MERCADONA ENVIRONMENTAL POLICY 2010 - · PDF fileC/ Valencia, 5 46016 Tavernes Blanques...

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MERCADONA ENVIRONMENTAL POLICY 2010

Transcript of MERCADONA ENVIRONMENTAL POLICY 2010 - · PDF fileC/ Valencia, 5 46016 Tavernes Blanques...

Page 1: MERCADONA ENVIRONMENTAL POLICY 2010 -  · PDF fileC/ Valencia, 5 46016 Tavernes Blanques (Valencia) T. +34 963 883 333 F. +34 963 883 302   MERCADONA ENVIRONMENTAL POLICY 2010

C/ Valencia, 5 46016 Tavernes Blanques (Valencia) T. +34 963 883 333 F. +34 963 883 302 www.mercadona.es

MERCADONA ENVIRONMENTAL POLICY 2010

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Although we have made substantial progress with our environmental management

systems, we are aware there are many aspects still to improve

and are continuing to work with this goal in mind

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1Environmental Policy

0. Introduction........................................ 2

1. Sustainabletransport........................... 4

2. Energysavings................................... 12

3. Commercialpackagingmanagement.... 22

4. Wastemanagement............................ 30

5. “Eco-designed”products.................... 34

6. RetailForum..................................... 43

7. Relevantdata2010........................... 44

INDEX

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2 Environmental Policy

Mercadona is a Spanish family-owned supermarketcompanywhoseobjective is to fullysatisfy thegrocery,homecleaningandhygieneproductneedsofits“Bosses”,which is how the company refers to its customers.Mercadona’smanagementmodelhasbeenbasedonTotalQuality. Through this method, Mercadona satisfies thecompany’sfivecomponentsinequalmeasure:“TheBoss,”TheEmployee,TheSupplier,SocietyandTheCapital.

FollowingthismodelandaccomplishingitscommitmenttoSociety,Mercadonaisworkingtoimprovetheenvironmentalconsequencesof itsactivitybycontinuously lookingforwaystoimproveitsprocesses.

0. INTRODUCTION

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3Environmental Policy

MERCADONA TODAY (data to December 2010)

Family-ownedcompany.Capital100%Spanish.1,310localstores.9logisticsblocksandtwoplanned/underconstruction.4.4millionhouseholds.8,532million“Kiliters”(salesunits).16,485millionEurossold.63,500employees,67%women.Allofthemwithpermanentcontracts.Morethan100integratedsuppliersandmorethan2,000suppliers.

Theenvironmentalstudycarriedoutonthecompanyrevealedthat themost significant impact on the environment fromouractivityisdueto:

1.Transport.2.Energyconsumption.3.Packagingproductionandwaste.

Ourmainefforts tominimize theenvironmental impactofouractivityareconcentratedintheseareas.

PPPP

P

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4 Environmental Policy

1. SUSTAINABLE TRANSPORT

Sustainable logistics is a project developed by the Logistics Department. Its aim is to “transport more with fewer resources.”

Although the fleet is not owned by Mercadona, the company manages all logistics directly. We also endeavor, along with Acotral, our logistics integrated supplier, to constantly update the fleet. In 2010, 36% of vehicles had the Euro certificate 5 and the remaining 64% had the Euro 4.

In 2010, by combining the use of trucks, trains and ships, along with the strategy of “docking bay purchasing” we have reduced the company’s logistics impact on the environment. In addition, Mercadona constantly searches for new ways of contributing to reduce congestion in cities and roads, by applying different strategies that help to reduce the impact of transportation.

1.1 DOCKING BAY PURCHASING

1.2 INTERMODAL TRANSPORT

1.3 URBAN TRANPORT

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1.1 DOCKING BAY PURCHASING

Goods are collected by truck directly from the supplier’s fac-tory, avoiding empty trips and reducing the number of vehicles (trucks and vans) going to the stores.

We apply the so called Estrategia del Ocho:

- Collect goods directly from the supplier’s factory and take them to storage.

- Deliver goods to the stores.- Pick up the packaging from the store to recycle as well as

the reusable boxes and pallets.- Transport all packaging, boxes and pallets to the logis-

tics blocks, the supplier’s factories and/or to the recycling plants.

- And re-start the process.

