Musgrave Energy & Natural Resources Management Policy. Working together to deliver sustainability

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1 Musgrave Energy & Natural Resources Management Policy Working together to deliver sustainability

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3 Musgrave Energy & Natural Resources Management Policy Working together to deliver sustainability

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5 BACKGROUND The scientific evidence provided by the Intergovernmental Panel on Climate Change (IPCC), suggests that climate change is linked largely to the emissions of greenhouse gases caused by human activity, from the burning of fossil fuels, and deforestation. In a similar vane the European Commission states: Energy consumption accounts for nearly 95% of man-made CO2 emissions and causes irreversible damage to our climate and environment as a whole. The Kyoto commitment of the European Community and its Member States are clear signals which need to be realised with tangible results While there remains uncertainty regarding the severity of impacts, we believe that it is appropriate to adopt the EU Precautionary Principle in our approach to climate protection by endeavouring to conserve energy and finite natural resources thereby reducing (direct and indirect) greenhouse gas emissions from all aspects of our business activities. This document should be read in conjunction with the Musgrave Group Environmental and Social Accountability Policy.

6 THE COMPANY The Musgrave Group is Ireland s largest independent wholesale and retail distribution company and comprises the following divisions: Musgrave Supervalu Centra Republic of Ireland, (MSVC RoI) Musgrave Supervalu Centra Northern Ireland, (MSVC NI) Musgrave Wholesale Services, (MWS) (RoI and NI) Musgrave Budgens Londis (MBL), (Great Britain). Musgrave divisions consume energy through the operation of: Retail Distribution Centres Wholesale Warehouses Wholesale Cash and Carry facilities Company-owned Retail Stores Office Buildings Vehicle fleets comprising trucks, vans and cars. The main sources of emissions in Musgrave Group businesses are: Thermal Energy (Direct emissions), which includes; distillate fuel (heating) oil natural gas vehicle fuel in the form of Diesel and Gasoline Electrical Energy (Indirect emissions). The company also employs Solar and Geothermal renewable energy as a means of reducing its emissions. Musgrave Group businesses also consume natural resources in the form of: Water Wood, indirectly, as the raw material for paper and packaging Oil, indirectly, as the raw material for plastics present in all types of packaging and as a feature of all modern electrical and electronic equipment Metals including heavy metals used in electrical and electronic equipment Other resources include those associated with building materials, glass etc.

7 POLICY PURPOSE SCOPE This policy has been developed in order to: Ensure that Musgrave consumes energy and natural resources wisely and improves energy and natural resource efficiency throughout its operations Emphasise energy and natural resource efficiency as a factor in the operations and design of Musgrave facilities Encourage continuous energy and natural resource conservation by employees in their work and personal activities Support further development of internal and external energy-efficient technologies Reduce business energy costs Maximise the benefits of capital investment Help Musgrave fulfil its obligations as a responsible organisation by reducing environmental emissions and conserving natural resources Ensure that Musgrave Group's energy and natural resource management activities are consistent with its commitment is Sustainable Development as defined in the Musgrave Group Environmental and Social Accountability Policy Articulate Musgrave Group s vision for energy and natural resource use. This policy covers all energy and natural resources management activities of the Musgrave Group and adopts the following definition of energy and natural resources management: Energy and natural resources management is the collective term for all the systematic practices to minimise and control both the quantity and cost of energy and natural resources used in conducting our business, while also improving environmental outcomes and the level of service.

