCI:
Better
Cotton Initiative

Farmers must comply with basic minimum
environmental principles and criteria for initialcertification, and demonstrate continuous
improvement
throughcompliancewithadditional environmental criteria in subsequent
years – see Case study 2.7 (BCI, 2010)

Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

BCRSP: Basel
Criteriaon
Responsible Soy
Production

Established in 2004 by Coop CH and the WWF,
the BCRSP is composed of 37 criteria relating toenvironmental management and minimization ofchemical inputs.

Avoids agricultural encroachment
into high conservation areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

BSI:
BetterSugarcane
Initiative

4C:
CommonCode for the
CoffeeCommunity
Association

FT: Fairtrade

PEFC:
Programme for
the Endorsementof
ForestCertification

RA: Rainforest
Alliance

RSPO: Round
Table
on
Sustainable
Palm OilComprises 48 metric benchmarks for sugarcane
farmers and processors, based on five key
sections, including Obey the Law; Production
and Processing; Biodiversity and Ecosystems;
Continuous Improvement. Contains rigorously
defined, performance-based standards – seeTable 2.46 (BSI, 2010)
Based on ten unacceptable practices, and a CodeMatrix comprised of 28 principles for which'green', 'yellow' and 'red' criteria have been
defined (4C Association, 2010). Farmers andprocessors must achieve an average of 'yellow'
across principles
This exemplary social standard contains detailed
requirements for land use and goodenvironmental management practices forfarmers, including biodiversity management andnutrient and pesticide application restrictions(Fairtrade, 2009)
The PEFC endorses national certification
systems and requires compliance with more than
200 criteria for sustainable forest management,
including environmental requirements aimed atmaintaining and enhancing forest resources andbiodiversity
The Rainforest Alliance Certified seal (SAN,
2010) applies to over 100 types of crops andlivestock from Africa, Latin America, Asia and
Hawaii. Farmers must comply with at least 80 %of applicable social and environmental criteria
from a list of 100 criteria within ten principles,
including specific requirements for goodenvironmental management
The RSPO standard (RSPO, 2007) is based on
five principles, including environmental
responsibility and good agricultural practice,and contains 39 and criteria regarding
traceability and social and environmental
performance. RSPO certification and trading isoutlined in Case study 2.5.

Avoids agricultural encroachment
into high conservation areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution
Avoids agricultural encroachment
into high conservation areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution
Avoids encroachment into highconservation-value areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution
Avoids encroachment into highconservation-value areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

Avoids encroachment into highconservation-value areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

Avoids agricultural encroachment
into high conservation areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

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Chapter 2Standard

RTRS: Round
Tableon
Responsible Soy

UTZ

Table 2.45:

Standard

ForestStewardshipCouncil (FSC)

MarineStewardshipCouncil (MSC)

Main environmental
benefits

Features
The RTRS standard (RTRS, 2010) was finalisedin 2010 and is based on five principles,
including environmental responsibility and good
agricultural practice. Guidance is provided for
98 specified compliance criteria, including
requirements for environmental monitoring andspecific management plans that provide aframework for continuous improvement.
Based on a code of conduct comprising 175
control points across 11 themes, including many
relevant environmental requirements (see Table
2.32 in Section 2.2.5.2). Mandatory control
points increase from 95 in first year ofcertification to 152 in 4th year of certification,and must be complied with where applicable tooperations (UTZ, 2010)

Avoids agricultural encroachment
into high conservation areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

Avoids encroachment into highconservation-value areas
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

Widely-used third party exemplary environmental standards applicable to productgroups that are relevant for green procurement
Features
FSC certification requires evidence of long-term
tenure and chain of custody documentation forforests and forest products. Ten principles and 56
criteria
cover
traceability,
socialandenvironmental
aspects.
The
overriding
environmental requirement is to achievesustainable harvesting that maintains or enhances
forest value, ecosystem integrity and biodiversity,
enforced through requirements for monitoringand management plans – see Table 2.33 in
Section 2.2.5.2 (FSC, 2002)
MSC certification is based on three principles andassociated criteria that require fisheries to besustainable. Specifically, MSC requires: (i)maintenance and re-establishment of healthy
populations of targeted species; (ii) maintenanceof the integrity of ecosystems; (iii) development
and maintenance of effective fisheries
management systems, taking into account all
relevant biological, social, and environmental
aspects; (iv) compliance with relevant laws andinternational agreements (MSC, 2010)

Main environmental
benefits
Avoids encroachment into highconservation-value areas
Maintainsandenhancesbiodiversity and ecosystem
functions
Reduces resource consumption
Reduces soil erosion
Reduces water and air pollution

Preservation of endangered fish
species
Maintenance of marine fisheryecosystem
integrity
andbiodiversity

NB: Other important exemplary standards denote front-runner products that represent a small portion of the market,
and whose production is more appropriately stimulated by labelling and consumer demand (Section 2.2.6.8)
rather than green procurement

Appropriate environmental indicator
Indicators for this technique are divided into product supply chain indicators, and retailer
performance indicators.
For product supply chains, there are many relevant indicators of environmental performance, as
indicated in Section 2.2.6.2, that are used to assess compliance with third party environmental
standards. Environmental standards should contain specific environmental management
requirements (e.g. Table 2.32 in Section 2.2.5.2) or quantitative minimum benchmarks (TableBest Environmental Management Practice in the Retail Trade Sector

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Chapter 2

2.46 and Appendix A3), and possibly requirements for continuous improvement (e.g. the BCI:
Case study 2.7 in Section 2.2.6.5).
Table 2.46 contains some relevant environmental performance benchmarks contained within the
BSI certification standard launched in 2010. Compliance with the benchmarks is mandatory toreceive certification, along with a demonstrated commitment to continuous improvement.

Table 2.46:

Some environmental performance benchmarks required by the Better Sugarcane
Initiative

Environmental impact

Indicator

Acidification
Ecotoxicity
Energy use
Eutrophication
GeneralGlobal warming burden
Material use

SO2 eq.
Pesticide use (active ingredient)kJ
PO4 eq.
Environmental Management Plan
CO2 eq.
kg%
legally-protectedor
highconservation value areas used

Natural habitat loss
Water consumptionlWater pollution

Chemical oxygen demand (COD)

Benchmark< 5 kg/kg sugar< 5 kg/ha/yr< 2500 kJ/kg sugar< 120 kg/ha/yr
Implemented< 0.4 t/t sugar< 11 kg/kg sugar0
Farm: < 50 l/kg cane
Mill: <20 l/kg sugar< 1 kg/t sugar

Source: BSI, 2010

Retailer performance with respect to product supply chain certification can be measured
quantitatively according to the following indicators:••

the percentage of products sold within a particular product group that are certified
according to a particular third party environmental standard, according to sales value;
the environmental rigour and completeness of the third party standard, as broadly
indicated by categorisation according to basic, improved or exemplary.

Retailers may express certified percentages in relation to private label sales for particular
product groups, or to all sales for particular product groups in cases where branded products arealso certified. This should be clearly specified in reporting. A retailer may express 100 %compliance with a basic environmental standard based on exclusion (e.g. Red List Fish) only
where all red-listed products (e.g. fish species) have been removed from the product group (e.g.
wild-catch seafood).
Where a portion of sales within a product group is certified to a higher standard than thestandard being reported (e.g. front-runner standards), this portion is included as certified to thelevel of standard reported in this technique, but will also be reported separately in Section
2.2.6.8.
Table 2.47 displays current best practice in terms of third party standard certification of priority
product groups. Amongst food products, coffee, fats and oils, fruit and vegetables, seafood andsugar are the products for which widespread or universal certification is most often required.
Many retailers have stopped selling critically endangered fish species such as eel and sturgeon(Table 2.47) and many retailers plan to achieve 100 % RSPO certified palm oil by 2015 (Table
2.47). In addition, Coop Switzerland (personal communication) claims that approximately 1%of overall food sales are Fairtrade certified, the highest apparent certification rate for Fairtrade.
Amongst non-food products, a number of retailers have minimum energy-efficiency
requirements for electronic goods based on energy ratings, with front-runner retailers only
selling appliances rated at least an A+. A number of retailers buy BCI-certified 'better cotton'.
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IKEA currently sources around 10 % of its cotton from BCI farmers, and has a target to source
100 % 'better cotton' by 2015 (IKEA, 2010). Meanwhile, 50 % of the wood sold in the
Kingfisher group was FSC certified in 2010, including 76 % of wood sold in the B&Q UK
division (Kingfisher, personal communication) (Table 2.47). The Kingfisher group is aiming for
100 % 'well-managed' (FSC or PEFC certified, or Global Forest Network or WWF approved) or
recycled wood. B&Q UK achieved this target in February 2011 (Kingfisher, personalcommunication).
Front-runner retailers are rapidly increasing the rate of third party certification across productgroups. Therefore, 'benchmarks of excellence' proposed in Table 2.47 are based on targets, andshould be interpreted as such. It is proposed that retailers and verifiers interpret excellent retailer
performance for a specific product group thus:•

the retailer demonstrates on-track progress within the context of a detailed plan to achieve
the proposed benchmark.

Although this technique targets widespread certification of product groups, it may beappropriate to express performance for more disaggregated product groups than the summary
product groups presented in Table 2.47. For example, red meat could be divided into beef, lamb,pork products. Performance could be reported for specific fruit and vegetables. The following
indicator may be used to represent the extent of certification across entire product assortments:•

the number of product groups where more than half of sales are certified according to athird party environmental standard.

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Chapter 2
Table 2.47:

Performance of leading retailers and proposed benchmarks of excellence, with respect to independent certification of priority product groups (expressedas percentage of product group certified)

Product group
Coffee, tea
Dairy

FOOD PRODUCTS

Fruit and veg

Fats and oils

Improved

Grain
products

Basic
Improved
Basic
Improved
Basic
Improved
Basic
Improved
Exemplary
Basic
Improved
Exemplary
Basic
Improved
Basic
Improved
Improved
Improved

Poultry, eggs
Red meat
Seafood(wild catch)
Sugar

NON-FOOD

Standard
classification
Improved
Basic
Improved
Basic
Improved
Improved

HouseholdElectronic
goods
Textiles
Wood
and
paper
products

Exemplary

Best performers
2010
Target (year)
SSCS
100 % FT ; 20 % 4C
100 % 4C (2012)CS
4C, FT, UTZ
No data
No data
GG
See retailer-defined standards (Technique 5) and improvement schemes (Technique 6)
100 % GG CS,ICA,MG,RW
GG
FT
13 % FTCS;100 % FT (bananas)SS
See retailer-defined standards (Technique 5) and improvement schemes (Technique 6)
100 %
RSPO
(2012)WE;
M&S,MG
CR,CS,M&S,MG,SS,TO(2015);RSPO(GreenPalm 100 % Green Palm certificates
CS,MG
100
%
RTRS
(2014)
certificates), RTRSNA
NA
GG
See retailer improvement schemes (Technique 6)
NANA
GG
See retailer-defined standards (Technique 5) and improvement schemes (Technique 6)
NANA
GG
See retailer-defined standards (Technique 5) and improvement schemes (Technique 6)
100 %AD,CS,ICA,MG,M&S,SS,WE
RLF (avoidance)
See retailer-defined standards (Technique 5)
62 % MSCM&S
100 % MSC (2012)M&S
MSC
NA
GG
100 % FTM&S;SS (bagged sugar)
Fairtrade
See environmental labelled product sales (Technique 8)
NA
NA
NA
CS,MG
100
%A+
100 %
A+ ER
OT
OT
100 % OT
3 % FTM&S; 12 % BCIIA
100 % (2015)IABCI
See retailer-defined standards (Technique 5)
See retailer-defined standards (Technique 5)
90 % FSC (2012)SS;
22 % FSCIA; 76 % FSCB&Q; 88 % FSCSS
100 % FSCIA
FSC
Applicable standards

Proposed benchmark
100 % improved
100 % basic
100 % basic

100 % improved
100 % basic
100 % basic
100 % basic

100 % exemplary
100 % improved

100 % improved
100 % improved

100 % exemplary

NB: Applicable standard abbreviations as described in Table 2.43, Table 2.44 and Table 2.44.
AD = Axfood, CR = Carrefour, CS = Coop Switzerland, IA = IKEA, KR = Kingfisher, MG = Migros, RW = REWE, SS = Sainsburys, TO = Tesco, WE = Waitrose

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Chapter 2

Cross-media effects
Where standards appropriate to particular product groups and their impacts are selected, there
should be no significant cross-media effects. However, for some product groups, retailers mayneed to balance environmental requirements with requirements across different aspects ofsustainability (social conditions, animal welfare, health, etc.) when selecting appropriate
product standards.
Cross-media effects may be avoided by selecting standards that comprehensively cover socialand environmental aspects, such as Fairtrade, or by requiring certification according to multiple
standards.
Operational data
Selection of appropriate environmental standards for product certification should be assessed ona product-by-product basis. Table 2.34 in Section 2.2.5.1 indicates the product groups,
processes and environmental impacts addressed by some widely recognised independent
standards. Table 2.48 lists questions that can be used to determine the appropriateness of aparticular standard for a particular product group.

Table 2.48:

Questions to assess the appropriateness of a product standard for a particular
product group

Question
Is choice editing or certification the most effective improvement option,
for this product group, as identified in Technique 3 (Section 2.2.6.3)?
Does this standard address product supply chain hotspots identified inTechnique 2 (Section 2.2.6.2)?
Do certification requirements represent significant environmental
improvement (see classification in Section 2.2.5.2)?
Is there a more widely recognised standard with similar environmental
requirements?
Does the standard contain sufficient social requirements, or is itcompatible with another social standard?
Are there a sufficient number of accessible suppliers already certified
according to this standard, or can existing suppliers be asked to achievecertification?
Is the net retailer cost of widespread certification proportionate tomedium-term benefits (considering pricing and marketing opportunities,
public relations, medium-term business sustainability, etc.)?

Answer required
for selection
Yes
Yes
Yes
No
Yes
Yes

Yes

Retailers can improve the efficiency of green procurement by forming alliances, such as the
Coopernic Alliance comprised of Coop Switzerland, Colruyt, Conard, E.Leclerc, and Rewe
Group. Such alliances can facilitate the exchanges of know-how and best practice, and lower
costs through pooled purchasing and efficient delegation of responsibilities. They assist theestablishment of standards so that they become widely-recognised, and the implementation ofretailer-defined environmental requirements (Section 2.2.6.5).
The number of suppliers certified according to any particular standard is limited, and it isunlikely that large retailers can simply shift to certified suppliers. Existing suppliers may bereluctant or unable to incur certification costs. In such cases, retailers may be required to take amore proactive approach than green procurement, and assist supplier certification. As referred
to in Section 2.2.6.5, Coop Switzerland, Migros and the Rewe are helping fruit and vegetablesuppliers in Italy, Morocco and Spain to comply with GAP standards by offering free advice
and training. Retailers including C&A, Coop Switzerland, IKEA and Rewe are working with
Indian cotton farmers to help them supply more sustainable cotton.
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Chapter 2

Where products are commonly used as ingredients in final products (e.g. palm oil in soap andfood), universal certification of private label products may require extensive collaboration with
suppliers to ensure that they use only certified ingredients. In such cases, full implementation ofminimum standard certification goes beyond green procurement, and requires the establishmentof an additional chain of custody and control points (Technique 3 in Section 2.2.6.3).
It is important that retailers keep track of the evolution of existing standards, and theintroduction of new ones. One important new standard close to completion is the Aquaculture
Stewardship Council standard(http://www.ascworldwide.org/index.cfm?act=tekst.item&iid=4&lng=1).

Case study 2.5. Roundtable for Sustainable Palm Oil certification for more sustainable palm oil
Standard initiation
The RSPO initiative was established in 2002 by the WWF and industry representatives aimed atdeveloping sustainably-cultivated palm oil that does not involve the destruction of rainforests or wetland.
The initiative now has more than 340 members, including oil palm growers, product manufacturers,
retailers, banks, investors and non-governmental organisations (NGOs). RSPO headquarters are located in
Zürich, and the secretariat is based in Kuala Lumpur.
Palm oil certification
To become RSPO certified, palm oil growers must comply with specific criteria, including the avoidanceof recent encroachment into natural habitats and implementation of good environmental management
practices (RSPO, 2007). However, owing to the difficulties of physically separating RSPO-certified palm
oil throughout the supply chain, a trading scheme for sustainable palm oil was established so thatpurchasers can stimulate sustainable production through the purchase of credits (RSPO, 2010). This isbased on certification according to four models:
1. identity preserved: RSPO-certified palm oil or derivative products are traceable to a specific mill
supplied by certified plantations;
2. segregation: RSPO-certified palm oil or derivative products are traceable to a number of certified
plantations and mills;
3. mass balance: matches the quantity of sustainable palm oil demand from end-users with RSPOcertified palm oil production within specific (but not RSPO-exclusive) supply chains;
4. book and claim: provides tradable certificates (e.g. 'Green palm' certificates) for RSPO-certified palm
oil to the supply base who can then sell these certificates to end-users who would like specific volumes ofsustainable palm oil.
These models offer progressively lower levels of traceability and 'level of claim' for the end-users (from 1
through to 4), and also progressively lower green procurement costs.
Retail contribution to standard development
Migros initiated the process of devising a palm oil standard through collaboration with WWF. A numberof retailers were involved with establishing the RSPO standard in 2002: Aarhus United UK Ltd, Migros,
Sainsbury's and Unilever. Currently, 23 retailers are active members of the RSPO, and many retailers buy
RSPO-certified palm-oil (Table 2.47).

Applicability
Any retailers can implement choice editing and green procurement, although only larger
retailers can influence suppliers to become certified according to third party standards(including by providing assistance: e.g. Section 2.2.6.5).
This technique is applicable to all product groups for which appropriate and widely applicablethird party environmental standards are available. Third party standards may not cover all
relevant environmental aspects and processes along the supply chain, and widely applicable
improved level standards are not available for all product groups (see Table 2.34 in Section
2.2.5.1). These product groups may be targeted for supply chain improvement throughintervention by front-runner retailers, as described in subsequent techniques.

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Economics
No specific economic data were provided. Compliance and certification costs are directly borneby suppliers, but may be shared between suppliers and retailers. Leading retailers provide
financial assistance to suppliers to meet certification costs (e.g. Coop Switzerland for
GlobalGAP compliance).
For suppliers, compliance costs should be balanced against maximising the market available for
their products, and any price premiums they may consequently demand.
For retailers, costs should be balanced against reputational and medium-term business supply
chain risks associated with unsustainable practices, and against price and marketing premiums
they may consequently realise.
Driving forces for implementation
Retail demand, and the realisation of product price premiums, motivates suppliers to invest incertification according to third party standards. For retailers, all of the driving forces listed in
Section 0 are relevant, but the following are particularly important for implementing widespreadcompliance with independent minimum standards:
•
•
•
•
•
•

environmental awareness and responsibility
consumer demands
developing potentially more profitable value-added product ranges
enhancing image and reputation
reducing the reputational risk from 'product scandals'
future-proofing supply chains.

Reference retailers
See Table 2.47. Overall front-runner retailers include Coop Switzerland, Migros, M&S and
Sainsbury's.
Reference literature•
AssuredFoodStandards
homepage,
http://www.redtractor.org.uk/site/REDT/Templates/GeneralWho.aspx?pageid=14&cc=G
B, 2010.
•
Axfood, Axfood Sustainability Report 2009, http://www.axfood.se/en/CSR/Sustainabilityreport/, 2010.
•
BCI, Better Cotton Initiative Production Principles and Criteria 2.0,
http://www.bettercotton.org/, 2010.
•
4C Association, The 4C Code of Conduct version approved in May 2009, including
generic indicators approved in February 2010, http://www.4c-coffeeassociation.org/en/,
2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
Fairtrade, Generic Fairtrade Standards for Small Producers' Organizations. Version:
15.08.2009, http://www.fairtrade.net/, 2009.
•
FSC, FSC Principles and criteria for forest stewardship FSC-STD-01-001 (version 4-0),
http://www.fsc.org/1093.html, 2010.
•
GlobalGAP, Control Points and Compliance Criteria: Integrated Farm Assurance
Introduction. English Versions V.3.0-3_Apr09 Valid from 29 April 2009. GlobalGAP,
2009.
•
Greenpeace,
Internationalseafood
red
list',
http://www.greenpeace.org/international/seafood/red-list-of-species, 2010.
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Hofer, 'How to reduce the environmental footprints of consumer goods: LCA Studies on
fruit and vegetables production'. 37th LCA discussion Forum, Lausanne, Switzerland,
19.03.2009.
Horne, R., 'Limits to labels: the role of eco-labels in the assessment of productsustainability and routes to sustainable consumption'. International Journal of Consumer
Studies, 33 2009, pp. 175-182.
IBM, 'Are consumers really green? Consumer response to carbon labelling', IBM Energy& Environment presentation, IBM, 2008.
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
Kingfisher, personal communication by email March 2011.
M&S, How we do business report 2010. Doing the right thing,
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010.
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
MSC, MSC Fishery Standard. Principles and Criteria for Sustainable Fishing. Version
1.1 (1st May, 2010), http://www.msc.org/, 2010.
Oeko-Tex, Oeko-Tex Standard 1000 Edition 02/2010, http://www.oekotex.com/OekoTex100_PUBLIC/content5.asp?area=hauptmenue&site=gruendefuereinfue
hrung&cls=02, 2010.
Otto
Group,
Otto
Group
Sustainability
Report2009.
http://www.ottogroup.com/sustainabilityreport.html?&L=0, 2010.
PEFC Council, PEFC ST 1003:2010. PEFC International Standard Requirements forcertification schemes, http://www.pefc.org/, 2010.
Rewe,
Rewe
We
take
ActionReport2009,
http://rewe-groupgeschaeftsbericht.de/2009/en/dl/REWE_Group_report_2009_eng.pdf, 2010.
RSPO, RSPO Principles and Criteria for Sustainable Palm Oil Production Including
Indicators and Guidance. October 2007, http://www.rspo.org/, 2007.
RSPO, RSPO Supply Chain Certification Systems November 2009 (Approved by RSPO
Executive Board 5 November 2009), http://www.rspo.org/, 2009.
RTRS, RTRS Standard for Responsible Soy Production Version 1.0 (10th June, 2010),
http://www.responsiblesoy.org/, 2010.
Sainsbury's, 2010. Corporate Responsibility Report, 2010. http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf Accessed October, 2010.
SAN. SAN Sustainable Agriculture Standard July 2010, http://www.rainforestalliance.org/agriculture/standards/farms, 2010.
Suissegarantie, http://www.suissegarantie.ch/de.html, 2010.
Tesco, Tesco PLC Corporate Responsibility Report 2010. http://cr2010.tescoplc.com/,
2010.
UTZ, UTZ Certified Good Inside Code of Conduct For Coffee. Version 1.1 - January
2010, http://www.utzcertified.org/, 2010.
Waitrose, How we stack up. Corporate Social Responsibility Report 2009,http://www.waitrose.com/ourcompany/CSR.aspx, 2010.

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2.2.6.5

Enforce environmental requirements for suppliers of priority
product groups

Description
When improving the environmental performance of priority product groups identified following
product supply chain environmental assessment (Section 2.2.6.2), it is preferable that retailers
use certification according to widely recognised third party standards (Technique 4 in Section
2.2.6.4). However, as indicated in Table 2.34 in Section 2.2.5.1, some core product groups are
not well represented by third party standards, particularly standards associated with an improved
level of environmental performance as classified in Section 2.2.5.2. Where it is not possible touse third party standards to drive improvement of priority product groups, retailers can drive
product improvement by establishing and enforcing their own environmental requirements
across private label suppliers. This technique refers to the widespread application ofenvironmental requirements across the suppliers of priority product groups.
In some cases, product specifications enforced through the quality assurance process may
indicate that suppliers have complied with basic environmental management requirements.
Enforcing restricted chemical lists through product testing for residues and supplier auditing is
an integral part of product quality assurance that can reduce the risk of toxic spills and diffuse
ecotoxicity impacts (and worker poisoning) during the production process. Retailers may
implement such product specifications simply to ensure compliance with legislation in all
countries where they operate (e.g. H&M's restricted chemical list: Appendix A2). Consumer
concern over exposure to substances potentially harmful to health(19) is another strong driving
force for implementing such requirements. Whilst it is basic good practice to integrate chemical
restrictions into quality assurance systems, best practice in this technique goes considerably
beyond such requirements to include auditing of suppliers against specific criteria based onwell-defined control points (Technique 3 in Section 2.2.6.3). Best practice includes:•••

universal application across all suppliers of the target product group(s)establishment of specific and enforceable environmental requirements
enforcement of supplier compliance using a systematic auditing and sanctions.

To be enforceable, retailer environmental requirements must be written into supplier contracts
or binding codes of conduct. As referred to in Section 2.2.6.3, H&M and IKEA enforce specificbasic environmental requirements in their respective codes of conduct (IKEA, 2008, H&M,
2010). Both of these retailers extend environmental requirements beyond first tier suppliers, andtarget relevant suppliers with specific additional requirements to address environmental hotspots(see Section 2.2.6.3). In particular, H&M requires all suppliers with wet processes (textile
finishers) to comply with the BSR Water Quality Guidelines (Case study 2.4), whilst IKEA
requires all wood suppliers without FSC certification to comply with their Forestry Standard(Case study 2.6). In the UK, B&Q are publishing a series of procurement standards for various
product groups (B&Q, 2010). The Paint Buying Standard (B&Q, 2010a) requires transparent
accounting and labelling of paint VOC content, but also precludes procurement of productswith misleading environmental labelling such as 'environmentally friendly', 'environmentally
safe' and 'ozone friendly'.
Front-runner retailers use supplier requirements to complement and assist widespread
certification according to third party standards. IKEA have a long term target to source all thewood used in their products from FSC-certified suppliers (Table 2.47 in Section 2.2.6.4).
However, most IKEA suppliers are from regions where low-cost forestry operations areassociated with poor environmental management and where few suppliers are FSC certified.
IKEA argue that implementing their Forestry Standard (Case study 2.6) in these supply regions(19) E.g. pentachlorophenol in leather goods, carcinogenic aromatic amines in textiles, tributyl tin compounds in textiles, assorted
pesticides in food products.

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Chapter 2

accelerates the diffusion of more sustainable practices, and can encourage certificationaccording to third party standards. Similarly, many retailers are aiming for 100 % MSC
certification of wild catch fish sales, but this will take a number of years to achieve based on
current certification rates. In the meantime, retailers can work with seafood experts to select fishfrom more sustainable sources. Both Greenpeace and WWF provide lists of endangered fish
species from particular stocks that should be avoided (avoidance represents a basic standard),
and sustainable alternatives (widespread stocking of which represents an improved standard).
The process of shifting procurement towards sustainable supplies that are likely to become MSC
certified also improves the security and long-term trading potential of fish supply chains.
Achieved environmental benefits
The environmental benefits associated with retailer environmental requirements for suppliers
can be similar to environmental benefits associated with third party certification (Section
2.2.6.4), but depend on both the specific requirements, and the rigour of enforcement. Typically,retailer requirements are less specific and comprehensive than the requirements of third party
standards, and compliance verification is less transparent. Consequently, retailer requirements
are primarily classified as equivalent to basic or improved third party standards outlined in
Section 2.2.5.2. Table 2.49 summarises the most widely applied environmental requirements
relevant to this technique, indicates their equivalence with third party standards, and list theassociated environmental benefits.

Table 2.49:

A summary of the main requirements enforced by retailers across all suppliers ofspecific priority product groups, and associated environmental benefits

Requirement

Features

Environmental
benefits

AFA:
AirFreight
Avoidance

Front-runner retailers are minimising transport of seasonal
perishable goods by airfreight through regional (*) sourcing.
In some cases, air freight may be preferred over local
production in heated greenhouses, particularly where
employment is created in developing countries. Front-runnerretailers offset 'residual' air freight CO2 emissions (Coop
Switzerland, 2010). Equivalent to basic third party standard.

Avoids high specificemissions of GHG, NOxand hydrocarbons at
high-altitudes
where
they are most damaging

BS: BuyingStandards

B&Q has published a list of buying standards for productgroups including chemicals, energy-using products, invasiveplant species, lighting, paint, peat, timber, water-using
products (B&Q, 2010).

CR: Chemical
Restrictions

CoC: Codesof Conduct

DFA:
Deforestation
Avoidance

Many retailers have lists of restricted chemicals that
suppliers must not use, or can use only with justification andpermission. Restricted chemical criteria usually apply to fruitand vegetables (e.g. Rewe, 2010), and textiles (e.g. H&M,
2010), and are enforced through systematic or randomchemical analyses Equivalent to basic third party standard.
Many retailers have some form of code of conduct that
suppliers are required to sign. Front-runner retailers ensurecompliance with specific criteria through extensive auditing
combined with compliance training and enforcement
mechanisms such as contract suspension or termination (e.g.
H&M, 2010; IKEA, 2008). Equivalent to basic third party
standard.
M&S has a target to ensure that no agricultural productsuppliers use land that was recently cleared of forest to makeway for agriculture (M&S, 2010).

Best Environmental Management Practice in the Retail Trade Sector

Avoidsparticularly
harmful substances andobvious environmental
hotspots,
improves
resource efficiency
Avoids use of, andcontaminationfrom,particularly
harmfulsubstances. Can reduce
local air, water and soil
pollution
Avoids worst practices,
especially with respect
to hazardous chemical
management
anddisposal. Avoids acutelocal air, water and soil
pollution.
Avoids deforestation andassociatedecosystem
damage,biodiversity
loss and GHG emissions

194Chapter 2
Requirement

Features

Environmental
benefits

RSP:
RegionallySourcedProducts

Many retailers pursue a policy of regional or local sourcing
for fresh products such as milk, fruit and vegetables when inseason, and meat. Sourcing from within Europe ensures that
suppliers are subject to basic regulatory environmental
requirements. Sourcing products from nearby suppliers can
reduce transport emissions, and improve traceability (e.g.
Sainsbury's, 2010). Equivalent to basic third party standard.

Avoidsworst
environmental practices
in less regulated regions

SFS:
Sustainable
Fish Sourcing

A number of retailers use information from independent
experts, such as Greenpeace and MSC, to identify
sustainable (but not necessarily certified) fish sources (e.g.
Waitrose, 2009). Equivalent to improved third party
standard.

Preservationofendangered fish species
Maintenance of marine
fishery
ecosystem
integrity
andbiodiversity

WQG:
Compliancewith
BSR
Water Quality
Standard

Some retailers require textile suppliers with wet processes tocomply with BSR Water Quality Guidelines (BSR, 2010),
comprising a set of waste water chemical parameters (seeAppendix A3). Equivalent to basic third party standard.

Reduced water pollution(ecotoxicity
andeutrophication)

IFS:
IKEA
ForestryStandard

The IKEA Forestry Standard includes requirements toimplement wood traceability, to avoid illegal deforestation,and to protect virgin and high nature value forests. 10 % ofwood was audited in 2009 (IKEA, 2010). Equivalent toimproved third party standard.

Maintenance of forest
ecosystem integrity andbiodiversity
Avoidance of net forestloss(*) In this instance, 'regional' refers to a geographic area within range for rail, road or water-based transport (rather
than necessitating air transport). Many retailers are pursuing this by increasing sourcing from within the countriesof sale.

Environmental indicators
Relevant environmental indicators to assess supplier environmental performance are referred toin Table 2.46 of Section 2.2.6.4 and Case study 2.7.
The most relevant indicators of retailer performance with respect to implementing retailerdefined minimum environmental requirements for products and suppliers are:••the percentage of private label products sold that comply with particular retailer-definedenvironmental requirements, expressed in relation to total sales value within the relevant
product group;
the environmental rigour and completeness of the particular retailer-defined requirements,
as broadly indicated by categorization according to basic, improved or exemplary.

Where a portion of sales within a product group is certified by a third party to an equivalent or
higher standard than the requirements being reported, this portion is included as compliant withthe requirements reported in this technique, but will also be reported separately in Section
2.2.6.4 or Section 2.2.6.8.
Table 2.50 provides an overview of the performance of front-runner retailers with respect toimplementing retailer-defined requirements. The most common requirements are basic code of
conduct requirements and chemical restrictions – targeted at fresh fruit and vegetables andtextile products in particular. Table 2.50 explicitly refers to codes of conduct only where they
are demonstrably based on specific and enforced criteria of relevance to the product group.
Benchmarks of excellence proposed in Table 2.50 are mainly based on targets, and retailer
compliance should be interpreted for each product group as per Technique 4 (Section 2.2.6.4):•

the retailer demonstrates on-track progress within the context of a detailed plan to achieve
the proposed benchmark.

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Although this technique targets widespread implementation of product requirements, it may beappropriate to express performance for more disaggregated product groups than the summary
product groups presented in Table 2.50. The following indicator may be used to represent theextent of influence of retailer requirements across entire product assortments:•

the number of product groups where more than half of sales comply with retailer-definedenvironmental requirements.

Cross-media effects
Retailer requirements should focus on reducing the most important environmental impacts forparticular product groups, without shifting impacts to other areas. There may be trade-offs
between different aspects of sustainability – for example between environmental and animalwelfare standards with respect to free-range farming, and between environmental and social
standards with respect to sourcing perishable products from geographically distant developing
countries.

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Table 2.50:

Performance of leading retailers and proposed benchmarks of excellence, with respect to application of retailer-defined standards for priority productgroups (expressed as percentage of product group certified)

Product group

NON FOOD

FOOD PRODUCTS

Dairy
Fruit and veg
Grain productsStandard
classification
Basic

Best performers
2010
CR
SS
76 % RSP ; 100 % RSP (milk),CS,ICA,MG,RW, UKC,WE

Basic

100 % CR

improved

12 % CQLCR
76 % RSPCR

Basic

CR

Target (year)
100 % DFA (2015)M&S
cs;; 100 % AFA 76 % RSP

Improved

30 % CQLCR

Red meatBasic

30 % CQLCR; 76 % LPSCR…

Seafood

Improved

12 % CQLCR; 80 % SFS SS 100 % SFSICA,MG,M&S,WE

Textiles
Wood

IA

Basic

97 % CoC

Basic

57 % CoCH&M; 100 % CRH&M

Improved

100 % WQGH&M
97 % IFSIA

Improved

100 % basic

SS

76 % RSP ; 100 % RSP

Household

100 % basic
100 % basic

100 % RSPCR

Basic

Poultry, eggs

CR

Proposed benchmark

100 % basic
100 % DFA (2015)M&S

100 % basic
100 % improved

B&Q

B&Q-BS 100 %100 % improved
100 % improved
100 % exemplary

NB: Retailer defined standard abbreviations as described in Table 2.49.
CR = Carrefour, CS = Coop Switzerland, IA = IKEA, MG = Migros, RW = REWE, SS = Sainsburys, UKC = UK Coop, WE = Waitrose

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Operational data
Examples from front-runner retailers in this technique offer useful guidance on operational
aspects of implementation. IKEA's work to ensure that wood complies with their Forestry
Standard is described in Case study 2.6. Waitrose provides an example of best practice in
actively ensuring that all the fish they sell are sustainably sourced (see Table 2.50), based oncollaboration with an NGOs to obtain best available data (Waitrose, 2009, Waitrose personalcommunication). Waitrose require all fish sold to comply with the following criteria:••••

full traceability to the fisherynon-threatened or endangered species
caught from a well managed fishery with scientifically-based quotas
caught using responsible fishing methods.

Choice editing by Waitrose ensures that consumers are not offered threatened species, or fishfrom poorly managed or unsustainable fisheries. For example, North Sea cod was replaced with
Icelandic Cod. Pressure on the most popular fish species is alleviated through the stocking ofalternative species such as pollock, coley and tilapia. Fisheries supplying Waitrose are required
to demonstrate sustainable management (e.g. stock regeneration through zone closure whennecessary) based on scientific stock assessment and appropriate quotas. Waitrose sourcing
criteria require fish to be caught according to the least environmentally-damaging methods foreach species (considering sea bed damage, by-catch, fuel use, etc.).
Best practice in supplier auditing is for retailers to systematically audit suppliers for compliancewith environmental requirements, and verify the performance of their auditing system using
third party verification audits (Case study 2.6). For grocery retailers with a large number of
products and suppliers, systematic auditing of supply chains to ensure compliance withenvironmental requirements, as performed by specialist retailers such as H&M and IKEA, may
not be possible. In these cases, a risk-based auditing strategy should be employed, targeting
higher risk suppliers for more frequent inspections. Sainsbury's conduct risk assessments on
their suppliers, and allow lower risk suppliers to self assess against their code of conduct whilst
higher risk suppliers are required to have an independent third party audit (Sainsbury's, 2010).
A number of retailers define environmental requirements only for limited product ranges. These
are not referred to in Table 2.50 as they do not target entire product groups. An exception is
Carrefour's Quality Line, which comprises 464 products sold in 15 countries (Carrefour, 2010),
because this range represents a high proportion of sales in some product groups: accounting for
30 % of meat sales, 12 % of fish sales, 6 % fruit and vegetable sales (Table 2.50) (Carrefour,
personal communication). Risk based audits are used to ensure compliance with goodenvironmental management.

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Case study 2.6: IKEA supply chain control through IWAY wood sourcing standards
IWAY
IKEA defines minimum ethical and sustainability standards for suppliers in their IWAY code of conduct(IKEA, 2008). Suppliers are responsible for ensuring that the many thousands of IKEA sub-suppliers also
comply with this code of conduct. In 2009, IKEA auditors performed 1050 supplier audits, of which 523
were unannounced, to check on IWAY compliance (IKEA, 2010). During the same year, 43 audits were
performed by the IKEA Compliance and Monitoring Group, to check that procedures and standards areapplied consistently across regions, and an additional 45 verification audits were performed byindependent third parties (e.g. KPMG, PWC). Audits are focused on high-risk regions: on average,
Chinese suppliers are audited at least once per year, compared with once every two years for all suppliers.
Compliance statistics for different regions and criteria are published in annual sustainability reports(Table 1).
Table 2.51:
IWAY criteria

Percentage of suppliers from different regions who fulfil various IWAY criteria
Europe(China 7.0 %)52.0 %
Environment
98.1 %
Chemicals
98.5 %
Waste
98.6 %
Source: IKEA, 2010

Americas
Asia
Overall 79.0 % 83.0 % 22.0 %96.2 %
98.9 %
98.3 %

95.1 %
96.4 %
97.5 %

Total

97.1 %
97.8 %
98.2 %

Wood sourcing
In addition to IWAY, suppliers must demonstrate compliance with IKEA's wood sourcing standards
contained in the IKEA Forestry Standard (IKEA, 2010) by providing relevant documentation on wood
origin every four months to IKEA's Forest Tracing System. IKEA standards require that wood is: (i) not
illegally harvested; (ii) not from forestry operations engaged in forest-related social conflicts; (iii) notharvested from uncertified Intact Natural Forests (INF) or High Conservation Value Forests (HCVF); (iv)
not harvested from natural forests in the (sub) tropical regions being converted to plantations or nonforest use; (v) not from genetically-modified tree plantations. In 2009, 9 % of the 5 686 000 m3 woodused in IKEA products was audited, and 92 % of audited supply complied with these minimum
requirements.
Auditing of preferred, FSC-compliant suppliers (accounting for 22 % of wood used) is left to third
parties. Most of IKEA's wood is sourced in China and Russia, where unsustainable forestry practices are
relatively common, and where supply chains can be obscure. IKEA argues that encouraging transparent
and sustainable supply chain practice in these low-cost source countries can achieve widespreadsustainability improvements in forestry. IKEA employs nine forestry specialists in these countries, who
assist trade service audits by tracing supplier wood back to specific forests, and also disseminate
knowledge across the forestry industry. Risk maps developed by Global Forest Watch and the World
Resources Institute are used, along with supplier responses to wood-origin questionnaires, to target
auditing in high-risk areas. IKEA is working with WWF and others to address illegal logging, toencourage sustainable forestry practices, and to promote FSC-certification in Russia and China (target for
1 million ha FSC forest in China). Currently, all wood used by Swedwood (IKEA's industrial division) is
FSC certified, and IKEA's long-term aim is to ensure that all the wood it uses is from forests certified as
responsibly managed.

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Applicability
Any large retailer with significant sales of private label products and leverage over suppliers canstipulate minimum environmental standards for production. The most easily verifiable standards
relate to restricted chemical use and basic code of conduct requirements. Best practice for large
retailers extends considerably beyond these basic standards.
Retailer requirements should be applied to product groups for which appropriate third party
environmental standards are not available.
Economics
No specific economic data were provided. Compliance costs are directly borne by suppliers,
whilst auditing costs are borne by retailers. For suppliers, compliance costs should be balanced
against improved security of demand and enhanced marketability for their products, and any
price premiums they may consequently realise.
For retailers, costs should be balanced against reduced reputational and medium-term businesssupply chain risks associated with unsustainable practices, and against price and marketing
premiums they may consequently realise.
Driving forces for implementation
Maintaining business contracts with large retailers, and in some cases product price premiums
offered by retailers, motivates suppliers to comply with retailer defined standards. For retailers,
all of the driving forces listed in Section 0 are relevant, but the following are particularly
important for implementing widespread compliance with independent minimum standards:
•
•
•
•
•
•

environmental awareness and responsibility
consumer demands
developing potentially more profitable value-added product ranges
enhancing image and reputation
reducing the reputational risk from 'product scandals'
future-proofing supply chains.

Enforcement of environmental requirements enables retailers to make environmental claims fortheir products that can be very useful for marketing. For example, implementation of their
Forestry Standard across the 78 % of wood supply that is not yet FSC certified enables IKEA toclaim that almost all of the wood used in their products is from sustainable sources (IKEA,
2010).
Reference retailers
H&M, IKEA, M&S, Sainsbury's.
Reference literature•
BCI, Better Cotton Initiative Production Principles and Criteria 2.0,
http://www.bettercotton.org/, 2010.
•
B&Q,
BuyingStandards
homepage,
http://www.diy.com/diy/jsp/corporate/content/environment_ethics/environment/buying_standards.jsp, 2010.
•
BSR.
Sustainable
Water
Group
Water
Quality
Guideline,
http://www.bsr.org/reports/awqwg/BSR_AWQWG_Guidelines-Testing-Standards.pdf,
2010.
•
Carrefour. Sustainable development at Carrefour. Expert Report 2009, Carrefour, 2010.
•
Carrefour, personal communication, email correspondence with CSR department
November 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
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Chapter 2

•
•
•
•
•
•
•
•
•
•
•
•

H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
H&M personal communication, email correspondence with CSR department, July 2010.
IKEA. IKEA IWAY Standard. Minimum Requirements for Environment and Social &Working Conditions when Purchasing Products, Materials and Services. Edition 4, 2008.
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
M&S, How we do business report 2010. Doing the right thing.
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en, 2010.
Otto
Group,
Otto
Group
Sustainability
Report2009,
http://www.ottogroup.com/sustainabilityreport.html?&L=0, 2010.
Rewe,
Rewe
We
take
ActionReport2009,
http://rewe-groupgeschaeftsbericht.de/2009/en/dl/REWE_Group_report_2009_eng.pdf, 2010.
Sainsbury's,
Corporate
Responsibility
Report,2010.
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010.
Tesco, Tesco PLC Corporate Responsibility Report 2010. http://cr2010.tescoplc.com/,
2010.
Waitrose, How we stack up. Corporate Social Responsibility Report 2009,http://www.waitrose.com/ourcompany/CSR.aspx, 2010.
Waitrose, personal communication, email with CSR department August 2010.

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2.2.6.6

Drive supplier performance improvement through benchmarking
and best practice dissemination

Description
For some priority product groups where appropriate third party environmental standards are notavailable or widely applicable, it may not be possible to effectively target environmental
hotspots in the supply chain using environmental requirements contained in contracts and codesof conduct with first tier suppliers as described in Section 2.2.6.5. This is most likely to be thecase for product supply chains based on a large number of small producers, such as those fordairy and cotton products. Proactive retailers are beginning to collaborate with (indirect)
suppliers in order to drive continuous improvement, where this has been identified as aneffective method to improve environmental performance for priority product groups (Section
2.1.6.2 and Section 2.2.6.3). This technique describes such collaboration, which is usually basedon performance benchmarking and the dissemination of better management practices (BMPs).
The BMP dissemination element of this technique is also important where retailers are assisting
suppliers to comply with environmental requirements contained in codes of conduct or third
party standards.
Introducing constructive intervention into competitive business relationships with suppliers candrive continuous improvement in supply chain sustainability, but may require changes toprocurement policy for some retailers. Whilst competition across suppliers provides a strong
incentive for efficiency, establishing long-term business relationships with suppliers offers
suppliers the necessary motivation and stability to engage with long-term environmental
improvement projects, in particular to make investments that would be seen as too risky in theabsence of retailer commitment. In addition, collaboration between retailers and suppliers
enables the implementation of strategic efficiencies throughout supply chains, and can provide
insurance against product supply fluctuations and price volatility. Evidence of extremely wide
variations in ecoefficiency across individual suppliers (e.g. a four-fold difference in the carbon
intensity of milk production amongst Sainsbury's milk suppliers: Case study 2.8) highlights theenvironmental improvement potential that can be achieved through performance monitoring and
BMP dissemination – often associated with economic efficiency benefits.
There are two fundamental elements of successful retailer cooperation with suppliers to drive
product supply chain improvement:••

quantitative benchmarking of supplier environmental performancedissemination of BMP.

Benchmarking requires the collation of relevant environmental performance data fromsuppliers. This represents a considerable challenge as suppliers must be persuaded to monitor
and report on relevant environmental performance parameters. A number of retailers are
beginning to collate supplier environmental performance information with the intention tobenchmark performance (Carrefour, personal communication; Colruyt, personalcommunication; H&M, 2010; M&S personal communication; Sainsbury's, 2010).
Another common focus of supply chain improvement is the provision of necessary tools,
training and advice, especially to small scale farmers where productivity can be improved, useof water and chemical inputs reduced, and soil erosion minimised through the implementationof BMPs. The BCI provides a useful reference template for BMP dissemination (Case study
2.7). In some cases, retailers are also intervening in the supply chain to achieve widespread
supplier certification according to third party standards (e.g. Case study 2.11 in Section 2.2.6.8).
According to the hierarchy of supplier improvement outlined in Section 2.2.6, providing a basis
for widespread third party certification is an important secondary objective for this technique.
Many large retailers are involved with projects to improve supplier performance in pilot
projects. Depending on the specific objectives and degree of retailer involvement, such projects
may constitute best practice in terms of research and development (Section 2.2.6.2). BestBest Environmental Management Practice in the Retail Trade Sector

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Chapter 2practice for this technique requires extensive improvement programmes aimed at the majority ofsuppliers for a particular priority product group. Currently, there are few well documented
examples of this technique. Aside from the multi-stakeholder BCI, the most extensive current
example of technique implementation appears to be Sainsbury's Dairy Development Group(SDDG) programme, described in Case study 2.8 (the original objective of this programme wasto improve agronomic efficiency, but it has become an important driver of environmental
improvement through a focus on ecoefficiency).
H&M has begun benchmarking supplier carbon and water footprints, has introduced aManagement System Scorecard that aims to encourage supplier development of management
systems to drive continuous improvement, and encourages voluntary environmental
improvement deep in the supply chain (for tertiary suppliers) with their Cleaner Production
Programme (Case study 2.9). In addition, Coop Switzerland and Rewe are working with
RemeiAG to improve growing conditions for 10 300 organic cotton farmers and their families
in India and Tanzania (Coop Switzerland, 2010; Rewe, 2010).
Achieved environmental benefit
Sainsbury's reports that GHG emissions from dairy farmers participating in their DDG havedeclined at a rate of 5000 t C per year up to 2009 (Sainsbury's, personal communication).
Farmers participating in the BCI have achieved a substantial reduction in pesticide, water andfertiliser inputs per unit output (Case study 2.7). Specifically for Indian farmers participating in
BCI trials, pesticide use was reduced by 81 %, water use by 49 % and fertiliser use by 18 %, on
average. Table 2.52 provides an overview of the main features and associated environmental
benefits of major widespread supplier improvement programmes implemented by retailers.

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Table 2.52:

Main continuous improvement programmes implemented by retailers

Programme

BCI:
Better
Cotton Initiative

SAP:
M&S
Sustainable
Agriculture
Programme

SDG:
Sainsbury's
Development
GroupsTPI:
H&M
Textile Processor
Improvement

Features

Whilst minimum production criteria necessary tosell 'better cotton' may be regarded as a third party
standard (Section 2.2.6.4), the main goal of the
BCI is to drive widespread continuous
improvement across cotton farmers (Case study
2.7). It is equivalent to improved third party
standards
M&S has trialled the use of environmental
indicators with selected supplier farmers, andplans to roll out these indicators as part of abenchmarking scheme (farmers rated bronze,silver and gold) to be fully operational by 2015.
Drives continuous performance improvement, andis equivalent to improved third party standards
Sainsbury's have spent three years working withindependent consultants and dairy farmers tobenchmark and improve the efficiency of dairy
production (Case study 2.8). This approach has
been rolled out to livestock farmers, and is plannedfor cereal farmers (Table 2.50). Drives continuous
performance improvement, and is equivalent toimproved third party standards
H&M is implementing a number of initiatives tobenchmark the environmental performance of
textile processors within their supply chain. These
include benchmarking carbon and water footprints,
the implementation of a management systemscorecard, and the Cleaner Production Programme(H&M, 2010). Here, these are collectively referred
to as the TPI. The TPI aims to drive continuous
improvement, and is equivalent to improved third
party standards

Environmental
benefits

Reduced resource use
Reduced soil erosion
Reduced air and waterpollution

Reduced resource use
Reduced soil erosion
Reduced air and waterpollution

Reduced resource use
Reduced soil erosion
Reduced air and waterpollution

Reduced resource use
Reduced air and waterpollution

Appropriate environmental indicator
Relevant environmental indicators to assess supplier environmental performance are referred toin Section 2.2.6.2, Case study 2.6, Case study 2.7 and Case study 2.8. The most relevant
indicator to reflect retailer performance for this technique is:•the percentage of private label products sold that originate from suppliers participating inretail programmes to improve environmental performance, expressed in relation to total
sales value within the relevant product group

Where a portion of sales within a product group is certified by a third party to an equivalent or
higher standard than the improvement programme being reported, this portion is included ascompliant with the improvement programme, but will also be reported separately in Section
2.2.6.4 or Section 2.2.6.8.
Table 2.53 provides an overview of the performance of front-runner retailers with respect to theimplementation of supply chain improvement through collaboration with suppliers. Sainsbury’s
is a front-runner retailer for this technique, having implemented their SDDG programme acrossdairy suppliers. Sainsbury's and M&S have targets to roll out farmer improvement programmes
to all suppliers of agricultural products over the next few years (Table 2.53). Coop Switzerland
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and C&A work with cotton farmers to encourage organic production through the multistakeholder Textile Exchange (formerly Organic Exchange) programme. Organic textile sales
for these retailers are included in Table 2.53 as an example of the positive influence of bestpractice dissemination, but as organic certification is a front-runner ecological standard, theseexamples represent best practice in Section 2.2.6.8.
Implementing widespread supplier improvement programmes takes a number of years. As withTechniques 4 and 5 (Section 2.2.6.4 and Section 2.2.6.5), retailer performance in relation tobenchmarks of excellence should be interpreted in terms of demonstrable progress towards
targets:•

the retailer demonstrates on-track progress within the context of a detailed plan to achieve
the proposed benchmark.

Although this technique targets widespread implementation of product requirements, it may beappropriate to express performance for more disaggregated product groups than the summary
product groups presented in Table 2.53. The following indicator may be used to represent theextent of improvement programme implementation across entire product assortments:
the number of product groups where more than half of sales are from suppliers participating inretail programmes to improve environmental performance.
The first 'better cotton' from BCI farmers became available in 2010. Consequently, few retailers
have quantitative data or targets for better cotton sales (Table 2.47 in Section 2.2.6.4). Allretailers involved in the BCI initiative may be regarded as reference retailers for this technique.

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Table 2.53:

Performance of leading retailers and proposed benchmarks of excellence, with respect to product groups improved through retailer collaboration with
suppliers (expressed as percentage of product group certified)

NON-FOOD FOOD

Product group
Dairy
Fruit & vegetables
Grain products
Poultry, eggs
Red meat
HouseholdTextilesWood

Standard
classification
Improved
Improved
Improved
Improved
Improved
Improved
Improved
Exemplary
Improved

Best performers
2010
100 % SDDGSS

Target (year)
100 % SAP (2015)M&S
M&S

100 % SAP (2015)
100 % SDGSS, 100 % SAP (2015)M&S
100 % SDGSS, 100 % SAP (2015)M&
100 % SAP (2015)M&S, 100 % SDGSS

C&A

TE 10 %CS

; TE 60 %TPI 100 %H&M
TE 100 %C&A

Proposed benchmark
100 % improved
100 % improved
100 % improved
100 % improved
100 % improved
100 % improved
50 % exemplary
100 % exemplary

NB: improvement programme abbreviations as per Table 2.52, TE = Textile Exchange (formerly known as Organic Exchange), SS = Sainsbury's.

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Cross-media effects
Ecoefficiency improvements promoted by supplier improvement programmes such as the BCI
are usually not associated with significant cross-media effects. However, there may be tradeoffs between some agricultural management practices with respect to different environmental
objectives. With respect to their SDDG programme, Sainsbury's claim that slurry spreading
restrictions in nitrate-vulnerable-zones, intended to reduce water pollution, conflict with thefrequent small slurry applications regarded as best practice to minimise GHG emissions(Sainsbury's, personal communication).
Operational data
Supplier performance should be compared using quantitative environmental performanceindicators where possible (Section 2.2.6.2), expressed per unit of output. H&M is measuring
carbon and water footprints expressed per kg of garment produced, but translates water footprint
data into environmental pressure according to local water scarcity for individual factories. The
BCI uses quantitative indicators of pesticide, water and fertiliser use (Case study 2.7), whilst
Sainsbury's SDDG programme uses a specifically developed GHG calculator, certified by the
UK Carbon Trust, to monitor GHG emissions of participating farms based on farm input data
(Case study 2.8).
Often it may difficult to obtain the level of input data necessary from suppliers to calculatequantitative environmental performance indicators, owing to both confidentiality concerns andmonitoring effort on the part of suppliers. These issues may be addressed through the hiring of
independent consultants to undertake data collation and benchmarking (see Case study 2.8).
Economic incentives may also be necessary to encourage widespread supplier participation in
the initial stages.
Environmental management or process-based indicators (e.g. type of feed fed to animals, typeof energy source, etc.) may also be used to estimate and compare the environmental
performance of suppliers. For example, the SDDG uses an environmental scorecard approach tocompare operational practices on participating farms. This is used to estimate GHG emissions,and provides a basis for recommending BMPs to farmers (Sainsbury's, personalcommunication).
A number of retailers are developing online self-reporting systems for suppliers, which may be
used to benchmark environmental performance. Questionnaires should be designed to extract
non-biased information, for example by formulating balanced questions that do not encourage aparticular answer, and should be verified by periodic auditing. Carrefour is encouraging
suppliers to report on their sustainability performance via an online self-assessment tool basedon 49 criteria rated basic to excellent (four levels). In 2009, over 1000 suppliers used the tool,
although information is not being used to define minimum standards (Carrefour, personalcommunication). In the UK, Tesco is working with the Carbon Trust to obtain supplier data inorder to calculate PCFs (Tesco, 2010), whilst in the US, Walmart and the Sustainability
Consortium (USSC, 2010) are working on the development of supplier data exchange systems.
Such data collation systems could provide an important basis for supplier improvement
programmes, and thus represent an important component of this technique (or similar
techniques developed by retailers in the future).

