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Part 1: Energy JTI UK’s guide on how to become a sustainable wholesaler
Paul Hill
Alongside its own efforts to globally become carbon neutral by 2030 and net zero by 2050, JTI UK has been supporting wholesalers to implement sustainable practices in the form of a four-part sustainability series.
For part 1 of the series, JTI UK, as well as the Scottish Wholesale Association (SWA), focused on energy; advising wholesalers on the key actions they can implement within their businesses, relating to lighting and heating, refrigeration, alternative energy sources and water usage.
Energy savings are the bread and butter of any sustainability plan and once a wholesale operation has re-evaluated and managed its energy sources in a more sustainable way, it will allow the business to continue on a greener path and implement more changes.
JTI UK EXPERT VIEWPOINT
Ruth Forbes
Sustainability director, JTI UK
We are committed to identifying, understanding and reducing the environmental impact of our business activities. We also understand how important it is to support wholesalers as they become more sustainable. It has never been more important for companies to think and act sustainably, not just for the good of the industry, but for society.
INDUSTRY EXPERT VIEWPOINT
Ylva Haglund
Head of sustainability & engagement, SWA
Ensuring our sector is using energy efficiently is a crucial step on the net-zero journey and is an opportunity for members to remain competitive during this difficult time. As part of our current project, the SWA will work with members and carbonreduction specialists to establish a baseline on energy usage and carbon emissions from our buildings.
o Only 7% of wholesalers said sustainability wasn’t a priority for their business.
o 93% of wholesalers want more support from suppliers on sustainability.
o One of the most popular sustainability initiatives currently being carried out by wholesalers is energy saving measures (94.3%).
o Gather employee suggestions – a company-wide survey is a great way to gather suggestions from the people who know your operation best.
o Make the switch – replace light switches with motion sensors and install LED lightbulbs and display screens in depot.
o Consider renewable generation – think about the return on investment if you have solar panels installed.
o Changing regulation – make sure you’re up to date with the latest legislation.
o Re-evaluation – keep checking your energy sources for potential improvements.
o Supply chain – check your suppliers hold the same sustainable values as your business.
To see what JTI UK is doing to improve its environmental sustainability, wholesalers can talk to their JTI UK Business Adviser or visit jti.com/uk/sustainability
Part 2: Waste Management
For part two of the series, JTI UK supported wholesalers with waste-management tips, including input from the Federation of Wholesale Distributors (FWD). JTI UK advised wholesalers on the key actions they can implement within their businesses relating to waste-reduction measures, reusing procedure and recycling.
There is a huge appetite for change in the industry, and waste management is vital to any sustainability plan. Having an eco-friendly and efficient waste strategy in place is a key step towards sustainability for any wholesale operation.
By 2023, JTI UK plans to no longer send any operational waste to landfill and expects its suppliers to do the same by 2025.
JTI UK EXPERT VIEWPOINT
Ruth Forbes
Sustainability director, JTI UK
We’re serious about protecting the environment, which is why, by 2023, we plan to no longer send any of our UK operational waste to landfill. In fact, we aim to reach a 75% recycling rate by 2030. But we know that our role in sustainable waste management goes beyond that. We’re keen to support wholesalers with their own efforts to reduce waste.
INDUSTRY EXPERT VIEWPOINT
David Visick
Director of communications, FWD
Waste reduction is an issue where the entire supply chain has to work together, and wholesalers want to be leading that collaboration. Some very serious discussions are needed about how much food and packaging we produce, where it comes from, where it goes to, and how much avoidable wastage is currently built into our offer to consumers.
o 64.2% cited cost saving as the biggest business value they’ve seen from their sustainability investments.
o The most popular sustainability initiative currently being carried out by wholesalers is recycling (98.1%).
o 64% of independent/convenience retailers want more sustainable point-of-sale material.
o Create a retailer recycling dropoff – allowing retailers to return wholesale packaging is a great way to demonstrate your sustainability credentials to customers.
o Digitise your paperwork – from invoices to payslips, going digital both reduces paper waste and makes record-keeping easier.
o Review internal recycling processes – make sure recycling bins are easily accessible and ensure all material is properly disposed of.
o Staff training – you’ll need to make sure all employees are following procedure.
o Getting retailer buy-in – make sure retailers are aware of your recycling drop-off launch and why it’s a good idea for them to bring packaging back.
o Collaboration with contractors – speak with your waste contractors about tricky waste streams to see what the most responsible disposal method is.
To learn about the Federation of Wholesale Distributors, and its work on sustainability, visit fwd.co.uk/current-issues/environment
Part 3: Transport
For part three of the series, JTI UK, as well as the SWA, focused on transport; advising wholesalers on the key actions they can implement within their businesses, relating to delivery vehicles, business travel and employee commutes.
