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Kingfisher- Net Positive
Network Webinar




                           1
webinar today

1. How this webinar will work
2. Introductions
3. Why should businesses strive to be restorative? (10
   mins)
4. Kingfisher- Net Positive (25 mins)
5. Q+A (20 mins)
6. What’s next?




                                                         2
Please send your
                                                    questions in
                                                    throughout the
                                                    webinar from the
                                                    question box. We will
                                                    try to get through as
                                                    many of your
                                                    questions as possible
                                                    throughout the hour

                                                    **don’t raise your
                                                    hand, type a question




Any problems email Kester at k.byass@forumforthefuture.org


                                                                     3
who are we?
Zoe Le Grand
Senior Sustainability Advisor
Forum for the Future

Strategic sustainability advice provider and
restorative business enthusiast.




                                   Nick Folland
                                   Group Corporate Affairs Director with
                                   responsibility for leading Net Positive
                                   Kingfisher

                                   Net Positive devotee and committed cyclist




                                                                                4
some questions for you….

• How could your company have a net positive impact?
• What would be the main challenges?
• What impact would it have on your company, internally
  and externally?




                                                          5
why should businesses seek to be
restorative?




pay back our environmental overdraft….

                                    6
to make matters worse…….




                           7
business response…

Nothing




 Neutral             Positive

                                8
leading business response…




                             9
It’s good for the planet…
but what’s in it for them?

• Mandate for radical innovation
• New relationships with customers
• Leadership




                                     10
in summary…

• Need to pay off our existing environmental overdraft and
  build up natural capital
• Natural resources will only become more constrained as
  the population grows
• Most businesses won’t be doing anything
• Learn from your social sustainability approach and seek
  to leave the environment better then when you found it
• It’ll pay off through radical innovations, new relationships
  with customers and leadership


                                                            11
Net Positive
  Nick Folland

  Kingfisher Corporate Affairs
  Director: Net Positive
Learning from the experts
CREATING THE LEADER
Responsibly sourced timber

  Percentage of timber by volume sold from proven
  well-managed forests or recycled sources




        86% - Proportion of Group timber
 50% - Proportion of Group FSC-certified timber
Reducing Energy




• 21% - how much we’ve reduced our energy intensity in the past five years
• • 60% - how much of our energy footprint comes from electricity (mainly lighting
    stores)
• 1/3 - how much we’ve cut store energy consumption where LED lights introduced
• 2,513 Million KwH – amount of energy our customers saved in 2011 using our
    products and services
• £10 Million - Kingfisher’s investment in our Future Homes business in 2011
Re-thinking and Innovation
                 Product / Design / Business models


 “Maybe in the future,
  retailers like B&Q
  won’t sell anything
      anymore?”
                Ian Cheshire,
         Group CEO Kingfisher




• 20% - Proportion of Group
  sales from products with
  eco credentials in 2011
Working with our communities




  • £1.77 Million    - Contributions to Community and charity projects made
    in 2011
  • 29,000    - Hours spent by employees volunteering in their local
    communities in 2011
Our Net Positive journey
Dashboard
Foundations in detail



                               TIMBER                                       ENERGY                                 INNOVATION                                  COMMUNITIES
POSITIVE
 IMPACT




                                                                                                                 Net Positive Impact Measure for              Net Positive Impact Measure for
   NET




                      Net Positive Impact Measure for Timber        Net Positive Impact Measure for Energy
                                                                                                                 Innovation                                   Communities
 TARGET




                     100% responsibly sourced timber and           38 TWh of energy saved                       1,000 products with closed-loop               4,000 local community        NP THRESHOLD
  2020




                     paper in all our operations                   for customers, equivalent to the energy      credentials                                   partnerships
                                                                   used in 2.3 million UK homes a year

                                                                   Advice for all customers on energy saving    10% sales from innovative (‘best in class’)
                     100% responsibly sourced timber
                                                                   and eco products                             eco products and services

