The Federation House CommitmentThe Federation House Commitment Progress Report: 2012 Executive...

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The Federation House CommitmentHelping the food & drink industry improve water efficiency

Progress Report: 2012

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The Federation House Commitment Progress Report: 2012

Executive summary............................................................................................................3

Foreword.............................................................................................................................4

Introduction.........................................................................................................................5

Progress to date.................................................................................................................6

Commitment overview.................................................................................................... 11

FHC signatory benefits.................................................................................................... 12

Case studies..................................................................................................................... 12

Thorntons.-.Thorntons.reap.the.benefit.of.developing.a.mass.balance................... 13

Tulip.-.Improved.cleaning.leads.to.significant.savings.for.Tulip............................... 14

Warburtons.-.Warburtons.reduces.water.use.by.10%.............................................. 15

Branston.-.Water.recycling.plants.reduce.Branston’s.potato.processing.footprint........................................................................................ 16

Supporting information................................................................................................... 17

The Federation House Commitment - steps to progress.......................................................................................................... 19

FHC signatories............................................................................................................... 21

FHC.signatory.benefits

Progress Report: 2012page.2

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Executive.summary

Foreword Introduction Progress..to.date

Commitmentoverview

Case.studies Supporting.information

FHC.steps..to.progress

FHC.signatories

Contents

FHC signatories have reduced their water use (excluding that in product) by 14.4% since 2007.


Executive summaryFor the past four years, the Federation House Commitment (FHC), managed by WRAP in partnership with the Food and Drink Federation (FDF), has been helping signatories across the food and drink manufacturing sector turn their commitments into real water savings.

Between April 2011 and December 20111, 17 new companies signed up to the FHC, making public their commitment to reducing water use. An additional company signed up in February 2012, bringing the total number of signatories to 70 across 2782 active sites.

Together, these signatories represent an estimated 24% of UK food and drink manufacturing3. Collectively the signatories are in a position to make a significant impact on the amount of water used by the entire sector. As the number of signatories continues to grow, the FHC’s contribution and sphere of influence will also continue to increase.

Between 2007 and 2011 signatories collectively made a 14.4% reduction in their water use (excluding that in product). This reduction is equivalent to 5.9 million m3 or around 2,400 Olympic-size swimming pools.

There has also been a significant reduction in water use (excluding that in product) per tonne of product; 22.7% compared to the 2007 baseline – a reduction of 0.58 m3/tonne product. This is a significant achievement given that production for these sites increased by 10.7% over the same reporting period.

Between April 2011 and December 2011, 50 site visits were undertaken by FHC technical advisors, with around 1.3 million m3 of water saving opportunities identified in addition to the water already saved. This represents an average of 10% of total water used by these sites.

Data for 2011 was provided by more sites than ever, and in record time. The quality of this data was much improved compared to previous years – a testament to the signatories’ continued commitment to improved monitoring and reporting methods.

Liz GoodwinCEO, WRAP

I am delighted to see the progress that is continuing to be made towards the food and drink industry targets. In particular it is heartening to see the steps that are being taken by signatories to improve the measurement and monitoring of water use, given that the provision of robust data is key to the Commitment’s success. The positive impact on water use looks set to continue, with signatories now starting to go beyond ‘quick wins’ and beginning to implement long term water saving actions.

Andrew KuykDirector of Sustainability & Competitiveness, FDF

We are extremely pleased to see a real step change in performance as companies take to heart the water efficiency case – reflected also in the welcome increase in signatories. The results also confirm that we are succeeding in decoupling economic growth from environmental impact, with production increasing while water usage falls. FDF’s Every Last Drop campaign is reinforcing these vital messages and providing the impetus to tackle the even more significant challenge of water use elsewhere in our supply chains.

FHC signatory benefits


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Foreword Introduction Progress to date

Commitmentoverview

Case studies Supporting information

FHC steps to progress

FHC signatories

1 Signatories who signed up before April 2011 were included in the previous FHC report. From 2012 onwards, new signatories will be reported by calendar year in line with the reporting period for FHC data.

2 A number of sites have closed during the course of the FHC programme.

3 This is based on a comparison between 2007 total water use data for the FHC signatories and the food and drink sector water use, based on FISS 2006 data.

www.defra.gov.uk/publications/2011/03/28/pb11649-food-industry/



ForewordRichard BenyonParliamentary Under-Secretary for Natural Environment and Fisheries, Westminster Government

As we said in the Government’s White Paper Water for Life, we all have a role to play in using water wisely and efficiently. Given the pressure on our water resources from climate change and population growth, it is crucial that businesses adapt and manage the risks they face from changes in water availability as efficiently as possible. This includes measuring and managing their water use. The Federation House Commitment is an excellent example of how the food and drink manufacturing sector has taken up this challenge. I am pleased to see that nearly a quarter of the food and drink manufacturing sector is represented by current signatories and that these signatories have achieved a 14.4% reduction in their water use in 2011 in comparison to the 2007 baseline. This is equivalent to around 5.9million m3; a significant amount of water and a significant contribution to improving the water efficiency of the UK food and drink manufacturing sector.

The case studies in this report highlight the real benefits to companies that can be obtained through managing their water use effectively and identifying opportunities for water efficiency. For example, Thorntons’ adoption of the mass balance approach has enabled them to save significant amounts of both water and money, while Warburtons have identified potential annual water savings of 39,000m3 through technical advice from the FHC. I would encourage other businesses in the food and drink sector to follow their example and recognise the importance of this precious resource.

