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MS

• 500 UK stores 100 global franchises
• 60,000 staff
• 30,000 product lines 1000s raw materials
• 1000 suppliers 100,000s workers
• 3m customers per week
• Shareholders
• Stakeholders from animal rights groups to the WI

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People worry more, trust less, know more, are
confronted more, expect more...
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• BUT, consumers wont compromise

Quality
Service
Value
Innovation
Trust
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and the evidence that change is needed is now
indisputable
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MS well positioned to take advantage of these
trends.

• 100 own brand 100 control
• Competing on value not lowest price
• Its a part of our brand Trust, Innovation
• Good supply partners with similar values
• Customers want to know more

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So what did we do?
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Know your impacts
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Talk to stakeholders
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Talk to customers

How important do you think it is that MS is
committed to meeting their social, ethical and
environmental responsibilities?
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Just a few years later
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What? 100 point, 5 year, 200m strategic plan

• CLIMATE
• WASTE
• SUSTAINABLE RAW MATERIALS
• FAIR PARTNER
• HEALTH

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How?

• Brainstorm gt Launch 6 months
• 3 sustainable development managers
• 60 people in A team
• How we do Business Committee chaired by CEO
• Strategy team, delivery team and communication
  team
• Steering groups for each pillar

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Climate Change

• Over the next five years we will
• become carbon neutral for our own operations
• Reduce energy use by 25
• maximise the use of renewables (all stores/DCs/
  Offices on green energy, lorries on 50
  bio-diesel)
• only use offsetting as a last resort (logistics
  and business air travel)
• address food miles (targets to reduce air
  freight, flown label, UK/regional sourcing)
• help our suppliers and customers to reduce their
  emissions

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7. Green electricity
175Gwh of renewable electricity already
sourced, saving 55,000t of CO2
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8. Anaerobic digestion
AD Farmers day engaging 20 MS Farmers and
suppliers
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9. Green stores
Bournemouth, Pollock, Galasheils
All effective measures now integrated into MS
Sustainable Construction Manual
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13. Green transport
Trial of Tear-drop trailer, improving fuel
consumption by 20 and 10 load space.
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22. Green factories
Contract signed with MAS Holdings, Sri Lanka,
Westbridge UK, and more to come in other
countries.
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27. Footprint campaign
WWF One Planet Living carbon calculator
co-developed
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Waste

• Over the next five years we will
• send no waste to landfill from our operations
• reduce our use of packaging by 25,
• ensure all packaging materials can be
  recycled/composted
• maximise the use of sustainable packaging raw
  materials
• put clear recycling logos on every piece of
  packaging
• reduce our use of carrier bags by 33
• trial closed loop recycling in our cafes
• provide our customers with alternatives to
  throwing clothes away when theyve finished with
  them

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34. Construction Waste
75 construction waste from store developments
sent for recycling. On site in approx. 60 stores
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38. Packaging (sustainable raw materials)
Recycled denim packing box trial.
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40. Packaging (WRAP logos)
WRAP symbols on all food products by end year
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45. Carrier Bags (reduction)
Do you need a bag? Campaign launched
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Raw Materials

• Over the next five years we will
• Wood all FSC or recycled
• Fish all MSC or equivalent
• Polyester made from recycled plastic
• Organic triple food sales, introduce cotton,
  wool
• Farming farmers meet independent standards
• Water reduce use in stores and supply chains
• Free range all fresh turkey, pork and duck
• Non-food animal welfare known source/standard
• Stores more sustainable construction materials

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49. Organic food
Launched first ever range of Organic, nut free
Easter Eggs, March 07.
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54. Sustainable textiles
First major retailer to sell a range of Organic
Linen, launched April 07.50,000 shirts
bought.8,000 pieces of organic linen.
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57. Wood
90 of the Spring 07 Garden Furniture range
made from FSC certified wood.
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60. Polyester
400,000 garments sold in Autumn 07 across Womens
and Menswear.From 4.5m recycled bottles!
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63. Free range
Fresh Geese, Turkey and Duck converted to 100
Free Range by end 07
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Health

• Over the next five year we will
• Offer the healthiest products salt reduction
  etc
• Offer easy to use information Eat well, Traffic
  Lights
• Engage our customers and employees health
  coaches, website, cause related marketing etc

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89. Eat Well
1.3BN sales 06/07, 14 on LY.30 of food
sales.1,300 products.
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90. Labelling
Launched in Jan 07, rolling out across all FSA
categories.
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97. Healthy eating assistants
1,500 assistants trained between January and May
07.
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Fair Partner

• Over the next 5 years we will
• Launch a Supplier Exchange to support change in
  our supply chain
• Be a leader at managing labour standards
• Extend buying pledges for UK farmers
• Sell more Fairtrade products (cotton, sugar, jam,
  produce)
• Support communities in the UK and overseas

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Leader on labour standards

• More in-country resources
• Networks of support for suppliers
• Unannounced audits
• Worker helpline
• Responsible buying

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82. Supplier Exchange
MS Supplier Exchange launched. Information
provider. Sharing best practice.
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85. Plan A Champions
570 Store and Head Office Plan A Champions
appointed.
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Taking Fairtrade into the mainstream
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80. Fairtrade food
Conversion to 100 Fairtrade sugar in Jams and
Conserves.
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81. Fairtrade Clothing
20 million Fairtrade garments over 12
months100m RSV.10 of the MS cotton
business.
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Lessons from Plan A year 1
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Know your customer

• 10 green crusaders ----gt Plan A as whole
• 30 if its easy -----gt MS brand short hand for
  doing their bit, Oxfam, hangers, bags
• 35 whats the point? -----gt Demonstrate part of
  whole e.g. carbon calculator
• 25 not my problem ------gt Diminishing group,
  driven by poverty, some issues resonate
  e.g. animal welfare

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Summary

• Great rally cry strategy galvanises
  enthusiasm/ideas/effort
• Scope across the business, not cherry picking
• Integration not big CSR team, part of
  everyones job and objectives
• Innovation must be seen to drive business
  forward, new products (cotton, fleece), new
  services (home)
• Partnership Oxfam, WWF, Groundwork, WRAP,
  Carbon Trust, Supplier Exchange