Packaging reduction the ASDA way

Page 2 Addressing the issues we all care about at home and around the world. Working with our partners to create a naturally affordable choice. Improving the way we work to reduce our global impacts.

Page 3 What does Sustainability mean to Asda in 2008 ? ProjectWorkstreamDeliverables Energy Sustainable Stores New stores consume 30% less energy by end 2009 over 2005 base levels Existing stores consume 20% less energy by end 2012 over 2005 base levels Sustainable Distribution Fleet transport reduces CO2 emissions by 40% by end 2009 over 2005 base levels Waste Materials Management - Carrier Bags Reduce carrier bags environmental impact by 25% by end 2008 Materials Management – Store Waste Send zero store waste to landfill by end 2010 Products & Packaging Reduce PackagingReduce food packaging by weight by 25% by end 2008 Food 100% sustainable fish by end 2010 All Asda brand products contain sustainable palm oil by end 2008 GMEnd sale of filament light bulbs by end 2010

Page 4 Zero Waste to Landfill & Recycling Already hit Courtauld Commitment for packaging 7 months early Created 6 regional recycling centres – Falkirk for Scotland Recycle from back of stores Delivered absolute packaging reductions Packaging composition and end of life reclamation is linked

Page 5 Tangible Results 65% of our waste is recycled, reused or composted 157,000 tonnes of cardboard 9,000 tonnes of plastic £5.3m p/a saved in landfill tax from recycling of cardboard and plastic £12.3millions p/a saved in energy consumption £6.1millions saved in transport Recycled from the back of our stores

Page 6 So what are we doing about packaging? By the end of this year we will use 25% less packaging around our food 1,000s of packs being light-weighted, right-sized or down-gauged Re-setting “Best In Class” standards – SVN Network Favour use of Forestry Stewardship Council (FSC) paper and board Favour use of Post-Consumer Waste (PCW) Recycled content ASDA chairs Cross Industry Packaging Waste Group – supported by government, retailers, manufacturers and waste industry WE HAVE ALREADY DELIVERED ON THE COURTAULD 10% REDUCTION

Page 7 Our Strategy Our strategy

Page 8 The value of packaging CONVENIENCE SELLS THE PRODUCT PROVIDES INFORMATION IMPROVES SHELF-LIFE CHOICE PORTION CONTROL REDUCES WASTESECURITYINNOVATION

Page 9 25% 2010 Focusing on Bio-degradable LeadingEnd 2008 Not Reducing Glass 15%2012Behind the pack 20095% 25%2010 Nearest Rival but one year behind Retail Targets

Page 10 REMOVE REDUCE RECYCLE RENEWABLE REVENUE Asda Packaging Strategy: The 5 Rs

Page 11 REMOVE REDUCE RECYCLE RENEWABLE REVENUE Asda Packaging Strategy: The 5 Rs

Page 12 REMOVE REDUCE Downgauging Lightweighting Rightsizing RECYCLE RENEWABLE REVENUE Asda Packaging Strategy: The 5 R’s

Page 13 REMOVE REDUCE RECYCLE Recycled Content Recyclable RENEWABLE REVENUE Asda Packaging Strategy: The 5 R’s

Page 14 REMOVE REDUCE RECYCLE RENEWABLE No Compostables No Biodegradables No PLA REVENUE Asda Packaging Strategy: The 5 R’s X

Page 15 Asda Packaging Strategy: The 5 R’s REMOVE REDUCE RECYCLE RENEWABLE REVENUE Making sustainability affordable Less is More £

Page 16 Simple changes make a big difference: Ready Meals Carboard Sleeves reduced 32% Less Packaging More than 2300t of card saved

Page 17 Simple changes make a big difference: Olive Oil Change from Glass to Plastic 32% Less Packaging More than 988t of glass saved 20% Better Carbon Footprint

Page 18 Simple changes make a big difference: Wine, Coffee & Spices Lightweight Glass 5%-20% Less Packaging Over 6000t of glass saved Lead Retailer in WRAP Glassrite project

Page 19 Simple changes make a big difference: Cut Herbs Simple bag, was in a tray 66% Less Packaging Over 56t of Plastic saved Modified Atmosphere Packaging (MAP) extends shelf-life and minimises food waste NEW OLD

Page 20 Simple changes make a big difference: George Cosmetics Carton removal 10% Less Packaging Over 104t of Card saved NEW OLD

Page 21 Simple changes make a big difference: Courgettes Plastic Tray & Film Removed 75% Less Packaging OLD NEW

Page 22 The Big Wins! Eggs7% Less Mince14% Less Yoghurts15% Less Dips17% Less Salmon27% Less Ice Cream(s)29% Less Pizza68% Less Courgettes75% Less Muesli80% Less Bagels81% Less Sweetcorn85% Less Grapefruit93% Less One of our first ranges reviewed: Organics Range

Page 23 We lead the industry at a 19% Packaging Reduction so far and feel confident in delivering our 25% reduction target by end of 2008 reducing the packaging on more than 4,000 products In weight terms we have already removed more 35,500t of packaging. By the end of this year we will have increased the figure to more than 46,000t less packaging That’s the equivalent weight of more than 6,600 London Buses! ASDA are also the first Retailer to deliver Courtauld Commitment 10% 6% 2% 22% 18% 14% 25% Morrisons

Page 24 How Asda is helping customers to recycle Customers tell us they want help to recycle – this should be closely linked to packaging composition and Local Authority waste infrastructure New cross-retailer icon initiative will help to clarify packaging recyclability for customers – more on this later Asda is reviewing all car park ‘bring banks’ to make it simpler for customers to recycle – more Tetra Pak, better units Progress to be maintained through recycling champions Engaged with Councils and with local schools National Recycling Week 2008 New materials to upskill colleagues and customers: — Monthly E-zine — Web resources — ASDA Magazine and ASDA FM — Supported by colleague training systems

Page 25 New packaging ‘ease of recycling’ icon We will make it easier for our customers to recycle more of our packaging more often Every packaging component on every pack On over 2,000 packs already ASDA packaging to be 100% recyclable

Page 26 LGA War On Waste Study: ASDA No1

Page 27 LGA War On Waste Study: 9% reduction in 6 months!

Page 28 LGA War On Waste Study: How much more packaging?

ASDA, Making Green Living Affordable for All!