Richard LochheadCabinet Secretary for Rural Affairs and the Environment,Scottish Government

On behalf of the Scottish Government, I’d like to congratulate all of the signatories to the Federation House Commitment who, with help from WRAP and the Food and Drink Federation, continue to reduce water use in the food and drink industry. This industry is central to our economic ambitions for Scotland and we are determined that it grows sustainably.

So it is heartening to see that practical actions being taken by signatories mean they are on track to make a significant contribution to the sector target to reduce water use by 20% by 2020. Efficient water management

is good for business and our environment, so it is also welcome that the Commitment now covers more than a quarter of all water used by the food and drink industry. Covering 23 production sites across Scotland, this level of participation is testament to the variety and commitment of our food and drink industry to operate more sustainably.

Water is one of our most important resources. Globally, increasing demand for water from businesses is causing droughts, increased production costs, and in some cases, even leading to conflict.

Our vision of Scotland as a hydro nation recognises the economic potential of water as a resource. For water-intensive industries like food and drink, the climate in Scotland may provide a comparative advantage. We are keen to maximise opportunities for these industries, but that will only be possible if resources are used as efficiently as possible.

To support this, we intend to unite all strands of resource efficiency support to business – covering water, materials, energy and waste – under a single programme.

Resource efficiency can drive competitiveness and sustainable growth and many businesses can look at the leadership shown by signatories to this commitment. I applaud their success and look forward to seeing the fruits of their labour enhance the sustainable growth of our food and drink industry.



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Executive summary

Foreword

Introduction Progress to date

Commitmentoverview



FHC signatories


IntroductionIn 2006, DEFRA published its Food Industry Sustainability Strategy4 (FISS) which estimated that the food and drink industry in England and Wales uses 252 million m³ of water per annum. In response to this, the FHC was developed to help companies in the food and drink sector to reduce water use across their manufacturing sites. This voluntary agreement is managed by WRAP5 and the FDF6. All companies that sign up to the FHC agree to make a contribution to a food and drink sector water reduction target of 20% by the year 2020, against a 2007 baseline. Further information is provided in the overview section on page 11.

Since its launch in 2008, the FHC has helped signatories turn their commitments into tangible water savings, reaping environmental and financial benefits in the process.

WRAP has appointed Hyder Consulting to administer the FHC. With extensive experience in water efficiency across the food and drink industry, Hyder is well placed to work with FHC signatories to help them identify and deliver water reductions.

The support provided to signatories includes:

free technical implementation support, including on-site support;

opportunities to participate in peer working group meetings;

the opportunity to promote their success to the rest of the industry and the wider public through the FHC Progress Report; and

access to a dedicated signatory area on the FHC website with online water management tools and resources.

This report summarises the water savings made by FHC signatories in 2011. As well as demonstrating the collective progress made by signatories, the report highlights measures taken by individual companies to reduce water use at their UK manufacturing sites.

Over the last 12 months the FHC has been working with signatories to improve data monitoring and identify better methods of data submission. This year more sites than ever provided data, and the quality of this data was much improved compared to previous years. This demonstrates the continued commitment of signatories to improved monitoring and reporting methods.

It is important to note that a direct comparison between this report and any previous report cannot be made. This is because at the time of each analysis the dataset will vary depending on which sites report and the sub-sector they represent. Therefore, to determine the year on year trend since 2007, only FHC sites reporting data for 2007 (baseline year), 2010 and 2011 have been considered in this analysis. This represents 213 sites. The methodology used to analyse the data is summarised on page 17.

FHC membership continues to grow, and in the coming year the Commitment will target specific sectors that are high water users. This will increase the number of sites included in the baseline, and will extend the sphere of influence of the FHC, which is likely to have an impact on the figures reported in future.

4 The Food Industry Sustainability Strategy, 2006, www.defra.gov.uk.5 WRAP works in England, Scotland, Wales and Northern Ireland to

help businesses, local authorities, communities and individuals reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way. WRAP has managed the FHC since April 2010, www.wrap.org.uk.

6 The Food and Drink Federation is the voice of the UK food and drink industry, the largest manufacturing sector in the country. The FHC is a key component of FDF’s Five-fold Environmental Ambition, launched in 2007 to demonstrate FDF’s commitment to making a real difference to the environment, www.fdf.org.uk.




Executive summary

Foreword

Introduction

Progress to date

Commitmentoverview



FHC signatories

http://www.fhc2020.co.uk


http://www.defra.gov.uk/publications/files/pb11649-fiss2006-060411.pdf


http://www.wrap.org.uk

http://www.fdf.org.uk










Progress to date

300

200

100

02008 2009 2010 2011

Number of Signatories

Number of Sites

9 Individual company data is held by WRAP in confidence and in accordance with UK data protection legislation.

7 Any difference in signatory numbers between this report and the previous report is attributable to companies joining or leaving the scheme, or from sites that have closed during the course of the FHC programme.

8 Signatories who signed up before April 2011 were included in the previous FHC report. From 2012 onwards, new signatories will be reported by calendar year in line with the reporting period for FHC data.