All goods pass through Mercadona’s logistics centers, avoiding unnecessary trips from suppliers to the stores.

Another complementary strategy is the logistics plan, which consists of building our logistics blocks in accordance with the expansion plan and to bring the supplier’s facilities closer to the logistics blocks.

As a result, in the last few years, the average distance between storage areas and stores has been reduced by 50 kilometers.

Allows us to optimize truck management, avoiding empty journeys.

TheEstrategia del Ocho:

Annualsavingsachieved:

- 15 million fewer kilometers by empty trucks.- 70,000 trucks removed from the roads.- 83,500 tons of CO2 prevented.

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1.2 INTERMODAL TRANSPORT

In order to optimize procedures and reduce the impact of transport on the environment, we are working to increase the volume of goods transported by train and by ship.

For example, train journeys allow us to transport hygiene and cleaning products from the integrated supplier’s facility in Se-villa to other logistics blocks and return with canned goods and cellulose from Tarragona or Castilla and León.

We are also able to bring goods from Rotterdam and Italy, via Bilbao, Tarragona and Cádiz by ship.

So far we have established 5 different transport routes joining the following cities:Tarragona, Sevilla, Córdoba, Valencia y Madrid.

571trainsperyearand5differenttrainroutes:

17,000fewer tons of CO2 emissions in the atmosphere

GOODS

Thankstothesemeasures,in2010weachieved:

-285,000 tons of goods transported by 571 trains (5% more than in 2009).- 585,000 tons transported by ship.- 42,300 tucks removed from the roads.- 11.5 million fewer kilometers driven by road.- 47,000 fewer tons of CO2 in the atmosphere.

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571 trains per year

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1.3 URBAN TRANSPORT

Another strategy we have developed to improve mobility within the town center is Silent Nighttime Unloading. This is part of the TUM (urban transport of goods), and consists of entering the town center with the biggest trucks permitted when there is the least traffic, to avoid disturbing the neighbors.

The challenge is to unload the goods in the quickest and quiet-est way possible. In 2002, Mercadona, along with AECOC and Barcelona’s Town Hall, started to introduce the Silent Night-time Unloading as a strategy to reduce truck circulation in the daytime.

It’s worth mentioning that Mercadona was awarded the Pacto por la Movilidad en Barcelona prize in 2003, by the Town Hall and the Mayor Joan Clos for its Silent Nighttime Unloading project.

By the end of 2010 Silent Nighttime Unloading was imple-mented in 407 stores (31% of the total), located in 35 different provinces.

Advantagesofurbantransportofgoods:

- 1.8 times fewer emissions.- The urban transport vehicles spend 4times less time in the city, reducing

traffic congestion.- Lowerfuelconsumption per ton transported.- Reduction of noise pollution.- Reductionoftwothirds of the number of trucks on the road.- 70,000 fewer tons of CO2 in 2010.

With Silent Nighttime Unloading, the number of necessary trips has been reduced, and they are scheduled when there is least traffic to avoid disturbing the neighbors

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407 stores with Silent Nighttime Unloading

70,000 fewer tons of CO2

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Mercadona and Acotral, an integrated supplier, have incorpo-rated the first truck operated by natural gas (GPN) to the urban distribution.

The advantages of using this fuel are:

a) 30% reduction of CO2 emissions compared to traditional trucks.

b) 80% reduction of greenhouse gasses.

c) 0 particle emission.

d) 50% reduction in engine noise.

e) Reduction of maintenance, and so generates fewer poi-sonous residues.

All of these points contribute to improving the air quality in urban centers.

At the moment this type of truck is used for stores in Madrid’s downtown.

Gasfueltrucks:

SilentNighttimeUnloading:

stores using Silent Nighttime Unloading (6% more than in 2009)

407 70,000fewer tons of CO2 emissions

CO2

Reduction of

30% of CO2 emissions and

50% of noise

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Respectedtheenvironment

Avoided

Demonstratedthat

Takenoutofcirculation

217,500

26 milion

sustainable transport

112,000fewertonsofCO2

kilometers

isprofitable

vehiclesperyear

Because of these sustainable transport initiatives in 2010 we have:

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2. ENERGY SAVINGS

Even though Mercadona’s activity is not industrial, the main environmental impact and a relatively important cost, is related to energy consumption, and the indirect emissions, mainly greenhouse gasses caused by this consumption. This is what has motivated the company to develop and implement mechanisms and methods of saving energy and to apply them in the whole company whenever they are technically and financially viable.