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Case study 2.7: The Better Cotton Initiative as an example of intervention to improve agricultural
supply chains
The cotton problem
Cotton is one of most widely grown and important crops in the world: almost 35 million ha are undercultivation (WWF, 2007). Ninety percent of cotton farmers are in developing countries and manage small
farm holdings (<2 hectares). Inefficient irrigation methods, poor cultivation practices, improper use ofpesticides and fertilisers exacerbate the impacts of this intensive crop, and threaten water quality, soil
fertility, human health and biodiversity. See Section 2.2.5.4.
BCI training
The BCI aims to make farming practices more sustainable, by improving: (i) environmental performance;(ii) socio-economic conditions; (iii) resilience to future resource scarcity and climate change. The BCI
works with farmer organisations and farmers directly to disseminate knowledge and guidance on Better
Management Practices (BMPs), including the implementation of FAO Integrated Pest Management
practices that minimise the need for pesticide inputs. Central to the BCI is the practical training provided
to farmers through Farmer Field Schools, administered by local facilitators who are trained by experts
under the BCI programme (Appendix A5). In addition, Resource Centres provide information, advice andequipment to farmers who could not otherwise afford it. A participatory approach to basic agronomic andecological education and training empowers farmers to organise themselves in order to continue
developing and sharing BMPs.
BCI requirements
Benchmarks and minimum production criteria have been established, and are included in separate
benchmarking guidelines for three categories of farmer (i) Family smallholdings; (ii) Smallholder
employers; (iii) Large farm employers. Within the BCI progress framework of Understand > Plan > Do >Learn > Improve, farmers must achieve the 'Do' benchmark for each minimum production criteria inorder to sell 'better cotton'. To continue selling better cotton, farmers must demonstrate continuous
improvement by completing a minimum number of additional benchmarks over the following three
growing seasons.
Quantitative monitoring
Farmer assessment within the BCI is based on quantitative indicators for economic, environmental andsocial performance. Key environmental indicators are:•••pesticide use and type (kg or l/ha per year and per pesticide)water use for irrigation (m3/season)
fertiliser use and type (kg/ha per year and per type).

These are combined with productivity indicators, including production area, production quantity, andproduction quality, to generate quantitative environmental performance indicators.
BCI achievements
A focus on productivity and fibre quality alongside environmental and social issues has increased grossmargins on farms participating in the pilot phase by 15–20 % on average (WWF, 2010). Better Cotton is
no more expensive than standard cotton.
On trial farms in India, three year trial data indicate that, on average, water use has been reduced by 49 %,pesticide use by 81 % and fertiliser use by 18 %. For trial farms in Pakistan, the equivalent reductions are:32 % for water use, 32 % for pesticide use, and 38 % for fertiliser use.
The initial start-up phase, running from 2009 to 2012, is implementing the Better Cotton System inBrazil, India, Pakistan, West and Central Africa. The BCI strategic plan also aims to extend the Better
Cotton System to China and Central Asia within this time.
Reference retailers
Listed retail members of the BCI are: Adidas, Asda, George, Hemtex, H&M, IKEA, KapAH, Levi
Strauss & Co., Lindex, M&S, Migros, Sainsbury's and Tesco.

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Case study 2.8: Best practice supply chain intervention and improvement demonstrated by
Sainsbury's Dairy Development Group
Identification of dairy as a priority product group
Sainsbury’s sells 470 million litres of milk per year, and milk is a component in over 2000 products (Sainsbury's,
personal communication). Milk cannot be readily substituted, and is preferably sourced from within the UK.
Successive years of poor returns have contributed to a reduction in the number of practising dairy farmers, from
28 000 in the year 2000 to 12 000 in 2010. Meanwhile, dairy production is a major contributor to environmental
impacts (section 2.2.5.3). Consequently, this supply chain was targeted by Sainsbury’s to pioneer intervention to
improve supply sustainability.
The Dairy Development Group
Sainsbury’s works directly with 334 dairy farmers in seven milk fields throughout the UK through the 'Sainsbury’s
Dairy Development Group' (SDDG) dedicated to this supply chain. Farmers are paid a premium above the market
price for milk for implementing good agricultural practice. Sainsbury's also invests in on-farm initiatives to improvetheir animal welfare and ecoefficiency through:•milk recording, 2 veterinary visits per year, one specialist veterinary visit every 18 months;•
information technology hardware, software and training;•carbon footprinting;•training and workshops on animal health and environmental management.
The SDDG scheme is primarily focused on 4 keys areas: (i) animal health and husbandry; (ii) environment andenergy; (iii) collaborative working; (iv) business improvement. All data are collated and managed by independent
consultants, with Sainsbury’s only seeing aggregated data. Farmers can benchmark their own data anonymously
against their peer group.
Environmental performance monitoring
With respect to the environment, all farms are carbon footprinted annually, according to two methods:(i) a practical, environmental scorecard approach in which physical behaviour (operational practices) on farms arerecorded; (ii) using a GHG calculator based on inputs and practices (developed specifically by the SDDG andcertified according to the PAS 2050 standard). All GHG emission data are compiled according to tier three GHG
protocol standards (i.e. accounting for indirect effects). Each farmer’s results are colour rated against the wider group.
Farmers are offered expert advice by consultants on how to reduce their environmental impact, alongside advice on
animal health and productivity. Collated data highlight how key parameters vary considerably across participating
farms, indicating high potential to improve average production efficiency and reduce associated environmental
impacts.
Environmental benefits

Table 2.54 demonstrates the four-fold difference in the carbon footprint of the best comparedwith the worst performing farms in 2009. Differences arise owing to the ratio of grazing tofodder feeding, the types and sources of fodder used, manure management, and animal
productivity (associated with health). There was a significant decrease in the carbon intensity ofmilk between 2008 and 2009, and GHG emissions from participating farms were reduced by5000 t C per year up to 2009. However, caution is required inferring long-term trends as there issignificant inter-annual variability associated with weather conditions. Meanwhile,
improvements in animal welfare and associated productivity achieved by the scheme have increased
the profitability of participating farmers by an estimated GBP 1.66 million, collectively.

Table 2.54:

The range in the carbon footprint of milk across supplier farms(kg CO2eq. /l milk)
Best performing farms
Worst performing farms

2008
0.84
2.56

2009
0.52
2.24

Source: (Sainsbury's, personal communication)

Key lessons for retailers
A key lesson from Sainsbury’s experience is that farmers are initially suspicious about retailer intervention, and it cantake considerable time (years) and effort to develop the constructive relationship necessary for relevant data sharing
and effective intervention. Sainsbury’s initially focused on priorities identified by farmers themselves, and did not set
immediate targets. Farmers are not requested to complete any bureaucracy themselves, and a high level of personal
contact is maintained (every farmer is visited by a Sainsbury’s representative at least once per year). The approachand data management model developed for this sector are easily adapted to other sectors, and are currently being
extended to Sainsbury's suppliers of meat (beef, sheep, pig, poultry farmers) and other foodstuffs (crop farmers).

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Case study 2.9: H&M's Cleaner Production as an example of best practice in improving theenvironmental performance of indirect suppliers
Introduction
H&M's Cleaner Production Programme has been in operation for four years, and provides a good
example of how retailer influence can be extended deep into the supply chain, beyond primary suppliers.
The objective of the programme is to encourage the mills with dyeing processes (textile finishers) that
supply the fabric to the factories that supply the garments to H&M to develop cleaner production
techniques. Whilst supplier factories are audited according to H&M's Code of Conduct, fabric mills aresecond-tier suppliers that do not have a direct business relationship with H&M. Therefore, a targetedvoluntary approach is employed. H&M inspectors select fabric mills for audit based on: (i) a significant
business relationship with H&M suppliers; (ii) apparent scope for improvement. Following audits,
inspectors propose appropriate measures for each mill to improve environmental efficiency.
Design and implementation
The Cleaner Production Programme focuses on 43 easy-to-implement environmental measures that
achieve rapid results, and that are also associated with cost savings. Therefore, whilst it is entirely
voluntary for mills to implement the proposed changes, the programme has been designed to maximise
the motivation of mills to do so. The programme has been implemented in China and Bangladesh. H&M
felt the need to strengthen the Cleaner Production Programme by engaging the dyeing mills (textile
finishers) in a capacity building project called the Mill Development Programme. The Mill Development
Programme was launched in China and Bangladesh in 2009, and is comprised of four main steps:
identifying fabric dyeing mills that supply major H&M garment suppliers;
raising awareness of H&M requirements across the fabric mills;
visiting mills to instigate self-assessment and identify issues for correction;
auditing.
Identifying best practice
Meanwhile, in Bangladesh, H&M is working with a number of partners on a long-term (six year) projectthat aims to develop and test water and energy saving methods, and to develop a best practice tool kit.
Best practice information is being collated through peer-to-peer group communication in combination
with consultant advice. Similarly, a set of dyeing mills have been chosen in China to do an intense
Cleaner Production Programme with the help of external consultants and NGOs. Both the projects in
Bangladesh and China were planned for launch in 2010.

Applicability
Any large retailer with significant sales of private label products and leverage over suppliers cancollaborate with suppliers to drive continuous improvement.
This technique is applicable to suppliers whose environmental performance cannot be readily
improved by mandatory compliance with third party (Section 2.2.6.4) or retailer defined(Section 2.2.6.5) environmental standards. However, there is an overlap with Technique 4 andTechnique 5 where retailers assist suppliers to comply with third party standards or retailer
requirements, respectively.
Economics
No specific economic data were provided. Retailers may initially offer suppliers a small pricepremium to encourage participation in improvement schemes, and must pay to support
information collation and BMP dissemination. These costs should be balanced against reduced
reputational and medium-term business supply chain risks associated with unsustainable
practices, and against price premiums that retailers may consequently realise.
Where suppliers invest to implement BMPs and achieve performance improvements, costs
should be balanced against improved security of demand from retailers, potential process
efficiency gains, enhanced marketability of their products, and any price premiums they may
consequently realise.

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Driving forces for implementation
Maintaining business contracts with large retailers, potential operational efficiency gains, and insome cases product price premiums offered by retailers motivate suppliers to comply withretailer improvement programmes.
For retailers, all of the driving forces listed in Section 0 are relevant, but the following areparticularly important for implementing widespread compliance with independent minimum
standards:
•
•
•
•
•
•

environmental awareness and responsibility
consumer demands
developing potentially more profitable value-added product ranges
enhancing image and reputation
reducing the reputational risk from 'product scandals'
future-proofing supply chains.

Reference retailers
Adidas, Asda, George, Hemtex, H&M, IKEA, KapAH, Levi Strauss & Co., Lindex, M&S,
Migros, Sainsbury's and Tesco
Reference literature•
BCI, Better Cotton Initiative Production Principles and Criteria 2.0,
http://www.bettercotton.org/, 2010.
•
Carrefour personal communication, meeting with CSR unit 13.09.2010.
•
Colruyt personal communication, email correspondence with head of CSR, November
2010.
•
Coop Switzerland, Pour plus de 1400 produits écologiques et non toxique, Coop, 2009.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
H&M personal communication, email correspondence with CSR department, July 2010.
•
IKEA. IKEA IWAY Standard. Minimum Requirements for Environment and Social &Working Conditions when Purchasing Products, Materials and Services. Edition 4, 2008.
•
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
•
M&S, How we do business report 2010. Doing the right thing.
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010.
•
Migros, Migros Sustainability Report 2009. http://m09.migros.ch/en, 2010.
•
Sainsbury's,
Corporate
Responsibility
Report,2010,
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010.
•
Sainsbury's personal communication, meeting with CSR unit, 28.06.2010.
•
Textile Exchange homepage, http://organicexchange.org/oecms/, 2011.
•
WWF, Cleaner, greener cotton: Impacts and better management practices, WWF, 2007.
•
WWF personal communication, email correspondence with WWF personnel involved
with BCI, September 2010.

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2.2.6.7

Collaborative research and development to drive widespread
supply chain improvement and innovation

Description
Collaborating with research institutes to assess impacts along entire product value chains,
including consumption and end-of-life stages, enables retailers to focus intervention where it ismost effective (Section 2.2.6.2). Front-runner retailers pursue research and development beyond
supply chain assessment, primarily through:••collaboration with a range of relevant stakeholders to develop widely applicable
environmental standards for products and suppliers;
collaboration with suppliers and research institutes to develop innovative solutions forparticular processes or products.

Third party environmental standards provide the most robust and credible basis for productsupply chain improvement, as described in Section 2.2.6.4, yet a number of priority productgroups are not represented by relevant third party standards. Developing such standards is apriority to drive widespread improvement in product supply chains that is being driven by
producers, branded-product manufacturers and NGOs, but in which retailers can play animportant role. The development of credible and widely recognised third party standards
requires the involvement of all major stakeholders. Retailer collaboration with otherstakeholders can lead to selection and development of the most appropriate third party
standards, which in turn can reduce standard proliferation and ultimately improve theeffectiveness of all certification. This technique can maximise the returns on the work of supply
chain stakeholders to improve environmental performance, and is driven by medium-termcollective interests.
Collaboration between retailers, suppliers and research institutes is also essential for thedevelopment of innovative solutions for product lifecycle improvement. Product design, or
methods of production, may be targeted to reduce environmental impact from a lifecycle
perspective.
To optimise the effectiveness and efficiency of this technique, retailers should strategicallyfocus collaborative efforts on product groups with the greatest improvement potentials (Section
2.2.6.2), and with stakeholder groups to which they can contribute the most knowledge andexperience.
This technique is broad in its focus, and includes any retailer actions based around collaborative
research and development that aim to drive either widespread supplier improvement orsignificant innovation. The most effective method to convey best practice across this broad
technique is to summarise some current examples of best practice (Table 2.55 and Case study2.10).
Achieved environmental benefits
Retailer engagement in the development of third party product standards can help to ensure thatthose standards are appropriate for widespread application, and thus can be used to drive
widespread environmental improvement as indicated in Section 2.2.6.4.
Research aimed at identifying innovative solutions to supply chain sustainability challenges
may not necessarily achieve immediate environmental benefits, but should lead to theimplementation of widespread supply chain improvement options in the medium term. For
example, the development of organic production methods (Case study 2.10) may lead to new
farming techniques that can be implemented by all farmers (Section 2.2.5.11).
Table 2.55 includes a selection of collaborative projects in which retailers are involved to drive
supply chain improvement, whilst Case study 2.10 focuses on one front-runner retailer for thistechnique.
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Chapter 2
Table 2.55:

Some examples of innovative supply chain research coordinated by front-runnerretailers
ExamplesCarrefour collaborate with Tetrapack and Pricewaterhouse Coopers on the
Global Packaging Project that employs LCA to identify the mostenvironmentally responsible packaging option for various types of
product, and develop appropriate environmental metrics of packaging
performance (Carrefour, 2010).
Carrefour developed a new 'Carrefour&Pur' cosmetic range based on
novel application of ultra high temperature sterilization to enable use of agreatly reduced number of ingredients that are 99.9% natural and organic,and exclude artificial preservatives, perfumes and colorants (Carrefour,2009).
Carrefour worked with WWF to redesign its entire own-brand pesticide
range, excluding glyphosate, and using more environmentally responsible
active ingredients including an extract from geranium (Carrefour, 2010).

Environmental benefit

Identification of environmental
front-runner packaging options

Reduced ecotoxicity and resource
consumption

Considerably reduced ecotoxicity

Coop Switzerland led the construction of two tropical houses that use
geothermal heat (Tropenhaus Frutigen) and waste heat from a gas
compression station (Tropenhaus Wolhusen) to sustainably produce
tropical fruit and fish (Coop Switzerland, 2009).

Avoids further depletion of rarefish stocks (e.g. sturgeon)
Avoids high specific emissions ofhigh-altitude CO2, NOx and
VOCs

Coop Switzerland and Rewe have worked with organic cotton suppliers
and apparel manufacturers to produce carbon-neutral t-shirts (residual CO2
emissions offset through WWF gold-standard projects within the
production chain). Coop Switzerland has a target for all organic cotton
products to be CO2-neutral by 2013 (Coop Switzerland, 2010).

100 % reduction in net GHG
emissions

H&M have trialled the use of organic wool, recycled wool (from usedgarments), and recycled polyester (from PET and textile remnants) ingarment manufacture (H&M, 2010).

Considerably reduced resource
consumption
Avoidance of significant soil,
water and air pollution caused byconventional wool production

H&M worked with Dow Corning and suppliers to trial the use of asilicone-based chemical in denim-washing processes – it reduces water use
by 25 %. Plan to extend project to additional suppliers in 2010, andeventually to all denim suppliers (H&M, 2010).
Otto's Eco Circle project involves customers returning worn polyester
clothes, which are recycled into raw polyester for reuse in SportCheck ski
outfits (CO2 footprint of recycled polyester only one fifth of newpolyester) (Otto, 2010)
Rewe is working with various stakeholders, including the Chiquita
marketing group, a local citizens group, and the German Technical
Corporation, to restore 120 hectares of farmland to wetland, and develop
sustainable practices, in the environmentally-sensitive Bocas del Torroprovince of Panama that supplies 80 % of Chiquita bananas sold in Rewe
(Rewe, 2010).
Sustainability Consortium. Includes a number of retailers such as M&S
and Royal Ahold, product manufacturers, scientific institutes and NGOs.
Working on a wide range of issues through working groups dedicated to:measurement science, systems science, consumer science, home andpersonal care products, food beverages and agriculture, etc. (Sustainability
Consortium, 2010)
Tesco funded Sustainable Consumption Institute. The institute at
Manchester University focuses on four research themes: sustainableconsumer behaviour and lifestyle, sustainable production and distribution,
climate change and carbon, and making development more sustainable.
Interdisciplinary research on water resource sustainability is a cross-theme
topic.

Best Environmental Management Practice in the Retail Trade Sector

25 % reduction in water use

80 % reduction in carbon
footprint of recycled ski outfits
Restoration of high conservation
value habitats
Maintenance of local ecosystem
functions
Reduced resource use
Reduce soil, water and air
pollution

Identification of options for
product lifecycle impact reduction

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Chapter 2

Environmental Indicators
Effective strategic supply chain research should ultimately result in reduced environmental
impacts arising from the supply chains of priority product groups, although there may be aconsiderable time lag. Improved product and supplier environmental performance, as reflected
in indicators proposed for Section 2.2.6.4 to Section 2.2.6.6 and Section 2.2.6.8 may reflect past
supply chain research. Direct measures of retailer performance in terms of funding andcoordinating strategic supply chain research include:•••

expenditure on sustainable supply chain research (expressed in relation to turnover);qualitative assessment of whether the research is targeted at innovative, scalable andhigh-potential improvement options;specific environmental improvements attributable to implementation of research outputs.

Cross-media effects
The reference retailers have adopted a broad perspective on sustainability, and pursue
improvement across a wide spectrum of environmental pressures, so negative cross-media
effects should be minimal. It is important to base research and development on scientific data,
and use tools such as LCA to optimise outcomes.
Operational data
Current best practice for driving supply chain innovation focuses on applied research thatengages suppliers and key stakeholders such as plant breeders, pooling relevant expertise (Table
2.55 and Case study 2.10). The challenge for effective implementation of this technique is tobalance strategic coordination and long-term objectives with practical outcomes (i.e. thedevelopment of innovative supply chain solutions that address environmental problems). Migros
was the leading force behind the establishment of the RSPO standard (Case study 2.5), whilst a
number of retailers were involved in the development of the BCI (Case study 2.7). Suchcollaboration represents best practice for this technique.
Some high profile examples of retailer research collaboration do not represent best practice forthis technique. The US-based Sustainability Consortium (initiated by Walmart) has focused on
supply chain data collation and impact assessment, representing best practice for Technique 2 inSection 2.2.6.2, but has not engaged in the supply chain innovation research. Meanwhile, theUK's Sustainable Consumption Institute (initiated by Tesco) has produced some useful papers
and reports exploring the best methods to encouraging more sustainable consumption, but has
not yet engaged in supplier innovation. These promising collaborative efforts could become bestpractice examples for this technique when research becomes more focused on implementing
solutions to supply chain sustainability challenges.
Applicability
Any large retailer with own-brand supply chains can collaborate with research institutes or
consultancies to improve supply chain sustainability.
Retailers should focus such research and development on product groups for which there are no
existing commercially viable and widely applicable improvement options.
Economics
Research costs are typically small compared with retail turnover, and should be considered as aninvestment in securing sustainable and economically competitive supply chains.
Driving force for implementation
All of the driving forces listed in Section 2.2.4 are relevant, but the following are particularly
important for implementing widespread compliance with independent minimum standards:••

environmental awareness and responsibility
identification and implementation of cost-effective or cost-saving environmental
improvement opportunities

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Chapter 2•

management of risk, and future-proofing key supply chains.

Reference retailers
Coop Switzerland, H&M, Migros, Otto, Rewe.
Reference literature•
Carrefour, Carrefour and Tetra Pak Global Packaging Project pilot project summary
report. Carrefour, France, 2010.
•
Carrefour, Sustainable development at Carrefour. Expert Report 2009, Carrefour, France,
2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2008,
http://www.coop.ch/pb/site/common/get/documents/system/elements/ueber/zahlen_fakten/_pdf/en/NHB08.pdf, 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009.
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
Migros, Migros Sustainability Report 2009. http://m09.migros.ch/en/environmentsociety, 2010.
•
Otto
Group,
Otto
Group
Sustainability
Report2009,
http://www.ottogroup.com/sustainabilityreport.html?&L=0, 2010.
•
Rewe,
Rewe
We
take
ActionReport2009,
http://rewe-groupgeschaeftsbericht.de/2009/en/dl/REWE_Group_report_2009_eng.pdf, 2010.
•
Sustainability Consortium homepage, http://www.sustainabilityconsortium.org/, 2010.
•
Sustainable Consumption Institute homepage, http://www.sci.manchester.ac.uk/, 2010.

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Chapter 2
Case study 2.10: A best practice example of a retailer coordinating research to identify innovative
solutions to supply chain sustainability
Coop Sustainability Fund
Coop Switzerland funds and strategically coordinates CHF 13 million (EUR 9 million) of research peryear through its Sustainability Fund to address key supply chain issues, and uses results to informproduct sourcing and target supply-chain intervention (Coop Switzerland, 2010). The Coop
Sustainability Fund has sustained long-term cooperation with the Swiss Research Institute for Organic
Agriculture (FiBL) since 1992. Currently, Coop is sponsoring a project in which FiBL is working
with the bioRe Association in India (set up by the Coop and Remei AG) to compare the lifecycle
performance of organic and conventional cotton production systems (used to supply Coop Naturaline
textiles).
Projects supported by the Coop Sustainability Fund include:

•
•
•
•
•

the 'cool farming' project, in which ploughless soil tillage and nitrogen-fixing plants are used toreduce resource consumption and GHG emissions arising from agricultural production;a project attempting to extend the season for organic strawberry production in Switzerland;
long-term plant breeding work by Getreidezüchtung, Peter Kunz and Sativa Rheinau AG todevelop varieties of high-yielding organic wheat and spelt used in Coop's organic Naturaplan
bread ;
Coop aid for mountain regions, that provides support for the economically-marginal mountainfarming systems that maintain high-nature-value (extensively managed) mountain landscapes;
a project cultivating organic rape seed.

Identifying supply chain solutions
Coop also funds and collaborates with the Federal Institute of Technology Zurich (ETH) to compile
lifecycle ecoaudits for specific product categories. The results of this research are used to prioritise
product selection. For example, asparagus was identified as having the greatest potential for air-freight
emission reductions, so the proportion of white asparagus air-freighted was reduced from 50 % in2007 to zero in 2009. For green asparagus sourced from South American and California, where
quality considerations necessitate continued air-freight, in-store promotions were halted and Coop is
working to develop Morocco as a future supply country (the latter point represents innovation).

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Chapter 2

2.2.6.8

Promote front-runner ecological products

Description
As summarized in Figure 2.78 (Section 2.2.6), retailers' primary responsibilities with respect toimproving the sustainability of supply chains are ensure that all products and suppliers achieve
specified minimum levels of environmental performance (Section 2.2.6.4 and Section 2.2.6.5),
or at least drive continuous improvement (Section 2.2.6.6). However, retailers can also play animportant role in promoting the consumption of front-runner ‘niche’ ecological products. Suchproducts are primarily represented by ISO Type I environmental labels, such as the EU
Ecolabel, Germany’s Blue Angel, and the Nordic Swan, and organic certification for reasons
outlined in Section 2.2.5.11. These products are associated with significant direct and indirect
benefits (see Achieved environmental benefits), and from here on are referred to as'ecoproducts'.
Ecoproducts are associated with a significant price premium, and therefore constitute a nichemarket bought by a minority of environmentally aware consumers who are able and willing to
pay that premium. Also, by definition many ecoproducts constitute the top 10–20 % best
environmental performing products (EC, 2010). Increased sales of ecoproducts within aparticular retailer's stores may increase the overall sales of ecoproducts, or may substitute salesof similar products in other stores. In order to generate additional sales of ecoproducts, frontrunner retailers work with suppliers to increase the rate of supplier certification according toexemplary standards and to reduce the price premium for such products. An example of this is
C&A's work to encourage organic certification across cotton producers (Case study 2.11).
Customers are bombarded and often overwhelmed with product information. A recent US study
found that whilst 20 % of consumers buy some 'green' products, a higher proportion would buy
green products if they could easily identify them (Deloitte, 2009). There is considerable
potential for retailers to increase sales of ecoproducts through influential communication andmarketing, especially positioning and provisioning of information within stores (Deloitte,2009). Retailers must provide consumers with clear and simple messages about different
product groups, and clearly differentiate rigorously defined front-runners from all otherproducts. In particular, retailers should clearly distinguish communication and labelling forthird-party-certified ecoproducts from communication of less rigorous product improvement
achieved through retailer requirements (Section 2.2.6.5) and programmes for continuous
improvement (Section 2.2.6.6).
An effective way to communicate front-runner ecological performance to consumers is toconsolidate ecoproducts into exclusive own-brand ecological ranges. Albert Heijn launchedtheir 'puur&eerlijk' (pure & simple) umbrella range in 2009 (Table 2.59) in response to acustomer survey that indicated a clear desire for more simple and consistent labelling to identify
sustainable products.
Achieved environmental benefits
Ecoproducts are associated with considerably lower lifecycle environmental impacts than
average conventional products (Table 2.56). In addition to direct benefits, ecoproducts areassociated with important indirect environmental benefits, especially if they become accepted as
benchmarks by other suppliers (Figure 2.86). Consequently, stimulating demand forecoproducts has three main environmental benefits:•••

the avoided (excess) environmental impact associated with consumption of thesubstituted conventional productreduced consumption owing to higher expenditure on ecoproducts
mass market commercialisation of environmentally superior production processes(innovation).

The main features and achieved environmental benefits are summarised in the descriptions ofsome retailer ecological ranges for food products (Table 2.59) and non-food products (TableBest Environmental Management Practice in the Retail Trade Sector219

Chapter 22.60). Achieved environmental benefits for particular product groups are the same as thoselisted in Table 2.56, and include the less tangible benefit of stimulating innovation (Section
2.2.5.11).

Table 2.56:

The two main types of standard representing front-runner ecoproducts promoted
via labelling in this techniqueStandard typeMain
environmental
benefits

Features

The listed environmental labels are independent of one
anotherbut
represent
equivalent
exemplary
EL: Ecolabel
environmental standards for non-food products. The(Blue Angel,most certified product categories are chemical and
EU Ecolabel,cleaning products. Essentially, product performance
Nordic Swan)across relevant environmental hotspots must be in the
top 10–20 % for the product category.

Considerable
reductioninlifecycle
environmental
impact relative toaverage products
within the samegroup

Organic product certification is awarded by a number ofcertification organisations, with some differences in
specific requirements, but within the EU these are all incompliance with Commission Regulation (EC) No
889/2008. Foods may only be labelled 'organic' if at
least 95 % of their agricultural ingredients are organic.
Detailed requirements and restrictions prioritise the useof internal resources in closed cycles rather than the useof external resources in open cycles. External resources
should be from other organic farms, natural materials,
and low soluble mineral fertilisers. Chemical synthetic
resources are permitted only in exceptional cases.

Enhancedagricultural
biodiversity
Improved
soil
quality
Lower
resource
consumption
Agricultural
innovation

OC: Organic

Front-runnerstandard

Minimum
standard

Environmental performance
Source: Misiga (2010)

Figure 2.86:

Ecoproducts can exert an environmental performance 'pull' effect on entire
product groups if they become benchmarks for environmental performance

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Appropriate environmental indicator
Indicators of product environmental performance should be based on LCA, or similarlycomprehensive methods as outlined in Section 2.2.6.2. Retailers frequently use independentcertification of products to demonstrate exemplary environmental performance.
The primary indicator of retailer performance for this technique is:•the percentage of sales within a product group certified according to front-runnerexemplary standards indicated in Table 2.56.

Table 2.57 summarises best retail performance across product categories. Few retailers provided
a detailed breakdown of organic sales across product categories. Data from Coop Switzerlandshow a wide variation in the proportion of organic sales across food categories, ranging from
3 % for coffee to 23 % for poultry and eggs, and 29 % for farmed fish, with overall 8 % of foodsales being organic. Beyond the proportion of organic fish sold (Table 2.57), other data verify
Coop Switzerland as a front-runner retailer in this technique (Table 2.59 and Table 2.60).

Table 2.57:

Performance of leading retailers and proposed benchmarks of excellence, withrespect to sales of ecoproducts within priority product groups (expressed aspercentage of product group certified)

Product group

Applicablestandards

Best
performers
2010

Coffee, tea

OC

3 % OCCS

Dairy
Farmed fish
Fats and oils

FOOD PRODUCTS

Fruit and vegetables
Grain products
Poultry, eggs
Red meat
Seafood (wild catch)

OC
OC
OC
OC
OC
OC
MSC

Sugar

OC

Electronic goods

EL

Household chems
NON-FOOD

OC

10 % OC
10 % OCCS

10 % OCCS

10 % OCCS

10 % OCCS

10 % OCCS

10 % OCCS

10 % OC

10 % OCSee Section 2.2.6.4

100 % MSC

8 % OCCS

10 % OC

12 % OC
29 % OC
11 % OC
15 % OC
20 % OC
23 % OC

10 % ELKFS

6 % ELOC

100 % 'OC or
10 % OCC&A; sustainable'
60 % OCCS(2020)C&A
See Section 2.2.6.4

FSC

ProposedbenchmarkCS

EL

TextilesWood and paper

Targets

10 % EL
50 % OC
100 % FSCNB: EL = Ecolabel, FSC = Forestry Stewardship Council, OC = organic,
CS = Coop Switzerland, KFS = Koopertaiva Förbundet Sweden (Coop Sweden)

Within KF Sweden, the Coop Kunsum sub-group achieved an 8.6 % sales share for organic
food. Approximately 10 % of cotton sold by C&A was organic in 2010, and C&A has a target
for 100 % of cotton to be either organic or other 'sustainable' certified by 2020 (Table 2.57).
Meanwhile, 60 % of the cotton in textiles sold by Coop Switzerland is organic.

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Chapter 2

Benchmarks of excellence proposed in Table 2.57 are 50 % for organic cotton certification,
10 % for organic food certification, and 10 % for environmental label certification withinrelevant categories. These benchmarks are based on front-runner retailer sales, but also EU
targets for front-runner environmental products (EC, 2010). As in previous sections,benchmarks of excellence proposed in Table 2.57 should be interpreted for each product groupaccordingly:•

the retailer demonstrates on-track progress within the context of a detailed plan to achieve
the proposed benchmark.

It may be appropriate to express performance for more disaggregated product groups than thesummary product groups presented in Table 2.57.
In addition to the sales of organic and environmental labelled products across product groups(primary performance indicators), retailer performance for this technique is also indicated by the
total percentage of sales represented by specific ecoranges or sustainability ranges (Table 2.58,
Table 2.59 and Table 2.60).

Table 2.58:

Front-runner retailer ecological range sales as a percentage of overall retail sales
Range
Coop 'sustainable' labels
KF Sweden Änglamark
Migros 'sustainable labels'

Sales
(%)
5.0 % retail sales
2.9 % total sales
4.9 % retail sales

Cross-media effects
Ecoproducts certified with an ISO Type-I label have been assessed as ecological front-runners
across a range of relevant environmental criteria, and are not associated with significant crossmedia effects.
The benefits of organic production (lower resource consumption and environmental impact,stimulation of innovation, and lower consumption owing to higher prices), may need to bebalanced against the environmental consequences of increased agricultural land appropriation
where this is required to compensate for lower yields (see Section 2.2.5.10). Indirect land use
effects may occur at a global scale, and are therefore difficult to estimate.
Operational data
Table 2.59 and Table 2.60 provide examples of retailer ecological and sustainability ranges used
to promote front-runner ecological products. Retailers may promote ecoproducts under a single
umbrella sustainability range comprised of front-runner products across environmental, social
and animal welfare criteria (e.g. Albert Heijn's 'puur&eerlijk' range, KF Sweden's 'Änglamark'range), or they may promote ecoproducts within a specific ecological range (e.g. Coop
Switzerland's 'Naturaplan' range, Migros' 'Terra Suisse' and 'Bio' ranges). It may take some timefor front-runner ranges to become recognised and trusted by customers: a long-term sustainablesupply chain strategy is required (see Section 2.2.6.1).
Retailers can promote ecoranges through prominent product placement and competitive pricing,including promotions. Advertising is more effective in-store than out of store (Deloitte, 2009).
Front-runner retailers work closely with suppliers to increase availability and reduce the pricepremium of ecoproducts (Case study 2.11).

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Chapter 2
Table 2.59:

Some examples of retailer sustainability ranges for food products

Retailer

Albert Heijn

Carrefour

Coop Switzerland

KF Sweden

Migros

REWE

Product range
Albert Heijn's 'puur&eerlijk' (pure & honest) range of more sustainable private label products was launched in 2009. The puur&eerlijk range is comprisedof four different food product categories (plus one non-food category: Table 2.60), each with their own packaging colour and logo from an independentcertification organisation: (i) Organic, based on EKO certification; (ii) Fairtrade, based on Max Havelaar certification; (iii) Sustainable catch, based on
MSC certification; (iv) Free-range meat, certified according to Dierenbescherming (Dutch animal welfare organisation) criteria. Albert Heijn developed
100 new products especially for the puur&eerlijk range, which comprised 340 high turnover products at the end of 2009 (target to reach 450 products in2010). The range was launched with an intensive advertising campaign, and a 25 % to 50 % discount during the first two weeks.
Carrefour's AGIR bio range comprises 500 organic food products with prices, on average, 25 % lower than equivalent products in specialist stores(Carrefour, 2010).
Coop Switzerland's Naturaplan range comprises over 1600 organic food items (one of the largest organic food ranges in the world). All products are
certified according to the stringent Bio Bud standard (products cannot be air-freighted or grown in heated greenhouses). The Naturaplan label accounts for
7 % of Coop Switzerland's food sales and for over 50 % of organic food sales in Switzerland (Coop Switzerland, 2010; Coop Switzerland, personalcommunication).
Coop Switzerland's 'Fresh from the regions' range is comprised of local, organically-grown products, sometimes stocked in as few as five stores, delivered
directly to by local suppliers.
KF Sweden's Änglamark label (also applied to non-food products: Table 2.60) comprises products that have been certified according to exemplary
standards, primarily organic (through KRAV or UK Soil Association certification). KF Sweden stock 1736 organic products, accounting for 6.7 % ofsales. Some food products in the Änglamark range carry additional certification such as Fair Trade. KF Sweden has an overall market share of 22 % in
Sweden, but is responsible for 40 % of all ecosales. Food products with relatively high Änglamark representation include: eggs (19 %), fresh vegetables(6 %), fresh meat (6 %), cereal (5 %) (KF Sweden, personal communication). 18000 farmers have improved ecological management practices to achievecertification.
Migros Bio organic food range is certified according to the stringent Bio Bud standard for Swiss agriculture. Imported products are certified according to
EG 834/2007. Air freight is forbidden. Migros Bio comprises 1000 products and accounts for 3 % of Migros food sales (Migros, 2010).
Migros Terra Suisse range guarantees that food products are produced within Switzerland using limited quantities of agrochemicals. Minimum animal
welfare standards are also upheld. Terra Suisse accounts for 5 % of Migros food sales (Migros, 2010).
REWE International AG introduced the 'Ja! Natürlich' organic range in 1994. This range now comprises over 1000 products, and accounts for nearly
50 % of turnover in the Austrian organic market. REWE International AG's PENNY division has sold the 'Echt B!O' affordable organic brand since 2004,
and is supplied by 7000 organic farmers who are also company partners.

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Chapter 2
Table 2.60:

Some examples of retailer sustainability ranges for non-food products, and associated environmental benefit

Retailer
Albert Heijn
C&A
B&Q

Coop Switzerland

KF Sweden

Migros

Otto

Product range
Albert Heijn's 'puur&eerlijk' range includes a non-food product category that also carries the 'Eco-friendly', and is based on independent certificationaccording to Nordic Swan and Blue Angel environmental label criteria.
C&A organic cotton range is produced exclusively from certified organic cotton (see Case study 2.11) and carries no price premium over conventional
products.
B&Q's One Planet Home Range consists of 4000 products, selected in conjunction with the BioRegional charity. It includes independently-certified
exemplary ecological products (e.g. FSC wood products), but also standard products such as home insulation that can help customers to live a moresustainable lifestyle.
Coop Switzerland's Naturaline range comprises over 440 certified organic, fair-trade textile products (largest such range in the world). Over 93 % of Coop
Switzerland's cotton-wool sales are Naturaline branded, and Naturaline accounts for 0.9 % of Coop Switzerland's non-food sales. Coop and Rewe demand
supports 10 300 organic cotton farmers in India and Tanzania.
Coop Oecoplan range is comprised of 1400 front-runner ecological products. It includes products with low energy consumption, products associated withrenewable energy, products with low material requirements or made from sustainably harvested, organic or recycled materials, non-polluting products andproducts for organic cultivation. Coop collaborated with experts to develop Oecoplan requirements for product groups, largely based on independentcertification (A+ or A++ energy rating, Bio Suisse, Blue Angel or EU Ecolabel environmental label, FSC). Oecoplan range accounts for 1.4 % of Coop
Switzerland's non-food sales, but 11 % of paint sales, 86 % of sales of fridges and freezers, and 90 % of plant sales (Coop, 2009b).
Non-food products in KF Sweden's Änglamark are independently certified according to exemplary standards such as the Nordic Swan and EU Ecolabel
environmental labels, and FSC. Some of these products may carry additional certification, such as the Swedish Astma & Allergiförbundets label (nonallergic label). Priority product groups with relatively high levels of Änglamark representation are: tissue paper (19 %), textiles (6 %), and detergents (6 %).
In total, 1480 of KF Sweden's non-food products are environmental labelled, accounting for 4 % of overall sales, while 2.9 % of overall sales areÄnglamark labelled (KF Sweden, personal communication).
Migros "Bio Cotton" range. Independently verified compliance with Euro Bio Regulations that ensure organic production of clothes and textiles. The entire
supply chain is independently tested for environmentally harmful substances and processes by Migros-owned eco-programme. Migros Bio Cotton accounts
for 0.2 % of Migros non-food sales (Migros, 2010).
Purewear organic cotton range sold by Otto, Unito and Witt. In 2008/9, 293 tonnes organic cotton certified by Skal Cotton Union were used in this range.
Otto Cotton Made in Africa textile range. Fixed environmental and social quality standards audited by an independent firm within a strict verification
system. Source countries include Benin, Burkina Faso, Zambia and Mozambique. 85 000 tonnes 'sustainable' cotton per year from 160 000 ha, supporting >130 000 smallholders and their families (Otto, 2010).

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Chapter 2
Case study 2.11: C&A's collaborative work to develop an extensive organic cotton supply chain as abest practice example of improving environmental product accessibility toconsumers
Strategy
C&A began exploring options to use organic cotton in 2004, and joined the Organic Exchange (nowTextile Exchange) initiative in 2005. In 2007 C&A's European Executive Board agreed on a long-termplan to expand the use of organic cotton, and C&A launched a broad range of organic clothingaccompanied by advertising campaigns. Crucially, C&A sells clothing produced from organic cotton at
the same price as clothing produced from conventional cotton.
In 2008, C&A, Organic Exchange and the Shell Foundation initiated a five-year project in India to scale
up the supply of organic cotton to C&A. Amongst aims of work in India are: (i) to set up a neworganisation (Cotton Connect South India) that will assist companies and business partners to develop
strategies for the management of sustainable cotton supply chains; (ii) develop a model for capacity
expansion for application in regions such as China, Africa, South America, and Turkey.
Encouraging organic farmers
Cotton farmers making the transition to organic certification face a considerable risk during the three-year
transition phase. C&A cooperates with selected spinner/grower groups and places appropriate ordervolumes to establish economically-viable operations which aim to optimise efficiencies throughout thewhole supply chain, whilst also seeking to ensure the integrity of the final product. In addition,
opportunities for organic cotton farmers to increase value-added to their product through additionalsorting, drying and roasting of crops in rotation with cotton have been identified by Organic Exchange
and the Shell Foundation.
In 2008, C&A and Organic Exchange ran a workshop on organic production techniques for over 200
farmers from 24 organic cotton projects in India. Over 2008 and 2009, three value chain conferences wereorganised to disseminate information on C&A's organic cotton strategy and expectations to supply chain
partners, stakeholders and farmer organisations. Expectations regarding integrity, quality, certification,labelling and environmental standards (particularly water and energy use) have been conveyed.
Supply chain coordination
C&A actively coordinates the supply chain. In 2008, C&A asked 30 suppliers to buy organic cotton yarns
and fibres from six specific Indian spinning mills, who in turn obtained organic cotton from selected
farms. C&A, Organic Exchange and Shell Foundation have formed a partnership under the name 'Cotton
Connect'. Cotton Connect is a business organisation that aims to collaborate with retailers and fashion
brands to make global cotton supply chains more sustainable (economically, socially andenvironmentally), including targeted support to encourage widespread transition to organic cotton
production.
In 2009, 15 000 Indian farmers worked on the C&A organic cotton project, and 18 million clothing items(8 % of C&A's entire cotton collection) were made from certified organic cotton. In 2008, organic cotton
accounted for EUR 200 million of C&A's retail sales, and C&A was recently confirmed as the largest
buyer of organic cotton globally. For 2010, C&A aim to sell 23 million products made from organic
cotton, to account for 10 % of cotton products. By 2020, C&A aim to use 100 % cotton that is either
certified organic or cultivated according to more sustainable methods for their entire product range.

Applicability
Any retailer can promote ecoproducts through their procurement and marketing strategies,
whilst any large retailer can introduce an own-brand ecological or sustainability range.
Front-runner ecological standards are available for a wide range of product groups. Organic
certification is available for most food products, whilst environmental label certification isavailable for a wide range of the most environmentally relevant non-food products.
Economics
No specific economic data were provided. Compliance and certification costs are directly borneby suppliers, but should be balanced against the considerable price premiums usuallycommanded by ecoproducts.

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Chapter 2

Similarly for retailers, costs incurred in the sourcing and marketing of ecoproducts are usually
lower than the premium prices consumers are willing to pay for ecoproducts. Typically, retailprofit margins are significantly higher for ecoproducts. However, for this technique to beeffective, retailer ecorange products should be less expensive than branded ecoproducts. For
example, Carrefour (2010) claim that their AGIR bio range is, on average, 25 % less expensive
than equivalent products in specialist stores.
In addition, retailers should consider reputational and supply chain risk management benefits
associated with wider ecoproduct sourcing.
Driving forces for implementation
Consumer demand is the main driving force for retailers to sell environmental products. Higher
profit margins motivate suppliers and retailers to invest in environmental product certificationand promotion, respectively. For retailers, all of the driving forces listed in Section 0 are
relevant, but the following are particularly important for encouraging ecological consumption:••••

environmental awareness and responsibility
consumer demands
developing more profitable value-added product ranges
enhancing image and reputation.

Reference retailers
B&Q, C&A, Coop Switzerland, KF Sweden, Migros, Otto, Rewe.
Reference literature•
Ahold, Sustainability Report 2009, http://www.ahold.com/reports2009, 2010.
•
B&Q,
One
PlanetHome
homepage,
http://www.diy.com/diy/jsp/bq/templates/content_lookup.jsp?content=/content/marketing/one_planet_home/index.jsp&menu=eco, 2010.
•
C&A, Acting sustainably. C&A Sustainability Report 2010, www.c-anda.com/service/press/material/download.php/2592, 2010.
•
Coop Switzerland, Pour plus de 1400 produits écologiques et non toxiques, Coop, 2009.
•
Coop, personal communication, email correspondence September 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
Deloitte, Finding the green in today's shoppers: sustainability trends and new shopper
insight, GMA/Deloitte, 2009.
•
EC, Regulation (EC) No 66/2010 of the European Parliament and of the Council of 25
November 2009 on the EU Ecolabel. Official Journal of the European Union L 27/1
(30.01.2010), 2010.
•
EC, EU Organic label legislation, http://ec.europa.eu/agriculture/organic/eupolicy/legislation_en#regulation, 2010.
•
ICA, The ICA Group’s Annual Report including the Corporate Responsibility Report for
2009, http://www.ica.se/Om-ICA/Eng-sektion/Finansiellt/Reports/, 2010.
•
KFAnnual report 2008,http://www.coop.se/Globala-sidor/In-english/About-Coop/, 2010.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
Misiga, P., 'A vision for European environmental product policy'. Workshop on
Ecodesign and Resource Efficiency, Eigtveds Pakhus, Copenhagen, 26 November 2010.
•
Otto
Group,
Otto
Group
Sustainability
Report2009,
http://www.ottogroup.com/sustainabilityreport.html?&L=0, 2010.
•
Rewe,
Rewe
We
take
ActionReport2009,
http://rewe-groupgeschaeftsbericht.de/2009/en/dl/REWE_Group_report_2009_eng.pdf, 2010.
•
Textile Exchange homepage: http://organicexchange.org/oecms/, 2011.

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Chapter 2

2.3

Best environmental management practice to improvetransport and logistics operations

2.3.1

Chapter introduction

Retail transport and logistics
The primary function of efficient transport and logistics (T&L) operations is the safe, punctual
delivery of merchandise to retailers' distribution centres and stores. This function is critical tothe commercial success of retail businesses, and avoids unnecessary environmental impacts
attributable to the disposal of late-delivered perishable food (Chapter 2.4), including impacts
arising from compensatory production (Chapter 2.2).
The T&L operations underpinning deliveries are becoming ever more complex, owing to anincreasing number of products, an increasingly globalised network of suppliers, and trends
towards inventory minimisation and just-in-time deliveries. In addition, T&L operations
influence or are influenced by many aspects of retail strategy and operations (Figure 2.87); so
any modifications must consider a multitude of possible effects. However, there is considerable
scope to reduce the significant environmental impacts associated with T&L operations
themselves without compromising critical primary functions. In fact, some improvement
options involving logistical collaboration may allow for a higher frequency of efficientdeliveries for perishable products.

Source: Bestlog (2010)
Figure 2.87:

The key role of transport and logistics operations within retail strategy andoperations.

Supplier and retail T&L operations are typically responsible for a relatively small share of thelifecycle environmental impact of products (Chapter 2.2), but represent a significant source ofenvironmental impact over which retailers have either direct control, or significant influence
through contracts with third party logistics providers. Transport and logistics operations
typically account for a substantial portion of retailers' direct emissions, although the exact
proportion varies considerably across retailers of different types and sizes. IKEA (2010)
calculate that goods transport accounts for 48 % of scope 1 and 2 GHG emissions according to
GHG Protocol reporting standards (i.e. excluding upstream emissions associated with raw-

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Chapter 2material extraction and production) (WBCSD/WRI, 2004). For large grocery retailers, T&L
operations account for between 10 % and 25 % of scope 1 and 2 GHG emissions( 20 ).
Meanwhile, although typically making a small contribution to product environmental footprints,
T&L can make a substantial contribution to the environmental footprints of particular products.
Rizet et al. (2008) calculated that ship transport from New Zealand dominates the lifecycle
energy demand of apples sold in France (Figure 2.88). Aside from GHG emissions andassociated climate change, the major sustainability pressures associated with goods transport
are:
•
•
•
•
•
•
•

air pollution (acidification, ozone formation, and other human health effects)
resource depletion (predominantly oil)water pollution (e.g. heavy metals and PAH runoff from roads, chemical spillages)ozone depletion (from leakage of refrigerants used for transportation)road accidents
congestion of passenger transport corridors
noise.
20
Shopping and delivery
Storage and shops
Road transport

15
MJ energy

Marine transport
Production
10

50
New ZealandFranceApplesFigure 2.88:

Home delivery

Home delivery + shop
visit

Chest of drawers

Energy consumption for key transport and handling stages in the supply of apples
from New Zealand and France and chests of drawers to consumers in France,compared with estimated energy consumption during production.
NB: Based on data in Rizet et al. (2008).

Retailers do not account for the full ranges of environmental impacts associated with their T&L
operations. More fundamentally, many retailers still do not reliably monitor and report on somebasic indicators of T&L efficiency – e.g. fuel/energy consumption normalised per unit loaddelivered, and per load-km travelled, or the share of different transport modes. In part, this isbecause a large portion of retail T&L activities are outsourced to third party T&L providers, inwhich case emissions may not be known or accounted for by the retailer.
European context
Overall within Europe, the transport and handling of goods is a major contributor toenvironmental impact, and activity has increased rapidly in recent years – mirroring growth in(20) 10 % for Carrefour in 2009 (Carrefour, 2010); 16 % for Tesco in 2009 (Tesco, 2010); 25 % for Coop Switzerland in 2008 (Coop
Switzerland, 2009).

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Chapter 2

consumption patterns. Between 1995 and 2006, total goods transport within the EU-27
increased from 3 060 billion tkm to 4 140 billion tkm (Eurostat, 2009). Over half of this increase
was attributed to road transport, which accounts for almost half of goods transport within the
EU (Table 2.61). Sea and rail account for 37 % and 10 % of intra-EU goods transport,
respectively, whilst inland waterways account for 3 %, and air freight for just 0.1 %. Current
data indicate that freight transport declined between 2007 and 2009, to stabilise at a levelslightly below that of 2006 (Eurostat, 2010). Imports from outside the EU account for asignificant portion of goods transport generated by EU retail activity. Such imports are
dominated by air and sea transport, which have been estimated to contribute an additional
12.7 % to EU-27 transport-sector GHG emissions (although these are not included in GHG
accounting under the Kyoto Protocol).

Table 2.61:

The modal share of goods transport within the EU-27 in 2006
Mode

Billion tkm

Share

Road
Rail
Oil pipeline
Inland waterways
Sea (domestic/intra EU)
Total

1888
435
135
138
1545
4140

46 %
10 %
3%
3%
37 %

Source: Eurostat (2009)

Beyond consumption growth, a number of factors have contributed to increased goods transport,
and associated environmental pressures. In particular, McKinnon (2008) attributed increasing
average haul-length for goods to:•••wider sourcing of suppliers and expansion of market areas (finding better or cheaper
suppliers)
centralisation of economic activity in order to exploit economies of scale and reduce thenumber of stockholding points
circuitous routing of goods in order to utilise cheaper, more frequent or less congested
services.

In addition, lean production with short lead times has favoured smaller, less frequent deliveries
for some products. Meanwhile, although the concentration of international freight transport
through hub ports and airports lengthens land-based feeder movements, concentration ofnational/regional freight in centralised hub-based distribution systems can improve efficiency
by creating opportunities to use more efficient modes and coordinate (optimise) delivery
operations across suppliers and retailers. Consequently, optimisation with respect to fuel andenvironmental efficiency is complex and challenging.

2.3.2

Chapter scopeThis chapter focuses on T&L operations, which include the storage of goods in distribution
centres (DCs) and other facilities. Energy consumption in DCs makes a small but significant
contribution to the environmental impact of T&L operations, and can be minimised by the
implementation of many of the best practice techniques described in Chapter 2.1 for energy
efficiency in stores. Readers are referred to Chapter 2.1 for best practice in reducing energy
consumption in DCs. Waste management, including disposal and recycling, necessitates T&L
operations. Casino attributes 3.7 % of their operational GHG emissions to waste transport

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Chapter 2(Casino, 2010). This chapter considers how waste management T&L operations may be
integrated into product delivery operations.
Customer transport to and from stores also has a significant environmental impact. IKEA
estimates that 10 % of the lifecycle GHG emissions attributable to their entire productassortment arises from customer transport to and from their stores (IKEA, 2010). Casino
estimate that customer transport adds 38 % to operational GHG emissions (excluding productmanufacture), compared with 12 % for goods transport to stores (Casino, 2010). Rizet et al.,(2008) estimate that customer shopping and delivery accounts for over one third of the lifecycle
energy consumption of a chest of drawers sold in Paris (Figure 2.88). Many factors affectcustomer transport emissions, which can be difficult to attribute to particular products or stores.
Relevant factors such as town planning, public transport infrastructure and pricing and vehicle
emissions are outside the scope of this document. This chapter considers customer transport
emissions where they are relevant to retailer practices with respect to optimising T&L
operations.
Figure 2.89 provides a schematic overview of the main points and routes considered as T&L
operations within this chapter. The following basic steps are typical for most products and large
retailers:•••

transport from the supplier to the distribution centre (DC)storage and preparation of orders at the DC
delivery to the retail outlet.

The organisation of the distribution chain can vary according to the product, the demand and therequired delivery time. For example, some fresh local food produce may be delivered directlyfrom suppliers to retail outlets, whilst other products may be stocked in distribution centres for aperiod of time, with additional incurred costs. Typically, suppliers are responsible for deliveryof their products to the DC (or store if direct), whilst retailers are responsible for deliveries from
DCs to stores. Retailers may manage T&L operations directly, or delegate responsibility to third
party T&L providers. Only 20 % of Carrefour's products are delivered by Carrefour's dedicatedfleet. Nonetheless, all large retailers ultimately coordinate T&L activities for their products.

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231Chapter 2

R

S

S
R

R

Long
Distance
suppliersLong
Distance
suppliers

S

S

S
S

R

DC
R

S

R
W
S
R
W

S

Supplier

R

RetailerW

Waste management centre

Figure 2.89:

R

R
Long
Distance
suppliers

S

Simplified schematic of the main transport routes for retail sector goods and waste

Figure 2.90 indicates what is considered within this chapter, in particular techniques describedin Section 2.3.4. Many products have long and complex value chains (see Section 2.2.5), and it
is important to consider the impact of transport when assessing overall product impacts to
inform sourcing decisions and improvement options (Section 2.2.6). However, transport beyond
primary suppliers (e.g. between primary and secondary suppliers, secondary and tertiary
suppliers, etc) is outside the scope of retailer influence in terms of T&L management, andconsequently is not considered in this chapter (Figure 2.90). There is considerable opportunity
for retailers to optimise T&L operations through integration with primary supplier T&L
operations.
Product lifecycle optimisation (Chapter 2.2)
This chapter

Secondary
suppliers

Suppliers

Distribution
centres

StoresEnd-oflife /Recycling

Sourcing and packaging (T2),
Primary transport mode (T3)
Performance measurement (T1), Distribution network (T4), Route planningand efficient driving (T5), vehicle modification (T6)

Figure 2.90:

Major points within the T&L network considered within the six techniques (T1 toT6) described in this chapter, and in product lifecycle optimisation (chapter 2.2)

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232Chapter 2

In summary, the major T&L routes considered in this technique are:
•
•
•
•
•
•
2.3.3

primary suppliers to retailers (products)
primary suppliers to distribution centres (products)
distribution centres to retailers (products)
retailers to waste facilities (waste)
retailers to distribution centres (waste)
distribution centres to waste facilities (waste).