MembershipThe number of FHC signatories continues to grow, and 2011 saw the largest increase in signatory numbers since its launch in 2008 – as shown in Figure 17. The FHC’s sphere of influence across the food and drink manufacturing sector continues to increase, not just in size but also in sub-sector coverage.

Between April 2011 and December 20118, 17 further companies signed up to the FHC. An additional company signed up in February 2012, bringing the total number of signatories to 70 across 2787 active sites. The FHC signatories represent an estimated 24% of the UK food and drink manufacturing sector (based on total water use in 2007). The methodology used to calculate sector coverage is summarised on page 18.

A full list of current signatories is provided on page 21.

Data OverviewFHC signatories are required to provide data annually on water use and production. To maintain individual company data confidentiality, water usage data is aggregated and reported on a collective basis9.

The FHC is focused on addressing and reporting on annual water use (excluding that in product). This reflects the amount of water that can be reduced by implementing best practice on site - it is not commenting on the water used in product. The methodology used to calculate water use (excluding that in product) can be found on page 17.

For purposes of completeness and consistency with previous FHC progress reports, data relating to total water use (which includes water in product) is shown on page 17.

Figure 1: Growth of FHC membership (by calendar year)

To determine the year on year trend since 2007, and to give a like for like comparison, only FHC sites reporting data for 2007 (the baseline year), 2010 and 2011 have been considered in this analysis. This represents 213 sites.

Therefore, unless otherwise stated, the data summarised in this report represents these 213 sites. Further information on the methodology used to analyse the data can be found on page 17.

The FHC defines product as finished product expressed in tonnes.




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FHC signatories


Progress to date cont.2011 water reduction progressThe FHC measures reduction in water use against a 2007 baseline. This is expressed as two key performance indicators (KPIs)10:

absolute KPI: water use (excluding that in product), discussed in this section and shown in bold in Table 1; and

relative KPI: water use (excluding that in product) per tonne of product, discussed in the following section.

Between 2007 and 2011 FHC signatories collectively made a 14.4% reduction in their water use (excluding that in product) as summarised in Table 1 and Figure 2. This equates to a saving equivalent to 5.9 million m3 or enough water to fill around 2,400 Olympic-size swimming pools.

Table 1: Annual water use (excluding that in product)compared to baseline year for 213 sites with comparable data

Water use (million m3)

Year

Water use (excluding

that in product)

Water in product

Total water use

2007 41.1 6.8 47.9

2010 36.6 7.5 44.1

2011 35.2 7.7 42.8

Table 2: Percentage water use reduction relative to baseline based on 213 sites with comparable data

Water use (excluding that in product)

Year % reduction relative to baseline

2007 -

2010 10.9%

2011 14.4%

In addition to the significant water savings that have been achieved between 2010 and 2011 (1.4 million m3), it is likely, in many circumstances, that further environmental benefits will have been realised, including savings in energy consumption, raw materials and associated carbon impacts. Assuming that all water savings are from the public water supply, and an average cost of £1.45/m3 11 of water is applied, savings of around £1.82 million in the purchase of water alone will have been achieved.

Further cost savings can be realised through changes to water treatment, effluent disposal and raw materials.

A number of sites have already made significant savings, and some of these are illustrated in the Case studies section.

10 Other KPIs, relating to total water use, are discussed in the Supporting information section of this report.

11 Based on the average standard user tariff for 2012 from main water companies in England and Wales.




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Progress to date cont.Comparing water use and productionThe trend in water use and production between 2007 and 2011 for the 213 sites with comparable data is shown in Figure 2. This shows that there is a continuing downward trend in water use (excluding that in product) of 14.4% between 2007 and 2011 (Figure 2). Concurrently, production saw a significant increase between 2007 and 2011 (16 to 18 million tonnes) of 10.7%, although there was little change in production figures over the last 12 months (Figure 2).

Figure 2: Water use and production trends between 2007 and 201112.

FHC water reduction trendReporting absolute reduction in water use (excluding that in product) does not take into account any changes in production. Relative water use (the ratio of water use to product) provides a complementary method of assessing the food and drink sector’s performance.

The FHC water reduction trend is best shown using this relative KPI and is expressed as water use (excluding that in product) per tonne of product.

FHC signatories are continuing to make good progress in reducing water. A 19.4% reduction in water use (excluding that in product) per tonne of product was achieved between 2007 and 2010, and in 2011 a further 3.3% reduction was achieved. This represents an overall reduction of 22.7% against the 2007 baseline. This is summarised in Table 3 and shown in graphical format in Figure 3.

Table 3: Relative water use compared to baseline year for 213 sites with comparable data

Water use (excluding that in product)

Yearm3 per tonne

of product% reduction relative

to baseline2007 2.53 -2010 2.04 19.4%2011 1.95 22.7%

Table 3 shows that the reduction in water use per tonne of product appears to be slowing down. This is to be expected, given that many signatories have tackled the “easier wins” and are now looking at more capital-intensive investments, which require further investigation to ensure further reductions in water.

The graph in Figure 3 shows the relative water use (excluding that in product) as m3 per tonne of product for the 213 sites with comparable data.

