We are committed to reducing energy consumption and reducing our carbon footprint.
In 2017 we embarked on and completed a refurbishment of our head office facility. An important part of the specification for delivering this major project was to harness solutions for reduction in energy costs and emissions associated with operating the site. LED lighting and a high efficiency heat recovery VRF system were installed along with more efficient computers and monitors. The consumption data for this financial year confirms that our overall energy consumption at our office facility is 16% lower in the year following the refurbishment.
Along with our head office facility our managed businesses are within our direct operational control and we seek to deliver best practice in management of waste disposal, recycling and energy efficiency. At a commercial level we recognise that updating older buildings with new, more efficient technology can help reduce the energy demands of those businesses, lowering operating costs and improving profitability. By improving energy performance this also helps us reduce our carbon footprint and become a greener business, something we know is important to all our stakeholders.
Bermondsey Pub Company
In 2018 we have continued to monitor savings achieved from upgraded LED lighting, heating controls and cellar pumps. We have quantified the savings realised from the 8 sites upgraded to date at £56,164 which is 622,266 kWh, with all the 2016 sites savings now having exceeded the costs of their installations. From the learnings we are currently reviewing undertaking work on a further 8 sites and we will continue to work on our investments where the payback periods are demonstratively beneficial. For all projects, energy emissions and cost reduction are major considerations before final product choice is made.
Craft Union Pub Company
Throughout 2018 we have been completing upgrades on five Craft Union sites. We have taken the energy saving learnings experienced from our Bermondsey estate and replicated them across our wet-led pubs. From installed LED lighting, new heating systems, heating controls and cellar pumps, there have been savings realised of £16,894 between March and September which totals 134,258 kWh.
Where possible we have smart meters in our managed houses and use regular readings to identify and mitigate leakage, as well as using waterless urinals and cistermisers on refits where appropriate.
Our drinks delivery partner’s operating processes are focused on efficiency, which delivers environmental benefits. Pooling volumes from our multiple brand owner supply base delivers reduced costs, improves supplier performance and reduces road mileage and fuel consumption.
Our publicans can benefit from the supply of food and non-consumable products from our partner Booker. Rather than order or collect multiple products from multiple sources, orders can be consolidated and supplied to their premises in a single vehicle.
The Group continues to work with suppliers to recycle cooking oil used in the estate. 668 publicans are participating in this free service by recycling oil with Booker. In the past year, this has delivered £77,000 of cash back to publicans in exchange for 380,000 litres of oil. The used cooking oil is converted into biodiesel which is used in the Booker HGV distribution fleet.
The Group continues to fulfil its obligations imposed by the Packaging Waste Regulations based on all recyclables sold to publicans and distributed to our managed estate. We are in the third year of our partnership with SUSTAIN Drinks Packaging, a BBPA led industry initiative, which has helped us develop our waste packaging strategy.
We have been working with our waste management partner for a number of years and are seeing significant progress across our rapidly expanding managed estate towards our CSR policy goal of zero waste to landfill. We continue to promote policies and procedures that implement new greener ways to manage waste and reduce our use of single use plastic products. We initially targeted to recycle a minimum of 75% of all waste across our managed estate. This target has been consistently exceeded and now measures some 95% or nearing 5,000 tonnes per annum.
Energy Performance Standards
The Minimum Energy Performance Standards Regulations came into effect in April 2018 and as part of our compliance with this we have now improved visibility on the energy performance of our portfolio. We have worked proactively to ensure that where leases and tenancies are approaching expiry, they are appropriately assessed for their rating ahead of being re-let. Where sites with low ratings have been identified we are seeking to prioritise these by investing in remedial works. Typically this is preceded by a bespoke and comprehensive energy audit report to determine how to improve efficiency and rating. The energy saving measures routinely include draught proofing, new boilers and LED lighting. We are now looking to further commit to our compliance with these regulations by ensuring that all of the properties in our estate have a valid energy performance rating by the end of 2020. This will allow us to forward plan and future proof our estate against increasing regulatory constraints, increased energy costs and to operate responsibly.
Greenhouse Gas Emissions (GHG) Statement
The GHG statement below provides a summary of Ei Group’s Greenhouse Gas (carbon) emissions from 1 October 2017 to 30 September 2018. It gives a summary of emissions from fuel combustion and the operation of our facilities which include our offices, managed houses and company cars (Scope 1), and from our purchased electricity used during the year (Scope 2). We have adopted the operational control approach, as defined in The Greenhouse Gas Protocol, A Corporate Accounting and Reporting Standard (Revised Edition), 2004.
Therefore, emissions associated with our tenanted pubs are not included in this statement as they are considered to be outside of our operational control. For ease of comparison, the GHG statement is set out in two parts; an assessment breakdown for the head office only with the baseline year 2013 and the total combined emission statement (head office and managed houses) with the baseline year of 2015 ensuring year on year continuity as we grow our managed businesses. Due to a major refurbishment carried out at our head office in the last financial year, the building is now run entirely on electricity resulting in no gas being consumed in the last year.
When comparing the GHG statement against that reported for 2017, a 7% reduction in tonnes of CO2 emissions per full time employee has been seen at head office. There has however, been an increase in the overall emissions across the entire estate due to the increased number of managed pubs opened and operated in 2018. It is the Group’s strategy to continue to increase the number of managed pubs over the coming years and therefore it is expected that the carbon emissions will continue to rise. As stated above, we are better able to harness energy efficiencies where we have direct control so whilst the total emissions reported will rise, we will be employing the measures discussed above to manage the growth in emissions.