Drivers of transport and logistics improvement

Annual sustainability reports document a recent and increasing focus by retailers on themeasurement and improvement of transport efficiency and associated carbon footprint. Basedon a case study of transport for the European chemical sector, which is regarded as a leading
sector in terms of transport efficiency, McKinnon and Piecyk (2010) concluded that measuring
and reducing the carbon footprint of transport operations is at an early stage, and that there aremany opportunities to achieve short to medium-term savings. They emphasised the importanceof companies working closely with transport providers.
Realisation of cost-saving opportunities in T&L operations often requires initial investment, anda significant barrier to this is the low profitability of the T&L sector in recent years (Climate
Change Corp, 2008). Conversely, the major driver of this decline in profitability – an increase infuel prices that account for up to 40 % of operating costs – also provides a major incentive for
efficiency improvement in terms of business planning and risk mitigation. Therefore, there isusually a strong medium-term business case for retailers to invest in the T&L infrastructure, andto provide financial support for T&L providers to make these investments in return forcompetitively-priced and stable contract agreements. The drivers for retailers to reduce theenergy consumption and environmental impact of their T&L operations may be summarised as:
•
•
•
•
•

corporate social responsibility;
realising cost-saving opportunities associated with efficient T&L operations;
reducing exposure to energy price volatility (risk management);
realising cost effective carbon footprint reductions;
reducing potential future liabilities associated with carbon pricing.

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2.3.4

Best environmental management practices for improving transportand logistics operations: techniques overview

Background
There are four fundamental factors underpinning the efficiency and environmental impact ofretail goods transport. For one tonne of a given product, these four factors are:•distance travelled•mode of transport used•
vehicle load factor•
vehicle efficiency (within a particular mode).
Each of these fundamental factors is in turn affected by multiple contributory factors. For
example, distance travelled is primarily a function of source location, and therefore requires
integration with other sustainable supply chain consideration (Section 2.2.6.2). However, themode of transport, the structure of the distribution network, and the specific routes taken, can all
have a significant influence on the total distance travelled. In addition, these factors are stronglyinterdependent. For example, the mode of transport used and vehicle load factors are bothcritically dependent on features of the distribution network. Optimising these interdependent
criteria is a complex challenge, and requires a holistic approach. In the first instance, it isessential that retailers collate the data necessary to assess the efficiency and environmental
impact of their T&L operations, including those that are outsourced and those of their suppliers.
Figure 2.91 indicates the different levels of retailer involvement required to control various
factors important to T&L efficiency through key decision points. Some basic steps can be taken
to increase the efficiency of road transport per tkm (from driver training to aerodynamic
modifications). Further steps, requiring additional engagement on the part of retailers (or third
party T&L providers) include increasing vehicle load factors, reducing empty running, andminimising route distances through optimised route planning. More advanced options include
optimisation of the distribution network to accommodate efficient long-distance transportmodes and generate new opportunities for load maximisation and back-hauling – including
through the coordination of transport and logistics requirements with suppliers and otherbusinesses. Finally, a fully integrated approach to transport and logistics considers theconsequences of sourcing decisions and store locations on goods transport and customertransport, respectively (balanced against other sustainability criteria).
1. Basic

2. Intermediate

3. Advanced

Secondaryrouting
distanceModeefficiency
feautures

Load factor

Empty
running

4. Integrated

Primaryrouting
distance
Primarytransportmode

Sourcing

Distribution
network

New store
locationsRouteplanning +telemetrics

Secondarytransport
mode

Important factor
Key decision point

Figure 2.91:

Important factors and decision points relevant to the optimisation of retailtransport and logistics operations, categorised according to level of retailer
engagement required

Best Environmental Management Practice in the Retail Trade Sector234

Chapter 2

Figure 2.92 provides a more detailed overview of the inter-relationships between key factors
determining the efficiency and GHG emissions of road transport - an essential component of thetransport chain for all retailers (Section 2.3.4.4). It includes factors such as total vehicle tkms
travelled, which are determined not just by the average distance and weight of goods
transported, but the average weight of the truck relative to the load (i.e. average truck size, loadfactor, and empty running).

Weight of goods
produced/consumed
Modal split

Similar analyses
for other modes

Average handling factor

Supply chain structure

Weight of goods
transported by road

Road tonnes -lifted

Efficiency of vehicle
routing
Average lenght of haul
Vehicle carrying capacity
by weight/volume

Road tonne -kms
Average load on laden
trips

Vehicle utilisation on
laden trips

Total vehicle -km
Average % empty running

Level of backhaulage

Distribution of vehicle - kms by vehicle size, weight and type
Timing ofdeliveries

Spatialpattern ofdeliveries
Fuel efficiency

Traffic conditions
Fuel consumption

CO2 emissions

Carbon intensity of fuelAggregate
Key parameter
Determinant

Source: McKinnon and Piecyk (2010)
Figure 2.92:

Factors affecting road transport efficiency and CO2 emissions

Front-runner retailers influence 'advanced' T&L factors defined in Figure 2.91. Figure 2.93
proposes a sequence of questions and decisions for particular product groups that represent bestpractice in T&L optimisation, based on a systematic and fully integrated retailer approach(Figure 2.91). Such an approach should consider:••source location (balanced against other sustainability criteria – e.g. using a balanced
score-card approach);transport mode, shifting products to more efficient modes where possible;

Best Environmental Management Practice in the Retail Trade Sector

235

Chapter 2••

distribution network and logistics to minimise vehicle kms and maximise load (including
coordination with suppliers and integration of waste return);
vehicle impact (efficiency and energy source).

Product group

Air freight?

Ocean shipping?
N
Y

Shipping /Intermodal(air-freight labelling)

N

Road?
N

Y
Alternative
source location?

Y
Rail possible?
Y
N

Reduce vehicle
impactFigure 2.93:

Increase loadfactor (Distr. /Logistics)

Reduce distance(Distr. / Logistics)

N

Y
Rail / Intermodal

Flow chart of an integrated (best practice) approach to systematic reduction of theenvironmental impact of transport and logistics operations for a particular
product group

Techniques
Table 2.62 categorises best practice for improving the efficiency of T&L operations into
separate approaches and associated techniques that are described in this chapter. Techniques areordered according to the ideal sequence of best practice actions to systematically minimise theenvironmental impact of T&L operations for a particular product group. Monitoring andreporting the performance of T&L operations (Technique 1 in Table 2.62) is a prerequisite(Approach 1 in Table 2.62) to improving the efficiency of T&L operations. Retailers may theneither pursue a basic operational optimisation approach (Approach 4 in Table 2.62), involving
route planning (Technique 5 in Table 2.62) and vehicle improvement (Technique 6 in Table
2.62), or they may take an integrated approach (Approach 2 in Table 2.62) that includes
sourcing and packaging (Technique 2 in Table 2.62) and modal shifts (Technique 3 in Table
2.62). Strategic planning (Approach 3 in Table 2.62) involves optimisation of the distribution
network (Technique 4 in Table 2.62), representing an advanced level of retailer engagement in
Figure 2.91.

Best Environmental Management Practice in the Retail Trade Sector236

Chapter 2
Table 2.62:

Portfolio of retailer approaches and best practice techniques to improve theefficiency of transport and logistics operations

Approach

1. Prerequisites

2.
Integrated
approachtoproduct
sourcing (seesupplychain
assessment insection 2.2.6.2)

3.
Strategicplanning

Best practicetechnique1.
Greenprocurement
andenvironmental
requirementsfortransport providers
2.
Efficiency
monitoring
andreporting for alltransport
andlogistics operations
3.
Integratetransport efficiency
intosourcing
decisionsandpackaging design

Key components

ExamplesProcurement of certified
transport providers

IKEA, H&M

Requirements for transport
providers
Data collation
KPI reporting
Benchmarking
Regional/local sourcing

5. Optimise the
distribution network

6. Optimised route
planning, use oftelematics
anddriver training

Kingfisher
IKEA
Coop Switz
IKEA

Product / packaging volume
minimisation
Rail

4. Shift towards
more
efficienttransport modes

IKEA

Inland waterways
Shipping
Larger trucks (including
double deck trucks)
Strategic centralised hubs
(integration of efficientmodes)
Consolidated platforms

Coop
Switz/Migros
Carrefour

SectionSection
2.3.4.1,
p. 239Section
2.3.4.2,
p. 245.
Chapter
2.2 andsection
2.3.4.3,
p. 255
Section
2.3.4.4,
p. 258

M&S, B&Q
Coop
Switz/Migros
IKEA

Direct routing

H&M

Back-loading waste
Back-loading supplier to DC
deliveries
GPS route optimisation

Carrefour

Driver training

MigrosSection
2.3.4.5,
p. 273

Sainsbury's
CasinoSection
2.3.4.6,
p. 267GPS cruise control
4. Operational
optimisation

7. Minimise theenvironmental
impact of roadvehiclesthroughpurchasing
decisionsandretrofitmodifications

Night-time deliveries
Aerodynamics
Low rolling resistance tyres
Euro V and efficient engines
CNG/biogas
Mild hybrid

Albert Heijn
M&S
Albert Heijn
Albert Heijn
Colruyt
Albert Heijn

Section
2.3.4.7,
p. 273Low-noise trucks

References•
Blanco, E.E., Craig, A.J., The value of detailed logistics information in carbon footprints,
MIT, Massachusetts, 2009.
•
Carrefour, Sustainable development at Carrefour. Expert Report 2009, Carrefour, France,
2010.
•
Casino, Annual and Sustainable Development Report – 2009, http://www.groupecasino.fr/IMG/pdf/CASINO_RA_EN_09.pdf, 2010.
•
Climate Change Corporation, Strategy: how greener transport can cost less.
http://www.climatechangecorp.com/content.asp?ContentID=5486, 2008.

Best Environmental Management Practice in the Retail Trade Sector

237

Chapter 2

•
•
•
•
•
•
•
•
•

•
•

CN, Greenhouse Gas Calculator Emission Factors. http://www.cn.ca/en/greenhouse-gascalculator-emission-factors.htm, 2010.
Coop
Switzerland,
Coop
Group
Sustainability
Report200,
http://www.coop.ch/pb/site/common/get/documents/system/elements/ueber/zahlen_fakten/_pdf/en/NHB08.pdf, 2009.
Eurostat, Panorama of road transport – 2009 edition, Eurostat, ISBN 978-92-79-111198, 2009.
Eurostat, Statistics in focus 39/2010. Transport of goods by road has stopped decreasingin the second half of 2009, http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF10-039/EN/KS-SF-10-039-EN.PDF, 2010.
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
Lumsden, K., Truck masses and dimensions – Impact on transport efficiency, Chalmers
University, Gothenburg, 2004.
McKinnon, A., 'Benchmarking road freight transport: review of government-sponsoredprogramme'. Benchmarking: An international Journal 16, 2009, pp. 640-656.
McKinnon, A., Piecyk, M., Measuring and managing CO2 emissions of European
chemical transport, CEFIC, 2010.
Rizet, C., Browne, M., Léonardi, J., Allen, J., Cornélis, E., 'Energy efficiency andgreenhouse gas emissions of different supply chains: a comparison of French, UK and
Belgian cases', conference paper presented at European Transport Conference, Leiden,
The Netherlands, 06 - 08 Oct 2008.
Tesco, Tesco PLC Corporate Responsibility Report 2010, http://cr2010.tescoplc.com/,
2010.
WBCSD/WRI, The GHG Protocol: A Corporate Accounting and Reporting Standard.
WBCSD/WRI ISBN 1-56973-568-9, 2004.

Best Environmental Management Practice in the Retail Trade Sector

238

Chapter 2

2.3.4.1

Green procurement and environmental requirements for transport
providers

Description
Small retailers outsource T&L operations to third party providers. Large retailers often have inhouse T&L departments that perform secondary distribution from DCs to stores, but rely on
third party providers for at least some primary distribution operations (e.g. ocean shipping).
Therefore, green procurement of T&L operations is the primary technique for T&L
improvement applicable to SMEs. For large retailers, green procurement and specificrequirements are an integral component of improving T&L operations, and a prerequisite forbest environmental management practice techniques subsequently referred to in this chapter.
Large retailers may also outsource secondary distribution operations to third party T&L
providers. From an environmental improvement perspective, there are positive and negative
effects of extensive T&L outsourcing for large retailers (Table 2.63). Essentially, outsourcing
can ensure that T&L operations are managed by specialist experts with a strong incentive tomaximise efficiency and the potential to coordinate efficient distribution across multiple clients.
However, outsourced T&L providers may not have a remit for, and strategic overview of, allretailer T&L operations, and do not have a remit to identify integrated sourcing and transport
solutions. In addition, retailers may have stronger CSR and marketing incentives to implement
longer payment environmental improvement options. The balance of these aspects is heavily
dependent on specific circumstances, including features of supply networks for particularretailers, and the T&L provider client base.

Table 2.63:

Positive and negative aspects of retailers using a third party T&L provider, versus
in-house T&L services

Positive aspects

Negative aspects/limitations

Specialist management expertise in T&L
operations
Possible coordination of distribution across clientsto realise optimised loading and back-hauling
Strong cost incentive to optimise operational
efficiency
Efficient providers of low-volume T&L
requirements (small retailers)

May not be fully responsible for, and have astrategic overview of, all retailer T&L operations
May not have sufficient client density to optimise
loading and back-hauling
CSR incentives may be weaker than for retailers(lower public profile)
Identification and realisation of integrated transportand sourcing solutions is outside remit

This technique describes best practice wherever retailers use outsourced providers. Essentially,retailers should use third party certification or improvement programmes, contract requirements
and selection criteria to ensure that purchased T&L operations:•••are environmentally efficient;can be incorporated into retail environmental monitoring and reporting systems;
follow best environmental management practice techniques outlined in this chapter.

The development of environmentally sound product source locations (Section 2.3.4.3), theselection of efficient transport modes (Section 2.3.4.4) and the development or selection ofefficient distribution networks (Section 2.3.4.5) either influence or involve green procurement
decisions wherever third party T&L providers are involved. This technique is therefore crosscutting for many retailers.
There are few widely applicable third party standards specifically representing goodenvironmental performance for T&L providers. However, there are some general and specificthird-party-verified reporting standards applicable to T&L providers, some of which also
Best Environmental Management Practice in the Retail Trade Sector239

Chapter 2

require a basic level of environmental management. With respect to general environmentrelated standards, formal environmental management systems such as ISO 14001 and EMAS
may be required from T&L suppliers. Meanwhile, three examples of third party (primarily
reporting) standards specific to T&L operations, and used by retailers, are:•••

Clean Shipping Project
European Retail Round Table (ERRT) Way Ahead Programme
US Smartway Programme.

The Clean Shipping project (http://www.cleanshippingproject.se/index.html) was initiated in
Sweden, and is aimed at improving the environmental performance of the shipping industry byrequiring shipping providers to report on their environmental performance across 20 criteria(including chemical, water and fuel use, and waste control, CO2, NOx, SOx and PM emissions),
and to achieve basic minimum standards. The primary objective of the project is to empowerpurchasers of T&L operations, including retailers, to select providers with better environmental
performance.
The ERRT Way Ahead Programme http://www.way-ahead.org/
Environmental Performance Survey referred to in Case study 2.12.

evolvedfrom theThe primary objective of this programme is to facilitate information exchange between transport
providers and retailers (or other stakeholders). It is based on a standard questionnaire fortransport providers which aims to identify implementation of various management options
relevant to environment and safety. These include:
•
•
•
•
•
•
•
•
•
•

extensiveness and frequency of driver training
driver-level fuel consumption and reward systempercentage of alternative fuel used
percentage of fleet using an alternative techniquedetails of speed limit policy and control system
details of idling policy and control systempercentage fleet using low-rolling-resistance tyres
details of tyre pressure monitoring systemage distribution of trucks
environmental management system implementation level.

The Smartway Programme (http://www.epa.gov/smartwaylogistics/) is run by the US
Environmental Protection Agency, and requires transport providers to report emissions data on a
yearly basis, in addition to complying with environmental and fuel efficiency targets.
Achieved environmental benefits
Reporting on environmental performance and implementation of environmental management
practices encourages third party T&L providers to implement the improvement options, andrealise associated environmental benefits, described throughout this chapter. In particular, thistechnique can encourage T&L providers to:••••use cleaner (lower-sulphur content) shipping fuels;
use more efficient and cleaner (e.g. EURO V) trucks;
use alternatively-powered (biogas or hybrid) trucks;
shift towards more efficient transport modes.

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Chapter 2

Appropriate environmental indicator
The most appropriate indicator of retail environmental performance with respect toenvironmental (reporting) requirements for third party T&L providers is:•

the percentage of transport provided by third party T&L providers that complies withspecified standards, requirements, or best practice techniques outlined in this document.

Table 2.64 provides a summary of environmental reporting requirements across various
suppliers providing third party T&L services to two leading retailers.

Table 2.64:

Performance of two leading retailers with respect to environmental requirements
for third party T&L providers

Retailer (year)

Clean Shipping
project reporting

Way
Ahead
reporting

Smartwayregistered

Retailer defined

H&M (2009)
IKEA (2009)

67 %
100 %

NA
100 %

70 % (US only)
100 % (US only)

NA
100 %

Source: From data in H&M (2010) and IKEA (2010).

Transport accounted for 51 % of H&M's direct carbon footprint in 2009 (H&M, 2010). H&M
has targets for all US suppliers to be Smartway certified, and all shipping providers to be signed
up to the Clean Shipping project, in 2010.
A proposed benchmark of excellence is:•

100 % of T&L providers comply with either: (i) third-party-verified environment-related
standards; (ii) specific environmental requirements; (iii) best environmental management
techniques contained in this document.

Cross-media effects
There are no significant cross-media effects associated with this technique. Requirements madeof third party T&L providers should relate to the major environmental pressures associated with
T&L operations.
Operational data
For large retailers who outsource parts of their T&L operations, green procurement of these
operations is a cross-cutting technique that should be considered within subsequent techniques
described in this chapter. Requiring T&L providers to report basic environmental performancedata is an integral part of T&L monitoring and reporting best practice described in Section
2.3.4.2. Shifting towards more efficient distribution networks (Section 2.3.4.5) andenvironmentally preferable transport modes (Section 2.3.4.4) often necessitates the selection of
better-performing T&L providers (e.g. train operators in place of lorry operators, shipping
operators in place of air freight operators), and may be regarded as green procurement. For
example, Migros procures sufficient rail transport from the Swiss rail company SBB tonecessitate full-time operation of 400 rail wagons (Table 2.76).
IKEA provides an example of best practice with respect to green procurement and specificenvironmental requirements for third party T&L providers (Case study 2.12).

Best Environmental Management Practice in the Retail Trade Sector

241Chapter 2
Case study 2.12: IKEA requirements for third party T&L providers
IKEA has 278 suppliers of transport services (supplymanagement.com, 2010). All these T&L providers
must comply with relevant requirements set out in IKEA's IWAY code of conduct for suppliers (see Casestudy 2.6 in Section 2.2.6.5), but also with industry-related requirements specified in a transport-specificsupplement to IWAY. Below is a summary of the key points (IKEA, 2010; supply management.com,
2010).
Key requirements stipulated by IKEA for T&L providers include:

•
•
•
•
•
•
•

trucks must be 10 years or younger (5 years for vehicles less than 3.5 tonnes);
all T&L providers must complete/update the Environmental Performance Survey (EPS) from the
ERRT Way Ahead Programme annually;
T&L providers in Europe must achieve a minimum EPS score of at least 100;
T&L providers in Russia & Asia Pacific must achieve an EPS score of at least 50;
T&L providers in North America must be a registered to the EPA Smartway programme and havea score of at least 1.0;
all T&L providers must have practical plans for reducing CO2 emissions, including annual targets;all shipping providers must comply with the environmental performance reporting requirements of
the Clean Shipping Project;

Applicability
This technique is applicable to all retailers. It is the primary technique for influencing T&L
environmental performance for retailers who rely entirely on third party T&L providers (e.g.
most small retailers).
Economics
As demonstrated in subsequent sections, many techniques that reduce the environmental impact
of T&L operations are associated with improved efficiency and reduced costs. Therefore, moreenvironmentally-sound third party T&L providers, and those complying with specificenvironmental requirements, do not necessarily provide a more expensive service. Where there
is a price premium associated with better performers, this should be balanced against thepositive marketing effect of a good (environmentally responsible) reputation.
Where retailers work with third party T&L providers and suppliers to implement improvement
options, for example by providing finance for investment, economic benefits associated withefficiency gains can be reflected in annually-updated contracts (e.g. Case study 2.16 in Section
2.3.4.5).
Driving forces for implementation
Retailers require third party T&L providers to comply with improved levels of environmental
management and performance in order to:•••

fulfil CSR responsibilities;
reduce their overall (reported) environmental burden;
reduce the environmental burden of particular product groups.

In addition, retailers require third party T&L providers to comply with reporting requirements inorder to:•••fulfil organisation-level CSR reporting (e.g. operation carbon footprint);
efficiently target environmental performance improvement options;calculate product environmental footprints.

Best Environmental Management Practice in the Retail Trade Sector242

Chapter 2

Reference retailers
H&M, IKEA.
Reference literature•
The Clean Shipping project homepage, http://www.cleanshippingproject.se/index.html,
2010.
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
The Smartway Programme homepage, http://www.epa.gov/smartwaylogistics/, 2010.
•
Supplymanagement.com,
IKEA
goes
green
on
transport
buying,http://www.supplymanagement.com/news/2010/ikea-goes-green-on-transport-buying/,
2011.
•
The Way Ahead Programme homepage, http://www.way-ahead.org/, 2011.

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243Chapter 2

2.3.4.2

Efficiency monitoring and reporting for all transport and logistic
operations

Description
In order to improve the environmental efficiency of T&L operations, it is first necessary todefine, measure and benchmark relevant indicators. Monitoring energy consumption andassociated CO2 emissions is integral to efficiency optimisation and to the reporting of key
environmental performance indicators in CSR reports. The major objectives of T&L monitoring
are to:1. enable calculation of total environmental burden (e.g. t CO2 eq. yr-1) attributable to retailer
operations;
2. calculate product environmental footprints (e.g. PCF);
3. benchmark and improve the efficiency of T&L operations.
In the first instance, these objectives can be achieved by applying generic energy use andemission factors to various stages of the transport chain (e.g. average data for different modes oftransport: Table 2.74 and Figure 2.95 in Section 2.3.4.4). Table 2.65 refers to the basic datarequired to begin assessing T&L performance (specific performance indicators are defined
subsequently in Table 2.68). Objective 1 can be realised with only basic data, for example total
fuel use across T&L operations. This may be used to identify absolute performance trends overa number of years, but does not provide insight into efficiency and improvement options.
Objective 2 may be realised using basic data such as average transport distance by different
modes for particular product groups, and default emission factors. Where T&L operations areoutsourced, retailers may need to establish specific reporting requirements (Section 2.3.4.1) inorder to obtain the data necessary to realise Objectives 1 and 2 above.
To effectively realise objective 3, and enable the identification of improvement options, detailed
information on the actual performance of T&L chains is required. For a truck fleet, this would
include the vehicle size distribution, average loading factors for different sizes, distribution ofEURO emission standard compliance, etc. To compare the efficiency of alternative modes,
vehicle sizes or loading rates, performance must be expressed in units normalised for distancetravelled by weight/volume (e.g. per tkm). To compare the performance of alternative sourcing
options, distribution network options, or routing options, performance must be expressed inrelation to the final weight or volume delivered (e.g. per t or m3 delivered). This latter measureindicates the absolute performance of T&L operations, and can be used to reflect the cumulative
effect of all techniques described in this chapter.

Table 2.65:

Key input data for monitoring T&L operations
Description

Ideal units

Punctuality
deliveryinReliability of
preparations

the

Total
fuel
consumption
Transport CO2
Transport by modeEUROstandard
complianceTransport distance byproduct
Volume delivered

Alternative units% on-time deliveries%deliveredacceptableconditionin

MJ primary energy

Litres (diesel)t CO2
tkm by mode

km by mode

% of truck fleet
km (average)
m3 or tonnes

Pallets(*)(*) 120 × 80 cm pallet.

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Chapter 2

The range of environmental pressures associated with T&L operations are presented in Section
2.3.1 and Section 2.3.4.4. Ultimately, many of these pressures are correlated with energy
consumption, and can be directly calculated from data on the type and quantity of fuelconsumed (e.g. CO2 and SOx emissions). Fuel consumption data should be readily available to
T&L managers (either within retail organisations, within T&L providers, or within supplierorganisations), and can easily be normalised according to the quantity (tonnes, m3, pallets) ofgoods delivered and distance transported. Therefore, the energy and CO2 intensity of goods
transported are the two primary indicators of environmental performance recommended forretailers in this section.
Case study 2.13 provides an example of T&L monitoring that addresses CSR reporting
requirements, and enables the identification of specific T&L performance in order to trackefficiency improvements. Some front-runner retailers such as Migros also report on non-CO2
emissions such as NOx and PM from their dedicated fleets, and total distance travelled by rail
(Coop Switzerland, 2010; Migros, 2010). Front-runner retailers including H&M and IKEA
require third party transport providers to participate in standardised reporting programmes (seeSection 2.3.4.1 and Case study 2.12)
The UN Global Reporting Initiative (GRI) has produced a pilot document (UN, 2006) on
reporting for the T&L sector that includes sector-specific indicators that are additional tostandard GR3 reporting guidelines. Some of these indicators are listed in Table 2.65, and arelargely based on descriptions of actions to improve T&L performance or mitigate against
environmental impacts. Retailers are referred to the UN GRI reporting guidelines, sometechnical aspects of which are included under 'Operational data', below. This technique focuseson the technical aspects of best practice for retailer monitoring and reporting of T&L
environmental performance.

Table 2.66:

Indicators proposed for the transport and logistics sector in the UN GRI pilot
sector supplement

Aspects

New indicators

Fleet
Composition

Breakdown of fleet composition. (See Annex 1 for details)

PolicyEnergyUrban
pollution

Congestion
Noise/vibration
Transport
infrastructuredevelopment

air

Description of policies and programmes on the management of environmental
impacts, including:•initiatives on sustainable transportation (e.g. hybrid vehicles)•
modal shift•route planning.
Description of initiatives to use renewable energy sources and to increase energy
efficiency. In describing initiatives to increase energy efficiency, reportingorganisations should explain how they are benchmarking their energy efficiency
to assess improvements.
Description of initiatives to control urban air emissions in relation to roadtransport (e.g. use of alternative fuels, frequency of vehicle maintenance, drivingstyles, etc.).
Description of policies and programmes implemented to manage the impacts oftraffic congestion (e.g. promoting off-peak distribution, new inner city transportmodes, percentage of delivery by modes of alternative transportation). Note:‘Impact’ refers to environmental, economic, and social dimensions.
Description of policies and programmes for noise management/abatement.
Description of environmental impacts of the reporting organisation’s majortransportation infrastructure assets (e.g. railways) and real estate. Report theresults of environmental impact assessments.

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Chapter 2

Achieved environmental benefits
A comprehensive monitoring and reporting system for goods-transport will enable retailers to
identify, and improve the efficiency of:
•
•
•
•
•

product sourcing (section 2.3.4.3)
modal splits (section 2.3.4.4)
distribution network (section 2.3.4.5)
route planning (section 2.3.4.6)
vehicle design and modification (section 2.3.4.7).

Improved efficiency in each of these areas will translate into reduced environmental pressures,as described in the subsequent sections. For example, measuring the specific efficiency ofKingfisher's dedicated transport fleet is a prerequisite for the ongoing efficiency improvements
targeted for and achieved by that fleet (Case study 2.13). Detailed monitoring of truck loading
efficiency at different stages of transport (IKEA, 2010) has informed the optimisation of
packaging (Case study 2.15 in Section 2.3.4.3) and of the distribution network according to the
supplier cluster concept. (Case study 2.16 in Section 2.3.4.5). Some examples of specific T&L
performance improvements reported by retailers are included in Table 2.67.

Table 2.67:

Some examples of reported environmental performance improvement across retailT&L operations

Retailer
H&M
IKEA
Migros
M&S
Sainsbury's
Tesco

Measurement unit

Performance improvement

kg CO2/m3 delivered

12.4 % reduction 2006–2009l diesel/store per month

22 % reduction 2006–2009

Appropriate environmental indicators
Absolute T&L impact, expressed as total fuel use or tonnes CO2 emitted by all T&L operations,is a key component of absolute business impact that should be used as a sustainability indicatoralongside business performance indicators to comply with transparency requirements in annual
reports. It should be interpreted in the context of business performance, and does not necessarilyreflect the efficiency of T&L operations.
A wide range of indicators can be used to identify specific aspects of T&L performance,
following collation of basic data specified in Table 2.65, and preferably additional data.
Selecting the most appropriate indicators depends on the purpose of the monitoring and/or
reporting. Ultimately, the environmental performance of T&L operations is measured by
metrics such as kg CO2 per tonne or m3 product delivered (Table 2.69). However, a number ofimportant efficiency indicators may be used by retailers to identify specific aspects ofperformance that could be improved, such as load factors and routing distances (Table 2.68).
IKEA (2010) reported filling rates of 63.1 % for trucks moving between suppliers andwarehouses, and 59.8 % for trucks moving between warehouses and stores.

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Chapter 2
Table 2.68:

Key efficiency (specific performance) indicators for T&L operations
Description

Units% volume capacity utilised% weight capacity utilised
MJ/tkmMJ/m3.km
MJ/pallet.km
CO2 eq./tkm
CO2 eq./m3.km
CO2 eq./pallet.km

Load factor

Energy intensity

CO2 intensity
Volume-weighted
routing distance

Table 2.69:

averagekm

Final environmental performance indicators for T&L operations
Units
kg CO2 eq./t
kg CO2 eq./m3
kg CO2 eq./palletkg CO2 eq./case

Examples
24 kg (Kesko)
7.8 (Carrefour)
0.0122 (Sainsbury's)
0.0146 (Tesco)

Variations of the indicators specified Table 2.68 and Table 2.69 may be used for specificpurposes. M&S measures specific fuel consumption of their food delivery fleet relative to thetotal number of stores serviced (each store receives at least one delivery per day) (M&S, 2010).
This is a valid measure of final environmental performance for the purposes of identifying
trends, and indicates that the environmental performance of M&S' T&L operations have
improved by 22 % between 2006/7 and 2009/10 (from 2 556 to 1 991 l per store per month).
However, such indicators do not allow for an accurate comparison across retailers, and should
not substitute indicators proposed in Table 2.68 and Table 2.69.
There are two proposed benchmarks of excellence for this technique:•for 100 % T&L operations between first-tier suppliers, retail stores and waste
management facilities, including those performed by third party transport providers, thefollowing indicators are reported:
percentage transport by different modes
kg CO2 eq. per m3 or per pallet delivered•

for all in-house T&L operations between first-tier suppliers, retail stores and waste
management facilities (section 2.3.4.1), the following indicators are reported:
truck load factor (% weight or volume capacity)
kg CO2 eq. per tkm.

Cross-media effects
Energy consumption and CO2 emissions correlate strongly with overall environmental pressure
from transport operations, but may deviate in some instances. In particular, heavy fuel oil usedin shipping results in high SOx and NOx emissions relative to CO2 emissions (Figure 2.95 in
Section 2.3.4.3). Optimisation of retailer T&L operations should account for any indirect effects
on secondary transport providers, product sourcing, and customer travel.

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Operational data
In terms of appropriate units, tkm is an indicator widely used in statistical publications toconvey T&L efficiency, but is rarely reported by retailers. Retail sustainability reports usuallyrefer to final T&L performance in terms of fuel consumption or CO2 emitted per m3 (IKEA), percase (Tesco), or per item (Inditex, M&S) delivered. McKinnon (2009) found that 'wooden
pallets' or 'roll cages' were the units commonly used by UK companies participating in atransport benchmarking study. Many retail shipments are volume-limited rather than weightlimited (Lumsden, 2004), and measures to improve load efficiency (e.g. dense packaging ofproducts) will not be reflected positively by volume-normalised reporting. To improvetransparency and comparability within the constraints of data availability, it is recommended
that transport efficiency be assessed in relation to tkm transported where possible, and final
performance in relation to volume (m3 or pallet or case) delivered.
Where shipping units are reported as 'Twenty-foot Equivalent Units' (TEU), they can beconverted into tkm based on the factors proposed by IFEU (2010):••

light goods: 6 tonnes per TEU
medium-density goods: 10.5 tonnes per TEU.

The UN GRI pilot document for the T&L sector (UN, 2006) contains a number of specificrecommendations for T&L energy reporting (in addition to standard GR3 reporting guidelines).
Energy consumption should be reported:
•
•
•
•
•

in joules
separately for individual mobile (e.g. air, sea, road, rail) and non-mobile (e.g. office,warehouse) sources
according to source
normalised using units such as cubic-metre-km, tonne-km, delivery item, freight unit (e.g.
TEU-km)include all energy used to produce and deliver energy products purchased by the reportingorganisation (including indirect and electricity-generation emissions).

Table 2.70 includes some conversion factors relevant for the calculation of T&L energy use.
Emissions of CO2 can be calculated from standard emission factors applicable to different fueltypes, assuming complete oxidation during combustion (Table 2.70). Non-CO2 emissions areheavily dependent on the specific combustion technology, conditions, and abatement
technology, so cannot be calculated from standard default emission factors applied to fuel type.
Where operating conditions are specified more precisely, non-CO2 emissions may be estimatedfrom emission factors published by various sources (e.g. IPCC, 2006; IFEU, 2010; Tremove,2010).
Table 2.70:

Some characteristics of major transport fuels, including direct CO2 emissions fromcombustion

kg / lEnergycontent
MJ / lkg / lGasoline

0.72

32.1

2.24

Diesel, MDO, MGO

0.83

36.0

2.63

Biodiesel

0.83

38.1

2.79

Kerosene

0.80

35.3

2.52

Heavy fuel oil

0.98

40.4

3.07

Fuel

Density

CO2

NB: MDO = Medium Density Oil; MGO = Medium Grade Oil
Source: IPCC (2006) and IFEU (2010)

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Chapter 2

When comparing alternative fuel options, and for completeness of reporting, indirect emissions
associated with fuel supply chains should also be accounted for (Table 2.71). For example,
gasoline combustion is associated with low direct emissions of SOx, but high indirect SOx
emissions attributable to processing, compared with diesel – based on IFEU data presented inTable 2.71. Where transport is powered by electricity, emissions can be calculated fromcountry-specific electricity emission factors.

Table 2.71:

Indirect emissions arising during the extraction, processing and transport ofdifferent fuels, expressed in relation to one kg of fuel

Fuel

Efficiency*

CO2

NOx

SO2

NMVOC

PM

kg /l

g /l

g/l

g/l

g/l

Gasoline

75 %0.4824

1.52

4.18

1.52

0.21

Diesel, MDO, MGO

78 %

0.390

1.49

3.64

1.26

0.19

Biodiesel

60 %

0.739

5.25

1.36

0.95

0.60

Kerosene

79 %

0.36

1.41

3.44

1.21

0.18

Heavy fuel oil

79 %

0.392

1.65

3.91

1.44

0.21

(*) Final energy related to primary energy.
Source: IFEU (2010), based on Ecoinvent (2009).

Blanco and Craig (2009) found that transport emissions calculated from actual data were, on
average, 27 % higher than emissions predicted from standard emission factors, for varioustransport chains. To improve the accuracy of energy consumption or energy efficiency
calculations, and to ensure that monitoring data both incentivise and reflect routing optimisation(Technique 4 in Section 2.3.4.5 and Technique 5 in Section 2.3.4.6), it is important thattransport distance be accurately accounted for.
Shipping distances are often 10–21 % greater than direct port-to-port distances, owing tomultiple port-calls (Blanco and Craig, 2009). Air freight distances are at least 4 % greater thandirect airport-to-airport distances. To calculate typical air transport distances, IFEU (2010)
proposes the following formula based on the shortest distance between two points, the Great
Circle Distance (GCD):
Real flight distance = (GCD - 185.2 km) x 1.04 + 185.2 km + 60 km
In addition, GHG emissions from air transport should be multiplied by the appropriate Radiative
Forcing Index (RFI) factor, depending on the altitude, in order to more fully reflect their climate
impact (Table 2.72).
Meanwhile, road and rail transport distances are highly dependent on the road and rail networkin relation to the points of origin/destination. In the EcotransIT model, country-specifictopography is considered in energy consumption and emissions factors for heavy goods vehicles(IFEU, 2010), with deviations of 5 % lower (relative to European average) for 'flat countries'(Denmark, Netherlands and Sweden) and 5 % higher for 'mountainous countries' (Switzerland
and Austria). The effects of factors such as those listed above highlight the need for activityspecific data, and can be particularly important when calculating the net potential benefit oftransport of modal shifts (Section 2.3.4.3).

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Chapter 2
Table 2.72:

Radiative Forcing Index factor applied to aircraft GHG emissions, depending on
altitude (flight length)
Flight distance
(km)
500
750
1000
2000
4000
10000

Flight % above
9000m altitude
0%
50 %
72 %
85 %
93 %
97 %

Average RFI
factor
1.00
1.81
2.18
2.53
2.73
2.87

Source: IFEU (2010).

Kingfisher reporting on T&L operations, to fulfil CSR reporting and efficiency improvement
objectives, is detailed in Case study 2.13 as an example.

Best Environmental Management Practice in the Retail Trade Sector

251Chapter 2
Case study 2.13: Kingfisher reporting of T&L emissions from own fleet and T&L providers for
CSR and performance improvement purposes
CSR reporting
Kingfisher reports on their corporate carbon footprint according to GHG Protocol guidelines. Figure 2.94 displays
total GHG emissions presented in Kingfisher's 2010 Sustainability Report (Kingfisher, 2010). In addition to direct(Scope 1) GHG emissions calculated from fuel use within their dedicated fleets (see below), Kingfisher include
estimates of indirect (Scope 3) emissions associated with their operations based on external haulage data collectedfrom 88 % (by turnover) of T&L provider companies. Accounting for both direct and indirect (outsourced) GHG
emissions ensures a complete overview of absolute T&L impact, and reduces the risk that actions taken to improve
the performance of dedicated fleets lead to the displacement (outsourcing) of emissions to third party T&L providers.
160
140

Scope 1: Haluage own

Scope 1: Home deliveries

Scope 3: Haulage external

Scope 3: Import haulage

kt CO2 eq. / yr

120
100
80
60
40
20
0
2005/06

Figure 2.94:

2006/07

2007/08

2008/09

2009/10

Thousand tonnes CO2 eq. from different parts of Kingfisher's T&L operations,classified as Scope 1 (direct) and Scope 3 (indirect) according to GHG Protocol
guidelines

T&L performance reporting
In 2010, three major Kingfisher companies had dedicated fleets. These accounted for 100 % of company store
deliveries (Screwfix), 70 % of company store deliveries (B&Q) and 25 % of company store deliveries (Castorama).
Table 2.73 presents a summary of specific performance for Kingfisher's entire dedicated fleet, based on data
presented in their 2010 Sustainability Report (Kingfisher, 2010). Data presented in Table 2.73 include specific fuelconsumption indicators (km/l and l/m3 delivered) that can be used to monitor and benchmark the efficiency ofKingfisher's dedicated delivery fleet. It is notable that vehicle fuel efficiency (km/l) remained relatively constantwhilst loading efficiency varied considerably, and declined overall, between 2005 and 2010. Identifying the cause ofthis divergence to inform corrective action requires information on the average load factor or average distancetravelled (Table 2.68). These data are not published in Kingfisher's 2010 Sustainability Report. However, based on
efficiency indicators in Table 2.73, B&Q have a target to reduce specific fuel consumption from their dedicated fleet
by 10 % relative to 2007/8 by 2012/13. In 2010, a 6 % reduction relative to 2007/8 had been achieved.

Table 2.73:

Kingfisher reporting of parameters relevant to the environmental performance of
their dedicated fleet
2005/06

2006/07

2007/08

2008/09

2009/10

Diesel (thousand litres)

13 36418 01019 96517 33614 956

CO2 from diesel (thousand tonnes)

36

48

53

46

40

Distance travelled (thousand km)

43 48356 41164 55956 35348 293

Volume delivered (thousand m )

3 801

4 445

4 594

4 063

3 641

Fuel efficiency (km/l)

3.25

3.13

3.23

3.25

3.23

Loading efficiency (l/m delivered)

3.52

4.05

4.35

4.27

4.11

Vehicle number

294

273

305

266

288

Vehicles EURO IV or higher

0%

0%

54 %

93 %

100 %

3

3

Source: Kingfisher (2010).

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Chapter 2

Applicability
Any retailer can estimate the environmental impact of their T&L operations based on averageenergy consumption and emission factors, at least based on assumptions about third party T&L
routing.
Larger retailers can calculate more detailed energy and environmental performance metrics for
T&L operations, based on data collation systems for in-house operations and reporting
requirements imposed on third party T&L providers and suppliers.
Economics
The costs of implementing a monitoring and reporting system for T&L operations are notprecisely known, but are expected to be small compared with the potential economic benefits ofmore efficient T&L operations. This applies to both retailers and third party providers.
Driving force for implementation
For retailers and third party T&L providers, the monitoring and reporting of environmentrelated parameters associated with operational performance is performed in order to:•••

fulfil CSR responsibilities;
identify options for efficiency improvements;
reduce their overall (reported) environmental burden.

In addition, the following driving forces are important for retailers:•
reduce the environmental burden of particular product groups;•
public image and marketing.
Reference retailers
Coop Switzerland, H&M, Kingfisher, Migros.
Reference literature•
Blancoe, E.E., Craig, A.J., The value of detailed logistics information in carbon
footprints, MIT, Massachachusetts, 2009.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
IFEU-Heidelberg-Öko-Institute, EcoTransit. Ecological transport tool for worldwide
transits, http://www.ecotransit.org/download/ecotransit_background_report.pdf, 2010.
•
IFEU, EcotransIT World: Ecological Transport Information for Worldwide Transports.
Methodology and Data, http://www.hupac.com/PDF/Download/IFEU.pdf, 2010.
•
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
•
IPPC, 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Volume 2,
Energy, http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html, 2006.
•
Kingfisher
corporate
responsibility
website,http://www.kingfisher.com/responsibility/index.asp?pageid=61Accessed, 2010.
•
Lumsden, K., Truck masses and dimensions – Impact on transport efficiency, Chalmers
University, Gothenburg, 2004.
•
McKinnon, A., 'Benchmarking road freight transport: review of government-sponsoredprogramme'. Benchmarking: An international Journal 16, 2009, pp. 640-656.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
M&S, How we do business report 2010. Doing the right thing,
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010.
Best Environmental Management Practice in the Retail Trade Sector

253

Chapter 2••

Tremove homepage, http://www.tremove.org/, 2010.
UN, GRI Logistics and Transportation Sector Supplement. Pilot Version 1.0. GRI,
Amsterdam, 2006.

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Chapter 2

2.3.4.3

Integrate transport
packaging design

efficiency

intosourcing

decisionsandDescription
Transport is an important consideration within sustainable sourcing decisions. Section 2.2.6 andTechnique 2 (Section 2.2.6.2) in Chapter 2.2 describe how transport can make a substantial
contribution to the lifecycle environmental impacts of particular products. Section 2.2.5.9
highlights how air-freight can lead to near ten-fold increase in the carbon footprint of asparagus
flown from Peru to Switzerland, while Section 2.2.5.8 shows that cane sugar shipped from
Paraguay has a considerably lower carbon footprint than sugar produced from sugar beet grown
in Switzerland. Similarly, a UK study showed that, outside the summer growing season,
tomatoes imported from Spain have lower lifecycle energy requirements than tomatoes grownin heated greenhouses in the UK (McKinnon and Piecyk, 2009). In the latter two examples,
minimisation of transport distance and associated environmental impact conflicts with
optimisation of lifecycle environmental performance. Consequently, simple metrics such as'food miles' (kilometres travelled by that food) are not necessarily a reliable indicator ofsustainability (AEA, 2005).
Reducing T&L environmental impact through sourcing decisions for individual product groups
should therefore be informed by fully integrated assessment of all product impacts, as describedin Technique 2 in Section 2.2.6.2. Readers are referred to Technique 2 in Section 2.2.6.2 andCase study 2.14 for the sourcing aspect of this technique. A number of retailers are promoting
seasonal and locally-grown produce, which can reduce both T&L and overall lifecycle impact
where it avoids long-distance transport and does not necessitate use of heated greenhouses. In
addition to Coop Switzerland (Case study 2.14), M&S are sourcing more tender stem broccoli
and sprouts from Morocco instead of South Africa and Kenya and are working to extend the UK
growing season for a number of fruits and vegetables.

Case study 2.14: Coop Switzerland's integration of T&L impacts into product assessment andsourcing
Assessment and improvement
Coop Switzerland assessed all air freighted imports to identify opportunities for air freight reduction. The
greatest potential for reductions was found to be in white and green asparagus sourced overseas.
Consequently, Coop improved the efficiency of T&L operations and control of refrigeration so that thepercentage of white asparagus transported by ship and truck increased from 50 % in 2007 to 100 % in2009.
Fully integrated sourcing considerations
Quality considerations for green asparagus prevent long-distance ship transport. Therefore, in 2009, Coopceased promotion (through special offers) of green asparagus air freighted from Peru, Mexico andCalifornia. This step alone reduces the quantity of air freighted green asparagus by 400 tonnes per year,
saving 7 200 t CO2 eq. per year. Meanwhile, Coop is working to source green asparagus from new
suppliers being established in Morocco in order to avoid the need to air freight green asparagus in the
future.
Widespread transport reduction
Beyond the case of asparagus, Coop Switzerland is constantly expanding its range of seasonal andregional fruits and vegetables through sourcing and promotion actions. The entire Coop Naturaplan range
is subject to the strict Bio Suisse guidelines, which permit a product to be imported only if it is notavailable in Switzerland in sufficient quantity or adequate quality (Section 2.2.6.8). Meanwhile, Coop's
smaller 'organic – fresh from the region' label includes products sourced from nine different regions anddelivered by suppliers directly to Coop’s regional distribution centres. Coop applies a strict definition toensure that all or most of such products originate from within the region: 100 % for a single raw material
product and 90 % for compound products. Where production quantities are small, Coop sells the regionalorganic specialities locally – sometimes in as few as four or five points of sale.

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Chapter 2

The remainder of this section elaborates on the packaging improvements that can be made byretailers to improve T&L efficiency. A large proportion of retail transport is limited by volume
rather than weight. Lumsden (2004) presents data on general cargo transport in Europe, showingthat long-distance trucks are, on average:•••

92 % loaded according to number of pallets
82 % loaded by volume
57 % loaded by weight.

Packaging changes can optimise the shape and overall density of packaged products, thus
enabling a greater mass of product to be loaded into transport containers/vehicles. This
technique is best described by the example of IKEA, a front-runner retailer in maximisingproduct density through both design and packaging (Case study 2.15).

Case study 2.15:

IKEA packaging to maximise load density

IKEA approach
IKEA regard smart packaging as the best way to maximise transport efficiency and reduce
environmental impact (IKEA, 2010). Products are designed to be flat-packed and to fit exactly onto
standard transport pallets. In 2009, IKEA's T&L CO2 emissions per m3 product delivered were 12.4 %lower than in 2006 (Table 2.67 in Section 2.3.4.2).
Tea light candle example
IKEA held an 'air hunting competition' that encouraged employees to identify air space contained in
product packaging that could be removed to increase product density and improve transport efficiency(Bestlog, 2010). One product identified from this exercise was the Glimma tea candle that was
packaged loosely in bags containing 100 candles.
IKEA subsequently achieved a 30 % reduction in packaging volume for transport by replacing thebags of loose candles with packs of 5 layers (each 4 × 5 candles) stacked between separating boards.
Now, each transport pallet can be loaded with 360 packs instead of the original 250, leading to a
reduction in international pallet distribution from 60 000 to 42 000 per year. In addition, the new
packaging requires less shelf space and reduces handling costs.
Further optimisation
A 40 ft container fully loaded with pallets of 360 packs would weigh 22 tonnes, and would exceed theweight limit for some vehicle combinations in some European countries. Therefore, IKEA had tofurther modify T&L operations for tea light candles. These candles are now transported alongside
lighter products such as pillows and mattresses in balanced loads. This is achieved through IKEA's
cluster supply network (Case study 2.16 in Section 2.3.4.5).

Achieved environmental benefits
Avoiding air freight and reducing transport distances can considerably reduce the environmental
impact of T&L activities, and can considerably reduce the overall lifecycle environmental
impact of products that can be efficiently produced closer to the point of sale. The specificglobal warming impact of air-freight is 60 times greater than that of ocean shipping (Section
2.3.4.4).
Increasing packaging density can improve the overall efficiency of T&L operations and lead to
reduced T&L traffic, thus reducing the entire range of impacts associated with T&L activities.
In the IKEA tea light candle example (Case study 2.15), simple repackaging lead to a potential
transport vkm reduction of 30 % for that product.

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Chapter 2

Appropriate environmental indicator
Improvements in packaging density can be reflected in weight-based( 21 ) final T&L
performance indicators listed in Table 2.68 and Table 2.69 (Section 2.3.4.1):••

kg CO2 eq. per tkm
kg CO2 eq. per tonne delivered.

Environmental performance improvements associated with integrated sourcing decisions
involving T&L impact reductions should be expressed as net lifecycle environmental
performance improvements for particular products (Section 2.2.6.2). These may be expressed as
lifecycle GHG emissions, but should include other environmental indicators where relevant(e.g. water footprint in relation to local water resource pressure). Retailer performance can be
expressed as:•

number of product groups where sourcing or packaging has been modified specifically to
reduce T&L and lifecycle environmental impact.

A proposed benchmark of excellence is:•systematic implementation of packaging improvements to maximise density and improve
T&L efficiency.

Cross-media effects
It is environmentally preferable to source some products from distant warm climates where they
are more efficiently produced (e.g. sugar). Sourcing optimisation must be informed bycomprehensive and integrated product assessment (Section 2.2.6.2) to ensure that there are no
major cross-media or indirect counter effects, such as pressure on water resources. Social
considerations, in particular the creation of quality employment in developing countries(Fairtrade certified products), may conflict with reducing product lifecycle impacts throughcloser sourcing.
In some cases, increased product density may require additional packaging, or a change inpackaging material, which should be balanced against reduced transport pressures using LCA or
similar assessment.
Operational data
Product lifecycle impacts should include T&L operations, based on the reporting described in
Section 2.3.4.2 and methodologies described in Section 2.2.6.2. Case study 2.15 provides anexample of retailer implementation of improved packaging density.
Applicability
This technique applies to all large retailers with private label products.
Economics
Lifecycle costing should be applied to determine net costs. Possible increases in sourcing andpackaging costs may be offset by possible reductions in T&L, storage and in-store display andhandling costs (Bestlog, 2010).
Driving force for implementation
Increased packaging density reduces T&L and handling costs. Integration of T&L
considerations into sourcing helps retailers to identify opportunities for efficient product(21) Improved packaging density will not be reflected by volume-based indicators (e.g. kg CO2 eq./m3 delivered). This is pertinent to
IKEA, where T&L performance is expressed as kg CO2 per m3 delivered but improvements in transport efficiency are being
achieved through volume minimisation (Case study 2.15). Therefore, the best indicator to reflect improved T&L efficiency
associated with modified packaging is MJ or kg CO2 eq. per tkm transported or per tonne delivered.

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Chapter 2

lifecycle environmental improvement, and may be regarded as an integral part ofenvironmentally responsible product sourcing policies. The main driving forces for thistechnique are:
•
•
•
•
•
•

social and environmental responsibility;
potential efficiency improvements and cost savings;
reducing risk associated with energy price volatility;
reducing risk associated with future increases in road and air-freight taxation;
product green procurement policy;
improving image and reputation.

Reference retailers
Coop Switzerland, IKEA.
Reference literature•
AEA technology, The Validity of Food Miles as an Indicator of Sustainable
Development, DEFRA publication reference ED50254, 2005.
•
Bestlog, IKEA – Increased transport efficiency by product and packaging redesign,
http://www.bestlog.org/, European Commission, 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
•
Lumsden, K., Truck masses and dimensions – Impact on transport efficiency, Chalmers
University, Gothenburg, 2004.
•
McKinnon, A., Piecyk, P., 'Measurement of CO2 emissions from road freight transport. A
review of UK experience', Energy Policy 37, 2009, pp. 3733-3742.

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Chapter 2

2.3.4.4

Shift towards more efficient transport modes

Description
Transport mode is the most important determinant of specific transport efficiency on a per tkm
basis. Most environmental impacts arising from goods transport are closely related to energy
consumption and energy source, both of which are strongly dependent on mode. Table 2.74
provides an overview of the efficiency, roles and restrictions inherent to different modes ofgoods transport. Shifting goods transport onto more efficient modes for as much of the transportdistance as possible is the primary mechanism by which the environmental impact of T&L
operations can be reduced. The possibility to make such shifts may be limited to primary
distribution, from supplier DCs to retailer DCs: the first and final kms almost exclusively
necessitate road transport. Modal shifts therefore result in intermodal transport, and require
optimisation of distribution networks (Section 2.3.4.5) to accommodate multiple modes (e.g.
integration into the rail network). Shifting from smaller to larger trucks, including trucks withdouble-deck trailers, is included in this technique owing to the considerably greater efficiencyof large compared with small trucks (see Figure 2.95). Modal shifts can be an importantcomponent of product sourcing decisions intended to minimise T&L and product lifecycle
environmental impacts (Section 2.3.4.3).

Table 2.74:
Mode

Road
(truck)Rail

Various attributes of different modes of goods transport
g CO2/tkm(assumptions)51 (60 % load factor)
109 (25 tonne truck,
57 % load factor and
21 % empty running)
62 (overall average)

NTM (2010)72 (>35 tonne truck)

WBCSD/WRI (2004)

1.8 (electric trains,
France)55 (diesel trains)40(electric
trainsaverage)
20 (diesel trains)
26.3 (average, all trains)
22 (average
trains)Maritime

Sourceforall

ADEME (2007)
McK&P

ADEME (2007)
ADEME (2007)
WBCSD/WRI (2004)
WBCSD/WRI (2004)
Tremove (2010)
McK&P

8.4 (average deep-sea
container vessel)

BSR (2010)

5 (large tanker)

DEFRA (2009), NTM(2010)

13.5 (small container
vessel)10 (ocean transport)
35 (short transport)
14(averageformaritime transport)

DEFRA (2009)
WBCSD/WRI (2004)
WBCSD/WRI (2004)

Role and restrictions
An essential component of retailgoods transport, responsible for the
final stage of delivery to stores. Highflexibility, relatively low cost, but
use of large trucks may be restrictedby national and local (e.g. city)
regulations.
The most efficient land-based goods
transport, well suited for delivering
to distribution centres and potentiallyfast, but restricted by rail network
coverageandroutecapacity
constraints.
High
costs
of
infrastructure and loading/unloading
to road transport make rail a costeffective option for longer distances
only.

Low-cost transport, flexible transport
well-suited to carrying large volumes
over long distances. Slow, andrequires goods unloading andtransfer to/from land-based modes at
ports.

EEA (2010)

Inlandwaterways

31 (little variation)

McK&P

Air freight570 (long haul)
800 (medium haul)
1580 (short haul)
602 (average)

WBCSD/WRI (2004)
WBCSD/WRI (2004)
WBCSD/WRI (2004)
McK&P

Low-cost, efficient transport, but
restricted by waterway network
coverage and capacity.
Fast transport for products with short
shelf-life. Restricted to airport hubs.
Relatively expensive and highly
polluting.

