2. Being bold Many food and drink companies have good individual environmental records FDF decided to be bold about making a real difference for the environment We decided to take a more structured approach towards tackling the challenges

3. Why change? Expert opinion on the consequences of climate change Support for the waste hierarchy Expert opinion on water stress Defra research showing that 87% of the external costs of food transport arise in the UK

4. Collective commitment FDF is focusing on areas where we can make the biggest difference Last October we launched our Five-fold Environmental Ambition No other food trade body had taken this collective approach

5. Our five-fold ambition The 1 st part of our Five-fold Ambition is: –to achieve a 20% absolute reduction in CO 2 emissions by 2010 compared to 1990 –to show leadership nationally and internationally by aspiring to a 30% reduction by 2020

6. Our five-fold ambition The 2 nd part of our Five-fold Ambition is: –to seek to send zero food and packaging waste to landfill from 2015

7. Our five-fold ambition The 3 rd part of our Five-fold Ambition is: –to make a significant contribution to WRAP’s work to achieve an absolute reduction in the level of packaging reaching households by 2010 compared to 2005 –to provide more advice to consumers on how best to recycle or otherwise recover used packaging

8. Our five-fold ambition The 4 th part of our Five-fold Ambition is: –to embed environmental standards in our transport practices to achieve fewer and friendlier food transport miles –to contribute to the FISS target for the food chain to reduce its external impacts by 20% by 2012 compared to 2002

9. Our five-fold ambition The 5 th part of our Five-fold Ambition is: –to achieve significant reductions in water use –to contribute to an industry-wide absolute target in the FISS to reduce water use by 20% by 2020 compared to 2007

10. Delivering FDF’s ambition In January 2008 we jointly launched the Federation House Commitment on water best practice with Envirowise, to achieve greater water efficiency Yesterday we launched our Checklist and Clause for Greener Food Transport to achieve fewer and friendlier food transport miles

11. Delivering FDF’s ambition We are also making good progress with our CO 2 reduction ambition The extent and pace of change is influenced by a number of drivers such as: –the policy framework –price –corporate responsibility

12. Understanding the climate change policy framework and its implications

13. Understanding the policy framework The policy framework works alongside other drivers such as price and customer and consumer expectations Take gas prices for example – they have risen steeply in recent months and will drive fresh changes in business behaviour

14. 90 80 70 60 50 40 30 20 10 Pence Per Therm UK Wholesale Gas Prices Wholesale gas Industry retail gas

15. The policy framework itself is extremely complex It operates at many levels, international, EU and member state Understanding the policy framework

16. Kyoto Post Kyoto Climate Change Policy Renewables Biofuels EE Action Plan UK Climate Change Programme Climate Change Bill Energy White Paper EU Emissions Trading Scheme End use Energy Efficiency Energy Performance of Buildings Directive CHP Cogen Energy Using Products F Gas Regs Ozone Depleting Substances Regs Integrated Pollution Prevention & Control Hazardous waste Landfill Animal By-products Climate Challenge Action CO2 EEC/CERT Renewable Heat Biomass Strategy Combined Heat & Power Strategy Renewables Obligation Road Transport Fuels Obligation EUETS/Transport 2004 Transport White Paper Carbon Reduction Commitment Climate Change Agreements Climate Change Levy Cabinet Office Food Strategy Farming and Food Link Food Industry Sustainability Strategy Sustainable Farming and Food Strategy Sustainable Consumption & Production PAS2050 Market Transformation Programme Enhanced Capital Allowances Carbon Trust/ Energy Savings Trust Defra SCP Research Diet & Health CAP Reform Planning Understanding the policy framework

17. The policy framework can be distilled down into a few key drivers Understanding the policy framework

18. 1990 Baseline GHG Reduction Policy201020202050 EUEU Climate Change 20%2°C EU International Agreement 30% Renewable Energy 20% Renewable - Transport 10% Energy Efficiency 20% EUETS - from 2005 21% UKUK Climate Change Programme20% Climate Change Bill 26-32%60-80% CCA (FDF) Relative Energy15% CCA - next phase -2017 CCC Carbon Reduction Commitment CCC FDF Members 20%30% Understanding the policy framework

19. Where the food and drink industry fits in

20. Where does food and drink fit in? The UK food chain is responsible for 17% of UK GHG emissions Of the UK food chain, the food and drink manufacturing industry is responsible for 1.8% of UK GHG emissions

21. 17% UK GHG Emissions Fertiliser/pesticide production 4% UK Food Chain Greenhouse Gas Emissions (2004) Source: Defra Agriculture 49% Manufacturing 11% Retail 8% Catering 5% UK Road Freight 6% Food Shopping 3% Household 15% Where does food and drink fit in?

22. Making a difference through leadership

23. Tate & Lyle’s new biomass boiler producing renewable energy at its Thames Cane Sugar Refinery from 2009, should deliver: -70% reduction in the site’s CO 2 emissions -120,000 tonnes less CO 2 emissions per year

24. Making a difference through leadership A key part of FDF’s Five-fold Ambition is: –to achieve a 20% absolute reduction in CO 2 emissions by 2010 compared to 1990 –to show leadership nationally and internationally by aspiring to a 30% reduction by 2020

25. Making a difference through leadership McCain Foods’ 3 new wind turbines, producing renewable energy at its Whittlesey plant are delivering: -60% of the site’s annual electricity needs -20,000 tonnes less CO 2 emissions per year

26. Barriers to progress and long term success

27. BY 11.0 MS2 10.7 MS5 9.3 EUETS Food & Drink Sector 4.3 3.9 Food &Drink Sector CCAs -20% -60% Gap Market Product demand/mix Import/export Demand Side ‘CCA/EUETS’ Energy Efficiency New/updated process equipment New technology Process design Supply Side CHP/Trigeneration On site renewable electricity Bio-energy/renewable heat Carbon Intensity Grid Electricity (Fuel mix, renewables, nuclear, CCS) Barriers to progress & long term success

28. What are the barriers to the UK food and drink industry adjusting to a low carbon economy and the implications for its long term success? Barriers to progress & long term success