8 POLICY AIMS In striving to meet best practice in energy and natural resources management within our sector Musgrave Group aims to: Minimise energy and natural resource wastage Optimise energy efficiency through passive means or through investment in suitable, clean, energy and natural resource efficient technology Reduce energy consumed per unit delivered and per unit of building area Use the most appropriate energy type(s) (eg. electricity, oil, gas, renewable), with due regard to both the environmental and cost benefits Reduce energy purchasing costs by buying energy at the most cost-effective price Reduce all environmental impacts arising from our energy and natural resource consumption as far as is practical, consistent with the operational needs of our activities. Modify or reschedule operations, where possible and practical, to make the best use of energy price structures Develop an energy and natural resources awareness culture among staff through communication and training Develop energy Monitoring and Targeting (M&T) systems to ensure energy use remains within predetermined limits Increase the proportion of renewable energy used compared to that derived from fossil fuels Reduce the environmental emissions associated with travel (including employee travel to work, business travel and distribution of goods) Focus on reducing life cycle energy costs when planning new projects Support national and EU energy efficiency policies.

9 POLICY OBJECTIVES Our objectives shall be to: Reduce our dependence on and consumption of finite fossil fuels and other natural resources Reduce our emissions of CO 2 and other Greenhouse gasses (GHG) Reduce the life cycle energy and natural resources costs of our operations. The development of this policy has been influenced by a number of additional key external drivers, including: The Kyoto Protocol European Climate Change Programme (ECCP) EU Energy Management Policy EU Directives on energy efficiency EU Directives on Greenhouse Gas Emissions reductions EU public awareness programmes Recommendations from Sustainable Energy Ireland (SEI) and the UK s Carbon Trust Competition in the Irish and UK electricity markets through de-regulation Business efficiency, including the reduction of operating costs.

10 CO-ORDINATING ENERGY AND NATURAL RESOURCE MANAGEMENT The means by which Musgrave shall implement this policy shall be through a co-ordinated programme, which will require each division to develop an Energy and Natural Resource Management Plan. Each Energy and Natural Resource Management Plan shall: Reflect the principles, aims and objectives outlined in this policy Develop annual targets and measures of performance Assign internal responsibility for their implementation of plans and the delivery of targets. Musgrave must balance its energy and natural resource management programmes with its mission to be a successful business, to protect the health and welfare of its employees and the public and to protect the environment. We shall also endeavour to be a positive influence on our retail partners in terms of energy and natural resource efficiency and shall seek to communicate innovation and best practice wherever possible. The Group Environmental Executive shall be responsible for overseeing the implementation of Energy and Natural Resource Management Policy and co-ordinating the energy management and planning activities throughout Musgrave.

11 POLICY STATEMENT 1. Musgrave recognises that energy and natural resources are essential for its operations. It also recognises that the production and use of energy and the consumption of natural resources create environmental impacts. Consequently, Musgrave recognises the need to manage its use of energy and natural resources wisely and commits itself to so doing. 2. Musgrave also recognises its need to keep in focus its position on Sustainable Development and, accordingly, will manage its consumption of energy and natural resources in a manner which improves its ability to fulfil regulatory, human health, environmental and business obligations. 3. Musgrave will demonstrate innovation and leadership in its management of energy and natural resources, in accordance with the principles of this policy and those of Sustainable Development (SD) and in line with the commitments contained in the Musgrave Group Environmental and Social Accountability Policy.

12 IMPLEMENTATION The requirements of the Musgrave Energy and Natural Resources Management Policy are that: This Policy shall be communicated and implemented throughout Musgrave Musgrave divisions shall set energy and natural resources management targets in line with best practice for its sector Musgrave divisions shall regularly monitor performance against all energy and natural resources management objectives Musgrave shall report on its energy management performance biennially in its Environmental and Social Accountability Report.

13 APPLICATION TO CONTRACTORS Contractors are required to demonstrate, where appropriate, the capability and intention to carry out their contractual responsibilities in a manner compatible with Musgrave's Energy and Natural Resource Management Policy and energy management objectives. REVIEW This policy will be reviewed at least annually and updated as required by the Musgrave Group Environmental Executive. REPORTING Musgrave will report its energy consumption quarterly and its progress in achieving energy objectives in its biennial Environmental and Social Accountability Report. REFERENCE Good Practice Guide 376 from The Carbon Trust: "A strategic approach to energy and environmental management.

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