Figure 3: FHC water reduction trend expressed as water use (excluding that in product) m3/tonne of product13

Index (2007 = 100)

2007 2008 2009 2010 2011

115

110

105

100

95

90

85

80

Water use (not in product)

Production

10.7%

-14.4%

12 In Figure 2 data for 2008 and 2009 are interpolated and shown as a dashed line.




Executive summary


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FHC signatories

2007 2008 2009 2010 2011

2.60

2.50

2.40

2.30

2.20

2.10

2.00

1.90

1.80

1.70

Wat

er u

se (e

xclu

ding

that

in p

rodu

ct) m

3 /ton

nes

of p

rodu

ct

22.7% reduction

2.53

2.04

1.95

13 In Figure 3 data for 2008 and 2009 are interpolated and shown as a dashed line.


Progress to date cont.This year the technical support site visits have provided valuable insights into current practices for sites where production has decreased or the production profile has substantially changed. Where this occurs it may result in gaps in production which can lead to a requirement for additional cleaning and potentially an increase in water use compared to previous years.

Consequently, despite reducing water use in other areas, some sites are seeing a plateau in water use per tonne. The FHC will continue to work with signatories to find practical solutions to this challenge.

Sub-sector coverageA wide variety of manufacturing operations, across a range of sub-sectors within the food and drink sector, are represented within the FHC.

Table 4 and Figure 4 provide a sub-sector breakdown of the signatories by water use (excluding that in product). Of the 213 sites, with comparable data, 60% of water use (excluding that in product) is attributed to three sub-sectors: soft drinks and beverages (24%), dairy (21%) and meat processing (15%).

Figure 4: Food and drink sub-sectors represented within the FHC (based on water use)

Table 4: Food and drink sub-sectors represented within the FHC (in descending order of water use)

UK breakdown

Water use (excluding that

in product) (million m3)

Production (million tonnes)

Soft drinks and beverages (excluding brewing) 8.5 6.6

Dairy 7.4 4.2

Meat processing 5.3 1.1

Pre-prepared foods 2.8 0.6

Snack foods 2.0 0.8

Fruit and vegetables 1.5 0.8

Confectionery 1.4 0.5

Cereal manufacturers 1.3 0.4

Bakery 0.5 0.9

Other 4.4 2.1

Total 35.2 18.0




Executive summary


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FHC signatories

Soft drinks & beverages 24%

Dairy 21%Other 13%

Snack foods 6%

Meat processing 15%

Pre-prepared foods 8%

Confectionery 4%

Cereal manufacturers 4% Bakery 1%

Fruit and vegetables 4%


Progress to date cont.Scotland, Wales and Northern IrelandFHC signatories operate across the UK, although FHC activity is currently focused on England and Scotland as requested by their respective national governments.

Figure 5 shows the distribution of current FHC sites across the UK.

Figure 5: Distribution of all FHC signatory sites

Priorities for the current yearThe support provided by the FHC is regularly reviewed to ensure that it is helping the food and drink industry to realise the sector target to reduce water use by 20% by 2020.

The priorities for the FHC for the current year are:

Recruitment: focus activity on specific high water using sectors;

Support: review the support provided to signatories to include an improved reporting portal and online training materials;

Implementation: provide support to signatories in implementing the actions identified and progress from “quick wins” to longer term gains;

Collaboration: increase partnership working between the FHC and other organisations such as trade associations and water companies;

Better integration: with wider resource efficiency activities; and

Baseline data: work is being undertaken to review and update the FISS food and drink industry baseline water use figure. This will help to better inform the FHC and activity within the sector, and is due for publication in 2012.




Executive summary


Progress to date

Commitmentoverview



FHC signatories

England 85%

Wales 3%

Northern Ireland 2%

Scotland 10%


Commitment overviewIn 2006, DEFRA published its Food Industry Sustainability Strategy14 (FISS) which estimated that the food and drink industry in England and Wales uses 252 million m³ of water per annum.

The FISS Water Champions Group recommended an industry water reduction target15 of 20% by 2020 against a 2007 baseline, which the Strategy considered to be best achieved through the implementation of best practice in water use across the sector. The FHC provides industry with a structured opportunity to identify and implement best practice to help achieve this target.

Many signatories have directly incorporated the industry-wide target of 20% into their corporate targets. Some have set even more challenging objectives, and have demonstrated the importance of water use within their wider sustainability agendas.

Under the FHC, signatories pledge to review their on-site water use and develop site-specific action plans within six months of signing up. Signatories then review and update their action plan based on actions implemented and commit to providing data on water savings made on site on an annual basis. FHC technical advisors are available to assist signatories at each stage of the process.

The five key steps that signatories commit to are outlined below and are presented in more detail on page 19:

1. Establish a baseline of water use for each participating manufacturing site.

2. Assess water use at each participating manufacturing site.

3. Develop site-specific action plans to reduce water use.

4. Implement those action plans. 5. Report water and cost savings to WRAP annually.

Benefits of membershipBy signing up to the FHC, companies in the food and drink manufacturing sector are reaping the benefits from improved water efficiency and financial savings, whilst contributing to the overall industry-wide target to reduce water use. These benefits include:

Cost savings: substantial savings can be made on bills, often with minimal initial financial investment.

Meeting client requirements: increasingly, large supermarkets and other clients care about and report on the impact they make on the environment and expect their supply chain to do the same. FHC signatories are making a public declaration of their commitment to environmental sustainability and are taking action to reduce their impact on the environment.

