Carbon Footprint. December 2007

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1 Carbon Footprint December 2007

2 Tate & Lyle believes in sustainable growth: it is socially responsible, it is what our customers want and it makes good business sense. Since 1999 Tate & Lyle has been working throughout the group to reduce our carbon footprint via Reducing energy consumption per unit of output Developing alternative energy sources index Source T&L data

3 What is a carbon footprint? A measure of the impact that a person, organisation or product has on the environment in terms of the amount of carbon dioxide / greenhouse gas produced Primary footprint: A measure of the direct carbon dioxide emissions generated through the combustion of fossil fuels for energy and Secondary/Lifecycle Footprint: A measure which includes the indirect carbon dioxide emissions from the entire lifecycle of a product or service, including those associated with the manufacture and eventual breakdown 3

4 Scope of the Footprints Cultivation International Thames Thames Consumer Milling Refinery Packing Use (Cane only) Raw material production & Fuel use during cultivation & harvesting Water use during cultivation & harvesting Transportation of crops to milling/refining operations Raw material production & Energy & fuel use Direct CO2 emissions Water use Wastewater treatment Waste transport Waste disposal & treatment By-product production & Raw material production & Raw cane sugar Energy & fuel use Direct CO2 emissions Water use Wastewater treatment Waste transport & disposal By-product production & Packaging production & Energy use Packaging waste Packaged product Packaging waste Treatment & disposal of packaging waste 4

5 Objectives and Methodology Objective: to identify and calculate the key factors in the carbon footprints of sugar produced from cane at T&L Thames refinery produced from beet (based on UK data) Methodology developed by URS Corporation Ltd As illustrated we excluded retail and consumer impacts which are generic to the industry Methodology similar in all other respects to other leading organisations i.e. Carbon Trust, UK BSI draft PAS 2050: 2008 Data sources: Thames refinery Publicly available information e.g. beet industry websites, PPC permit applications, Sugar Yearbook EcoInvent database Where assumptions were necessary they were applied to both footprints as appropriate 5

6 What contributes to the Tate & Lyle Cane Sugar carbon footprint? 2 International milling 14-16% Shipping to Thames 13-14% 3 1 Cane farming 3-4% Packing & 18-20% Recycling & disposal of packaging waste 9-11% Refining 35-37% 4

7 What contributes to the UK beet sugar carbon footprint? 2 Beet cultivation 14-26%% 1 Packing & 9-11% Recycling & disposal of packaging waste 4-6% 3 Refining 47-58%

8 Per tonne of sugar, cane produces approximately half the CO2 of beet Beet Cane 8 Source URS 2007

9 Biomass boiler will reduce energy & CO2 impact further from 2009 Tate & Lyle Thames this year commenced a 20m investment in a new boiler using a renewable biomass 70% reduction in energy consumption and carbon emissions from fossil fuels Reduction of total footprint of 25% from field to supermarket shelf To be operational by April 2009 Comparison of CO2 generated per tonne of sugar from sugar cane - refining energy source scenarios 9 Tonnes of CO2 generated per tonne of sugar generated Source URS 2007 CHP energy source Biomass energy source

10 Continuous Improvement Tate & Lyle s Thames refinery is also a current net-exporter to the National Grid (averaging 2-3MW year round); the introduction of the biomass boiler will also create a greener source, thereby helping households to bring down their own carbon footprint. A tool for calculating site wide carbon emissions (also developed by URS), is being used to measure the carbon footprint at other Tate & Lyle Group operations 10

11 Endorsement from FDF Climate change is perhaps the biggest challenge facing the planet. FDF is absolutely delighted by Tate & Lyle s plans for reducing the carbon footprint of its products at its Thames Cane Sugar Refinery. The planned 70% reduction in CO2 emissions from fossil fuels is significant by any standards. Indeed, it is exemplary. It is exactly the sort of change in behaviour that FDF is encouraging under our Five-fold Environmental Ambition. 11 Callton Young, Director of Sustainability and Competitiveness FDF

12 Communication This is a complex area and although there is a high level of consumer interest there is little understanding We want to allay concerns about food miles from cane sugar without adding to consumer confusion From Q we will include a reference to food miles on our Tate & Lyle Cane Sugar retail packs and invite consumers to find out more about our carbon footprint on our consumer website 12 Tate & Lyle s focus is on continuing to reduce the carbon footprint of all it s products, world wide

13 URS URS is a global environmental and engineering consultancy, with 55,000 employees working in 34 countries. URS in-house expertise includes Climate Change Strategy and Carbon Management, providing corporate advice and support associated with the development and review of strategic policies and programmes for energy and carbon management. URS have developed a tool to measure the carbon footprint of Tate & Lyle s UK cane sugar refinery as well as the entire sugar production process from the field to leaving the factory gates. 13