Engaging with suppliers on waste prevention

Transcription

1 Engaging with suppliers on waste prevention SETTING THE CONTEXT As a signatory to the Courtauld Commitment 3 (CC3), Nestlé UK are engaged in waste prevention at source. All Nestle UK sites also follow a policy of zero waste to landfill. Nestlé UK have now engaged with their Tier 1 suppliers with whom they have good relationships to support and encourage action on waste in the wider supply base. WRAP supported this approach to cascade waste prevention because it provided a testbed for the next phase of the Courtauld Commitment (C2025). Nestlé UK worked with WRAP to develop and introduce a set of Key Performance Indicators (KPIs) against which they can evaluate the progress of their suppliers towards developing and implementing a waste minimisation culture at their own sites operations. This also helps Nestlé UK develop a from which to meet their wider, long term sustainability targets. By working as a dedicated team with its suppliers and WRAP, Nestlé UK produced a set of KPIs for their packaging and ingredients suppliers. This approach ensured the suppliers were not only engaged from the onset but were very much part of a feasible and commercially viable solution. By collaborating with key suppliers, we have been able to develop a set of KPI s that have been agreed by everyone and are solution focussed. The benefits will be reduced waste in our supply chain and a for improved supplier engagement and knowledge sharing, Robin Sundaram, Supplier Development Manager, Nestlé UK page 1 Forward

2 DEVELOPING WASTE MINIMISATION KPIs PROCESS The principal aim of developing the waste was to build on the work Nestlé UK have already implemented to minimise waste. This experience helped to engage with suppliers and develop shared KPIs, which reduce cost and value lost, and focus on preventing waste across the supply chain. To ensure the project was a success for both Nestlé UK and its suppliers, buy-in from and collaboration with Nestlé UK s Corporate Sustainability and Procurement Teams was secured. Commitment from Nestlé UK and its Tier 1 suppliers was essential as attendance at two workshops and review and agreement of the final KPIs and implementation plan were required. In addition, it was important to ensure the KPIs proposed were cost effective and fed into overarching business commercial decisions and drivers. THE KEY ELEMENTS The key elements of the approach are outlined below. By following these steps, it is possible to develop waste for suppliers that are focused, appropriate for their operations and achievable over a number of years. THE APPROACH FOR ENGAGING SUPPLIERS IN WASTE PREVENTION Understand and review suppliers waste minimisation activities Gives a good indication of what your suppliers have already achieved Develop the business case to adopt waste reduction KPIs This will help with supplier buy-in and engagement in the. WRAP has a variety of resources to draw on to develop the business case Develop a set of waste 1) Workshop 1 with suppliers: Set the context and business case for developing KPIs, and the importance of their role in doing so Identify the key criteria and focus areas for the KPIs; barriers and opportunities, and implementation mechanisms 2) Draw up draft KPIs and review with suppliers (incl. implementation mechanisms) 3) Workshop 2 with suppliers: Sign off the KPIs Finalise the and support mechanisms Set up and initiate a supplier forum for ongoing activity and communication Back page 2

3 KPI CONSIDERATIONS, IMPLEMENTATION AND REPORTING When developing the KPIs it is important to take the following into consideration: Who is the audience? Can the suppliers be grouped e.g. into packaging and ingredients. This is important as it ensures that KPIs are developed by a specific audience, as not all KPIs will be relevant to all suppliers and some will need to be focussed to the products suppliers manufacture. Definitions and scope. Ensure everyone agrees with definitions used in the KPIs e.g. waste and zero waste; and what is and isn t included within the definition. WRAP was able to provide guidance on definitions and legal requirements. Agree what supplier sites are included e.g. UK sites only. Reporting. What mechanisms will be used to report against the KPIs e.g. via a supplier or portal? How often and when should take place? Clarify what the data will be used for and if it will be reported anonymously. The mechanism should not be onerous or duplicate information already reported. Will the information and data reported be audited? If so, agree on who should be used to audit the suppliers claims. Evidence required. Decide on what evidence, and level, is required to illustrate that KPIs are being achieved. Achievability of the KPIs. Not all suppliers will be at the same level and the KPIs need to reflect this by offering a tiered approach which allows suppliers to progress through the KPIs from compliance, through to advanced. Support and guidance. Identify what kind of support is required to implement and report against the KPIs e.g. waste policy templates, access to WRAP material. page 3

