Whole Life Product SustainabilityAndrew Jenkins Sustainable Development Manager - Products

Products & Brands

Meeting the Product

Sustainability ChallengeSustainability Challenge

The sustainability challenge

• Finite resources

– Greater competition for scarcer materials

– Key materials now “at risk”

– Price volatility & increases

Greater Global Consumption = more demand for products, materials, energy & water = more waste, pollution & climate change

– Price volatility & increases

– Supplies “running out” (water)

• Renewable resources

– Loss of areas of rich biodiversity

– Effect of development on wildlife and communities

– Price volatility & shortages

Photos; © Brent Stirton / Getty Images / WWF & Jürgen Freund / WWF-Canon

Strategy; Boots Product Sustainability vision

We will embed sustainability standards in to all our consumer and retail own brands.

We will build a comprehensive database of all our

productsso that we can fully understand and measure opportunities to drive sustainability

improvements and drive out cost. We will do this through our unique ‘Green Tick’

A comprehensive, proactive

management

Boots UK

improvements and drive out cost. We will do this through our unique ‘Green Tick’

process.

We will manage our material resources so that they have minimal impact on the environment, biodiversity and communities

affected by our supply chain

We will proactively manage key opinion formers,

so that we have an ability to influence the potential future stream of product related

legislation.

management programme

(CSR scorecard)Will lead the

development of sustainable health

and beauty products

Emerging Strategic Themes

“ours is a world of looming challenges and increasingly limited resources,” Ban ki-moon Sec Gen UN, Feb 2012

• Resource SecurityGlobal demand for resources could treble in the next forty years, but access to resources is becoming more difficult as costs and volatility increases, resource-exporting countries impose restrictions and climate change impacts bite.

• Protecting our Brand in an uncertain economy• Protecting our Brand in an uncertain economyConsumers expect brands to have an active stance on social responsibility issues. Increasingly brands are seen as responsible for their supply chains. Issues can become global in a matter of hours

• New Business Models – The circular economyTo meet economic, environmental and social challenges business needs to evolve new ways of thinking and an understanding of its place in a global society. Increased volatility and need for resilience provide opportunities for business to adapt and lead.

Working with our Supply Chain

• Traceability and governance

– All natural materials and ingredients

• Sustainable Materials

– Increasing requirements for credibly certified materials

– WWF – Global Forest Trade Network;

Round Table on Sustainable Palm Oil;Round Table on Sustainable Palm Oil;Forest Footprint Disclosure

• Reduce Impacts

– Understand our product footprints

– Re-design products

– Reduce waste, energy & water demand.

Photo; © Jürgen Freund / WWF-Canon

The Evolution of Boots

approach to Product approach to Product Footprinting

A whole life approach to product sustainability

Laureth Sulphate

Betaine

ManufactureRaw Materials Distribution DisposalUse

Water

Cocamide DEA

Sodium Chloride

Glycerin

Transport

Transport

Transport

Transport

Transport

ManufacturingProcess

Transport

Bottles

Bottling

Cap Added

Label added

RDC

• Cold

• Automated

• Automated

Transport

Transport ConsumedWaste

• Singles to

store

• Singles

to store

Transport

Waste

DeionisingLandfill

Retailer

Warehouse

The Product Journey is Complex: Process Map of Shampoo Life Cycle

Multi-step Processes Non-Activity Step Raw Materials Analysed Disposal of waste TransportationRaw Materials Not Analysed

Laureth Sulfosuccinate

Other Ingredients

Paper

Adhesives

Plastic wrapping

Cardboard

PET Pellets

Plastic

Transport

Transport

Transport

Melt Pellets

Bottle Blowing

Preform

Label added

GroupPacking

Shrink wrapped

TransportCap

Manufacture Transport

Transport

Transport

Printing/cutting

Transport

• Cold

Pressed

TransportPrinting/cutting

Transport

Outers (40-60)

Transport

Transport

Transport

ConsumedWaste Water

WaterTreatment

Landfill

Recycled

Transport

Transport

Shampoo

Bottles

Recycled

Transport

• Automated

for small

boxes,

outers by

hand

Landfill

Transport

Landfill

Transport

ReturnsGlycol Stearate

Transport

Small Boxes (6)

Retailer

Packaging

Distribution

29%

Production

5%

Materials

Total Footprint Excluding Use Phase

In 2007 we conducted carbon footprint analysis of a number of Boots products, including Shampoo

Carbon Footprint Study of Shampoo

Materials

66%

Materials5%

Production0.3%

Distribution2%

Retail>0%

Disposal>0.%

CONSUMER USE - 93%water heating

PACKAGING

(bottles) 58%

“You can help too. Using cooler water to wash your hair cuts CO2 emissions, reduces

your energy bills and is actually better for your hair.”

