The episode was originally going to focus on Sainsbury’s decision to include environmental metrics within their quarterly financial updates. However, in learning about their environmental program, we found many examples of sustainability leadership. Therefore, we’ll do a review of Sainsbury’s climate activities using the MIRO concept.

Measurement

Sainsbury measures and reports its total tons of CO2, including Green Purchase. It also reports total Green Purchase Electricity. They measure and report energy efficiency of their supermarkets kg CO2/m2. Through their measurement, they found that refrigeration accounts for 40% of their total supermarket energy consumption.

Innovation

By September 2008, 20% of their online deliveries will be made using electric vans. Despite a delay to this program they expect to have 70 electric vehicles for their online fleet, which will deliver approximately 60% of the online orders.

Reduction Goals

To reduce their CO2 emissions per square meter by 25% by 2012 against a 2005/06 baseline. Reduce the distance their trucks and suppliers travel by 5 million km by 2010. Reduce CO2 per case of product by 15% by 2012 against a 2005/06 baseline. Sainsbury’s has pledged to switch all its refrigerators to CO2 refrigeration technology in all stores by 2030 and has already earmarked 135 stores for conversion by 2014, which is expected to cut the company’s carbon footprint by about one third.

Operational efficiency

In 2008/09 Sainsbury’s energy efficiency program resulted in an absolute reduction in carbon of 10,786 tons of CO2. This has been achieved even with significant growth in sales and retail space. They have now achieved a reduction of over 9% in kg of CO2 per m2 of sales area against the 2005/06 baseline. Saving energy and CO2 means operational savings!

In addition to it’s climate commitment, below are a few highlights of Sainsbury activities.
According to the quarterly CR report, Sainsbury’s has been recognized by several organizations for its commitment to sustainability. As an example, the UK retailer was rated number 1 out of 59 global retailers in the World Wildlife Foundation Sustainable Palm Oil Buyers Scorecard. Sainsbury’s reports it was the first retailer to buy sustainable palm oil last year, and it is committed to only using sustainable palm oil in its own brand products by 2014.

The supermarket chain received an “A rating” in Consumer Focus’ “Green to the Core?” survey in November 2009, which assesses supermarkets’ performance on making green shopping easier.

Sainsbury’s is also recognized as the UK’s largest retailer of fairtrade goods and leading major retailer in the Marine Conservation Society’s retailer survey.

The retailer launched a new campaign “make the difference day — love your leftovers” on January 23rd, to provide customers with free plastic food containers, helping to make it easier for people to use leftover food.

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