Best Environmental Management Practice in the Retail Trade Sector259

Chapter 2

Metrics commonly used to compare the specific efficiency of different transport modes are MJ
energy consumed per tkm and kg CO2 eq. emitted per tkm (e.g. Table 2.74). However, otherimportant environmental pressures vary considerably across modes of goods transport (Figure2.95). There is a wide variation in specific performance of different modes across a range ofenvironmental pressures when direct and indirect (fuel processing and electricity generation)
emissions are considered. The high energy consumption of air freight translates into a carbon
footprint over 60 times greater than that of ocean-shipping, when the radiative forcing index ofhigh-altitude emissions is considered. There is also a wide variation in emissions of nonmethane volatile organic compounds (NMVOC), with light trucks and aircraft emitting
approximately 70 times more than trains per tkm. The environmental performance of trucks ishighly dependent on their size, and other factors including:•••loading efficiency
average age profiles and EURO compliance profiles
driving patterns (e.g. a higher share of urban driving for smaller trucks).
80
Energy

CO2

NOx

SOx

NMVOC

PM

Relative consumption / emissions

70
60
50
40
30
20
10
0
Truck > Truck 16- Truck
32t
32t
7.5-16t

Truck
3.5-7.5t

Light
truck

Freight
train

Inland
ship

Ocean
ship

Airfreight

NB: Air freight CO2 based on long haul RFI of 2.73.

Source: TREMOVE (2010) and IFEU (2010)
Figure 2.95:

Comparative energy consumption and emissions across freight transport modes,
expressed as a multiple of the lowest emitting mode on a per tonne-km basis (2010average from Tremove, 2010 and IFEU, 2010).

The high sulphur content of heavy fuel oil used in marine transport compared with other fuels issomewhat offset by the inherent fuel efficiency of this mode, so that SOx emissions from marinetransport are comparable to road transport, but considerably higher than for rail and inland
waterway transport. The overall environmental performance ranking of the transport modes
approximates to the energy efficiency ranking, with the exception of ocean ships relative tofreight trains, where lower specific energy consumption for ships is more than offset by highspecific emissions of SOx, NOx and PM. Based on environmental performance, Table 2.75
contains a proposed order of preference for the different transport modes, from most preferred(freight train) to least preferred (air freight).

Best Environmental Management Practice in the Retail Trade Sector

260

Chapter 2
Table 2.75:

Ranking12
3
4Proposed prioritisation ranking of transport modes, based on environmental
performance
Transport mode
Freight train
Ocean ship
Inland waterway
Large truck

Ranking
5
6
7Transport mode
Medium truck
Small truck
Air freight

Achieved environmental benefits
Shifting towards more efficient modes can result in a range of environmental benefits, as
indicated by Figure 2.95. Table 2.76 provides an overview of some environmental benefits
achieved by retailer actions to shift product transport to more efficient modes.

Table 2.76:
Retailer

Carrefour

CasinoCoop
Switzerland

H&M

KF Sweden

MercadonaSome examples of CO2 savings achieved by modal shifts
MeasureIn 2009, 45 % of imported products destined for hypermarkets inFrance were transported by rail and river, up from 41.7 % in 2008
(Carrefour, 2010). In Spain, 100 % of products arriving inBarcelona from Asia, and 76 % of all products arriving in
Valencia, are shipped by rail to Madrid.
In 2009, 39 % of non-EU imports were transported by rail or river(Casino, 2010)
In 2009, 748 203 tonnes of product were supplied by rail (Coop
Switzerland, 2010). The volume of road freight shipments fromnational distribution centres in Wangen and Pratteln to regional
distribution centres fell by 8 %, whilst rail transport increased by
5 %. Rail accounts for over 60 % of long-distance freighttransport.
In 2009, 62 % of the goods shipped from Turkey to Germany (amajor sales country) were shipped by rail instead of truck,compared with 22 % in 2008 (H&M, 2010). Between Turkey and
Poland, 87 % of goods were shipped by rail in 2009, comparedwith 10 % in 2008. The percentage of goods shipped from transit
to sales countries by rail increased from 44 % in 2008 to 60 % in2009, saving 705 t CO2.
In late 2008, Coop began a partnership with Green Cargo, moving
goods transport within Sweden from roads to rail (KF, 2010).
Coop trains carry truck trailers across Sweden, saving 120 truckconsignments per working day between Helsingborg and Umeå.
This solution has also increased KF Sweden's ability tostrategically control T&L operations.
Transports 19 000 tonnes goods daily from east coast Spain tosouthern Spain (Bestlog, 2010). Worked with T&L provider toagree a contract with Spanish rail operator (Renfe) to deliver 8
trains per week from Seville to Tarragona and Seville to Valencia
in a round trip transporting non-fresh and non-food goods. Every
year, 220 000 tonnes are transported on 416 trains. Mercadona's
T&L provider collects goods from train stations for final delivery
by truck. In addition to reducing the environmental impact (7.0 %reduction in transport energy), delivery punctuality has improved
and goods damage has decreased. Cost savings of EUR 13.1
million have been achieved.

Best Environmental Management Practice in the Retail Trade Sector

Environmental
benefits
Considerable
avoidance of roadtransport
andassociatedenvironmental
impacts

8 % reduction inroad transport in one
year to 2009

9 % reduction insales-normalised
transport
CO2emissions in 2009
relative to 2008(*)

Savings of 8 000 t
CO2 per year (10 %)expected

Avoids up to 9 152
truck deliveries and
12 000 tonnes CO2
per year261

Chapter 2
Retailer

Migros

Tesco

Environmental
benefits

MeasureRoad transport decreased from 32 million km in 2005 to 30
million km in 2009 whilst rail travel increased from 9.4 million
km in 2007 to 10.3 million km (186.5 million tkm) in 2009
(Migros, 2010). Migros transports over one million tonnes offreight by rail annually engaging over 400 SBB Cargo wagons fulltime for Migros.
The Tesco train between Daventry and Grangemouth saves 5.12
million km per year and 2 424 t CO2 (Tesco, 2010). Using theManchester shipping canal to transport wine from Liverpool to
Irlam bottling plant saves 263 000 road miles and 330 t CO2 peryear. Introducing double-deck trailers for high-trade store
deliveries avoided 52 000 deliveries in 2009.

6 % reduction inroad transport overfour years.

Alternative transportmodes have saved
12 000 t CO2 eq. per
year relative to
2006.

(*) H&M report a 4 % increase in transport CO2 and a 14 % increase in turnover for 2009 relative to 2008 (H&M,
2010).

Appropriate environmental indicator
Modes should be compared by assessing total (direct plus indirect) emissions per tkm
transported, especially GHG emissions (CO2 eq. in Table 2.74), but also other emissions (Figure2.95).
Retailer performance with respect to implementing or using more efficient transport modes ismost accurately conveyed through statistics on the percentage of goods transported via suchmodes. Two proposed indicators are:•percentage of total product transport (tkm), from first-tier suppliers to stores, accounted
for by specified more-efficient modes
percentage of international product transport (tkm) accounted for by specified moreefficient modes.

•

Where these indicators cannot be calculated, alternatives are:•percentage of overland transport between first-tier suppliers and retail distribution
centres, by sales value, accounted for by specified more-efficient modes
percentage of international product transport, by sales value, accounted for by specified
more-efficient modes.

•

A select few retailers (apparently the front-runners) report the percentage of long-distance goods
transport made on more efficient (rail and water-based) modes (Table 2.77).

Table 2.77:

Performance of front-runner retailers for transporting goods overland via efficientmodes (rail and inland waterways)

Retailer

Description

2009 rail/water share

Carrefour

Imported products destined for hypermarkets

45 % (Carrefour, 2010)

Coop Switzerland

Long-distance transport (rail)

60 % (Coop Switzerland,
2010)

H&M

Goods shipped via transit countries (rail)

60 % (H&M, 2010)

Best Environmental Management Practice in the Retail Trade Sector262

Chapter 2

Proposed benchmarks of excellence are:••over 50 % of overland transport between first-tier suppliers and retail distribution centres,
according to sales value, is by water/rail (where infrastructure allows)over 99 % of overseas transport, according to sales value, is by ship.

Cross-media effects
Intermodal transport may necessitate longer routing distances, but this effect is unlikely tooutweigh the substantial environmental benefits possible from shifting the mode of primarytransport.
Shifting goods transport to LHVs is only environmentally beneficial if it replaces transport insmaller trucks. There are possible indirect negative effects of shifting towards LHV transport, inparticular the indirect displacement of rail transport (see Economics).
Operational data
It is important that the net impact of modal shifts is assessed on a door-to-door basis, accounting
for any increases in routing distance, goods transfers, and secondary modal shifts. For example,
shifting the primary transport mode from road to rail for a particular product group may
necessitate a longer route, transfer of goods from train to truck, and road deliveries from thetrain depot to the DC or stores. Handling and transfer of goods makes a minor contribution totransport GHG emissions (Blanco and Craig, 2009), calculated at 5 % in a worst case scenario
of ship to train transfer using trucks (CN, 2010). The CO2 reduction associated with intermodal
shifts is dominated by:•••energy intensity of the replaced and replacement mode
carbon-intensity of the power source for the replaced and replacement modeload factor differences between the replaced and replacement mode.

There is currently debate over the potential for Longer Heavier Vehicles (LHVs) to reduce thenet environmental impact of goods transport in Europe. In a recent European Commission study(EC, 2009), it was estimated that 60 tonne LHVs could be up to 12.5 % more efficient than 44
tonne vehicles per tkm transported. However, potential reductions in road-transport costs
associated with LHVs could result in a shift of goods transport away from rail towards road (seeFigure 2.96). Based on the prioritisation of transport modes outlined in Table 2.75, shifting
goods transport to LHVs is only beneficial if it is from smaller trucks, but in any case is likely
to be limited in the short term owing to LHV bans in a number of European countries.
Applicability
All large retailers can take some action to shift from more to less polluting transport modes, atleast based on vehicle size. There are opportunities for most large retailers to shift some of theirproduct transport from road to rail or water.
Achieving large-scale shifts in retail goods transport from road to rail and inland waterways will
require improvements in national rail infrastructures and greater cross-border coordination by
operating companies. For example, the Swiss Federal Railways Company (SBB) is nearcapacity for freight, so Coop Switzerland achieved a 5 % increase in rail transport in 2009
through improved capacity utilisation (Coop Switzerland, 2010).
National policy (e.g. road pricing) can have a significant influence on retailers' decisions
regarding transport mode. In Switzerland, HGVs have been subject to a statutory charge since
2002.
Economics
Investment in the distribution network necessary to achieve intermodal shifts may be recoupedby savings in transport costs. Rail is more likely to offer cost savings compared with road for
longer distance transport (Figure 2.96).
Best Environmental Management Practice in the Retail Trade Sector263

Chapter 2

Driving force for implementation
The main driving forces for retailers to shift towards environmentally preferable transportmodes are:
•
•
•
•
•

social and environmental responsibility;
potential efficiency improvements and cost savings;
reducing risk associated with energy price volatility;
reducing risk associated with future increases in road and air-freight taxation;
improving image and reputation.

Source: Harris & McIntosh (2003)

Figure 2.96:

Comparison of the costs of road and rail transport over increasing distance

Reference retailers
Carrefour, Coop Switzerland, H&M, Migros.

Reference literature•
ADEME, Emission factors guide: emission factors calculation and bibliographicalsources used. Version 5.0. ADEME, 2007.
•
Bestlog, Mercadona and Renfe: Collaboration Distribution. European Commission,
Brussels, www.bestlog.org/, 2010.
•
Blancoe, E.E., Craig, A.J., The value of detailed logistics information in carbon
footprints, MIT, Massachachusetts, 2009.
•
BSR,
BusinessforSocialResponsibility
transport
guidelines
http://www.bsr.org/consulting/industry/transportation.cfm, 2010.
•
Carrefour, Sustainable development at Carrefour. Expert Report 2009, Carrefour, France,
2010.
•
Casino, Annual and Sustainable Development Report – 2009, http://www.groupecasino.fr/IMG/pdf/CASINO_RA_EN_09.pdf, 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
DEFRA, Guidance on how to measure and report your greenhouse gas emissions,
http://www.defra.gov.uk/environment/business/reporting/pdf/ghg-guidance.pdf, DEFRA,
2009.
Best Environmental Management Practice in the Retail Trade Sector

264

Chapter 2

•
•
•
•
•
•
•
•
•
•
•

EEA
TRENDS
website,http://airclimate.eionet.europa.eu/databases/TRENDS/index_html, EEA, 2010.
Harris, N.G., McIntosh, D., 'The Economics of Rail Freight', in Harris, N.G, Schmid, F.
(eds.), Planning Freight Railways, A. & N. Harris, London, 2003.
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
IFEU-Heidelberg-Öko-Institute, EcoTransit. Ecological transport tool for worldwide
transits,http://www.ecotransit.org/download/ecotransit_background_report.pdf,
IFEU,
Heidelberg, 2009.
KF, Annual report 2008, http://www.coop.se/static/hr08/sv/KF_AR2008_en.pdf, 2009.
McKinnon, A., Piecyk, P., 'Measurement of CO2 emissions from road freight transport. A
review of UK experience'. Energy Policy 37, 2009, pp. 3733-3742.
Migros, 2010. Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
NTM, Swedish Transport and Environment Organisation freight calculation tool,
http://www.ntmcalc.org/Magellan/render/, 2010.
Tesco, Tesco PLC Corporate Responsibility Report 2010, http://cr2010.tescoplc.com/,
2010.
Tremove homepage, http://www.tremove.org/, 2010.
WBCSD/WRI, The GHG Protocol: A Corporate Accounting and Reporting Standard.
WBCSD/WRI ISBN 1-56973-568-9, 2004.

Best Environmental Management Practice in the Retail Trade Sector

265Chapter 2

2.3.4.5

Optimise the distribution network

Description
Shifting towards more efficient transport modes is the most effective way to achieve T&L
efficiency improvements on a per tkm basis (Section 2.3.4.4), but often requires modification of
the distribution network to accommodate modal transfers. Distribution network optimisation canfurther improve the efficiency of T&L operations by enabling higher rates of vehicle loading
and backloading to reduce empty running.
For a given transport mode, load factor and empty running are key determinants of specificenergy consumption and GHG emissions (Figure 2.97). If a 44 tonne truck with a 29 tonne net
load capacity operates with an average load of 10 tonnes over 60 % of the distance it travels (i.e.
40 % empty running), the specific GHG emissions for transported goods would be 134 g CO2
tkm-1 (Figure 2.97). If that truck operates with an average load of 20 t over 80 % of the distanceit travels, specific emissions would be 59.8 g CO2 tkm-1 (55 % lower than the above case). If
that truck could be operated continuously at full capacity, specific emissions would amount tojust 40 g CO2 tkm-1 (Figure 2.97). The relatively low density of many retail goods restricts theachievable weight-based load efficiency (Lumsden, 2004; Section 2.3.4.3), but there remains
considerable scope for improvement – especially when combined with packaging optimisationand load balancing made possible through cluster networks (Case study 2.15 in Section 2.3.4.3
and Case study 2.16). In summary, there are four primary objectives for distribution network
optimisation:••••

enable use of efficient modes for long-distance routes
increase load factors
reduce empty running (increase back-loading)
reduce vkms.

The latter three objectives are also achieved through more efficient route planning(Section 2.3.4.6).

140
10 t, 40%120
10 t, 20%

Empty
runs

Empty runningeliminationg CO2 tkm

100
10 t load increase80

10 t, 0%Load

60

20 t, 20%
29 t, 0%

40

Base
20
0
Good
Source: Based on data from McKinnon and Piecyk (2010).

Figure 2.97:

Optimum

Effect of increasing load and reducing empty running on specific CO2 emissions
for a 44 tonne gross (29 tonne net load) truck

Best Environmental Management Practice in the Retail Trade Sector

267

Chapter 2

There are a number of approaches to distribution network optimisation that may be
implemented separately or in combination. Three of the major approaches are summarised inTable 2.78. The third approach that overlaps with route planning (Section 2.3.4.6), and the mostappropriate approach is highly dependent on product-specific factors including the location andhow scattered the suppliers are, and product transport requirements (especially coolingrequirements and time limits).

Table 2.78:

Three major approaches to efficient distribution network design

Approach

Description

Centralised
hub network

Modify distribution network sothat it is based on centralised
hubs located and designed toaccommodate
intermodaltransfer and load optimisation.

Consolidated
platforms

Arrange consolidation points(strategicallylocatedwarehouseornominated
supplier) where a group ofneighbouring suppliers candeliver goods for forwarding to
the retailer in consolidated(optimised) loads.

Direct routing

For some products, it may betocoordinate
possible
production with demand so thatintermediatestorageanddistribution can be avoided.

ExamplesTesco opened three new DCs in 2007 at Livingston,Lichfield and Goole, to replace six smaller regional
DCs. The larger DCs hold a greater range of products
and reduce the amount of trunking required between
DCs. These changes to the distribution network saved
2.186 million miles and 2 951 tonnes of CO2 per year.
Carrefour is implementing a consolidated platform
strategy where suppliers deliver to a single
consolidation warehouse, from which Carrefour
arranges goods transport to DCs and stores in
optimally-filled trucks (Carrefour, 2010). Five newconsolidation warehouses were established in France
in 2009, in addition to the two pre-existing ones:
Saint Quentin, Agen, Thuit-Hébert, Lieusaint,
Soissons. This is similar to IKEA's cluster supply
strategy detailed in Case study 2.16.
In 2009, H&M reduced the number of shipments via
their transit warehouse in Hamburg, and instead
shipped products directly to sales countries. Between
2008 and 2009, H&M decreased transit volumes
shipped by ocean and air by 40 %. Products in Coop
Switzerland's 'fresh from the region' range aresupplied directly to stores by local producers.

Figure 2.98 is a simple schematic of the centralised hub and consolidated platform concepts,
relative to unimproved direct transport between suppliers and retail stores or DCs. Large
distribution networks are usually organised around hubs that enable aggregation anddisaggregation of products for long-distance and short-distance transport, respectively. The
centralised hub concept defines the use of large hubs strategically placed to enable integration
into efficient modal networks such as shipping and rail. Although the use of large centralised
hubs located at port and rail depots may necessitate additional short-distance feeder transport byroad (Figure 2.98), it enables the use of efficient modes for long-distance transport, and load
optimisation through product mixing according to density (see Case study 2.15).
Consolidated platform networks may be developed either separately or in combination withcentralised hub systems, and are particularly effective where large numbers of suppliers arescattered over a wide area. Consolidated networks are based around a strategically locatedwarehouse, or a designated supplier, where products from a surrounding 'cluster' of suppliers
can be consolidated into optimised loads for long-distance transport to retail DCs (Figure 2.98).
Consolidated platforms may be referred to as 'supplier clusters' where they are based on adesignated supplier (Case study 2.16). Consolidation points may be selected to enable access to
the rail network for long-distance transport. Coordination of supplier clusters is dependent on
vertical coordination between retailers and suppliers.

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268

Chapter 2
Supplier
Supplier

Supplier

Supplier

Supplier

FeederHub

Supplier

Supplier
Supplier

Centralised
hub network

Supplier

Supplier
Supplier

Receiver hub(e.g. Distribution
Centre)Supplier

Supplier

Supplier
Supplier
Supplier

Supplier/
warehouse

Consolidated
platform

Supplier

Supplier
Supplier

Long-distance (1000s km) transport by
efficient mode (e.g rail), optimised loads

Supplier

Supplier

Long-distance (1000s km) nonoptimised transport (e.g. trucks)

Short-distance non-optimised transport
Figure 2.98:

Centralised hub and consolidated platform networks (left) require additional
short-distance (10s to 100 km) transport, but enable optimised loading and use of
efficient modes for long-distance (100s to 1000s km) transport, compared with
uncoordinated systems (right)

For some products, efficient logistical planning may enable them to be routed directly to sales
outlets without intermediate distribution (often the case for fresh food products) (Table 2.78). In
order to accommodate the main measures associated with efficient route planning described in
Section 2.3.4.6, the approaches in Table 2.78 should fully integrate the locations of all:•••major suppliers
waste handling facilities
stores.

Migros provides a good example of a centralised hub distribution network strategicallyintegrated into the (Swiss) rail network. Migros national DCs not only receive deliveries via
rail, but forward them on to the regional Cooperatives via rail (Migros, 2010). In 2009, theNeuendorf DC forwarded all non-food and near-food products to regional Cooperatives in
Neuchâtel/Fribourg, Geneva, Vaud and Ticino exclusively via rail. In autumn 2009, the SuhrDC also switched to rail transport for all of its food deliveries to the Geneva Cooperative.
Similarly, two thirds of Coop Switzerland's freight transport from their two national distribution
centres (in Wangen and Pratteln) is made by rail (Coop Switzerland, 2010).

Best Environmental Management Practice in the Retail Trade Sector269

Chapter 2
Case study 2.16: IKEA supplier clusters as an example of distribution network optimisation
Cluster supplier concept
IKEA is reconfiguring its supply chain into coordinated clusters that pool transport to maximise loading
efficiency (Bestlog, 2010). According to IKEA's cluster supplier concept, between seven and 24 productsuppliers deliver directly to a nearby cluster supplier, who then delivers consolidated orders to IKEA
stores in optimised loads. Coordination between retailer and suppliers includes optimisation of packaging
in order to maximise loading efficiency (see Case study 2.15).
Implementation in Poland
Poland is IKEA's second largest supplier country, with 80 producers supplying 17 % of IKEA's homefurnishing products. In order to implement the cluster supplier concept, IKEA performed the following
tasks:•••

analysed the geographical distribution of Polish suppliers, and identified a cluster of 28 suppliers
within a 50–100 km radius;used Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to identify two project
leaders with logistics competences: COM.40 sofa producers and Correct mattress producers;
initiated cooperation between COM.40, Correct and 26 smaller suppliers within the identified
cluster.

The smaller suppliers deliver their products to the two project leader companies' warehouses where they
are stocked. IKEA places orders with COM.40 and Correct, who consolidate volumes of different
products into optimised delivery loads – based around a critical mass of sofas and mattresses. Twentyfive rail wagons and 60 trucks are prepared every day. The supplier cluster configuration also creates theopportunity to channel products via efficient transport modes: 18 % of shipments from the Polish suppliercluster to IKEA DCs and stores occurred via rail in 2007.
Distribution of costs and benefits
COM.40 and Correct control delivery reliability on behalf of IKEA, who ultimately bear transport costs.
However, risks and efficiency gains are shared between COM.40, Correct and IKEA, so that the Polishsuppliers are investing in infrastructure to deal with anticipated volume growth. In addition to reduced
transport costs, the cluster supplier concept leads to sales benefits (for both IKEA and suppliers) byreducing lead times and improving product availability. Load optimisation, and substitution of road withrail transport, significantly reduces the environmental impact of T&L.

Achieved environmental benefit
Distribution network optimisation is integral to other techniques detailed in this chapter, and theenvironmental benefits are reflected in overall T&L efficiency improvements achieved byretailers (Table 2.67 in Section 2.3.4.2). In particular, this technique makes a criticalcontribution towards the environmental benefits associated with modal shifts (Section 2.3.4.4)
and route planning (Section 2.3.4.6).
Tesco claim that reduced trunking between DCs associated with the replacement of six regionalDCs with three new ones saved 2.2 million miles of road transport and 2 951 t CO2 per year
(Table 2.78) (UK DfT, 2007). Meanwhile, preliminary studies by Carrefour indicate that
supplier coordination in platform consolidation has achieved CO2 reductions of 25 % per palletdelivered (Carrefour, 2010).
Appropriate environmental indicatorIntermodal shifts, increased loading efficiency, and reduced empty running associated with
distribution network optimisation will be reflected in transport efficiency indicators (Table 2.68
in Section 2.3.4.2):••••

percentage transport by different modes
average percentage load efficiency (volume or mass capacity)
average percentage empty running (truck km)
g CO2 eq./tkm.

Best Environmental Management Practice in the Retail Trade Sector

270Chapter 2

The above indicators are important to identify the most appropriate improvement options. The
full effect of distribution network optimisation, including a reduction in the overall transportdistance, will be reflected in final performance indicators (Table 2.69 in Section 2.3.4.2), in
particular:•

kg CO2 eq. per m3 delivered product.

The most appropriate indicators of retailer management performance for this technique are:
•
•
•
•
•

the number of consolidation platforms in use
the number of strategic central hubs in use
the number of direct transport routes in use
percentage reduction in T&L GHG emissions through implementation of specified
distribution network improvement options
outsourcing of T&L operations to a third party provider with an optimised distribution
network.

Retailers often refer to absolute reductions in GHG emissions attributable to specificimprovements (e.g. Table 2.78).
Proposed benchmarks of excellence are the same as for transport mode (Section 2.3.4.4), plus:•

systematic optimisation of distribution networks through implementation of strategic hub
locations, consolidated platforms, and direct routing

Cross-media effects
No significant cross media effects are likely to be associated with this technique. Energy use
and emissions associated with increased feeder transport by trucks to centralised hubs andconsolidation platforms are likely to be small compared with energy and emissions reductions
arising from use of optimally-loaded, efficient long-distance transport modes.
Operational data
Intermodal transfers may be restricted, or at least complicated, by varying load unit dimensions(Lumsden, 2004). Standardisation of load unit dimensions would accommodate full intermodality, and enable the use of modular combinations such as truck trailers. Given that retailtransport is often volume-limited, further improvements in weight-based load efficiency may
require trailer designs and combinations with greater volume capacity at a given weightcapacity. IKEA designs all products to fit in flat packs that in turn fit exactly onto standard
pallets (IKEA, 2010).
Applicability
Any large retailer with a distribution network (i.e. distribution centres) can implement thistechnique. Any third party T&L service provider can implement this technique.
Economics
There are few economic data for implementation of this technique, and the costs of distribution
network optimisation will vary considerably across retailers and approaches. For strategic
central hubs, capital investment in new distribution centres and intermodal connections will behigh. However, retailer examples of reductions in transport distances and GHG emissions
attributable to distribution network improvements (Table 2.78) suggest that efficiency
improvements are likely to payback any investment costs within an acceptable time.
Coordination of suppliers into consolidation platforms requires little investment, but can realisesignificant efficient savings, and therefore result in short payback periods. Efficiency dividends
may be shared between cooperating parties (Case study 2.16).

Best Environmental Management Practice in the Retail Trade Sector271

Chapter 2

Where it does not require a shift towards a less efficient transport mode, or towards lower
loading efficiency, implementation of direct transport routes can reduce transport distances andreduce operating costs. Infrastructure requirements are also lower, so that this option may resultin immediate cost savings.
Driving force for implementation
The main driving forces for retailers to optimise their distribution networks are the same as foruse of environmentally preferable transport modes:
•
•
•
•
•

social and environmental responsibility
potential efficiency improvements and cost savings
reducing risk associated with energy price volatility
reducing risk associated with future increases in road and air-freight taxation
improving image and reputation.

Reference retailers
Carrefour, H&M, IKEA, Migros.
Reference literature•
Bestlog, Reconfiguration of the supply chain structure, European Commission, Brussels,
http://www.bestlog.org/, 2010.
•
Carrefour, Sustainable development at Carrefour. Expert Report 2009, Carrefour, France,
2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
H&M,
Style
and
substance.
H&M
Sustainability
Report,2009,
http://www.hm.com/filearea/corporate/fileobjects/pdf/en/CSR_REPORT2009_SUS_REP
ORT_1272005348413.pdf, 2010.
•
IKEA,
The
Never
EndingJob.
Sustainability
Report09,
http://www.ikea.com/ms/en_IE/about_ikea/read_our_material/index.html, 2010.
•
Lumsden, K., Truck masses and dimensions – Impact on transport efficiency, Chalmers
University, Gothenburg, 2004.
•
McKinnon, A., Piecyk, M., Measuring and managing CO2 emissions of European
chemical transport, CEFIC, 2010.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
UK DfT (Department for Transport), Tesco Sets the Pace on Low Carbon and Efficiency,
DfT, London, 2007.

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Chapter 2

2.3.4.6

Optimise route planning, use of telematics and driver training

Description
Road transport is an integral part of retail T&L operations, necessary for transport fromsuppliers to outgoing DCs and final distribution from incoming DCs to stores. In the context ofa particular distribution network (Section 2.3.4.5) with predetermined primary transport modes(Section 2.3.4.3), the efficiency of T&L operations can be further improved by route planning(including use of telematics), more efficient driving techniques, and finally vehicle modification
as described in Section 2.3.4.7. The scope for route planning optimisation is somewhat
dependent on the distribution network, and overlaps with three of the four objectives for
distribution network optimisation described in Section 2.3.4.5:•••

reducing overall transport tkm
increasing load factors
reducing empty running (increase back-loading).

In addition, driver training and telematics can reduce fuel consumption per km travelled.
The complexity of coordinating T&L operations to ensure punctual store deliveries necessitates
the use of specialised vehicle routing software, based on optimisation models, to route andschedule transport activities for large fleets. This software takes into account the multitude oflogistical factors that must be considered, including: driver hours-of-service rules, pick up anddelivery schedules, vehicle size constraints, vehicle-product compatibility, equipment
availability, vehicle-loading dock compatibility, route restrictions and empty mileage. Vehicle
routing schedules can reduce the total distance travelled by trucks on multi-drop delivery rounds
by between 5 % and 10 % (UK DfT, 2005). Retailers can maximise the benefit of such softwareby extending the parameters considered beyond transport from DCs to stores, to include:•••transport from suppliers to DCs (integration of upstream transport)
waste transport (integration of downstream transport)
traffic avoidance (out-of-hours deliveries).

Table 2.79 provides an overview of the main methods to improve T&L efficiency included inthis technique. In addition to increasing load-efficiency and reducing empty running, retailers
can extend the daily delivery window, and use telematics and driver training to improve truck
fuel efficiency. Case study 2.17 describes a best practice example of driver training to reducetruck fuel consumption, implemented by Migros and extended to third party delivery drivers.

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Chapter 2
Table 2.79:
MethodSupplier
backloading

Reversepackaging

Extendeddeliverywindow

Telematics

Drivertraining

Some of the main methods applied by retailers route planning
Description

Examples

After
store
delivery,collect goods
fromnearbysuppliersonreturn journey
to DC

In 2009, Sainsbury's fully implemented theIntegrated Transport Management System forprimary and secondary transport operations(Sainsbury's 2010). For primary operations,
empty trucks from Sainsbury's fleet are used totransport products from suppliers to DCs whenreturning from making store deliveries. In
secondary operations, suppliers transport
products from DC to store on return journeyfrom DCs.
Tesco operate a load-sharing arrangement with
suppliers similar to Sainsbury's (above).
Cooperation with suppliers resulted in 55 432
supplier back-loads to minimise empty runningin 2007 (Tesco, 2009). In 2008, 2.6 million
road miles were saved. Tesco's delivery fleet
did not grow over the three years to 2009,
despite significant retail growth.

At store, filltruck returning
to DC withreusable
packaging (e.g.
pallets)and(recycling)
waste.

Deliveriesplannedto
avoid times oftrafficcongestion.

Optimise speed
and route to
avoid
traffic
based on realtime
traffic
informationfrom GPS
Driver training
in efficient andsafe
drivingtechniques.
Maybeaccompanied
by incentives.

Environmental
benefit
CO2 reduced by 6.4 %in one year, and 16 %over 5 yrs, to 0.122 kg
CO2 eq. per case. In
2009, a total of
1 174 046 vehicle kms
wereavoidedfor
Sainsbury's
andsupplier fleets.

Saved 3 590 t CO2 peryear in 2008

Carrefour reduced return journeys by 10 %(Carrefour, 2010), Coop Switzerland, Migros

10 % reduction in
empty return journeys

Carrefour has installed special delivery areas toaccept deliveries outside store opening hours at
39
hypermarkets
and1200
supermarkets/convenience stores (Carrefour,2010). To facilitate deliveries outside peaktraffic, Carrefour operates trucks onconsecutive rounds (necessitating a driver shiftswap), has installed low-noise handlingequipment, and will use 30 'silent' trucks for
Paris city-centre deliveries in 2010.

In total, Carrefour
reduced downstream
transport by 3 %, andassociatedCO2emissions by 7 600 t,
in 2009 compared with
2008.

The retailer Casino saved 8.5 million km in one
year by optimising routes with tracking
software (Casino, 2008).

Avoided 8 000 t CO2
emissions

Migros operates a comprehensive driver
training scheme that is being extended to third
party drivers (Migros, 2010), and offers
incentives for drivers to save fuel (see Casestudy 2.17).

Migros'Basel
Cooperative reduced
fuel use by 6 % acrosstheir fleet between
2008 and 2009.

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Chapter 2
Case study 2.17: Migros driver training and incentive scheme to reduce fuel consumption

Background
Since its instigation in 2008, Migros' national transport logistics improvement project has led tohigher loads per haul and more efficient transport routes (Migros, 2010). In 2009 there was aslight decline in the number of kilometres travelled by lorry, whilst constant renewal of thevehicle fleet in favour of more environmentally friendly lorries (Euro 4 and Euro 5 compliant)
has reduced nitrogen oxide emissions by 40 % since 2005. Migros is also increasing the numberof gas or hybrid vehicles, and the use of alternative fuels such as biogas from organic waste andbiodiesel from recycled vegetable oils.
Driver training
Migros cooperatives regularly hold driver training courses on energy-saving and economic
driving. In 2009, 82 % of all drivers attended an ecodrive course. In addition, Migros extended
ecodrive courses to 150 third party drivers in 2009.
Migros Cooperative Basel had one of the highest fuel consumption rates amongst the Migros
cooperatives, and in 2008 introduced an incentive scheme to reward drivers for efficient driving.
Fuel consumption data are recorded and analysed by the regional transport manager for eachdriver and vehicle. Migros Coop Basel saved 38 000 l of diesel between 2008 and 2009, withaverage truck fuel consumption declining from 2.94 km/l (34 l/100 km) to 3.13 km/l (32l/100km).

Achieved environmental benefit
By reducing the number of vehicle km travelled, and ensuring a higher proportion of thesevehicle kms are travelled in free-flowing traffic conditions, optimised routing can significantly
reduce fuel consumption and associated emissions of CO2, SOx, NOx, VOC and PM.
Table 2.79 lists reductions in transport distance, fuel consumption and CO2 emissions achievedby specific retailer actions relevant to this technique. More efficient driving techniques can
reduce fuel consumption by up to 10 % (Ricardo, 2010), though a reduction of 6 % was realised
in practice by Migros (Table 2.79), and a reduction of 7 % in a trial performed by Tesco (Tesco,2010).
Telematic systems can reduce fuel consumption and associated emissions by approximately 5 %for long-distance HGV transport and up to 15 % for urban LCV transport (Climate Change
Corporation, 2008). Ricardo (2010) estimates that one telematic application with predictive
cruise control can reduce fuel consumption by 2 % to 5 %.
Albert Heijn reported a reduction in fuel consumption of 75 % for deliveries to an urban store
following the replacement of small trucks making day-time deliveries with large, quiet trucks
making night-time deliveries outside peak traffic hours (Case study 2.18 in Section 2.3.4.7).
Appropriate environmental indicator
Increased loading efficiency and reduced empty running associated with routing improvements,and more efficient driving associated with telematics and driver training, will be reflected intransport efficiency indicators (Table 2.68 in Section 2.3.4.2):•••

fleet average percentage load efficiency (volume or mass capacity)
fleet average percentage empty running (truck km)
fleet average g CO2 eq. per tkm.

The above indicators are important to identify the most appropriate improvement options. The
full effect of improved logistics, telematics and driver training will be reflected in final
performance indicators (Table 2.69 in Section 2.3.4.2), in particular:

Best Environmental Management Practice in the Retail Trade Sector

275

Chapter 2•

kg CO2 eq. per m3 delivered product.

Retailers often refer to absolute reductions in GHG emissions attributable to specificimprovements (e.g. Table 2.79). The most appropriate indicators of retailer management
performance for this technique are:•••percentage of drivers continuously trained in efficient driving techniques
percentage reduction in T&L GHG emissions through implementation of specified
options (i.e. back-hauling waste or supplier deliveries, telematics, driver training andincentive schemes, out-of-hour deliveries)
outsourcing of T&L operations to a third party provider implementing this technique.

Two proposed benchmarks of excellence for this technique are:••

100 % of drivers being continuously trained in efficient driving or implementation of an
efficient driving incentive scheme for drivers
systematic optimisation of routing through back-hauling waste and supplier deliveries on
store-delivery return journeys, use of telematics, and extended delivery windows.

Cross-media effects
The only significant cross-media effect likely to arise from measures described in this technique
is elevated emissions of NOx from engines under lighter loading as a consequence of more
efficient driving techniques (EMCT, 2006).
Operational Data
Retailers need to cooperate with suppliers (or with suppliers and T&L providers) in order tointegrate upstream transport between suppliers and DCs with transport between DCs and stores.
Retailers may also need to facilitate cooperation across suppliers to coordinate loads and backhauling (i.e. to implement a flexible version of the cluster supplier concept referred to in Section
2.3.4.5).
Fuel savings realised by driver training diminish over time, and it is necessary to continuously
train drivers, for example through annual refresher courses. Retailers may also implement adriver benchmarking system to maintain interest and encourage competition in efficient driving.
This may be based on basic fuel consumption per truck (Migros: Case study 2.17) or real-timemonitoring systems that monitor truck and driver efficiency (e.g. Tesco's 'Fleetboard' system).
Drivers for KF Sweden receive part of the fuel savings they achieve through more efficientdriving.
Night time delivery may necessitate the use of silent trucks and unloading facilities, dependingon the location of the store (Case study 2.18 in Section 2.3.4.7). Casino makes store deliveries
between 20:00 and 22:00 in the Greater Paris region using vehicles certified to the Dutch PIEK
standard.
Some opportunities to achieve significant efficiency savings through route planning and driving
techniques are restricted by legislation. For example, platoon driving, whereby HGVs follow
one another closely on motorways to form a train, can be achieved using safety sensors andactive safety features. It has the potential to reduce fuel use and CO2 emissions by 20 % on
motorway journeys, but contravenes current road regulations.
Applicability
Applicable to all large retailers.
Economics
Driver training costs between EUR 170 and EUR 340 per driver (Ricardo, 2010). Based on anaverage fuel cost of EUR 50 000 per year for an average European long-distance truck (Volvo,
2010), a 5 % fuel saving would translate into EUR 2 500 saved in the first year alone.
Best Environmental Management Practice in the Retail Trade Sector276

Chapter 2

Software and manpower costs associated with route optimisation are highly variable. For large
retailers, these costs are likely to be small compared with routing distance reductions and fuelcost savings. Similarly, telematic system installation costs are likely to be small compared withefficiency improvements and fuel cost savings (see driver training example, above).
Efficient route planning (particularly in coordination with suppliers) can reduce the size of the
fleet required, and thus reduce capital investment (see Case study 2.18 in Section 2.3.4.7).
Efficiency dividends may be shared between cooperating parties.
Driving force for implementation
The main driving forces for retailers to optimise their distribution networks are the same as foruse of environmentally preferable transport modes and distribution network optimisation:
•
•
•
•
•

social and environmental responsibility
potential efficiency improvements and cost savings
reducing risk associated with energy price volatility
reducing risk associated with future increases in road and air freight taxation
improving image and reputation.

Reference retailers
Carrefour, Migros, Sainsbury's, Tesco.
Reference literature•
Carrefour, Sustainable development at Carrefour. Expert Report 2009. Carrefour, France,
2010.
•
Casino,http://www.groupecasino.fr/IMG/file/FINANCE/PUBLICATIONS/RDD/2008RDD.pdf, 2008.
•
Climate Change Corporation, How greener transport can cost less, CCC,
http://www.ettar.eu/download/press_ETTAR.pdf, 2008.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahle
n_fakten/_pdf/nhb09.pdf, 2010•
EMCT, 'Reducing NOx emissions on the road: ensuring future exhaust emission limits
deliver air quality standards'. European Conference of Ministers of Transport, Dublin,
2006.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
Ricardo, Review of low carbon technologies for heavy goods vehicles. UK Department
for Transport, London, http://www.dft.gov.uk/pgr/freight/lowcarbontechnologies/, 2010.
•
Sainsbury's,
Corporate
Responsibility
Report,2010,
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010.
•
Tesco, Tesco PLC Corporate Responsibility Report 2010, http://cr2010.tescoplc.com/,
2010.
•
UK DfT (Department for Transport), Computerised Vehicle Routing and Scheduling for
Efficient Logistics, DfT, London, 2005.

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Chapter 2

2.3.4.7

Minimise the environmental impact of road vehicles throughpurchasing decisions and retrofit modifications

Description
Road transport is an integral part of retail T&L operations, necessary for transport fromsuppliers to outgoing DCs and final distribution from incoming DCs to stores. Whether or not
retailers have taken measures to reduce the distance transported by goods (Section 2.3.4.3 andSection 2.3.4.5), to shift to more efficient modes (Section 2.3.4.4), and to optimise routing anddriving efficiency (Section 2.2.6.6) a number of measures can be taken to improve theefficiency of trucks. Various features can be specified when purchasing vehicles in order tomaximise their operational efficiency, and thus reduce fuel costs and environmental impact.
Many features can be retrofitted to existing road vehicles to improve their efficiency. Usinglarger vehicles, such as trucks with double-deck trailers, is considered as a modal shift, and isincluded Section 2.3.4.4.
The internal combustion engine is inherently inefficient, and most fuel energy is lost throughfriction and heat losses. For large 44 tonne HGVs, of the 30 % to 40 % of fuel energy that isconverted into motion, half is used to overcome rolling resistance and a third is used toovercome air resistance (Figure 2.99). In the medium term, there is considerable potential for
efficiency improvement through use of alternative drive trains, such as electric motors, inparticular for smaller delivery vehicles. In the short term, natural gas and biogas may be usedinstead of diesel in large trucks, with CO2 savings of 10–15 % and over 60 %, respectively(Table 2.80). Biodiesel made from waste oil can result in similar CO2 savings to biogas.
There remains considerable debate over the potential for crop-based biofuels (e.g. ethanol fromcorn and sugarcane, biodiesel from rape seed oil and palm oil) to reduce environmental impact
owing to their agricultural land requirements, and impacts associated with high chemical andenergy inputs. Most large retailers have suspended their targets for minimum biofuel
percentages in fuel blends owing to concern over the sustainability of first-generation cropbased biofuels (e.g. M&S, 2010). If adequate procedures are developed to certify thesustainability of biofuels from different sources, or second generation biofuels arecommercialised based on low-input woods and grasses that do not require productive
agricultural land, biofuels could make an important contribution to reducing the environmental
impact of transport. In the meantime, crop-based biofuels are excluded from this best practicetechnique.
13%

Rolling
resistance
Aerodynamic
drag
Climbing
52%

35%

Source: Ricardo (2010)

Figure 2.99:

Energy demand from a 44 t HGV over a typical driving cycle in the UK

Best Environmental Management Practice in the Retail Trade Sector278Chapter 2

Table 2.80 provides an overview of the main measures that can be taken to improve truck(primarily HGV) fuel efficiency. Based on Figure 2.99, reducing aerodynamic drag and rolling
resistance are the two primary objectives of many vehicle design features and retrofit
modifications. For a 44 t HGV, a 22 % reduction in aerodynamic drag translates into an 8.7 %reduction in fuel consumption, whilst a 10 % reduction in rolling resistance translates into a
5.5 % reduction in fuel consumption (Ricardo, 2010). Improved aerodynamic trailer design andretrofitted aerodynamic modifications can significantly reduce fuel consumption and costs – by
up to 10 % for vehicles frequently driven at higher speeds. By 2009, M&S had increased thenumber of aerodynamic 'teardrop' trailers in their fleet to over 300 (M&S, 2010). Reducing
rolling resistance through choice of tyres and correct inflation can achieve similar benefits.
Replacing diesel-driven auxiliary power units for trailers with electric units can also result insignificant efficiency savings.
New vehicles will be compliant with high EURO emission standards, but when purchasing used
vehicles it is important to select the most efficient vehicles that comply with the highest possible
EURO standard (preferably EURO 4 or EURO 5). The percentages of EURO 4- and EURO 5compliant trucks in the transport fleets of some leading retailers are shown in Figure 2.100. The
most effective way to improve EURO emission standard compliance is to replace the fleet's
oldest trucks (e.g. Coop Switzerland, 2010). Use of selective catalytic reduction in combination
with urea additives that react with exhaust gases considerably reduces the NOx emissions ofmodern HGVs, to ensure compliance with EURO 4 and 5 standards (Table 2.81).
A number of retailers, including Coop Switzerland and Albert Heijn, are trialling trucks
powered by biogas (Albert Heijn, 2010; Coop Switzerland, 2010). Meanwhile, retailers
introducing electric vehicles for urban deliveries include M&S and Sainsbury's (M&S, 2010;
Sainsbury's, 2010).

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Chapter 2
Table 2.80:

Portfolio of measures to improve truck efficiency and/or reduce environmental
impactMeasures
Aerodynamic
trailer
Aerodynamic
fairings
Sprayreducing mud
flaps
Low-rolling
resistance tires
Single widebase tyres

Description'Tear-drop' shaped trailer
Retrofit add-ons to reduce drag. Greatest
effect from cab fairing and collar

Similar cost to ordinary tyres, but shorter
lifespan. For long-distance routes
Replace double tyres with single widebase tyre. Also reduces weight, so
increases possible payload. Not allowed ontrucks over 40 tonnes

Automatictyre inflation

Electric/
alternativefuel bodies

Replaces diesel-driven trailer equipmentwith electric (or nitrogen-) driven
equipment

Electric
vehiclesBest suited to urban driving (less than 160
km per day), and smaller (less than 12
tonne) trucks

Full-hybrid
Automatedtransmission
CNG engine

Biogas engine

Cost

Fuel/CO2
saving10 %(dependingon speed)

EUR 285 – 2000

0.1–6.5 %EUR 2 per unit

3.5 %Retrofit
Reduce spray and air resistance

Automatically inflates tyres according toconditions. Benefit depends on: (i) rangeof conditions; (ii) existing (manual)
monitoring efficiency

Mild-hybrid

Applicability
Vehicle(trailer)purchasing
Retrofit

Stop-start systems and use of brakingenergy for battery recharge. Suitable for
LGVs and urban driving
Large battery recharged by braking
energy, used to power vehicle at times.
Expensive and not well developed fortrucks.
Mechanical efficiency of manual shifts,
with optimised automated changes
Engine that runs on compressed naturalgas.

Engine that runs on biogas (tolerant ofcontaminants in fuel)Retrofit

Up to 5 %Retrofit
NA
Retrofit
EUR 11 500

Vehicle(trailer)purchasing
Vehiclepurchasing

Vehiclepurchasing
Vehiclepurchasing

Vehiclepurchasing
Vehiclepurchasing
Vehiclepurchasing

Up to 15 %additional trailer
cost, but lower
maintenance
EUR 90000 for a
7.5 tonne vehicle
EUR 700 option
on some LGVs

NA
EUR 1100–1700
option20–25 % more
expensive thandiesel engines
Additional EUR
30 000–40 000
for HGV, EUR
5 000–6 000 forvans.

2–10 %(depending
on number ofaxles fitted)
7–8 % (based
on % oftrucks with
underinflated tires)
10–20 % oftrailer
fuel
use
40 %,
depending onelectricity
source6 %,depending on
driving cycle
20 % urban
driving, 7 %long-distancedriving
7–10 %
10–15 %

Over 60 %Source: Ricardo (2010).

Achieved environmental benefits
Fuel and CO2 reductions attributable to various improvement measures are listed in Table 2.80.
In particular, use of natural gas and biogas to power HGVs could result in CO2 savings of 1015 % and over 60 %, respectively (Ricardo, 2010). For natural gas and biogas powered trucks,
emissions of all the major air pollutants should be lower than comparable petrol or diesel
engines.
Ricardo (2010) reports fuel consumption reductions of up to 24 % during trials at constant speed
for aerodynamic trailers with integrated vehicle aerodynamic systems, and real-world fleet
savings of 9 % achieved by DHL and 16.7 % achieved by STD. Aerodynamic trailers used by
M&S, developed in 2008/9, reduce fuel consumption by 6 % (M&S, 2010).
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Chapter 2

Table 2.81 presents the large reductions in emissions associated with higher EURO standards
for heavy duty diesel engines used in HGVs, in particular for NOx and PM.

Table 2.81:

Emission limit values for heavy duty diesel engines associated with various EUROstandards, expressed per kWh engine output, and year of introduction

Tier

Date

Test

EURO IEURO IIEURO IIIEURO IVEURO VEURO VI

1992
1998
2000
2005
2013
2013

ECE
R-49
ESC
+
ELR

CO
g/kWh
4.5
4.0
2.1
1.5
1.5
1.5

HC

NOx

PM

1.1
1.1
0.66
0.46
0.46
0.13

8.0
7.0
5.0
3.5
2.0
0.4

0.36
0.15
0.1
0.02
0.02
0.01

Smoke
m-1

0.8
0.5
0.5

NB: Values are for steady state testing (ECE R-49), European Stationary Cycle (ESC) and European Load Response(ELR). From summary data presented in DieselNet (2009).

Appropriate environmental indicator
Vehicle efficiency is reflected in distance-normalised indicators specified in Table 2.68. Tworelevant indicators that can be used to monitor the effect of improved vehicle design are:••l/100 km (vehicle fuel consumption)
kg CO2 eq./tkm.

Neither of these indicators isolates the effect of vehicle efficiency improvements from otherfactors, in particular loading efficiency. Improved loading efficiency will negatively affect theformer indicator and significantly positively affect the latter indicator (Figure 2.97 in Section
2.3.4.5). For example, the average specific diesel consumption of 0.0122 l/tkm reported by
Coop Switzerland is highly dependent on loading efficiency. The effect of alternative fuel use(biogas, electricity) requires reporting of lifecycle kg CO2 eq. per km or tkm.
Vehicle performance in terms of air pollution is not measured directly, but can be inferred fromvehicle EURO emission standard compliance (Figure 2.100). Figure 2.100 presents data fromsome leading retailers on the percentage of their fleets complying with EURO 4 and EURO 5
emission standards. Kingfisher's entire fleet complied with at least EURO 4 standards in 2009,
but 90 % of Albert Heijn's fleet was compliant with EURO 5 (and PIEK) (see Case study 2.18).
Albert Heijn plans for 100 % EURO 5 and PIEK compliance in 2010.
Similarly, the percentage of low-noise vehicles that enable more efficient night-time deliveries,
and the percentage of alternatively fuelled vehicles (excluding biodiesel and ethanol owing tosustainability concerns), are useful indicators of improved environmental performance.
Application of aerodynamic improvements and fitting of low rolling resistance tyres also
indicate improved efficiency. Thus, five indicators for the environmental performance of thedelivery fleet are:
•
•
•
•
•

% vehicles within transport fleet compliant with different EURO classes% vehicles, trailers and loading equipment compliant with PIEK noise standards, or
equivalent standards that enable night-time deliveries with% vehicles in transport fleet powered by alternative fuel sources, including natural gas,
biogas, or electricity% of vehicles within transport fleet fitted with low rolling resistance tyres% vehicles and trailers within transport fleet designed or modified to improveaerodynamic performance.

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Chapter 2

Proposed benchmarks of excellence for this technique are:•••

HGV fuel consumption less than 30 l/100 km
100 % vehicles at least EURO 5 compliant
100 % vehicles, trailers and loading equipment compliant with PIEK noise standards, or
equivalent standards that enable night-time deliveries
operation of alternatively fuelled vehicles (natural gas, biogas, electric)
100 % vehicles fitted with low rolling resistant tyres
100 % vehicles and trailers designed or modified to improve aerodynamic performance.

•••

Percentage transport fleet

100
90EURO 4 or higher

80

EURO 5

70
60
50
40
30
20
10
0
Albert Heijn

Figure 2.100:

Carrefour

Coop Switz

Coop Sweden

Kingfisher

MigrosM&S

The percentage of retailer fleet trucks compliant with EURO 4 and EURO 5
emissions standards

Cross-media effects
There are no significant cross-media effects likely to arise from measures to improve vehicle
efficiency.
For electric vehicles and biofuel, the impact of electricity generation and biofuel production
should be accounted for and compared with the impact of the supply and combustion of fuelused in conventional vehicles. This may require a full 'well to wheel' LCA for proposed andconventional vehicles/fuels.
Operational data
The actual fuel efficiency and environmental benefits associated with the measures listed inTable 2.80 are highly dependent on vehicle use and operational conditions. For example,
aerodynamic improvements will achieve significant fuel savings for vehicles that frequently
travel at higher speeds, whilst hybrid and electric vehicles will achieve significant fuel/energy
savings for vehicles that spend most of their time in urban areas making frequent stops.
Meanwhile, biogas is a promising 'green' fuel for trucks, but widespread use will depend on thedevelopment of biogas availability and distribution.
Compressed natural gas, LPG and biogas are considerably less dense fuels than petrol and diesel.
Trucks running on these fuels require fuel tanks that are of higher capacity (up to four times
higher) than for conventional trucks and that are reinforced to maintain necessary fuelpressurisation. Appropriate specialised refuelling infrastructure is required, at least at truck
depots, but also along long-distance transport routes. Similarly, electric delivery vehicles (vans)

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will require recharging within vehicle depots, as recharging networks are in the early stages ofdevelopment.
Case study 2.18 provides insight into one example of vehicle specification that had a significant
positive effect on operational efficiency and was rolled out across a retailer's entire fleet –'silent' running trucks for Albert Heijn.

Case study 2.18: Albert Heijn's investment in silent trucks to improve transport efficiency
The logistics of city deliveries
Albert Heijn stores are predominantly located within densely populated urban areas in The Netherlands.
Depending on the specific location, there are restrictions on the size of delivery vehicle allowed within
the city centre at specific times, and in all instances standard (non-quiet) deliveries are not allowed before
07:00. Consequently, Albert Heijn must make a high proportion of deliveries to city-centre stores duringmorning rush hour traffic, with smaller vehicles, thus increasing delivery times and costs.
PIEK standard
The Dutch government introduced the current PIEK standard in 2004. To comply with this standard,
products (e.g. trucks, trailers, loading equipment) must emit less than 60 dB(A) at 7.5 metres from thesound source. All handling and delivery equipment must comply with this standard to be deemed suitablefor off-hours delivery. This represents a significant improvement over standard equipment. Tail lifts
typically emit 83 dB(A), vehicle reversing warning systems 110 dB(A) and refrigeration systems 69–74
dB(A).
Trial
In 2007, Albert Heijn participated in a trial involving 1000 morning (05:00–07:00) and evening (19:0002:00) deliveries to 10 shops in nine cities over three months (Albert Heijn & PIEK, 2008). There wasjust one complaint from a resident during the trial. Meanwhile, the results demonstrated two major effects
that could significantly improve operating efficiency:
1. Faster journey times owing to less congestion. The average journey time on a 35 km route (Tilburg to
Eindhoven) was reduced from 1.5 hours to 0.5 hours, and fuel consumption from 43 to 33 l. A 30 %reduction in costs was achieved.
2. Opportunity to use larger vehicles. In place of three 10 m long rigid trucks used during the day, it waspossible to use a single 16.9 m tractor trailer for morning and night time deliveries. Journey time also
decreased from 2 hours to 1.3 hours. Consequently, average fuel consumption over the 75 km trial
journey decreased from 74.25 l to 24.75 l and total costs decreased by 75 %.
Implementation
Based on the 2007 trial, Albert Heijn estimated that investment in silent equipment increases capital costs
by 15 %, but reduces overall cost by more than 20 %. Since the trial, Albert Heijn have been expanding
their use of PIEK-compliant trucks in off-hours deliveries. In 2009, 90 % of Albert Heijn's delivery trucks
were PIEK-compliant, with a target for 100 % PIEK compliance in 2010.
By extending the delivery window and increasing allowable size in city centres, upgrading to 'silent'
trucks facilitates modal shifts (Section 2.3.4.4) and optimised route planning (Section 2.3.4.6).

