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500+ UK stores + 100 global franchises
60,000 staff
30,000 product lines –
1000s raw materials
1000+ suppliers –
100,000s workers
3m customers per week
Shareholders
Stakeholders from animal rights groups to the WI

People worry more, trust less, know more, are confronted more, expect more...

BUT, consumers won’t compromise……
Quality
Service
Value
Trust
Innovation

and the evidence that change is needed is now indisputable……

M&S well positioned to take advantage of these trends….
• 100% own brand = 100% control
• Competing on value not lowest price
• It’s a part of our brand – Trust , Innovation
• Good supply partners with similar values
• Customers want to know more

Talk to customers
Extremely important
Very
Quite 22
25 %
Extremely Important
Regular food shopper
Occasiona l food shopper
Non food shopper
50
32 20 21
Regular clothes shopper
Occasiona l clothes shopper
Non clothes shopper
Not very 2
32
Not at all important
1
How important do you think it is that M&S is committed to meeting their social, ethical and environmental responsibilities?
37 27

What? – 100 point, 5 year, £200m strategic plan
CLIMATE
WASTE
SUSTAINABLE RAW MATERIALS
FAIR PARTNER
HEALTH

 Brainstorm –> Launch 6 months
 3 sustainable development managers
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60 people in ‘A team’
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‘How we do Business’ Committee – chaired by CEO
 Strategy team, delivery team and communication team
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Steering groups for each ‘pillar’

Climate Change
Over the next five years we will:
– become carbon neutral for our own operations
– Reduce energy use by 25%
– maximise the use of renewables (all stores/DCs/ Offices on green energy, lorries on 50% bio-diesel)
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– only use offsetting as a last resort (logistics and business air travel) address food miles (targets to reduce air freight, ‘flown label’,
UK/regional sourcing)
– help our suppliers and customers to reduce their emissions

175Gwh of
‘renewable’ electricity already sourced, saving
55,000t of CO
2
Key
100% renewable
85% good quality CHP
100% fossil fuel

AD Farmer’s day engaging 20 M&S
Farmers and suppliers

Bournemouth, Pollock, Galasheils
All effective measures now integrated into
‘M&S Sustainable Construction Manual’

Trial of ‘Tear-drop’ trailer, improving fuel consumption by 20% and +10% load space.

Contract signed with MAS Holdings, Sri Lanka,
Westbridge UK, and more to come in other countries….

WWF ‘One Planet Living’ carbon calculator codeveloped

Waste
Over the next five years we will:
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–
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– send no waste to landfill from our operations; reduce our use of packaging by 25%, ensure all packaging materials can be recycled/composted maximise the use of sustainable packaging raw materials put clear recycling logos on every piece of packaging reduce our use of carrier bags by 33% trial closed loop recycling in our cafes
– provide our customers with alternatives to throwing clothes away when they’ve finished with them

75% construction waste from store developments sent for recycling.
On site in approx. 60 stores

38. Packaging
(sustainable raw materials)
Recycled denim packing box trial.

WRAP symbols on all food products by end year

“Do you need a bag?”
Campaign launched

Raw Materials
Over the next five years we will:
– Wood – all FSC or recycled
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Fish – all MSC or equivalent
Polyester – made from recycled plastic
Organic – triple food sales, introduce cotton, wool
Farming – farmers meet independent standards
Water – reduce use in stores and supply chains
Free range – all fresh turkey, pork and duck
Non-food animal welfare – known source/standard
Stores – more sustainable construction materials

Launched first ever range of Organic, nut free Easter Eggs,
March ‘07.

First major retailer to sell a range of Organic Linen, launched April ’07.
50,000 shirts bought.
8,000 pieces of organic linen.

90% of the
Spring ’07 Garden
Furniture range made from FSC certified wood.

400,000 garments sold in Autumn ’07 across Womens and
Menswear….
…From 4.5m recycled bottles!

Fresh Geese, Turkey and Duck converted to
100% Free Range by end 07

Health
Over the next five year we will:
– Offer the healthiest products – salt reduction etc
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Offer easy to use information – Eat well, Traffic Lights
Engage our customers and employees – health coaches, website, cause related marketing etc

£1.3BN sales ’06/07,
+14% on LY.
30% of food sales.
1,300 products.

Launched in Jan
’07, rolling out across all FSA categories.

1,500 assistants trained between January and May ’07.

Fair Partner
Over the next 5 years we will:
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Launch a Supplier ‘Exchange’ to support change in our supply chain
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Be a leader at managing labour standards
Extend buying pledges for UK farmers
Sell more Fairtrade products (cotton, sugar, jam, produce)
Support communities in the UK and overseas

 More in-country resources
 Networks of support for suppliers
 Unannounced audits
 Worker helpline
 Responsible buying

M&S Supplier Exchange launched.
Information provider. Sharing best practice.

570 Store and Head Office ‘Plan A Champions’ appointed.

Conversion to
100% Fairtrade sugar in Jams and Conserves.

20 million Fairtrade garments over 12 months
£100m RSV.
10% of the M&S cotton business.

10% green crusaders ----> Plan A as whole
30% if its easy -----> M&S brand short hand for doing their bit, Oxfam, hangers, bags
35% what’s the point? -----> Demonstrate part of whole e.g. carbon calculator
25% not my problem ------> Diminishing group, driven by poverty, some issues resonate e.g. animal welfare

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Great rally cry – strategy galvanises enthusiasm/ideas/effort
Scope – across the business, not cherry picking
Integration – not big CSR team, part of everyone’s job and objectives
Innovation – must be seen to drive business forward, new products (cotton, fleece), new services (home)
Partnership – Oxfam, WWF, Groundwork, WRAP,
Carbon Trust, Supplier Exchange