MDG 7: Ensure Environmental Sustainability

Compass Group:

Reducing food miles and carbon emissions in the supply chain

For contract catering provider Compass Group, reducing the amount of ‘food miles’ within its business makes sense from both a commercial and environmental perspective. This year, the company has successfully implemented improved logistics models to reduce the amount of deliveries required to each site on a daily basis by consolidating all the volume into a ‘one stop shop’. For example, in Ireland, Compass Group has removed about 2.2 million kilometres from its deliveries, saving 2,000 tonnes of CO2 per annum. In France, the company has reduced delivery kilometres by 20% since 2002 and, in the United Arab Emirates, the new logistics platform is expected to reduce deliveries by around 600,000 kilometres this year.

In 2009, in conjunction with key UK clients, Compass Group also participated in the Supply Chain module of the Carbon Disclosure Project (CDP) which is designed to measure carbon risks and liabilities through the supply chain. Feedback from this programme will be used to refine the company’s environmental strategy in relation to the supply chain and further collaborate with suppliers to achieve environmental efficiencies in day-to-day operations.

National Grid:

Working with governments and regulators to drive positive changes in the energy markets

After mapping its core activities against the Millennium Development Goals, international electricity and gas company National Grid identified MDG 7 as the area where it should focus to have a real impact. Within the company’s own operations across the UK and northeastern US, National Grid has set a target to reduce its emissions by 80% by 2050, with an interim target of 45% by 2020. Reducing carbon dioxide emissions from its generating plant in the US and methane emissions from its gas pipelines are key priorities.

The company is also promoting energy efficiency. In the US, for example, National Grid’s 3% campaign encourages customers to reduce energy consumption by 3% a year for the next ten years. Looking to the future, in the UK, National Grid has succeeded in decoupling energy revenue and demand meaning that revenue is no longer tied to the amount of energy transmitted, and is looking to do the same where it can in the US.

However, National Grid’s environmental efforts go well beyond its own operations. The company is also playing a sector-leading role by working with governments and regulators to define the market mechanisms of the future. By working closely with government in the regions where it operates, National Grid hopes to drive positive changes in market mechanisms to encourage investment in renewable energy. In the area of reporting, the company is also leading the way by piloting the new World Resources Institute (WRI) Scope 3 reporting guidelines. These aim to enable companies to determine where the greatest greenhouse gas reduction activities are in their value chain.