David Gilroy is the principal of Store Excel
I consider myself to be a responsible citizen. I pay my taxes, I give to charities, I am not a drug dealer or a member of an organised crime gang, and I recycle my rubbish. And boy do I recycle my rubbish. Vegetable, compostable matter in one bin. Paper and cardboard in another. Plastics, glass and canned recyclables into a third. In our household and much to the dismay of our incredulous children, the recyclables are washed and dried before they go into the bin in case someone “checks it”.
And as the binmen drive off with our rubbish carefully segregated, that’s our civic duty done. But now the doubts are creeping in. Where does it all go and how is it recycled? I was dismayed recently to read that a large proportion of the country’s plastic returns go to incinerators to generate electricity, which is nearly as polluting as burning coal.
This is the problem with sustainability. It’s a subject so vast and on such a scale, where do you start? Here are a few salutary facts as reported in the i newspaper. Fossil fuel emissions have hit an all-time high. Ocean acidity levels and heat content have reached new peaks. Tree cover loss rose from 22.8 million hectares to 28.3 million hectares in 2023. Renewable energy consumption remained at one-fourteenth of fossil fuel consumption. I could go on, but you get the picture. It appears overwhelming.
However, there is good news for businesses in that operating sustainably equates with operating profitably. For many businesses, adopting sustainability measures can seem like a complex and time-consuming endeavour. A focus on four grounded, practical and commercially beneficial areas will help.
Energy management
While transitioning to renewable energy sources such as solar or wind power may seem like a large undertaking, many businesses are finding that the switch is easier and more affordable than ever before. For companies that are not ready for a full-scale renewable energy investment, there are still quick wins to be found by exploring green energy providers. Many businesses are now installing solar panels on rooftops or parking structures to generate their own energy and reduce their dependence on non-renewable sources.
There are still some tax incentives or rebates for businesses that switch to renewable energy, helping to offset the initial costs and making this transition a feasible option even for smaller businesses.
One of the easiest and most cost-effective sustainability measures businesses can take is switching to energy-efficient lighting, such as LED bulbs. LEDs use up to 75% less energy than traditional incandescent or halogen bulbs and last up to 25 times longer. This simple change reduces electricity consumption and, consequently, lowers utility bills. While the initial investment in LEDs may be slightly higher, the long-term savings in energy costs make it an easy win for sustainability. Additionally, many businesses can pair this step with installing motion sensors in less frequently used areas such as meeting rooms or restrooms, ensuring that lights are only on when necessary. Installing smart thermostats and energy management systems can help businesses optimise their energy use.
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These systems automatically adjust heating, cooling and lighting based on occupancy and real-time data, ensuring that energy is only used when it is needed. Refrigeration offers another opportunity to reduce energy consumption. Operating at consistent temperatures saves power, as does a well-executed cleaning programme to keep the equipment clear of dirt and ice build-up. It is interesting to note that many of the multiples are switching to closed-door cabinets for chilled and frozen food displays.
Transport
Operating an energy-efficient fleet transport system is a big sustainability win. Smart vehicle routing using optimisation software with real-time data to determine the most efficient journeys is essential. Planning routes that avoid high-traffic zones, where vehicles are likely to be stuck, reduces fuel wastage and unnecessary emissions. Transitioning to electric or hybrid vehicles can drastically reduce fuel consumption and emissions, especially for shorter delivery routes.
Combine this with aerodynamic design, choosing vehicles designed with fuel efficiency. Installing fuel monitoring systems helps track fuel consumption and identify patterns of excessive use, enabling managers to target inefficiencies. Keeping vehicles well-maintained to ensure they run efficiently is a no-brainer. Regular oil changes, tyre pressure checks and engine tuning can significantly impact fuel consumption.
Training drivers to adopt fuel-efficient driving habits such as smooth acceleration, maintaining steady speeds, reducing idling and minimising harsh braking can cut fuel use by 10-15%. Implement reward programmes to encourage drivers who achieve high fuel efficiency. This can lead to better driving habits. Telematics can track driver behaviour, including harsh braking, over-speeding or excessive idling, which can increase fuel consumption.
Load optimisation software to ensure trucks are carrying the maximum amount without overloading, which can reduce the number of trips and fuel usage. There will be opportunities to pick up new loads on the return trip to reduce empty vehicle returns.
Waste reduction
There are several ways businesses in the food and drink sector can reduce waste. Monitoring, measuring and targeting waste is a good place to start. Making waste control a key management deliverable will focus minds. Clearly the first and the best way to control waste is to generate as little as possible. Optimising upstream stock input is critically important. Through accurate forecasting using sales data and analytics, you can prevent overordering and reduce the risk of products life-expiring before use. A tighter stock holding also reduces stock handling, damages and clutter. Regular stock checks to identify items nearing expiration and sell through before they become a distress sale is a key component. When waste does need to be cleared, establishing partnerships with food banks and charities to donate unsold food to that is still safe to eat, and helping support communities, is the way forward.
For example, our industry has a highly productive relationship with Fare-Share, the UK’s biggest charity fighting hunger and food waste. Their chief executive, George White, asserts that the UK is behind other developed countries in food distribution and is calling on the government to support and help “supercharge” activity in this country.
Diverting food that is not suitable for human consumption to animal feed, especially in agriculture or animal farming, is another avenue. Interesting to note Tesco’s partnership with RenEco to unpack surplus food and transform it into pulp or crumb used to feed animals. Their policy that any food that can be eaten by humans should go to humans strikes a chord.
When it comes to packaging, transitioning to biodegradable, compostable or recyclable packaging materials is preferred and will very likely be the minimum standard expected by customers.
Employees
One of the fastest ways to create a more sustainable business is to engage employees in sustainability initiatives. By fostering a company-wide culture of environmental responsibility, businesses can ensure their sustainability goals are met quicker and more effectively.
Employees can contribute in a variety of ways, from participating in office recycling programmes to suggesting energy-saving ideas or carpooling initiatives. Businesses can incentivise sustainable behaviours through rewards programmes or friendly competitions, such as recognising the team that cuts the most waste or energy consumption in each month.
Training and education are also essential. Providing employees with sustainability training can ensure that everyone understands the company’s goals and knows how to contribute, from turning off lights to adopting more sustainable work habits. These efforts not only reduce the company’s environmental impact, but also foster a sense of purpose and community among employees.
Sustainability by its very nature is all- encompassing and requires everyone to be contributing. The great news for businesses is that it is entirely consistent with efficiency and profitability within the wholesale channel.
