Musgrave Energy & Natura lResources Management Pol icyWo r k i n g t o g e t h e r t o d e l i v e r s u s t a i n a b i l i t y

Musgrave Energy & Natura lResources Management Pol icyWo r k i n g t o g e t h e r t o d e l i v e r s u s t a i n a b i l i t y

B A C K G R O U N D

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 irreversibledamage to our climate andenvironment as a whole. The Kyotocommitment of the EuropeanCommunity and its Member States are clear signals which need to berealised 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.

T H E C O M P A N Y

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.

P O L I C Y P U R P O S E

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.

S C O P E

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 resourcesmanagement is the collective term for all the systematic practices to minimise and control both thequantity and cost of energy andnatural resources used in conductingour business, while also improvingenvironmental outcomes and the level of service.”

P O L I C Y A I M S

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.

P O L I C Y O B J E C T I V E S

Our objectives shall be to:

� Reduce our dependence on and consumption of

finite fossil fuels and other natural resources

� Reduce our emissions of CO2 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.

C O - O R D I N A T I N G E N E R G Y A N DN A T U R A L R E S O U R C E M A N A G E M E N T

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.

P O L I C Y S T A T E M E N T

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.

I M P L E M E N T A T I O N

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.

APPLICATION TO CONTRACTORSContractors 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.

REVIEWThis policy will be reviewed at least annually

and updated as required by the Musgrave Group

Environmental Executive.

REPORTINGMusgrave will report its energy consumption quarterly

and its progress in achieving energy objectives in its

biennial Environmental and Social Accountability Report.

REFERENCEhttp://www.sei.ie

http://www.thecarbontrust.co.uk

Good Practice Guide 376 from The Carbon Trust:

"A strategic approach to energy and

environmental management”.

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