M&S greenhouse emissions and climate change performance 2013/14
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M&S greenhouse emissions and climate change
performance 2013/14
M&S climate strategy
Our strategy, as reflected in our current ‘Plan A 2020’ commitments is to improve our own efficiency by 50% by
2020 within an overall position of carbon neutrality. We are the only major retailer with carbon neutral global
operations.
We recognise that the majority of our carbon footprint is outside of our own operations and therefore our own
control. To reduce these emissions we work closely with our suppliers as well as in wider collaborative initiatives.
We also engage our customers in a wide range of activities which directly or indirectly reduce greenhouse gas
(GHG) emissions. This includes a programme of activities to reduce the carbon intensity of M&S products
through the adoption of ‘Plan A qualities’.
Costs and regulation
Marks & Spencer is classified by regulation as a large non-intensive user of carbon. Energy currently represents a
cost equivalent to around 1% of turnover or 17% of pre tax profits. Our main areas of climate change regulation
are building regulations, the Climate Change Levy (a carbon tax payable on non-renewable energy contracts), the
Carbon Reduction Commitment Energy Efficiency Scheme and from the end of 2015, the Energy Savings
Opportunity Scheme (ESOS). Our use of refrigeration gases is also regulated under the EU F-Gas Regulations.
Voluntary Collaborations
Marks & Spencer participates in a wide range of voluntary collaborations addressing climate change. These
include pro-environmental lobbying through the UK Green Building Council and The Aldersgate Group and in
shared GHG reduction targets as part of the World Economic Forum, Consumer Goods Forum sustainability
programme, the global The Sustainability Consortium, EU Retail Environmental Actions Programme (REAP), the
British Retail Consortium’s ‘A Better Retailing Climate’, WRAP’s Product Sustainability Forum, Courtauld
Commitment, Sustainable Clothing Action Plan and the Institute of Grocery Distribution’s War on Waste.
Certifications
We became the first major retailer to gain certification to ISO50001 on energy management in 2013 and the first
retailer to hold Carbon Trust Standards on carbon, water and waste in 2014. Carbon neutrality is certified using
PAS2060.
M&S climate governance
A full description of our governance processes on climate change and other environmental and social issues can be
found in our 2014 Plan A Report (see pages 30-32).
Inspiration I In Touch I Integrity I InnovationM&S climate risks, opportunity & mitigations
Our approach to risk management and principle risks and uncertainties are detailed in our 2014 Annual Report
(pages 15-17). Climate is considered as a contributory factor to a number of these.
By definition, the more detailed climate based issues are currently considered as relatively low risk:
Issue Potential risk Potential opportunity Financial implications
Absence of strong Increased direct and in-direct costs None Unknown
international agreements
Taxation of carbon Increased direct and in-direct costs Reducing carbon intensity also A shadow price of £29/
reduces exposure to this risk. There is tonne could increase
Inconsistent application also a competitive opportunity direct costs by around
afforded by efficiency. £5m p.a.
Revisions to UK and EU Increased direct and in-direct costs None Unknown
energy and climate
regulations
Product labelling Increased direct and in-direct costs Developing experience and expertise Unknown
regulations and standards in product footprinting can mitigate
this risk. In turn, this can generate
opportunities in innovation.
Change in mean (average) Increased direct costs (due to higher Reducing carbon intensity also Unknown
temperature use of air-conditioning) reduces exposure to this risk.
Actions with suppliers to mitigate
Potential disruption and relocation of risks may provide longer-term
raw material supply chains competitive advantages.
Uncertainty of physical Increased likelihood of harm to Adaptation plans can mitigate risks Unknown (current
risks people, physical assets and disruption and provide competitive operational losses
to business continuity. opportunities. through extreme
weather events are low).
Reputation M&S performance falls below the Our Plan A commitments are Unknown
expectations of customers and designed to mitigate risks and realise
opinion formers opportunities.
Changing consumer Loss of turnover and profit There is currently little evidence of Unknown
behaviour impact in our core Food and Clothing
sectors.
Increasing humanitarian Requests or requirements for Our Global Community Programme Unknown
demands financial support for affected parts of addresses these impacts and provides
our supply chains. longer-term competitive advantages.
M&S positions on public policy
M&S is an advocate of effective, proportionate and fair regulation on climate change issues. We supported the
need for mandatory GHG reporting in the UK and for ambitious legally binding emissions reduction and energy
efficient targets in the UK, EU and globally. Individual M&S submissions can be found at:
http://corporate.marksandspencer.com/plan-a/policies-and-consultations/government-consultations
Inspiration I In Touch I Integrity I InnovationM&S targets since 2007
Full details can be found in our annual Plan A Reports.
