Our products & services

Eco products

Around 25%¹ of carbon emissions come from the home. As one of the world's leading home improvement retailers, Kingfisher is in a unique position to help consumers make their homes more sustainable at lower cost.

Our two largest businesses have developed extensive eco ranges:

• B&Q UK's One Planet Home® range includes over 4,000 products
• Castorama France has over 5,400 Maison Éco (Eco House) products.

In 2009/10, sales of eco products totalled £1.07 billion – accounting for 10% of total retail sales across the Group, up from 7% the previous year (see more on eco product sales in the section on business opportunity). Our businesses run a variety of marketing campaigns to promote eco products (see more on eco marketing in the section on engaging our customers).

A new own-label eco brand has been created. We are now developing a range of Group-sourced eco products for the new brand. By using the Group's buying strength, we can drive innovation and reduce prices for customers.

A key challenge is to ensure that we use a credible and consistent definition of an eco product across the Group. There is currently no agreed industry-wide definition of an eco product and therefore we work with external partners, including the sustainability charity BioRegional, to ensure we adopt a robust approach. During 2009, we produced a Group definition of an eco product. We define a product as eco if it has either an eco function (i.e. it helps customers reduce their environmental impact) or it has specific environmental credentials, e.g. a credible eco-label such as the Forest Stewardship Council (FSC). We have identified six specific eco product categories:

• save energy e.g. energy-saving lighting, insulation, renewable energy technologies, energy-efficient appliances
• save water e.g. water butts, aerating taps and showers, water-efficient washing machines / dishwashers
• conserve nature e.g. bird feeders, bird and bat boxes, FSC-certified timber products, plants or seeds recommended by local wildlife organisations
• grow your own e.g. seeds (herb, fruit and vegetable), grow bags, propagators, peat-free compost, organic fertiliser / pest control
• reuse and recycle e.g. compost and recycling bins, products made of recycled materials, rechargeable batteries
• healthy home e.g. minimal VOC paint, eco cleaning products.

During 2009, we also worked with BioRegional to produce additional guidelines for our businesses on the six eco product categories, including examples of products that can and cannot be included. These guidelines are designed to help our businesses evaluate which products meet the Kingfisher eco product definition. BioRegional also provided one-to-one guidance for three of our businesses (Brico Dépôt Spain, Castorama Russia, Koçtaş in Turkey) on how to apply the definition in practice. We recognise that we will need to regularly review and update our definition of an eco product to reflect the latest developments in standards, technology and sustainability.

Our two largest businesses have also worked with external partners to identify eco products. At B&Q UK every eco product is independently assessed by experts at BioRegional to check it has strong environmental credentials. Castorama France has worked with the environmental organisation WWF and the French Energy and Environment Agency (ADEME) to develop guidelines for buyers and suppliers.

Innovation is the life-blood of a retailer as modern consumers become more demanding. Over the past year, our businesses have worked closely with suppliers to develop new innovative eco products. For example, B&Q UK launched its first dimmable energy-saving light bulb and Castorama France has introduced an eco toilet with an inbuilt sink which is highly water efficient because the water from the sink is reused to flush the toilet (see eco product case studies). The dual toilet and sink was one of the winning products of the Castorama France eco product award which is designed to encourage supplier innovation. The award is run annually in partnership with WWF and the ethical consumer website ConsoGlobe, and over 7,300 votes were cast to select the winners in 2009.

Many of the eco products identified by our businesses are products which help customers to reduce their own environmental impact. However, we recognise that we also need to ensure that there are no environmental or social risks in the supply chain. Our definition of an eco product specifies that eco products should meet Kingfisher's CR policy requirements. The main areas of risk are associated with timber sourcing, chemicals and factory working conditions and we seek to address these through specific initiatives in these areas (see timber, chemicals and suppliers). For example, B&Q UK requires suppliers of One Planet Home® products to reach agreed standards in its supplier assessment programme known as QUEST (see suppliers).

¹ UK figure. Source: National Atmospheric Emissions Inventory (NAEI), produced for the government Department of Energy and Climate Change (DECC) and the Devolved Administrations by AEA.

Eco design

As well as developing specific eco ranges, we are also examining how best to incorporate sustainability principles into our wider product sourcing.

Last year we launched a new Group-led project to produce eco-design guidelines for buyers. Although the principle of eco-design is simple, the process of applying it to specific products is a complex task. In order to improve understanding, we have carried out environmental life-cycle assessments for seven popular products sold across our businesses (a hedge trimmer, kitchen worktop, oil heater, paintbrush, shower, light and wooden floor). We are now working to use this information to formulate specific guidance on eco-design for key product categories and will be working with vendors to trial these in 2010.

In addition, we are also working on specific initiatives on energy-efficient products (see below), sustainable timber sourcing (see timber), responsible use of chemicals in products (see chemicals) and packaging reduction (see packaging).

Energy-efficient products

In line with EU and national legislation, all of our European businesses have set targets to phase out the sale of incandescent light bulbs. In addition, B&Q China has also set a voluntary target to remove incandescent light bulbs by 2011. In September 2009, B&Q UK doubled its range of energy-efficient lighting across stores. With over 200 different varieties of bulb, this is believed to be the most comprehensive range of energy-efficient lighting in the UK. See news item: 1 September 2009 – B&Q UK set to double energy efficiency light bulb range.

Our own-brand range of energy-saving light bulbs (developed by the Kingfisher Sourcing Organisation) is sold in B&Q UK and Castorama France stores.

B&Q UK has buying standards on energy-using products, water-using products and lighting. It is on track to meet its commitment for all domestic washing machines, dishwashers, electric cookers, fridges and fridge freezers to be classified as 'A' rated or above according to the EU energy standards by the end of 2010.

Kingfisher is working to comply with the Energy using Products (EuP) directive – a European framework for setting eco-design requirements for goods that consume energy. Our businesses sell a wide range of products that fall within the scope of the framework, including lighting, boilers and some household appliances. Other products will also be affected following the decision by the Commission to widen the scope to include Energy related Products (ErP).

The new European directive seeks to improve the energy efficiency of products by setting minimum performance standards for different product categories, known as Implementing Measures. We have established a working group, with representatives from across the Group, which focuses on compliance with the EuP directive including the technical requirements. We are also developing our internal systems, including our quality management tool, to assess products for compliance with the EuP standards.

We are engaging with regulators (e.g. the European Commission and Defra), our suppliers and external technical experts and testing houses to ensure the requirements of EuP are effectively implemented across our businesses. We have worked with the Energy Saving Trust (EST) in the UK to develop buyer guides to assist commercial teams on the practical requirements of the Implementing Measures.

Kingfisher has also worked with the EST to achieve the Energy Saving Recommended (ESR) accreditation for all compact fluorescent light bulbs sold under the B&Q and Screwfix brand name in the UK. ESR calls for a higher performance standard than EuP and also checks that there are consistent quality management processes in place.

Inclusive design

We seek to work with suppliers to develop products which are inclusive in their design, to meet the needs of disabled or vulnerable customers.

For example, B&Q UK has a Can Do™ range of simple-to-use products, designed to make daily living easier for anyone who has a difficulty with their dexterity, vision or mobility. Castorama Poland sells a range of bathroom products that are specifically designed to be easily used by older and disabled people.