The John Lewis Partnership describes itself as a visionary and successful way of doing business, putting the happiness of Partners at the centre of everything it does. "It's the embodiment of an ideal, the outcome of nearly a century of endeavour to create a different sort of company, owned by Partners dedicated to serving customers with flair and fairness," the firm says.

All 69,000 permanent staff are Partners who own 27 John Lewis department stores; 198 Waitrose supermarkets; an online and catalogue business, johnlewis.com; a direct services company, Greenbee; a production unit and a farm with a collective turnover of nearly £6.8 billion last year. Partners share in the benefits and profits of a business.

The Partnership has a long-standing commitment to operate in a sustainable way. "Such values and ways of work are firmly rooted in the foundations of our business and we have been recognised as a business with integrity by external experts who monitor the performance of companies on the corporate social responsibility agenda."

Gemma Lacey is the CSR Manager for the John Lewis Partnership. Gemma has worked in CSR in the Partnership for over 3 years and previously worked in both KPMG's Sustainability team and the Body Shop International's Ethical Audit team. She is a BSc Biology graduate from Portsmouth University.

What is the Partnership's current carbon footprint and have you managed to make inroads on it in recent years?

"As a growing business, our absolute carbon emissions are increasing. The Partnership's total carbon emissions in 2007 were up 8 per cent to just under 380,000 tonnes.

"But as a result of a strict carbon management programme, we have seen a 16 per cent reduction in emissions, relative to sales, between 2001 and 2007, and we are currently on track to achieve our 20-year reduction target - to reduce emissions per million £ sales by 20 per cent by 2020 against a 2001 baseline."

Which parts of the business contribute most to greenhouse emissions?

"Over 60 per cent of our emissions are generated from Waitrose, which has more stores and longer trading hours than John Lewis. Over the last trading year (to February 2008), total emissions increased by seven per cent from Waitrose. Based on like-for-like comparisons, emissions from Waitrose relative to £ million sales were 64 tonnes per million sales in 2007-08 and Waitrose has seen an overall reduction of approximately 17 per cent since 2001-02.

"As for John Lewis, over the last trading year (to February 2008), total emissions increased by approx 11 per cent. Based on like-for-like comparisons, emissions from John Lewis relative to £ million sales have increased to 46 tonnes per million sales, up from 43 tonnes per £ million sales in 2006-07, an increase of approx five per cent."

What steps have been taken to reduce these emissions?

"John Lewis used 175 million kWh of gas and electricity last year, at a cost of over £15 million and, although energy efficiency has improved, more shops and longer trading hours mean our total energy use continues to rise. We are aiming to improve the efficiency of all our shops and offices by 20 per cent by 2010 (relative to 2003-04) through a lighting replacement programme, efficient equipment, new controls and by using technology to adjust ventilation to suit occupancy levels.

"Working with the Carbon Trust, we have distributed a new Energy Awareness Manual, 'Saving Carbon and Cutting Costs', to all shops. The publication features '10 ways to save', from switching off display and sales floor lighting outside trading hours to closing external doors in warehouses. Shops also receive monthly energy reports that enable them to monitor progress against targets, identify problems quickly and share best practice.

"Waitrose used 454 million kWh of gas and electricity to power its shops, offices, Leckford Estate and distribution operations last year, at a cost of around £25 million. This total energy use has increased over the last five years, largely as a result of significant business growth.

"However, we have been able to improve our energy efficiency and develop commercially viable low-carbon technologies, which we believe will provide a long-term alternative to fossil fuels, with support from the Carbon Trust.

"Going further in the search for green energy sources, Waitrose Rickmansworth (Herts) has the distinction of being the first Waitrose shop to be powered by our tomato suppliers. The shop, which opened in November, receives power from two tomato farms in Chichester and Stansted through Green Energy UK. The farms' combined heat and power units produce heat for the greenhouses, CO2, which helps the growing process, and electricity, which Waitrose purchases for its shop in Rickmansworth.

"All our shops currently obtain their electricity entirely from green sources, but we felt 'tomato power' was worth exploring. In addition to being environmentally sound, this surplus energy helps the farms generate additional income, so everyone benefits.