Operational compliance: many food and drink manufacturers are regulated through environmental permits, or operate a certified environmental management system where monitoring, setting targets and demonstrating continuous improvement are key requirements. The FHC aligns to these requirements and can support signatories with continuous improvement and compliance.

Future-proofing: making an investment today, with access to specialist expertise, is smart preparation for a more resource-constrained future.

14 The Food Industry Sustainability Strategy, 2006, www.defra.gov.uk.15 Water use (excluding that in product).




Executive summary


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FHC signatories


http://www.defra.gov.uk/publications/2011/03/28/pb11649-food-industry/


http://www.defra.gov.uk/publications/2011/03/28/pb11649-food-industry/


FHC signatory benefits Technical support deliveryFHC signatories have access to limited specialist support to help them review and reduce their water use. This approach ensures that signatories receive appropriate tailored technical support specific to their site and company needs.

This support can help signatories to:

establish a company baseline for water use; calculate a KPI, i.e. water used per tonne of product; assess water use and develop a water mass balance

for each manufacturing site; identify and implement key water saving initiatives,

and by doing so adopt best practice; develop site specific action plans; programme and prioritise actions on site to meet

objectives and targets and demonstrate continuous improvement; and

report annual water use.

FHC technical advisors discuss requirements with the signatory company to identify the most appropriate level of support to deliver the maximum cost and environmental savings.

This approach aims to help signatories adopt and implement the Commitment steps appropriately throughout all of their sites – not just those sites that have received a visit. The overall aim of the technical support delivery is to help signatories achieve water efficiency savings and fulfil their commitment. In particular, it can help them to identify specific opportunities for water reduction, whilst also highlighting potential cost and environmental savings. This information can be used to develop a business case for any resource requirements, production changes or capital expenditure that may be required.

Between April 2011 and December 2011, 50 site visits were undertaken and FHC technical advisors identified approximately 1.3 million m3 of water saving opportunities including reducing water pressure in some areas of the site, repairing leaks and overflows, fitting water recirculation systems to equipment and optimising cleaning operations. This represents an average of 10% of the total water used by these sites.

Peer working groupsPeer working groups are open to all signatories and provide training and advice (specifically on technical and management issues) focused on helping signatories implement action plans and realise savings.

Specific benefits include:

sharing best practice with peers in an informal environment;

obtaining guidance on good practice techniques and technologies;

reviewing performance against the FHC’s five steps to progress; and

networking with peers and supply chain colleagues.

Case studiesThe FHC annual report provides signatories with the opportunity to promote their achievements to other signatories, to their stakeholder groups and to industry. The case studies included in this report highlight signatories’ experience of the FHC and summarise how they have used the technical support provided to help identify and implement changes at their sites.

chocolate manufacturer Thorntons describes how advice on producing a robust mass balance led to the identification of two significant leaks;

Tulip, a meat processor, shows how focusing on cleaning has delivered water savings;

bread baker Warburtons discusses how the results of site visits and in-house training have been communicated to other sites through dedicated ‘Green Teams’; and

potato processor Branston outlines major water recycling advances at two of its sites.




Executive summary


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FHC signatories


Case Study Thorntons reap the benefits of developing a mass balance

Thorntons is Britain’s largest independent chocolate manufacturer and retailer. Chocolates are manufactured at the company’s site in Alfreton, Derbyshire, which was opened in 1985 and has been expanding ever since. The company became an FHC signatory in 2011, and soon after signing received a free technical support on-site visit. During the initial meeting it became evident that Thorntons was already ‘serious about water’ but was keen to do more.

“We had previously invested in a sophisticated utility data-logging management system, which included utilities monitoring software”, explains Rebecca Dilks, Environmental Project Manager at Thorntons. “The system was designed to also accept readings from the main incoming water meter so that we could routinely plot and trend water consumption across the site.

“We also invested in an extensive water sub-meter installation programme, which feeds back to the utilities monitoring software, so that most, but not all, of the

main water-using areas on the site are metered and monitored.

“Before joining the FHC, we hadn’t completed a detailed water balance but had relied on trending water consumptions via the utilities monitoring software to monitor water use patterns. Nothing unusual had been seen – no rapid spikes or increases – although we did notice that background water consumption over Christmas didn’t drop completely to zero.

“During the initial FHC on-site review, we developed a draft water balance for the site and received help to prepare a schematic of the factory processes. Water flow data from the main incoming meter and sub-meters obtained from utilities monitoring software was added onto this. This process allowed us to identify the data gaps and focus our efforts on measuring/calculating/estimating these using support from the FHC technical advisors.

“Once the data on the water balance was complete, it became evident to us that the water balance did not actually balance!,” Dilks says. “It seemed we were consuming (and paying for) some 30,000 m3 water a year which was not apparently being used anywhere.

“When further checks and investigation of site geography and water distribution failed to reveal a possible water use of this magnitude, we decided to call in a leakage detection company.

“Within a few hours on site, two underground leaks were discovered: one estimated at 3 – 4 m3/h and another at 0.5 – 1 m3/h. On finding this, we knew we had to act swiftly and the leaks were repaired within days. This has reduced our water consumption by an equivalent greater than 20,000 m3/y. With the site’s average cost of water of 78p/m3 and trade effluent charges of typically £2.35/m3, we expect to save over £60,000 per year.”