4 THE RESULTS By working as a dedicated team, and with suppliers, Nestlé UK, with WRAP produced a set of KPIs for their packaging and ingredients suppliers (see Appendix 2). By developing the KPIs with their suppliers, Nestlé UK have shared the value of the initiative, which ensured the suppliers were not only engaged from the onset but were very much part of a feasible and workable solution too. WHAT NEXT FOR NESTLÉ UK? Due to the success of the KPI development the suppliers requested to continue to meet up twice a year in a formalised forum to engage on the topic of waste prevention and share best practice. Following the internal launch of the KPIs it was agreed to use a supplier network to share best practice, WRAP information and against the KPIs. This is currently being developed and should be implemented in Autumn For Nestlé UK the development of these waste minimisation supplier KPIs is a for the development of other environmental KPIs, such as water. As the KPIs become embedded within the Tier 1 suppliers, it has been agreed to expand the use of the KPIs beyond the Tier 1 suppliers to Nestlé UK s Tier 2 and 3 suppliers; and the suppliers suppliers. TIPS FOR SUCCESS To develop successful workable waste the following steps are recommended: Buy-in from CSR, packaging, procurement and other teams. A business case to encourage suppliers to get involved the benefits of taking part. Engagement with suppliers from the outset to guide the development of the KPIs and the implementation. Develop KPIs which are specific to your different suppliers e.g. ingredients versus packaging. Ensure the KPIs developed recognise that suppliers are at different levels of advancement for implementing waste minimisation, and that is not onerous. Guidance and tools To help drive out waste in the food and drink manufacturing and retail sectors, further guidance, tools and information can be found on WRAP s website, here. Reductions in waste through supplier networks of the type pioneered by Nestle will be a key part of Courtauld 2025 which is being developed by WRAP as the next phase of the Courtauld Commitment. next steps page 4

5 APPENDIX 1: LIST OF SUPPLIERS WHO PARTICIPATED First Milk Limited Cargill PLC RPC ADM Multipackaging Solutions DS Smith Massmould Limited Mayr-Melnhof Packaging UK Limited Graphic Packaging International Tate & Lyle Europe Camgrain Stores (Openfield Agriculture) Charles Jackson & Company Limited Kerry Roquette UK Limited Interflex page 5

6 APPENDIX 2: INGREDIENTS SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS LEVEL 1: FOUNDATION Ambition: All Tier 1 suppliers by December 2016 Activity Evidence Data source, calculation method or documentation 1. A supplier must have a waste policy Upload waste policy to supplier 2. A supplier must have a policy to divert waste from landfill 3. Engage in and use the supplier 4. Duty of Care requirements for handling waste (Environmental Protection Act 1990) are fully met 5. A supplier must have a waste management plan/procedure in place Upload waste diversion from landfill policy to supplier Company logo on the Evidence of use of the Upload evidence requirements are being met e.g. certificate/licence Upload waste management plan/procedure to supplier 6. Quantify total annual waste arisings Tonnes, by type e.g. food, packaging etc (as per WRAP CC3/C2025 categories) If a waste policy needs to be created, download the template from the supplier If a waste diversion policy needs to be created, download the template from the supplier Evidence of taking part in discussions, sharing and uploading information Link to Act on List of requirements and Code of Practice which describes the requirements in full on If a waste management plan/procedure needs to be created, download the template from the supplier Download form from Guidance and notes available from WRAP/on page 6

7 APPENDIX 2: INGREDIENTS SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS LEVEL 2: MANAGEMENT Ambition: All Tier 1 suppliers by December 2018 Activity Evidence Data source, calculation method or documentation 1. A % waste prevention target and date has been set Upload waste prevention target and date set Upload a minimum of 1 to 2 case studies of best practice you have achieved to illustrate meeting of this target 2. Zero waste to landfill Audit certificate to show zero waste to landfill has been achieved 3. A supplier must have a waste Upload waste management structure to management structure/system in place supplier 4. All waste arisings are fully segregated on site 5. Consider actively diverting surplus food to charity and/or animal feed 6. There is pro-active engagement with employees on waste prevention % total waste arisings, split by material/waste type and final destination of segregated waste per material/waste type e.g. % paper/board sent for recycling Total waste diverted (tonnes), by destination Explanation if not able to divert food to charity and/or animal feed Upload evidence of staff engagement activities to the supplier e.g. training material, posters etc Number of staff trained/engagement per activity A best practice template is available on the to capture the case study Link to suggested auditor on Definition on If a waste management structure needs to be created, download the template and guidance from the supplier Data submitted to WRAP by Nestle for CC3/C2025 Examples of best practice provided on Links to charities provided on e.g. Fareshare Link on supplier to WRAP and other sources for case studies and training materials/programmes page 7

