Energy and climate change

Carbon management

Reducing carbon emissions and managing our associated impact on the environment are key challenges that face Boots UK today. We recognise how important the greenhouse gas emissions global agenda is. That is why carbon management forms one of our four main strategic Corporate Social Responsibility (CSR) priorities.

Energy use in buildings is by far the largest contributor to our carbon emissions, with our stores being the main users of energy. We continue to invest in technology that enables us to monitor and remotely control the energy in our smaller stores, ensuring that the running times of energy consuming equipment matches the operational patterns of these stores. One key objective, for example, is to reduce energy use when stores are closed; we do this by scrutinising the data we've collected on a store’s consumption patterns to identify where energy is being used when it shouldn’t be. We then work with our store colleagues and external support providers to implement solutions that effectively reduce energy use to the lowest practical levels.

In January 2010 we were awarded the Carbon Trust Standard, an external accreditation that demonstrates Boots UK’s commitment to reducing its carbon footprint. In order to achieve this, the business had to prove that it had reduced its carbon footprint over the previous three years. We needed to demonstrate the robust processes that are in place in order to reduce our footprint, show how we will continue to deliver further carbon savings and how we communicate our plans / activities across the business.

Examples of our continuing activity include maintaining a robust database to collate energy usage that enables us to monitor and measure our emissions and identify where we can prioritise investment to reduce our footprint. We have a rolling programme of energy efficiency projects to replace inefficient equipment and optimise the performance of existing systems. In the last 2 years we have invested around £10 million in projects to improve our heating and ventilation, to improve our control of store environments and to replace outdated lighting.

We regularly provide best practice advice to our colleagues through our internal website, publications and online e-learning.

Eastbourne low carbon trial

Our first low carbon trial store, rebuilt and fitted out in just five months, opened in May 2011. Incorporating a wide range of around 20 different measures - from smart metering to solar panels, via optimum use of daylight for ambient lighting. It also allows us to understand the potential for these different technology measures across the rest of the Boots UK store portfolio.

The low carbon store is designed to deliver an overall carbon emissions reduction of around a third and the key measures that enable this include:

• Sun pipes to capture sunlight and channel it to sales areas
• Skylights in the roof to provide daylight contribution to non-sales areas
• Installation of high efficiency lighting, including low energy LEDs in external signage
• Innovative HVAC (heating, ventilation and air conditioning) with destratification fans to distribute heated or cooled air
• High efficiency boiler and chilling plant
• Ground source heat pumps to heat the building more efficiently
• Solar photovoltaic panels on the south-facing roof
• Voltage optimisation and smart metering to ensure precise control and monitoring of energy use

Depending on the results we achieve in Eastbourne, many of the innovative measures we are trialling there, will be considered for wider use in other Boots UK stores around the country. In 2005, Boots became a member of The Prince’s Mayday Network, giving a public commitment to reduce its carbon emissions by 30% by 2020 in the Boots legacy stores compared to a baseline year 2005.

LED illuminated fascias

The opening of our midnight pharmacies, back in 2006, was a major step forward in terms of customer service. However, one drawback from an environmental perspective was that because the specially designed signs outside the stores were in use until midnight, they were using a lot of energy. So we devised an innovative way of replacing the signs' fluorescent tubes with LEDs (light-emitting diodes), which are far more energy-efficient.

We calculate that each sign's energy usage will drop from around 2,500W per hour to around 50W - helping us reduce the overall carbon output by over 90% and as LEDs last much longer than fluorescent tubes, we'll save on replacement and maintenance costs, as well.

The new signs have now been installed outside all of our Boots UK stores with a midnight pharmacy (over 145 stores and 270 signs). The carbon dioxide (CO₂) reduction we estimate to be a little under 4 tonnes per fascia per year, amounting to just over 1,000 tonnes each year for the 270 new signs.

We are also planning to install new LED lighting in our remaining back-lit signs too. As the technology has rapidly improved, we regard this as the way forward for high quality, low carbon signage.

Energy efficiency

The key to achieving our carbon reduction target is to improve our energy efficiency and for each of us to do our bit wherever possible. In August 2009 we launched an awareness campaign aimed at reducing energy use in our Boots UK stores through embracing a few simple daily activities. The campaign has released information at regular intervals to keep the issue at the front of people’s minds. It included creating an internal website for energy awareness with updates and communications and providing an e-learning training programme that communicated the context for our need to reduce our carbon footprint along with best practice advice.

Once again, Boots UK took part in the Energy Saving Trust’s Energy Saving Week in October. The aim of the campaign is to help everyone learn how they can reduce their carbon footprint both at work and at home and show how significant savings can be made in money and energy. Energy Saving Week helps embed responsible energy use as a way of life, rather than it being simply something that is required in the workplace.

The combined heat and power (CHP) plant at our Nottingham support office site continues to assured as a "Good Quality" CHP, achieving 100% exemption from the Climate Change Levy, and continuues to maintain its ISO14001 accreditation.

Our total energy use in buildings has increased from 516 GWh (2009/10) to 525 GWh (2010/11). Trends in total energy use are influenced by a wide range of factors including business intensification, savings from our energy efficiency projects in stores and the usual fluctuations in consumption due to changes in the weather.

Total energy consumption

Our equivalent absolute carbon emissions for the period increased from 221,851 tonnes (2009/10) to 223,830 tonnes CO₂ (2010/11). Trends in carbon dioxide emissions are also affected by the energy mix, (ie the proportions of gas, electric and on-site generation) and changes in conversion factors.

Carbon dioxide from energy use in buildings

Our carbon intensity has continued to improve. Against revenue, our carbon emissions have decreased from 35.1 tonnes CO₂ per £million to 35.0 tonnes per £million, a 0.2% decrease.

The decreases confirm that, even with increased trading space and an economic climate that requires intensifying our retail offering, our ongoing investments and increasing efficiencies are delivering positive results.

Carbon intensity by revenue

We continue to make progress against our long-term Mayday commitment to reduce the carbon footprint of Boots legacy stores* by 30% by 2020 compared to 2005.

In 2010/11 our total improved carbon emissions reached 8.3% lower than our 2005/06 base year. It has been a tough year due to factors such as the early severe winter weather and business intensification, however we are confident our spend on projects that will reduce energy usage will support our CO₂ emission reductions going forward.

Boots UK May Day Network Commitment

*Boots stores prior to the 2006 merger between Boots Group PLC and Alliance UniChem Plc.