The objective is the simultaneous reduction of the environmental impact and the economic costs of the activity in the stores and logistics blocks.

2.1 MEASURES FOR REDUCING CLIMATE CONTROL ENERGY DEMAND

2.2 MEASURES FOR REDUCING ENERGY CONSUMPTION

2.3 MEASURES FOR REDUCING LIGHTING CONSUMPTION

2.4 EFFECTIVE WAYS OF SAVING ENERGY

2.5 PRACTICES TO SAVE ENERGY IN WAREHOUSES

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Mercadona’s energy consumption can be divided the following way:

Breakdown of consumption in a standard store:

OFFICES.1%

STORES.88%

WAREHOUSE.11%

OVEN.4%

LIGHTING.25%

AIR.CONDITIONING.16%

SOCKETS.5%

REFRIGERATION.50%

In 2007 Mercadona developed the “Eco-friendly Store Project.” Since then, all newly opened and refurbished stores follow more than 20 energy saving rules which together give an annual saving of 66,000 kWh per store.

This project has been certified by AENOR.

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2.1 MEASURES FOR REDUCING CLIMATE CONTROL ENERGY DEMAND

1. DOORS

2. LOBBY

3. CEILINGS

ACTION:Installation of a fast automatic vertical closing door.

OBJECTIVE:To separate the air-conditioned areas (retail space) from the non air conditioned areas (storage area).

ACTION:A Lobby at the entrance of the shops (automatic glass door, screen partition, enclosing elements etc.).

OBJECTIVE:To avoid drafts and an exchange of temperatures with the exterior, and to eliminate the need of placing a ventilation machine (air curtain).

ACTION:To reduce the height of false ceilings by 15 cm in the sales area.

OBJECTIVE:To reduce the climate controlled area.

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1. HEAT RECOVERY

2. TIMERS

3. REFRIGERATORS

4. AUTOMATIC SWITCHING-OFF

2.2 MEASURES FOR REDUCING ENERGY CONSUMPTION

Installation of a system to recover heat from the machinery area, taking advantage of the residual heat from the compressors used for the air conditioning in the fresh products and meat retail space.

Installation of a programmer for the automatic switching-off of standby power: air conditioning, water heating deposits, oven extractor fan and lighting control of retail space.

Installation of acoustic alarms to warn when the cold storage rooms are opened.Installation of a light alarm to warn when a light is left on in the cold storage rooms.

Installation of timers in the control panel of the anti-condensation devices in the refrigerators.

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2.3 MEASURES FOR REDUCING LIGHTING CONSUMPTION

Power reduction in the general lighting of the store.

Installation of automatic lighting control units in the interior areas by presence sensors.

Automatic control of lighting in the exterior areas and parking, by placing photoelectric cells.

Eliminate spotlights or any type of light from the store entrance.

Install a pilot light indicator on all refrigerators.

Automatic control of lighting in the interior areas, by placing dimmers (dusk detectors).

Substitution of spot lights for fluorescent panels (changing rooms, offices, lounge and training room).

Installation of sets of fluorescent tubes instead of spotlights (toilets, showers, basins and entrances).

Substitution of florescent panels and fluorescent tubes (in the retail space) for low consumption lights.

1. STORE LIGHTING

2. PRESENCE SENSORS

3. PHOTOELECTRIC CELL

4. STORE ENTRANCE

5. REFRIGERATORS

6. DIMMING DETECTORS

7. LOW CONSUMPTION LIGHTS

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2.4 EFFECTIVE WAYS OF SAVING ENERGY

SAVING ENERGY METHOD WHAT HOW WHEN

Do not leave lights on

Reduce lighting

Take advantage of natural light

Keep the fridges covered

Load limit

Closed walk-in fridges

Fresh product fridge

Appliances not in use

Turn off oven once baked

Turning off the light when not needed, upon leaving an area, etc...

