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

People worry more, trust less, know more, are confronted more, expect more...

BUT, consumers won’t compromise…… Trust Innovation Value Service Quality

and the evidence that change is needed is now indisputable……

M&S well positioned to take advantage of these trends…. 100% own brand = 100% control Competing on value not lowest price It’s a part of our brand – Trust, Innovation Good supply partners with similar values Customers want to know more

So what did we do?

Know your impacts

Talk to stakeholders

Talk to customers How important do you think it is that M&S is committed to meeting their social, ethical and environmental responsibilities? % Extremely Important Regular food shopper Occasiona l food shopper Non food shopper Regular clothes shopper Occasiona l clothes shopper Non clothes shopper

Just a few years later…

What? – 100 point, 5 year, £200m strategic plan CLIMATE WASTE SUSTAINABLE RAW MATERIALS FAIR PARTNER HEALTH

How?  Brainstorm –> 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’

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

7. Green electricity 175Gwh of ‘renewable’ electricity already sourced, saving 55,000t of CO 2 Key 100% renewable 85% good quality CHP 100% fossil fuel

8. Anaerobic digestion AD Farmer’s day engaging 20 M&S Farmers and suppliers

9. Green stores Bournemouth, Pollock, Galasheils All effective measures now integrated into ‘M&S Sustainable Construction Manual’

13. Green transport Trial of ‘Tear-drop’ trailer, improving fuel consumption by 20% and +10% load space.

22. Green factories Contract signed with MAS Holdings, Sri Lanka, Westbridge UK, and more to come in other countries….

27. Footprint campaign WWF ‘One Planet Living’ carbon calculator co- developed

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 they’ve finished with them

34. Construction Waste 75% construction waste from store developments sent for recycling. On site in approx. 60 stores

38. Packaging (sustainable raw materials) Recycled denim packing box trial.

40. Packaging (WRAP logos) WRAP symbols on all food products by end year

45. Carrier Bags (reduction) “Do you need a bag?” Campaign launched

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

49. Organic food Launched first ever range of Organic, nut free Easter Eggs, March ‘07.

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.

57. Wood 90% of the Spring ’07 Garden Furniture range made from FSC certified wood.

60. Polyester 400,000 garments sold in Autumn ’07 across Womens and Menswear…. …From 4.5m recycled bottles!

63. Free range Fresh Geese, Turkey and Duck converted to 100% Free Range by end 07

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

89. Eat Well £1.3BN sales ’06/07, +14% on LY. 30% of food sales. 1,300 products.

90. Labelling Launched in Jan ’07, rolling out across all FSA categories.

97. Healthy eating assistants 1,500 assistants trained between January and May ’07.

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

Leader on labour standards  More in-country resources  Networks of support for suppliers  Unannounced audits  Worker helpline  Responsible buying

82. Supplier Exchange M&S Supplier Exchange launched. Information provider. Sharing best practice.

570 Store and Head Office ‘Plan A Champions’ appointed. 85. Plan A Champions

Taking Fairtrade into the mainstream…

80. Fairtrade food Conversion to 100% Fairtrade sugar in Jams and Conserves.

81. Fairtrade Clothing 20 million Fairtrade garments over 12 months £100m RSV. 10% of the M&S cotton business.

Lessons from Plan A – year 1

Know your customer 10% green crusaders ----> Plan A as whole 30% if its easy -----> M&S brand short hand for doing their bit, Oxfam, hangers, bags 35% what’s the point? -----> Demonstrate part of whole e.g. carbon calculator 25% not my problem > Diminishing group, driven by poverty, some issues resonate e.g. animal welfare

Summary  Great rally cry – strategy galvanises enthusiasm/ideas/effort  Scope – across the business, not cherry picking  Integration – not big CSR team, part of everyone’s 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