Practical Steps - Consumer Use Reducing Carbon Footprints:

Sustainability - A single issue, or many

issues?

Consumers have widely differing priorities when it comes to identifying the

sustainability concerns that top their agenda e.g. ethical sourcing, climate change, excessive packaging

Their priorities will change in response to media stories, NGO campaigns and the influence of other factors such as the wider economy.

“Carbon footprint is just one of many relevant environmental indicators such as water, waste, or biodiversity. Placing a singular focus on carbon could be misleading or result in shifting environmental burdens to other indicators. Product assessments should be holistic and consider the impacts on all relevant environmental indicators.”

AIM - European Brands AssociationPosition Paper on product Carbon Footprinting and Carbon Footprint Labels – Jan 2010

Boots Product Sustainability Assessment Model

FEATURES�Creates a sustainability profile “footprint” of

a product to compare relative performance

and identify “hotspots”

�Set improvement targets by product type or

by brand

A Boots developed web-based tool that quickly and simply

analyses and scores 24 sustainability indicators across

the lifecycle of an individual product, including consumer use

�Manage a database of sustainability

performance data for understanding risks,

opportunities, reporting & analysis, at an

individual product, brand or company level

Number of

Ingredients

What’s in the product

(design)

Packaging

Packaging

Amount

Recycled

Packaging

Water in Product

Energy in

manufacture

Supplier

Management

Transit

Packaging

Packaging

Optimisation

Sustainably

Sourced

(resources)

Naturally

derived

Chemicals –

Environmental

Fate

Biodiversity: Source

Fairtrade &

Community

Trade

Renewable

Packaging Materials

Biodiversity: Accreditation

Supply

Chain

Packaging

Use at

homeEnd of Life

Energy in useWater in use

Waste

Product

Recyclable

Packaging

Ancillary

Materials

Transit Pack

Optimisation

Finished

goods

transport

Raw

Materials

transport

Recoverable

Packaging

Energy in

Distribution /

Store

ENERGYMATERIALS PACKAGING WATER TRANSPORT SUPPLIER

Sustainability Assessment Model Soltan Face Aftersun

3 ingredients: Environmental fate risk

No recycledpackaging used

Packaging not recyclable and Potential for product waste

Existing product range assessed for sustainability in Boots footprint assessment model. Samples of all product types

were includedData collated into Brand planning document identifying sustainability “hotspots”. Key sustainability objectives

identified.

Brand sustainability objectives filtered against feasibility, cost and brand value. Agreed objectives carried forward as the

The Process - Using product footprints to deliver actual improvements

and brand value. Agreed objectives carried forward as the Brand standard

Product development teams work to meet the agreed standard

New products entered in the assessment model and compared with previous range

Product Sustainability & LEAN

• Both Lean and Sustainability focus on maximising value and eliminating waste

• Lean considers value from a consumer perspective

• Sustainability considers value from social and environmental perspectives

• Putting the two together allows us to drive commercial value by creating value added

products with minimal waste

Sustainability LeanSustainability & LeanSustainability Lean

•Reduce footprint

•Sustainable sourcing

•Eco-design

•Design for Supply Chain

•Transit packaging reduction

•Christmas Gift Fresh air reduction

•Workplace organisation

•Supplier line balancing

Sustainability & Lean

Addressing Issues ;– Water Footprinting

Pro

du

ct

Wate

r R

eq

uir

em

en

t

SUPPLIER LOCATION CONSUMER LOCATION

Typical ShampooProduct Water Footprint

Manufacturing water.Line cleaning etc

< 0.5 Ltr / 100ml product

Product water content 0.075

Ltr/100ml product

Typical consumer use rates.75 Ltr/100ml product (shower)

(based on Environment Agency home water use data)

Pro

du

ct

Wate

r R

eq

uir

em

en

t

Source: Boots in-house product sustainability footprint analysis

The road to a circular economy

• Better stewardship of natural materials

• Better transfer of information along the supply

chain

The circular economy – one which captures materials

so that today’s goods are remanufactured or reused to become tomorrow’s goods, rather than landfill

• Eliminating waste throughout the supply chain

• Innovation & sustainable design

• Re-engaging consumers with where their

products come from

• Making the sustainable option the most cost effective

More informationwww.boots.com/csr

or contact

Andrew.Jenkins@boots.co.uk (+44) 115 959 5943for queries on product sustainability