Reckitt Benckiser Carbon Reduction Target

1st November 2007 Reckitt Benckiser targets a new standard in carbon reduction 20% reduction in the Company's Total Carbon Footprint by 2020 Reckitt Benckiser Group plc today launches Carbon 20, a major programme to reduce its Total Carbon Footprint and thereby its impact on climate change. The approach is unique and different in not just targeting the easy wins of energy reduction in factories or travel, but the much larger carbon emissions embedded in raw and packaging materials from suppliers and in consumers' use and disposal of its products. * Carbon 20 is a programme to reduce Reckitt Benckiser's Total Carbon Footprint by 20% per unit by 2020. The 20% target (on a current base of circa 15m tonnes of CO2 equivalents per annum) by 2020 is equivalent to removing the carbon impact of roughly 1m cars. * Reckitt Benckiser is the first major FMCG company to tackle its Total Carbon Footprint. This `cradle to grave' approach, across the entire product life cycle, is pioneering because it measures not only the carbon impact of raw and packaging materials, manufacturing, logistics and distribution, but also consumer use of products, where the greatest carbon impact can occur. * Progress will be measured by independent experts, verified by third parties and reported annually. The Company has and will continue to work with external experts, including joining the Carbon Disclosure Project's new Supply Chain initiative, to implement a robust measurement system. Bart Becht, Chief Executive Officer of Reckitt Benckiser plc, said: "Carbon 20 is right for our business as well as for society. It is an ambitious but achievable target and Reckitt Benckiser has a proud track record of delivering its targets. This is a long-term commitment to tackle the real impact of our products' lifecycle on climate change by addressing their Total Carbon Footprint, from cradle to grave. This different approach targets more than just the easy wins under our direct control like factory emissions or travel; it will require real partnership across our business and with our business partners to reduce energy consumption; and education and communication with consumers to enable them to tackle their own impact which can be the largest part, particularly where laundry or dishwashing machines are involved. "Carbon 20 will create real business benefits for us and our partners: consumers want to tackle climate change and will reward brands that offer solutions; our business partners want to help consumers while addressing their own impact; our employees and potential recruits want to work for a responsible and innovative company; and our shareholders want the sustainable growth that getting this right will provide." Paul Dickinson, CEO of the Carbon Disclosure Project commented: "The Carbon Disclosure Project welcomes all initiatives taken to reduce corporate emissions and applauds steps taken by companies to take responsibility for their emissions. We are delighted to welcome Reckitt Benckiser into the Supply Chain Leadership Collaboration, which is a key step in measuring and subsequently managing emissions generated through the supply chain. The Total Carbon Footprint includes very important stages such as the supply chain along with consumer use, both of which can play a large part in a company's emissions. In working with Reckitt Benckiser to help measure these emissions, CDP hopes to help them achieve their emissions reduction targets they are announcing today." Summary - Key Facts * Reckitt Benckiser manufactures and sells approximately 5.5 billion consumer units a year, equivalent to over 15 million units a day. * The carbon emissions associated with these products are approximately 15m tonnes of CO2 equivalents a year. This amount of CO2 equivalents is comparable to: * 4.3 million medium sized family cars * 2.7m households * The major contributors to these carbon emissions are energy consumed or embedded in the following elements of the supply and consumption chain "from cradle to grave": * Consumer use of the products, particularly where this involves using machines such as dishwashers or washing machines (50-70%) * Raw and packaging materials (30-40%) * Product and packaging disposal/recycling (3-7%) * Product manufacturing (2-6%) * Retailer operations (2-6%) * Logistics and distribution of products to retailers (1-5%) * The target of the programme is a 20% reduction per unit in the Total Carbon Footprint of Reckitt Benckiser's products by the year 2020. This reduction will be the equivalent of: * Half a million households * Nearly 1 million medium sized family cars * Major contributors to the success of Carbon 20 will be programmes to: * Educate and enable consumers to reduce energy consumption in the home when using Reckitt Benckiser products. For example, switching 50% of European households currently using 60/65 degree cycles to the "eco" or 50/55 degree cycle on the dishwasher could save 338,000 tonnes of CO2 equivalents a year, equal to the emissions of almost 100,000 