Scope 1 and 2
Status
Become carbon neutral in all UK and RoI operations (reductions+ offsetting) by 2012. Achieved
Extend carbon neutrality to all M&S operations worldwide by 2014. Achieved
Improve energy efficiency in the UK and RoI by 25% by 2012. Achieved
Improve energy efficiency in the UK and RoI by 35% by 2015. On plan
Improve energy efficiency in the UK and RoI by 50% by 2020. On plan
Improve energy efficiency in International operations by 20% by 2020. On plan
Improve fuel efficiency in the UK and RoI by 20% by 2012. Achieved
Improve fuel efficiency in the UK and RoI by 35% by 2015. On plan
Introduce 50% bi0-diesel by 2012. Cancelled
Conduct trials of a range of alternative vehicle fuels and technologies Achieved
Conduct trials of nitrogen (low GWP) chilled trailers by 2015. On plan
Introduce a ‘green’ company car policy by 2012. Achieved
Introduce a ‘green’ travel policy by 2012. Achieved
Introduce enhanced video-conferencing facilities by 2011. Achieved
Reduce business flights by 20% by 2014. Achieved
Procure 100% renewable electricity by 2012. Achieved
Continue to procure 100% renewable electricity up to 2020. On plan
Procure 50% of electricity from small-scale generation by 2020. On plan
Procure 50% of gas from biomethane by 2020. On plan
Reduce refrigeration gas emissions by 50% by 2012 Achieved
Reduce refrigeration gas emissions by 80% by 2020 On plan
Use CO2 as the main refrigerant in all new installations form 2010. On plan
Replace all HFC refrigeration gases by 2030. Achieved
Trial refrigeration doors by 2015. On plan
Send no waste to landfill and optimise use of Anaerobic Digestion to generate energy by 2012. Achieved
Open a series of ‘green’ low carbon stores by 2012. Achieved
Extend more sustainable (including low carbon) technologies to at least 25 stores after trialling (2020) On plan
Evaluate environmental leasehold clauses (up to 2020) On plan
Conduct an assessment of likely climate change impacts and adaptation on our stores by 2011. Achieved
Introduce whole life costing for building evaluations by 2011. Achieved
Introduce a range of environmental assessments for all large construction projects by 2015. On plan
Introduce Carbon Managers for all major construction projects by 2010. Achieved
Reduce embodied carbon in construction by 2020. On plan
Inspiration I In Touch I Integrity I InnovationScope 3 supply chain
Status
Launching a Supplier Exchange best practice programme (including low-carbon) by 2008 Achieved
Work with the Carbon Trust to calculate the full carbon footprint of our food business by 2008. Achieved
Support the development of ‘green’ (low carbon) supplier factories by 2012. Achieved
Develop ranges of low carbon products by 2012. Achieved
Reduce packaging (other than glass) by 25% by 2012. Achieved
Move to more environmentally efficient forms of food packaging by 2015. On plan
25% sustainable cotton by 2015. Achieved
50% sustainable cotton by 20120. Achieved
30% of M&S food (75% by 2020) to be sourced from ‘silver’ Sustainable Food Factory programme. On plan
Top 100 clothing suppliers to have made top 3 energy efficiency improvements by 2015. On plan
Engage farmers and growers in our M&S Farming for the Future programme (including low-carbon) by 2012. Achieved
Support the development of three Eco-model Dyehouses by 2012. Achieved
Conduct an assessment of likely climate change impacts and adaptation on our supply chains by 2011. Achieved
Reduce transit packaging by 25% by 2015. On plan
Reduce home delivery packaging by 20% by 2015. On plan
Launch Global Community Programme in 2015 to help address a range of social impacts including climate On plan
Scope 3 customers
Status
Help our customers to re-use or recycle 20mlioon garments a year by 2020 (known as Shwopping). On plan
Introduce ‘air freight’ labelling on M&S food by 2008. Achieved
Launch a carbon footprint campaign with WWF and the National Federation of Women’s Institutes by 2012. Achieved
Help launch the ‘Together’ consumer engagement campaign with The Climate Group by 2008. Achieved
Introduce a 5p charge on Food carrier bags by 2010. Achieved
All products to have a Plan A quality (including low-carbon) by 2020 (50% by 2015). On plan
90% of electrical appliances to meet credible standards of energy efficiency. Cancelled
Engage 1m customers in Plan A activities (including low-carbon) online by 2015 ( 3m by 2020) On plan
Scope 3 employees
Status
Provide all eligible employees with a free energy monitor in 2010. Achieved
Inspiration I In Touch I Integrity I InnovationPerformance 2013/14
Scope 1 and 2 Greenhouse Gas Emissions
Emissions are reported annually in our Plan A Report and Annual Report in June each year covering the previous
financial year running April-March. These are calculated in accordance with the WRI/ WBCSD GHG Corporate
Reporting and Accounting Standard (revised) using Defra/ Decc carbon conversion factors and Bitzer for
additional refrigeration gases. Data includes all areas within scope where we have operational control and is
drawn from our annual Plan A Report which is independently assured to a ‘limited’ level using ISAE3000 and
AA1000AS.