1/3 of the lighting in the retail space

Curtains and blinds drawn back or in a way that allows the maximum amount of natural light to enter

With the allocated means (curtains, insulating panels, etc…)

Goods should not exceed the grills or marks on the refrigerator or on the evaporator

Keep open only when necessary

Do not distribute the goods in different refrigerators if it can be stored in only one, turning off the unneeded one (criteria: it should never be the meat refrigerator or the pre-storage freezer for frozen products)

Turn off the machines that are not being used (mincer, cutter, scales, wrappers, air conditioner, computer, etc...)

Turn off with shutdown button at the end of baking as described in the current method (turning on 10 minutes before baking)

Light is not needed

We are not open to the public

Natural light can penetrate from the exterior

We are not open to the public, or handling goods from the fridge

Always

Upon entering or exiting the walk-in fridge

Always

Always

Always

The 63,500 workers have been trained in ways to save energy in stores as well as in warehouses.

Annual saving per eco-friendly store:

66,000 kWh

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PARKING

WASTEIsolated.closed.waste-disposal.area.in.order.to.respect.the.urban.environment.and.avoid.disturbing.neighbors.

STORAGE ROOM Larger.and.better.defined.space.

MACHINERY ROOMWith.a.system.of.heat.exploitation.

AMBIENCE STORES. A MODEL OF AN ECO-FRIENDLY STOREInvesting in innovation in order to satisfy the 5 components of the companyA retail space of approximately 1,500m2

LIGHT COLORED FLOORS AND CEILLINGSProvide.more.light.and.give.the.sense.of.a.wider.space.

PARKINGComfortable.parking.spaces.with.wider.lanes..Perforated.aluminum.plates.on.ground.or.first.floors.to.take.advantage.of.natural.light.

PUBLIC TRANSPORTNeighborhood.stores.accessible.by.public.transport.

AUTOMATIC DOORSTo.separate.the.air-conditioned.area.(retail.space),.from.the.non.air-conditioned.area.(Other.areas)..Energy.saving.

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LIGHTINGA.clear.and.well-directed.light.provides.better.vision.of.the.different.sections.and.products,.lower.consumption.and.greater.energy.efficiency.

RETAIL.SPACE

PARKING

LOWER SHOP FURNITUREAllows.better.visibility,.making.the.shopping.experience.more.comfortable.

SECTIONS IDENTIFIED BY COLORSDepending.on.the.section,.the.colors.vary.for.an.easier.identification.by.the.customer..Light.grey,.for.perfumery;.yellow,.for.dairy.products;.red,.for.meats;.green.for.fruit.and.vegetables;.blue.for.fish;.etc.

LOWER CEILINGSTo.optimize.climate.control.in.the.store..Energy.saving.

WIDE AISLESAllows.for.a.greater.and.better.mobility.for.the.customer..The.objective.is.to.enable.up.to.three.shopping.carts.to.pass.simultaneously.

EMPLOYEE ROOMSBigger.and.more.comfortable..Low.consumption.lighting.controlled.with.timers.and.presence.detectors..Energy.saving.

LOCKER ROOMSBigger.spaces.and.individual.lockers.

TRAINING ROOMS

EMPLOYEE LOUNGEEquipped.with.more.services.for.the.employees.

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2.5 PRACTICES TO SAVE ENERGY IN WAREHOUSES

The solar panel installation in the Villadangos logistics block was installed in 2008 and is capable of producing enough energy to power the equivalent of 30 households. This new logistics block also has a system to collect rainwater from the roof and is stored in a 500 m3 tank for future use, with oil-water separators installed where the rain flows from the roof to pre-vent accidental spillage.

In 2010, a system was installed to recover the breaking energy in the Villadangos warehouse. This system converts the break-ing energy of machines into electric energy, and allows us to save up to 4% of the electrical consumption of the warehouse.

All the logistics blocks’ employees have been trained in effective practices to save energy, aimed at avoiding the loss of cool air and the waste of energy

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With all these energy saving actions in 2010 we achieved:

26,000fewertonsofindirectemissionsofCO2

360 Eco-friendlystores

82,000,000kWhsavingsinthewholechain

66,000kWhsavingspereco-friendlystore

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3. MANAGEMENT OF COMMERCIAL PACKAGING

Respecting the environment is an important factor to consider when carrying out the company’s activities. To do so, we use the type of packaging that adds more value to the process, so waste produced by the stores and warehouses is managed in the most efficient manner.