medium sized family cars. * Co-operation with suppliers and trade customers to re-engineer how we make, package, distribute and sell our products to reduce or avoid energy use. For example, working with our supplier Guala to re-design our trigger sprays has avoided the use of 266,000kg of metal and 38,000kgs of plastic per year, saving the equivalent of 613 tonnes of CO2 equivalents a year. * Re-designing products to contain less materials, less energy, less packaging and less waste. For example, redesigning our European Air Wick Freshmatic packaging will save 680 tonnes of plastic packaging a year, equivalent to 2,430 tonnes of CO2 equivalents a year. * Internal programmes to reduce energy consumed, and switch to sustainable energy sourcing, in our own operations. For example moving to 40% of energy from sustainable sources would reduce our CO2 equivalent emissions by about 28,000 tonnes a year. Detailed information Total Carbon Footprint A product's Total Carbon Footprint is the total contribution in terms of carbon emissions across a product's lifecycle. It comprises far more than a single company's own direct operations and involves a range of activities and organisations across the whole supply chain and also in consumers' use (and disposal) of the product (and its packaging). Carbon 20 seeks to reduce the carbon impact of Reckitt Benckiser's products across the entire supply chain from raw and packaging materials, through production, logistics, distribution, retail sale and consumers' use of the product, and subsequent disposal of it and its packaging. How the Programme will be achieved As a first measure Reckitt Benckiser will seek to reduce carbon emissions permanently, through lasting avoidance of and reduction in energy consumption. The second measure is to replace required energy consumption with renewable energy sources and/or highly efficient conventional energy sources. Major contributors to the programme will be: * Consumer communication and information programmes to allow consumers to reduce energy (and water) consumption in the home, for example: operating domestic machines more efficiently by using lower energy cycles; removing stains with small volumes of stain removers rather than extra large volumes of detergent on high temperature (energy and water intensive) washing cycles; recycling more packaging; and, to make lower carbon impacting product choices. Lifecycle analysis shows that for many fast-moving consumer goods the biggest part of the carbon footprint can rest in their use by consumers in the home. Therefore enabling and encouraging small changes in how consumers use products can create large reductions in overall climate change emissions. This shows how vital it is to address the consumer use stage of the product lifecycle in driving a reduction of carbon emissions. e.g. That is why Reckitt Benckiser led the European detergent industries Automatic Dishwashing Save Energy and Water (www.saveenergyandwater.com) Task Force in 2006, to deliver an on-pack consumer education programme encouraging the saving of very large volumes of energy (and water) through the use of low temperature, ecological cycles on dishwashers across Europe (as opposed to higher temperature cycles). This project has since been endorsed by the European Commission's Sustainable Energy Europe campaign. In addition, Reckitt Benckiser is running campaigns informing consumers that switching the average household from dishwashing by hand to using an automatic dishwasher can save heating the equivalent of a swimming pool full of water a year, reducing both energy and water consumption. This alone can cut the energy consumption in washing dishes by up to 40%. * Co-operation with suppliers and trade customers to re-engineer how Reckitt Benckiser makes, packages, distributes and sells products to avoid and reduce energy use across the whole supply chain. e.g. working with Guala, a leading supplier of innovative packaging, Reckitt Benckiser redesigned the trigger spray for the Company's bottles of liquid cleaners, reducing the use of plastic by 38,000kgs, and avoiding the use of 266,000kg of metal each year, saving the equivalent of 613 tonnes of CO2 equivalents a year in embedded energy. * Re-design of the Company's products and packaging to use materials with lower volumes reducing `embedded energy', allowing greater reduction and recycling of packaging, and reducing logistics and distribution requirements. Products may be redesigned to allow consumers to use them with greater energy efficiency. e.g. New packaging has been developed for Airwick Freshmatic in Europe, replacing plastic blister packs with recycled and recyclable cardboard packaging saving the equivalent of 2,430 tonnes of CO2 equivalents a year in embedded energy. * Internal programmes to avoid and reduce energy use in the Company's worldwide manufacturing and commercial operations. e.g. Reckitt Benckiser has already achieved 25% energy reduction per consumer unit since 2000. If the Company now achieves a further 20% reduction, this