Applicability
All retailers, suppliers and T&L providers operating trucks can specify vehicle design features,or retrofit modifications, to improve vehicle efficiency. Purchasing HGVs capable of running on
CNG and biogas can result in large emission savings at acceptable costs, but may be restrictedby refuelling infrastructure available within different member states. Similarly, the purchase ofelectric delivery vehicles is highly dependent on available recharging infrastructure.
The greatest benefits associated with silent trucks are realised where the legislative restrictions
on standard trucks are greatest. Retailers with a high percentage of stores in built-up residential
areas, especially city centre locations, are therefore likely to benefit most from silent trucks.
Such retailers also have the greatest opportunity to achieve benefits from the use of hybrid andelectric vehicles.

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Economics
As indicated in Table 2.80 vehicle modifications can result in substantial fuel and cost savings.
The payback periods for most of the retrofit investment costs specified in Table 2.80 are
favourable, often shorter than two years based on conservative estimates of potential fuelsavings and average European truck operations.
For some of the vehicle purchasing options, especially alternatively powered vehicles, thepayback periods are highly dependent on national fuel taxation and road tolling policies - inparticular taxation on gas-based fuels relative to petrol and diesel.
However, as indicated in Case study 2.18, investment in low-noise transport and loading
equipment increased capital costs by 15 %, but reduced overall transport costs by more than
20 %.
Driving force for implementation
The driving forces for this technique are:
•
•
•
•
•

social and environmental responsibility
potential efficiency improvements
reducing risk associated with energy price volatility
reducing risk associated with future increases in road and air-freight taxation
improving image and reputation.

Reference retailers
Albert Heijn, Coop Switzerland, M&S, Migros.
Reference literature•
Albert Heijn, Aware and Engaged: Employee magazine 2009,http://www.schuttelaarpartners.com/download/210, 2010.
•
Albert Heijn & PIEK, Presentation on SenterNovem project on silent truck deliveries,
http://www.bestufs.net/download/conferences/Athens_June08/Presentatie_AH_Athene.pd
f, 2010.
•
Ahold, Sustainability Report 2009, http://www.ahold.com/reports2009, 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010•
DieselNet, Emissions standards European Union: heavy-duty diesel truck and bus
engines, http://www.gsgnet.net/gsgpdfs/09_EmisStandrds.pdf, 2009.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
M&S, How we do business report 2010. Doing the right thing,
http://annualreport.marksandspencer.com/downloads/M&S_HWDB_2010.pdf, 2010.
•
Ricardo, Review of low carbon technologies for heavy goods vehicles. UK Department
for Transport, London, http://www.dft.gov.uk/pgr/freight/lowcarbontechnologies/, 2010.
•
Sainsbury's,
Corporate
Responsibility
Report,2010,
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010.
•
Volvo, Major test reveals that simple measures can cut fuel consumption by almost 15
per
cent,
http://www.volvogroup.com/group/global/engb/newsmedia/corpnews/_layouts/CWP.Internet.VolvoCom/NewsItem.aspx?News.ItemI
d=87944&News.Language=en-gb,
2010.

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2.4
2.4.1

Best environmental management practice concerning
waste
Chapter StructureThis section provides information to retailers concerning their waste management. The aim isfocused on those management activities under direct control of the retail company, althoughsome issues covered by the description are also referring to indirect aspects. An introduction
about waste management and the related European legislation is provided in Section 2.4.2
where an overview on the commitments of retailers in waste and packaging materials
management is also included. The scope is explained in Section 2.4.3. This section also reflects
the types and amount of generated wastes with a special focus on food waste production.
Section 2.4.4 mentions the most important drivers detected for the improvement of waste
management.
Section 2.4.5 provides the rationale for the sequence of the described techniques, based on thewaste hierarchy according to the waste Directive. The reduction and minimisation of food waste
is described in Section 2.4.6.1. Best practices on the integration of waste management in retailer
activities, using, for instance, reverse logistics and local or regional partnerships, are describedin Section 2.4.6.2. Return systems from customers are described in Section 2.4.6.3 and thetreatment of food waste by anaerobic fermentation is described in Section 2.4.6.4.

2.4.2

Chapter Introduction

Retailers have to comply with a number of directives, regulations and other mandatory
structures. In view of more restrictive and demanding environmental legislation, increasing
costs may be expected leading to a need to go for best management and proactive schemes (Pitt,2005). On top of that, given the cost of waste management, there is a strong business case to
reduce wastes. There would be a better business performance if less waste is generated, leading
to an increased competitiveness. Additional benefits are derived from improved management
and control of retailers operations and improved corporate image. As well, especially for SMEs,
the local aspects of waste management should make a good chance to improve corporate
reputation, not only to customers but also to public authorities. Disposal of wastes (e.g. landfill
and incineration) will have higher costs and more restrictive requirements of compliance, so
best environmental options (i.e., the hierarchy prioritisation according to waste Directive)
become the best business option.
Retailers are, directly or indirectly, participating in the generation of a huge amount of wastes
generated by households, by themselves or by their suppliers. The action taken by retailers toprevent and treat waste is essential, but also their role in the supply chain and their directcontact to customers is really important and influential. As well, Pitt, 2005, identified two areas
where retailers can be helped to achieve their waste reduction, reuse or recycling objectives: theeconomics of waste management facilities, controlled by private or public funding and the
public awareness and education, which have influence on their employees, managers andcustomers. For the latter, retailers should play an active role.
In the case of small enterprises, strategic partnerships and the establishment of common
approaches have lead to decreased waste management costs (Tryantafyllou et al., 2010). This is
usually the case for small enterprises belonging to the same commercial centre, same street,same economic activity, etc. Setting up a common waste management structure is easily
achievable and produces economical benefits. For the best implementation of these schemes, theimplication of all actors (tenants, owners, distributors, suppliers, local authorities, etc.) is highly
relevant as it can increase recycling and reuse rates, minimise landfilling and reduce costs.

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Retailers are waste producers, waste holders and, in some cases, they can act as dealers or
brokers. They have to fulfil a number of European Directives which the Member States had to
implement:
•
•
•
•
•
•

Directive 2008/98/EC on waste and repealing certain Directives.
Decision 2000/532/EC establishing a list of hazardous wastes.
Directive 2002/96/EC on waste electrical and electronic equipment.
Regulation 1774/2002 laying down health rules concerning animal by-products notintended for human consumption.
Directive 94/62/EC on packaging and packaging waste and the amendment of Directive
2004/12/EC.
Other Directives and initiatives relevant for retailers: Directive 1999.31/EC on landfill of
waste, Directive 2000/76/EC on waste incineration, Directive 2006/66/EC on batteries
and accumulators and waste batteries and accumulators, the Thematic Strategy on thePrevention and Recycling of waste, etc.

The Directive 2008/98/EC on waste defines 'waste' as any substance or object the holder
discards or intends or is required to discard; and 'waste management' is the collection, transport,
recovery and disposal of waste, including the supervision of these operations and actions ofdealers or brokers. This directive also defines the hierarchy of waste management. Priority
should be given, sequentially, to prevention, preparing for re-use, recycling, other recovery (e.g.
energy recovery) and disposal:
•
•
•

•

•
•

prevention: measures taken before a substance, material or product has become a waste(e.g. improved preservation, monitoring, etc.)
preparing for re-use: all operations of checking, cleaning or repairing by which products
become re-usable (e.g. cleaning and repairing operations).
re-use: any operation by which products or components that are not waste are used again
for the same purpose for which they were conceived (e.g. re-use of plastic boxes, pallets
and other packaging). This operation is not covered in the waste Directive but it isrelevant for the waste management of retailers.
recycling: waste is reprocessed into products or materials, which purpose is the same orother than the original product. Processing of organic material is considered under thisterm but not energy recovery and production of fuels or backfilling (e.g. one-way glass
bottles).
recovery: any operation which results is to replace other materials by waste serving for a
useful purpose, or waste being prepared to fulfil a function (e.g. composting, anaerobic
fermentation, etc.)
disposal: any operation which is not recovery, even if the operation is associated with therecovery of energy.

This hierarchy should be applied to waste management to achieve the best overall
environmental performance.
The Directive uses the concept of extended producer's responsibility. Producer of the product is
any natural or legal person who professionally develops, manufactures, treats, sells or imports
products. Measures concerning extended producer responsibility may be implemented by
Member States, for example, the acceptance of returned products and of the waste after the useof those products, subsequent management and financial responsibility for that and obligations
to provide publicly available information on the extent which the product is re-usable.
As well, the original waste producer or other holder should carry out the treatment of waste, or
it is performed by a dealer or public or private waste collector. Nevertheless, the general rule isthat the responsibility for carrying out a complete recovery or disposal operation shall not bedischarged from the original producer. It can be shared or delegated only at exceptional cases.

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With respect to waste prevention, the European Commission lays the emphasis on following
objectives:•••

foster durable, reusable and recyclable products
change current consumption patterns
waste prevention and decoupling objectives based on best available practices

For re-use and recycling, the Directive prescribes following targets for 2020:••

the fraction of waste prepared for re-use and recycling (at least paper, metal, plastic, glass
form households and other origins) should be increased to 50% by weightthe fraction of waste prepared for re-use, recycling and other material recovery of nonhazardous construction and demolition waste should be increase to 70% by weight.

According to Article 29, Member States shall establish national waste prevention programmes.
It also provides examples of waste prevention (Annex IV of the Directive). Some examples ofthe proposed measures, to be implemented by Member States and relevant for retailers, aresummarised below:
•
•
•
•
•
•
•

The promotion of eco-design
The provision of information on waste prevention techniques.
The use of voluntary agreements, consumer/producer panels or sectoral negotiations inorder to set their own waste prevention plans or objectives or correct wasteful products or
packaging.
The promotion of creditable environmental management system, including EMAS and
ISO 140001.
The promotion of creditable eco-labels.
Incentives for clean purchases
Agreement with industry, such as the use of product panels such as those being carriedout within the framework of Integrated Product Policies or with retailers on theavailability of waste prevention information and products with a lower environmental
impact.

Directive 2002/96/EC on waste electrical and electronic equipment (WEEE) aims, as a firstpriority, the prevention of waste electrical and electronic equipment and its reuse, recycling andother recovery formats. The objective is to reduce the amount of waste and to improve theperformance of all operators involved in the life cycle of electrical and electronic equipment.
One of the main concerns of the WEEE management is the content of hazardous substances inthese wastes. The introduction of producer responsibility is the mean to encourage design
techniques taking into account or facilitate repairing, reuse, dismantling, recycling and recovery.
Retailers are involved directly in the life cycle of such equipment and in the management of
WEEE, irrespective of the selling technique, including distance or electronic (online) selling.
Separate collection is one requisite of this Directive. The role of retailers is defined as
distributor, as they supply the equipment to the customers who are going to use it. But, as well,
the role of some retailers can be considered as 'producer', as they sell electronic equipment
under their own brand. The target for the collection rate in the original formulation of the
Directive is 4 kg per capita and year, but this value seems to be not enough, as a huge amount of
WEEE are generated and illegal trade of WEEE to third countries continues. The new target
proposed by the Commission is the 65% of the average weight of electrical and electronicequipment placed on the market over the two previous years in each Member State andincreasing recycling rates for all the WEEE categories by 5%.
As distributor, the retailer is the responsible for ensuring that waste can be returned free ofcharge by the customer when supplying a new product. As producers, retailers can set up takeback systems from private households and they should set up systems to treat WEEE with theBest Environmental Management Practice in the Retail Trade Sector287

Chapter 2

best available technique. The list of products to be managed under this Directive is shown inAnnex I-B under the following categories:
•
•
•
•
•
•
•
•
•
•

Large household appliances: refrigerators, freezers, washing machines, microwaves,
stoves, radiators, etc.
Small households' appliances: vacuum cleaners, toasters, fryers, irons, etc.
IT and telecommunication equipments: personal computers, printers, laptops, etc.
Consumer equipment: radio, television, cameras, musical instruments, etc.
Lighting equipment: fluorescent lamps, luminaries except from households, etc.
Electric and electronic tools: saws, drills, sewing machines, etc.
Toys, leisure and sports equipment: electric trains, video game consoles, etc.
Medical devices: radiotherapy equipment, cardiology, dialysis, etc.
Monitoring and control instruments: smoke detectors, heating regulators, etc.
Automatic dispensers: hot drinks, money, etc.

Directive 94/62/EC on packaging and packaging waste covers all packaging materials andwastes placed on the market. The first priority in this aspect should be the prevention of
packaging waste and, as additional fundamentals, reuse and recycling and other forms ofrecovery. Hence, it also aims to reduce the final disposal of packaging wastes. Article 6, setting
targets for recovery rates for packaging wastes, was amended by directive 2004/12/EC. Thesetargets are:
•
•
•
•
•
•

55 – 80 % rate of recycling of packaging waste
60 % recycling for glass in packaging waste
60 % recycling for paper and board
50 % recycling for metals
22.5 % recycling for plastics (accounting only for the fraction recycled back in plastic)
15 % recycling for wood.

Regulation 1774/2002 laying down the rules concerning animal by-products not intended
for human consumption establish that certain animal by-products should be collected
separately and according to the rules of this regulation. Catering wastes (foodstuffs and meat or
fish coming from food retailers) are not considered unless it is destined to animal consumption;
it is used for biogas or for composting or it comes from transport operating internationally.
Retailers should collect this fraction of waste foodstuff if the final treatment for this waste
fraction is the fermentation to obtain biogas or compost. Else, disposal of this kind of waste is
not recommended as it would be contrary to the priority lists proposed by the waste directive.
References•
Pitt, M. 'Trends in shopping centre waste management', Facilities, 23, 2005, pp522-533•
Triantafyllou, M.K., Cherret, T.J. 'The logistics of managing hazardous waste: a casestudy analysis in the UK retail sector'. International Journal of Logistics: Research andApplications, 13, 2010, pp 373-394

2.4.3

Scope of this Chapter

In this chapter, waste management is considered as a direct environmental aspect of retailers'
activities, i.e. those aspects under direct control of the retailer. Waste generation is unavoidable
at stores, especially those generated because of transport activities. The influence of retailers in
the waste management of the supply chain is covered by Section 2.2. As well, the influence ofretailers on consumers' behaviour, especially for waste prevention, is covered by Section 2.7.
According to the statistics published by Eurostat and the study made for SME and theenvironment in Europe (Constantinos et al., 2010), European retailers contribute to 1.5 % of
total waste generation in Europe and about 20 % of the waste generation in the services sectors
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Non-hazardous waste

From Retail Trade sector

108Total Waste Generation, 2008, EU27, 10 tonnes(Nace Codes from G to U). The relative importance can be observed in Figure 2.101 for thegeneration of non-hazardous wastes in Europe.

9
8
7
6
5
4
3
2
1
0
Agriculture,
forestry andfishing

Figure 2.101:

Mining andquarrying

Manufacturing Electricity, gas, Water supply;
steam and air
sewerage,conditioning
waste
supplymanagement
andremediation
activities

Construction

Services(except
wholesale ofwaste andscrap)

Wholesale ofwaste andscrap

Non-Hazardous Wastes Generation in Europe for several sectors.

Although the contribution of retailers’ activities to waste generation is not as important as forother sectors, retailers’ waste management seems to be very relevant because of:•••the great amount of packaging materials,
the great influence of retailers to households and to consumer behaviour,
the role of retailers in food waste management and in animal by-products generation.

The disclosure of waste types can vary when assessing different retailers, but also waste
generation and type of wastes can significantly vary among different stores of the same retailers.
Figure 2.102 shows the average waste generation of several sampled retailers and stores and the
distribution per type of waste. Values shown in Figure 2.102 were collected from Retailers
Sustainability Reports, EMAS environmental statements or information provided for theelaboration of this document. Comparability among values is not assured, as the monitoring
methodologies vary from on retailer to another. Absolute values, ranging from 40 to 160 kg ofwaste per m2 of sales area, should be taken as a rough estimation of the specific waste
generation of retailers. Nevertheless, the heterogeneity of the values presented in Figure 2.102
reveals that, almost for every retailer, there are three main waste types:••

Organic waste, which can usually be processed for anaerobic fermentation or composting.
These wastes can be assumed as one third of the total (only for food retailer activities).
The quantities generated by the non food stores are low. The difference can be assumed
as the organic waste generation performed by distribution centres or other retailer
activities. As well, the generation of food waste varies depending on many circumstances:local aspects, rate of refrigerated products, sales format, etc.
Packaging waste, which is usually conducted to recovery or recycling processes. As well,re-use of materials is becoming more important to reduce waste generation. As shown in
Figure 2.102, packaging waste usually corresponds to paper, cardboard, plastic, wood andmetal materials. Glass is not a significant fraction of total waste generation unless theretailer is controlling a take-back system for glass.

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Chapter 2•

200

Organic

Cardboard and paper

Plastic

Wood

Metal

Other (MSW)

180
160
140
120
100
80
60
40
20

1

2

3

4

St
or
e

St
or
e

St
or
e

et
a
R

St
or
e

et
a
R

ile
r5

ile
r4

et
a
R

ile
r3

et
a

R

Figure 2.102:

R

ile
r1

ile
r2

0

et
a

2

Waste generation kg/m sales area

Other fraction assumable as municipal solid waste. Non-recovered wastes are included
within this category. They are, usually, disposed off in landfills or incinerated.

Wastes generation per category for different retailers and sampled stores.

The final destination of wastes managed by retailer depends on the nature of the waste, on the
management capabilities of the retailer, on the type of facilities of third parties to treat wastes
and the load capacity of these waste treatment facilities. As shown in the introduction of thischapter, section 2.4.2, existing legislation and the commitment of the sector are to reduce waste
and to re-use, recycle, or recover more, minimizing the amount of waste disposed off in landfills
but also in incineration plants. Figure 2.103 shows the average waste treatment distribution of
two important food-retailers in Europe. As observed, retailer 1 is disposing off almost 42% of
total waste generated, while retailer 2 is disposing 15% of wastes in incineration plants and is
not landfilling any waste, which is a big progress. Retailer 1 is composting or fermenting about
17% of wastes (corresponding to the food waste fraction), and retailer 2, about 28 %. The
accounting for recycled materials does not usually differentiate re-used materials. This rate isincreasing among retailers all over Europe and the amount of wastes sent to landfill is being
reduced, although the general trend is to increase the overall amount of wastes. Once a waste
should be disposed off, preferred options should be incineration plants under the IPPC Directivewith energy recovery, as they represent best practice for unavoidable waste.

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Recycle, Re-use

Compost/ferment.

Landfill

Incineration

Retailer 1

Incineration
13%
Incineration
15%

Retailer 2

Recycle, Re-use
41%

Landfill
29%

Recycle, Re-use
57%

Compost/ferment.
28%

Compost/ferment.
17%

Figure 2.103:

Disclosure per type of waste treatment for two European retailers

A high recycling rate does not necessarily mean a good waste management system. Best
performers should give priority to waste prevention and, then, achieve the best re-use andrecycling rates and the minimized disposal on landfills. Figure 2.104 shows the performance ofseveral European retailers, assessed as the relation between recycling rate and specific waste
generation (per unit of sales area and year) and the bubble size indicating the sales per m2,
which may represent the difference between sales format.

Overall Recycling rate

100%

80%

B

60%

A

40%
Trend line

20%

Bubble size:
sales per m2

0%
0.0

50.0

100.0

150.0

200.0

250.0

Specific waste generation, kg/m2yr
Figure 2.104:

Recycling rates vs. specific waste generation for several European retailers.

As shown in the Figure, best retailers are achieving high recycling rates at relatively low
specific waste generation. Nevertheless, different sales formats lead to different amount of sales
per unit of area. The two examples of retailer A and B shown in Figure 2.104 represent two
Best Environmental Management Practice in the Retail Trade Sector291

Chapter 2

different sales formats: retailer A has higher turnover per m2, which may be the reason of highspecific waste generation (more than 150 kg/m2yr). Retailer B is generating more than 100
kg/m2yr with less sales per m2. In order to increase the comparability among retailers, thegeneration of waste per EUR million of turnover is evaluated in Figure 2.105. As shown,retailer A is generating half of the wastes generated by retailer B. Therefore, a high turnover per
m2 may have a higher specific waste generation but with a really high performance in waste
management. The trend shows that high recycling rates are achieved, usually, in retailer
producing less waste per turnover. So, integrating prevention measures, to reduce waste
generation, with best waste management practice, to increase recycling rate, would produce best
results, also from the economic point of view.

100%

Implement preventing
meausuresGood performers

Overall recycling rate

90%
80%

B

70%
60%

A

50%
40%
30%
20%
10%

Implement separate collection
measures

0%
0.00

10.00

20.00

Trend line

30.00

40.00

Waste Generation kg / EUR mill yr
Figure 2.105:

Overall recycling rate vs. Waste generation per EUR million turnover

The generation of hazardous wastes from retailers' activities is of minor relevance. The amountof wastes generated depends on many factors, essentially on the store activities on waste
management. As an example, Figure 2.106 shows the distribution of hazardous wastes
generated in two similar stores of the same retailer and at the same region. Actually, store 1 isgenerating about 2-3 kg/m2yr and store 2 about 13 kg/m2yr. Store 2 has a garage and a fuelstation, while store 1 has a fuel station but no garage.

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Chapter 2
100%
90%

Batteries

80%
Fuel wastes

70%
60%

Toner

50%

Aerosols

40%
Fluorescent tubes

30%

Packaging containing
Hazardous Waste

20%
10%
0%

Figure 2.106:

Store 1

Store 2

Hazardous wastes generated in two different stores from the same retailer

Retailers should declare as a separate fraction of hazardous waste the amount of waste electricand electronic equipment (WEEE), which should be collected separately in accordance toDirective 2002/96/EC. The stores of the example shown in Figure 2.106 manage WEEE
differently: store 1 is collecting about 5 time less electric and electronic wastes than store 2,
while both stores have similar sales area and sales format.
For food retailers, it is quite important to control the organic waste fraction coming from animal
by-products, regulated under the regulation 1774/2002, and the rest of food wastes, comingfrom outdated or damaged food products. A study on food waste at European level (BioIS,
2010) states that around 25% of purchased food is discarded at households. Retailers generate
about 4% of food waste, 14% come from food services and catering, 39% from manufacturingindustries and 43% from households. Although the study is made on estimations of available
data, it reveals the huge amount of waste food in Europe, where the contribution of retailers isabout 7 to 9 kg per capita and year from a total of about 180 kg/m2. Spain Ministry published
the White Paper on animal by products on 2007. The analysis on the origin and generation ofanimal by-products estimated the flows values for by-product category 3 (according toregulation 1774/2002). With this estimation, in combination to average consumption and foodwaste production patterns, a mass balance was drafted as shown in Figure 2.107.

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Figure 2.107:

Animal by-products and food waste flows in Spain

Values shown in Figure 2.107 are estimations that should be taken with caution, as many
limitations on the referenced studies were observed. Nevertheless, it is noticed that retailers'
generation food waste is not relevant if compared to other actors within the chain. Retailers canact in three different directions: influencing food suppliers to minimize wastes (e.g. throughapplication of demanding standards), preventing in-house food waste generation and influencing
customers to reduce food waste generated at households, e.g. through responsible publiccampaigns.
The role of retailers in the implementation of these directives is highly important. Waste
management is a direct impact: retailers are producers of a high amount of wastes, mainly frompackaging materials. As well, waste management made by suppliers can be influenced (seesection 2.2) and retailers' influence on consumers is also relevant (see section 2.7). At European
level, the commitment shown by retailers to improve their environmental management of wastes
is part of the objectives of the Retail Forum(22), which is considered to represent a significant
contribution to the implementation of the EU Action Plan on Sustainable Consumption and
Production and Sustainable Industrial Policy (COM, 2008).

(22) http://ec.europa.eu/environment/industry/retail/index_en.htm

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As explained in section 2.1.2, The Retail Forum is a multi-stakeholder platform. It wasdeveloped with the aim of exchanging best practices on sustainability and to identify
opportunities and barriers of the achievement of sustainable consumption and production. In theframework of the Retail Forum, the Retailers' Environmental Action Programme (REAP) was
launched and some mechanisms were provided to enhance the dialogue with the European
Commission and other relevant stakeholders. It also makes available the commitments andactions of retailers in Europe. The REAP commitments database is located at the Commission
webpage (23). The list of commitments for energy efficiency was shown in Table 2.1. Retailers'commitments for waste management are shown in Table 2.82.

(23) http://ec.europa.eu/environment/industry/retail/reap/index_en.html

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Chapter 2
Table 2.82:

Examples from REAP commitments about waste management
Retailer

Category

Target description

Keywords

Asda Wal*MartWhat we sell

Reduce food packaging by 30% by end 2009 versus 2005.

food, packaging, waste management

FCD

What we sell

Further reduce the production of packaging waste by atleast 10% by 2009.

packaging, waste management

FCD

What we sell

Encourage the use of recycled materials in packaging(especially for retailer branded products), reach 75% ofrecycled materials for glass and cardboard paper.

packaging, waste management

Tesco

What we sell

Reduce unnecessary product packaging.

packaging, waste management

APED

How we sell

Encourage correct solid waste management in stores.

Asda Wal*Mart

How we sell

Asda Wal*Mart

How we sell

Auchan

How we sell

CEC

How we sell

Colruyt

How we sell

Coop Norway

How we sell

IKEA

How we sell

Kingfisher

How we sell

Achieve a 50% reduction in tonnes of store waste disposedper £ of retail sales by 2011/12 against the 2006/07
baseline.

waste management, waste recycling &prevention

Kooperativa Förbundet

How we sell

Increase the amount of recycled waste from stores andwarehouses

packaging, waste recycling & prevention

Send zero store waste to landfill by end 2010 for store
operations.
Zero waste to landfill by end 2010 for all store constructionwaste.
Improve waste management and reduce the environmental
footprint of its stores.
Obtain that companies know the environmental impacts ofthe construction materials used when renovating anddecorating and take these into consideration for future
renovations.
Keep on maximising recycling efforts and use of organic
waste for bio-methanation.
Develop model for increased recycling and improved waste
management practices in DCs and outlets.
Exploitation of 90% of waste by recycling and/or energy
recovery at stores and warehouses.

Best Environmental Management Practice in the Retail Trade Sector

waste management, waste recycling &prevention
waste management, waste recycling &prevention
waste management, waste recycling &prevention
waste management, waste recycling &prevention
sustainable construction/buildings, waste
management
waste management, waste recycling &prevention
waste management, waste recycling &prevention
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Retailer

Category

Target description

Keywords

Kooperativa Förbundet

How we sell

Decrease the physical destruction of goods (food waste etc),
in terms of sale value, by 10% to 2010.

waste management, waste recycling &prevention

Marks & Spencers

How we sell

No waste to landfill from M&S operations as well as from
M&S store construction programmes in the UK and Ireland.

waste management

Mercadona

How we sell

Recover and recycle all the carton, plastic and porexpan(plastic boxes that are used to transport fish) waste
generated in supermarkets and warehouses.

packaging, waste management

S Group

How we sell

To decrease grocery trade's losses by waste reduction

The Co-operative Group

How we sell

Reduction of the landfilled waste

Delhaize Group

Communication

Encourage recycling behaviour of customers of Alfa-Betaby installing recycling facilities at 28 of its stores

waste management, waste recycling &prevention

ANCC/Coop Italia

What we sell

Decrease packing waste production by the "3R" strategy

packaging, waste recycling & prevention

AuchanWhat we sell

Increase ecodesign on Auchan branded products.

packaging, product ecodesign

Coop Norway

What we sell

Environmentally friendly product packaging

packaging, waste recycling & prevention

El Corte Inglés

What we sell

Implement bio-degradable bags in certain areas of El Corte
Ingles' activities and, for general use in every store
department, different types of reusable bags.

bags, packaging

Leroy Merlin, Spain

What we sell

Sell in the near future reusable and biodegradable plasticbags to encourage our customers to stop using disposable
plastic bags.

bags, packaging

Lidl

What we sell

Annual reduction of CO2 of 8.800 tons by using shoppingbags consisting of recycling material.

bags, packaging

S Group

What we sell

Environmentally friendly product packing

packaging, waste recycling & prevention

The Co-operative Group

What we sell

Design-out packaging waste growth and deliver absolute
reductions in packaging waste

packaging, waste management

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Retailer

Category

Target description

Keywords

The Co-operative Group

What we sell

Use a wide range of bags for life and pilot compostablebags in certain areas

bags, packaging

Asda Wal*Mart

How we sell

Reduce environmental impact of carrier bags by 50%.

bags, packaging

C&A

How we sell

Sell corporate Bio Cotton bags.

bags, packaging

Carrefour

How we sell

Eliminate the use of free disposable checkout bags andpromote the use of reusable carrier bags.

bags

Delhaize Group

How we sell

Ban of all plastic non reusable carrier bags at check outs in
Belgium supermarkets and strong promotion of reusable
alternatives.

bags, packaging

El Corte InglésCommunication

Campaign for reusing and recycling of bags, in order toincrease percentage of recycled items coming from yellow
container-banks (for light-weight containers).

bags, packaging

Marks & Spencers

Communication

Reduce bag use by 33%.

bags, packaging

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References•
BioIS, Preparatory Study on Food Waste Across EU27, Report for European
Commission, DG Environment, 2010.
•
Constantinos, C., Sorensen, S.Y., Larsen, P.B., Alexopoulou S., et al., SMEs and theenvironment in the European Union, PLANET SA and Danish Technological Institute,published by European Commission, DG Enterprise and Industry, 2010.
•
European Commission, Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Comité and the Committeeof the Regions on the Sustainable Consumption and Production and Sustainable
Industrial Policy Action Plan, COM(2008), 397.
•
Ministerio de Agricultura, Pesca y Alimentación, Libro Blanco de los Subproductos deOrigen Animal No Destinados al Consumo Humano (SANDACH), Ed. By Ministerio de
Agricultura, Pesca y Alimentación, www.sandach.com.es, 2007.

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2.4.4

Drivers of retailer waste minimisation (prevention, re-use, recycling
and other recovery operations)

The development of integrated waste management policies within the business structure has
important benefits for the company. Waste prevention has a direct positive impact on costs: lesswaste means less expenditure for treatment or collection/re-use/recycling systems or disposal
and, also, less waste means higher efficiency on resource management, which can produce
important cost-savings for the company.
As explained above, retailers have to respect a number of regulations and waste-related
legislation. The extended producer responsibility also influences their activity and they shouldhave implemented mechanisms to manage wastes affected by this issue. Re-use of secondary
and tertiary packaging materials can reduce drastically the waste generated from packaging. As
well, disposal costs are becoming higher so waste minimization would be more attractive fromthe economic point of view.
Main drivers leading retailers to implement integrated waste management in their companies
are:
•
•
•
•
•
•
•

Reduce costs lead to improved competitiveness.
Generated knowledge and expertise. They would also help to improve insight into waste
generation aspects.
Synergies with other management systems would be established.
Decision-making process would be improved.
Better response to existing or future regulations through anticipated actions.
Better preparation for waste treatment fees increases
Better public image and reputation

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2.4.5

Techniques portfolio

In this section, the approach to present best environmental management practices is explained.
Some of them are not single techniques, but they summarize the best available practices for the
management of wastes for all the aspects of a retailer. The organization of the described
techniques has been made according to the prioritization of waste management as laid down in
the Waste Framework Directive:
•
•

•
•
•

prevention: waste prevention techniques are described in section 2.4.6.1. Main focus is
the avoidance of food waste generation through management practices.
prevention, preparing for-reuse, reuse, recycling, recovery, etc: an overview of best
performance of integrated waste management is given, as described in section 2.4.6.2.
This section describes best performers management practices, focused on retailers
activities at stores and the logistic issue.
recycling: customer return systems are described. Many schemes already exist in Europe
and one example is given through PET and PE bottles take-back systems in section
2.4.6.3.
recovery: food waste recovery as biogas and/or compost is an extended operation among
best performers in Europe. Technical description is given in section 2.4.6.4.
disposal: as landfill or incineration of wastes should be minimised in Europe, no bestpractice dealing with these options are provided. Minimisation of disposed waste is aconsequence of the application of best practices in waste management priorities.

The information provided in this chapter has been collected through different mechanisms:••••

Information provided directly by retailers. Relevant European retailers have provided an
important amount of information to develop this document. Some of the provided data
were confidential and the information can be presented in an anonymous manner.
Information about retailers' initiatives publicly available. For example, joint initiatives as
the Retail Forum or companies´ sustainability and financial reports were used.
Relevant existing or ongoing studies in each knowledge topic and publicly available
literature.
Own research. Important conclusions were derived from EC own research activities.

The relation between retailers' activities and described techniques are summarized in Figure
2.108, where a simplified flow chart of wastes among different processes (at retailers or directly
connected to them) are shown. Waste streams directly managed or indirectly influenced byretailers are also presented. Grey dashed boxes are representing the area of activity affected by
the described practices (called technique 1, 2, etc. in the plot).

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Reverse logistics:
section 2.3

STORE

Technique 1

Suppliers
Re-useReverse Logistics

WASTE
GENERATION
Technique 2

Re-useInfluencing waste
generation of consumers:
section 2.7

Technique 2

Waste pre-conditioning

Re-useWaste Return fromconsumers

Waste
Minimization

Re-useTechnique 3

Supply Chain: section 2.2

Local Suppliers

Technique 2Distribution
CentreLocal Waste
Facilities

LegendCovered inthis document

Disposal

Waste
Recycled materials

Re-used material

Specific
Treatments(Recovery)
EnergyFigure 2.108:

Waste pre-conditioning

WASTE
GENERATION

Recycling
RecoveredMaterials

Recycled material

Waste collection
Recycled,
other purposes

Technique 4

Simplified waste flow chart of retailer activities.

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2.4.6
2.4.6.1

Best environmental management practices
Food waste minimization (prevention and recovery)

Description
The amount of waste generated by retailers is significant and relevant for the environmental
impact of retailers. For non-food retailers, wastes are usually coming from packaging materials,
as paper, cardboard or plastic, while the other most important fraction is municipal solid waste(MSW) for disposal. Food retailers are producing three main types of wastes, with a varying
distribution as a function of different sales concepts and management schemes: organic or foodwaste, packaging materials (plastic, paper, cardboard, metal, glass, etc.) and the remaining
fraction is usually considered as MSW for disposal but with a non-negligible part composed ofhazardous wastes.
The aim of this section of the document is to describe best practices carried out by food retailers
in minimisation of waste. The effort already made by retailers on preventing the use of
packaging materials and their reuse and recycling is huge. As seen in Figure 2.104, the rate ofwaste recycling for packaging materials is higher than 60% for most of the analyzed examples.
There is an important concern about food waste generation. In the UK, 115 kg of food waste isthrown away by households, from which 70 kg were avoidable (WRAP, 2008). As indicatedabove, a report from BioIS, published in 2010, estimates that in the UE, an average of foodwastes 180 kg per capita an year, from which 4% are generated by retailers (BioIS, 2010).
According to the figures of this report, the retailers are generating 1 kg of food waste per each
10 kg generated at households. The environmental consequences of the generation of foodwaste are relevant, but the ethical implications of avoidable waste are very serious: in the UK,
one third (by weight) of the purchased food is thrown away, the 61% of the total food waste isperfectly avoidable and other 20% is potentially avoidable. This example from the UK has alsoa very important economical impact: EUR 565 is lost per household and year or more than EUR
200 per capita per year.
Regarding food waste, retailers should prevent the generation of food waste at stores anddistribution centres, but should also take the chance to influence their supply chain and to help
customers to consume foodstuff with a minimum generation of avoidable food waste.
One of the concerns is how to define food waste. From a technical point of view, it would not be
waste till it overpasses its use-by date. For foodstuff that fits to human consumption, notsaleable food or surplus food are preferred terms. This fraction of foodstuff is produced within
retailers operation because of several reasons: mislabelling, order cancelation, end-of-line runs,
out-of-date promotions, damaged or incorrect packaging seasonal ordering, over ordering, newproduct testing, manufacturer errors, insufficient shelf life, unpredictable events (weatherchanges, incorrect quality), transit damaging, etc. An important fraction of this surplus or notsaleable food would become food waste under the responsibility of retailers.
Table 2.83 shows a set of example actions to be implemented by retailers (in their operations orby influencing others) to minimise food waste generation in all the elements of the productchain, from producers to consumers. In the table, there is an indication of the techniques alreadycovered by this document. Nevertheless, only a few are covered by this section, as many others
are already covered in other sections or are out of the scope. The attention in this section was
focused on the prioritization of food waste management, food conditions control (temperatureand humidity) and the correct management of refrigerated or frozen food. Next describedpractice, in section 2.4.6.2, explains how to integrate several waste management techniques that
also influence food waste management, as monitoring, establishment of local partnerships or
joint initiatives with supplies, other retailers, municipalities, consumers, etc., and the training
needs of staff.

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Table 2.83:
Who?

Set of example actions taken by retailers to prevent food waste in whole productchain (from suppliers to consumers)
What?

How retailers can influence/act?
Setting minimum criteria for the quality of food or demanding thefulfilment of standards (section 2.2)
Controlling strictly temperature and humidity of sensitive foodstuff(this section)

Suppliers /contractors

Minimise
food
waste
by
maximizing
quality and green
sourcing

Checking and/or monitoring waste generation (section 2.4.6.2)
Helping to set a list of priorities on food waste management andimplementing the means for each alternative (this section)
Establishing joint or partnership initiatives with local or regional
suppliers (section 2.4.6.2)…
Controlling strictly temperature and humidity of sensitive foodstuff(this section)
Monitoring sell-by, use-by dates and food waste generation (section
2.4.6.2)

Distribution
centres

Minimising foodwaste by bestmonitoring andmanagement

Setting priorities to food waste management and implementing themeans in joint or individual initiatives (this section)
Increasing the rate of refrigerated food taking into account energy
efficiency issues (this section)
Increasing the rate of better-preserved food or foodstuff with lesschance to become waste (this section)
Returning low quality products (section 2.4.6.2)…
Ordering just-in-time and purchasing plans (out of scope)
Controlling strictly temperature and humidity of sensitive foodstuff(this section)
Returning low quality products (section 2.4.6.2)
Monitoring sell-by, use-by dates and food waste generation (section
2.4.6.2)

StoresMinimising foodwaste by fittingorderstoconsumption

Setting up priorities to food waste management and implementing
the means in joint or individual management practices (this section)
Increasing the rate of refrigerated food taking into account energy
efficiency issues (this section)
Increasing the rate of better-preserved food or foodstuff with lesschance to become waste (this section)
Training staff for avoiding food waste generation (section 2.4.6.2)…

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Who?

What?

How retailers can influence/act?
Providing reliable information at product/store about theenvironmental performance of products with labels including also
food waste generation (section 2.7)

Customers

Minimising food
wastebyinforming
customers

Providing reliable information at product/store about the best foodconservation (section 2.7)
Training staff to help customers in food preservation (section
2.4.6.2)
Advertising responsibly (section 2.7)…

Setting up a list of priorities
Retailers should set a list of priorities in the management of food waste. Figure 2.109 shows anexample of list of priorities (Alexander et al., 2008 and US EPA, 2006) Retailers should decide
the best ways to prevent food waste generation.

SOURCE REDUCTION
Sell to customer
Sell at reduced costServe at restaurants
Sell to staff

DONATE FOR HUMAN CONSUMPTIONDONATE FOR ANIMAL CONSUMPTION
INDUSTRIAL USECOMPOSTING / Anaerobic Fermentation
DISPOSAL
Landfill/incineration
Figure 2.109:

Example of food waste management priorities for retailers

As shown in the figure, the priority should be to sell to customer before the sell-by date. If thisis not possible or wastes are generated by product damaging, a variety of options are opened, as
selling at reduced cost, serve at restaurants, sell to staff, etc. These options seem to be standard
for food products exceeding their sell-by date. It is highly recommended that retailers focus on
the logistic aspect, trying to fit orders to consumer purchases instead of using othermechanisms. Reduced costs of foodstuff can be associated to low quality food (especially forfood with damages and fresh food). As well, quality issues at restaurants can make the use offood exceeding the sell-by date difficult. Retailers using these mechanisms to manage foodstuff,
should assure that a real food waste reduction is being achieved. Re-allocating food waste
should be avoided: for instance, when selling to staff, a minimum quality should be required inorder to avoid generation of the same food waste quantity at staff households. As well, the useof cost compensation mechanisms (to balance, for instance, thefts) should take into accountfood waste generation.

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Donation is, sometimes, a conflicting aspect of foodstuff exceeding the sell-by date but not theuse-by date. Many retailers donate food to NGOs and charitable organisations and this isperformed usually at local level. So, it is a concern of store managers. Technically, food notexceeding the use-by date is not waste and should not be treated as such. The preferred term
would be surplus food. If it is not saleable, one of the most important routes for these products
is donation. Then, production of food waste would be avoided and the image of retailer can beenhanced due to its participation in food banks schemes at local level and can change the statusof a retailer store at community level. There are retailers proud of this donation scheme, like
Sainsbury in the UK, collaborating with FareShare and others in providing surplus food, and
COOP in Switzerland reports their efforts in food donation to several Swiss NGOs, as
Schweizer Tafel and 'Tischlein deck dich'. Mechanisms for donation are diverse and food banks
are usually established at local level by public or private initiatives.
Nevertheless, organisational tensions can arise at retailers donating food. Alexander et al., 2008,
summarize these tensions in three arguments against food donation from retailers:•••donation moves oppositely to profit maximisation
donation relaxes food waste prevention
donation makes brand image less controllable.

These aspects, argued by some retailers, are not totally accurate, as best management practices
would often produce opposite results. The just-in-time or fit-to-purpose deliveries areconvenient schemes for avoiding food waste. Nevertheless, there would be always surplus food,as unpredictable events and market volatility are taking place. So, any food store will have acertain generation of non-saleable foodstuff per year. This fraction would become food waste if
no means are implemented to avoid its production: return to suppliers is possible for someproducts (milk and dairy products) but for many others it would not be possible. Food waste
management costs are relatively high (close to EUR 100 per ton). Then, food donation can be areliable mechanism to prevent waste but also to improve waste management economy. Then,charitable organisations would benefit from integrated food waste prevention policies, as they
become an important element on the management of unavoidable surplus products. So, there is
not any bad donation, but inadequate management. Brand image control is out of the scope of
this document. Sustainability reports from some retailers use food donation as an example oftheir social responsibility. An important number of retailers are providing surplus food tocharitable organisations, but many do not report it or do not want to use this activity as an
example of responsibility. An argument for that is, mainly, that uncontrolled disposal ofbranded products would affect the image aspects regarding to quality, freshness and reliability.
Some retailers are establishing strong rules to the use of their products by charitableorganisations, in order to avoid inappropriate disposal (Alexander et al., 2008). As well, legal
aspects of food donation may be not properly covered by retailers and by NGOs and charitableorganisations (Sciencia et al., 2010).
Donation for animal consumption should be done if food is no more suitable for humanconsumption. Then, two kinds of donations are detected: those for animal sanctuaries and those
for animals in farms, with the objective of food production (meat, milk, etc.). For both cases,
minimum quality requirements should be accomplished. Figure 2.110 shows bread leftovers
used to feed cattle.

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Figure 2.110:

Bread leftovers used for cattle feeding

The rest of priorities are focused on treatments for food waste, so they have an associated costfor the waste producer (in this case, retailers). Examples of industrial uses are, for instance,
biofuels production or anaerobic fermentation to produce biogas. Composting and, preferably,
anaerobic fermentation would close the organic material cycle by creating a nutrient amendment
for soils. The very last option should be disposal of food waste (landfill or incineration).
Improving product preservation
In a study assessing North American stores (Nunes et al., 2009), poor temperature control offresh and refrigerated food was found to be the major cause (55%) to produce food waste or notsaleable waste, while expire date products or waste products account for the rest. Following thisstudy, fresh food is usually not managed properly regarding to temperature and relative
humidity control. This aspect is really important for fruits and vegetable: they should bepreserved in a temperature allowing preservation but also avoiding chilling injury. As well,relative humidity should be high (around 90%) but not much higher as it can drive fasterdecomposition, while water losses from 3 to 6% can affect drastically the appearance of fruits
and vegetables and reduce the sales due to less weight per piece.
Incorrect temperature and humidity management may occur all over the supply chain, from theproducer to the consumer and with an important role from retailers. Best temperature andhumidity control can reduce the amount of food waste up to 55% in retailers, but also wellpreserved food increases sales and reduces food waste generation at households.
The influence of food preservation is significant concerning the environmental impact of
products, especially regarding to food waste generation, at retailers and at households. The
improvement of food preservation will allow reducing the overall environmental impact throughless food waste generation but, also, all the environmental impact associated to the life cycle offood products (Weidema et al., 2008). The mechanisms to reduce the rate of food generation areusually demanding a higher amount of electricity: refrigeration, vacuum packaging, etc.
Refrigerated food is the preservation technology that would fit best preservation needs in order
to eliminate food wastes. Reducing temperature for meat conservation to 0 or 2ºC andincreasing the purchases of refrigerated food would help to prevent food waste generation athouseholds but:••

The consumer behaviour is affecting significantly this issue, as food handling athouseholds could not be optimal and the cold chain can be interrupted. As well, consumer
demands higher amounts of fresh food. So, the educational role of retailers is influencing
this aspect.
Refrigerators and other domestic appliances do not work at temperatures from 0 to 2ºC,
except for some brands including fresh food conservation storages (usually for meat andvegetables).

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Better food preservation is one mechanism to avoid wastes in households, but not the
only one. Better purchases planning and behavioural changes are needed.

Achieved environmental benefit
Best practitioners generate less than 10 kg of food waste per m2 of sales area and year. The
environmental benefit of reducing food waste is significant, as it is affecting direct and indirect
aspects of food retailers. First, the environmental impact of food waste management is avoided,
as its storage, treatment and/or disposal. This would have a direct economic impact, as treatment
costs are avoided and, in case of selling, purchasing costs are saved.
Secondly, all the indirect impact derived from product life cycle is avoided: raw materials, landuse, fossil energy, carbon footprint, etc. For example, (Weidema et al., 2008), report 28 kg ofequivalent CO2 per kg of beef consumed. This means that a retailer reducing 3 kg of meat waste
per m2 of sales area and year would reduce the carbon footprint of the food chain by 85 kg of
CO2 per m2. This reduction is really relevant if compared to direct and indirect CO2 emissions ofrefrigeration systems at supermarkets, which is about 150-200 kg of CO2 per m2. The same
calculation can be done for non-renewable energy use in beef life cycle: 77 kWh of primaryenergy per m2 and year can be avoided per kg of avoided beef waste. For perishable food, abalance between impact of new preservation mechanisms (e.g. more refrigerated products) andthe relative benefit should be accomplished. Am extension of the shelf life of refrigerated meat,
fruit or vegetables at households would produce a significant reduction of food waste and asignificant reduction of the environmental impact (even if electricity consumption balance isaccounted for short shelf-life extensions).
Appropriate environmental indicator
The most appropriate indicator for managing wastes is weight, which can be given in a 'density'format, as the specific annual waste generation in kg per m2 (sales area). Total waste generation
should be also controlled. For instance, for retailers managing a number of stores, waste
generation in kg per store and year can be an indicator to control wastes, although the size of thestore is not being taken into account. For food waste, the amount of waste generated per
turnover unit (for instance, in EUR million) is also a good indicator, which allow to assess
waste impact on the company economics (see Figure 2.104 and Figure 2.105).
The most sensitive aspect is the waste monitoring system, which has to be integrated in theusual inventory of aspects to be monitored at the environmental management system. Thissystem should differentiate among different type of wastes. A recommended category would be
food waste, which can be defined in subcategories (e.g., per product group). The scope of foodwaste category should be the foodstuff managed as waste at stores (avoidable, unavoidable,
animal by-products, compostable, disposed, etc.). All those non-saleable items not treated asfood waste and intended for human or animal consumption (for instance, donations) should not
be monitored as waste.
For accounting the area of waste generation, sales area is preferable for stores. No correction ontime accounting is recommended, even though opening hours vary across Europe.
Cross-media effects
Less food waste at stores has a direct impact on retailer economy, as there are less economic
losses. Less food waste has also a direct impact on the environmental performance of theretailers: less energy would be consumed per product transits and less energy per product would
be consumed at stores. Brand image damage would be avoided through less inappropriate
disposal.
If preservation technologies implementation is promoted, there would be higher consumption ofelectricity due to refrigeration or other associated processes. The extra consumption would belower than the avoided impact of the product life cycle although it depends on the expected
extension of the shelf life of the product.

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Operational data
As already mentioned above, surplus food is unavoidable as an important influence of
unpredictable events are influencing its generation. In-house prevention mechanisms throughimproved logistics, improved inventory control, staff training, etc., are common practices inretailers not only to avoid food waste but also to control their activities.
When surplus food can not be sold, retailers may choose not to treat them as wastes yet bydifferent mechanisms that they can prioritize. One important practice in this priority list is food
donation for human consumption. Figure 2.111 shows a flow chart of the food donation casestudy of a retailer in the UK (Alexander et al., 2008). As observed, food donation avoids direct
management of 94 kg per 100 kg of food donated. Nevertheless, donation food chain is still
generating about 42 kg of food wastes, which are not under direct responsibility of retailers.
Globally, food waste generation is reduced by 58%. Nevertheless, all non-saleable food can not
be donated, due to health risks derived of products exceeding their use-by date. Store managers
should watch for the best achievable quality of food donations.
STORE

Source: Alexander et al., 2008
Figure 2.111:

Flow chart of a food donation case study

Temperature management is very important in order to minimize food waste. Nunes et al., 2009,
provides an important number of examples of badly performed temperature control for fresh
fruit and vegetables. Figure 2.112 shows the low, high and average values of fresh-cut
vegetables and salad bags at their reception and at their display at stores.
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As shown, recommended practice with fresh-cut vegetables and salad bags is to refrigerate totemperatures of 1-3 °C to achieve a better preservation, not only to avoid food waste generation
but also to reduce health risks and to preserve their properties. Retailers tend to offer theseproducts as fresh, not as chilled products. Then, these products are received at temperature overrecommended value and, then, retailers offer them in a variety of conditions, since fresh
products, at ambient temperature, to refrigerated and packed products, as it can be shown in
Figure 2.112). Following the study of Nunes et al., 2009, more than 55% of the food waste
generated at stores is caused by bad temperature control. In this study, there is not a deeper
research on how the food waste generation rate is affected by temperature conditions at stores'
display. About generation rate, Mena et al., 2010, performed a survey in several stores in UK
and Spain and they draw the chart shown in Figure 2.113 (only fresh fruit, vegetables and beef
are shown).

18

displayeddisplayed

Temperature, °C

16
14
12
10

reception

reception

8
6
4
2
0

Recommended conservation temperature

Fresh-cut vegetables

Salad bags

Source: Nunes et al., 2009 and own elaboration
Figure 2.112:

Temperature at reception and shelf display for fresh products

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Beef

Waste Generation

>7%

>5%
Fresh fruit andvegetables
Betterpreservation

Reduce temperature>3%

Betterpreservation
Reduce temperature>1%

Frozen food

AMBIENTREFRIGERATEDFROZEN

Temperature of conservation

Source: Mena et al., 2010 and own elaboration
Figure 2.113:

Rate of waste generation of fresh fruit and vegetables in retailers and potential
improvements through better preservation and reduced temperature

As shown in Figure 2.113, the generation of food waste can be avoided through reducing thetemperature of presentation at store. As well, better packaging (vacuum and others) can be aneffective way to reduce food waste without changing preservation temperature. These practices
have two opposite effects: the increase of energy consumption due to larger needs ofrefrigeration and the trend of customer to purchase fresh food (packed food and refrigerated
food are excluded from the consumer view of fresh food).
Applicability
All food retailers can apply described management practices to avoid food waste generation.
Economics
Costs reduction through food waste management is evident. Food waste treatment varies, but
can be higher than EUR 100 per ton plus the value of the non-saleable food to be considered asa waste. WRAP study at UK estimates the value of food waste as EUR 1760 per ton. Then, theeconomic impact of food waste generated at retailers would be significant. A standard
supermarket of 1000 m2, generating 10 kg per m2 per year of food waste, is producing ten tons
per year of food waste, i.e., almost EUR 19000 per year. If the food is donated, EUR 1000 could
be saved and more than 10 persons could have been fed the whole year (taking into account the
food waste generation rate of the donation scheme shown in Figure 2.111).
Driving force for implementation
Food waste minimization has a direct positive impact on costs and environment. The reductionof waste generation would avoid the impact of food environmental footprint, which is very
important, and the impact from its treatment. Important costs savings would be produced
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through less losses and less waste sent to treatment. As well, better reputation and better
response to existing or future regulations are also relevant drivers.
Reference retailers
Many retailers are providing surplus food to donation schemes. This issue is frequently
managed locally. Retailers do not provide much information on the food they donate, even if
they are advertised by charitable organizations.
Sainsbury, in the UK, is applying food donation since 1998. More than 800 stores are providing
surplus food to local projects and also to FareShare. According to Sainsbury Corporate
Responsibilty Report 2010, they reduce waste sent to landfill, build stronger relationships withlocal charities and get a better understanding of some of the issues in their community. Coop, in
Switzerland, reports that they donate more than 1000 tones per year to Schweizer Tafel and
Tischlein deck dich to around 500 social institutions.
About food preservation, there are many examples on retailers implementing better
conservation routes. For instance, Lidl offers meat and meat products at a temperature of 3C.
Swiss Coop, for instance, is offering meat at 1-2 °C only in covered cabinets to reduce the risksof variable temperature.
Reference literature•
Alexander, C., Smaje, C. 'Surplus retail food redistribution: an analysis of a third sector
model' Resources, Conservation and Recycling, 52, 2008, pp. 1290-1298•
BioIS. Preparatory Study on Food Waste Across EU27, Report for European
Commission, DG Environment, 2010•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahle
n_fakten/_pdf/nhb09.pdf, 2010•
Mena, C., Adenso-Diaz, B., Yurt O. 'The Causes of food waste in the supplier-retailerinterface: Evidences from UK and Spain', Resources, Conservation and Recycling, In
press, doi:10.1016/j.resconrec.2010.09.006, 2010•
Nunes, M.C., Emond, J.P., Rauth, M., Dea, S., Chau, K.V. 'Environmental conditions
encountered during typical consumer retail display affect fruit and vegetable quality andwaste' Postharvest Biology and Technology, 51, 2009, 232-241•
Sainsbury's,
Corporate
Responsibility
Report,2010,
http://www.jsainsbury.co.uk/cr09/files/pdf/cr2009_report.pdf, 2010•
Sciencia, L., Bachion, H., Monforte, E. How can retailers contribute to reduce foodsurplus, 2010 IAMA Annual World Symposium, 2010•
US EPA, Putting surplus food to good use: a how-to guide for food service providers,www.epa.gov/organicmaterials, 2006•
Weidema, B.P., Wesnaes, M., Hermansen, J., Kristensen, T., Halberg, N. Environmental
Improvement Potentials of Meat and Dairy Products, Ed. by Peter Eder and Luis
Delgado, JRC, European Commission, 2008•
WRAP, The Food We Waste, Food Waste Report V2, Ed. by Wrap, 2008

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2.4.6.2

Integration of waste management in retailers activities

Description
The integration of waste management in retailers' activities is a standard practice across all
retailers in Europe but with different levels of implementation. It is already covered byenvironmental management systems (EMAS, ISO or other individual management systems).
Retailers are mainly focused on the management of the packaging material, as there is anincrease interest on the recycling or re-use of packaging materials because it causes important
costs savings and reduces substantially waste generation. The recycling rate is high (see Figure2.104). Nevertheless, specific waste generation is also high, and the impact of waste
management is environmentally and economically relevant.
Among many different common standard practices, some of these have been identified as
outstanding management techniques for wastes. In the list below, distinction between in-housepractices (at stores) and retailers' activities (e.g., from stores to facilities, distribution centres or
suppliers) has been done:
In-house management practices:•segregated collection and specific treatment for re-use: compacting, briquetting for paper
and plastic wastes, refrigeration of food wastes, etc.
•
monitoring of waste production•
preparation for re-use of packaging materials, as pallets and plastic boxes for suppliers,
distribution centres, showcases at stores and home delivery•
staff training.
Retailer management practices:•monitoring of wastes generated by stores per category and per final destination•
implementation of reverse logistics for the management of packaging materials (to be reused or recycled), WEEE and other wastes (as hazardous wastes) to suppliers, treatment
facilities and/or distribution centres•
establishment of local and/or regional partnerships for the management of wastes•
communication to consumers of responsible management of waste at households (section
2.7).
In-house management practices
The best management practice and the first priority of retailers should be waste reduction
through prevention. In section 2.4.6.1, there are described some practices regarding to foodwaste prevention, which can be also applied to any kind of product and for any kind of material,as, for example, packaging. Strict control of inventory, control of sell-by dates, fitting orders to
consumer demands are example of these practices. For packaging materials, re-use is the mostimportant practice to reduce packaging wastes. Plastic boxes, pallets and other systems should
be re-used as far as possible to avoid waste generation.
Waste collection, separation, sorting and other operations at store level are influencing thegeneration of wastes. Examples of mechanisms to achieve high environmental performance inthese operations are:Supply chain and local suppliers' involvement: generation of packaging wastes depends on how
the product is delivered to the store and/or to the distribution centre: then, the returning of
reusable packaging materials to the supplier should be implemented. As well, the weight ofpackaging materials, their recyclability and their re-integration in the supply chain should bealso regarded as a supplier concern to which the retailer may contribute.
Facilities and enhanced management capacity: through the implementation of facilities at storesto manage wastes with the correct capacity would avoid inadequate disposal practices.
Allocating staff resources to waste management is also quite important for this issue.
Staff training and awareness should be appropriate. Managers should consider 'less waste' as asource of 'more profit' in addition to 'better environment'. Employees should not regard waste
Best Environmental Management Practice in the Retail Trade Sector313

Chapter 2collection and sorting as a secondary (even avoidable) task. An aware, well trained employee
would also help to establish better communication channels with customers.
Table 2.84 shows some pictures taken during technical visits made for the development of thisdocument. As already explained in the introduction section, the sector is performing well andthe recycling rate is relatively high. Although some good and bad examples can be identified
through the pictures, the purpose of the table is only to show examples of current management
practice.
Table 2.84:

PictureExample pictures of some waste management practices at European stores

Comment

Non-segregated food waste in municipal solid
waste (MSW) bins. Packaging material also
disposed in these bins.