8 APPENDIX 2: INGREDIENTS SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS LEVEL 3: LEADERSHIP Ambition: All Tier 1 suppliers by December 2020 Activity Evidence Data source, calculation method or documentation Mandatory KPIs 1. A % waste prevention target (decoupled from production) and date has been set 2. Waste prevention is actively cascaded to own suppliers Optional KPIs 3. Lean or other methods are being pro-actively used to prevent waste Upload waste prevention target and date set to supplier Upload a minimum of 1 to 2 case studies of best practice you have achieved to illustrate meeting of this target Tonnes of waste saved/reduced % of a suppliers Tier 1 suppliers engaged to prevent waste Upload a minimum of 1 to 2 case studies illustrating what you have achieved with one/more of your suppliers to illustrate meeting of this KPI Upload lean management objectives Upload a minimum of 1 to 2 case studies to illustrate the adoption of lean management or other methods Tonnes of waste saved/reduced through lean management activities Supplier to set a target based on current best practice. This is to be identified in dialogue with other suppliers, WRAP and Nestle via the supplier A best practice template is available on the to capture the case study Data submitted to WRAP by Nestle for CC3/C2025 A case study template is available on the A definition of lean management and other suitable methods provided by WRAP on the supplier Link to WRAP and other examples of lean management and other suitable methods best practice on the supplier A case study template is available on the Data submitted to WRAP by Nestle for CC3/C2025 page 8

9 APPENDIX 2: INGREDIENTS SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS 4. Waste prevention is integrated into NPD and redesign es and buying specifications 5. There is pro-active engagement with employees on waste prevention (it has become business as usual) Tonnes of waste prevented Upload a minimum of 1 to 2 case studies to illustrate the adoption of waste prevention decisions in NPD or redesign activities Documentary evidence of buying specifications related to waste prevention Tonnes of waste saved through integrating waste prevention into NPD and buying specifications Upload evidence of staff engagement activities to the supplier e.g. training material, posters etc Upload evidence that waste prevention has become everyday practice e.g. quotes or examples of staff implementing waste prevention in their everyday activities/roles Number of staff trained/engagement per activity A case study template is available on the Link to WRAP and other examples of design for waste prevention best practice on the supplier Data submitted to WRAP by Nestle for CC3/C2025 Link on supplier to WRAP and other sources for case studies and training materials/programmes page 9

10 APPENDIX 3: PACKAGING SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS LEVEL 1: FOUNDATION Ambition: All Tier 1 suppliers by December 2016 Activity Evidence Data source, calculation method or documentation 1. A supplier must have a waste policy Upload waste policy to supplier 2. A supplier must have a policy to divert waste from landfill Upload waste diversion from landfill policy to supplier If a waste policy needs to be created, download the template from the supplier If a waste diversion policy needs to be created, download the template from the supplier 3. Engage in and use the supplier Company logo on the Evidence of taking part in discussions, Evidence of use of the sharing and uploading information 4. Duty of Care requirements for Upload evidence requirements are Link to Act on handling waste (Environmental Protection Act 1990) are fully met being met e.g. certificate/licence List of requirements and Code of Practice which describes the requirements in full on 5. Must submit PRNs annually Upload evidence PRN submission Link to Environmental Agency website for 6. A supplier must have a waste management plan/procedure in place Upload waste management plan/procedure to supplier 7. Quantify total annual waste arisings Tonnes, by type e.g. packaging, food (e.g. from canteens) etc (as per WRAP CC3/C2025 categories) further information on PRN obligations If a waste management plan/procedure needs to be created, download the template from the supplier Download form from Guidance and notes available from WRAP/on page 10

