Environment
Environment Policy
The Board acknowledges its responsibilities for ensuring that environmental risks arising from the activities of its businesses are properly identified, managed and controlled, and that its businesses are compliant with all local laws, as well as with best practice – the latter where it is practicable.
Each of our two divisions has its own environmental policy, which has been approved by the Divisional Operating Boards and is integrated within existing management structures and implemented through normal business practices and procedures. These environmental policies address the following areas:
• allocating roles, responsibilities and resources;
• complying with legislation and best practice;
• monitoring, verification and auditing of compliance;
• data collection, analysis and reporting;
• risk identification, assessment and management;
• communication and dissemination of information;
• adopting technology and working practices that are modern, environmentally friendly and energy
efficient; and
• working with customers and suppliers to address environmental issues affecting our businesses.
At Group level, environmental issues affecting the businesses are the responsibility of, and reported by, each Divisional Managing Director to the Board. Environmental risks associated with new businesses are always assessed as part of our due diligence process on all acquisitions. Our operating procedures are reviewed following reporting of any significant actual or near-miss incidents involving safety issues or environmental hazards. Operational management also have to certify periodically compliance with local environmental regulations.
There were no incidents last year which posed a significant environmental risk to the Group’s operations and systems are in place to try to prevent their occurrence. These systems are reviewed periodically.
Fleet & Fuel
Menzies Aviation
The division operates various vehicles in connection with its activities. Typically, these are on and off airport activities and include: bussing, trucking (cargo between airports) and air freight couriering by AMI.
The on-airport activities involve use of specialist Ground Support Equipment (GSE) for both our ground and cargo handling businesses. The division has 181 zero emission electrically powered GSE vehicles in the UK, with many hundreds more worldwide. Other than some passenger steps and baggage or cargo carts (dollies), which need to be towed, all GSE can be driven and run on diesel, electricity or LPG. In line with our policy on reduced emission equipment in 2008 we started refitting over 45 baggage tractors with a new low emission specification diesel engine in Los Angeles, USA.
In accordance with our worldwide policy to use electrically powered vehicles wherever both specification and airport infrastructure allow, it was also decided to utilise electric tractor and trailers at our new operation in Stansted in preference to traditional diesel trucks. All GSE is maintained on a strict check cycle, approved by the manufacturers, to ensure optimum efficiency. Other equipment including hydraulic loaders, aircraft push back tugs, conveyor belt loaders, and some diesel tow tractors that pull passenger steps and dollies is, wherever possible, fitted with the latest low emission standard engines for the particular equipment type. GSE is not designed to travel long distances so the mileage is low.
We also operate a fleet of forklift trucks for warehouse activity in our cargo handling operations. Of these forklift trucks, 91% run on LPG, the remaining larger machines on diesel and their average age is between two and six years old. Our ‘Connect2Work’ bussing operation at London Heathrow has a fleet of 30 single-deck passenger buses (2007: 64) that transport some 29,000 essential airport workers daily to, from and around the airport. This service is under contract to BAA who supply our buses with fuel. This service considerably reduces private car journeys on the airport campus.
Menzies Aviation’s UK trucking operation, which includes the AMI business (which consists of mainly forwarder handling and courier and air freight wholesaling) involves a fleet of 20 38-tonne articulated units with trailers (2007: 20) which transport cargo between airports, mainly in the UK and Ireland. Total mileage for 2008 was c.1.5 million (2007: 1.6 million) miles. These run on low sulphur fuel and 18 of the trucks are less than three years old. Any future trucks will be Euro IV standard low emission vehicles, further increasing the fuel efficiency of the fleet. The vehicle fleet undergoes a six-weekly maintenance check to ensure optimum engine efficiency. The division also has trucking operations in the USA and in Sweden, most of which are provided through subcontractors.
Menzies Distribution
The business operates 432 vehicles (2007: 454), ranging from light commercial vehicles with a Gross Vehicle Weight of 2.0-tonne, up to 26-tonne articulated commercial vehicles. A further 1,211 (2007: 1,173) vehicles are operated by contractors in the newspaper and magazine distribution process. Our fleet comprises diesel-only vehicles on a leased basis. Lease terms typically run for between three and five years, ensuring a modern and efficient fleet. All new additions to our fleet since January 2007 run on Euro IV engines. A MODEC electric vehicle was added to the fleet in 2008 and is operated in central London as part of our assessment of more eco-friendly vehicles. This was the second electric vehicle to be used in our London operations. Menzies Distribution remains committed to supporting low carbon operations and has subsequently extended the trials, with a further four electric vehicles for use in London, Glasgow and Edinburgh. Third-party contractors carry out some 68% of ourdelivery mileage (2007: 68%). The same focus on costs, regulatory compliance, vehicle suitability and health and safety which influences the division’s direct operations is also applied in selection and management of such subcontractors. Mileage and related fuel cost is a significant overhead in our Distribution business. We have ongoing activity to address delivery route scheduling and driver training, both having received increased focus during 2008. The division began a complete nationwide route schedule review, which should be completed during 2009, and, following close support from, and pilot programmes developed with, Skills For Logistics, we are introducing NVQ skills investment in all drivers. During 2008, we covered 13.8 million miles per annum (2007: 13.6 million) with our fleet, using 3 million litres of fuel (2007: 3 million litres).