                     FSC for all tropical hardwood
                                                                   All energy-using products to meet best       50% sales from products and services with
                                                                   practice on energy                           eco credentials
                     Strategic sourcing
 FOUNDATIONS




                                                                   25% reduction in absolute carbon footprint   All ranges improve sustainability rating
                     Zero products linked
                     to tropical deforestation
                                                                   Marketing to promote sustainable             Sustainability designed into own-brand
                                                                   consumption                                  product ranges


                                                                   45% reduction in property energy intensity   Develop & launch alternative
                                                                                                                business models

                                                                   50% reduction in property carbon intensity
                                                                                                                Eco criteria and learning for store
                                                                                                                construction and refurbishment


                                                                                                                Sustainability accounting to calculate the
                                                                                                                full value of sustainability
               26
               KEY

                      0-25%                  26-50%            51-75%               76-100%
Foundations

                                                                     SUPPLIERS
              EMPLOYEES                                                                                            ENVIRONMENT
                                                                    & PARTNERS
      Sustainability integrated into performance             All own-brand vendors to meet our ethical and    Zero waste to landfill
      management                                             environmental standards

                                                                                                              20% reduction in transport CO2
      Sustainability development programme for               Carbon and water reduction for top 100 vendors
      managers
                                                                                                              Indirect transport CO2 reductions
                                                             GNFR sustainability standards
      Customer advisors trained
      on sustainability advice
                                                                                                              Green travel
                                                             Preferred retail partner for governments and
                                                             stakeholders on sustainable living
      Employee engagement
                                                                                                              Own water footprint
      on sustainability
                                                             Leadership in SRI indexes and CR rankings
                                                                                                              All water-using products to meet best practice on
      Best practice on diversity and equality
                                                                                                              water saving
                                                             Implementation of code of conduct
                                                             and group governance
      20% reduction in employee accident rate
                                                                                                              Chemical policy adhered to


      Customer and contractor health and safety
                                                                                                              Sustainability for own-brand packaging


      Employee engagement surveys for all
                                                                                                              Construction timber 100% responsibly sourced


                                                                                                              Construction waste reduced by 75%


                                                                                                              Construction projects to enhance biodiversity
This part of the scorecard measures progress across the three
other areas where Kingfisher has made sustainability
                                                                                                              Peat reduction
commitments. Measurement is based on aggregated scores, which
help us rate our progress towards these targets.

27
KEY

      0-25%                 26-50%                 51-75%     76-100%
NET POSITIVE IS GOOD
                FOR OUR BUSINESS

                                                                       INCREASING
      RISK              FINDING NEW         BOOSTING THE                    THE
    MITIGATION             MARKETS             TOP LINE                  CUSTOMER
                                                                           BASE
£45-60m to be saved    €70bn new market     Sales of £2.2bn p.a.     Transfer skills

securing sustainable   in-home energy       in sales from products   to create next
timber supply          efficiency by 2020   with eco credentials     generation DIY
                       across key regions
It’s already helping our bottom-line




- £2.2 billion sales of products with eco credentials (20% of total sales)
- Estimate over £18.5 million of savings achieved from efficiencies in
  utilities consumption (E&Y study, 2011)
- B&Q’s £2.9m investment in lighting efficiency predicted to save £0.9
  million annually
- In France our Operating companies cut waste costs by €740,000 in
  2011/12
- Our overall recycling rate has improved 40% since 2006

                                                                             29
We don’t have all the answers
Some of the Challenges we’re facing

          Putting your money where your mouth is – plywood




    Not being able to find the wood for the trees –
    FSC and tracing responsibility




            Now developing new tools to measure
            progress – 1,000 products with Closed Loop
            credentials by 2020.
What next?
Any Questions?




   Insert NP logo
some questions for you….

• How could your company have a net positive impact?
• What would be the main challenges?
• What impact would it have on your company, internally
  and externally?