11 APPENDIX 3: PACKAGING SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS LEVEL 2: MANAGEMENT Ambition: All Tier 1 suppliers by December 2018 Activity Evidence Data source, calculation method or documentation 1. A % waste prevention target and date has been set Upload waste prevention target and date set Upload a minimum of 1 to 2 case studies of best practice you have achieved to illustrate meeting of this target 2. Zero waste to landfill Audit certificate to show zero waste to landfill has been achieved 3. Design for reduced Nestle packaging Evidence of packaging (NPD/redesign) to impact (primary, secondary and tertiary) (where feasible/appropriate): o Increase recycled content o Reduce weight o Improve recyclability Tonnes of packaging material type saved 4. A supplier must have a waste Upload waste management structure to management structure/system in place supplier 5. All packaging waste arisings are fully segregated on site 6. There is pro-active engagement with employees on waste prevention % total packaging waste arisings, split by material type and final destination of segregated waste per material/waste type e.g. % paper/board sent for recycling Upload evidence of staff engagement activities to the supplier e.g. training material, posters etc Number of staff trained/engagement per activity A best practice template is available on the to capture the case study Link to suggested auditor on Definition on Data submitted to WRAP by Nestle for CC3/C2025 Link on supplier to WRAP and other sources for guidance of reducing the environmental impact of packaging If a waste management structure needs to be created, download the template and guidance from the supplier Data submitted to WRAP by Nestle for CC3/C2025 Link on supplier to WRAP and other sources for case studies and training materials/programmes page 11

12 APPENDIX 3: PACKAGING SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS LEVEL 3: LEADERSHIP Ambition: All Tier 1 suppliers by December 2020 Activity Evidence Data source, calculation method or documentation Mandatory KPIs 1. A % waste prevention target (decoupled from production) and date has been set 2. Waste prevention is actively cascaded to own suppliers Optional KPIs 3. Lean or other methods are being proactively used to prevent waste Upload waste prevention target and date set to supplier Upload a minimum of 1 to 2 case studies of best practice you have achieved to illustrate meeting of this target Tonnes of waste saved/reduced % of a suppliers Tier 1 suppliers engaged to prevent waste Upload a minimum of 1 to 2 case studies illustrating what you have achieved with one/more of your suppliers to illustrate meeting of this KPI Upload lean management objectives Upload a minimum of 1 to 2 case studies to illustrate the adoption of lean management or other methods Tonnes of waste saved/reduced through lean management activities Supplier to set a target based on current best practice. This is to be identified in dialogue with other suppliers, WRAP and Nestle via the supplier A best practice template is available on the to capture the case study Data submitted to WRAP by Nestle for CC3/C2025 A case study template is available on the A definition of lean management and other suitable methods provided by WRAP on the supplier Link to WRAP and other examples of lean management and other suitable methods best practice on the supplier A case study template is available on the Data submitted to WRAP by Nestle for CC3/C2025 page 12

13 APPENDIX 3: PACKAGING SUPPLIER WASTE MINIMISATION KEY PERFORMANCE INDICATORS 4. Waste prevention is integrated into NPD and redesign es and buying Evidence of packaging (NPD/redesign) to (where feasible/appropriate): specifications o Increase recycled content o Reduce weight o Improve recyclability Tonnes of waste saved through integrating waste prevention into NPD and buying specifications Documentary evidence of buying specifications related to waste prevention Upload a minimum of 1 to 2 case studies to illustrate the adoption of waste prevention decisions in NPD or redesign activities 5. Reduce post-production waste Tonnes of waste saved/reduced through post-production waste reduction activities Upload a minimum of 1 to 2 case studies to illustrate the adoption of postproduction waste activities and collaboration with Nestle 6. There is pro-active engagement with Upload evidence of staff engagement employees on waste prevention (it has activities to the supplier e.g. become business as usual) training material, posters etc Upload evidence that waste prevention has become everyday practice e.g. quotes or examples of staff implementing waste prevention in their everyday activities/roles Number of staff trained/engagement per activity A case study template is available on the Link to WRAP and other examples of design for waste prevention best practice on the supplier Data submitted to WRAP by Nestle for CC3/C2025 Collaborate with Nestle on how to reduce postproduction waste e.g. ordering schedules and thresholds A case study template is available on the Link on supplier to WRAP and other sources for case studies and training materials/programmes page 13

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