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As the green agenda has become more competitive and focused, all the supermarkets have recognised that a big part of their carbon-dioxide emissions come from their supply chain — particularly in shipping goods to and from stores. Supply-chain emissions are thought to account for as much as 80% of a retailer’s carbon footprint.
Sainsbury’s now has a target to reduce its emissions per case of products by 15% by 2012. One of the initiatives is the introduction of an integrated transport management system, which calculates the most efficient timings and routes for deliveries, while minimising the number of empty vehicles on the road.
The group has also ruthlessly cut costs in all its stores. Its Reset programme has involved getting engineers to check every boiler, radiator, refrigerator and light in its stores to make sure they are working perfectly or at the optimum temperature. During the past two years the supermarket estimates the Reset initiative has cut its carbon-dioxide emissions by 53,000 tonnes a year.
The supermarkets are also responding to pressure from customers. Sainsbury’s responded to demand on green issues and stopped selling eggs from battery hens and introduced fish fingers in its own-label basics range which are cooked in certified sustainable palm oil. It found that by, boasting about the switch to palm oil on its packaging, sales of the fish fingers doubled.
David North, community and government director at Tesco, acknowledged the role customers are playing in pushing green initiatives. “The role of the consumer in terms of climate change is not properly understood. Every great change in society and the economy is achieved by the public. Therefore, as a consumer-facing business we can play a great role in achieving a green revolution.”
Tesco has continued to put green issues at the centre of its business strategy. It has an ambitious global target for every new store to have 50% less carbon-dioxide emissions than its existing shops. Like its rivals, it is focusing on ways to cut down on truck mileage in its supply chain, partly by increasing sales of local produce.
In-store, it has tried to make it easier for customers to be green by cutting the cost of low-energy lightbulbs.
North said: “When we reduced the price of energy-saving light bulbs it revealed a pent-up demand. Customers want to be green and are looking at businesses to set the example.
“We have to get back to being a low-carbon economy and it is in the best interests of Tesco to be green because we believe all successful businesses will be green.”
Julian Walker-Palin, head of corporate policy for sustainability and ethics at Asda, said that a desire to be green cuts across all geographies and customer income brackets. When Asda first tried to reduce carrier-bag usage by putting them under the checkout rather than on display, the initiative was taken up quickest at Asda stores with the lowest-income customers.
“People felt they could do their bit for the environment by not taking a carrier bag and it proved you do not have to be rich to be sustainable.”
Asda has pledged to send zero waste to landfill by 2010 and has created a special taskforce packed with outside experts who can advise the retailer on how to reduce packaging waste. Some experts believe that the green initiatives could even make the retailers some money.
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