“ We thought we were managing water really well until we completed a detailed water balance as part of the FHC. The help we received quickly brought sharply into focus what was really happening. Immediately we have been able to save a significant amount of water and also reduce our water bills by over £60,000 per year – quite a result! ” Rebecca Dilks, Environmental Project Manager, Thorntons plc




Executive summary


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Case studies

Supporting information


FHC signatories


Case Study Improved cleaning leads to significant savings for Tulip

Meat processor Tulip signed up to the FHC in October 2010, receiving tailored support at both site and corporate level. The company has achieved a 7.1% reduction in total water use in 2011 (compared to 2010) through the implementation of a series of initiatives.

“We have a corporate objective to reduce water use at all facilities by 20% by 2015, and have begun reviewing the amount of water we use and how we use it on site,” says Andrew Wright, Tulip Group Environmental Manager. “Our current water reduction strategy is in two phases:

1. Reduce the amount of water consumed by sites whilst maintaining the same output of production.

2. Once the above is achieved, or volume throughput increases, invest in recycling technologies to maintain the water outfall volumes at their existing levels.

“One of our biggest water users is our Bodmin site in Cornwall,” Wright continues. “The site has launched a ‘water efficiency’ sub-committee – a cross-functional team of staff from different levels within the business – with the brief of finding innovative ways to reduce water use across the site.

“The main way we identified water saving projects was through running ‘eco-treasure hunts’. These involved our cross-functional teams visiting all areas of the factory to understand operational constraints, to identify new opportunities and to challenge existing practices.” The treasure hunts identified numerous projects, including:

Amending the cleaning-in-place (CIP) system on the cookers, leading to a saving of approximately 20 m3/day.

Working with hygiene teams to focus on manual debris removal as the first stage of the cleaning cycle, thus reducing the need for high-pressure water lances. Drench hoses used to wash the floors in the oven rooms have also been removed and replaced with scrapers.

Introducing reduced flow spray nozzles to all taps and waterless urinals, and reducing flow from toilet cisterns in the welfare facilities.

The Bodmin site has achieved a 15% saving on waterusage in 2011, against 2010 data.

“The treasure hunts identified the need to measure our utility use in much greater detail. To that end, we’re now in the process of installing detailed monitoring and metering equipment to help us discover new opportunities and make further savings.”

“ We have used our involvement in the FHC to reinforce our internal KPIs and to provide additional support to our sites in identifying opportunities for water reduction. We have received free support that has proved useful to the sites concerned, and are now working with the FHC to review our efforts at a corporate level, including identifying common issues across all our sites and providing a supporting checklist. ” Andrew Wright, Group Environment Manager Tulip Ltd




Executive summary


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Case studies



FHC signatories


Case Study Warburtons reduces water use by 10%

Warburtons has a corporate target of 20% reduction of water by 2020, excluding that in product, against a 2007 baseline. The company’s water targets and objectives are incorporated into their environmental management system.

Although Warburtons is not a large water user, the company’s first Corporate Responsibility Review published in 2011 highlights its commitment to manage this limited resource better, through:

metering and monitoring: 120 meters have now been fitted in all the bakeries and these are read every week to determine trends;

the use of ‘Green Teams’ to promote awareness and encourage behaviour change;

identifying and eradicating leaks; reviewing cleaning procedures and excessive use of

hose pipes;

ensuring new vehicle washing facilities are more water efficient and use harvested rainwater where possible;

routinely switching off basket washers when not in use; and

fitting washrooms with ‘smart’ hand washing including sensors on taps, flush control on urinals and reduced flush on WCs.

The FHC has provided technical support to a number of sites and potential annual water savings of around 39,000 m3 have been identified. Group communication has improved through the use of the Green Teams and the provision of in-house water management training. The next steps for continuous improvement include:

investigating and implementing the opportunities identified; and

investigating the use of waterless urinals and water reuse on a larger scale (basket washing and vehicle wash, WCs).

Over the last 12 months Warburtons has reduced its reliance on mains water by 47,096 m3 – a reduction of 10% compared to 2010. This is despite a 3% increase in production.

When directly compared to production, the reduction in water use per tonne is equally significant. Average water use (excluding that in product) is 0.54 m3/tonne, a decrease of 0.08 m3/tonne compared to 2010 (13.4% reduction)

Overall, Warburtons is on track to meet its internal target of a 20% reduction in water use, with the support provided by the FHC an integral part of achieving this.

“ We now have a strong corporate responsibility framework in place, built around our company’s values, which provides a great platform for us to make our business more sustainable. We will reduce the amount of water we use by developing better systems of water management and continue to monitor our total usage through metering. ” Sarah Miskell, Corporate Responsibility Director, Warburtons




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FHC signatories


Case Study Water recycling plants reduce Branston’s potato processing footprint

Branston, one of the UK’s largest buyers, packers and distributors of potatoes, handles around 400,000 tonnes of fresh potatoes a year at sites in Lincoln, Scotland and the South West.

The company has already made a significant reduction in its water use at two sites by investing in water recycling plants. Branston recently signed up to the FHC to get further support and capitalise on their investments.

LincolnIn 2009, Branston invested £2 million in environmental initiatives at their Lincoln site, which integrates water recycling facilities with anaerobic digestion.

By working closely with the local Environment Agency office, Branston established the best long-term solution to water use at the site before commissioning the water recycling plant.