Unsorted plastic packaging material disposed
in MSW bins.

Outdoor waste sorting: pallets and plastic
boxes, plastics and paper and cardboard.

Indoor waste sorting: categorized and coveredbins for several kinds of materials. The one
covered with a black bag is considered as
MSW.

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Chapter 2

Compacted paperboard wastes

Refrigerated food wastes: a small fraction ofcold rooms employed for this purpose avoids
healthy problems and improve the recovery ofthis waste fraction.

Reverse logistics
The implementation of new directives, as the one for WEEE and the directive on packaging andpackaging materials (see section 2.4.2) stimulated actors in the sector to develop take-backsystems and reverse logistics for the better management of wastes (Cherret et al., 2009). Thereis an increasing complexity in normal and reverse logistic operations. The integration within the
supply chain is essential for the achievement of high recovery rates, as re-use or recycling ofmaterials may have impacts on different stages of the supply chain. For example, recycling ofmaterials would affect the consumption of resources, but some operations affecting preparation
for re-use, as refurbishments, cleanings, repairing, etc., could make the re-used product to enterat different stages.
Two main organisational systems are identified: centralized and decentralized systems. In thecentralized reverse logistics, one organisation is responsible for all the operations: collection,
inspection, disposition or redistribution, while the decentralized system means that every store
would be the 'gatekeeper' in charge of product inspection, testing, redistribution, etc. According
to (Cherret et al., 2009) and (Tryantafyllou and Cherret, 2010), four physical networks are
identified in the current practice:
•

•
•
•

Integrated outbound and returns network: a retailer use its own fleet or logistic providers
to return wastes from stores to a regional distribution centre. This system fits to the needof retailers with a high frequency of delivery (e.g., food retailer with an important numberof stores).
Non-integrated outbound and returns network: a third party is taking wastes to a third
location, but the retailer is in charge of gatekeeper activities (inspection and testing).
Third-party returns management: a third party is undertaking all the activities and no
expertise on inspection and testing is needed at retailers
Return to suppliers: return of products directly to suppliers has higher costs and higher
impact due to transport. Nevertheless, it is regarded as a solution for some retailers
managing a low volume of high added value of products.

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315Chapter 2

Many big retailers with an important number of stores and regional distribution centres manage
their wastes using reverse logistics. Table 2.86 shows some examples taken from technical visits
to distribution centres, which manage waste generated at stores.
Table 2.85:

Example pictures of some waste management practices at distribution centres ofretailers in Europe

PictureComment

Waste and packaging truck delivery from astore to the distribution centre.

Waste delivery from distribution centre totreatment facilities by train. Pallets and otherpackaging materials return to suppliers also
by train.

Metal waste sorting container.

Collected and separated appliances (washingmachines, fridges, etc.). Each item is labelledwith the origin of the waste.

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Chapter 2

These covers are used when a refrigerated
food waste is being transported back by anon-refrigerated truck.

Plastic boxes reused at store to pack newdeliveries.

Wood and other wastes for incineration. The
wastes with the black covers coming from thestores are not manipulated in the distribution
centre. This is the fraction assumable as MSW
fraction for disposal.

Paper and cardboard sorting and compression
at a distribution centre.

Sorting of wastes from stores at a distribution
centres. In the picture, showcases andcabinets.

Best Environmental Management Practice in the Retail Trade Sector317

Chapter 2

The trucks coming from the stores are also
used to deliver mail to/from the distribution
centre.

Establishment of local partnerships
For SMEs, concerning stores at commercial centres, at the same street or within the same
economic activity, it would be of great advantage to form joint partnerships, even integrated
with domestic waste collection systems, to reduce the amount of landfilled or incinerated wastes.
Coordination of this can be made through local public administrations or by private initiatives.
This issue can be really important for hazardous waste, where retailers produce a low quantity(but non negligible), with expensive management costs. The benefit is dual: less costs derived
from waste management and better environmental performance, as these systems increase
collection and recovery rates.
Monitoring
A main principle of environmental management is "you cannot manage what you cannot
measure". Retailers should implement a standardized monitoring practice, controlling theamount of wastes generated. A procedure for accounting wastes should be established toharmonize the environmental accounting. A waste audit should be performed during
environmental performance audits, although it can also be recommended to maintain a periodic
register which allow retailers defining targets and setting benchmarks, while it also allows
retailer to redefine environmental policies or implement facilities for uncovered needs. Store
managers and staff should be directly involved in the monitoring and registration system.
Retailers should define waste categories, for example: food waste and by-products, paper andcardboard, plastic packaging, metal, WEEE, hazardous wastes, fraction presumed to bemunicipal solid waste, etc. As well, the destination of each waste type should be, at least,
monitored: reused, recycled, composted, fermented, incinerated, landfilled, etc.
Achieved environmental benefit
An average retailer can generate more than 30 kg of packaging wastes per m2 of sales are andyear. Less wastes production would reduce the impact of the final disposal or treatment ofwastes, but also avoid the embodied environmental impact of the materials being lost as wastes.
Table 2.86 shows the embodied energy of some classical waste materials (paper, PET and nonferrous metals), which is the energy consumed to produce one kilogram of the material. If thewaste material is landfilled, the overall energy consumption of its life cycle would be higher
than if it is recycled, as this last option subtracts the amount corresponding to the avoided
material production.
The same is done for the associated CO2 emissions of landfilled and recycled wastes. In Table
2.86, it is also shown the amount of energy and CO2 which can be avoided per m2 of sales area
if the waste material recycling rate passes from 40% to 70%. It is noticeable the great amount ofenergy that could be avoided by increasing the recycling rate: in the example shown in the tablebelow, around 65 kWh/m2 could be saved, which is very relevant if compared to the energy
consumption of the refrigeration system (around 300 kWh/m2) or to the HVAC system (around
100 kWh/m2). The numbers of specific energy consumption per kg of material and specific CO2
emissions per kg of material were taken from Browne et al., 2009, which correspond to a global
average. The case of Table 2.86 is an example: for the calculation of more accurate figures atstores, retailer and local circumstances should be assessed.

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Chapter 2

kgw/m2

kgCO2
eq /m2
2.9
0.4
0.4

40
3
1.5

energy70%

kgCO2
eq /kgw
0.49
0.56
0.28

at

kgCO2
eq /kgw
0.735
1.02
1.1

Embodiedavoidedrecycling

CO2 emissions avoided
at 70% recycling,

7.9
9.1
4.5

Example ofwaste
generated at a retailer
store

12
16
25

CO2 emissions recycled
waste

kWh/kgwofkWh/kgw

emissionsCO2
landfilled waste

Paper and Cardboard
Plastic (PET)
Metal

Total Embodied Energyof recycled material

Embodied energy consumption and associated emissions of usual waste materials
Total Embodied Energyof Landfilled waste

Table 2.86:

kWh/m2
49
6.7
9.2

N.B. Starting point: 40% of recycling rate for each material.
Source: Browne et al., 2009 and own elaboration

Appropriate environmental indicator
The most appropriate indicator for managing wastes is weight, which can be given in a 'density'format, as the specific waste generation in kg per m2 (sales area). Total waste generation shouldbe also controlled. For instance, for retailers managing a number of stores, waste generation inkg per store and year can be an indicator to control wastes, although the size of the store is not
being taken into account. For food waste, the amount of waste generated per turnover unit (forinstance, in EUR million) is also a good indicator, which allow to assess waste impact on thecompany economics.
For compacting and briquetting operations it would be very useful to control the density of
wastes (kg/m3) and/or measure the amount of wastes generated in volume units (especially forlow density waste fractions). It would be also related to the efficiency of the transport mode (seesection 2.3.4.7)
The most sensitive aspect is the waste monitoring system, which has to be integrated in theusual inventory of aspects to be monitored at the environmental management system. Thissystem should differentiate among different type of wastes, which can be also defined per
subcategory or e.g. per product group.
For accounting the area of waste generation, sales area is preferable for stores, with corrections
as function of height where appropriate. No correction on time accounting is recommended,even though opening hours vary across Europe.
Cross-media effects
Waste management interacts with other management structures, as transport and logistics,
supply chain and relation with suppliers, relation with consumers, image and reputation etc.
Nevertheless, the improvement in waste management would not reduce the performance of any
other activity and can improve business performance.
Operational data
Triantafyllou and Cherret (2009) proposed the flowchart shown in Figure 2.114. These authors
assessed one commercial centre by means of surveys. They characterized a total waste flow of
725 m3 per week generated by a commercial centre in Southampton, UK. More than a half was
cardboard, which is collected in bales once per month and sent to a recycling facility 265 km
far. The fraction assumable as MSW was about 31% (227 m3) and was managed by a third-party
logistics company. These wastes are collected weekly (or fortnightly, depending on the yard)
and shipped to a local energy facility, 12.3 km far. Plastic wastes are 8% of the total and areshipped to a recycling facility 275 km far and mixed paper (office paper) accounted for 5% of
the total and is shipped once per month to the same facility as for cardboard, 265 km far. The
Best Environmental Management Practice in the Retail Trade Sector319

Chapter 2

shopping centre hazardous wastes are 0.1 % of the total, consisting of WEEE, fluorescent tubes,
cooking oil and clinical wastes.
The distance covered by shipped wastes may be also an indirect concern for retailers, as theaccumulated distance from treatment facility to other points of the supply chain or to othertreatments are usually long for wastes. (Triantafyllou and Cherret, 2009), detected shipments
longer than 2000 km (to Sweden) for components of fluorescent lamps and more than 8000 km
for some metals (delivered to China). Shipments of wastes have an unquestioned environmental
impact, even if high recovery rates are achieved. As an example, the data of exported wastefrom the Irish National Waste Report from the Environmental Protection Agency in 2009 andthe amount of tonne km are shown in Table 2.87.

Table 2.87:

CountryUK
China
Belgium
Holland
Asia
Unknown
India
EuropeSpain andPortugal
FranceGermany
Pakistan
Total

Tonnes of exported wastes from Ireland in 2009 and total estimated tkm (tonne
km)
Average
Distance
(km)
287
10135
856
925
9120
7910
1885

Paper and
Cardboard(tonnes)146250109234
86516
15718
40360
48820
26725
22988

Glass
(tonnes)

Metals(tonnes)

Plastic(tonnes)Organic(tonnes)

Total(106 tkm)

74642

38433

29298

5478

32345

4042
240
10
356

84
1100
83
48
457
Unknown
214
44

10217

148

1476
1059
1266
6610
-

134
9474
781

13608
7488
88
76
50424320

788

106988

50
57527

25

30

49943

5642

9
0.2
0.83
2070

As shown, total impact of exported waste is really high. Taking into account the mostenvironmentally friendly transport modes (see Table 2.74); the total generation of CO2 is higher
than 28 kg of CO2 per exported tonne.

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Source: Tryantafyllou and Cherret, 2010

Figure 2.114:

Flowchart for recovery of materials and wastes and their re-incorporation in the supply chain

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Chapter 2

Applicability
The described techniques are applicable to any retailer. Some of the described techniques are
suitable to retailers managing an important number of stores and distribution centres.
Economics
Prevention and minimization of waste generation has a direct economic benefit, as no disposal
or treatment cost would be derived from a non-existing waste. The allocation of resources to theeffective reduction of waste would be economically justified.
No data are available for waste management through reverse logistics, but, apart from theenvironmental benefit, bulk transportation back to distribution centres would allow the
reduction of the treatment cost if it is compared to the costs negotiated at local or store level.
For retailer producing electrical and electronic equipment, the role as a gatekeeper (testing,inspection and potential reuse) would have higher costs than usual bulk transportation (Walther
et al., 2010). Bulk transportation would cost about EUR 13 per ton, while transportation withconservation devices (e.g. with protective boxes) would cost more than EUR 36 per ton,although some return from sold reusable equipment can be highly beneficial for the company.
About the costs of joint initiatives for wastes management among stores and supermarkets, one
example comes from the US: a joint partnership, established to manage wastes, called
Supermarket Recycling Program Certification (US EPA, 2006) achieved recycling rates of 6075% (average of 65.9%) and costs savings ranging from EUR 2300 to EUR 15000 per store(average of EUR 3300). The assumed costs for food waste disposal were up to EUR 77 per
tonne.
Driving force for implementation
Waste minimisation has a direct positive impact on costs and environment. The reduction ofwaste generation would avoid the impact of products environmental footprint, which is very
relevant from a life cycle perspective. Important costs savings, better management structures,
better knowledge would be produced through improved waste management. As well, better
reputation and better response to existing or future regulations are also relevant drivers.
Reference retailers
For the development of the document, a Spanish retailer provided some information of theiractivities (Mercadona, 2009). They generate about 300 kg of board waste per store per day,which is compacted at the store and transported back to the distribution centre where a hydraulicpress produces 700 kg bale with the appropriate dimensions to be transported to a paper mill.
For this packaging material, 1 kg of waste paper and cardboard would produce 2.2 new boxes.
Expanded polystyrene boxes are returned to distribution centres where they are briquetted andsent to a recycling plant. The group managed about 1100 tonnes of recycled expanded
polystyrene. Reusable plastic boxes for fruit and vegetables and pallets for other purposes areused in the Mercadona group. They use reverse logistics for wastes management.
Global players, like Carrefour, are also implementing a number of preventing measures. As seen
in section 2.5, Carrefour commitment to reduce paper thickness has lead to less paper
consumption but also to less paper waste.
Rewe group, in Germany, has achieved a recovery rate of 84%, taking into account packaging
material recycling and food waste treatment (composting and anaerobic fermentation). Rewealso implemented some techniques to avoid packaging wastes at households by using multi-use
and mass packing (e.g. bulk deposits for vegetable oil).
Some retailers in Europe, as Zara (Inditex) or C&A, have integrated exhaustive monitoring
systems to control the waste generated at stores. Some recycling good practices have been
identified among these retailers, as alarm tags recycling and clothes hangers re-use andrecycling.

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Reference literature•
Cherret, T., Maynard, S., McLeod, F., Hickford, A. 'Chapter 12: Reverse logistics for the
management of waste' Green logistics: improving the environmental sustainability oflogistics, Ed. By Alan McKinnon et al., 2009, pp. 242-262•
Ireland EPA, National Waste Report 2009, report, www.epa.ie, 2010.
•
Mercadona, Medio Ambiente, personal communication, 2009•
US Environmental Protection Agency, Shopping for Change MassDEP Supermarket
Recycling Program, EPA530-F06-036, www.epa.gov, 2006•
Triantafyllou, M.K., Cherret, T.J. 'The logistics of managing hazardous waste: a casestudy analysis in the UK retail sector'. International Journal of Logistics: Research andApplications, 13, 2010, pp 373-394•
Walther, G., Steinborn, J. Spengler T.S., Luger T., Herrmann C. 'Implementation of the
WEEE directive – economic effects and improvement potentials for reuse and recyclingin Germany', International Journal of Advanced Manufacturing Technologies, 2010, 41,
pp 461-474

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2.4.6.3

Return systems for PET and PE bottles and for used products

Description
This technique refers to how certain products such as polyethylene terephthalate (PET)
beverage bottles, polyethylene (PE) milk bottles, carbon dioxide cartridges, batteries, electricalequipment (TV sets, personal computers, microwave ovens, kitchen mixers, headsets, remotecontrols, CD players etc.) fluorescent tubes, energy-efficient lamps and light fixtures can be
returned by the consumers free of charge to the retailer who makes sure that these used products
are recycled in an environmentally-friendly way. The retailer organises the required
containments and logistic. With regard to logistics, the mentioned used products are firsttransported back to the distribution centres, using empty trucks which delivered goods to thestore (see Section 2.3.4.6) where they are sorted and sent to processing facilities for recycling orreuse.
Achieved environmental benefits
Concerning PET beverage bottles, every kg of recycled PET reused in new bottles avoids about
3 kg of greenhouse gases. Furthermore, the collection and reuse of PET and other one-way
beverage packaging contributes to reduced littering.
With respect to electrical equipment, valuable raw materials such as plastics, glass and heavy
metals (iron, copper, zinc, lead, mercury, cadmium) can be recovered and reused.
For the recycling of batteries, the nickel-cadmium rechargeable batteries and lead batteries are
separated. The residual batteries undergo a pyrolysis process and the iron manganese, zinc andzinc oxide is recovered. Thus, raw materials extraction is avoided and the environment is sparedfrom emissions of these pollutants.
Appropriate environmental indicator
Especially for the recycling of PET and PE bottles, the recycling rate is a useful indicator; thismeans the percentage of the quantity of sold bottles compared to the quantity returned.
For non-obligatory return systems that do not charge a deposit, a recycling rate of 80 % can beconsidered a benchmark. For the obligatory return and deposit systems, a recycling rate of 95 %can be considered a benchmark.
For batteries, electrical equipment, fluorescent tubes, energy-efficient lamps and light fixtures
which can be stored for a very long time in the consumers' homes, there may not be a direct
relationship with the quantity of the product sold in subsequent years. Consequently theabsolute quantity per year can be used in order to compare year by year. Notwithstanding thisstatistical problem, Switzerland reaches an exceptional recycling rate of 70 % for batteries.
Cross-media effects
The collection and transport of the used products and the recovery processes require energy andmay result in various emissions. However, the additional energy consumption and emissions
involved are clearly lower compared with the production from new raw materials. Concerning
PET recycling, a detailed life cycle assessment showed that logistics activities contribute about
37 % to the overall environmental impact whereas the production of PET granulate contributes
about 63 % (Figure 2.115) PET recycling is also significantly more environmentally-friendly
than the incineration of the PET bottles in municipal waste incineration plants with waste heatrecovery (Dinkel, 2008).

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Chapter 2

Source: Dinkel, 2008.
NB: The impact was calculated according to the Swiss Ecological Scarcity Method (Frischknecht et al., 2008),
Legend: HGV = Heavy goods vehicles, LGV = Light goods vehicles.

Figure 2.115:

Environmental impact of the production of bottle-grade PET-flakes from recycled
PET bottles

Operational data
Concerning the recycling of PET bottles, an example is provided by approximately 600 Migros
and 800 Coop stores in Switzerland for 2009. Approximately one third of all recycled PET
bottles (in 2009, almost 1.2 billion PET bottles equating to 37 500 tonnes of PET) werecollected from these stores and transported to collection stations. There, the bottles arecompacted to 250 kg packages in order to minimise the energy consumption (and costs) for
transport to the plant where new PET bottles are produced. However, only a percentage of therecycled PET bottles can be used for the production of new bottles (in 2009, about 34 % of thecollected material was reused to produce new bottles (closed loop). However, it is expected that
this rate can be increased to 50 – 60 % in the future. The return rate of PET bottles among
Migros customers is about 90 %. Lower quality material is used for other products such as
fabrics, electrical devices, etc. The PET Recycling System in Switzerland is very efficient withshort distance transport and recycling in Switzerland (94 % of all collected material). Thus, theloop is almost closed within one country.
In total, in Switzerland, retailers operate about 7000 collection points for PET. An example ofthese collection points is shown in Figure 2.116. In addition, in offices, schools, petrol stations,railway stations, hospitals, hotels, sports clubs, etc., there are another 23 000 collection points.

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PET bottles

Paper
card board

CO2
cartridges
PE milk
bottlesbatteries

Figure 2.116:

Part of the return system in a Migros store, including PET bottles

Furthermore, at Migros stores, in 2009, about 8000 tonnes of PE milk bottles, batteries,
electrical equipment, fluorescent tubes, energy-efficient lamps and light fixtures were collected
and subsequently processed. In Migros’ Do-it & Garden stores, customers can also bring backproducts such as old varnishes, solvents, cleansers, biocides, preservers and pesticides.
In Germany, due to the obligatory deposit and return system for one-way beverage packaging(Germany, 2008), every retailer takes back PET, glass and other type of non-refillable bottles.
However, the percentage of refillable beverage packaging is high (Table 2.88), in contrast to
many European states where refillable packaging is rarely used.

Table 2.88:

Percentages of refillable and ecologically acceptable one-way beverage packaging
in Germany

Type of Beverage
Beer including shandies
Mineral water
Soft drinks
Alcopops
All beverages
Percentage of refillable
packaging
Percentage of ecologically
acceptable one-way
packaging

2004
87.8 %
68.2 %
63.0%
25.7%
71.1%

2005
88.6%
61.4%
55.0%
24.7%
65.7%

2006
87.1%
53.0%
49.3%
31.8%
59.8%

2007
85.2%
47.3%
42.8%
23.1%
54.6%

2008
85%
45.4%
38.4%
21.2%
51.8%

66.3%

61.3%

55.6%

51.2%

48.8%

4.9%

4.4%

4.2%

3.4%

3.1%

Source: UBA, 2010.

Figure 2.117 shows two facilities that take back all kinds of bottles. The bottles have a code
which is recognised by the machine and the deposit of 15–25 cents/bottle is reimbursed.

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Chapter 2

NB: German example seen on the left and Dutch example on the right.

Figure 2.117:

Machines for returning beverage bottles

As a consequence of the obligatory German deposit and return system, the recycling rates for
PET bottles are very high (around 95 %). In general, in 2007, the reuse and recycling rates of
packaging in Germany was follows (UBA, 2009):••

Glass:
Plastics:•

Paper/paper board:

83.7 %
95.3 % (42.7 % reuse and recycling, 52.6 % thermal recovery
including incineration with waste heat recovery)
98.4 % (80.2 % reuse and recycling, 18.26 % thermal recovery
including incineration with waste heat recovery).

In the Netherlands, there is also an obligatory deposit and return system (see machine Figure
2.117)
Applicability
In principle, all retailers can introduce such return systems.
Economics
In Switzerland, the retailers have to pay 1.3 cent per PET bottle as a contribution to run the PET
recycling system. Comparatively, these costs are considered to be very low.
Concerning the obligatory deposit and return systems, there is no bottle-specific cost figure
available. The machines for taking back the bottles are expensive (in the order of EUR 30 000)
and need considerable maintenance.
Driving force for implementation
In Switzerland, the ordinance concerning beverage packaging from 5 July 2000 (CH, 2000)
prescribes the minimum recycling rate for beverage packaging consisting of glass, PET oraluminium (75 %). Furthermore, all retail stores have to take back non-refillable packaging.
However, Switzerland has not introduced an obligatory deposit system for beverage packaging.

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Chapter 2

Due to the high awareness of consumers and high-profile awareness campaigns, the recycling
rates are high (e.g. 81 % for PET bottles in 2009).
On the contrary, Germany and the Netherlands have introduced an obligatory deposit and returnsystem (Germany, 2008) which obliges all retailers to charge a fee on one-way beverage
packaging and to take back the one-way packaging. Such regulations are in line with European
legislation (COM, 2009).
Reference retailers
Concerning beverage packaging, all retailers in Switzerland, Germany and the Netherlands may
be regarded as reference retailers. 600 Migros stores concerning carbon dioxide cartridges,
batteries, electrical equipment (TV sets, personal computers, microwave ovens, kitchen mixers,
headsets, remote controls, CD players etc.) fluorescent tubes, energy-efficient lamps and light
fixtures.
Reference literature•
PET Recycling, PET-Recycling in der Schweiz, www.petrecycling.ch, 2010.
•
CH,SR
814.621
Verordnung
ueber
Getraenkeverpackungen(VGV),
http://www.admin.ch/ch/d/sr/c814_621.html, 5 July 2000.
•
COM, Communication from the Commission – Beverage packaging, deposit systems andfree movement of goods, 2009/C 107/01, OJ C 107, 9.5.2009.
•
Coop
Switzerland,
Sustainability
Report2008,
http://www.coop.ch/pb/site/common/get/documents/system/elements/ueber/zahlen_fakten/_pdf/en/NHB08.pdf, 2009.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
Dinkel, Oekologischer Nutzen des PET-Recycling Schweiz, www.petrecycling.ch, 2008.
•
Frischknecht, R., Steiner, R., Jungbluth, N., Oekobilanzen: Methode der oekologischen
Knappheit – Oekofaktoren 2006, www.oebu.ch, 2006.
•
Germany,
Packaging
Ordinance
after
its
fifth
amendment,2008(http://www.bmu.de/files/pdfs/allgemein/application/pdf/verpackv_5aenderung_en_bf.pdf), 2008.
•
Migros, Migros Sustainability Report 2008,http://www.migros.ch/de/ueber-diemigros/nachhaltigkeit/publikationen/publications.html, 2009.
•
Migros, Migros Sustainability Report 2009, http://m09.migros.ch/en/environmentsociety, 2010.
•
Migros, EXTRA – Wertstoff Abfall, www.migros.ch, 2005.
•
UBA, Aufkommen und Verwertung von Verpackungsabfaellen in Deutschland im Jahr
2007, UBA-Texte 35/2009, 2009.
•
UBA, Verbrauch von Getraenken in Einweg- und Mehrweg-Verpackungen – Berichtsjahr
2008, UBA-Texte 24/2010, 2010.

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Chapter 2

2.4.6.4

Anaerobic fermentation of food waste

Description
The food waste from retailers is co-processed with other organic waste such as green waste. A
typical plant is illustrated in Figure 2.118. The green and food wastes are delivered by trucks
and discharged to a bunker from where they are fed with a crane to a conveyor. Before
shredding the waste to pieces of less than 500 mm, any metal pieces are removed. Usually, thewaste contains less than 3 % undesired components. The shredded waste is then mixed with theaqueous phase from the anaerobic fermentation process, stored in the feed tank, andsubsequently pumped to the fermenter. The solid content in the fermenter is about 25 %. The
fermentation process lasts 14-20 days, the temperature is 55–60 °C (thermophilic conditions).
The methane content of the formed biogas is about 58 % (rest CO2, H20, H2S and other tracegases). The produced biogas is stored in a tank and is further processed (mainly the removal ofwater, carbon dioxide and H2S). The biogas is incinerated in a gas motor (combined heat andpower plant). The produced electricity is fed to the public grid and the heat is used for heating
the fermenter. The fermentation liquor is slowly moved by a horizontal paddle system. Part of
the fermented mass is dewatered in a screw press and part of it is stored as 'liquid fertiliser'. For
the dewatered compost, there is a post-composting process that lasts for about three weeks, prior
to delivery to customers. For application on agricultural land, post-composting is not necessary.
The compost complies with standards required for its application as a fertilier for agricultural
fields.
Gas network
input

Waste feeding
systemGreen andWaste
food waste
feederGridconnection

Process
energySorting

Distributor

Comminutor
Waste bunker

Biogas filling
stationBiogas tankDebrisDe-watering
Screw press

Biogaspurification

Feed
tank

CHPP

CHPP

Liquid fertiliser
Heat distribution

Heat exch.
Processheat

compostFermenter
Post-composting tank

Figure 2.118:

HeatstoragetankDistrictheating

Flow chart of the biogas plant in CH-Otelfingen, processing food and green waste

As an example, the Swiss retailers Migros and Coop process about 20 000 tonnes of food waste(from stores as well as from their food production plants) in biogas plants as described above. In
2010, Migros was operating 11 and Coop 6 trucks fuelled with biogas.
As a further example, the flow chart of biogas plants operated by Refood is illustrated in Figure
2.119. Compared to the plant in Figure 2.119, there are two additional steps. After comminuting
to an average particle size of 12 mm, plastic, metals, paper and glass from packaging are
separated by means of centrifugation. This separated fraction is incinerated in a municipal waste
incineration plant. Furthermore, this plant has a pasteurisation step in order to inactivate
pathogen microorganisms as prescribed in EC 2002.
Best Environmental Management Practice in the Retail Trade Sector

331Chapter 2.

Food waste

Intake of food waste

Pre-treatment(comminuting , sorting ,debris removal )Co-Substrates

Storage tank

Pasteurisation(70°C; 1h)

Equalisation tankPre-acidification

Fermentation

BiogasFermentation residues
Storage offermentation
residues

Desulphurisation

Gas storage tanks

Combined heat andpower plant
Agricultural field
Electrical
EnergyThermalEnergy.

Source: ReFood, 2008.

Figure 2.119:

Flow chart for the biogas plants operated by ReFood in Germany

Achieved environmental benefits
The food waste is disposed of in an environmentally-friendly manner, i.e. no disposal in landfill(avoiding emissions to soil, water and air) and recovery of biogas for the production of process
heat and electricity (combined heat and power). The formed biogas is equal to 70 l of petrol for
1 tonne processed waste. The current estimation of food waste quantity from retailers in the EU27 is about 4.5 million tonnes (EC Food waste study, 2010). Consequently, the increasing
fermentation of the food waste, also from retailers, has a significant environmental benefit.
Appropriate environmental indicator
With respect to retailers, an appropriate environmental indicator is the percentage of food waste
which is disposed of in biogas plants or is incinerated. The benchmark concerned is to avoid any
landfilling and to completely dispose of food waste in the mentioned facilities.

Best Environmental Management Practice in the Retail Trade Sector332

Chapter 2

Cross-media effects
In the plant described in Figure, there is no waste water generated for discharge. However, inthe plant illustrated in Figure 2.120 plastics, metals, paper and glass, originating form packaging
material, are separated to be disposed off in a municipal waste incineration plant.
The air from all the buildings is evacuated and the waste gas is treated in a biofilter. The waste
gas from the combined heat and power plant is discharged via a stack (see Figure 2.120).

Figure 2.120:

View of the biogas plant in CH-Otelfingen and the stack to emit the waste gas fromthe combined heat and power plantOperational data
The biogas plant in Otelfingen, Switzerland, went into operation in 1996. In 2008, there were
the following inputs and outputs from the plant in Otelfingen (see Table 2.89).

Table 2.89:

Input/output of the biogas plant in CH-Otelfingen for one year

Input
Green wastes,
especially from 10 500 tonnes
municipalities
Organic wastes,
especially from
3 300 tonnes
food
manufacturingindustries

OutputRaw biogas

Approx. 9 GWh

Fermentation
liquor from the 8 200 tonnes
screw press
Solid compost

3 300 tonnes

Source: Axpo, 2010

With respect to pollutants, reference is given to the environmental declaration for the plant in
Otelfingen (Axpo, 2010). The pant in Otelfingen is operated by three people who work during
day-time. Overnight, the plant runs automatically and is equipped with an advanced alarmsystem that identifies the type of problem to the designated on-call employee via sms
messaging.
Best Environmental Management Practice in the Retail Trade Sector

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The fermenter in Otelfingen has a volume of 900 m3. Other fermenters in Switzerland havevolumes between 280 and 1600 m3. Today, the standard is 1600 m3.
The plant is Otelfingen does not have an automated unpackaging facility for packed food wastefrom retailers. Furthermore, there is no facility to sanitise meat and meat products. Newer plants
have facilities for automated unpackaging and sanitising.
The plant in Figure 2.120 processes food waste from retailers (packed and unpacked food waste
such as vegetables, meat, fish, sausage, bread, milk, yogurts, etc.) but also from bars,
restaurants, hotels, catering companies, canteens, hospital kitchens, food trade companies,
butcher shops and food manufacturing industries. It can also process packed food waste and has
a pasteurisation step in order to inactivate pathogen microorganisms.
Applicability
This technique is applicable for all retailers.
Economics
In Switzerland, retailers have to pay for the disposal of food waste in a biogas plant – about
70 EUR/t plus transportation costs (depending on the distance) of between 15 and 45 EUR/t.
For comparison, the costs for incineration (including transport) are between 110 and 150 EUR/t.
In Switzerland, the operators of biogas plants receive 11 cents/kWh of produced electricity fed
to the public grid. In case, other organisations buy credits for certified ecoelectricity, theoperator may receive another 6.5 cents/kWh.
In Germany, retailers have to pay an annual fee per container provided by the disposal
company. One store may have different containers which may be emptied more than once per
week. The prices depend on the individual circumstances. Concrete numbers are not available.
Driving force for implementation
In Switzerland, the main driving forces are the environmental benefit to close the material cycle
and to avoid pollution of soil, groundwater and air when disposing of the food waste to landfill
as well as the regulation to avoid the disposal of food waste to landfills were the major driving
forces. In addition to that, in the EU, new health rules concerning animal by-products (EC,2002) appeared as a very supportive factor to establish further biogas plants for food waste.
Reference retailers
Migros and Coop in Switzerland, and German retailers.
Reference literature•Axpo, Umweltdeklaration 'Kompogas Anlage Otelfingen', http://www.axpokompogas.ch/files/artikel/195/EPD-Broschuere_A5_ps_rz_web.pdf, 2010.
•
Coop
Switzerland,
Coop
Group
Sustainability
Report2009,
http://www.coop.ch/pb/site/common/get/documents/system/elements/en/ueber/zahlen_fak
ten/_pdf/nhb09.pdf, 2010.
•
EC, Regulation (EC) No 1774/2002 of the European Parliament and the Council of 3
October 2002 laying down health rules concerning animal by-products not intended forhuman consumption, OJ L 273/34-36, 10.10.2002.
•
EC, European Commission, Preparatory Study on Food Waste across EU 27,
http://ec.europa.eu/environment/eussd/pdf/bio_foodwaste_report.pdf, 2010.
•
Migros, Entsorgung und Recycling bei der Migros, 2010.
•
ReFood,ReFood–pure
Biokraft,
http://www.refood.de/fileadmin/html/pdfs/ReFood_Imagebroschuere_052008.pdf, 2008.

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2.5

Reduced consumption and use of more environmentallyfriendly paper for commercial publications

Description
Many retailers use considerable amounts of paper for issuing commercial publications (leaflets,
catalogues, etc.). There are a number of measures to reduce the environmental impact of thesecommercial publications, such as••••

the reduction of the grammage of the paper (specific weight in gr/m2);
use of more environmentally-friendly paper (use of paper certified according to PEFC or
FSC (see Section 2.2.6.4) and increasing the use of supercalendered paper instead ofcoated paper);requiring printing shops to go for environmentally-friendly production techniques and
EMAS or ISO 14001 certification;
optimising the catalogue sizes (can only be done at country level as it depends on theprinting equipment).

Achieved environmental benefits
The reduction of the grammage of the paper for commercial publications results in reduced CO2
emissions and water consumption. For instance, the reduction of paper grammage at Carrefour
from 54.2 gr/m2 in 2005 to 49.4 gr/m2 in 2008 was associated with a reduction of CO2 emissionsof 22 500 tonnes and with a reduction in water consumption of 470 000 m3. Furthermore, thesubstitution of coated paper by mainly supercalendered paper required fewer chemical additives
such as talc, glue, kaolin, binding agents, etc.
The careful selection of printing shops that consider environmental aspects contributes tominimised emissions during the printing processes.
The use of certified paper contributes to sustainable forestry.
Appropriate environmental indicator
With respect to paper used for commercial publications, appropriate environmental indicators
are:
•
•
•
•

the percentage of certified paper (see Section 2.2.6.6); a benchmark could be 100 %the grammage of paper used; a benchmark could be a grammage of less than 49 gr/m2
the percentage of coated paper; a benchmark could be less than 10 %the percentage of printing shops which are certified according to EMAS or ISO 14001; abenchmark could be 100 %.

Cross-media effects
There are no relevant cross-media effects.
Operational data
Table 2.90 shows the data for Carrefour who invested and is still investing significant effort to
reduce the environmental impact of commercial publications. The average grammage was
reduced by 8.8 % from 2005 to 2009. Due to market expansion, absolute paper consumption in
tonnes per year only decreased by 2.4 % in the mentioned period.

Best Environmental Management Practice in the Retail Trade Sector335

Chapter 2
Table 2.90:

Development of paper grammage, area of used paper, paper consumption andpercentages of used paper grades at Carrefour from 2005 – 2009

MethodUse of certified(*)
and recycled paper
Average grammage
Area of used paper
paper consumption
Newsprint
Supercalender paper
Coated paper

Unit

2005

2006

2007

%
2

gr/m
km2
tonnes
%
%
%

54.2
4002
217 100
15
54
32

53.2

50.8

2008

2009

73

80

50.1
3882
194 380
28
66
5

49.4
4289
211 86135
57
8

Difference
2009 vs 2005

-8.8 %
7.2 %-2.4 %(*) PEFC (Programme for the Endorsement of Forest Certification) or FSC (Forest Steward Council).

Applicability
This technique is applicable to all retailers.
Economics
In the case of Carrefour (see the numbers in Table 2.90), the costs for the paper decreased from2005 to 2008 by 14.3 % (EUR 151 000 to 130 000).
Driving force for implementation
The main drivers were an awareness to reduce the environmental impact of the consumption of
paper for commercial publications, and cost reduction.
Reference retailers
Carrefour.
Reference literature•
Carrefour, Sustainable development at Carrefour. Expert Report 2009, 2010.
•
Carrefour, Sustainability Report 2008,
http://www.carrefour.com/cdc/responsiblecommerce/sustainability-report/, 2009.
•
Carrefour, Sustainability Report 2007, http://www.carrefour.com/cdc/responsiblecommerce/sustainability-report/, 2008.

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Chapter 2

2.6

Rainwater collection and reuse to the ground at retailsupermarket from roofs and parking areas

Description
Rainwater from the roofs of retailer stores can be collected in an underground tank (Figure
2.121) and can be reused for floor cleaning, flushing the toilets and watering green areas aroundthe building. It can also be used as cooling water for transcritical CO2 refrigeration plants on hot
summer days.
The rainwater from the roofs, and also from the parking area, can also be infiltrated to theground on the premises of the retailer or to adjacent land.

Figure 2.121:

Rainwater collection tank (100 m3) at the Tengelmann 'Klimamarkt' in Muelheim
an der Ruhr, Germany

Infiltration is the most effective means of controlling rainwater runoff since it reduces thevolume discharged to receiving waters and associated negative impacts. Infiltration is also an
important mechanism for pollutant control. As runoff infiltrates into the ground, particulates andcontaminants such as metals and nutrients are removed by filtration through the soil, anddissolved constituents are removed by adsorption. Infiltration systems are designed to capture a
volume of rainwater and infiltrate this water into the ground over a period of several hours oreven days. Rainwater from parking areas is more polluted than from roofs (assuming there areno significant areas that consist of copper or zinc sheets) and thus it has to pass a biologically
active soil layer of at least 30 cm.
Different types of systems can be employed which retain water safely on site, including:pervious pavements (e.g. permeable car parks), infiltration basins, vegetated swales, ponds andwetlands and green roofs. In the case of retailers, an infiltration trench is one of the favourable
options. An infiltration trench (Figure 2.122) is a long, narrow gravel-filled trench designed toinfiltrate rainwater into the ground. Runoff is stored in the voids between the gravel andinfiltrates through the bottom and into the soil matrix. Infiltration trenches typically capture asmall amount of runoff and therefore may be designed to capture the first flush of a runoff
event. They are frequently used in combination with other measures such as a detention basin tocontrol peak hydraulic loads. Infiltration trenches efficiently remove suspended solids,
particulates, bacteria, organics and soluble nutrients.

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Chapter 2

Figure 2.122:

Trench for the infiltration of rainwater of the parking area of a supermarket

Achieved environmental benefits
Rainwater infiltration gives rise to several benefits in relation to water quality, biodiversity andvegetation. The main benefits are:••reduction of the amount of rainwater discharged into the sewer system
recirculation of water back to the natural water cycle (groundwater recharge).

The combination of rainwater harvesting and rainwater infiltration offers technical benefits andexerts positive effects on the environment and the local water balance. A hydraulic load
reduction can minimise hydraulic peak loads in the sewer network significantly.
In addition, infiltration of rainwater over a long period can increase and/or stabilise thegroundwater reserves.
The main benefits on an individual level are the complete uncoupling from the public sewer.
Construction costs will be also reduced if rainwater harvesting and rainwater infiltration
systems are planned together in addition to a reduction in the waste water fees.
Appropriate environmental indicator
The percentage of a retailer's stores which have a system for the collection and reuse of
rainwater, and the percentage of stores having rainwater infiltration could be used asenvironmental indicators.
Cross-media effects
The biologically active soil layer of the infiltration trenches where inorganic and organic
contaminants are removed may have to be replaced after one or two decades of operation andmay be disposed of on to landfill.
Operational data
Rainwater from roofs covered with metal sheets (copper or zinc) may not be infiltrated or has tobe treated specifically. Due to the contamination of rainwater from parking areas, the rainwater
concerned has to pass a biologically active soil layer of at least 30 cm.
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Chapter 2

Applicability
Several preconditions are required for the planning and success of infiltration measures. These
are given below:
•
•
•
•

•

Groundwater conditions: the distance to the groundwater and variations in the
groundwater levels should be known before any planning is made. It is recommended thatthe distance to groundwater be at least 1–1.5 m.
Soil type and conditions: the effective porosity and permeability of the soil will influence
the infiltration process.
Infiltration rates should be within 1 × 10-3 and 1 × 10-6 m/s. In addition, the bedrock
should not be at less than 1.2 m below the infiltration surface
Vegetative cover: the topsoil layer covered with vegetation (30 cm) will positively
influence the infiltration process. During infiltration, rainwater is absorbed by plant roots
and is returned back partly to the atmosphere via evaporation/transpiration. In addition,
the soil-vegetation complex functions as a filter, which reduces surface clogging of the
soil.
Distance to buildings: based on the local conditions, it is recommended that a distance tobuildings of at least 6 m should be held in order to avoid any negative impacts on thebuilding foundation.

The infiltration rate defines the amount of water that is infiltrated into the ground. Soil
permeability and flow conditions particularly limit the amount of rainwater that can be soaked
into the ground. A soil hydraulic conductivity in the range of 10-6 to 10-3 m/s is generally
considered appropriate to achieve reasonable infiltration rates. For long-term infiltration, a falloff due to gradual clogging of the soil must be taken into account. Table 2.91 shows theinfiltration capacity of different soils.

Table 2.91:

Rainwater infiltration capacity of different soils (below the biologically active soil
layer)

Soil type
GravelSand
Silt
Clay (saturated)

Hydraulic conductivity K(m/s)
10-3 – 10-1
10-5 – 10-2
10-9 – 10-5
< 10-9Economics
Structural measures to achieve rainwater infiltration are generally cost-intensive. The planning
process for decentralised concepts is rather costly since many factors have to be taken into
account.
The costs for an infiltration technology mainly depend on the type of technology and the proper
design. Figure 2.123 shows the dependency of the construction costs from the soil infiltration
coefficient (Kf), as is the case in Germany. The cost/m² corresponds to the relevant area, which
drains into the infiltration structure, for example, a vegetated swale, and not to the whole area ofthe swale.
As an example, if a 1 000 m² surface collection area with a runoff coefficient of 30 % isconnected to the infiltration system, the system has to be designed based on the amount ofrainwater collected from a surface area of only 300 m². With a cost of EUR 10/m² (Figure2.123) the construction of a vegetated swale with a 1 000 m² surface area will entail total capitalcosts of about EUR 3 000.

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Chapter 2

Source: Londong, 1999 (modified)Figure 2.123:

Costs of infiltration techniques depending on the infiltration coefficient (Kf) in
Germany

Driving force for implementation
The main drivers are the awareness of retailers to save water and to reduce the hydraulic load of
the sewer system but also local requirements due to hydraulic limitations of the sewer systems
and/or flood protection programmes.
Reference retailers
Some stores of IKEA and LIDL have rainwater infiltration. At one Tengelmann store and one
Rewe store, the rainwater from the roof is collected and reused for floor cleaning, flushing thetoilets and watering the building's green area (REWE) or as cooling water for a transcritical CO2
refrigeration plants at hot summer days (Tengelmann).
Reference literature•
Münster, M.H., Grotehusmann, D., Handlungsempfehlungen zum Umgang mit
Regenwasser. ATV-DVWK Merkblatt DWA-M 153, 2007.
•
Khoury-Nolde,
N.,
Rainwater
infiltration,
http://www.rainwaterconference.org/uploads/media/Rainwater_infiltration.pdf, 2007.
•
Londong, D., Nothnagel, A., Bauen mit Regenwasser – Aus der Praxis von Projekten, R.
Oldenbourg Verlag, Munich, 1999.
•
Rewe, REWE Green Building – the future concept, www.rewe.de, 2010.
•
Tengelmann, Tengelmann Klimamarkt, http://www.tengelmann-klimamarkt.de/, 2010.
•
Regenwasserversickerung,
http://www.arbeitshilfen-abwasser.de/html/kapitel/A5
1Versickerung.html, 2010.

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2.7
2.7.1

Influencing consumer environmental behaviour
Introduction

Retailers may influence the environmental behaviour of consumers through several active or
passive procedures. Active mechanisms would imply that the retailer is, for instance, offering
only best performing products, limits parking lots and promotes the use of public transport,
remove the use of free non-degradable plastic bags, etc. Passive mechanisms leave the choice toconsumers but retailer should provide enough environmental information as, for instance,
environmental labels and rating systems.
For both mechanisms, best practices have been identified and the 'emblem' of how retailers caninfluence positively the environmental behaviour of consumers is the example of plastic bags,
described in section 2.7.2. In this introduction section, some indications and recommendations
on communication to consumers are provided.
Environmental performance of products and companies is a recurrent topic in advertising, but
usually treated in a discontinuous, not-well structured and sometimes superficial manner, where
the main objective is to increase sales or improve image without real scientific evidence on
environmental claims (OCU, 2010). Consumer perception of environmental issues is dominatedby private companies' messages instead of public administrations and, therefore, responsible
advertising is needed. Consumers association have detected that environmental issues includedin advertising are focused from a sustainability perspective, including social and economical
aspects instead of being focused in a simple exposition of good environmental practices. As
well, misleading environmental advertising leads to the perception that purchasing sustainableproducts is the best way to improve the environment, while they make the consumer to forget
about changing habits and reducing consumption, which have a higher improvement potential.
These are the conclusions of several consumers associations (from Spain, Portugal, Italy andBelgium), which developed an analysis of existing advertising practices. These associations
made several recommendations about using environmental claims in advertising (OCU, 2010):•••

Honesty: claims should be based on scientific evidence and the environmental
information should be available to the consumer.
Precision: environmental claims should not mislead about the environmental impacts of a
product and should not hide any information. For instance, environmental claims focusedon only one stage of the life cycle of the product should be properly defined. It is usual tosee products claimed as recyclable but only a fraction of the product is recyclable.
Usefulness: claims should be clear, concise and easy to understand. More information
does not imply better information and better background for comparison.

Retailers are playing an essential role, as they are the link between producers and consumers.
Consumers should have the best environmental information, not only to assist their purchasing
but also to make consumers play an active role in the improvement of the environment. A good
example is the Guide for Responsible Consumption, published by Carrefour Spain, which
addresses the habits of consumption of customers at households. The main topics are energy,
water, food, materials, transport and wastes. The final recommendation of the document is to
reduce consumption, re-use products and recycle (Carrefour Spain, 2009). A free translation of
the text is below:

Best Environmental Management Practice in the Retail Trade Sector341

Chapter 2'…we should be aware that consumption has economic, social and environmental impacts andthe path to a sustainable consumption needs fewer natural resources, less pollution and fareworking conditions in manufacturing countries.
Reduce consumption is essential to reduce waste generation and energy consumption. It is notconsisting on suddenly abandon all consumption goods, but it would be a question of an
appropriate and fare use of existing resources to satisfy our needs and improve our life quality
without conditioning the future.
Reuse products, buy good quality products and repair them. Lend out or donate when products
are not needed. If products are reused, then it would not be necessary to produce large amountsof them and manufactures would improve durability and sustainability of their products.
Recycle materials without any further use. Then, pollution would be avoided and wastes arereincorporated into a new product cycle.
With these measures, you are not only protecting the environment, but you can also save moneyfrom your family finances.'

References•
Carrefour
Spain,
Guía
prácticapara
unconsumo
responsable,
www.echaleunamanoalmedioambiente.com, 2009•
Organización de Consumidores y Usuarios, OCU, Medio Ambiente y Publicidad, Report,
Edited by OCU, 2010

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Chapter 2

2.7.2

The example of plastic bags

Description
The environmental objective of reducing the use of disposable bags has to focus on theopportunity of changing consumer behaviour. When compared to retailers' environmental
aspects, the potential impact of a disposable plastic bag is low in relative terms. A disposable
polyethylene (PE) plastic bag is responsible for 20–40 grams of CO2 (it depends on the bag
characteristics) in its life cycle (Carrefour, 2004; Bousted, 2007), while the load of the bag(packaging materials of products and the product itself) and the transportation of the bag may
have much higher associated emissions (see Chapter 2.3). Nevertheless, plastic bags have been
pointed as the emblem of perceived 'throwaway' consumer culture and have become a focus ofattention for government, business and community activists to change consumer behaviour(Ritch et al., 2009). In addition, the environmental rationale for banning or restricting plasticbags has to be based on the waste management policy, as the recycling rate of plastic bags is
low. Plastic wastes account for more than 90 % of floating litter in the ocean. In addition,
significantly affects marine life and has relevant impacts derived from its life cycle as energy
consumption, greenhouse gas emissions, ecotoxicity and waste generation. Plastic bags disposed
off on landfills have very large breakdown times, about a hundred years for polyethylene bags.
The role of retailers is very significant and their cooperation with governments is essential to
implement sustainable consumption policies – ideally integrated with an overall waste
management policy defined at the national, regional and local levels. As known, the impact of
end-of-life steps of a product can be highly influenced by retailers but strongly depends on
consumer behaviour (see section 2.2.3 and Figure 2.64). In accordance with several studies(Carrefour, 2004; Bousted, 2007), plastic bags should not be substituted by other disposable
bags, as the environmental benefit is relatively low or the impact can even be worse. The
reusable bag is considered the most environmentally friendly solution: the life cycle study
performed by Carrefour, 2004, shows that the reusable PE bag is more environmentally-friendly
than the conventional single-use PE bag if it is used more than 5 times (on average).
There are several policy instruments to address the reduction of plastic bag use and theinfluence on consumers (Ritch et al., 2009).
•••

Regulation: where plastics bags are forbidden or their use is highly restricted.
Green market: all the instruments are used: there is a regulation relevant for retailers, interms of levies or fees to the consumers. In addition, the organization should provide
enough information on the benefits of reusable compared to one-way bags.
Voluntary: it is based on information provided by the retailer. No regulation backs up theinitiative and the consumer considers it to be reusable.

Although many retailers initiated voluntary policies, currently most of the initiatives can becatalogued as 'Green Market' policies, where the cooperation of many actors involving retailers,
consumers' associations and local and national governments is essential (Covenry et al., 2007).
The regulation approach (direct banning of single-use bags) is not seen as beneficial as it is notcontributing to generating a sustainable consumption and consumer awareness framework.
Retailers should use their influence on the consumer on a voluntary basis to reduce plastic bags
consumption. The consumer policy principles (Ritch et al., 2009) of access, choice, information
and representation are key aspects to be used by retailers and help to avoid the implementationof more restrictive regulations. Some examples of plastic bags reduction are explained under'Operational data'.
Achieved environmental benefits
From the environmental point of view, the use of plastic bags made of PE has lessenvironmental impact than other disposable checkout bags, such as paper bags and some typesof biodegradable bags. The achievement of environmental benefits should be through theBest Environmental Management Practice in the Retail Trade Sector343

Chapter 2

substitution of single-use plastic bags by reusable bags, for example, PE reusable bags
(Carrefour, 2004; Boustead 2007).
The environmental benefit will depend on the number of uses of the reusable bags. Following
the results from life cycle assessment of single use bags compared to reusable bags performed
by Carrefour, 2004, the most environmentally-friendly option is the PE reusable bag if it is used
more than 4–5 times. The quantifiable reduction of impacts, if the bag is used 20 times, isenormous: 10 times less energy, 4–5 times less water, 10–15 times less GWP, etc. These
achievable benefits are only applicable to the boundaries of the study performed by Carrefour,2004. For other dissimilar scenarios, specific assessment is highly recommended.
The policy impact of such measures is also high. In Ireland, the implementation of the levy onplastics bags produced a reduction of 94 % of plastic bags consumption. Plastic bag litter fell
from 5 % in 2002 of total litter to 0.2 % in 2004. Non-measurable benefits from plastic bags
policy are also important. The shift of consumer behaviour and consumption patterns would
introduce substantial changes in the long-term and would help the implementation of more
responsible and sustainable economies (Ritch et al., 2009)
Appropriate environmental indicator
The end of life of plastic bags should be considered as an indirect aspect of retailers, which ishighly influenced by them. Nevertheless, the impact of plastic bag disposal can be controlled bya direct aspect, such as the issuing of plastic bags at checkouts. The specific number ofdelivered plastic bags (bags per square metre and year) is an appropriate indicator to becontrolled by the retailer and can be considered of common acceptance by the sector. The
number of free disposable bags is also a useful indicator, as free checkout bags are more likely
to become litter (Carrefour 2009, M&S, 2009).
Cross-media effects
The main cross-media effect of reducing the amount of delivered plastic bags is the influence on
consumer behaviour. Increasing environmental awareness would also help in theimplementation of other green initiatives as an augment of the sales of environmentally friendly
products, etc. The success in the implementation of reusable bags and other policy initiatives
would enlarge the scope of the influence of retailers and would facilitate the identification ofretailers as catalyst for environmental policies.
Operational data
In this section, several case studies are described, which would help to understand the role ofretailers in the policies concerning plastic bags: the Irish levy as an example of the influence ofregulatory policies, Carrefour Spain as example of cooperation and M&S as an example ofvoluntary measures.
••

The Irish government introduced a levy of EUR 0.15 per plastic bag in March 2002. The
usage of plastic bags felt drastically and consumer behaviour changed substantiallytowards plastic bags (Convery et al., 2009). Consumption of single-use bags was reducedby 94 %. Householders feel the measure was positive for the environment and started tofeel guilty when they forgot their own reusable bag. Retailers reported a positive impact
in terms of acceptance and implementation and the economic costs for them were notimportant. Indeed, costs savings can be produced for some retailers, due to the avoidanceof bags purchasing.
One of the new commitments of the Spanish Integrated National Plant for Wastes is the
reduction of single-use bags by 50 % and the use of non-biodegradable plastic by 70 %(MMARM, 2008). Financial and regulatory mechanisms are foreseen, but also raiseawareness through public campaigns. The expected outcome of this plan is a regulation
banning free disposable bags. Carrefour Spain helped the implementation of this policy
through the removal of plastic bags in all Spanish stores. An important public campaign
was performed to increase the awareness of customers and to facilitate the transition,
Carrefour provided free reusable bags to customers (Carrefour, 2009).