The re-usable packaging along with the cardboard, plastic and expanded polystyrene produced in the daily activity of stores, is returned by reverse logistics to the warehouses and the logistics blocks applying the Estrategia del Ocho (by using the same trucks that carry the goods to the stores which otherwise would have returned empty). All of these materials are later recycled and recovered, preventing them from ending up in a dump.

3.1 CARDBOARD AND PLASTIC RECOVERY

3.2 EXPANDED POLYSTYRENE RECOVERY

3.3 RE-USABLE PACKAGE SYSTEM

3.4 DISPOSABLE WOODEN PALLET RECOVERY

3.5 PLASTIC PALLETS

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3.1 CARDBOARD AND PLASTIC RECOVERY

Under the advice of cardboard, plastic and re-usable pack-aging managers, Mercadona has prepared an infrastructure (shredding compacters in stores, inverse logistics and pack-age warehouses in the logistics platforms) to collect all of the packaging at sales points at the end of its use and to insure its re-utilization and/or recycling.

In the packaging warehouse all the cardboard collected from the stores is re-processed using a continual press that packs it in 700 kilo bales. It’s packed using precise dimensions to optimize space when loading the trailer crates and transported to the integrated paper group Saica, European leaders in the recycling of used paper.

Each store has a shredding compacter machine able to shred the

360 kg of cardboard produced on average per day, which in all amounts to 9,500 kg per store every month.

The bag full of shredded cardboard is transported to the logistics platform in the same trucks that took the goods to the store (inverted logistics).

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146,000 tons of cardboard

- 21 trucks of cardboard daily (6,600 annually).

- 2.2 new packages per kilo of recovered cardboard.

- 322 million new packages manufactured from the cardboard recovered in Mercadona.

The process of recovering plastic is similar to that of cardboard.

This year a total of:

- 6,800 tons of plastic from stores have been recovered and sent to Saica for recycling.

Cardboard savings in 2010:

Plastic savings in 2010:

The Hacendado milk boxes are an example of the complete cycle: cardboard that is recovered from the stores, is recycled and sent to the supplier, who produces more boxes with this material.

In the year 2010 Mercadona recovered and sent to Saica for recycling:

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3.2 EXPANDED POLYSTYRENE RECOVERY

In all Mercadona stores and warehouses the expanded poly-styrene boxes used to transport fresh fish are also recovered and returned to the warehouse by way of reverse logistics.

For this purpose, press machines have been installed in the packaging warehouses, allowing the volume of the boxes to be reduced, transforming them into compact blocks that facilitate their transport and future recycling. The recovered material is re-used to manufacture new products, instead of ending up in a landfill.

After being shredded and washed, the recovered polystyrene becomes a material that is used for the manufacturing of new polystyrene boxes, hangers, transport bases, flower pots, tel-evision back covers, auto parts, urban furniture, etc.

In 2010:

912 tons of expanded polystyrene was recovered

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3.3 RE-USABLE PACKAGE SYSTEM

Logifruit, Mercadona’s reusable container integrated sup-plier, delivers the reusable containers directly to the sup-pliers so they can deliver the product and guarantee trans-port, handling and display at the store.

The empty containers return from the store to the Merca-dona warehouses, where they are cleaned and automati-cally classified.

The containers are washed after each use. Logifruit is able to reduce the consumption of water by 40%, by recovering the water used when rinsing and disinfecting and using it for prewash.

In2010:

- 190,000,000 trips were made with these reusable containers.- 570,000 containers were delivered to suppliers daily (14,700,000

containers monthly).- 70,000,000 trips were made with foldable boxes.- 38,000 fewer empty trucks on the roads.- 10,000fewer tons of CO2 were emitted.

Anunfoldedboxoccupiesthesamespaceas5foldedboxes

1 = 5Since 2006 Logifruit has been substituting reusable hard boxes for other foldable ones to optimize the transportation of the empty boxes even more. Once folded, the space needed for storage and transport is reduced by 80%.