For our efficiency Index we use ‘per area of sales floor’ which reflects the Index used by our main trade
association the British Retail Consortium and is also accepted by the Carbon Trust. Whilst indexes showing per
£m have some advocates, we’ve found that they are too readily influenced by inflation/ deflation and changes of
product mix. Per ‘area of sales floor’ has proven to be a robust measurement of progress and is the metric we
use internally.
From 2013/14 we included M&S operated activities and joint-ventures in all other counties, a further nineteen
countries in total. Whilst we operate over 2 million sq ft of footage in these countries which is just under 13% of
our global footage, emissions account for less than 6% of our total. This is because we only have operational
control over 70% of the footage, we don’t sell chilled food in these stores and many carbon intensive activities
such as heating and air-conditioning are supplied as services. It’s also interesting to compare the affect that
different national emission factors have on GHG calculations. We could run eight stores in France for one in the
UK based on GHG emissions due to the much lower carbon intensity of electricity over the channel.
Inspiration I In Touch I Integrity I InnovationUK and Republic of Ireland (matching the scope of our Plan A commitments)
000 tonnes CO2e 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Store & office gas 39 39 44 43 44 33 43 38
heating
Store & office fridge & 129 137 128 106 100 66 51 41
air con
Warehouse gas heating 9 7 8 8 8 6 7 7
Warehouse fridge & air 6 5 3 2 3 4 3 3
con
Delivery transport fuel 62 66 61 63 63 60 76* 78*
(Direct) Scope 1 245 254 244 221 218 169 180 168
Store & office electricity 334 339 343 322 310 298 286 283
Warehouse electricity 33 33 31 30 30 29 30 30
(In-direct) Scope 2 367 372 374 352 340 327 316 313
Total Scopes 1& 2 612 626 618 573 558 469 496 481
Index /1000 sq ft of sales floor
45 43 41 37 35 31 30 29
Electricity T&D 31 32 32 30 29 28 30 27
Fuel use T&D (from 2011) 1 1 1 1
Business travel 15 16 18 20 24 20 23 22
Waste 40 39 40 27 4 2 2 2
(Other) Scope 3 86 87 90 77 58 51 56 52
Total Scopes 1, 2 &3 698 713 708 650 616 547 553 533
(gross/location)
Index /1000 sq ft of sales floor
51 50 47 42 39 34 33 32
Credits for renewable 302
energy
Carbon offsets 126 553 231
Net/ marketplace emissions 698 713 708 650 616 421 0 0
*Includes additional transport activities previously carried-out by suppliers.
Inspiration I In Touch I Integrity I InnovationOther international locations (19 countries in total)
000 tonnes CO2e 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Store & office gas
heating
Store & office fridge & 1
air con
Warehouse gas heating
Warehouse fridge & air
con
Delivery transport fuel
(Direct) Scope 1 1
Store & office electricity 26
Warehouse electricity
(In-direct) Scope 2 26
Total Scopes 1& 2 27
Index /1000 sq ft of sales floor
11
Electricity T&D 3
Fuel use T&D (from 2011)
Business travel 3
Waste
(Other) Scope 3 6
Total Scopes 1, 2 &3 33
(gross/location)
Index /1000 sq ft of sales floor
14
Credits for renewable
energy
Carbon offsets 33
Net/ marketplace emissions 0
Inspiration I In Touch I Integrity I InnovationM&S global operations (21 countries in total)
000 tonnes CO2e 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Store & office gas 38
heating
Store & office fridge & 42
air con
Warehouse gas heating 7
Warehouse fridge & air 3
con
Delivery transport fuel 78
(Direct) Scope 1 169
Store & office electricity 309
Warehouse electricity 30
(In-direct) Scope 2 339
Total Scopes 1& 2 508
Index /1000 sq ft of sales floor
27
Electricity T&D 30
Fuel use T&D (from 2011) 2
Business travel 25
Waste 2
(Other) Scope 3 58
Total Scopes 1, 2 &3 566
(gross/location)
Index /1000 sq ft of sales floor
30
Credits for renewable 302
energy
Carbon offsets 264
Net/ marketplace emissions 0
M&S 2013/14 GHG emissions by county
000 tonnes CO2e Scope 1 Scope 2 Scope 1 & 2
UK & RoI 168 313 481
Bulgaria 0 0
China 0 3 3
Czech Republic 1 5 6
Croatia 0 0
Estonia 0 0
France 0 0
Greece 0 8 8
Hong Kong 0 4 4
Hungary 0 0
India 0 2 2
Latvia 0 0
Lithuania 0 0
Montenegro 0 0
Netherlands 0 0
Poland 0 1 1
Romania 0 1 1
Serbia 0 0
Slovakia 0 2 2
Slovak Republic 0 0
Slovenia 0 0
Inspiration I In Touch I Integrity I InnovationOther M&S scope 3 emissions
The additional scope 3 emissions below have been ‘modelled’ using a range of different techniques. As
such they provide a scale and identification of ‘hotspots’ which we are now addressing. However, these
figures are not sufficiently accurate to monitor incremental improvements.