There is a huge appetite for change in the industry, and transport is one of the key areas where change is easy to measure, relatively easy to implement and can add tangible benefit to a wholesaler’s sustainability credentials.
The SWA, like JTI UK, has already taken measures to improve its transport sustainability and has been invited to join the Scottish government’s new Zero
Emission Truck Taskforce, where it is working in partnership to explore opportunities and co-design creative solutions for zero-emission trucks.
JTI UK EXPERT VIEWPOINT
Ruth Forbes
Sustainability director, JTI UK
Transport is an important area where sustainability improvements can be made, so we’ve invested in hybrid vehicles and charging points for our team of Business Advisers, who visit key accounts, wholesalers and independent stores each day. Fortyfour per cent of our Business Adviser team now drive hybrid cars, and by the end of 2023 this will reach 100%.
INDUSTRY EXPERT VIEWPOINT
Ylva Haglund
Head of sustainability & engagement, SWA
In 2021, SWA launched its Decarbonisation of the Wholesale Industry project. Our first priorities were the creation of a sector Fleet Emissions Baseline report and Emissions Reductions Roadmap. The Roadmap provides information on the options available to the sector in tackling vehicle emissions, starting with improving fuel efficiency.
FAST FACTS:
o From 2024, JTI UK plans to start transitioning its salesforce fleet to fully electric cars, which, by 2030, would save 776 tonnes of CO2e emissions per year.
o The SWA is aiming for net-zero vehicle emissions for the Scottish wholesale industry fleet by 2045.
o In 2023, JTI UK intends to roll out 1:1 eco-driver training to its salesforce.
o Maximise your fuel efficiency – whether it’s through switching your vehicles or training your drivers, targeting fuel efficiency will reduce your emissions and cut costs simultaneously.
o Utilise cage deliveries – this will help avoid the use of single-use plastic in shrink wrapping.
o Review order and delivery frequency – consider whether it is possible to hold more stock.
THREE CHALLENGES WHOLESALERS FACE ON SUSTAINABLE TRANSPORT SOLUTIONS:
o Implementing driver training – it’s important to invest time ensuring drivers fully understand the benefits of fuel-efficient driving.
o Cost of fleet upgrades – improving fuel efficiency requires investment but will save in the long-term.
o Working with external stakeholders – make sure customers are fully aligned with any changes, such as digital invoicing and cage deliveries.
To learn about the Scottish Wholesale Association, and its work on sustainability, visit scottishwholesale.co.uk/services/sustainability
Part 4: Social & Ethical Performance
For part four of the series, JTI UK, as well as the FWD, focused on social sustainability; advising wholesalers on the key actions they can implement within their businesses, relating to community activity.
Social sustainability is an important part of JTI
UK’s responsible business approach. The company is committed to addressing social and environmental challenges within the communities it operates in. JTI
UK works in long-term partnerships with charities that promote inclusion for less-advantaged adults or protect the environment.
Volunteering is embedded in the company’s culture and JTI UK empowers employees to choose their own organisations to support. Since 2008, JTI UK employees have volunteered 37,687 hours of their time to help others, contributing to their local communities.
JTI UK EXPERT VIEWPOINT
Tim Heathorn
Wholesale convenience & gas sector manager, JTI UK
At JTI UK, community investment is an important part of our sustainable business approach. As a company, we contribute to the communities in which we operate, and we are committed to addressing social and environmental challenges. We believe that everyone should have access to resources and the opportunity to reach their potential.
INDUSTRY EXPERT VIEWPOINT
David Visick
Director of communications, FWD
Wholesale is entwined with the communities it serves, through convenience stores, pubs and restaurants, and services such as care homes and schools. Whatever communities want, we deliver, and as the public’s attitudes drift towards sustainability, so do our members’. We don’t expect to see wholesalers using the economic crisis to let standards slip.
FAST FACTS:
o Since 2008, JTI UK has donated £40m to charitable causes.
o JTI UK relaunched its Volunteering Policy this year. This included increasing its employee volunteering allowance to 50 hours (six days+) per employee, per year.
o Since 2008, JTI UK employees have volunteered 37,687 hours of their time to local communities.
o Communicate with customers and key stakeholders to research the most pressing community issues.
o Collaborate with expert partners and co-create initiatives to tackle key social issues.
o Share – spread the word to encourage more people to get involved and work together.
THREE WAYS WHOLESALERS CAN BE MORE SOCIALLY SUSTAINABLE:
o Impact measurement – set targets, it’s vital to understand the difference you are making.
o Employee engagement – your programme is more likely to be a success if your employees are behind it.
o Making changes – don’t be afraid to try new things to improve your sustainability performance.