Company Cars
The Group currently has a fleet of 232 company cars (2007: 229). In addition to lifecycle costing, future fleet structure will reflect relative emissions efficiency, with a commitment to reduction.
Energy Consumption
At Menzies Distribution, energy consumption during the year amounted to 31m kWh, a decrease of 11% on 2007. Since October 2007, and following the carbon reduction review discussed below, all mainland UK electricity has been procured from fully ‘green’ renewable resources. The international nature and the organisational structure of Menzies Aviation does not allow accurate comparable figures to be measured.
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Waste and Emissions
Waste
At Menzies Distribution, packaging waste, namely cardboard and polythene, and office paper are by-products of our activities. We have waste compactors installed in our 19 hub branches (2007: 19). The total volume of waste uplifted in 2008 was 5,317 tonnes (2007: 5,747 tonnes), of which 16.7% (2007: 13.3%) is recycled. Under our contracts with newspaper and magazine publishers, we are responsible for the collection of unsold copies from retail outlets. For magazine publishers, we are further responsible for recycling unsold magazines, whereas newspaper publishers retain the responsibility for managing the flow of recycling of unsold newspaper copies.
Newspaper publishers outsource the physical uplift and recycling from our premises via third-party agents with whom we work closely to integrate an efficient transition from our processes to their collection. In 2008, we facilitated the consignment to recycling of 110,000 tonnes of newsprint (2007: 110,000). For magazines, we are responsible for cleansing the unsold copies of polythene wrapping and cover mounted gifts where this is required to facilitate the subsequent de-inking process. Thereafter, we manage a logistics service to consolidate unsold copy from all of our branches, primarily feeding into UPM Kymmene’s Shotton Paper Mill for conversion into future newsprint.
All unsold magazine products which are not required for resale are consigned for paper recycling. In 2008, some 60,494 tonnes (2007: 62,444 tonnes) of unsold magazines were processed for recycling. The division also handles other unsold products such as collectible partworks and sticker collections. These are sent back to publishers for subsequent re-use. The waste elements stripped from magazines to cleanse pre-recycling are currently consigned to landfill. Menzies Distribution is active in industry initiatives aimed at reducing the volumes of such material to landfill and supporting initiatives to increase consumer awareness of the magazine recycling opportunity.
Menzies Aviation staff are committed to reducing unnecessary consumption of resources and recycling packaging such as polythene, rope and pallets and as such, the packaging waste figure has reduced by over 30% during the year to 173 tonnes. Staff are encouraged to minimise the generation of waste where possible and to recycle any packaging.
Carbon Reduction
During 2007, Menzies Distribution worked with a team from Heriot-Watt University and their academic partners in the government-funded ‘green logistics’ project to establish its direct carbon footprint and (1) benchmark this in relation to the newspaper and magazine supply chain overall and (2) establish how our footprint has evolved over recent years. The exercise proved revealing and supports the strong link between operational effectiveness and environmental impact. The response to the report by Menzies Distribution in 2008 has been twofold:
Firstly, significant steps were taken to reduce carbon emissions within day-to-day practice. In warehouses and offices, this has meant a campaign to discourage unnecessary use of lighting, and collaboration with energy wholesalers to acquire Green electricity contracts. On delivery routes, Menzies Distribution has striven to increase fuel efficiency, thoroughly reviewing and revising run networks with the OPTRACK system and introducing educational programmes for drivers to encourage better practice. As discussed earlier, the division has also continued to investigate and implement transport and fuel alternatives including the electric Modec vehicle which now services the London area, and the introduction of a number of ‘Eco-Start’ sprinter vans.
Secondly, Menzies Distribution has sought ways to encourage greener practice at its partners and associates. The division’s carbon footprint amounts to around 37,500 tonnes; however, the newspaper and magazine supply chain as a whole accounts for 4.73 million tonnes. Lobbying others within the industry is therefore one of the most significant steps the division can take to reduce carbon emissions. Menzies Distribution’s newly launched website, www.enviromenzies.com is the platform from which the division aims to lead this campaign.
The most significant source of emissions in Menzies Aviation is from vehicles. Menzies Aviation is constantly reviewing all options available with manufacturers with the view to providing the most fuel-efficient equipment available. Within the last year, Menzies Aviation has converted a number of its fleet from diesel/petrol to electricity or LPG. Currently, there are 181 vehicles within the UK fleet with conversion being extended globally where the infrastructure exists during 2009.
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