The recycling plant became operational in January 2010, and in its first year achieved a reduction of water use

of around 44% and a further reduction of 20% in the second year.

By undertaking a mass balance as part of the FHC site visit, it was identified that the capacity of the recycling plant could be extended further, potentially reducing water use by an additional 12,000 m3 per year.

IlminsterAt Branston’s South West site near Ilminster, growth in production has increased the volume of water needed for washing potatoes. Previously a combination of borehole water and mains water was used to meet the site’s water requirements. Using around 80 m3 of water a day meant the site was also discharging a considerable volume of effluent, so there were major cost implications for disposal as well as supply.

A better solution was required long term (from an environmental and financial perspective), and the success of the water recycling facilities at Lincoln proved that significant savings could be made. The company invested £1 million in the new water recycling

plant, which treats the waste water by removing soil and other impurities in a series of stages.

The water recycling plant has been designed to eliminate the need to use mains water for washing potatoes on site. The recycled water is stored and chilled to the optimum temperature for washing potatoes, and the debris from the recycling plant is mechanically pressed to remove any remaining water. This produces a compact ’cake’ of soil, which is then taken off site by a local farmer.

The plant became operational in April 2011, reducing water use in the first year by around 60%.

As more production lines at the site are connected up to the system, the proportion of recycled water in the system will increase. A simple mass balance during the FHC site visit confirmed that the site could reduce its reliance on mains water (17,500 m3 per year) and achieve its aim of only using borehole water and recycled water for washing potatoes in the future.

“ Water recycling helps our sites contribute to long-term sustainability within their local environments, as well as contributing to our strategy of low carbon = low cost. ” Vidyanath Gururajan, Projects Director, Branston Ltd




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FHC signatories






Executive summary


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FHC signatories

Data analysis methodologyData was received on water use in 2011 from 238 sites (of a total of 69 signatories and 276 active sites), representing a response rate of 86%. Some of this data was excluded from analysis because either the data was incomplete or required further investigation (which could not be completed in the appropriate timescale). Data summarised in this report represents 76% of sites (i.e. 213 sites from 49 signatories) and 70% of signatories’ total water use (excluding that in product).

How is the water reduction measured?The FHC measures reduction in water use against a 2007 baseline and reports on annual water use (excluding that in product) to show progress towards the industry’s targets. Production levels are taken into consideration to accurately reflect improved water efficiency with increases or decreases in production.

Hyder has worked with WRAP to develop a detailed data methodology for FHC data collection, analysis and reporting to deliver consistent reporting year on year. Signatories provide data to WRAP between January and March either through the FHC portal or directly to FHC advisors. Once received, the data is reviewed for accuracy, knowledge of the site and reporting from previous years. FHC advisors discuss any discrepancies with the site to clarify.

Water not in productSignatories report two water-use metrics:

annual total water use, which includes all water used at a manufacturing site including water in product (WIP); and

annual water in product (WIP).

These metrics are used to calculate annual water use (excluding that in product), also sometimes referred to as water not in product (WNIP). By reporting WNIP, the FHC is reporting the amount of water that can be reduced by implementing best practice on site, it is not commenting on potential product changes.

WNIP is calculated as total water use less WIP.

WNIP = Total water use – WIP

WIP is the amount of water that is used as a raw material in product. It is also sometimes referred to as ‘ingredient water,’ and is determined by the water requirements of the product and the manufacturing process.

Because the FHC’s main focus is on annual water use (excluding that in product), the main body of the report relates to this metric16. However, there are other KPIs that relate to total water use17 and for the purposes of completeness and consistency with previous FHC annual reports, these are summarised in the section below.

2011 water reduction progress: Total water useOver the past year FHC signatories have continued to reduce water use on site. Based on 213 sites with comparable data for 2007, 2010 and 2011, total water use by FHC signatories has reduced by 1.3 million m3 over the last year and circa 5.0 million m3 (10.6 %) between 2007 and 2011 (see Table 5).

Table 5: Total water use compared to baseline year for 213 sites with comparable data

Total water use

YearTotal water use

(million m3)% reduction relative

to baseline

2007 47.9 -

2010 44.1 8.0%

2011 42.8 10.6%

16 Expressed as either an absolute KPI: water use (excluding that in product) or relative KPI: water use (excluding that in product) per tonne of product.

17 Expressed either as an absolute KPI: total water use, or relative KPI: total water use per tonne of product.


Supporting information cont.As mentioned in the Progress to date section of the report, relative water use (the ratio of water use to product) provides a complementary method of assessing signatory performance. Total water use per tonne of product is shown in Table 6. A 16.8% reduction in water use (excluding that in product) per tonne of product was achieved between 2007 and 2010, and in 2011 a further 2.4% reduction was achieved. This represents an overall reduction of 19.2% against the 2007 baseline.

Table 6: Total water use per tonne of product compared to baseline year for 213 sites with comparable data

Total water use

Yearm3 per tonne

of product% reduction relative

to baseline

2007 2.95 -

2010 2.45 16.8%

2011 2.38 19.2%

2011 signatory and site summaryAs the number of FHC signatories and sites increases year on year, the baseline total water use will change. As a result, reduction in total water use cannot be directly compared with previous reports. FHC signatories represent 24% of the food and drink industry18 (based on total water use in 200719). Further work is currently being undertaken to review and update this baseline figure and will include retail, wholesale, food services as well as manufacturing. The contribution that the FHC makes towards the sector target should be clearer once the work is complete.

