Annual Report and Accounts 2016


John Lewis Partnership plc


47


Our environment


In a resource-constrained world with challenging and changing legislative landscapes, our aim is to develop the Partnership in the most efficient and considerate way. Over the course of 2015/16, our physical estate has grown. We have opened 15 new shops, a new dotcom fulfilment centre and a National Distribution Centre. We have also continued to adapt our distribution network as we respond to ever-changing customer needs.


Our carbon strategy


We are committed to increasing the energy efficiency of our buildings, continuing to purchase low carbon energy and finding more efficient ways to distribute our goods. We have developed a number of targets which focus on improving energy performance, refrigeration management and transport operations. Our overarching aim is to achieve a 65% reduction in carbon intensity (tonnes per £m sales) by 2020/21 against a 2010 baseline. This new carbon target has been revised taking into account a recent change to the Global Greenhouse Gas Protocol. So far we have achieved a 57.3%1


and over the past year, we have reduced our energy consumption (kwh per ft2 area) by over 5%1


.


In 2015 we updated our Responsible Development Framework for our buildings, to reflect emerging trends and further embed it within our design and construction processes. John Lewis Birmingham, for example, which opened in September, is designed to be our


Our carbon target explained


The change to the Global Greenhouse Gas Protocol means that companies must report their electricity in two ways, using two different emissions factors: firstly one that reflects the emissions from the type of electricity that the company has chosen to purchase (market-based methodology), and secondly the UK-grid average (location-based methodology). We decided to base our carbon target on the new market-based methodology. This is so our performance was not sensitive to yearly National Grid emissions intensity changes, which is outside of the Partnership’s direct control, and to ensure that renewable electricity procurement remains a critical component of our strategy.


Although the Partnership has purchased renewable electricity since 2011, in 2015 we moved to a new supplier that was able to provide certificates that proved compliance to the new carbon methodology. This enabled us to apply a zero carbon emissions factor to all sites within our contractual control.


1 Data extracted from www.johnlewispartnership.co.uk/csr which was included within KPMG LLP’s independent limited assurance scope see www.johnlewispartnership.co.uk/csr for their full opinion.


2 All prior year figures have been re-stated. See page 98 for explanation of restatement.


3 2015 data is reported for the period 21 December 2014 to 26 December 2015. 2014/15 data is prepared for the period of 26 January 2014 to 31 January 2015.


Global GHG emissions data For explanation of the methodology please see page 98


Scope 1 (tonnes CO2 e)


Combustion of fuel and operation of facilities, refrigeration (re-stated)2


Scope 2 (tonnes CO2 e)


Electricity purchased for own use Location-based Market-based


Scope 3 (tonnes CO2 e)


Water, business travel, waste to landfill and transmission and distribution losses from purchased electricity


Intensity measurement (tonnes CO2 Location-based Market-based


e per £m sales)


54.5 57.0


50.9 28.1


62,294 61,438


316,343 343,577


294,927 43,594


218,030 204,492 2014/153 20151,3


reduction against 2010 levels trading floor


most energy-efficient full-line department store, utilising LED lighting and low-carbon heating and cooling systems.


In 2015 we ran an extensive programme to reduce the CO2


e associated with our refrigerant


units. This included 38 containment projects of which 18 received lower Global Warming Potential (GWP) refrigerants. We also trialled a new low GWP refrigerant and this has shown positive results in operational performance and improved energy efficiency. We replaced HFC refrigeration systems with natural refrigerant solutions in four branches. Our leakage rates from Waitrose’s refrigeration and cooling units are down from 7.9% (unaudited) to 6.9%1


. 80.8%


We have invested significantly in our distribution network over the past year whilst striving to ensure that our commercial vehicle fleet is as efficient as possible.


Energy consumption (kwh per ft2 98.4 94.5 94.1 91.4 of trading floor area) 86.3 81.9


We are also aiming to build on our solutions for processing and reusing our own cardboard and plastic waste.


At Waitrose, we are developing first-to-market solutions for new, more sustainable packaging materials that can be shared with the industry – such as our recently introduced Duchy organic egg boxes, made up of a mixture of rye grass and paper.


Tonnes of waste generated and % diverted from landfill 74,752 77,457


60,911 67,164 92.1% 89.0% 96.1%


82,177 85,474 98.1%


96.5%


2010/11 2011/12


2012/13


2013/14


2014/15


20151,3


Our policy is that none of Waitrose’s food waste goes to landfill and our aim is for all food to be consumed, either by our customers, our Partners or the local community in which we trade. Our ambition is that only food not fit for consumption is sent to generate energy through anaerobic digestion.


2010/11 2011/12 2012/13 2013/14 Waste and packaging


We are pleased to have achieved our goal of diverting 98% of our operational waste from landfill by year-end 2015/16. Our aim is that this will increase to 100% by 2020. We have achieved this through improvements to our operations, such as retaining secondary packaging within distribution centres for recycling.


2014/15 20151,3 Our priorities


a Appraising and investing in the most appropriate technology to make our buildings as efficient as possible


a Encouraging Partners to play their part in driving down energy consumption and waste production


a Supporting innovative research that contributes to lowering resource use


It’s Your Performance


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