Executive Responsibility:

Chief Financial Officer

Link to business goals:

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Link to business principles:

Sell
more
Be committedDo things our own wayKeep it simple

Link to principal risks:

Brand Damage, Regulatory environment and compliance

At Dunelm we always try to do the right thing, and we are committed to minimising the impact of our business on the environment.

Our Sustainability Committee is responsible for the development and implementation of environmental strategies to continually improve our recycling and waste management and reduce our energy consumption and carbon (CO2) emissions. We have an Environment & Sustainability Manager who leads and co-ordinates these efforts across our business.

2017/18 achievements

  • Introduction of Food Waste collections to over 140 stores across the country allowing reduction of waste to landfill volumes and generating energy from waste
  • All sites have been environmentally audited by our in-house audit team
  • Internal marketing campaigns completed to raise awareness
  • Landfill diversion rate has increased to 95% from 92% last year
  • 12 show and tell waste audits including waste bin emptying have been completed throughout the store network, providing valuable education and awareness to colleagues and store managers
  • De-compostable take-away food and drink containers, and cutlery have been introduced in our Support Centres to reduce the impact on the environment
  • Held a World Environment Day event at our Leicester Support Centre to raise awareness amongst colleagues of how we can minimise our impact
  • Award finalist for recycling initiatives and progress at both the National Recycling Awards and the Recycling Excellence Awards in 2018

Recycling & Waste Management

Our Policies

We aim for high levels of recycling across our business, and our Reduce, Reuse, and Recycle policy supports our approach. All stores have cardboard balers and colour-coded bins to segregate waste for recycling. Training programmes and communication to increase colleague awareness and compliance are undertaken frequently.

Our Distribution Centres in Stoke recover and process our product packaging from our DC and store operations (cardboard and polypropylene) ready for recycling.

We have dry mixed recycling collections from our stores for paper, plastic bottles and cans which is then sorted and recycled offsite. We also recycle wooden pallets and metal fixtures. All electrical waste is recycled through a WEEE compliant scheme. Any remaining waste that is not sorted for recycling within the business is sent offsite for further sortation and wherever possible we aim to generate energy from waste.

In the first instance we will aim to sell "less than perfect stock" to our customers who are looking for a bargain. We also work with over 100 charity partners nationwide to donate homewares items that cannot be sold to customers. This helps us support our communities and minimise our environmental impact.

Measuring our Impact

Last year Dunelm recycled 75% (2017: 79%) of waste. We increased our food waste collections, which is turned into energy, to over 100 tonnes in stores. Total company landfill diversion increased again to 95% (2017: 92%) and we have achieved 100% landfill diversion from our Distribution Centres in Stoke.

Waste recycled %

Waste-recycled.png

Key policy objectives

  • Our approach to recycling and waste more generally is to adopt the following prioritisation: Reduce, Reuse, Rework, Recycle
  • To minimise general non-recyclable waste across the business and reduce use of landfill and other adverse environmental impacts
  • To be fully compliant with all relevant waste legislation

What's next for 2018/19

  • Continue to improve recycling performance aiming towards 100% landfill diversion over the medium term
  • Introduce reusable cups and bottles for colleagues in our Support Centres, and promote them in-store for customers
  • Improve compliance in stores and in our Stoke distribution centres to improve our recycling rate

2017/18 achievements

  • We continued the LED programme and re-fitted 25 stores with LED lighting, as well as new store/ site installs taking the total number of our locations with LED lighting to 164 out of 184 sites
  • Our focus on energy consumption in stores continued and we appointed an energy manager to continually monitor performance and ensure that our building management systems are optimised. Due to the protracted cold winter, and the May/June heatwaves, we have incurred additional energy usage this year to heat/cool our stores appropriately for our colleagues and customers
  • We continue to monitor the performance of our stores and assess future investments. We introduced solar power to one new site in FY18 and we completed maintenance work on our existing solar panels sites to ensure their performance is optimised

Energy use

Our Policies

Our policy objective is to reduce energy usage year on year.

Dunelm manages energy usage and energy reduction initiatives on a site-by-site basis. 'Smart' meters are fitted to electricity and gas supplies and energy consumption is measured frequently with analytics tools available to help identify issues and opportunities to reduce usage. Building Management Systems ("BMS"), designed to optimise energy use, are fitted as standard across our estate.

Energy consumption is monitored by our Energy Manager in conjunction with a specialist energy partner. We target underperforming sites alongside the implementation of various energy reduction initiatives to maximise energy efficiency, while maintaining a comfortable trading environment for our customers and colleagues.

We have prioritised a programme to invest in full LED lighting at all sites. All new stores are 100% LED and in total we have retro-fitted 94 stores to this more efficient equipment. 164 sites (89% of the estate) now have LED lighting fitted.

What's next for 2018/19

  • Introduce systemised cut-offs for overrides of Building Management Systems to reduce accidental usage
  • Reduce like-for-like energy consumption by at least 5%
  • Increase weekly focus on energy consumption and challenge stores to reduce through cost targets
  • Assess investment potential for more solar powered sites, and voltage optimisation initiatives
  • Raise awareness of energy consumption across the business through internal communications

Year on year reduction in energy usage %


2017/18 achievements

  • We have reduced CO2 emissions by 15.7% year on year compared to revenue growth
  • We have trialled various electric and low emission vehicles to see if they are suitable for operational purposes, and are introducing them into our company car fleet
  • Our work to roll out more LED stores has helped reduce energy usage and lower emissions

Greenhouse Gas Emissions (CO2e)

Our Policies

Our policy objective is to reduce CO2 emissions relative to turnover year on year.

We invest in photovoltaic systems (solar power) wherever viable across our estate. We now have these in five of our stores (Leeds, Dunstable, Bristol, Cambridge and Darlington). These systems replace energy sourced through the national grid with local renewable energy. We continue to monitor performance of these installations to inform future investment decisions as we assess additional sites for solar power generation.

We continue to source electricity from 'Green Energy' supplies such as combined heat and power sources where CO2 emissions are 30% lower than the national average.

Dunelm also works with specialist partners to consult on our energy buying strategy, investments in energy saving technology and to further focus on reducing our carbon emissions.

Our company car fleet is graded on emissions and we encourage the use of fuel efficient vehicles in all schemes. Average emissions in 2018 were 110 CO2 g/km (2017: 108 CO2 g/km).

What's next for 2018/19

  • Continue to reduce CO2 emissions relative to turnover year on year
  • Introduce charging points for electric vehicles in our car parks at Support Centres and assess certain stores for suitability
  • Review and assess our company car fleet to introduce more zero and low emissions options to colleagues

Measuring our impact

Carbon Dioxide Equivalent ("CO2e") emissions data is reported using the GHG Protocol Corporate Standard (Scope 1 & Scope 2) and applies to our organisational boundary as defined by the 'operational control' approach.

The methodology used to calculate our emissions is based on the UK Government's GHG Conversion Factors for Company Reporting 2013.

Dunelm uses 'Tonnes of CO2e per £1m of turnover' as its intensity measure, reflecting the link between growth, activity and performance.

Intensity Measure – tCO2e per £1m Group Revenue