Comparison between years has been calculated as percentage reduction relative to the 2007 baseline.

The following elements may affect the dataset under review:

addition of signatories or sites that were recruited in the current reporting year;

continual changing mix of sub-sectors represented; sites where the production profile has changed (i.e.

change in type of products manufactured); sites that have closed during the current reporting

year and will no longer report; and sites that failed to submit complete data in time for

inclusion.




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FHC signatories

18 Based on the FISS figure of 252 million m3 of water per annum as a baseline. Further information on FISS is provided in the Commitment overview section this report.

19 Rather than water use (excluding that in product).


The Federation House Commitment - steps to progress Signatories to the FHC pledge to follow five steps to progress. Requirements under each step are detailed below.

Step 1 – Develop a water use baselineWater data for 2007 is submitted for each manufacturing site. This data is used to form the 2007 baseline. Where this is not possible – for example sites built or acquired after 2007 – the baseline is taken to be the first year of operation.

Signatories are required to submit baseline data within three months of signing up to the Commitment. For multi-site organisations, this can be taken forward as a staged process, building up to full coverage over a period to be agreed in advance between the signatory and WRAP.

Step 2 – Assess water use at each manufacturing siteEach manufacturing site maps its water usage and constructs a water balance. This step is designed to identify those areas on site that have high water usage and is used to pinpoint potential areas for further investigation. It is also a useful way to highlight where there may be gaps in the data, or to identify unknown water uses such as leaks.

Step 3 – Develop a site-specific action planOnce specific areas of water usage have been identified, a series of focused actions to provide on-site improvements to reduce water usage should be developed.

Action plans must be submitted within six months of signing up to the Commitment. Example actions might include the installation of sub-metering to better understand water use in certain areas, the opportunity to optimise cleaning including cleaning-in-place (CIP), or to investigate water reuse as part of overall operations.

Step 4 – Implement the actions identifiedThis step aims to realise the potential water efficiencies that have been identified and the associated cost savings.

Step 5 – Report annual water and cost savingsOngoing monitoring helps to track progress and measures the impact of actions that have been implemented. FHC signatories are required to report water use for each site to WRAP on an annual basis (by calendar year). This information is usually collected in January onwards for the preceding year, primarily through the FHC reporting portal.

Reporting these results annually demonstrates the contribution that the FHC is making to reduce overall water use in the food and drink sector. It also demonstrates to signatories the progress that they have made in implementing water savings.




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The Federation House Commitment - steps to progress cont.Figure 6: FHC - Five steps to progress

Head Office commits and proposes site joining dates

Develop a 2007 water

use baseline

Assess water use at each site

Develop a site-specific action plan

Implement the actions identified

Report annual water and cost

savings

WRAP engagement and support

Step 1 Step 2 Step 3 Step 4 Step 5




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FHC signatories


FHC signatoriesCompanies in bold were recruited between 1 April 2011 and 31 December 2011. One new signatory recruited during this period wishes to remain confidential.

2 Sisters Food Group Framptons Moray Seafoods RWM Food Group

ABP t/a W A Turner Freshtime Moy Park Refresco (UK)

Adnams G’s Marketing Müller Dairy UK Rowse Honey

A G Barr General Mills Natures Way Foods Thorntons

Apetito Greene King Nestlé UK Tulip

Arla Greenvale AP Newlyweds Foods Unilever UK

Bettys & Taylors of Harrogate GSK Consumer Healthcare Noble Foods Uniq

Birds Eye Hain Celestial UK Northumberland Cheese Company United Biscuits

Brake Bros Haribo Orchard House Foods Vitacress

Branston Heinz Frozen and Chilled Foods Oscar Mayer Walkers and Sons 20

British Bakels Heinz Single Service Paradise Foods Warburtons

Britvic Soft Drinks HJ Heinz Company Paramount 21 Weetabix

Burtons Foods HP Foods Ltd (Heinz) Pataks (AB World Foods) Wilkin & Sons

Coca Cola Enterprises Kellogg Europe Trading Paterson Arran William Jackson Food Group

Constellation (Accolade Wines) Kraft Pepsico Young’s Seafood

Cott Beverages Mars Premier Foods

Cranswick Country Foods Medina Processing Produce World

Dairy Crest Milk Link – The Cheese Company R&R Ice Cream

20 Signed up in February 2012




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For further information about the FHCE-mail: [email protected]: www.fhc2020.co.ukPhone: 0121 345 9014

For further information about the FDFWeb: www.fdf.org.uk

For further information about resource efficiency contact WRAPTel: 0808 100 2040Web: www.wrap.org.uk

While we have tried to make sure this report is accurate, we cannot accept responsibility or be held legally responsible for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. You can copy it free of charge as long as the material is accurate and not used in a misleading context. You must identify the source of the material and acknowledge our copyright. You must not use material to endorse or suggest we have endorsed a commercial product or service. For more details please see our terms and conditions on our website at www.wrap.org.uk

The FHC is delivered by:

Waste & ResourcesAction Programme

The Old Academy21 Horse FairBanbury, Oxon OX16 0AH

Tel: 01295 819 900Fax: 01295 819 911E-mail: [email protected]

Helpline freephone0808 100 2040www.wrap.org.uk

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