Plan A. Because there is no Plan B

Transcription

1 Plan A Because there is no Plan B

2 10 0Sustainability Business sustainability 40% less carbon, closed loop and value added for people wherever we buy and sell All 75,000 employees hungry to use sustainability to drive commercial success - save money, improve productivity, differentiate products, motivate people and develop new business opportunities Sustainable Business On the edge of change 400 companies Culture HWDB New thinking Single issues managed by team on edge of business 4000 companies Philanthropy 1980s Community Investment 1990s CSR 2000s Plan A All SD issues being systematically addressed across whole value chain M&S, Walmart, Unilever, Coke, Nike, McDonalds, Ikea, Mars, Cadburys, GSK, Du Pont, SC Johnson, IBM, Google, Awareness 1930s 1960s 1980s Time Time

3 Halfway Review - Five Questions What is the current view on harm to people/planet? Perfect Storm (50% more energy/food, 30% more water needed in 20 years) Are we making a difference to people/planet? Reduced packaging 16%, food carriers 83%, fuel 20%... And much more Are we making a difference commercially? 50m saved in (shift from expected 40m pa cost) Do consumers still care during a recession? 73% in our recent survey but most want business to do heavy lifting Are other businesses still engaged? Nike, Walmart, Unilever, Coca Cola, P&G, GSK, Ikea,

4 Time to accelerate value creation Customer (Proud to shop M&S Every product/store differentiated) Efficiency (Operational eco-efficiency Value chain efficiency) Motivation (Proud to work for M&S Make a difference to locality) Innovation (Food and clothing Energy, insulation.) Resilience/Access (New - Raw materials, countries of operation)

5 M&S Shoppers The UK population Not my problem 26% Not my problem 19% What s the point 38% 3% What s the point 36% If it s easy 28% 3% If it s easy 35% Crusader 8% Crusader 10% 3% 4% 1%

6 How We Do Business Report 2010

7 Changing customer relationship Product - All 2.7 billion individual M&S items we sell each year to have at least one Plan A quality by 2020 (50% by 2015) Community - Help customers to make a difference on key social and environmental issues (environment, poverty, health) Lifestyle - Help 3m M&S customers develop their own Plan A by 2020 (1m by 2015) Aim.every product, every community, every customer given the option of participating

8 Changing how we do business Business case measuring the costs and benefits Employees 1day volunteering pa, free loft insulation Process director bonus, business foundation Construction 2 learning stores, full life costing Innovation - innovation fund (40 projects to date) Aim.every employee, every commercial plan, every decision

9 Changing our supply chain Traceability back to field Identifying hotspots be pragmatic, 80/20 rule Standards factories, farms, dye-houses, commodities Best practice demonstration facilities, website conferences Collaboration Sustainability Consortium, Roundtables, SEDEX Aim. Every factory, every farm, every raw material..

10 Packaging use reduced by 20% 91% recyclable Much contains recycled content

11 Palm oil in 900 food products CSPO in all by 2015 Green Palm certificates for all as a bridge

12 Best selling bra, focus on design and value for money Made in Sri Lankan ecofactory, 33% more efficient than norm Detailed carbon footprint for 21 components from 12 suppliers Balance of footprint offset via planting 6000 trees, 75% native, 25% fruit trees to create new income for local farmers

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19 10 things that define sustainable business Have a vision Provide leadership Create a plan Change the levers Make people accountable Build a business case Engage customers Support suppliers Form partnerships Show courage

20 Plan A Because there is no Plan B