would save the equivalent of 55,000 tonnes of CO2 equivalents a year. In addition, Reckitt Benckiser today launches a set of global `Low-Carbon Business Guidelines': a 10% reduction in air travel would save about 2,600 tonnes of CO2 equivalents a year. Offsetting not included In contrast to other companies' approaches, carbon offsetting - including the Company's own ongoing carbon offset project Trees for Change ( www.treesforchange.info) - will NOT be counted towards the Carbon 20 target. Rationale for the Programme Carbon 20 builds on the substantial progress Reckitt Benckiser has already made in reducing its direct carbon emissions and represents a radical step-change in its commitment and contribution. The Company believes that by being ambitious and innovative in addressing climate change there are clear business benefits as well as social and environmental benefits: * Consumers want to buy products with lower carbon profiles, provided they do not compromise on quality or performance, and will reward companies that address climate change seriously and realistically (just as they may also punish `green wash') * Retailers want to facilitate consumers in reducing carbon emissions, want to address their own carbon profiles and want to work with companies that help them to address these objectives * Suppliers want to work with responsible businesses, and are also seeking to reduce their impact on climate change * People want to work for a company that acts responsibly in addressing major social and environmental concerns. A real and effective programme to address climate change increases employee engagement with the Company and will help to attract and recruit future talent * Government and regulators both need and want business to address climate change in order to help society achieve carbon reduction - ENDS - For further information, contact: Reckitt Benckiser tel (+44) 01753 217 800 www.reckittbenckiser.com Tom Corran SVP Investor Relations & Corporate Communications Fiona Fong Head of Corporate Communications Edward Butt VP Sustainability Notes for Editors 1. Measurement and verification Reckitt Benckiser's trial measurement system provides an estimated Total Carbon Footprint for the Company and its global products' lifecycle for 2006 of approximately 15 million tonnes of CO2 equivalents. Reckitt Benckiser's direct impact from its own operations is less than 5% of this amount. Data for the calendar year 2007 will form the base year for the Carbon 20 programme and the 20% reduction target. The trial measurement system has been developed in conjunction with environmental consultancy, URS and is in line with the British Standard Institute's draft carbon footprinting specification PAS 2050. Reckitt Benckiser already reports externally verified sustainability performance data in its annual Sustainability Report. In future, progress on Carbon 20, with externally verified data, will be reported annually in the same way. Reckitt Benckiser has joined the recently announced Carbon Disclosure Project's Supply Chain Leadership Collaboration initiative. This project aims to increase understanding of the CO2 emissions within supply chains, and due to the size and range of companies who have already signed up to use the CDP's methodology provides a standardised approach for measuring and reporting on supply chain CO2 emissions. 2. Partnerships with suppliers & retailers Reckitt Benckiser is already working with several of its key suppliers in both pilot and existing programmes to measure and reduce climate change emissions from energy use across its supply chain. For example, it has been calculating and publicly reporting emissions across its global product distribution contractors for several years. Going forward, Reckitt Benckiser will be seeking the support of major retailers and suppliers globally, with a view to rolling out programmes to: * Enable and encourage consumers to reduce their carbon impact in household cleaning at home through more efficient use of machines (such as dishwashers and washing machines) and through selection of lower carbon products * Reduce both primary and tertiary packaging materials further, and make use of more recycled packaging materials, particularly with regard to materials and geographies where there is often little or no real delivery of post-consumer plastic recycling back into the product supply chain. Here there are a range of both technical and logistical challenges to be overcome to enable the large-scale use of recycled plastic packaging in the FMCG industry. 