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Foldable boxes:

80%space saving in trucks

10,000fewer tons of C02

38,000fewer trucks

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3.4 DISPOSABLE WOODEN PALLET RECOVERY

Continuing with the objective of recovering and not disposing of valuable materials in the dump, Mercadona recovers and recycles the single use wooden pallets, by separating them from the reusable ones.

Mercadona’s logistics platforms have pallet classifying circuits for this purpose.

3.5 PLASTIC PALLETS

A progressive change from wooden pallets to plastic ones is taking place. These plastic pallets are made entirely from re-covered and recycled materials.

This change has already been implemented for perishable goods, and the objective is to incorporate it for the rest of the products.

2,100

104,000 12 million trips using plastic pallets

tons of wood recycled

single use pallets were recovered, which means

In 2010:

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in tonsRecycling:

10,000fewertonsofCO2byreducingthenumberoftrucksneededtotransportthesamenumberofboxes

CO2

146,000 tons of paper and cardboard

6,800 tons of plastic

912 tons of expanded polystyrene

2,100 tons of wood

With all of these initiatives in the management of commercial packaging in 2010 the following was achieved:

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Waste management in Mercadona focuses on finding the most efficient way to remove waste without disturbing the neighbors. In line with this, each store is provided with an indoor closed area dedicated exclusively to waste containers to avoid litter and smells in the streets.

Likewise, both in stores and in warehouses, all hazardous waste produced by maintenance activities is stored in identified and isolated areas until removed by authorized agents, who recover and recycle the materials.

As part of Mercadona’s strategy to promote a responsible consumption of paper, an electronic invoicing system has been implemented. The certification FSC (which authorizes a sustainable management of wood) has also been obtained for all of our cellulose products as well as all of our own brand milk and juice containers.

4.1 ROOM FOR WASTE CONTAINERS

4.2 BATTERY COLLECTION

4.3 HAZARDOUS WASTE AREA

4.4 SAVING PAPER

4. WASTE MANAGEMENT

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4.1 ROOM FOR WASTE CONTAINERS

This area is exclusively used to store rubbish containers. It is equipped with ozone deodorizers and has double access (from the store and from the street) avoiding the presence of containers in the urban environment.

The purpose of the isolated waste container room is:

• To avoid filth and odors outside• To avoid having rubbish containers on

the street• To guarantee a greater level of hygiene • To respect the urban environment

All these initiatives are taken to prevent disturbing our neighbors

4.2 BATTERY COLLECTION

Since 2009 all stores have had battery collection containers installed. These are sent to authorized agents for the correct treatment and recycling.

130tons of used batteries were collected in 2010 and sent to be recycled

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265 7,000tons of recovered and recycled residues

Kg of recovered and recycled toners

4.3 HAZARDOUS WASTE AREA

All warehouses and stores are equipped with areas on site, to safely store on the premises hazardous waste produced by maintenance works, until they are removed by authorized agents.

By doing so we stop any hazardous waste from being thrown into the environment and we recuperate materials and re-sources, contributing to the reduction of the environmental impact caused by the company’s activities.

In 2010:

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4.4 SAVING PAPER

In 2008 Mercadona implemented the EDI system of electronic invoicing with 100% of our suppliers. Likewise, the digitalized signature system has been installed in all stores for transac-tions made by credit cards.

In addition all cellulose products sold in Mercadona, as well as the Tetra Brik cartons of Hacendado milk and juices, have been certified by FSC and come from sustainable forests. This con-tributes to improving the management of forests, stops illegal logging and promotes the conservation of the most threatened forests, through responsible consumption of timber products.

90 fewer tons of paper consumed thanks to digitalized signing

270 fewer tons of CO2 emitted into the atmosphere

The Tetra Brik cartons of Hacendado milk and juices have

the FSC certification

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5. “ECO-DESIGNED” PRODUCTS

It’s worth noting the initiatives that we have been carrying out for years to save natural resources, by integrating environmental aspects in the design of products.

These improvements have been achieved thanks mainly to the close relationship and cooperation of Mercadona’s integrated suppliers. As a result of this collaboration 82% of integrated supplier factories already have a standardized environmental certification (ISO 14001, EMAS o similar) and 18 % of them are currently being certified.