Source Activity Estimated GHG emissions
M&S Food products Supply chain 2.7m tCO2e
M&S Clothing products Supply chain 3m tCO2e
Upstream transportation Supply chain distribution 0.2m tCO2e
M&S Food products Customer use 0.1m tCO2e
M&S Clothing products Customer use 1m tCO2e
Disposal of M&S products Customer disposal of used products, waste 0.7m tCO2e
food or packaging
M&S franchise partners UK and overseas franchised stores 0.1m tCO2e
M&S procurement of high quality carbon offsets for 2013/14
The offsets below were purchased and retired for the purposes of voluntary offsetting.
Name of project Project type Verification standard Tonnes of CO2e
Acre Amazonian Rainforest Forests VCS (Voluntary Carbon Standard) 9,434
Conservation Project
Meru & Nanyuki Forests VCS (Voluntary Carbon Standard) 10,244
Wuhe Agriculture VCS (Voluntary Carbon Standard) 180
Rimba Raya Forests CCBS (developed by the Climate, Community 3,685
and Biodiversity Alliance, CCBA)
Makira Forests VCS (Voluntary Carbon Standard) 3,684
Songshan Wind VCS (Voluntary Carbon Standard) 62,055
Suthari Wind VCS (Voluntary Carbon Standard) 29,712
China Wind Bundle Wind VCS (Voluntary Carbon Standard) 25,339
India Wind Bundle Wind VCS (Voluntary Carbon Standard) 127,939
Inspiration I In Touch I Integrity I InnovationM&S renewable energy sourcing
UK and Republic of Ireland (matching the scope of our Plan A commitments)
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Total electricity in gWh 822 834 839 788 762 734 709 702
‘Green’ in gwh 23 190 264 316 412 696 684 687
% ‘green’ 2 23 31 40 54 95 97 97**
** remaining 3% is procured by third parties
M&S energy & fuel consumption
UK and Republic of Ireland (matching the scope of our Plan A commitments)
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Electricity in gWh 822 834 839 788 762 734 709 702
Gas in gWh 257 248 274 270 281 210 272 206
Total energy in gWh 1079 1082 1113 1058 1042 943 980 908
gWh/ m sq ft of salesfloor 79 75 74 68 66 58 59 54
Transport fuel diesel in m 23 25 24 24 24 23 29* 29*
litres
*Includes additional transport activities previously carried-out by suppliers.
Other international locations (19 countries in total)
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Electricity in gWh 42
Gas in gWh 0
Total energy in gWh 42
gWh/ m sq ft of salesfloor 19
Transport fuel diesel in litres
M&S global operations (21 countries in total)
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Electricity in gWh 744
Gas in gWh 206
Total energy in gWh 950
gWh/ m sq ft of salesfloor 50
Transport fuel diesel in litres 23 25 24 24 24 23 29* 29*
Inspiration I In Touch I Integrity I InnovationM&S energy efficiency
UK and Republic of Ireland (after weather adjustments for stores)
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Stores in kWh/ sq ft 67.9 65.3 61.4 54.8 52.0 49.1 45.9 45.3
Offices in kWh/ sq ft 49.4 57.0 61.1 56.6 52.5 48.1 46.4 39.6
GM w/hses in kWh/ sq ft 24.5 23.2 23.4 20.7 19 16.8 19.2 15.5
Food w/hses in kWh/ sq ft 33 32.2 24.8 22.9 23.7 20.9 21.2 21.1
All in kwh/sq ft 57.4 56.2 53 47.1 44.1 41.5 39.6 37.6
Other international locations (19 countries in total)
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Stores in kWh/ sq ft 27.9
GM w/hses in kWh/ sq ft
All in kwh/sq ft 27.9
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