Energy

The key to achieving carbon reduction targets is to reduce energy usage. Our approach is driven by our desire to improve our efficiency and to help create a better environment for the future. We are making good progress towards realising our ambition to become a truly low carbon sustainable Group.

Energy use
for the year ended 31 March 2008
  GWh
Health & Beauty 536
Pharmaceutical Wholesale 107
Contract Manufacturing & Corporate 87
  730

(Data excludes Russia)

During the year our total energy consumption across the Group was 730 gigawatt hours. The majority of this consumption was within our Health & Beauty outlets but our Pharmaceutical Wholesale warehouses use proportionally more energy than our outlets as they are larger. The term Contract Manufacturing & Corporate includes our manufacturing operations whose processes are more energy intensive.

Bar graph showing energy efficiency for the year ended 31 March 2008 in kwh/m2 for the Health & Beauty Division (244%) and Pharmaceutical Wholesale Division (166%)

We measure energy efficiency by floor space because we feel that this is the most appropriate measure for both our key business activities. This enables comparisons to be made across our outlets and warehouses.

For Contract Manufacturing energy efficiency is measured per unit of output shipped because of the direct link between energy consumption and the number of units produced.

As we endeavour to create a comfortable, pleasant and inviting customer environment in our retail outlets, energy intensity tends to be higher than in our warehouses, for example more lighting and heating is required in our stores environment.

Responsible manufacturing

Over the last four years our manufacturing facility in Nottingham has cut electricity use by almost 25% per item produced. This has been achieved by adopting a wide variety of measures, from improved productivity to more efficient factory lighting.

Most of the power and compressed air used at our Nottingham factory is supplied by our own combined heat and power energy centre. This converts fuel to useful energy with an efficiency of around 75% compared to around 35%-40% for a typical coal / gas fired power station. Recently, the site passed its reaccreditation to ISO14001 environmental standards – an internationally recognised standard.

Drinks packaging

We have replaced the virgin polyethylene terephthalate (PET) packaging used for a selection of flavoured drinks bottles we manufacture with 100% post consumer recycled PET, saving over 200 tonnes of virgin material each year.

A more sustainable business, month by month

In Spain, “Actua Ahora” (Act Now) is the name of our campaign to make sustainability a part of everyday working life by promoting a positive corporate social responsibility action among our employees each month. For example, in January 2007 we focused on energy saving, asking all our warehouses to adjust temperature settings. In February, we launched a used mobile phone collection campaign, in collaboration with the “Spanish Red Cross” and in March, we turned our attention to the responsible use and recycling of paper.

We’ve reduced the carbon footprint of Botanics shampoo by 20%

“The key to achieving carbon reduction targets is to reduce energy useage”