3. Reckitt Benckiser's track record on sustainability Reckitt Benckiser has made good progress on reducing its overall environmental impact for several years and has had a particular emphasis on climate change since 2000. Carbon 20 will re-set the base with 2007 as the base year of measurement. Therefore the targeted 20% reduction in Total Carbon Footprint excludes the progress that has already been made. Work achieved since 2000 includes: * Energy use has been reduced by 25% per consumer unit (20% in absolute terms) * Greenhouse gas emissions from manufacturing energy use have been reduced by 22% per consumer unit (15% in absolute terms) * Wastewater discharges have been reduced by 11% per consumer unit (5% in absolute terms) * 70% of all manufacturing waste is now recycled * Hazardous waste has been reduced by 44% per consumer unit (40% in absolute terms) * A number of ingredients have been voluntarily removed from product formulas globally - over and above regulatory requirements - and are now not allowed to be used in the Company's products * 20% of manufacturing energy now comes from highly efficient CHP (Combined Heat & Power) energy systems, which supply the Company's top three energy using facilities globally, while an additional 6% comes from renewable energy sources * The Company's own carbon offsetting programme, Trees for Change, is planting more than 2 million trees over 15 square kilometres of previously deforested land in Canada, thereby offsetting the climate change emissions from the Company's global manufacturing energy use in 2006 and 2007 (more than 8 billion consumer units). * Reckitt Benckiser has been instrumental in launching the European detergent industries Automatic Dishwashing Save Energy & Water project ( www.saveenergyandwater.com), encouraging dishwasher users to switch to using lower energy and water intensive dishwasher cycles * Reckitt Benckiser has moved its Corporate HQ and North America R&D Centre to green energy tariffs * Reckitt Benckiser is a member of the Corporate Leaders Group on Climate Change (CLG). This group brings together business leaders from major UK and international companies who believe that there is an urgent need to develop new and longer-term policies for tackling climate change ( http:// www.cpi.cam.ac.uk/programmes/energy_and_climate_change/ corporate_leaders_group_on_cli.aspx ) Reckitt Benckiser is intent on delivering its products in a sustainable and responsible way. For further details about Reckitt Benckiser's sustainability performance please go to the company's website (www.reckittbenckiser.com) which features the Company's 2006 Sustainability Report. 4. About Reckitt Benckiser Reckitt Benckiser is the world leader in interesting growth categories in household cleaning and health & personal care. Its products provide hygiene and health benefits to improve people's lives. The Company employs around 21,000 people worldwide in over 60 country operating businesses and has sales in some 180 countries. Amongst the Company's leading household cleaning brands are Finish, Calgonit and Electrasol, the world leaders in automatic dishwashing; Lysol and Dettol, the world's leaders in disinfection and antiseptic products; Vanish and Spray'n Wash, world leaders in fabric treatment; Woolite, world leader in fine fabrics; Harpic, world no.1 in lavatory care; Cillit Bang, the leading power cleaner; and Airwick and Mortein, both No.2 brands in air care and pest control respectively. In health & personal care leading brand positions include Veet, the world number one depilatory, Nurofen, a leading analgesic, Strepsils, the world number one medicated sore-throat tablet, Clearasil a leading anti-acne treatment, Gaviscon the No.1 gastro intestinal remedy in the UK and Lemsip the UK No.1. in cold/flu remedies. Reckitt Benckiser is headquartered in Slough outside London in the United Kingdom and is listed on the London stock exchange. The Company had net revenues of £4.9bn and net income of £786m in 2006. With a market capitalization of c.£20bn it ranks among the top 25 UK listed companies. 5. About Carbon Disclosure Project The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation aiming to create a lasting relationship between shareholders and corporations regarding the implications for shareholder value and commercial operations presented by climate change. Its goal is to facilitate a dialogue, supported by quality information, from which a rational response to climate change will emerge. CDP provides a coordinating secretariat for institutional investors with a combined $41 trillion of assets under management. On their behalf it seeks information on the business risks and opportunities presented by climate change and greenhouse gas emissions data from the world's largest companies: 2,400 in 2007. Over 7 years CDP has become the gold standard for carbon disclosure methodology and process. The CDP website is the largest repository of corporate greenhouse gas emissions data in the world: www.cdproject.net 6. About URS URS Corporation is a leading environmental consulting firm with more than 300 offices in key cities around the world. It operates with a global network of around 29,000 employees, working in more than 20 countries and across all sectors, both public and private. Its climate change specialists provide specific consultancy support to organisations that want to develop and implement strategic policies associated with energy and carbon management. www.urscorp.eu
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