5.1 STACKING OPTIMIZATION

5.2 CONCENTRATION AND COMPACTING OF PRODUCTS

5.3 PACKAGING REDUCTION

5.4 SHOPPING BAGS

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Wine and oil

By improving the stacking system more units can be transported per truck, saving energy and preventing CO2 emissions

5.1 STACKING OPTIMIZATION

Following the policy of “transporting more with fewer resourc-es,” efficient loading of trucks is very important. Efforts have been made to load trucks in a more efficient way to obtain better stacking, in order to transport more units in each truck, thus reducing the number of necessary trips. This helps the stores to be better supplied and creates a more sustainable use of the truck fleet, saving energy and preventing CO2 emis-sions.

122 fewer tons of CO2 per year

26 fewer tons of CO2 per year

By modifying the design of the bottle and making it square, we managed to increase the number of units transported on each pallet by 16%, with the consequent saving of trucks.

By taking advantage of the gaps between the bottles when stacking them, we have managed to transport 20% more units on each pallet, thus reducing the number of necessary trips to transport them.

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5.2 CONCENTRATION AND COMPACTING OF PRODUCTS

100% of Mercadona’s own brand house cleaning products (laundry and house cleaning) adhere to the AISE (International Association for Soaps, Detergents and Maintenance Products) regulation.

These products carry the logo of the Sustainability Charter, a European industry initiative, aimed at developing and continu-ously improving sustainability. This reinforces the collective re-sponsibility that industry has for society, protecting the health and well being of the workforce and consumers and reducing the impact on the environment.

Compacting the cellulose products

In2010thispolicymeant:- Having 50% more product occupying the same volume.

- Avoiding 3,244trucks and 120shipcontainers.

- 2,200 fewer tons of cardboard.

- 140 fewer tons of plastic.

- Emitting 850 fewer tons of CO2.

Sustainability Charter Logo

This logo is included on the label of cleaning products, showing the commitment of the company and its suppliers to respect the environment.

Through a process of compacting that eliminates the air from the product, we have managed to reduce the volume while maintaining the same number of units, saving on transport and materials.In addition, the raw materials used in our cellulose products come from sustainable forests.

In 2009, this initiative set by S.C.A., Mercadona’s integrated supplier for cellulose products, was mentioned at the Summit of Climatic Change of Copenhagen as an example of sustainability (http://www.sealthedeal2009.org/psa-tv-series7).

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Thismotionmeans:A60%saving on transport: The same amount of product is moved in one third of the space.

A64%saving in packaging.

Softeners and detergentsSteps are being taken to concentrate all cleaning products. Since 2007 all fabric softeners and an increasing number of Mercadona’s own brand products are being concentrated. Efforts are being made to increase the number of concentrated products on the shelves, thus obtaining a bigger saving and a smaller impact on the environment.

1,300tons of cardboard saved

600 fewer tons of CO2 by reducing the number of trucks needed to transport the same amount of product

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5.3 PACKAGING REDUCTION

Reducing the amount of packaging not only generates less waste, but also improves the logistics of the products and al-lows for a better cost control. In this way, improvements have been achieved by reducing weight in beverage bottles and bath gels, by eliminating superfluous cardboard and plastic from packaging, or even by completely eliminating the con-tainer. This can be seen with fruit as it went from being sold packed to being sold in bulk.

The trays and plastic film have been eliminated from fruit, maintaining the maximum standards of quality and food safety and improving waste management both in the store and at home.

Loose Fruit

1,900 tons of plastic saved per year

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In Cataluña stores the consumption of one-use plastic bags has been reduced by more than

80%

5.4 SHOPPING BAGS

In order to achieve the objective set by the Plan Nacional Inte-grado de Residuos the consumption of single-use plastic bags 50% by 2012, Mercadona has carried out an awareness cam-paign aimed at employees and clients to promote the use of reusable bags.

In the shops where the reduction program has been imple-mented, customers are being encouraged to reuse the bags they already have at home. We also offer an assortment of re-usable bags in case the customer needs to purchase them.

This policy was implemented first in Cataluña in 2010, framed in the commitments agreed in the Pacte per la Bossa, and it achieved a reduction of more than 80% in the consumption of one-use plastic bags. Throughout 2011 this policy will be implemented in every store in the Mercadona chain.

