Ian Barnes Sustainable Development Manager

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1 Ian Barnes Sustainable Development Manager Carbon Auditing Supply Chains Making the Journey Multimodal 2008 Conference NEC Birmingham

2 Topic Areas Far East to UK Logistics mapping and reductions achieved UK Logistics carbon reduction initiatives Products Mapping the carbon footprint

3 The product journey Concept Materials Production Distribution Disposal Use Retail

4 Making the Journey Far East to the UK

5

6 Key process changes Converted 20 to 40 foot containers Consolidated cargo which increased container utilisation Shifted transport mode from Air to Sea

7 Result: CO2 per cubic metre reduced by 29% kg CO2 / cbm % reduction 54.0 Carbon emissions (kg per cubic metre) Carbon reduction strategies Reduction of cbm by air 30 Reduction of kg / cbm by air 20 Increase in container utilization 10 Reduction in terminal handling The study covers the supply chain from CFS facilities/load ports at origin to DC

8 Result: Reduced cost per cubic metre 21% reduction Cost per cubic metre USD/cbm Cost reduction strategies Reduction of air usage Increase in container utilization Reduction in terminal handling without initiatives 2007 The study covers the supply chain from CFS facilities/load ports at origin to DC

9 Result: Continuous CO2 per Cubic Metre reduction Emissions (kg/cbm) The study covers the supply chain from CFS facilities/load ports at origin to DC

10 Making the Journey UK Logistics Carbon Reduction Initiatives

11 Internal Efficiency Double Deck Vehicles Fleet of 41 Reduces 3 journeys down to 2 Saves 5.2 million kilometres and around 1340 tonnes of CO2 emissions p.a. Wagon and Drag 12 Wagon and Drag vehicles provide flexibility for town / edge of town Backloading Saves 2.2 million kilometres of travel on UK roads (around 1,750 tonnes of carbon dioxide) each year.

12 Collaboration A unique collaboration, started in May 2007, with JBT, a leading local road haulage services company based in the North of Scotland. Savings 300,000 miles p.a 150,000 litres p.a Reduces carbon emissions by 12% in Scotland for delivering our products to Boots stores.

13 Making the Journey A products journey

14 The product journey Concept Materials Production Distribution Disposal Use Retail

15 Supply Chain Process Map for Boots Shampoo Products Raw Materials Manufacture Distribution Use Disposal Water Laureth Sulphate Betaine Deionising Manufacturing Process Bottling Waste Automated Landfill Warehouse Singles to store Cocamide DEA Sodium Chloride Glycerin Laureth Sulfosuccinat e Glycol Stearate Other Ingredients PET Pellets Plastic Paper Adhesives Cardboard Bottle Blowing Melt Pellets Cap Manufacture Printing/ cutting Printing/ cutting Bottles Preform Cap Added Label added Automated Group Packing Small Boxes (6) Shrink wrapped Cold Pressed Automated for small boxes, outers by hand Outers (40-60) Landfill RDC Returns Singles to store Landfill Retailer Packaging Recycled Consumed Bottles Shampoo Waste Water Water Treatment Landfill Plastic wrapping Recycled Multi-step Processes Non-Activity Step Raw Materials Analysed Raw Materials Not Analysed Disposal of waste ation

16 Carbon Footprinting Shampoo Footprint - Overall CONSUMER USE - 93% water heating Materials 5% Distribution 2% Production 0.3% Retail 0% Disposal 0.%

17 Carbon Footprinting Shampoo Footprint - Excluding Use Production 5% Distribution 29% PACKAGING (Bottle / cap) 58% Materials 66% Disposal 0.3% Retail 0%

18 Reducing the footprint (1) - manufacture Use of 30% post-consumer recycled PET in blow moulded bottles - footprint reduced by 10% (excluding customer use phase)

19 Reducing the footprint (2) - Redesigning the logistics network Botanics distributed via reusable packaging. Overall footprint reduced by 10% (excluding customer use phase)

20 Reducing the footprint (3) Consumer Use You can help too. Using cooler water to wash your hair cuts CO2 emissions, reduces your energy bills and is actually better for your hair.

21 Summary Active Management of Supply Chains is: Good for the environment Good for business