1. IPL Pilot of Asda’s Sustain and Save Exchange (SSE) Resource Saver Tool

2. Overview The Asda Sustain & Save Exchange (SSE) is a key project funded by Asda and is designed so supplier engagement is driven by our traders. By the end of 2013 every food supplier will be invited to join and there are currently nearly 850 members across Fresh, Chilled and Frozen food categories. It aims to use the lens of sustainability to help you find efficiencies to lower your environmental impact while reducing your costs. The Resource Saver is a key component that enables toy to better understand your opportunities. Where an opportunity has been identified it is split into the following 3 sections: 1.Quick Wins (QW) – Low/No cost initiatives 2.Business Process Improvement (BP) – improvements for existing equipment 3.Structural Investments (SI) – new, more efficient equipment

3. The Resource Saver Tool

4. The Pilot The pilot started in January 2014 in Spade Lane with the objective of assessing the Resource Saver Tool. The assessment was run by the site’s SHE Administrator, Carl Leader and the ‘Green Team’ with the support of the local Senior Management Team The first step was to benchmark the site against other sites in the Produce Industry and also the wider Food Industry. The benchmarking was conducted against companies that the Sustain and Save Exchange have in their program. Recommendations were then taken from the assessment tool to form the basis of projects on the site. Ideas were then taken from the 2 Degrees Network on the SSE. Some projects were already in place prior to the pilot. However these have been included as many were taken from the 2 Degrees Network. Although 3 months is a short period over which to assess the program we are able to draw conclusions from the results so far. Summary of Results Appendix 1 shows the results of the benchmarking against the Produce and wider Food Industry. They show that Spade Lane was behind the average for both industries but some way above the worst. The main areas for improvement were found in the Quick Wins category. Appendix 2 summarises the projects that were implemented and the savings that were generated. Appendix 3 shows the re-benchmarking of Spade Lane. It shows that they have made progress compared to the initial benchmarking and also generated cost savings. The opportunities for further improvement will be found in energy reduction (cooling, heating and machinery). These mainly fall into the Business Processes and Structural Investment categories. The Spade Lane Pilot

5. Conclusion The benchmarking tool is both extremely useful and free. If the site management teams are both committed and honest with themselves it is a free alternative to employing expensive environmental consultants to recommend similar projects. The pilot has demonstrated significant improvements from an environmental viewpoint. Without sub-metering many of the electrical savings can only be estimated and cannot be measured. Opportunities for overhead savings were identified however some of these would require a CAPEX. Therefore a Return on Investment would need to be calculated to prioritise the projects. The tool would provide little value to sites that achieve upper quartile status in their benchmarking assessment. Recommendations All Quick Wins from the Resource Saver Pilot to be included into Spade Lanes EPIP’s (Environmental Performance Improvement Plan’s) and then assigning to stakeholders locally. All IPL sites should be benchmarked using the Resource Saver Questionnaire. An improvement program should be implemented for all sites falling into the lower quartile of their industry. IPL’s high volume strategic vendors should be required to benchmark their sites and implement improvement plans if they fall into the lower quartile of their industry. All new IPL sites (new construction) should be compliant with the majority of the questions in the Resource Saver Tool. Include a slide in the vendor conference. The Spade Lane Pilot

6. Appendix 1 Total SSE Score QWBPSICombined Score Category SSE Member (highest company score) 87%86%59%77%Meat & Fish Spade Lane 49%32%23%35%Produce IPL 44%25%21%30%Produce SSE Member (lowest company score) 17%34%5%19%Bakery Category Score QWBPSICombined Score Category SSE Member (highest company score) 93%78%53%75%Produce Spade Lane 49%32%23%35%Produce IPL 44%25%21%30%Produce SSE Member (lowest company score) 44%18%9%23%Produce QW – Quick WinsBP – Business ProcessesSI – Structural Investment

7. What has been done so far Appendix 2 Initatives Complete Start DateInitiative Whos idea? Benefits Cost of implimentation Savings (yr) 01/05/2012 TRIAD Refrigeration System - To shutdown the refrigeration plant everyday to save on electricity consumption. IPL Save 1162.5w/hr the system is shut down. With our average cost per unit at 7.6p the predicted saving was £58,464 per year (based on 4hrs shut down per day). With quality not being affected, the shutdown time increased, which shows savings up to £100,000 per year. est. £20,000 - for system & installation est. £60,000 - £100,000 18/06/2012 Awareness Signs - To display signs next to light switches and air-conditioning controls to remind users to switch off when not required. SSE Equipment (i.e. PC's, Air-Con, Lights, TV's) are now switched off when not in use. This reduces waste energy consumption and displays compliance within the team. £10 - for signsest. £3,000 01/10/2012 Pallet Lid Recycling - To re-use lids from inload pallets as 'pallet dividers' for finished product. IPL Reduction in labour costs from not bailing pallet lids, reduced packaging costs from recycling existing material instead of purchasing additional packaging. £0est. £3,500 01/03/2012 Reduce Label Sizes - To use smaller labels in the label room for printing batch numbers which are attached to job sheets. IPL Cost saving of £4.80/1000 labels plus additional saving from eliminating ribbon usage. Ongoing saving is at least £250 per year. £0est. £250 27/05/2011 Shrinkwrap Reduction - To install a stretch wrap machine in order to reduce packaging usage and reduce manual handling involved in this task. Supplier Reduced shrink wrap usage by 84%, saving £21,600 per year on materials, plus additional H&S benefit. £4,000 - for stretch wrap m/c £21,600 01/05/2012 Improve waste segregation - To display signs on all waste recepticles to improve compliance of waste segregation and ensure we receive the maximum price from our waste carrier for recyclable materials. IPL 43% reduction in general waste saving £9,972. This also generated profit on recycling plastic waste of £11,315. £50 - for signs£21,287 Initatives on the Horizon start dateInitiative Whos idea? Potential Benefits Cost of implimentation Potential Savings (yr) After site layout confirmed Replacement of current lighting system with the most energy efficient fittings (i.e. LED) SSE Improved lighting of areas & reduction in electricity consumption. These benefits will improve compliance to H&S and BRC requirements, but also deliver a considerable saving YOY. TBC - dependant on area to be covered After launch of Sharepoint Paperless Training System - implement electronic scanning system using tablets (e.g. iPads) to deliver and record training on the shop floor. IPL Reduction in off-line hours. Reduction in paper, ink and electricity usage on printers. Reduction in administration (i.e. filing) needs, thus increasing service delivered from the training dept. *already confirmed with BRC that this is compliant to their standards. est. £1,500£10,000

8. Appendix 3 Total SSE Score QWBPSICombined Score Category SSE Member (highest company score) 87%86%59%77%Meat & Fish Spade Lane 63%32%24%40%Produce IPL 49%25%21%32%Produce SSE Member (lowest company score) 17%34%5%19%Bakery Category Score QWBPSICombined Score Category SSE Member (highest company score) 93%78%53%75%Produce Spade Lane 63%32%24%40%Produce IPL 49%25%21%32%Produce SSE Member (lowest company score) 44%18%9%23%Produce