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SOME EXAMPLES OF ACTIONS TAKENPRODUCT ACTION ANNUAL SAVING

LOAFOFBREAD&PASTRIES

Increase number of units per box. Packaging reduction. Elimination of labels.

1,800trucks45tonsofcardboard

YOGHURTSANDDESSERTS

Cardboard packaging reduction.Stacking optimization.

1,200trucks575tonsofcardboard

WASHINGPOWDERANDTABLETS

Reduction of empty space in the package. Elimination of the plastic handle and the measuring cup.

520trucks650tonsofcardboard550tonsofplastic

PETFOOD Change of format of the container. Stacking optimization. Elimination of cardboard boxes.

50trucks675tonsofcardboard

BOTTLEOFWATER2L Reduction of weight.Reduction of size of the cap. 360tonsofplastic

DISPOSABLEHOUSEHOLDITEMS

Elimination of cellophane and cardboard boxes.294tonsofcardboard218tonsofplastic

RICE Packaging reduction. Stacking optimization.Moving factories closer to logistics centers.

175trucks20tonsofcardboard30tonsofplastic

EGGS Moving the farms closer to logistics centers.Stacking optimization. 912trucks

CHICKENONTRAY Change to PET tray (packaging easier to recycle). Stacking optimization. 600trucks

PRAWNS Packaging reduction. Increase in units per box. Stacking Optimization.

60trucks358tonsofcardboard

MILK Packaging weight reduction. 440tonsofcardboard

MEATPRODUCTS

Stacking optimization. Increase of units per box. Weight reduction of the container.

144trucks30tonsofplastic

JUICE Packaging optimization. 510trucks

FRESHMEAT Change from tray to vacuum package. 205tonsofplastic

LONGLIFEFRESHBREAD

Packaging weight reduction. Increase of units per box.

272trucks20tonsofplastic

BATHGELS&CONDITIONERS

Packaging weight reduction. 160tonsofplastic

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Packaging.weight.reduction.and.change.of.format.

Removal.of.the.cardboard.box.

Elimination.of.tray,.fixed.weight.and.film.

Ink.reduction.in.printing.

Volume.reduction.of.the.cover.

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The “Eco-design” of products has achieved in 2010:

4.5% 23,000reductionofpackagingforourproductsduring2009y2010

fewertonsofCO2thankstostackingimprovementandpackagingreduction

7,000

8,000

11,300fewertrucksafterimprovingvariouspackagingprocesses

fewertonsofplastic

fewertonsofcardboard

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Mercadona has been a member of the Retail Fo-rum, a joint project of the European Commission, since its foundation in March 2009 and is also a member of the European Retail Round Table (ERRT) and Eurocommerce. The objective of the Retail Fo-rum is to promote sustainability in the distribution sector, encourage the manufacture of more sustain-able products and improve customer information.

On the 24th of July 2010 the Forum’s first annual event took place, inaugurated by the European Commissioner of Environment, Janez Potočnik. In this act the Retail Environmental Sustainability Code was presented, which is a code of good practices with the objective of obtaining a more sustainable consumption.

This code involves the commitment to continue adopting measures aimed at improv-ing the environmental behavior of distribution in the following areas:

1. Promoting more environmentally sustainable sourcing and production of products.2. Improving the environmental performance of the retailers’ premises.3. Optimizing the transportation of goods.4. Reducing packaging and minimizing waste.5. Improving facility access.6. Improving communications with customers.

6. EUROPEAN RETAIL FORUM FOR SUSTAINABILITY

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7. Relevant Data 2010

112,000 217,500fewer vehicles per year fewer tons of CO2

Sustainable Logistics (page 11):

82,000,000 26,000kWh saved fewer tons of CO2 indirect emissions

Energy savings (page 21):

10,000152,800fewer tons of CO2tons of cardboard and plastic

recuperated

Commercial packaging management (page 29):

15,000 23,000tons of cardboard and plastic saved

fewer tons of CO2

“Eco-designed” products (page 42):

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Although we have made substantial progress with our environmental management

systems, we are aware there are many aspects still to improve

and are continuing to work with this goal in mind

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C/ Valencia, 5 46016 Tavernes Blanques (Valencia) T. +34 963 883 333 F. +34 963 883 302 www.mercadona.es

MERCADONA ENVIRONMENTAL POLICY 2010