                                                          34
what’s next for the Forum Network?
Webinars

•   12 February – Sustainability & Brands, with Sally Uren
•   19 March – Future casting, with Peter Madden

Network events
• 31st January, Delhi – Innovation Nation at Delhi Sustainable Development Summit
Launching our publication celebrating India’s success stories in sustainable innovation,
and encouraging them to be scaled up across the country and worldwide.

• 13th March, London – Is your business wired for change?
Exploring the role of digital and communications technologies in enabling radical system
change, and what it means for you and your organisation .

•   For more information or to register for our events please contact k.byass@forumforthefuture.org




                                                                                                      35
thanks!

Nick Folland | nick.folland@kingfisher.com
Zoe Le Grand | z.legrand@forumforthefuture.org | @zlegrand

forumforthefuture.org | registered charity no. 1040519




                                                             36

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Kingfisher net positive webinar

  • 2. webinar today 1. How this webinar will work 2. Introductions 3. Why should businesses strive to be restorative? (10 mins) 4. Kingfisher- Net Positive (25 mins) 5. Q+A (20 mins) 6. What’s next? 2
  • 3. Please send your questions in throughout the webinar from the question box. We will try to get through as many of your questions as possible throughout the hour **don’t raise your hand, type a question Any problems email Kester at k.byass@forumforthefuture.org 3
  • 4. who are we? Zoe Le Grand Senior Sustainability Advisor Forum for the Future Strategic sustainability advice provider and restorative business enthusiast. Nick Folland Group Corporate Affairs Director with responsibility for leading Net Positive Kingfisher Net Positive devotee and committed cyclist 4
  • 5. some questions for you…. • How could your company have a net positive impact? • What would be the main challenges? • What impact would it have on your company, internally and externally? 5
  • 6. why should businesses seek to be restorative? pay back our environmental overdraft…. 6
  • 7. to make matters worse……. 7
  • 10. It’s good for the planet… but what’s in it for them? • Mandate for radical innovation • New relationships with customers • Leadership 10
  • 11. in summary… • Need to pay off our existing environmental overdraft and build up natural capital • Natural resources will only become more constrained as the population grows • Most businesses won’t be doing anything • Learn from your social sustainability approach and seek to leave the environment better then when you found it • It’ll pay off through radical innovations, new relationships with customers and leadership 11
  • 12. Net Positive Nick Folland Kingfisher Corporate Affairs Director: Net Positive
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  • 14. Learning from the experts
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  • 20. Responsibly sourced timber Percentage of timber by volume sold from proven well-managed forests or recycled sources 86% - Proportion of Group timber 50% - Proportion of Group FSC-certified timber
  • 21. Reducing Energy • 21% - how much we’ve reduced our energy intensity in the past five years • • 60% - how much of our energy footprint comes from electricity (mainly lighting stores) • 1/3 - how much we’ve cut store energy consumption where LED lights introduced • 2,513 Million KwH – amount of energy our customers saved in 2011 using our products and services • £10 Million - Kingfisher’s investment in our Future Homes business in 2011
  • 22. Re-thinking and Innovation Product / Design / Business models “Maybe in the future, retailers like B&Q won’t sell anything anymore?” Ian Cheshire, Group CEO Kingfisher • 20% - Proportion of Group sales from products with eco credentials in 2011
  • 23. Working with our communities • £1.77 Million - Contributions to Community and charity projects made in 2011 • 29,000 - Hours spent by employees volunteering in their local communities in 2011
  • 24. Our Net Positive journey
