Crispin Burridge

Marks & Spencer One of the UK’s leading retailers Over 21 million people visiting our stores each week. Clothing, home products and foods, sourced from around 2,000 suppliers globally. We employ over 75,000 people in the UK and abroad Over 600 UK stores, plus an expanding international business.

Thanks to Plan A we have: Made a real difference to the issues we tackle Built reputation Motivated our people Stimulated innovation Opened up new markets Mitigated risk Delivered financial return

Strong Business case £50m of sAvings this year alone Energy efficiency in stores and warehouses Fuel efficiency of delivery fleet Food waste sales to customers Landfill charge savings / recycling revenue Oxfam incremental footfall Hanger recycling and re-use M&S energy sales Packaging reductions

Change to be front cover of Commitments book

Worlds most sustAinable major retailer A business that is carbon positive, wastes nothing, restores the natural environment and improves peoples lives. Business Sustainability Plan Extended. Sustainable Business 2015-30 100 commitments. Strong business case emerges and lessons learnt. Plan A 2010-15 Single issues managed by team on edge of business. Plan A CSR 2000s Community Investment 1990s Philanthropy 1980s Time

A New Form of ‘Economic Obsolescence’ Value Sustainable Non-Sustainable Time

Sustainable Aspirations Ready for the bounce! Sustainable Aspirations Medium Investment Value Low Investment Sept ‘10 Time No Investment

When will the new technologies arrive? 80% People Process Product

Average 5% uplift – and falling “Sustainable buildings cost more” Average 5% uplift – and falling Average 30 – 40% more efficient

New Build vs Refurbishment

USE LESS STUFF + WASTE LESS STUFF = MAKE MORE MONEY

We do have material purchasing and sourcing standards that we track within our supply chain. Our Main Contractors and teir 1 equipment suppliers are all now COC certified, and we are helping this part of our chain engage and motivate their supply bases to get CoC certified. Our focus and attention to operational carbon continues to be one of our biggest challenges to help us achieve our 25% reduction in store, office and warehouse energy use per ft2 And 35% per ft2 reduction by 2015. Our attention to low impact materials has this year centred on our Developer shell specification. We undertook a collaborative piece of work with dcarbon8 to look at the embodied carbon of the materials in our shell specifications from cradle to grave. We are continuing this collaborative piece y looking at a zero carbon developer shell spec- which makes incremental steps starting with a 25% reduction on the 2007 (as a baseline) and then 50, 75, 100% reduction. It adopts the PAS 2060 definition obviously looking at buildings in this case. “If you are carbon neutral, that means that there is no increase in GHG emission to the atmosphere as a result of your product, service, business or action. Your carbon footprint is the total GHG caused by your product, service, building or action.”

We do have material purchasing and sourcing standards that we track within our supply chain. Our Main Contractors and teir 1 equipment suppliers are all now COC certified, and we are helping this part of our chain engage and motivate their supply bases to get CoC certified. Our focus and attention to operational carbon continues to be one of our biggest challenges to help us achieve our 25% reduction in store, office and warehouse energy use per ft2 And 35% per ft2 reduction by 2015. Our attention to low impact materials has this year centred on our Developer shell specification. We undertook a collaborative piece of work with dcarbon8 to look at the embodied carbon of the materials in our shell specifications from cradle to grave. We are continuing this collaborative piece y looking at a zero carbon developer shell spec- which makes incremental steps starting with a 25% reduction on the 2007 (as a baseline) and then 50, 75, 100% reduction. It adopts the PAS 2060 definition obviously looking at buildings in this case. “If you are carbon neutral, that means that there is no increase in GHG emission to the atmosphere as a result of your product, service, business or action. Your carbon footprint is the total GHG caused by your product, service, building or action.”

