See climate change data for explanatory notes to this chart.
In order to work out our carbon footprint, we convert energy use figures into CO2 emissions. Our CO2 equivalent from store energy per m2 of total sales area has fallen by 15% since 2006/07 (and 9% over the past year). These figures differ from the energy efficiency figures because CO2 emission factors vary by country due to differing energy mixes used for generation.
All our operating companies have energy action plans to drive further progress. We promote the exchange of best practice on energy efficiency through Group Property meetings (attended by the Property directors from our operating companies). For example, the property team in Castorama Russia have received guidance from B&Q UK on ways to improve the energy efficiency of store lighting.
A number of our businesses also use sophisticated energy monitoring systems to enable them to benchmark energy efficiency across their stores and identify potential areas for improvement. B&Q UK sends out monthly performance league tables to regional managers to encourage improvement. Screwfix installed automatic metering systems across its Trade Counters (stores) during 2009. Castorama France is rolling out a new energy and water monitoring system (to be completed by the end of May 2010) and is training store security managers to monitor efficiency. Koçtaş in Turkey has used detailed energy data to prioritise investment in energy-saving initiatives.
A key focus area has been to reduce electricity used for store lighting. For example, B&Q UK rolled out a half-lighting solution across 40 stores in 2009, following a trial in 2008. This involved the installation of photocells and a dimming system which switches to half lighting when there is sufficient daylight. These initiatives have been carefully designed to not compromise the store ambience or health and safety requirements. B&Q China had put in place more efficient store lighting across 28 of the 41 stores by the end of 2009. Screwfix has installed movement sensors for lighting in certain areas of the Stafford distribution centre, which are expected to save £40,000 per year in energy costs.
At Koçtaş in Turkey, solar reflective ceramic paint has been applied to the roofs of six stores – leading to energy savings of around 20% per store. This energy-saving initiative is now included in the building specification for new stores.
Low-carbon energy
Improving our energy efficiency is an important first step in reducing our overall carbon footprint. However, we will need to switch to lower carbon energy sources in order to achieve more ambitious carbon reductions in the future. Although there have been some advances in renewable energy technologies over the past few years, they generally require significant investment upfront and have a long payback period. Across the Group, we have incorporated a number of different renewable energy technologies into new stores (which has been partly driven by planning regulations), but there has been limited roll-out of renewables across our existing estate.
B&Q UK aims for energy use in all new stores to be 'zero carbon' from 2012 and for all electricity for existing stores to be 'zero carbon' by 2023. It has committed to achieving this through energy efficiency measures and use of renewable energy (either generated on-site or purchased from a dedicated off-site source which must represent new renewable energy). The company's store in New Malden, Surrey (which opened in January 2009) incorporates a range of green technologies including solar thermal water heating, 108 underground boreholes for heating and cooling, rainwater harvesting and a green roof. In February 2009, a 2MW wind turbine became operational at the distribution centre in Worksop, which supplies approximately 30% of the building's required energy. The company has incorporated plans for biomass heating into the new head office building (opening in 2011) and is carrying out a study with the Carbon Trust into the feasibility of extending biomass technologies across existing stores.
Castorama France has set an objective to cut carbon emissions from new stores by 50% by 2012 (compared with average carbon emission levels across the estate during 2009). The store in Cormeilles-en-Parisis, near Paris (which opened in 2008), incorporates a range of renewable energy technologies including more than 2,000m2 of solar panels, an underground heat pump system for heating / cooling and a rainwater collection system. The store's overall energy performance is 31% better than the regulatory standard for commercial buildings. The plans for a new store in Quimper, south-west Brittany (due to open in 2011) include solar panels and a green roof for the building yard.
Brico Dépôt Spain has installed solar thermal water heating at seven of its 16 stores, in line with national legislation. At Brico Dépôt France, new stores also have solar thermal water heating, including those in Strasbourg, Pamier, Cesson and Rodez. Castorama Poland has a ground source heat pump at one store and is considering installing this technology in other stores. Koçtaş in Turkey has conducted a feasibility study into use of solar photovoltaic panels and plans to incorporate a ground source heat pump into the new store at Fethiye (opening in 2010).
Climate change risks
In 2008, we worked with the Carbon Trust and Enviros on a study to formally identify the key climate change risks and opportunities for our business, including regulatory, physical and other risks / opportunities.
The continuing increase in energy prices is one of the key climate change risks for Kingfisher and we seek to minimise costs through our work to improve energy efficiency. The amount spent on energy during 2009/10 was approximately £72 million (0.7% of the Group turnover).
Governments around the world are also increasing regulation to deliver progress against carbon reduction targets. For example, in the UK, the Carbon Reduction Commitment Energy Efficiency Scheme began in April 2010. We have registered to participate in this carbon trading scheme, which is expected to provide a further financial incentive for us to make energy reductions. In France, our businesses are also working to comply with new regulations which set specific requirements for improving the energy efficiency of new buildings.
We have also identified physical risks to our business associated with changes in the weather and rising sea levels. These impact on our operations in three main ways: physical impacts on our stores (e.g. flooding), changing customer demand for certain products (due to changes in the climate) and the impact on our supply chain (e.g. sourcing of raw materials, production and transport). Our approach is to manage these risks through specific measures such as flood mapping and strategic sourcing strategies. In early 2010, we signed up to a climate change risk atlas which helps our businesses identify climate change risks in specific regions and locations.
As well as seeking to minimise risks, we are working to maximise business opportunities from the growing market for energy-saving products (see business opportunities).
We participate in the annual Carbon Disclosure Project (CDP) questionnaire and our response includes further details on how we are addressing key risks and opportunities. See www.cdproject.net.
Raising awareness of climate change
B&Q China and Castorama France have participated in Earth Hour, a global campaign organised by the environmental organisation WWF, to encourage people across the world to switch off their lights for one hour and help raise awareness of climate change. During the March 2010 Earth Hour campaign, both B&Q China and Castorama France switched off all external lights across stores during the 60-minute period. Castorama France donated hundreds of candles for the switch-off event at the Eiffel Tower (used to illuminate the number 60 in front of the tower). A leaflet for employees about Earth Hour was also produced by Castorama France (see employee engagement section for further details).
In the run-up to the international climate change talks in Copenhagen in December 2010, Kingfisher signed the Copenhagen Communiqué, calling on international leaders to agree a strong framework on climate change. Kingfisher's Chief Executive, Ian Cheshire, took part in TV and radio interviews to raise the profile of the Communiqué. A number of our businesses, including B&Q China and the Kingfisher Sourcing Organisation, wrote to suppliers to encourage them to sign up. Castorama France also worked with WWF to publish a leaflet on climate change for employees and customers, with 20,000 copies distributed.
Ian Cheshire also helped launch a new campaign to persuade British companies to stop wasting energy. The “Best Advice” campaign aims to encourage businesses to cut their energy use through a carbon survey conducted by the Carbon Trust.
Data assurance
The data presented in the chart on this page and the explanatory notes relating to this data have been reviewed by Ernst & Young LLP. May 2010.
For more details see the Ernst & Young Assurance Statement