  • 26. Foundations in detail TIMBER ENERGY INNOVATION COMMUNITIES POSITIVE IMPACT Net Positive Impact Measure for Net Positive Impact Measure for NET Net Positive Impact Measure for Timber Net Positive Impact Measure for Energy Innovation Communities TARGET 100% responsibly sourced timber and 38 TWh of energy saved 1,000 products with closed-loop 4,000 local community NP THRESHOLD 2020 paper in all our operations for customers, equivalent to the energy credentials partnerships used in 2.3 million UK homes a year Advice for all customers on energy saving 10% sales from innovative (‘best in class’) 100% responsibly sourced timber and eco products eco products and services FSC for all tropical hardwood All energy-using products to meet best 50% sales from products and services with practice on energy eco credentials Strategic sourcing FOUNDATIONS 25% reduction in absolute carbon footprint All ranges improve sustainability rating Zero products linked to tropical deforestation Marketing to promote sustainable Sustainability designed into own-brand consumption product ranges 45% reduction in property energy intensity Develop & launch alternative business models 50% reduction in property carbon intensity Eco criteria and learning for store construction and refurbishment Sustainability accounting to calculate the full value of sustainability 26 KEY 0-25% 26-50% 51-75% 76-100%
  • 27. Foundations SUPPLIERS EMPLOYEES ENVIRONMENT & PARTNERS Sustainability integrated into performance All own-brand vendors to meet our ethical and Zero waste to landfill management environmental standards 20% reduction in transport CO2 Sustainability development programme for Carbon and water reduction for top 100 vendors managers Indirect transport CO2 reductions GNFR sustainability standards Customer advisors trained on sustainability advice Green travel Preferred retail partner for governments and stakeholders on sustainable living Employee engagement Own water footprint on sustainability Leadership in SRI indexes and CR rankings All water-using products to meet best practice on Best practice on diversity and equality water saving Implementation of code of conduct and group governance 20% reduction in employee accident rate Chemical policy adhered to Customer and contractor health and safety Sustainability for own-brand packaging Employee engagement surveys for all Construction timber 100% responsibly sourced Construction waste reduced by 75% Construction projects to enhance biodiversity This part of the scorecard measures progress across the three other areas where Kingfisher has made sustainability Peat reduction commitments. Measurement is based on aggregated scores, which help us rate our progress towards these targets. 27 KEY 0-25% 26-50% 51-75% 76-100%
  • 28. NET POSITIVE IS GOOD FOR OUR BUSINESS INCREASING RISK FINDING NEW BOOSTING THE THE MITIGATION MARKETS TOP LINE CUSTOMER BASE £45-60m to be saved €70bn new market Sales of £2.2bn p.a. Transfer skills securing sustainable in-home energy in sales from products to create next timber supply efficiency by 2020 with eco credentials generation DIY across key regions
  • 29. It’s already helping our bottom-line - £2.2 billion sales of products with eco credentials (20% of total sales) - Estimate over £18.5 million of savings achieved from efficiencies in utilities consumption (E&Y study, 2011) - B&Q’s £2.9m investment in lighting efficiency predicted to save £0.9 million annually - In France our Operating companies cut waste costs by €740,000 in 2011/12 - Our overall recycling rate has improved 40% since 2006 29
  • 30. We don’t have all the answers
  • 31. Some of the Challenges we’re facing Putting your money where your mouth is – plywood Not being able to find the wood for the trees – FSC and tracing responsibility Now developing new tools to measure progress – 1,000 products with Closed Loop credentials by 2020.
  • 33. Any Questions? Insert NP logo
  • 34. some questions for you…. • How could your company have a net positive impact? • What would be the main challenges? • What impact would it have on your company, internally and externally? 34
  • 35. what’s next for the Forum Network? Webinars • 12 February – Sustainability & Brands, with Sally Uren • 19 March – Future casting, with Peter Madden Network events • 31st January, Delhi – Innovation Nation at Delhi Sustainable Development Summit Launching our publication celebrating India’s success stories in sustainable innovation, and encouraging them to be scaled up across the country and worldwide. • 13th March, London – Is your business wired for change? Exploring the role of digital and communications technologies in enabling radical system change, and what it means for you and your organisation . • For more information or to register for our events please contact k.byass@forumforthefuture.org 35
  • 36. thanks! Nick Folland | nick.folland@kingfisher.com Zoe Le Grand | z.legrand@forumforthefuture.org | @zlegrand forumforthefuture.org | registered charity no. 1040519 36