Best Environmental Management Practice in the Retail Trade Sector344

Chapter 2•

Marks & Spencer introduced a 5 pence charge on the use of plastic single-use bags forfood consumers (M&S, 2009). They reduced the consumption of plastic bags by 62 %from 2007. M&S joined the WRAP (Waste and Resources Action Programme) on theirLove Food, Hate Waste campaign and donated profits from carrier bag charge to help
charity partner Groundwork to build new parks and play areas.

Applicability
No limitation on the applicability of this measure is foreseen. Local and regional factors may
influence the implementation procedure but not the final result.
Economics(Convery et al., 2007) made an assessment of several retailers implementing the levy in Ireland.
The costs associated with the implementation of restricted use of plastic bags may have apositive impact for the retailer, as costs savings are produced due to less bags purchasing. Some
additional costs are foreseen for the retailer. An Irish retailer spent more than EUR 2 million on
the purchase of bags. The implementation of the regulation cost about EUR 100 000 and theextra costs attributable to levy (shoplifting and trolley theft) were about EUR 65 000. With a bag
reduction of 95 %, savings of EUR 1.93 million were achieved.
Driving force for implementation
The most important driving forces for retailers to reduce the offer of plastic bags are improved
reputation and public image, better customer response to other initiatives, increased
environmental awareness, better communication with local/regional governments and better
response to existing or future regulations.
Reference retailers
As previously mentioned, Carrefour and Marks & Spencer are examples for the substitution andreduction of plastic bags. Many retailers have implemented similar measures in Europe.
Reference Literature•
Bousted Consulting and Associates. Life Cycle Assessment for Three Types of Grocery
Bags – Recyclable Plastic; Compostable, Biodegradable Plastic; and Recycled,
Recyclable
Paper'(preparedfortheProgressive
Bag
Alliance),
http://www.americanchemistry.com/s_plastics/doc.asp?CID=1106&DID=7212, 2007.
•
Carrefour (Spain) Carrefour, primera compañía de distribución en eliminar las bolsas deplástico, www.carregour.es/grupo_carrefour/sala_prensa_09/260609_bolsas.html, 2009.
•
Convery, F., McDonnell, S., Ferreira, S., 'The most popular tax in Europe? Lessons fromthe Irish plastic bags levy'. Environmental Resource Economics, 38, 2007, pp.1-11.
•
Carrefour, Évaluation des impacts environnmentaux des sacs de caisse Carrefour.
Analyse du cycle de vie de sacs de caisse en plastique, papier et matériau biodégradable,
www.carrefour.com, 2004.
•
Spanish Ministry of Environment (MMARM), Plan Nacional Integrado de Residuos
2007-2015, http://www.mma.es/portal/secciones/calidad_contaminacion/pnir.htm, 2008.
•
M&S,
How
We
Do
Business
Report2009,
http://corporate.marksandspencer.com/file.axd?pointerid=f3ccae91d1d348ff8f523ab8afe9
d8a8&versionid=fbb46819901a428ca70ecf5a44aa8ddc, 2010.
•
Ritch, E., Brennan, C., MacLeod, C. 'Plastic bag politics: modifying consumer behaviour
for sustainable development', International Journal of Consumer Studies, 33, 2009, pp.
168-174.

Best Environmental Management Practice in the Retail Trade Sector345

Chapter 3

3

EMERGING TECHNIQUES/APPROACHES

Here, the term 'emerging techniques' is understood according to the draft Industrial Emissions
Directive (IED, 2010). There, the definition of emerging technique is 'a novel technique for anindustrial activity that, if commercially developed, could provide either a higher general level ofprotection of the environment or at least the same level of protection of the environment andhigher cost savings than existing best available techniques'. As soon as a technically feasible
and economically viable technique has been implemented on an industrial scale, it can beconsidered as best management practice. If the conditions for the implementation are
representative of the whole or a major part of the sector, even a few applications of a techniquecould be sufficient to draw the 'best management practice' conclusion.
However, the boundary between best management practice and emerging techniques issometimes not readily identifiable because the economic viability of many operations in theretail trade sector is influenced by important but difficult to quantify image and reputational
aspects, in addition to basic payback calculations. Some techniques described as best practicemight be more accurately defined as emerging techniques according to conventional industrial
payback calculations, but are commercially viable, at least for some retailers, owing to theirmarketing value (improved image or reputation). A good example is the implementation ofrenewable energy sources on-site, which is highly dependent on the provision of subsidies to beeconomically feasible, but can be preferred over more efficient low-visibility solutions such as
improving the building envelope. Similarly, the promotion of high visibility 'ecoproducts' that
account for a small proportion of sales may be favoured over selection of all products according
to minimum environmental criteria. Thus, the visibility and associated marketing value ofvarious measures is a key factor to consider when assessing commercial viability in the retailtrade sector. Furthermore, the marketing value of visible environmental techniques depends on
public prioritisation of environmental issues, whilst basic payback calculations are dependent on
resource availability and prices, all of which vary over time. Given that it can take some time towidely implement various measures, it may be commercially rational for retailers to implement
measures based on future rather than current prices. In this way, techniques considered'emerging' from a short-term business perspective may be regarded as best available techniquesfrom a long-term business perspective. Much of the recent retailer focus on supply chain
sustainability reflects concern over future resource scarcity.
Reference Literature•
IED, 2010, P7_TA-PROV(2010)0267 - Industrial emissions (integrated pollution
prevention and control) (recast).
•
European Parliament legislative resolution of 7 July 2010 on the Council position at firstreading for adopting a directive of the European Parliament and of the Council on
industrial emissions (integrated pollution prevention and control) (recast) (11962/2/2009– C7-0034/2010 – 2007/0286(COD)).

Best Environmental Management Practice in the Retail Trade Sector347

Chapter 3

3.1

Improvement of energy performance

Within each described technique of Section 2.1.6, an important number of techniques were
given as best practices, available for the improvement of energy performance. In this section,
emerging techniques with the same objective are described. These are still in their development
phase or their economic results are still far from the scope of a best practice.
3.1.1

Building design, including HVAC: Trigeneration

Trigeneration is the combination of a cogeneration process with thermally-driven refrigeration
system. So, the output of this process would be electrical power, heating and cooling. It consistsof a combined heat and power (CHP) system, which is integrated with a thermally-driven
refrigeration system (e.g. absortion technology) to provide cooling. A usual CHP burns fuel toproduce heat coupled to a generator of electricity. When there are seasonal variations in heat
demand, part of the heat can be used in a thermally-driven refrigeration process.
The overall efficiency of the trigeneration processes is more than 90 %. Nevertheless, there areseveral drawbacks for the use of this system.
••

Effective utilisation of the CHP system requires maximum utilisation of electrical powerand heat. Usually, a store demands more electricity than heat in a store, so the overallneeds should be carefully assessed for the application of the system.
The fluctuation of heating demand and climate conditions and the low COP of absortion
refrigeration processes make this system to be complemented with an electrically-driven
refrigeration process.

There is wide experience of trigeneration systems in the food processing industry, where there
are important heat and refrigeration demands. The large refrigeration demand of food plants is
usually met using an ammonia compression installation. Cogeneration processes generate alarge amount of heat that can be recovered in auxiliary thermally-driven refrigeration plants(Bassols et al., 2002). For large plants, ammonia absorption technology produces great savings.
Applicability for stores is quite limited. Large plants, with refrigeration needs in the range ofMW, can benefit from this technology. Small applications for supermarkets are still in a
research and development phase (Tassou et al., 2010). IKEA has allowed a supplier to install
trigeneration equipment at several sites in Italy and buys the electricity, heat and cooling
generated by the equipment. There is an excess of power that has to be sold to other users. The
fuel is bio-oil, from jatropha and other feed stocks.
Reference Literature•
Bassols, J. Kuckelkorn, B., Langreck, J., Schneider, R., Veelken, H., 'Trigeneration in thefood industry'. Applied Thermal Engineering, 22, 2002, pp. 595-602•
Tassou, S.A., Lewis, J.S., Ge, Y.T., Hadawey, A., Chaer, I., 'A review of emerging
technologies for food refrigeration applications', Applied Thermal Engineering, 30, 2010,
pp. 263-276.

3.1.2

Refrigeration: beyond the vapour-compression cycle

The use of the vapour-compression cycle for the refrigeration process consumes a huge amountof energy and the GWP of some refrigerants makes the carbon footprint of refrigeration
processes to be really high and relevant to a store operation. To avoid this, new developmentswith secondary refrigerant loops and natural refrigerants are proposed in Section 2.1.6.6. These
technologies are really available in the market and all of them are based on the vapourcompression cycle.
Innovative solutions, based on other physical phenomena rather than the vapour-compression
cycle, are currently being developed. Tassou et al. (2010) reviewed technologies going beyond
Best Environmental Management Practice in the Retail Trade Sector

348

Chapter 3of the vapour-compression cycle. A summary of their findings and potential technologies forsupermarkets are shown in Table 3.1. More information can be found in Tassou et al. (2010).

Table 3.1:

Emerging techniques for refrigeration

TechniqueAbsorption/adsorption
technology

Air compression cycle

Thermoelectric
systems

Thermoacoustic
systems

Concept

Absorptionadsorption process
at constant pressure
producesphasechanges in thesorption/desorption
process

Air
compression(severalstages),cooling, expansion,
heat exchange andthen compression
again. Similar to
the
vapor
compression cycle,
but without phasechange.
Peltier effect: whena direct electric
current
passesthroughthejunction of two
different
conducting
materials,
theywarm up or cool
down depending on
thecurrent
direction
Sound
waves
produce cooling in
an
inert
gas
confinedinaresonator.
Gas
oscillation createstemperature
differences

Environmental
Barriers
for Applicationand technicalimplementation examples
benefits

No compressor
needed for theoperation;
Use of waste heattoproducecooling

Complexheat
transfer loops;
Regeneration ofsorbents;
Coefficientof
performance(COP) 0.7 lower
than conventional
refrigeration;
Temperature
above 0 °C

Silica-gel/water
adsorption
devices for airconditioning.
Application in aUKretailerwithcogeneration
systemforsubcooling of
the refrigerant
and for air
conditioning

Use of open
cycle,
directcontactofrefrigerant (air)with food (better
heat exchange);
Independence ofclimateconditions

Higherenergyconsumption thanconventional
refrigeration;
COP less than 0.7;
No
small
applications
available

Large cooling
capacities;
Icing plants;
Large
refrigerated
storagecabinets;Fastheating/cooling

Low efficiency;
Lower COP

Small
applications(e.g.
hotelsminibar)atlower costs

Lower efficiency

Ben and Jerry
prototypeforfreezing cabinet

Lower cost
technologyofConstant
pressure;Widescope:
fromnormalrefrigeration to
cryogenics

Reference Literature•
Tassou, S.A., Lewis, J.S., Ge, Y.T., Hadawey, A., Chaer, I. 'A review of emerging
technologies for food refrigeration applications', Applied Thermal Engineering, 30, 2010,
pp. 263-276.

Best Environmental Management Practice in the Retail Trade Sector349

Chapter 4

4

APPLICATION OF THIS DOCUMENT TO MICRO, SMALL
AND MEDIUM ENTERPRISESThe purpose of this chapter is to ease the use of this document for SMEs of the Retail Tradesector and other stakeholders, dealing with SMEs.
About 50% of sales is performed by large retailers, but more than 99% of retailers are SMEs. As
a general rule, it is found that larger companies have better environmental performance. Around
60% of the sector environmental impact is caused by SMEs, so their improvement potential ishuge. The variability of SME size is high: from corner shops, with only one employee, to small
supermarket or store chains, with a certain degree of corporate social responsibility integrated in
the business structure.
In Chapter 2, this document provides technical and useful information to reduce theenvironmental impact of any company, regardless of its size and its implemented environmental
management system (EMAS, ISO 14000 or other individual management systems). So, theconclusions on indicators and benchmarks (see Chapter 1) are applicable to SMEs. To be an
SME may not be an excuse to reduce the responsibility for the produced environmental impact.
With this thought, section 4.1 describes which practices are suitable to SMEs reflecting threeareas: costs, applicability and achieved environmental benefit.
Section 4.2 of this chapter provides background information on the relative environmental
performance of SMEs and Section 4.3 gives some guidance for stakeholders dealing with SMEs
on mechanisms for the integration of sustainability issues in the business management of theseenterprises.

4.1

Implementation of Best Environmental Management
Practices

SMEs wishing to improve their environmental performance may consider the different options
mentioned in Table 4.1 to Table 4.8. A user-friendly analysis of costs, applicability andenvironmental benefit, is performed below with three colour symbols representing the level ofeach aspect. For more detailed information, the sections concerned in Chapter 2 are indicated.
Usually, the investment capacity of small companies on environmental solutions for direct orindirect aspects is quite limited and the management capabilities are usually more limited thanfor bigger companies. Especially, micro, small and medium enterprises are, in some cases, lessable to manage indirect aspects, although several practices can produce costs savings for them.
For example, removal of plastic bags, as it is affecting an indirect aspect ('consumer behavior'),would avoid the purchasing of plastic bags, and the implementation cost would be really low.
For other indirect aspects, as the supply chain management, limitations are more evident,
although there are good opportunities for them (e.g. sourcing locally and environmental labelled
products). It should be reminded that, to have an overall picture of each possibility, the fulldescription of techniques should be consulted in Chapter 2.

Table 4.1:

Color code for the assessment of best environmental management practices for
SMEs

SymbolCost(initial investment)

High

Applicability to SME

Not applicable

Environmental Benefit

Low

MediumApplicable
restrictions
Significant

Best Environmental Management Practice in the Retail Trade Sector

Low
with

Fully applicable
High

351

Chapter 4

Energy performance – including refrigerants consumption

Best
Environmental
Practice

Management

SectionImprovement of Building Envelope

2.1.6.1.

Optimized design of HVAC systems

2.1.6.2.

Integrative concepts for buildings

2.1.6.3.

Heat recovery from refrigeration

2.1.6.4.

Monitoring

2.1.6.5.

Efficient refrigeration: single measures

2.1.6.6.

Efficient refrigeration: shift to naturalrefrigerants

2.1.6.6.

Efficient lighting

2.1.6.7.

Secondary measures

2.1.6.8.

Alternative Energy sources

2.1.6.9.

Best Environmental Management Practice in the Retail Trade Sector

Env. Benefit

AspectApp. To
SME

Best Environmental Management Practices for SMEs: energy performance– including refrigerants consumption

Cost

Table 4.2:

Comments

Usually, SMEs do not own the building or the building unit where
they operate. Nevertheless, they have direct control of glazing,shading, entrances, space heating and cooling (in some cases not),management and control of air flow and general maintenance ofbuilding-related aspect. Costs to retrofit existing systems are high,although some measures have very low payback times.
Only suitable for central refrigeration systems. The engineering of
the system can be contracted to third parties.
Metering system needed for each process. The environmental
benefit depends on the implementation of corrective measures.
Cost-efficient solutions through good management and operation
are feasible. Other measures, as glass lids on cabinets, are lessaccessible to SMEs.
For small stores with plug-in devices, it would be only possible for
new equipment.
Use of smart lighting systems and efficient devices is feasible for
SMEs
Efficient appliances, staff training and communication are feasible
measures
Green purchasing can be a good solution for micro enterprises. For
SMEs, the use of renewable energy or other alternative sources canbe achievable, although the payback times are usually high.

352

Chapter 4

Supply chain

Best
Environmental
Practice

Management

SectionIntegrate supply chain sustainability intobusiness strategy and operations

2.2.6.1

Assess core product supply chains to
identify priority products, suppliers andimprovement options

2.2.6.2

Identify effective product supply chain
improvement mechanisms

2.2.6.3.

Choice editing and green procurement ofpriority product groups based on third
party certification

2.2.6.4.

Enforce environmental requirements for
suppliers of priority product groups
Drive supplier performance improvement
through benchmarking and best practicedissemination
Collaborative research and development todrive
widespread
supplychain
improvement and innovation
Promote front-runner ecological products

2.2.6.5.

Env. Benefit

AspectApp. To
SME

Best Environmental Management Practices for SMEs: supply chain

Cost

Table 4.3:

Comments

The managing director of an SME may decide to stock and sell
products certified to environmental standards, based on
identification of priority product groups and a plan of action.
For SMEs, this involves identification of priority products to which
third party environmental certification should be applied, based onsales volume and environmental impact intensity (identified
through reference to scientific literature).
For SMEs, this involves identification of appropriate third party
environmental standards for either universal application (for use ingreen procurement) or to identify front-runner products (toencourage sustainable consumption).
Certified products may be more expensive, thought this is highly
dependent on the specific standard and product. By marketing thevalue-added of certified products, retailers can charge consumers asmall price premium.
This BEMP is applicable only to private label products, and may
involve significant costs. It is not applicable to SMEs.

2.2.6.6.

This BEMP is applicable only to private label products, and may
involve significant costs. It is not applicable to SMEs.

2.2.6.7.

This BEMP is applicable only to private label products, andtherefore not to SMEs.

2.2.6.8.

Front-runner environmental products are usually associated with asignificant price premium which consumers must be convinced to
pay through effective marketing.

Best Environmental Management Practice in the Retail Trade Sector353

Chapter 4

Transport and Logistics

Best
Environmental
Practice

Management

SectionGreen procurement and environmental
requirements for transport providers

2.3.4.1

Efficiency monitoring and reporting for alltransport and logistic operations

2.3.4.2

Integrate transport efficiency into sourcing
decisions and packaging design

2.3.4.3

Shift towards more efficient transportmodes

2.3.4.4

Optimise the distribution network

2.3.4.5

Otimised route planning, use of telematics
and driver training
Minimise the environmental impact of roadvehicles through purchasing decisions andretrofit modifications

2.3.4.6
2.2.3.7

Best Environmental Management Practice in the Retail Trade Sector

Env. Benefit

AspectApp. To
SME

Best Environmental Management Practices for SMEs: transport and logistics

Cost

Table 4.4:

Comments

Applicable to all retailers, and the main improvement option for
SMEs who rely on third party providers for most of their transport
requirements.
Applicable to all retailers. For small retailers, BEMP requires
collation of basic information on the transport mode and distance.
Only applicable to large retailers with private label products. Not
applicable to SMEs.
Primarily applicable to retailers with extensive in-house transportand logistic operations. Not applicable to SMEs, except whereavailable procurement choices enable selection of more efficienttransport modes for particular products.
Only applicable to retailers with extensive in-house transport andlogistic operations. Consolidated platforms may be implemented
with little investment, but development of strategic central hubs isexpensive. Not applicable to SMEs.
Applicable to SMEs if they have their own transport vehicles (e.g.
delivery vans).
Applicable to SMEs if they have their own transport vehicles (e.g.
delivery vans). There is a wide variation in investment costs fordifferent procurement options and vehicle modifications.

354

Chapter 4

Materials
consumption

Management

SectionReduce consumption and use of moreenvironmentally friendly paper forcommercial publications

Comments

This technique can be applied to any company generating
commercial publications.

2.5

Best Environmental Management
Practice

Waste management

Food
waste
minimization

prevention

andSection

2.4.6.1

Integration of waste management
activities

2.4.6.2

Return systems for PET and PE
bottles and for used products

2.4.6.3

Fermentation of food waste

2.4.6.4

Best Environmental Management Practice in the Retail Trade Sector

Env. Benefit

AspectApp. To SME

Best Environmental Management Practices for SMEs: Waste Management

Cost

Table 4.6:

Best
Environmental
Practice

Env. Benefit

AspectApp. To
SME

Best Environmental Management Practices for SMEs: Materials consumption – excluding refrigerants consumption

Cost

Table 4.5:

Comments

Any SMEs can apply preventing measures toavoid food waste generation. Management
costs would be compensated by cost savings
derived from less product losses and lessgenerated waste
SMEs producing a huge amount of wastes
should allocate resources and train staff for
waste management.
These systems are increasing reuse andrecycling rates in the countries where it ismandatory. Extra resources would be needed
for management of the return system.
Applicable to food retailers with direct control
on the treatment of their wastes.

355

Chapter 4Best
Environmental
Management PracticeSectionRainwater collection and reuseto the ground at retailsupermarket from roofs andparking areas

2.6

Water
management

Cost

AspectComments

Applicable for large surfaces, in case of
new stores.

Consumer
behaviour

Management

Influencing the consumer behaviour: theexample of plastic bags

Section

2.7.2

Best Environmental Management Practice in the Retail Trade Sector

App.
SME

Best
Environmental
Practice

Cost

AspectEnv. Benefit

Best Environmental Management Practices for SMEs: Consumer Behaviour
To

Table 4.8:

Env. Benefit

Best Environmental Management Practices for SMEs: Water ManagementApp. To SME

Table 4.7:

Comments

Small and medium enterprises can be benefitted from the removalof free disposable plastic bags, as they can save a significant
amount of money by avoiding its purchase and/or adding a fee toeach disposable bag

356

Chapter 4

4.2

The performance of SMEs in the Retail Trade Sector

According to the formal definition, retail trade sector is composed by 93 % of micro enterprises,
7 % of small and medium enterprises and 0.1 % of large enterprises. Figure 4.1 shows how thesector is divided according to the number of companies, number of employees and the annual
turnover.

Large

Small and Medium

Micro

100%
90%

Normalized impact

80%
70%
60%
50%
40%
30%
20%
10%
0%

Number ofcompanies
Figure 4.1:

Employees

TurnoverDistribution of numer, employees and turnover per size in the Retail Trade sector

Around 85 % of the turnover of the sector is produced by small, medium and large companies.
Small companies, from 10 to 50 employees, correspond to individual supermarkets, specialized
stores and others working independently or within a larger retailer but with the legal status of
SMEs. Medium and large companies usually correspond to companies managing more than one
store and are usually independent from other companies in their management. The
independency of the company seems to be an important factor regarding to the nature of theinvestment to be performed in order to improve the environmental performance. The overall
impact of the sector is distributed, for several impact categories, as shown in Figure 4.2.

Best Environmental Management Practice in the Retail Trade Sector

357

Chapter 4

Large

Small and Medium

Micro

100%
90%

Environmental Impact

80%
70%
60%
50%
40%
30%
20%
10%
0%

GWP

Figure 4.2:

EnergyHFCs

Non
Hazardous
Waste

Hazardours
waste

Environmental Impact per category and per size of companies in the Retail TradesectorEnvironmental impact per 1000 employees

The impact of large companies is 30-40 % of the total. Small and medium companies accountfor 20 % of the impact and the impact of micro enterprises is about 35-45 % of the total. The
environmental impact per 1000 employees of the retail trade sector enterprises seems to be
independent form the amount of employees, as shown in Figure 4.3.

Large

Small and Medium

Micro

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%

Figure 4.3:

0%

GWP

EnergyHFCs

Non
Hazardours
Hazardous
waste
Waste

Environmental impact per 1000 employees and per size of companies in the Retail
Trade sector

Nevertheless, the environmental impact per EUR million of turnover is much smaller for bigger
companies (Figure 4.4).
Best Environmental Management Practice in the Retail Trade Sector

358

Environmental impact per million turnover

Chapter 4

Large

Small and Medium

Micro

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%

Figure 4.4:

0%

GWP

EnergyHFCs

Non
Hazardours
Hazardous
waste
Waste

Environmental impact per EUR mill turnover and per size of companies in the
Retail Trade sector

So the efficiency of their environmental performance is higher than smaller companies. If
micro, small and medium enterprises achieve efficiency levels similar to large companies, theoverall impact of the sector would be reduced by 27 % in average for the five categories shownin Figure 4.4. The case of energy use is really illustrative: micro, small and medium enterprises
need almost double energy to produce EUR 1 million turnover. So, the improvement potential ismainly located on the high inefficiency of the environmental performance of SMEs in the
sector.

Best Environmental Management Practice in the Retail Trade Sector359

Chapter 4

4.3

SMEs and sustainability

The European Commission published, in 2010, the report 'Opportunity and Responsibility: how
to help more small businesses to integrate social and environmental issues on what they do'.
This report encourages to uptake the concept of Corporate Social Responsibility (also called
responsible entrepreneurship in this context) by SMEs. This report is complemented by otherreport, from 2004, called 'Fostering CSR among SMEs'( 24 ). The views of these two reports
about the integration of environmental aspects in SMEs management are gathered in thefollowing text.
Drivers:• management of internal aspects• some environmental measures pay off in the medium/longer term
• environment, health and cost-efficiency can be improved• branding: SMEs identified as good or best performer at local level• external aspects: as better response to existing or new legislation.
Barriers:• generalization about SMEs can not be done and most solutions should be tailor-made;• SMEs are a hard to reach group in terms of dissemination;• usually, manages have limited capacity;• perceived costs are high;• actual costs are also high and, usually lower than perceived costs;• generally, there is lack of awareness, motivation, know-how and know-who and• there is reluctance to external help.
Mechanisms to address environmental performance improvement:• solutions for SMEs should be practical and result oriented;• education of staff and managers is essential;• building SMEs clusters to address common problems would reduce costs• intermediary organizations with a high level of awareness can be helpful (trade unions,consultants, commerce chambers, etc.)• for SMEs, it is really important to receive advice and financial support at national, regional
and local level• in the retail trade sector, the environmental performance of intermediaries SMEs in supply
chain is really important and retailers have an important influence of them
The study 'SMEs and the environment in the European Union'(25), 2010, revealed, among otherimportant issues, that only 24 % of SMEs are engaging actions to reduce their environmental
impact and only 0.4 % have an environmental management system. As well, the impact of newenvironmental legislation is high on the performance of SMEs, as their available resources tocomply with new legislations are lower than those of large companies, so financial support canalleviate the costs of complying with environmental legislation. In the application of newenvironmental solutions, the simplicity, cost and the training needed of the measure areimportant factors for a SME deciding whether to apply it.

(24) Chapter based upon the report of the European Commission on 'Opportunity and Responsibility: how to help more small
businesses to integrate social and environmental issues on what they do' (2010),
http://ec.europa.eu/enterprise/policies/sustainablebusiness/files/csr/documents/eg_report_and_key_messages/key_messages_en.pdf and 'Fostering CSR among SMEs' (2004)
http://ec.europa.eu/enterprise/policies/sustainable-business/files/csr/documents/mainstreaming/ms_sme_roundtable_en.pdf(25) SMEs and the environment in the European Union", 2010
http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?displayType=library&tpa_id=0&item_id=4711

Best Environmental Management Practice in the Retail Trade Sector360

Chapter 55
5.1

CONCLUSIONS
General aspects

Validation process and timing
A Technical Working Group (TWG) was set up to get a broader access to the sector, to obtain
more qualified information and to validate the proposed best environmental management
practices as well as to draw conclusions with respect to appropriate environmental performanceindicators and benchmark of excellence.
Two meetings of the TWG were held. A kick-off meeting took place in June 2009, where theoverall structure of the document and the structure for presenting the techniques were agreed.
After the period for collecting information and data, carrying out important site visits anddeveloping the draft document, a second TWG meeting was held in November 2010 in order tovalidate and to agree on information and data to be used for the document. The working groupconcluded by expert judgment on the most appropriate environmental performance indicatorsand benchmarks of excellence.
Sources of information, development of the document
The whole document was developed from scratch. Although extensive information, including a
number of comprehensive reports, were publicly available and were used as a basis, most of theinformation needed was obtained from retailers. There were significant differences in theinformation provided by the various retailers. Some retailers provided all requested informationand data in sufficient detail, including even the most recent equipment designs, whilst somewere co-operative but provided limited information at a more general level, and others did notprovide information beyond the level of press releases.
Level of consensus
The conclusions on the environmental performance indicators and benchmarks of excellence
were drawn at the second meeting of the working group in November 2010. There wasconsensus and no split views were recorded.

5.2

Specific conclusions

This document identifies the most important environmental aspects, direct or indirect, relevantto the organisations or companies belonging to the Retail Trade sector (retailers). It summarises
the best environmental management practices dealing with these identified aspects, including
sector specific environmental indicators and derived benchmarks of excellence for theenvironmental performance of organisations and processes/techniques carried out by theseorganisations.
The conclusions, gathered on this chapter, have been derived by expert judgement, performedby the European Commission through the JRC-IPTS, and by the Technical Working Group(TWG). This group was composed of companies' representatives, umbrella associations,verification bodies, accreditation bodies and the European Commission, who organised andchaired the meetings of the TWG.
This document was developed based on information exchange with retailers, consultation withexperts, literature review and site visits. Some of the retailers providing information were big
players within the retail market, at European or even global level. This document should be
regarded as a support for the efforts of all the actors in the retail trade sector who intend to
improve their environmental performance.
Best practice techniques and benchmarks of excellence provide reference points against which
an organisation can compare its environmental performance in order to identify improvement
potentials.

Best Environmental Management Practice in the Retail Trade Sector361

Chapter 5

In this conclusion chapter, first, the identified best environmental management practices(BEMP) are listed (chapter 5.3). Then, the common specific indicators of the retail trade sector
are described (chapter 5.4) and derived benchmarks of excellence for each aspect, whereappropriate, are shown, with the links to indicators and best practices (chapter 5.5). A final table(chapter 5.6) presents a set of recommended sector-specific key environmental performanceindicators. These are a subset of all the indicators listed in the document and in the previous
section of the conclusions and are those indicators whose use is recommended for theorganisations within the sector.

5.3Best environmental management practices

Best environmental management practices (BEMPs) are those techniques, measures or actions
that allow organisations of the sector to minimise their impact on the environment in all the
aspects under their direct control (direct environmental aspects) or on which they have aconsiderable influence (indirect environmental aspects), resulting in best environmental
performance under given economic and technical conditions.
In this document, the identified best practices in the retail trade sector are described in Chapter
2. Their environmental performance has been evaluated in technical detail along with economic
considerations. The described practices address the most important environmental aspects of theretail trade sector, both direct and indirect.
The aim of this document is to help organisations to better focus on the most importantenvironmental aspects of the sector. For this purpose, detailed technical information and data
were collected and collated, based in many situations on case studies.
The structure of the technical descriptions of the different practices is similar to the Best
Available Techniques Reference Documents (BREFs) according to Article 13 of the Industrial
Emissions Directive (formerly the IPPC Directive): description, achieved environmental
benefits, appropriate environmental indicator, cross-media effects, operational data,applicability, economics, driving force for implementation, reference retailers and reference
literature.
In the following sections, best practices for the different environmental aspects are submitted.
The most important environmental aspects identified for the Retail Trade sector were:
•
•
•
•
•
•
•
5.3.1

energy Performance – including refrigerants consumption (direct)
supply chain (indirect)
transport and logistics (direct/indirect)
waste management (direct)
materials consumption – excluding refrigerants consumption (direct)
water management (direct)
consumer behaviour (indirect).

Energy performance – including refrigerants consumption

1. BEMP is to improve the envelope of existing retailers' buildings to minimise energy
losses to an acceptable and feasible level. BEMP is to optimise the building envelope designin order to fulfil demanding standards going beyond existing regulations. See Section 2.1.6.1.
2. BEMP is to retrofit existing HVAC (Heating, Ventilation and Air Conditioning) systems
in order to reduce the energy consumption and improve indoor air quality. BEMP is to
optimise the design of HVAC systems in new buildings, using innovative systems to reduce
the primary energy demand and to increase efficiency. See Sections 2.1.6.2 and 2.1.6.4.
3. BEMP is to use integrative concepts for the whole building or for parts of it to reduce theenergy demand of the store. See Section 2.1.6.3.
Best Environmental Management Practice in the Retail Trade Sector362

Chapter 5

4. BEMP is to recover the waste heat from the refrigeration cycle and to maximise its use.
See Sections 2.1.6.4 and 2.1.6.2.
5. BEMP is to monitor the energy use of the processes inside a store (heating, refrigeration,lighting, etc.), also at the store and organisation levels. BEMP is to benchmark the energy
consumption (per process) and to implement preventive and corrective measures. See
Section 2.1.6.5.
6. BEMP is to implement energy saving measures in the refrigeration system of a foodstore, especially the covering of refrigeration display cases with glass lids, when the energy
saving potential produces relevant environmental benefits. See Section 2.1.6.6.
7. BEMP is to use natural refrigerants in food stores, as the environmental impact would be
reduced substantially and to avoid leakages by ensuring that installations are tightly-sealed. See
Section 2.1.6.6.
8. BEMP is to design smart lighting strategies with enhanced efficiency and reduced
consumption, to use daylight without affecting the sales concept and to use the most efficient
lighting devices. See Section 2.1.6.7.
9. BEMP is to implement energy saving measures in distribution centres, to audit
periodically energy use within the environmental management system, to train staff regarding
energy savings and to communicate the energy saving efforts of the organisation internally andexternally. See Section 2.1.6.8.
10. BEMP is to integrate renewable energy sources in stores where, previously, measures toreduce the energy demand and increase the efficiency have been applied. See Section 2.1.6.9.

5.3.2

Product supply chain

1. BEMP is for top-level management to integrate supply chain sustainability into businessstrategy, and for dedicated management personnel or units to coordinate implementation ofnecessary actions across retail operations. See Section 2.2.6.1.
2. BEMP is to identify priority products, processes and suppliers for improvement throughenvironmental assessment of product supply chains, using existing scientific information,
consultation with experts (e.g. NGOs), and lifecycle assessment tools. See Section 2.2.6.2.
3. BEMP is to identify effective supply chain improvement mechanisms for priority
products, specifically chains of custody and control points that could be used to effectively
influence environmental performance. See Section 2.2.6.3.
4. BEMP is to exclude worst performing products, and require widespread certificationaccording to third party environmental standards for priority products. See Section 2.2.6.4.
5. BEMP is to establish environmental criteria for priority products and their suppliers,
targeting identified environmental hotspots, and to enforce compliance these criteria throughproduct and supplier auditing. See Section 2.2.6.5.
6. BEMP is to drive supplier improvement by establishing information exchange systems
that can be used to benchmark suppliers, and by disseminating better management
practices. The latter aspect may assist supplier compliance with third party standards andretailer-defined criteria. See Section 2.2.6.6.

Best Environmental Management Practice in the Retail Trade Sector363

Chapter 5

7. BEMP is to strategically collaborate with other stakeholders to identify and develop
innovative supply chain improvement options, and to develop widely accepted
environmental standards. See Section 2.2.6.7.
8. BEMP is to promote front-runner certified ecological products. Awareness campaigns,
sourcing, pricing, in-store positioning and advertising are important components of thistechnique, which can be effectively implemented through development of own-brandecological ranges. See Section 2.2.6.7.
5.3.3

Transport and logistics

1. BEMP is for retailers to integrate environmental performance and reporting criteria
into procurement of transport and logistic services provided by third parties, including
requirements for implementation of BEMPs described in this document. See Section 2.3.4.1.
2. BEMP is to report on the efficiency and environmental performance of all transportand logistic operations between first-tier suppliers, distribution centres, retailers and waste
management facilities, based on monitoring of in-house operations and data provided by third
party operations. See Section 2.3.4.2.
3. BEMP is to integrate transport efficiency into sourcing decisions and packaging design,
based on lifecycle assessment of products sourced from different regions, and throughdesigning product packaging to maximise the density of transport units. See Section
2.3.4.3.
4. BEMP is to shift towards more efficient transport modes, especially rail, water-basedtransport and larger trucks, and to minimise air-freight. This overlaps with planning of productsourcing and distribution networks. See Section 2.3.4.4.
5. BEMP is to optimise the distribution network through systematic implementation of themost efficient of the following options: (i) strategic centralised hubs to accommodate rail andwater-based transport, (ii) consolidated platforms, (iii) and direct routing. See Section
2.3.4.5.
6. BEMP is to optimise operational efficiency through efficient route planning, use oftelematics, and driver training. Efficient route planning includes back-loading store delivery
vehicles with waste and with supplier deliveries to distribution centres, and making night-time
deliveries to avoid traffic congestion. See Section 2.3.4.6.
7. BEMP is to minimise the environmental impact of road vehicles through purchasing
choices and retrofit modifications. This includes purchase of alternatively powered vehicles,
efficient vehicles and low-noise vehicles, aerodynamic modifications, and application of low
rolling resistance tyres. See Section 2.3.4.7.
5.3.4

Waste Management

1. BEMP is to integrate environmental practices to avoid food waste generation, as
monitoring, auditing, prioritising, logistic issues, better preservation mechanisms, temperatureand humidity control at store, distribution centres and delivery trucks, training staff, donation,etc. See Section 2.4.6.1.
2. BEMP is to integrate efficient measures to improve waste management, as waste
prevention, collection, segregation, to implement facilities, to use reverse logistics, to monitor
waste generation at store and at distribution centres, to re-use packaging materials, to establish

Best Environmental Management Practice in the Retail Trade Sector364

Chapter 5

local and regional partnerships to improve recycling rate, to manage wastes in the mostappropriate way, to train staff on waste management, etc. See Section 2.4.6.2.
3. BEMP is to implement take-back systems and to integrate them in the company
logistics, as, for example, for PET or PE bottles. See Section 2.4.6.3.
4. BEMP is to avoid landfilling or incineration of food waste through fermentation
processes. See Section 2.4.6.4.

5.3.5

Materials consumption – excluding refrigerants consumption

1. BEMP is to reduce the impact through less consumption of materials, as paper
optimization for commercial publications. See Section 2.5.

5.3.6

Water management

1. BEMP is to collect rainwater, use it if appropriate and to recirculate it to the natural water
cycle (as groundwater recharge). See Section 2.6.

5.3.7

Consumer behaviour

1. BEMP is to influence consumers to reduce their environmental impact, throughcampaigns, as, for example, the removal of plastic bags, responsible advertising and providing
best guidance information to consumers. See Section 2.7.

Best Environmental Management Practice in the Retail Trade Sector

365

Chapter 5

5.4

Common specific key performance indicators of the retail trade sector
CommonUnits

Indicator

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

ENERGY PERFORMANCE
Energy consumption (electricity, heat fromgas or others) per unit of sales area and year.

Specific energy
consumption

kWh/m2 yr

Indications:
Renewable energy consumption should
not be subtracted.
Correction factors can be used todetermine sales area (in function ofheight and other technical parameters).
'Sales area' should be defined by retailer.
No correction on opening hours is
recommended. Annual consumption
figures should be reported.
Loss of refrigerants in relation to total
refrigerant load of the installation.

Percentage ofrefrigerant leakages%

Indications:
Appropriate for food refrigeration atlarge installations (centralised systems)
It is recommended to calculate it fromannual refrigerant purchases.
It is not environmentally relevant for
installations using natural refrigerants.

Per store (site),
distribution centre orother and at theorganisational level(aggregated value)
Per main energyconsuming processes:
heat, electricity forrefrigeration (whereapplicable) andelectricity for allother uses
Per store (site),
distribution centre orother and at theorganizational level(aggregated value)
Per type of
refrigerantSpecific primaryenergy consumption
Energy efficiency

Specific (linear)consumption forrefrigeration cabinets

Direct GHG
emissions
Emissions

Use of naturalrefrigerants (y/n) or% of stores withnatural refrigerants(26) As defined for core environmental performance indicators in Annex IV of the 1221/2009 EMAS regulation (Section C.2.)

Best Environmental Management Practice in the Retail Trade Sector366

Chapter 5
Indicator

CommonUnits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

Lighting power installed to meet illuminationneeds (basic and for product presentation
purposes) per unit of sales

Lighting Power Density

W/m2

Indications:
It is an indicator related to the designand sales concept, applicable to all sizes
and types of retailers.
Correction factors can be used todetermine sales area (in function ofheight and other technical parameters).
'Sales area' should be defined by retailer.
Lumens per m2 is a good technicalindicator, but the environmental
performance should be measured interms of W/m2.
It can vary within the store (per zone)
and during the day (per period).
Own-generated energy per square metre ofsales area (at stores) or per building floor area
(e.g. at distribution centres).

Specific energy
generation

kWh/m2yr

Indications:Green-electricity purchased should not
be included.
Correction factors can be used todetermine the area (in function of height
and other technical parameters).

Best Environmental Management Practice in the Retail Trade Sector

Per store (site),
distribution centre orother
Energy efficiency
Per store zone andper day period, whereappropriate

Per store (site),
distribution centre orothers and atorganizational level(aggregated value)
Per source(renewable, from
CHP, etc.)

Specific energy
consumption forlighting

Percentage of energy
from alternative
generation

Energy efficiency

Percentage ofalternative energy
generation in excess
to consumption
Greenhouse gases
emissions avoidance367

Chapter 5
Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

SUPPLY CHAIN PERFORMANCE
Lifecycle environmental loadings (CO2 eq.,
kg SOx eq., kg VOC eq., kg 1,4-DCB eq., kg
Sb eq., m3 water, kg PO4 eq.), biodiversity
pressures, location-specific water pressures,
expressed per product mass or, where moreaccurate, per functional unit

Assessment of supply
chain environmental
impacts

Lifecycle
impact loading(kg) perproduct kg orfunctional unit
Environmental
hotspots

Global Good
Agricultural
Practice
Greenpeace redlist fish

Basic productenvironmental
standards

Oeko-Tex 1000
National/regional
Production
Certification
Equivalent
standards

Identified environmental hotspots forparticular supply chains
Indications:
Products may be aggregated into groups
with similar supply chains (e.g. wildcatch fish, dairy products, wood andpaper)
Data may be obtained from scientific
literature and expert consultation
Full lifecycle assessments should be
performed only to fill critical knowledge
gaps- Supplier performance data may berequired for some supply chains.
Basic standards require avoidance of the mostenvironmentally-damaging practices, andapproximate to minimum legal environmental
requirements in
Europe. The
main
requirements of basic standards are:compliance with local regulations
recordkeepingforimportantenvironmental aspects (especially landuse, chemical use, water management
implementationofageneralmanagement planin some cases, exclusion of the mostdamaging practices or products- in some cases, specific benchmarks for aminority of important environmental
aspects.

Best Environmental Management Practice in the Retail Trade Sector

Organisation level,
per product supply
chain
At supplier level
where necessary todrive improvement(e.g. throughdissemination of
better management
practices)

Supply chain
environmental
performanceassessment covers:
Energy efficiency
Material efficiency
Water
Waste
Biodiversity
Emissions

Implementation ofsystematic assessment(independently or
through consortia) ofcore product supply
chains (y/n)
Number of priority
product supply chainsthat are environmentally
improved throughapplication of bestpractice techniques

Environmental
standards address:
Energy efficiency
Material efficiency
Organisation level,
per product group

Water
Waste

Retailer-definedenvironmental
requirements (e.g.
H&M Code of
Conduct)

Biodiversity
Emissions368

Chapter 5
Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

Better Cotton
Initiative
Better Sugarcane
Initiative
Fair Trade
Rainforest
Alliance

Improved
environmental
standards

Round Table on
Sustainable Palm
Oil
Programme for
the Endorsementof Forestry
Certification
RTRS: Round
Table onResponsible Soy

Improved standards require importantenvironmental aspects to be addressed more
rigorously and more completely than basic
standards. In addition to requirements
contained in basic standards, improved
standards include the following requirements
in relation to important environmental
aspects:
specificmanagement
practices
associatedwithsignificant
environmental improvement
compliancewithquantitativeenvironmental performance benchmarks
demonstrated continuous improvement
within a specified framework.

Environmental
standards address:
Energy efficiency
Material efficiency
Organisation level,
per product group

Water
Waste
Biodiversity
Emissions

Retailerenvironmental
performance
improvement
programmes for
suppliers (e.g.
Sainsbury's Dairy
Development Group)

UTZ
Equivalent
standards

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Chapter 5
Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

Blue Angel

Environmental
standards address:

EU Ecolabel
ForestStewardshipCouncilExemplaryenvironmental
standards

MarineStewardshipCouncil
Nordic Swan

Exemplary standards require importantenvironmental aspects to be addressedsufficiently robustly and completely thatcertified products may be defined as either:environmentally sustainable
clear front-runner ecological products within top 20 % of products rated
according to overall environmental
performance.

Energy efficiency
Material efficiency
Organisation level,
per product group

Water
Waste

Retailer-definedenvironmental
requirements (e.g.
Migros Terra Suisse)

Biodiversity
Emissions

Organic
Equivalent
standards--

Product improvement
rate

Percentage
products
certified to
specifiedenvironmental
performance
level

-

-

-

Percentage product sales within a
product group certified according to
specified third party environmental
standard
Environmental performance level of thatstandard
May be expressed for private label or
total sales (specified)Include any portion of sales within a
product group that is certified to a higher
standard than that being reported
Number or percentage of product groups
with extensive certification (more than50 %) at organisation level
Where a programme for widespread
certification is being implemented, it isappropriate to express certification
targets for product groups

Best Environmental Management Practice in the Retail Trade Sector

Environmental
standards address:
Energy efficiency
Organisation level,
per product group

Material efficiency
Water
Waste
Biodiversity
Emissions

Percentage productsales within a productgroup compliant withspecifiedenvironmental
requirements
Percentage productsales within a productgroup sourced fromsuppliers
participating inspecifiedenvironmental
improvement
programmes

370

Chapter 5
Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

TRANSPORT AND LOGISTICS PERFORMANCE
Lifecycle primaryenergy consumption
per tkm

Direct fuel energy consumption per tonne km
transported to compare modal options.

Specific transportenergy consumption

MJ/tkmIndications:
Based on fuel energy contents
For electric power, based on primaryenergy for electricity generation (e.g.
multiply by 2.7)

Energy efficiency
Per transport modeand major route

Material efficiency

Diesel consumption l/ tkm
Diesel consumptionof HGVs: l / 100 km
Transport mode

Provides an indication of the environmental
efficiency of transport operations.

Specific transport GHG
emissionskg CO2
eq./tkm

Indications:
For fossil fuels, based on direct
combustion plus indirect extraction andprocessing emissions
For electricity, based on national average
specific GHG emissions of electricity
generation and distribution
For biofuels, based on lifecycle
assessment of GHG emissions forrelevant fuel source

Best Environmental Management Practice in the Retail Trade Sector

Per transport modeand major route
Per fuel type

Material efficiency
Emissions

Lifecycle
environmentalloadings per tkm
kg CO2 eq. / m3.km
or per pallet.km
Transport mode

371

Chapter 5
Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Alternative
indicators

Provides an indication of the final
environmental impact of transport operations.

kg CO2 eq. /m3 (or pallet)
deliveredTransport GHG
emissionsIndicator

kg CO2 eq. /per tonne
productdelivered

Indications:
For fossil fuels, based on direct
combustion plus indirect extraction andprocessing emissions
For electricity, based on national average
specific GHG emissions of electricity
generation and distribution
For biofuels, based on lifecycle
assessment of GHG emissions forrelevant fuel source.

Commonunits

Short description

Per transport modeand major route

Material efficiency

Transport mode

Per product group

Recommended
minimum level ofmonitoring

Sourcing distance

Emissions

Key environmental
area (26)

Alternative
indicators

WASTE MANAGEMENT

Weight of produced waste.

Generation of wastes

kg, tonnes
kg/m2

Indications:-

It can be expressed per unit of sales area.

Best Environmental Management Practice in the Retail Trade Sector

Per type of waste:e.g. food waste,plastic, paper andcardboard, wood,
metal, hazardous
materials, etc.
Per destination:
reuse, external
recycling,fermentation,
donation, etc.

Waste

Life cycle impact ofwastes, for example
kg CO2, MJ, distanceetc.
Weight per turnoverunit, e.g. kg / EUR
mill

372

Chapter 5
Indicator

Commonunits

Recommended
minimum level ofmonitoring

Short description

Alternative
indicators

Key environmental
area (26)Weight of recycled materials divided by total
amount of wastes
Indications:

Recycling rate

%

-

-

Indicator

Commonunits

Some retailers include the amount ofreused materials. A clear indication onthat should be provided when reporting
this indicator
For return systems, the rate of take-backshould measured per bottles sold

Per type of waste:e.g. food waste,plastic, paper andcardboard, wood,
metal, hazardous
materials, etc.

Recommended
minimum level ofmonitoring

Short description

Material efficiency
Waste

Recovery rate, %,would account for thereuse rate, recycling
rate and fermented
food waste rate

Key environmental
area (26)

Alternative
indicators
Grammage of usedpaper
Number of certified
suppliers

MATERIALS CONSUMPTION EXCLUDING REFRIGERANTS
Certified paper forcommercial
consumption%

Percentage of certified paper (e.g. FSC) used
for commercial publications-

Material Efficiency
Waste

%

Percentage of stores with a system ofrainwatercollection
and/orrainwater
infiltration systems

-

Water

-

Material Efficiency
WastesOther indicators on
consumer behaviour canbe reported: number ofconsumer claims
regardingenvironmental
information, number ofpublic campaign
addressing
environmental aspects,
etc.

WATER MANAGEMENTStores with rainwatercollection
CONSUMER BEHAVIOUR
Number of plastic bags given or sold at checkouts.

Number of bags#

Indications:
The number of free one-use plastic bags
should be controlled but, as well, sold or
given with promotional purposes or thenumber of reusable plastic bags soldIt can be reported per customer or per1000 customers or per turnover unit.

Best Environmental Management Practice in the Retail Trade Sector

Free one-use plastic
bags, free one-use
biodegradable plastic
bags, sold one-use
plastic bags, sold reusable bags

373

Chapter 5

5.5

Benchmarks of excellence and links to BEMP and related specific indicators

Benchmarks of excellence

Link to BEMP

Recommended
indicators

Remarks

ENERGY PERFORMANCE

Specific energy consumption for heating,cooling and air conditioning less or equal to 0
kWh/m2yr if waste heat from refrigeration
can be integrated (see Section 2.1.6.4).
Otherwise, less or equal to 40 kWh/m2yr for
new buildings and 55 kWh/m2yr for existingbuildings

Retrofitting the building envelope for optimal energy
performance (see Section 2.1.6.1)
Optimised design premises for new and existing
Heating, Ventilation and Air Conditioning systems(see Sections 2.1.6.2 and 2.1.6.3)

Store specific energy
consumption per m2(salesarea) and year
Store primary energy
consumption per m2 (salesarea) and year

Use of integrative concepts (see Section 2.1.6.3)

Store energy consumption
per m2(sales area) and year

Heat consumption of 0 kWh/m2yr (absence ofheating system)

Integration of refrigeration and HVAC (Sections
2.1.6.4 and 2.1.6.2)

Energy savings per m2 sales
area and year
Produced or recovered heatper m2 sales area and year

Implementation of amonitoring system (y/n)

100 % of stores and processes monitored
Implemented benchmarking mechanisms (y/n)

Monitoring of stores in the energy management
system (see Section 2.1.6.5)

Percentage of storescontrolled
Number of controlled
processes

Best Environmental Management Practice in the Retail Trade Sector

Applicability: these practices are applicable to new andexisting stores and to all sales concepts. Climatic
dependence factors can be applied to the benchmark if
backed up by a sound scientific justification.
Economics: long payback times for envelope
retrofitting are foreseen (see Table 2.7). A new
optimised building should not cost more than 10 % of asimilar building without improvement measures.
Applicability: described practice can be applied to any
food retailer. Benchmark of excellence derived for aload of refrigeration (low and medium temperature)higher than 40 m of refrigeration cabinets per 1000 m2
sales area. Climatic dependence factors can be applied
to the benchmark if backed up with a sound scientificjustification.
Economics: Integration with building envelope and
HVAC retrofitting have long payback periods (>3years).
Applicability: described practice can be applied to any
sales concept. This practice is very relevant for retailers
managing a large number of stores.
Economics: Low cost of implementation if it isintegrated into business management structures for new
stores. For existing stores, it can be complex but can
result in higher savings due to the implementation ofcorrective measures.

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Recommended
indicators

Link to BEMP

100 % covered LT cabinets
100 % use of cooling zones (e.g. in cash andcarry) or 100 % covering of MT refrigeration
where this can lead to an energy savings ofmore than 10 %Specific energy
consumption per m2 sales
area and year
Reduce energy consumption of refrigeration (seeSection 2.1.6.6)

Specific (linear) consumption of refrigeration
3000 kWh/m yr

Specific (linear) energy
consumption per m ofdisplay case and year
Percentage of stores withnatural refrigerants
Leakage control (% ofrefrigerant)

General use of natural refrigerants (y/n)

Use of natural refrigerants (see Section 2.1.6.6)
Percentage of stores withnatural refrigerants

Power consumption less than 12 W/m2 forsupermarkets and 30 W/m2 for specialist stores

Specific energy
consumption per m2 sales
area and year

Efficient lighting (see Section 2.1.6.7)

Installed lighting power per
m2
Specific energy
consumption per m2 sales
area and year

100 % of distribution centres exclusively inservice to the retailer are monitored

To have net zero energy buildings (store or
distribution centre) where local conditions
allow the production of renewable energy onsite, or investment in equivalent renewableenergy generation at other locations (y/n)

Secondarymeasuresfor
reducing
consumption (see Section 2.1.6.8)

energyInstalled lighting and/or
appliances power per m2
Energy management system
in place to drive continuous
improvement (y/n)
Specific energy generation
per m2 of sales area

Use of alternative energy sources (see Section
2.1.6.9)

Best Environmental Management Practice in the Retail Trade Sector

Percentage of energy fromalternative generation
Percentage of alternative
energy generation in excess
of consumption

Remarks
Applicability: described practice is applicable to foodretailers. Covering freezers and medium temperaturecabinets have an impact in the HVAC system.
Economics: Covering of cabinets can have shortpayback times (< 3 years) if the achieved savings areequal to or higher than 20 %.
Applicability: described practice is applicable to foodretailers. The application of CO2 for medium
temperature cycles depends on ambient temperature.
Economics: Shifting to natural refrigerants, such as
CO2, has the lowest emissions abatement cost.
Applicability: described practice is applicable to any
sales concept. An important influence on marketing
aspects is observed for lighting.
Economics: The definition of an optimal lighting
strategy and using the most efficient devices can lead tosavings higher than 50 %.

Applicability: There is no limitation on the size, type or
geographical location of the retailer to perform acomprehensive management system, taking into accountappliances, distribution centres, specific energy uses orcommunication and training.

Applicability: described practice is applicable to any
sales concept. Important limitations are the availabilityof renewable sources, accessibility of land or roof
installations and demand fixing for combined heat andpower systems.
Economics: Implemented technologies will produce
benefits in the long term.

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Benchmarks of excellence

Link to BEMP

Recommended indicators

Remarks

Public reporting of quantitative corporate
targets specifically related to improving thesustainability of priority product supply chains(y/n)

Applicability: all retailers can integrate supply chain
sustainability into business strategy. For small retailers, this islimited to green procurement and encouraging ecologicalconsumption. For larger retailers that sell private label
products, a higher level of integration is possible.

