Annual report and financial statements 2008

Plan A

Plan A is our five-year ‘eco plan’ to address some of the key social and environmental challenges facing M&S. We pledged to meet 100 separate Plan A commitments within five years, and so far we have made progress on 94 of the 100 commitments.

By 2012 M&S will:

  • become carbon neutral with minimal offsetting;
  • send no waste to landfill from our operations;
  • extend sustainable sourcing;
  • set new standards in ethical trading; and
  • help customers and employees live a healthier lifestyle.

We’re committed to Plan A, because it’s the right thing to do. There’s also a powerful business case. Plan A not only gives us distinction in a crowded marketplace, but challenges us to increase efficiencies, and continually seek new and better ways of doing business, so that we can achieve the ambitious targets we have set ourselves.

Climate change

Despite opening more than 100 new stores in 2007/08, we cut our total CO2 emissions from our stores, offices and warehouses by nearly 50,000 tonnes. We achieved this 9% decrease on last year by switching an additional 21% of our electricity to renewable sources. We also improved our energy efficiency by 4%, and started sourcing electricity from farm-based wind turbines and an anaerobic digestion facility which generates power from food waste.

Because around 60% of our carbon footprint is generated by our suppliers, and a further 30% by our customers, we’ve been looking closely at how we can encourage our suppliers to reduce their CO2 emissions. For example, we encouraged the development of low carbon supplier factories (see story to right).

Waste

Right across our business, we’ve been finding new ways to ensure that by 2012 we send zero waste to landfill from our own operations. We’ve seen a 6% reduction in the amount of waste sent to landfill, as a result of improving the recycling of our construction waste, and collecting 122 million clothing hangers to reuse and recycle – over double the amount collected last year.

An M&S employee promoting the coat hanger amnesty

In January 2008, we launched the M&S and Oxfam Clothes Exchange – calling on customers to dig deep into their wardrobes to help fight poverty. Customers taking M&S items to an Oxfam store will help reduce the 1 million tonnes of clothing going to landfill each year, and in doing so will receive a £5 (€7) M&S discount voucher to spend on purchases of £35 (€50) or more.

One of the biggest challenges we face is to reduce our packaging, but without making our products susceptible to damage, or in the case of food, reducing their freshness. In 2007/08 we reduced the weight of packaging around each Easter egg by nearly 20%. At the same time, we’ve increased the amount of our food packaging that is recyclable to 70%.

Sustainable raw materials

During the year we converted all our toilet rolls, kitchen rolls and tissues to either Forestry Stewardship Council (FSC) certified or recycled paper. We also used FSC materials for more than 50% of our range of Christmas greeting cards (over 30 million in total) as well as our publications for customers, including the ‘Your M&S’ magazine. In total 62% of current wood materials used in M&S products are: FSC certified, certified by another independent organisation, or recycled (excluding fabrics).

Fair partner

We use around one third of the world’s Fairtrade cotton. We are working with local communities and organisations around the world, such as the Fairtrade Foundation, to increase the availability of this and other Fairtrade commodity crops such as sugar and tea. Additionally we are extending our Fairtrade ranges of jams.

The Fairtrade premium improves the standard of living in the local communities funding the building of schools, healthcare clinics and transport links.

Health

Asian bites

One of our most significant achievements for the year is our commitment that all food produced after 1 April 2008 is now entirely free of artificial flavours and colouring. Originally, we planned to only do this with our children’s food, but having completed this work by September 2007, we decided to extend it to all foods. We’ve also greatly increased range of Eat Well healthier options, as well as our excellent progress in salt reduction.

Plan A: next steps

We’ve achieved a great deal, and learned even more during our first full year as a Plan A business. But we know that there’s a lot to do if we are to achieve our five-year targets.

Plan A isn’t perfect, and we revisited our ethical trading commitments to make them stronger. We will continue to review our progress and where we need to, change our commitments to meet emerging issues.

In 2008/09 we will develop better, more robust systems for gathering the data we need to evaluate and improve our Plan A performance. We’ll also be working harder than ever to develop partnerships that communicate our messages or help us to find innovative solutions.

In-store panel promoting ‘Wash at 30C’ campaign

Wash at 30

As part of the Climate Group’s ‘Together’ campaign, we’re encouraging our customers to save energy by washing their laundry at 30ºC. By introducing ‘Think Climate – Wash at 30’ labels in 70% of our clothes and on our washing powder, we’ve seen the number of washes now done at 30ºC increase by 23% to 31% since April 2007. That’s a total reduction of 25,000 tonnes in CO2 emissions.

Per una lingerie

Green from top to bottom

We worked in collaboration with two suppliers – MAS Holdings and Brandix – to launch two eco clothing factories, which will use 40% less energy and half as much water as typical supplier factories. From July, customers can buy lingerie made from these factories, under our Autograph and per una labels. We hope to open a similar plant later this year in Wales.

A Rwanda coffee worker

Fancy a cuppa?

Already, 100% of the tea and coffee we sell is Fairtrade; and we’re pleased to have recently launched a new range of single origin Fairtrade coffees from Rwanda, as part of Fairtrade Fortnight.


Award-winning work

1 We were awarded the World Environment Center’s (WEC) 24th Annual Gold Medal for International Corporate Achievement in Sustainable Development, for linking sustainability with our supply chain, operations and customers.
2 We were named joint leaders in the Marine Conservation Society’s supermarket league table on responsible fish sourcing.
3 We won the RSPCA ‘Good Business’ award for animal welfare in fashion for the third consecutive year.
4 We were named Compassionate Supermarket of the Year for 2007 – not just because all of our eggs are free range, but because we only sell UK reared veal which meets high animal welfare standards.

For more detailed information, please visit our Plan A website at marksandspencer.com/plana or download our 2007/08 How We Do Business Report.

Banish the bag

The carrier bag initiative has been a big hit with our customers who want to do their bit to make a difference. We can’t wait to start working with Groundwork in Leeds so we can begin to see changes here in the local area.

Kate Edwards, Plan A Champion for Leeds store

Kate joined M&S as customer assistant in 2003 at the Blackburn store before moving to the Leeds store in 2004. As a Plan A Champion, on top of her everyday job as store operations manager, it’s her role to motivate some 350 staff to ‘think green’. She’s pictured with the M&S cotton shoppers.

One of our highest profile projects in 2007/08 was undoubtedly our decision to introduce a food carrier bag charge of 5p in all of our UK stores, with profits funding local environmental projects run by our partner Groundwork UK.

Initial trials in more than 50 M&S stores in Northern Ireland and the South West, showed around a 70% drop in plastic carrier bag usage, and raised over £80,000 to create and improve green spaces in local neighbourhoods. If M&S customers continue at this rate, we’ll save over 250 million bags from landfill every year.