Sainsbury’s Energy Policy Essay Example
Sainsbury’s Energy Policy Essay Example

Sainsbury’s Energy Policy Essay Example

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  • Pages: 4 (997 words)
  • Published: November 24, 2017
  • Type: Case Study
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Sainsbury's, also referred to as J Sainsbury PLC, is a UK-based supermarket chain that has diversified investments in property and banking. As of March 2007, the company's estate was valued at approximately ?8.6 billion.

Sainsbury's, the largest grocer in the UK until 1995, lost its position to Tesco that year and was later pushed into third place by ASDA in 2003. However, since 2004 when Justin King, the CEO, launched a recovery programme, the company's fortunes have improved. Sainsbury's has focused on enhancing and expanding its product ranges as well as fulfilling its environmental responsibilities.

As of 2006, approximately 153,000 individuals were employed by Sainsbury's. In terms of energy performance during the 2006/2007 period, Sainsbury's achieved a saving of 3.5% in energy efficiency compared to the previous year. The total CO2 emissions for that period amounted to 658,166 tonnes CO2e

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; however, this number reduced to 64,500 tonnes CO2e with the purchase of green electricity. It is important to note that Sainsbury's daily electricity consumption is significant.

The company's main objective is to decrease energy usage, resulting in lower operational costs and reduced CO2 emissions. They have a strong history of monitoring energy performance, including implementing an intranet energy monitoring system in all their stores in 1994. To measure improvements in energy efficiency, they track CO2 emissions per square meter of sales space (CO2/m2) as well as total emissions. Their current goal is to achieve a 25% reduction in CO2 emissions per square meter compared to the 2004/2005 baseline by 2012.

They have a longstanding partnership with the Carbon Trust and are currently participating in a five-site energy and waste study aimed at decreasing carbon emissions through improved energy an

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waste management practices. If implemented across the entire company, this initiative has the potential to reduce annual carbon emissions by 62,000 tonnes.

Sainsbury's is making progress with Climate Change Agreements with the Government. These agreements involve regular meetings with other retailers, facilitated by DEFRA, which have created useful forums for discussing and building on technical and operational improvements.

They are also working to engage and raise awareness among colleagues about energy costs and environmental impact. Stores that achieve the highest energy and cost savings are rewarded. They are involving colleagues at all levels through various media channels such as in-house magazines, the intranet, energy checklists, and reporting of energy wastage. The Tell Justin campaign has increased the number of store suggestions on energy, many of which have been implemented.

Since February 2007, Sainsbury's has been selling their own-brand washing detergent that is re-formulated to wash at a lower temperature and be more energy-efficient. They have invested over ? 15 million in energy efficiency projects across their existing estate since 2002, excluding additional spending during store refits and new store development.

Sainsbury's is currently integrating energy-efficient technologies, such as lighting, refrigeration, heating, and ventilation, into its operations. These technologies are selected based on their cost-effectiveness and potential benefits to achieve the greatest reduction in carbon emissions. The upcoming depot in Northampton, expected to be completed by September 2007, will exceed the efficiency of a regular depot. It will enhance air-flow tightness, increase natural light through improved day-lit lighting systems, and generate onsite energy. Furthermore, the depot will incorporate rainwater-harvesting facilities to reduce mains water consumption by 50%. Sainsbury's collaborates with RWE Npower as their energy partners to provide technical and

managerial support for their capital investments. In the past three decades, Sainsbury's has made significant investments in energy-saving technologies that are still evident in their current stores.

Over the past two decades, we have focused on recycling wasted heat from our refrigeration system to warm our stores. Currently, we are working on enhancing and upgrading this reclamation system while implementing around 30 different energy-saving projects. Additionally, we will continue to explore methods of generating more renewable energy. This investment builds upon our previous achievements in reducing carbon emissions by 20% between 1997/1998 and 2005, aligning with the goals set forth in the Energy efficiency section. J Sainsbury PLC provided us with the company's principles during the period from 2005-2007, outlining the measures taken to improve our energy consumption. In July 2005, we led a trial for a CO2 refrigeration system - making us the first retailer to do so - resulting in significantly reduced environmental impact compared to conventional systems.

We have achieved a 10% sourcing of our electricity from renewable sources and a carbon emission reduction of over 20% from our sites since 1997/8. This decrease in energy consumption has resulted in savings of 77,030 tonnes of carbon per year, equivalent to the energy usage of approximately 13,000 homes. Moreover, we have successfully reduced our road mileage by almost 5%. In recognition of our carbon management efforts, Sainsbury's was awarded the City of London 'Liveable City' Award in 2006.

In 2001, Sainsbury’s set a corporate goal to reduce carbon dioxide emissions by 10%, a target that was not only achieved, but also surpassed with a 20% reduction. Our efforts to improve transportation efficiencies resulted in a yearly

saving of 29,000 trips within the UK alone. Additionally, we have significantly increased our utilization of rail transport for goods, with 83% of wine sourced from Italian suppliers now being transported by rail, resulting in a remarkable reduction of approximately 543,000 road miles per year. Moreover, advancements in technology have allowed for year-round tomato cultivation in the UK. Our tomato supplier now utilizes waste steam and carbon dioxide from a local manufacturer in Teeside, effectively preventing these substances from being released into the atmosphere.

An additional environmental benefit is the reduction in the need to import foreign produce at a high food-mile cost. In 2007, Sainsbury's announced the largest conversion of its kind in the UK, converting a fifth of its online delivery fleet to green electric vehicles. By September 2008, 20% of online deliveries will be made using electric vans, saving 45 tonnes of CO2 emissions in the first year and serving 50,000 customers. Furthermore, Sainsbury's has introduced an energy-efficient washing detergent that can wash clothes just as effectively at a lower temperature of 30 degrees Celsius, instead of the normally required 40 degrees Celsius or higher.

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