Menzies Distribution Carbon Reduction. Overview Utilities Transport Waste Management

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1 Menzies Distribution Carbon Reduction Overview Utilities Transport Waste Management

2 KG/CO2 per tonne delivered 2001 PPA Supply chain work commenced 2006 David Morton Commenced the MDL journey 2007 Enviromenzies website launched % Reduction of Carbon Footprint 2006 vs Further 8% reduction target set 2012 vs Scottish Environmental Haulier Transport News Overview % 2% 0% MDL Footprint % 29% Energy Transport Business Travel Fork lift & Ref gases Other Carbon Trust Standard accreditation Reaccreditation nd Reaccreditation rd Reaccreditation TBA

3 Utilities Menzies Distribution is is committed to to reducing energy energy and and CO2 CO2 emissions emissions From 2007 to 2013 (last fully reported year): Total Energy Use has reduced by 18% Associated CO2 reduction is 15% Equivalent to 1,600 Tonnes of CO2 Introduction of Smart Meters Monitoring & Reporting

4 Smart Meter rollout commenced in 2007 and is now fully operational across all active sites. Utilities Bespoke reporting systems have been developed to provide individual site reports and overall management summaries. These help to identify issues quickly and improve energy management.

5 Utilities Development of Energy & Water Policy to encourage Senior Management commitment. A rolling five year plan is maintained that commits to reducing Energy Use by 5% per annum Other initiatives include: Introduction of Fast Action Doors at a cost in excess of 500k, operated correctly, these help to retain the heat within the warehouse spaces. Destratification fans within warehouse spaces working in conjunction with warm air heating systems. Installation of lighting presence detection sensors within warehouse spaces. Investment in LED lighting to reduce both usage and maintenance costs. Solar paneling..

6 Vehicle Telemetry / Driver behaviour System Measurements Idling Acceleration >95% Harsh braking Harsh cornering Green band driving Over Revving MPG Microlise telemetry fitted to 90% of fleet (remainder by 2015) Over 85% of drivers receiving a rating between A-C (range A- G) Idling reduced by over 600 hours per week Reduction of c. 1,000 tonnes of CO2 pa Green band driving 80% Over 1,000 drivers per week MPG improved by up to 9%

7 Transport Initiatives Route Optimisation Paragon route scheduling software Ongoing vehicle fleet review Suitability for operation Efficiency of engine Environmental impact Payload of vehicle Aerodynamics and drag reduction trials Aluminium load frame and bodies trial Electric vehicles in central London trials (panel vans) DCPC training to incorporate fuel efficient driving using Microlise

8 Waste Management A budget figure of 600k had been calculated for the disposal of Waste through Landfill in 2010, which was 81% of the divisional total. A partnership was forged with Biffa Waste Services to reduce landfill waste through their preferred method of Dry Mixed Recyclable (DMR), which enables a variety of waste products to be recycled through one container. Every tonne of waste recycled reduces disposal charges by approximately 68%. During the second quarter 2010, DMR was introduced to Menzies Distribution on a national basis and the waste recycling journey began..

9 Waste Managemen Since 2010 the partnership with Biffa has seen a substantial reduction in Menzies annual waste disposal costs, the net figures below also include combined landfill tonnage charge increases over the same period of 50% Totals Annual Spend 527, , , ,010 1,581,621 Annual Saving 72, ,940 87,243 6, ,990 Landfill tonnage charges 2010 ( 48.00), 2011 ( 56.00), 2012 ( 64.00, 2013 ( 72.00) Desk bin removal was introduced to our Edinburgh Park HQ building in This has recently been rolled out to all Menzies Distribution sites.

10 The Future We have recently achieved the 90% target set in Waste Management Reduce / Eliminate contamination in DMR loads. Conduct regular site audits to improve low performing sites. We continue to raise awareness and refresh processes. Menzies new goal is to achieve zero waste to landfill by early 2017.

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