Energy Efficiency Operational load through the day Base load through the night ENERGY STORES IMPROVED BY 19% TO APPROX 55 kWhs per sq ft Five Energy Stores, rolling out initiatives such as lower watt lighting, automated control systems and LED lights in nfreezers Store Manager KPIs linked to payments of bonuses Gained the Carbon Trust Standard Warehouses down 19% to just over 21 kWhs per sq ft Offices remain an issue with an increase of 15% partially due to change of use from empty footage OPERATIONAL WASTE Average recycling rate for year was 53% although by March we were achieving levels of 88% as the initial trials and best practices were rolled out across the UK Importantly the amount of waste generated (98,000 tonnes) was down 16% driven by both reductions in food waste and improved accuracy of data Our total recycling activities saved an equivalent of 24,000 tonnes of CO2e 18

Plan A Process Gateways Project inception Project Briefing Draft Store List A Plan A Terms of Reference B Whole Life Costing applied to all Specifications C Property Evaluation Tool D Store Energy Target Predicted E SAM 1 Scheme Briefing Store Brief F SAM 2 Review of Achievable Scope Retail Review and Scope Agreement Engineering and Construction Brief Sign Off Food Layout & GM Presentation Value engineering & approval Issue Tender Information Pre-Tender Cost Estimate Scheme Design Development Approved Scheme Published on BIW H Verify Store Plan A Targets G SAM 3 Full Presentation and Sign Off Cost Review Meeting Scheme Sign Off Sign Off Backstage/ Store Operations Sign Off M&S Money Sign Off per una Footage Sign Off Hospitality Detailed Design Mid Bid Review Main Contractor Tender Return Recommendation Approval MC Appointment (inc. Novations) Statutory Applications & Notifications Obtain Key Consents Confirmation of Vacant Possession Asbestos 14 day ASB5 Notification Lodge Commencement Notice CR1/NI10 (S.Ireland) Brief GM Equipment Layout Produce Schedule of Loose Equipment (SOLE) Sign Off Lighting & reflected Ceiling Plan Constructors contractual obligations Countdown Meeting Phased Handovers Start on Site Enabling Works I Pre Start Meeting Sign Off Internal Signage / Graphics Design per una Sign Off CAD Layout GM & Food Demand Fulfilment Schedules Sign Off GM Loose Equipment Layout Capital Approval Committee Sign of Food, Fixtures & Fittings Internal Signage/ Graphics Briefing Commissioning & training Post occupancy evaluation J Practical Completion Retail Handover Store Launch PIR 14 Day Defects Inspection Post Implementation K 3 Month Energy Efficiency Check L 6 Month Energy Efficiency Check M 12 Month Energy Efficiency Check N Post Occupancy Evaluation Final account / 12 month Making Good of Defects - Plan A Gateways

What is it? Following the launch of Plan A 2015 where we added an additional 80 commitments, this Sustainable Construction Manual has been created to ensure our supply base and employees are clear on their obligations to deliver the enhanced plan. It is a fresh revisit of the existing categories shown on the screen. It is also broken down into the five stages that reflect our end to end process. Including Site Selection, Design & Specification, Construction, Commissioning and Building Handover and In Use. Where can it be sourced from? The Manual is available on Questa located in the Policy and Process area under the Plan A category How do you want the supply base to use the information that is held in it? The Manual should be read as a guidance document which will help us build Plan A into every part of our development programme. It will set the direction of our learning stores to help improve our understanding of sustainable Construction and show us how to create a store that:- Has zero embodied carbon in construction Is made from 100% recycled material Is 100% recycled when refurbished or no longer needed Has a net positive biodiversity impact Is resilient to climate change Brings new benefits to the communities we serve How will the supply base report their adherence to it (i.e. style and frequency of any reporting they need to do? Plan A should feature as an agenda item in design team meetings, project team meetings (Munish your help on the proper names for these as a result of the work you’re doing to align the project handbook etc). As the Manual is a guidance document, and each project will have its specific Plan A features, that are listed in it’s Passport which we discuss in the next slide. It is important that the same Plan A features do not fall victim to ‘churn’ but that the spirit of innovation and leading practice is embraced. This will be best achieved when Plan A is raised /discussed /debated and challenged throughout the end to end process.

Time is not on our hands!

Thank you www.marksandspencer.com/construction We are in danger of being the first species on this planet to monitor its own extinction