SUPPLY CHAIN IMPROVEMENT

Systematic implementation of supply
chain improvement programmes
across priority product groups

Integrate supply chain sustainability
into business strategy and operations(see Section 2.2.6.1)

Presence of a high-level business unit withresponsibility for driving and coordinating
supply chain sustainability actions (y/n)
Systematic implementation of supply chain
improvement programmes across priority
product groups (y/n)

Assess core product supply chains to
identify priority products, suppliers
and improvement options (see Section
2.2.6.2)

Implementation of systematic
assessment (independently or throughconsortia) of core product supply
chainsLifecycle environmental loadings (CO2 eq., kg
SOx eq., kg VOC eq., kg 1,4-DCB eq., kg Sbeq., m3 water, kg PO4 eq.), biodiversity
pressures, location-specific water pressures,
expressed per product mass or, where moreaccurate, per functional unit
Number of core product supply chainsassessed

Identify effective product supply
chain improvement mechanisms (seeSection 2.2.6.3)

Best Environmental Management Practice in the Retail Trade Sector

Number of priority product supply chains thatare environmentally improved throughapplication of best practice techniques
Implementation of systematic assessment(independently or through consortia) of coreproduct supply chains (y/n)

Economics: costs associated with systematic improvement of
supply chains should be balanced against: (i) mitigation against
supply chain cost volatility arising from anticipated resource
supply constraints; (ii) higher profit margins associated withvalue-added product ranges; (iii) long-term economic
advantage associated with reputational and marketing
advantages.
Applicability: basic environmental assessment methods are
relevant to all retailers and all products, to select the mostappropriate product groups for choice editing and green
procurement and for promotion of front-runners. More dataintensive assessment methods are applicable to private label
products sold by larger retailers, to inform implementation of
supply chain improvement through environmental requirements
and supplier environmental performance benchmarking. Core(high sales volume) products should be prioritised forassessment.
Economics: basic assessment of hotspots based on existing
literature is inexpensive, but full supplier-specific assessment isexpensive. Costs may be compensated by the identification of
new process efficiencies, and by revenue increases associatedwith value-added products, marketing and reputational benefits.

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Link to BEMP

Recommended indicators
Percentage of sales within a product group
certified to a specified third party
environmental standard

100 % certification according to third
party environmental standards

Choice editing and green procurementof priority product groups based on
third party certification (see Section
2.2.6.4)

The environmental performance represented
by that standard
Percentage certification targets, for productgroups where a programme for widespread
certification is being implemented
Number of product groups where more thanhalf of sales are certified
Percentage of private label sales within a
product group compliant with specified
environmental requirements

100 % private label sales within a
product group comply with particularretailer-defined environmental
requirements

The environmental performance represented
by those requirements
Enforce environmental requirements
for suppliers of priority productgroups (see Section 2.2.6.5)

Percentage compliance targets, for productgroups where a programme for widespreadcompliance is being implemented

Number of product groups where more thanhalf of sales are compliant with specificenvironmental requirements
Percentage of private label sales thatoriginate from suppliers participating in retailprogrammes to improve environmental
performance

100 % private label sales within a
product group are sourced fromsuppliers participating in a retailprogrammes to improve
environmental performance

Drive supplier performance
improvement through benchmarking
and best practice dissemination (seeSection 2.2.6.6)

The level of environmental performance
represented by those programmes
Percentage participating suppliers targets,for product groups where a supplierimprovement programme is being implemented
Number of product groups where more thanhalf of sales originate from suppliers
participating in retail programmes to improve
environmental performance.

Best Environmental Management Practice in the Retail Trade Sector

Remarks
Applicability: choice editing and green procurement may be
implemented by any retailer, to branded and private label
products. This technique should be applied to priority productgroups identified during supply chain assessment.
Economics: Achieving widespread certification incurs
significant supplier costs usually passed on to the retailer.
These costs may be offset by small price premiums that can be
asked for certified products. Certification may also increase
retailer's overall private label sales through a positive 'haloeffect' (improved customer perception).

Applicability: large retailers, private label priority products.
Economics: Auditing of supplier environmental performancecan be integrated with social auditing and product quality
control systems to minimise additional costs. For suppliers,
compliance costs should be balanced against improved securityof demand and enhanced marketability for their products, andany price premiums they may consequently realise. For
retailers, costs should be balanced against reduced reputationaland medium-term business supply chain risks associated withunsustainable practices, and against price and marketing
premiums they may consequently realize.

Applicability: large retailers, private label priority products.
Economics: Retailers may offer suppliers a small pricepremium to encourage participation in improvement schemes,
and pay for data collation and dissemination of better
management practice techniques. These costs should bebalanced against reduced reputational and medium-termbusiness supply chain risks associated with unsustainable
practices, and against price premiums that retailers may
consequently realise. The dividends of any identified efficiency
improvements may be shared with retailers through contractual
agreement.

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Link to BEMP

10 % sales within food product groups

certified as organic
50 % cotton sales certified as organic

10 % sales within non-food productgroups certified according to official(ISO Type-I) environmental labels

Promote front-runner ecologicalproducts (see Section 2.2.6.8)

Best Environmental Management Practice in the Retail Trade Sector

Recommended indicators

Remarks

Percentage sales within a product group
certified according to front-runner exemplary
standards

Applicability: all retailers can stock and encourage
consumption of front-runner ecological products. Large
retailers can implement this technique more extensively,
through development of own-brand ecological ranges.

Number of product groups for which frontrunner ecological products are offered
Existence of an extensive own-brandecological product range (y/n)

Economics: Supplier costs associated with front-runnercertification are passed on to retailers. Certified front-runnerecological products are associated with significant pricepremiums and higher profit margins. Own-brand ecologicalranges are also likely to increase retailer's overall private label
sales through a positive 'halo effect'.

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Link to BEMP

Recommended indicators

Remarks

TRANSPORT AND LOGISTICS PERFORMANCE

100 % of transport and logistics (T&L)
providers comply with either:(i) third-party-verified environmentrelated standards;(ii) specific environmental
requirements;(iii) best environmental management
techniques contained in this document

For 100 % T&L operations between
first-tier suppliers, retail stores andwaste management facilities, including
those performed by third party
transport providers, the following
indicators are reported:(i) percentage transport by differentmodes(ii) kg CO2 eq. per m3 or per palletdeliveredGreen procurement and environmental
requirements for transport providers(see Section 2.3.4.1)

Percentage transport providers complying withspecific environmental requirements or BEMPs
described in this document

Applicability: all retailers purchase at least part of theirtransport and logistic operations from third party
providers, and can make purchasing decisions according toefficiency or environmental criteria. Small retailers arecompletely dependent on third party providers.
Economics: improving the efficiency of transport andlogistic operations reduces operating costs, and requires
effective monitoring and reporting. Efficient third party
transport providers may be able to offer lower costservices to retailers.

Tonnes CO2 eq. per year emitted by transportand logistic operations
kg CO2 eq. per m3, or pallet delivered

Efficiency monitoring and reporting for
all transport and logistic operations(see Section 2.3.4.2)

For all in-house T&L operations
between first-tier suppliers, retailstores and waste management facilities
following indicators are reported:(i) truck load factor (% weight orvolume capacity)(ii) kg CO2 eq. per tkm
Systematic implementation of
packaging improvements to maximise
density and improve T&L efficiency

Percentage transport providers certified toenvironment-related standards (includes
registration to reporting programmes), such as:
Clean Shipping Project, ERRT Way Ahead
Programme, US Smartway Programme

Are the following parameters reported for all
relevant transport and logistic operations:(i) percentage transport by different modes(ii) kg CO2 eq. per tonne, per m3 or per palletdelivered (y/n)
Are the following indicators reported for all inhouse transport and logistics operations:(i) truck load factor (% weight or volume
capacity)(ii) kg CO2 eq. per tkm

Integrate transport efficiency into
sourcing decisions and packaging
design (see Section 2.3.4.3)

Best Environmental Management Practice in the Retail Trade Sector

Applicability: all retailers. Reporting on in-housetransport and logistic operations will only apply to larger
retailers. Small retailers can use basic data on average
emission factors for different modes of transport toestimate emissions.
Economics: effective monitoring and reporting requires
small investment in necessary information technology
systems and management but can identify options toimprove the efficiency of transport and logistic operations,and therefore reduce costs.

kg CO2 eq. / m3 (or pallet) delivered

Applicability: large retailers with private label ranges.

Modal split of transport

Economics: for sourcing, highly dependent on productand source location, related to a multitude of sourcing
factors. For packaging, increasing the density of packaged
goods can considerably improve transport efficiency (byNumber of product groups where sourcing or
packaging has been modified specifically to379

Chapter 5
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Link to BEMP
Assess core product supply chains to
identify priority products, suppliers andimprovement options (supply chain
improvement)

Over 50 % of overland transport
between first-tier suppliers and retail
distribution centres (tkm or sales
value) is by water/rail (where
infrastructure allows)

Shift towards more efficient transportmodes (see Section 2.3.4.4)

Recommended indicators

Remarks

reduce T&L and lifecycle environmental
impactup to 30 % for the example of IKEA tea-light candles),and therefore reduce transport costs.

Systematic implementation of packaging
improvements to maximise density and improve
T&L efficiency (y/n)

Percentage of total product transport (tkm or
sales value), from first-tier suppliers to stores,
accounted for by specified more-efficient modes

Applicability: large retailers with in-house transport andlogistic services, small retailers where they can selecttransport providers based on different modes, third party
transport providers. Products sourced over longer
distances.
Economics: loading and unloading costs for efficientmodes (train and ship) are more than compensated for bylower specific transport costs over longer distances.

Over 99 % of overseas transport,
according to sales value, is by ship
kg CO2 eq. per m3 (or pallet) delivered
Number of consolidation platforms in use
Number of strategic central hubs in use
Number of direct transport routes in use

Systematic optimisation of distribution
networks through implementation ofstrategic hub locations, consolidated
platforms, and direct routing

Optimise the distribution network (seeSection 2.3.4.5)

Percentage reduction in T&L GHG emissions
through implementation of specified distribution
network improvement options
Outsourcing of T&L operations to a third party
provider with an optimised distribution
networksystematic optimisation of distribution
networks through implementation of strategic
hub locations, consolidated platforms, and direct
routing(y/n)

Best Environmental Management Practice in the Retail Trade Sector

Applicability: large retailers with in-house transport andlogistic services, third party transport providers. Products
sourced over longer distances.
Economics: distribution network optimisation tocoordinate transport from multiple suppliers does not
require significant investment. Building new central hubs
integrated with rail and water-based transport networks
does require significant investment. In both cases,
increased loading efficiency and the use of more efficientmodes for longer distance routes can significantly reduce
operating costs. Payback periods vary from months toyears. Efficiency dividends may be shared between
cooperating parties.

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Link to BEMP

Recommended indicators
kg CO2 eq. per m3 (or pallet) delivered
Fleet average percentage load efficiency(volume or mass capacity)
Fleet average percentage empty running (truckkm)
Fleet average g CO2 eq. / tkm

100 % of drivers continuously trainedin efficient driving, or implementationof an efficient driving incentive
scheme for drivers
systematic optimisation of routing
through back-hauling waste andsupplier deliveries on store-delivery
return journeys, use of telematics, andextended delivery windows

Percentage of drivers continuously trained inefficient driving
Optimised route planning, use oftelematics and driver training (seeSection 2.3.4.6)

Implementation of an efficient driving incentive
scheme for drivers (y/n)
Percentage reduction in T&L GHG emissions
through implementation of specified options (i.e.
back-hauling waste or supplier deliveries,
telematics, driver training and incentive schemes,
out-of-hour deliveries)

Remarks

Applicability: large retailers with in-house transport andlogistic services, third party transport providers. All
products.
Economics: driver training costs are low, and offer
payback periods of weeks to months assuming a 5 % fuelsaving. Route optimisation may require significant
investment in information technology, but can reduce
capital investment costs (fewer trucks required) andsignificantly reduce operating (fuel) costs. Payback
periods are short. Efficiency dividends may be shared
between cooperating parties.

Systematic optimisation of routing throughback-hauling waste and supplier deliveries on
store-delivery return journeys, use of telematics,
and extended delivery windows (y/n)

Best Environmental Management Practice in the Retail Trade Sector

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Link to BEMP

Operation of alternatively fuelledvehicles (natural gas, biogas, electric)

Remarks

l/100 km (vehicle fuel consumption)
kg CO2 eq. per tkm

100 % trucks EURO 5 compliant
HGV fuel consumption less than 30
l/100 km
100 % trucks, trailers and loading
equipment compliant with PIEK noise
standards, or equivalent standards thatenable night-time deliveries

Recommended indicators

Percentage vehicles within transport fleet
compliant with different EURO classes

Minimise the environmental impact ofroad vehicles through purchasing
decisions and retrofit modifications(see Section 2.3.4.7)

100 % vehicles fitted with low rolling
resistant tyres
100 % vehicles and trailers designed or
modified to improve aerodynamic
performance

Best Environmental Management Practice in the Retail Trade Sector

Percentage of vehicles, trailers and loading
equipment compliant with PIEK noise standards,
or equivalent standards that enable night-time
deliveries with
Percentage of vehicles in transport fleet poweredby alternative fuel sources, including naturalgas, biogas, or electricity
Percentage of vehicles within transport fleet
fitted with low rolling resistance tyres

Applicability: large retailers with in-house transport andlogistic services, third party transport providers.
Economics: for vehicles driven long distances at higher
speeds (> 80 km/h) small investments in aerodynamic
modifications and larger investments to upgrade to
aerodynamic tractor and trailer units offer payback periodsof months to years. Low rolling resistance tyres payback
over months to years. Alternatively powered vehicles
require considerably higher investment costs that may not
be paid back, but this depends on national fuel and roadtaxation policies. For the example of Albert Heijn,
investment in low-noise transport and loading equipment
increased capital costs by 15 %, but reduced overall
transport and logistic costs by more than 20 %.

Percentage of vehicles and trailers withintransport fleet designed or modified to improveaerodynamic performance382

Chapter 5
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Link to BEMP

Recommended indicators

Remarks

WASTE MANAGEMENT
kg or tonne of food waste, absolute value, per m2
or per EUR mill. of turnoverFood waste minimization (see Section
2.4.6.1)

Zero food waste sent to landfills or
incineration plants

Percentage of food waste generation referred tototal food purchases

Integration of waste management inretailers activities (see Section 2.4.6.2)

kg or tonne of food exceeding the sell-by datebut not the use-by date, donated to charitable
institutions

Anaerobic fermentation of food waste(see Section 2.4.6.4)

kg of food waste sent to recovery operations,such as fermentation

Applicability: food retailers of any size and in
any European country
Economics: treatment costs less than EUR 100
per tonne. Achieved savings are higher if
prevention measures are implemented or foodexceeding sell-by date is donated.

kg of food waste sent to landfill or incinerationplans

A waste management system is
integrated in the store and its objective
is to recycle or reuse 100% of
secondary packaging materials

Consumer return of 80% without
depositConsumer return of 95% with deposit

Applicability: any food retailer could
implement this practiceIntegration of waste management inretailers activities (see Section 2.4.6.2)

Percentage of recycling and reuse rates

Return systems for PET and PE bottles
and for used products (see Section
2.4.6.3)

Percentage recycling rate defined per sales ofreturnable bottle

MATERIALS CONSUMPTION
100 % certified/recycled paper
Grammage less than 49 gr/m2
Less than 10 % coated paper

Economics: prevention measures and joint
initiatives among stores can produce costs
savings
Applicability: any food retailer could
implement this practice
Economics: expensive equipment andmaintenance and staff resources needed. In
some countries it is mandatory, as Germany.
For example, Switzerland is implementing EUR
0.013 fee per bottle to incentive the system.

Percentage of paper used that is certified
Reduced consumption and use of moreenvironmentally- friendly paper forcommercial publications (see Section
2.5)

100 % print shops EMAS/ISO 14001
certified
WATER MANAGEMENTBest Environmental Management Practice in the Retail Trade Sector

Grammage of paper used
Percentage of coated paper
Percentage of printing shops certified EMAS or
ISO 14001

Applicability: any food retailer could
implement this practice
Economics: expected costs reduction, if
compared to normal practices.

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Link to BEMP

Recommended indicators

Remarks

WASTE MANAGEMENT
Rainwater collection and/or infiltration
on site is integrated in the water
management system

Rainwater from roofs and parking
areas: collection and reuse and/or
infiltration on site (see Section: 2.6)

Y/N

Applicability: any retailer could implement
this practice, although climate can be an
important factor when implementing thismeasureEconomics: cost intensive measure

CONSUMER BEHAVIOR
Zero one-use bag available atcheckouts

Influencing consumer environmental
behaviour (see Section 2.7)

Best Environmental Management Practice in the Retail Trade Sector

Number of available on-use bags at check outs

Applicability: any food retailer could
implement this practice
Economics: expected costs reduction, if
compared to normal practices.

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5.6

Recommended sector specific key environmental indicators

Indicator

CommonUnits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)

ENERGY PERFORMANCEPer store (site),
Energy consumption (electricity, heat, other
distribution centre or
fuels) per unit of sales area and year.
other and at theorganisational level
Indications:- Renewable energy consumption should not (aggregated value)
1. Specific energy
consumption

2. Specific (linear)consumption forrefrigeration

kWh/m2 yr

be subtracted.
- Correction factors can be used to determine
sales area (in function of height and othertechnical parameters). 'Sales area' should
be defined by the retailer.
- No correction on opening hours is
recommended.
Annualconsumption
figures should be reported.

Per main energyconsuming processes:
heat, electricity forrefrigeration (whereapplicable)
andelectricity for allother uses

Energy efficiency

Energy consumption of the refrigeration
system per linear metre of display case andyear.

kWh/m yr

Indications:- Not applicable to stores without
refrigeration cabinets, such as non-foodretailers.

Best Environmental Management Practice in the Retail Trade Sector

Per store (site)

Energy efficiency

Benchmark of
excellence
and related best
environmental
management practiceSpecific
energyconsumption
forheating, cooling and air
conditioning less orequal to 0 kWh/m2yr if
waste
heat
from
refrigeration can be
integrated. Otherwise,
less or equal to 40
kWh/m2yr for newbuildings
and55
kWh/m2yr for existingbuildings.
(see BEMPs: 2.1.6.1,
2.1.6.2, 2.1.6.3, 2.1.6.4)
Specific(linear)consumptionofcentralised refrigerationof 3000 kWh/m yr.
(see BEMP: 2.1.6.6)

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Indicator

CommonUnits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)Benchmark of
excellence
and related best
environmental
management practiceLighting power installed to meet illuminationneeds (basic and for product presentation
purposes) per unit of sales area and year.

3. Lighting PowerDensity

4. Energy monitoring

5. Percentage ofrefrigerant leakages

W/m2

%

%

Indications:- It is an indicator related to the design andsales concept, applicable to all sizes andtypes of retailers.
- Correction factors can be used to determine
sales area (in function of height and othertechnical parameters). 'Sales area' should
be defined by the retailer.
- Lumens per m2 is a good technicalindicator,but
theenvironmental
performance should be measured in termsof W/m2.
- It can vary within the store (per zone) andduring the day (per period).
Percentage of stores monitored in the energy
management system.
Indications:- The monitoring should include all storesand the most relevant processes.
- Information should be provided about
eventualbenchmarking
mechanisms
implemented
Loss of refrigerants in relation to total
refrigerant load of the installation.
Indications:- Appropriate for food refrigeration at large
installations (centralised systems)- It is recommended to calculate it fromannual refrigerant purchases.
- It is not environmentally relevant for
installations using natural refrigerants.

Best Environmental Management Practice in the Retail Trade Sector

Per
store
(site),
distribution centre orother
Energy efficiency
Per store zone andper day period, whereappropriate

Power consumption lessthan 12 W/m2 forsupermarkets and lessthan 30 W/m2 forspecialist stores.
(see BEMP: 2.1.6.7)

100% of stores andprocesses monitored.

Per store (site)
Energy efficiency
Per process

Benchmarking
mechanisms
implemented.
(see BEMPs: 2.1.6.5,
2.1.6.8)

Per
store(site),
distribution centre orother and at theorganisational level(aggregated value)-

Emissions(see BEMP: 2.1.6.6)

Per
type
refrigerant

of

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Indicator

6. Percentage of storesusing naturalrefrigerants

CommonUnits

Recommended
minimum level ofmonitoring

Short description
Percentage of stores using natural refrigerants
out of the total number of stores withrefrigeration cabinets.

%
Indications:- Appropriate for foodrefrigeration cabinets.

Best Environmental Management Practice in the Retail Trade Sector

retailerswithOrganisation level

Key environmental
area (26)Emissions

Benchmark of
excellence
and related best
environmental
management practiceGeneral use of naturalrefrigerants.
(see BEMP: 2.1.6.6)

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Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)Benchmark of
excellence
and related best
environmental
management practice

SUPPLY CHAIN PERFORMANCE
Supply chain
environmental
performance
improvements cover:This indicator states whether supply chain
improvement programmes are implemented
systematically for priority product groups.

7. Systematic
implementation of
supply chain
improvement
programmes acrosspriority productgroups

8. Implementation ofsystematic
assessment(independently or
through consortia) ofcore product supply
chains

(y/n)

(y/n)

Indications:- Applicable for retailers of all sizes.
- For small retailers, this refers to theapplication of green procurement and toencouraging environmentally friendly
consumption.
- For large retailers selling private label
products, a higher level of integration of
supply chain sustainability into thebusiness strategy is possible.

Waste

Systematic
implementation of
supply chain
improvement
programmes acrosspriority product groups.

Biodiversity(see BEMP: 2.2.6.1)

Energy efficiency
Organisation level,
per product supply
chain

Material efficiency
Water

EmissionsThis indicator refers to the assessment of
supply chain environmental impacts and to theidentification of effective product supply
chain improvement mechanisms.

Supply chain
environmental
performance
improvements cover:

Indications:- If available, data on the lifecycle
environmental loadings (CO2 eq., kg SOxeq., kg VOC eq., kg 1,4-DCB eq., kg Sbeq., m3 water, kg PO4 eq.), biodiversity
pressures,
location-specificwaterpressures, expressed per product mass or,where more accurate, per functional unit,
for the assessed products could be reported.
- High sales products should be consideredcore products and be prioritised for theassessment.

Energy efficiency

Best Environmental Management Practice in the Retail Trade Sector

Organisation level,
per product supply
chain

Material efficiency
Water
Waste
Biodiversity

Implementationofsystematic assessment(independentlyorthrough consortia) ofcore product supply
chains.
(see BEMP: 2.2.6.2)

Emissions388

Chapter 5

Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)The environmental
standards address:

9. Productimprovement rate

Percentage
sales ofproducts
certified to
specifiedenvironmental
performancelevel

The following rates should be considered.
Percentage sales of:- products with third party environmental
certification;- private labels products complying withretailer-defined environmental
requirements;- food products certified as organic;- cotton certified as organic;- non-food products with eco-labels.

Energy efficiency
Organisation level,
per product group

Material efficiency
Water
Waste
Biodiversity
Emissions

Benchmark of
excellence
and related best
environmental
management practice100%
certification,
within a product group,
according to third party
environmental
standards.
100% private label
sales, within a productgroup, complying withretailer-definedenvironmental
standards.
10% sales within foodproduct groups certified
as organic.
50%
cottonsales
certified as organic.
10% sales within nonfood product groups
certified according to
official (ISO Type-I)
environmental labels.
(see BEMPs: 2.2.6.2,
2.2.6.3, 2.2.6.4, 2.2.6.5,
2.2.6.6, 2.2.6.7, 2.2.6.8)

Best Environmental Management Practice in the Retail Trade Sector389

Chapter 5

Indicator

Commonunits

Short description

Benchmark of
excellence

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Organisation level

Energy efficiency-

Material efficiency(see BEMPs: 2.3.4.1,
2.3.4.2, 2.3.4.3, 2.3.4.4,
2.3.4.5, 2.3.4.6, 2.3.4.7)

Material efficiency-

Emissions(see BEMPs: 2.3.4.1,
2.3.4.2, 2.3.4.3, 2.3.4.4,
2.3.4.5, 2.3.4.6, 2.3.4.7)

Material efficiency-

Emissions(see BEMPs: 2.3.4.1,
2.3.4.2, 2.3.4.3, 2.3.4.4,
2.3.4.5, 2.3.4.6, 2.3.4.7)

and related best
environmental
management practice

TRANSPORT AND LOGISTICS PERFORMANCE
Direct fuel energy consumption per tonne
kilometre transported, for total transport andby mode to compare modal options.

10. Specific transportenergy consumption

11. Specific transport
GHG emissions(per productquantity anddistance)

12. Specific transport
GHG emissions(per productquantity)

MJ/tkmkg CO2
eq./tkmkg CO2 eq. /m3 (or pallet)
deliveredkg CO2 eq. /per tonne
productdelivered

Indications:- Based on fuel energy contents.
- For electric power, based on primaryenergy for electricity generation (e.g.
multiply by 2.7).
Provides an indication of the environmental
efficiency of transport operations.
Indications:- For fossil fuels, based on direct combustion
plus indirect extraction and processing
emissions.
- For electricity, based on national average
specific GHG emissions of electricity
generation.
- For biofuels, based on lifecycle assessmentof GHG emissions for relevant fuel source.
Provides an indication of the final
environmental impact of transport operations.
This indicator reflects the distance theproducts are transported. It is lower if the
products are sourced locally/regionally.
Indications:- For fossil fuels, based on direct combustion
plus indirect extraction and processing
emissions.
- For electricity, based on national average
specific GHG emissions of electricity
generation.
- For biofuels, based on lifecycle assessmentof GHG emissions for relevant fuel source.

Best Environmental Management Practice in the Retail Trade Sector

Per transport modeand major route

Organisation level
Per transport modeand major route
Per fuel type

Organisation level
Per transport modeand major route
Per product group390

Chapter 5

Indicator

13. Percentage ofwater/rail transport
between first-tiersuppliers andretailer distribution
centresCommonunits

Short description

This indicator shows the share of more
efficient transport modes out of the totaltransport activities of the retailer.

%

Indications:- The percentage of transport by mode canbe calculated based on tkm or sales value.
- Retailers should distinguish between inlandtransport and overseas transport.
- This indicators is applicable to products
sourced over longer distances.

Recommended
minimum level ofmonitoring

Key environmental
area (26)

Organisation level
Per major route or atleast distinguishing
between inland andoverseas transport

Energy efficiency
Material efficiency

Benchmark of
excellence
and related best
environmental
management practiceOver 50% of inlandtransport between firsttier suppliers and retail
distribution
centres(tkm or sales value) is
by water/rail (where
infrastructure allows).
Over 99% of overseas
transport, according tosales value, is by ship.
(see BEMP: 2.3.4.4)

14. Systematic
optimisation of route
planning

15. Percentage ofvehicles meeting
EURO 5 standards

(y/n)

%

This indicator reflects whether the retailer has
implemented a systematic optimisation of its
distribution
networks
throughtheimplementation of strategic hub locations,consolidated platforms, and direct routing.
This includes back-hauling waste and supplierdeliveries on store deliveries return journeys,use of telematics, and extended delivery
windows.
Indications:- Applicable to large retailers with in-housetransport and logistics services, third party
transport providers.
- If possible, also vehicle fuel economy(l/100 km) should be monitored.

Best Environmental Management Practice in the Retail Trade Sector

Energy efficiency
Organisation level

Organisation level

Material efficiency

Emissions

Systematic optimisationof route planning.
(see BEMP:
2.3.4.6)

2.3.4.5,

100% trucks comply
with the EURO 5
standards.
(see BEMP: 2.3.4.7)

391

Chapter 5

Indicator

Commonunits

Short description

Recommended
minimum level ofmonitoring

Key environmental
area (26)Benchmark of
excellence
and related best
environmental
management practice

WASTE MANAGEMENT
Organisation level

Weight of produced waste per year.

16. Generation of waste

17. Percentage of foodwaste sent to landfill
or incinerationkg/yr
tonnes/yr
kg/m2yr%

Indications:- It can be expressed per unit of sales area.
- It should be monitored separately for
different types of waste.

Percentage of food waste that is not sent torecovery operations, such as fermentation, outof the total food waste generated.

Per type of waste:
e.g.
food
waste,
plastic, paper andcardboard,wood,
metal,
hazardous
materials, etc.

-

Waste

19. Return rate ofpackaging and usedproducts%

Indications:- Some retailers include the amount ofreused materials. A clear indication on thatshould be provided when reporting thisindicator.
Consumer return rate of product packaging,such as plastic bottles, and used products,
such as batteries and electronic equipments,
out of the total sales of such products.

%
Indications:- For PE and PE bottles return systems, therate of take-back should measured per
returnable bottles sold.

Best Environmental Management Practice in the Retail Trade Sector

2.4.6.1,

Per destination:
reuse, external
recycling,fermentation,
donation, etc.
Organisation level

Waste

Weight of recycled materials divided by total
amount of waste.

18. Recycling rate ofsecondary packaging(see BEMP:
2.4.6.2)

Organisation level

Material efficiency
Waste

0% food waste sent tolandfill or incineration.
(see BEMP: 2.4.6.1)
A waste management
system is integrated in
the store and its
objective is to recycleor reuse 100% of
secondarypackagingmaterials.
(see BEMP: 2.4.6.2)
Consumer return of
80% without deposit.

Per type of returnable
packaging/productMaterial efficiency
Waste

Consumer return
95% with deposit.

of(see BEMP: 2.4.6.3)

392

Chapter 5

Indicator

Commonunits

Short description

MATERIALS CONSUMPTION EXCLUDING REFRIGERANTS
20. Certified or recycled
Percentage of certified paper (e.g. FSC) or
paper forrecycled paper used for commercial%
commercial
publications
publications
WATER MANAGEMENT

21. Stores withrainwater collection%

Percentage of stores with a system ofrainwatercollection
and/orrainwater
infiltration systems

Recommended
minimum level ofmonitoring

Key environmental
area (26)Material Efficiency-

Benchmark of
excellence
and related best
environmental
management practice100%
certifiedrecycled paper.

or

Waste
(see BEMP: 2.5)

-

Water

Rainwater collection
and/or on-site
infiltration is integrated
in the water
management system.
(see BEMP: 2.6)

CONSUMER BEHAVIOUR
Number of plastic bags given or sold at checkouts.

22. Number of bags#

Indications:- The number of free one-use plastic bags
should be controlled but, as well, sold or
given with promotional purposes or thenumber of reusable plastic bags sold
- It can be reported per customer or per 1000
customers or per turnover unit.

Best Environmental Management Practice in the Retail Trade Sector

Free one-use plastic
bags, free one-use
biodegradable plastic
bags, sold one-use
plastic bags, sold reusable bags

Material Efficiency

Zero one-use bags
available at check-outs.

Wastes(see BEMP: 2.7)393

Glossary

GLOSSARY OF TERMS AND ABBREVIATIONSENGLISH TERM
4C
Achieved
environmental benefits
AD
AD
ADEME
AFA
AH
Bar
BCI
BEMP
BMP
BOD
BSI
BSR
BSR WWQG
C
ºC
CDD
CH4
CHF
CFCs
CML
CNG
CO2
CoC
COD
COP
CPP
CR
CRI
cross-media effects
CS
CSR
dB (A)
DC
1,4-DCB eq.
DEFRA
EC
Eco Invent
EIPRO
EL
EMAS
EMS
EPBD
EPI
ERRT
ETH
EU
EU-15
EU-25
EU-27
EUR

MEANING
Common Code for the Coffee Community Association
main environmental impact(s) to be addressed by the technique (process orabatement), including emission values achieved and efficiency performance.
Environmental benefits of the technique in comparison with others
AxfoodAvoid Deforestation
French Environment Agency
Air freight Avoidance
Albert Heijn
bar (1.013 bar = 1 atm)
Better Cotton Initiative
Best Environmental Management Practice
Better Management Practice (for agriculture, e.g. in BCI)
Biological Oxygen Demand (of emissions to water)
Better Sugarcane Initiative
Business for Social Responsibility
BSR Wastewater Quality Guidelines
Carbondegree Celsius
Cooling Degree Days
MethaneSwiss Francchlorofluorocarbons
Institute of Environmental Sciences (Leiden University)
Compressed Natural Gas
Carbon Monoxide
Code of Conduct
Chemical Oxygen Demand (of emissions to water)
Coefficient of Performance
Cleaner Production Programme (H&M initiative for factory improvement)
Chemical Restrictions
Colour Rendering Index
the calculation of the environmental impacts of water/air/soil emissions, energyuse, consumption of raw materials, noise and water extraction
Coop Switzerland
Corporate Social Responsibility
Decibel soundDistribution Centre
1,4-Dichlorobenzene equivalent (a reference for toxicity in LCA)UK Department for Environment, Food and Rural Affairs
European Commission
LCA database
Environmental Impact of Products (2006 EC Study)
Ecolabel
the Community Eco-Management and Audit Scheme
Environmental Management System
Energy Performance of Buildings Directive
Environmental Performance Indicator
European Retail Round Table
Federal Institute of Technology Zurich
European Union
Member States of the European Union before 1 May 2004
Member States of the European Union from 1 May 2004 until 31 December
2006
Member States of the European Union from 1 January 2007
Euro – European currency

Best Environmental Management Practice in the Retail Trade Sector395

Glossary
ENGLISH TERM
FAO
FCs
FiBL
FSC
FT
GBP
GCD
GEMIS
GG
GHG
GMO
GPS
GRI
Gt
GWh
GWP
HCFCs
HDD
HFCs
HGV
HVAC
IA
IPCC
IPM
IPPC
kcal
KF
KF Sweden
kg
kJ
KRAV
kWh
LCA
LED
LGV
LHV
lm
LT
m
m/min
m2
m3
m3/h
MDO
mg
mg/m3
MG
MGO
µm
MJ
mm
MSC
Mt

MEANING
Food and Agricultural Organisation (United Nations)
Fluorocarbons
Swiss Research Institute for Organic Agriculture
Forest Stewardship Council
Fair Trade
Great British PoundGreat Circle Distance
Global Emission Model of Integrated Systems (LCA tool)
Global Good Agricultural Practice (also Global GAP) agricultural hygiene andenvironmental standard
Greenhouse Gases
Genetically Modified Organisms
Global Positioning System
Global Reporting Initiative (UN guidance for CSR reporting)
Giga (109) tonne
Gigawatt-hour (1 GWh = 3600 GJ)
Global Warming Potential (a measure of how a given mass of greenhouse gas
contributes to global warming)
Hydrochlorofluorocarbons
Heating Degree Days
Hydrofluorocarbons
Heavy Goods Vehicle
heating, ventilation and air conditioning
IKEA
Intergovernmental Panel on Climate Change
Integrated Pest Management (a BMP defined by the FAO))
integrated Pollution Prevention and Control
kilocalorie (1 kcal = 4.19 kJ)
Kingfisher
Kooperativa Förbundet (Coop Sweden)
kilogram (1 kg = 1000 g)
kilojoule (1 kJ = 0.24 kcal)
Swedish organic certification organisation
kilowatt-hour (1 kWh = 3600 kJ = 3.6 MJ)
Lifecycle Assessment
Light-Emitting Diode
Light Goods Vehicle
Longer Heavier Vehicle
lumen
Low Temperature (cooling), i.e. temperatures below 0ºC
metre
metre/minutesquare metre
cubic metre
volume flow: if not otherwise mentioned in this document, the volume flowsrefer to 10 vol-% oxygen and standard stateMedium Density Oil
milligram (1 mg = 10-3 gram)concentration: if not otherwise mentioned in this document, the concentrationsof gaseous substances or mixtures of substances refer to dry flue-gas at 10 vol% oxygen and standard state
MigrosMedium Gas Oil (see also MDO)
micrometre (1 µm = 10-6 m)
Mega Joule (1 MJ = 1000 kJ = 106 joule energy)
millimetre (1 mm = 10-3 m)
Marine Stewardship Council
Megatonne (1 Mt = 106 tonne)

Best Environmental Management Practice in the Retail Trade Sector396

Glossary
ENGLISH TERM
MT
MW
MWh
N
N2O
NACE code
NGO
ng
NH3
Nm3
NMVOC
NOx
NTM
OC
Q
P
PAH
PAS 2050
PCF
PCR
PDCA
PE
PEB
PEFC
PET
PIEK
PM
PO4
ppm
REAP
RFA
RFI
RSPO
RTRS
RW
SAP
SBB
SCSG
SDG
SDDG
SimaProSME
SOx
SS
standard conditions forthe cement andmagnesium oxide
industries
standard conditions forthe lime industry
standard state
T
TEWI
TFEU
tkm
T&L
TO

MEANING
Medium Temperature (cooling), i.e. temperatures between 1ºC and 8 ºC
Megawatt
Megawatt-hour (1 MWh = 3600 MJ = 3.6 GJ)
Nitrogen
Nitrous Oxide (a GHG)
French abbreviation for "Nomenclature generale des activites economiques"; itis the Classification of Economic Activities in the European Community
Non Governmental Organisation
nanogram (1 ng = 10-9 gram)Ammonia
Normal cubic metre (101.3 kPa, 273 K)
Non-Methane Volatile Organic Compounds
Nitrogen Oxides
Swedish Transport Association
Organic
total amount of energy transferred as heat
Phosphorus
Polycyclic Aromatic Hydrocarbons
UK PCF standard
Product Carbon Footprint
Product Category Rule (for PCF calculation)
Plan, Do, Check, Act (approach to energy/environmental management)
polyethylene
Positive Energy Building
Programme for the Endorsement of Forestry Certification schemes
polyethylenterephthalate
Dutch noise standard
Particulate Matter (air emissions)
Phosphateparts per million
Retailers' Environmental Action Programme
Red-list Fish species Avoidance (based on Greenpeace red list)
Radiative Forcing Index (GWP index according to altitude or emissions)
Roundtable on Sustainable Palm Oil
Roundtable on Responsible Soy
REWE
Sustainable Agricultural Production (M&S initiative)
Swiss rail company
Sainsbury's Crop Sustainability Group
Sainsbury's Development Group (for non-dairy products)
Sainsbury's Dairy Development GroupLCA toolsmall and medium enterprises
Sulphur Oxides
Sainsbury'sreferring to a temperature of 273.15 K and a pressure of 1013 hPa and oxygen
content of 10 %referring to a temperature of 273.15 K and a pressure of 1013 hPa and oxygen
content of 11 %referring to a temperature of 273.15 K and a pressure of 1013 hPa
tonne (metric)
Total Equivalent Warming Impact
Twenty Foot Equivalent Unit
tonne-km (transport metric)
Transport and Logistics
Tesco

Best Environmental Management Practice in the Retail Trade Sector397

Glossary
ENGLISH TERM
TOC
UN
UTZ
U-value
vkm
VOC
WBCSD
WE
WRI
WWF
yr
ZEB

MEANING
total organic carbon
United Nations
Certification organisation and label for cocoa, coffee, oils, tea
the overall heat transfer coefficient, describes how well a building element
conducts heat. It measures the rate of heat transfer through a building element
over a given area, under standardized conditions.
Vehicle kilometre
Volatile Organic Compounds (emissions to air)World Business Council for Sustainable Development
WaitroseWorld Resources InstituteWorld Wildlife Fundyear
Zero Energy Building

Best Environmental Management Practice in the Retail Trade Sector

398

Appendices

APPENDICES
Appendix A1. Goals and targets listed in Coop Switzerland's 2010 Sustainability Reportthat reflect the integration of supply chain sustainability issues into this retailer's
structure and operations
Goals 2008-2010
Consolidate Coop's leadership inenvironmentallyandsocially
responsible products in all retail
formats
Expand the range of fish and shellfish
from sustainable farming (organic) orfrom wild catch (MSC)
Expand range of wood and paper
products with the FSC label or madefrom recycled fibre
Successfully market products thathave been sustainably produced in
Switzerland (pro Montagna, Slow
Food, Bio Regio)
Introduce
supplier
management
system that extends as far as theirproduction facilities

Raise awareness, train and audit
suppliers of fruit and vegetables in
Spain, Morocco and Italy in quality,
ecology and social standards

Increase the proportion of coffee, palm
oil and soy from sustainableproduction
Define and exploit synergies with
Eurogroup and Coopernic in relation
to sustainable sourcing

Make the best possible use of Coop
Sustainability Fund

Measures taken 2009
100 new products for Naturaplan range;
CO2 neutrality for Naturaline knitwear range;
Relaunch and expansion of Oecoplan range;
Range expansion and sales growth for Pro Montagna range
Increase share of certified sustainable fish to 33 % of fish sales;
Delisting of additional six products (total 19) from endangered
stocks and substitution with sustainable alternatives
Prix Guarantee toilet paper entirely from recycled fibre;
Increase in proportion products from FSC wood to
100 % wooden toys, 80 % of stationary and 70 % handicrafts
range
Range expansion and sales growth for Pro Montagna range
New traceability and monitoring system for Naturaline andNaturafarm (low achievement);
Examination of how supplier audit information can be
integrated into SAP
Organisation of stakeholder roundtable and support for two
major employers (10 000 employees) to complete BSCI process
Development of a training module and training of threevegetable suppliers (25 producers) in preparation for GRASP
audit
Auditing of ten suppliers of berries for compliance with Coopwater management requirements
Rise in share of 4C coffee from 8 % to 20 % (2020 target
100 %);
80 % palm oil in own-brand products covered by sustainability
certificates;
Stipulation on sustainable soy included in Coop feed guideline
for farmers
Workshop on sustainability in fruit and vegetable sector;
Drafting of commitments on fish, fruit and vegetables andproducts from risk countries within Coopernic
Promotion of research projects at interface of climate
protection, securing food supplies and agriculture;
Development of CO2 neutral production of all Naturalineorganic textiles and cotton wool products;
Support for sustainable sourcing of cocoa in Honduras;
Raising public awareness of sustainable consumption throughexhibitions at innovative 'tropical houses'

Best Environmental Management Practice in the Retail Trade Sector

399

Appendices

Appendix A2. Some key commitments contained in M&S's 2009 Sustainability Report that
demonstrate integration of supply chain environmental sustainability considerations into
retailer structure and operations
Commitment

Aim

Progress

Buyingguidelines

Training all relevant employees on
responsible buying as part of theirdevelopment by 2012.

Developed a responsible buying course with
Traidcraft and Chartered Institute of Purchasing
and Supply that is being integrated into a training
programme.

CottonProduce 25 % of cotton fromsustainable sources by 2015, and
50 % by 2020.

Cotton sustainability strategy promotes Fairtrade,
organic, recycled and more sustainable cotton.
Improving cotton production in India with WWF.

Food carbon
footprint

Work with Carbon Trust to identify'hotspots' and set targets to reduce
GHG emissions by 2012.

Calculated carbon footprint of M&S food sales(3.3 Mt CO2 eq./yr). Developing a CO2
performance indicators and set of priority actions
for dairy farmers.

Greenfactories

Support the development of"green" factories with suppliers.

Have supported the development of four generalmerchandise and one green food factory.

Pesticide
network

Launch a Pesticide Residue
Reduction Network with suppliers.

Trials underway to reduce pesticide use on
strawberry production, and develop natural
pesticide alternatives to control moth larvae in
Indian rice production.

Product
information

Improving traceability for principal
raw materials used within General
Merchandise supply chain by 2015.

Have developed an improved database using SAP
software, operated with Supplier Ethical Data
Exchange, to manage product information down to
the factory level.

Supplier
exchange

Launch a supplier exchange todrive best practices and stimulateinnovation.

In 2009/10, used supplier exchange network todevelop
Food
Supplier
Environmental
Sustainability Framework and Measurements.

Sustainable
farmingEngage meat, dairy and flower
farmers with M&S Sustainable
Agriculture Programme by 2012,and other farmers by 2015.

In 2009/10 a set of environmental standards weretrialled on selected dairy, lamb, chicken andproduce farms.

SustainabletextilesReduce the environmental impact
of textiles throughout the supply
chain by 2012.

Contributed to UK DEFRA's Sustainable Clothing
Action Plan and established new standards for
clothing factories, dye houses and raw materials.

Water
efficiency(suppliers)

Work with suppliers to improvewater use efficiency during
production.

Worked with WWF to establish water footprint for
clothing and five food supply chains. Published
Water Efficiency Guide for farmers and included
water use in M&S farm standards.

Best Environmental Management Practice in the Retail Trade Sector

400Appendices

Appendix A3. Business for Social Responsibility Waste Water Quality Guidelines

Table.5.1:

Waste water quality guideline effluent concentration limit values

Parameter
TemperaturepH
Total Suspended Solids (TSS)
Biochemical Oxygen Demand in 5 days
(BOD5)
Chemical Oxygen Demand (COD)
Antimony
Arsenic
Cadmium
Chromium
CobaltCopperCyanideLead
Mercury
Nickel
Zinc

value
u 37
6.0 – 9.0
u 30

Unit
°C

u 30

mg/l

u 200
u 0.01
u 0.01
u 0.01
u 0.01
u 0.02
u 0.25
u 0.2
u 0.1
u 0.01
u 0.2
u 1.0

mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
ADMI units or
Co-Pt units

Colour

u 150

Foam

No visible discharge of floating
solids or persistent foam

Best Environmental Management Practice in the Retail Trade Sector

mg/l

401

Appendices

Appendix A 4. H&M Chemical Restrictions List
Azo Dyes and Pigments: 4-aminodiphenyl, Benzidine, 4-Chloro-o-toluidine, 2-Naphthylamine, o-minoazotoluene, 2Amino-4-nitrotoluene,
2,4-Diaminoanisole,
4,4’-Diaminodiphenylmethane,
3,3’-Dichlorobenzidine,
3,3’Dimethoxybenzidine (o-Dianisidine), 3,3’-Dimethylbenzidine (o-Tolidine), 3,3’-Dimethyl-4,4’-diaminodiphenylmethane, pChloroaniline, p-Cresidine, 4,4’-Methylen-bis-(2-chloroaniline), 4,4’-Oxydianiline, 4,4’-Thiodianiline, 2,4-Toluenediamine,o-Toluidine, 2,4,5-Trimethylaniline, o-Anisidine, p-Aminoazobenzene, 2,4-Xylidines, 2,6-Xylidines, Disperse Dyes:
Disperse Blue 1, Disperse Blue 3, Disperse Blue 7, Disperse Blue 26, Disperse Blue 35, Disperse Blue 102, Disperse
Blue 106, Disperse Blue 124, Disperse Brown 1, Disperse Red 1, Disperse Red 11, Disperse Red 17, Disperse Orange
1, Disperse Orange 3, Disperse Orange 11, Disperse Orange 37, Disperse Orange 76, (previously designated Orange37), Disperse Yellow 1, Disperse Yellow 3, Disperse Yellow 9, Disperse Yellow 23, Disperse Yellow 39, Disperse Yellow
49, Other Dyes: Acid Red 26, Basic Red 9, Basic Violet 14, Direct Black 38, Direct Blue 6, Direct Brown 95, Direct Red
28, Solvent Yellow 1, Solvent Yellow 2, Solvent Yellow 3, Para-phenylenediamine, Flame Retardants: Tris(2,3dibromopropyl) phosphate (TRIS), Bis(2,3-dibromopropyl) phosphate, Tris-(aziridinyl)-phosphineoxide, (Tris(1aziridinyl)phosphine oxide) or (TEPA), Polybromodiphenyl ethers (PBDE’s), Tetrabromobisphenol A (TBBP A),
Polybromobiphenyles(PBB’s),Tri-o-cresyl
phosphate,Tris(2-chloroethyl)
phosphate(TCEP),
Hexabromocyclododecane, 2,2-Bis(bromomethyl)-1,3-propanediol, Tris(1,3-dichloro-isopropyl) phosphate (TDCP),
Triphenyl Phosphate (TPhP), Chloroparaffines: Short Chained (SCCP’s), Medium Chained (MCCP’s), Formaldehyde,
Polyvinylchloride (PVC), Phthalates: Di-isononyl phthalate (DINP), Di(ethylhexyl) phthalate (DEHP), Di-n-octyl
phthalate (DNOP), Di-iso-decyl phthalate (DIDP), Butyl benzyl phthalate (BBP), Dibutyl phthalate (DBP), All otherphthalates (all other esters of o-phthalic acid), Organotin Compounds: Dibutyltin (DBT), Tributyltin (TBT),
Tricyclohexyltin (TCyHT), Trioctyltin (TOT), Triphenyltin (TPhT), Tripropyltin (TPT), Triclosan, Bisphenol-A (BPA),
Antimony (Sb), Arsenic (As), Cadmium (Cd), Chromium (Cr), Chromium VI (Cr6+), Cobalt (Co), Lead (Pb),
Mercury (Hg), Nickel (Ni), Phenols: Pentachlorophenol (PCP) and its salts and esters, Tetrachlorophenol (TeCP) andits salts and esters, o-Phenylphenol (OPP), Pesticides: Aldrin, Captafol, Chlordane, Chlordecone (Kepone),
Chlordimeform, Chlorobenzilate, DDD, DDE, DDT, Dibromochloroproprane (DBCP), Dieldrin, Dinoseb DTTB (Timiperone),
Endrin,Ethylenedibromide,
Heptachlor,
Heptachloroepoxide,
Hexachlorobenzene,
Hexachlorocyclohexane, ß-Hexachlorocyclohexane, V-Hexachlorocyclohexane, Lindane (W-Hexachlorocyclohexane),
Isodrin, Kelevan, Metamidophos, Methoxychlor, Mirex, Monocrotophos, Monomethyldibromodiphenylmethane,
Monomethyldichlorodiphenylmethane, Monomethyltetrachlorodiphenylmethane, Parathion, Parathion-methyl, Perthane(Ethylan), Phosphamidon, Quintozene, Strobane, Telodrin (Isobenzan), Toxaphene (Camphechlor), Halogenatedbiphenyls with the formula C12HnX10-n X=halogen, n=1,2,...9, Halogenated terphenyls with the formula C18HnX14-n
X=halogen, n=1,2,...13, Halogenated naphthalenes with the formula C10HnX8-n X=halogen, n=1,2,...7, 2-(2,4,5-),
Trichlorophenoxy, propionic acid and its salts and 2-(2,4,5-Trichlorophenoxy) propionyl compounds (2,4 – D), 2,4,5Trichlorophenoxyacetic acid and its salts and 2,4,5-Trichlorophenoxyacetyl compounds (2,4,5 – T), Alkylphenol
Ethoxylates/Alkylphenols (APEO/AP): Nonylphenol ethoxylates (NPEs), Octylphenol ethoxylates (OPEs),
Nonylphenol (NP), Octylphenol (OP), Cationic Surfactants: Distearyldimethyl ammoniumchloride (DSDMAC), Ditallow
dimethyl ammonium chloride (DTDMAC), Dihydrogenated Tallow, Dimethylammonium Chloride (DHTDMAC),
Octamethylcyclotetrasiloxane, Dimethylformamide (DMF), Isocyanates: Hexamethylene diisocyanate (HDI),
Isophorone diisocyanate (IPDI), 2,4-Toluene diisocyanate (TDI), Diphenylmethane diisocyanate (MDI),
Tetramethylxylene diisocyanates (TMXD), Perfluorinated Alkylated Substances (PFAS): Perfluoro-octane
sulphonate, (PFOS) and PFOS related substances, Perfluorooctanoic acid (PFOA), Polychlorinated Biphenyls(PCBs), Polychlorinated Triphenyls (PCTs), Chlorinated Bleaching Agents, Chlorinated Aromatic
Hydrocarbons: Chlorobenzenes, Chloronaphthalenes, Chlorotoluenes, Chloroxylenes, Polyaromatic Hydrocarbons(PAH): Benzo(a)pyrene, Benzo(e)pyrene, Benzo(a)antracene, chrysene, Benzo(b)fluoranthene, Benzo(j)fluoranthene,
Benzo(k)fluoranthene, Dibenzo(a,h)anthracene, Mineral Oils,
Organic Solvents:
Benzene (Benzol),
Dimethylacetamide (DMAC), 1,4-Butanediol, Dimethylformamide (DMF), Ethylene glycol monoethyl ether, Methylene
chloride,n-Hexane,
4,4’methylenebis(2-chloroaniline)(MBOCA),
Phenol,Tetrachloroethylene(PERC),
Tetrachloromethane, Trichloroethylene

Best Environmental Management Practice in the Retail Trade Sector402

Appendices

Appendix A5. Promoting BMPs amongst farmers in India and Pakistan (WWF, June
2010)
Participatory Approaches for the implementation & dissemination of Better Management
Practices in Pakistan
Training of facilitators, Farmer Field Schools (FFS) and Resource Centres (RC) have been
demonstrated as an effective means for the dissemination of Better Management Practices(BMPs). The approaches are field-based and participatory where each setting has its own
ground realities; problems and solutions; and farmers must be equipped to best address theirproblems. Under the ToF, 25–35 participants, mostly agricultural extension agents,
representatives from the local NGOs, and research institutions are trained over a cropping
season. The ToF course contents are developed on the basis of problems and issues identified byexperts and farmers mutually, to address all aspects of farming including the socio-cultural
aspects. Some non-formal group dynamic activities are also performed in which all ToF
participants work in the field with the farmers. The ToF participants observe a selected field andperform Agro-Eco-System Analysis (AESA) and discuss the observations(27) in the field, every
2nd and 3rd day of the week, throughout the crop season.
Followed by AESA, each group (comprised of five participants) of the ToF participants run 5–
10 FFS (a total of 125–250 farmers). The AESA is again the basic activity of FFS(28), where
they collect the insects, disease specimens and weeds, etc., followed by drawing the figures andsharing results for further decision making. The farmers learn to organise themselves throughthis practice and enhance their decision-making capability for their crop with help and advice ofthe experts. This model aims to help farmers to discover and learn about field ecology andintegrated crop management starting from land preparation to right seed selection, rational useof irrigation, fertilisers and pesticides, harvesting and marketing.
The establishment of RCs is another participatory approach to promote BMPs, where resourcepoor farmers will be facilitated to receive the agricultural inputs on an actual basis and will be
provided with the latest tools and equipment which otherwise are out of their reach. These
centres will also be the focal point for farm advisory services and for the implementation ofcommunity development including agriculture, infrastructure, social and economic activities.
The key to the success of these participatory approaches is the empowerment of the farmers
with an understanding of the agro-ecology of their own fields. Moreover, all these approaches
address the skill development programme enhancing capacity of the farmers towards
observation, analyses, interaction between different factors, developing and establishing simple
experimentations based on their own hypotheses and making the right site-specific management
decisions. In this way farmers become active learners and independent decision makers througha process of learning by doing; which has helped in increasing their income and improving theirlivelihood.

(27) The observations including the soil, seed quality, biological pest controlling agents and crop variety, the crop health need forwater, insect pests and their natural enemies etc(28) In a FFS (Farmer Field School) farmers are trained through Farmer Participatory Technology Development and Dissemination(FPTD&D), during which farmers learn how to make and record detailed observations, how to conduct simple experiments tosolve complex issues and learn to analyse and interpret the results of the findings.

Best Environmental Management Practice in the Retail Trade Sector

403

European Commission
EUR 25998 – Joint Research Centre – Institute for Prospective Technological Studies
Title: Best Environmental Management Practice in the Retail Trade Sector
Authors: Harald Schönberger, Jose Luis Galvez Martos, David Styles
Luxembourg: Publications Office of the European Union2013 – 449 pp. – 21.0 x 29.7 cm
EUR – Scientific and Technical Research series – ISSN 1831-9424 (online)
ISBN 978-92-79-30495-8 (pdf)
doi:10.2791/1775

Abstract
Retailers have a large potential to reduce their environmental impacts and many are already implementing effective actions.
This document describes what are the best practices implemented by frontrunner retailers in all aspects under their directcontrol or on which they have a considerable influence. They cover the energy performance of retailers, the sustainability ofretail supply chains, transport and logistics, waste and other areas including engaging with consumers.
The document also contains sector-specific environmental performance indicators and benchmarks of excellence. These can beused by retailers to monitor their environmental performance and to benchmark it against the performance of frontrunnerretailers in each given specific area.
Overall, this document aims at supporting all actors in the retail trade sector who intend to improve their environmental
performance and seek for reliable and proven information on how best to do it.

9
LF-NA-25998-EN-N

As the Commission’s in-house science service, the Joint Research Centre’s mission is to provide EU
policies with independent, evidence-based scientific and technical support throughout the whole policy
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Working in close cooperation with policy Directorates-General, the JRC addresses key societal
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