"Improving our energy efficiency will reduce, but not avoid, CO2 emissions, and we believe that renewable energy will provide a sustainable, long-term alternative to fossil fuels.

"Since October 2007, 100 per cent of the Partnership's electricity (up from 40 per cent in 2006-07) has been derived from green sources through EDF Energy. We purchase energy derived from hydroelectric generation, biomass, landfill gas, energy from waste, certified combined heat and power (CHP) plants, and wind farms, but not from nuclear power.

"Although securing green power contracts for the future remains a challenge, we are committed to doing so."

What about travel emissions?

"On the distribution side, John Lewis' commercial vehicles travelled 19.7 million miles in 2007-08, an increase of 12 per cent that reflects our johnlewis.com business being brought in-house. In Waitrose in 2007-08, our 795 commercial vehicles drove 17.5 million miles.

"Owning a commercial fleet allows us to specify the vehicles we use, the technology they use to reduce resistance and fuel consumption, and the advanced cooling systems needed for our refrigerated lorries.

"Through transport consolidation, where a preferred haulier collects from a number of suppliers before delivering to one of our John Lewis or Waitrose Regional Distribution Centres (RDCs) (see picture), we are reducing our total mileage, ensuring greater load efficiency and providing a more viable option for suppliers dealing in small volumes. Using otherwise empty vehicles on outward return journeys (known as back- and forward-hauling) saved the John Lewis 665,415 miles and Waitrose 1,583,044 miles.

"The Partnership's transport operation is its second largest contributor of CO2 emissions, after energy, so we have investigated many alternative, lower-carbon fuels. In our latest trial, the John Lewis RDC in Northampton has experimented with waste cooking oil converted into biodiesel for use in branch vehicles.

"However, doubts about the effect that biofuels have on food prices, food stocks and the environment persist, so in the absence of absolute assurances over sourcing and sustainability, we only use the amount of biodiesel required by law.

"To send a clear signal to the commercial vehicle industry that we are keen to cut the carbon footprint of our vehicles by at least 20 per cent, Partnership Chairman Charlie Mayfield has set commercial vehicle manufacturers a challenge: develop prototype eco-vans and low carbon vehicles for us to trial. The project, which could involve electric or hybrid electric vehicles or high bio-content fuels made from renewable sources such as biomethane from waste, is being run jointly with Cenex, the UK's national Centre of Excellence for Low Carbon and Fuel Cell Technologies.

"There are other moves to reduce the impact of transport - including Magna Park, our new John Lewis national Distribution Centre (DC) near Milton Keynes - and a trial to test live traffic information for route planning.

"And waste and recycling procedures continue to deliver significant improvements. For example, we aim to minimise food waste through accurate ordering and ensure any food waste we do produce is diverted from landfill. Currently 14 Waitrose branches have their waste processed via an anaerobic digestion plant in Bedford. Waste food is converted into 'green' energy in the form of electricity and high nutrient fertiliser. We expect to extend the anaerobic digestion food waste solution to at least 30 more branches early in the New Year."

What are the biggest obstacles you face in the battle for a low-carbon business?

"Firstly, the challenge of minimising our impact whilst delivering ambitious growth plans. And second, awareness-raising of the issues and their complexities, while also engaging in collaborative working."

How do you encourage carbon control over your supply chain?

"'Control' is not a word we would choose to use when talking about our activities in this area. We consider that we work in partnership with suppliers - our suppliers work with us, not for us - and together, we maintain mutually beneficial relationships that help them and their suppliers, agents and distributors, to create responsible businesses providing long-term employment .

"We are the only UK retailer to insist all our British fruit and vegetable growers adopt the LEAF certification standard. LEAF, an independent charitable organisation, helps farmers to improve standards of environmental stewardship through reduced pesticide use, protecting threatened species, conserving water and energy, and preventing soil erosion.

"We are currently working with overseas growers so that all our fruit, vegetables and horticulture will be LEAF-Marqued by 2010. Our own estate in Leckford, Hampshire, holds the LEAFMarque and is one of the LEAF farms that take part in Open Farm Sunday, when the public gets to see exactly how the food they buy is produced. "In addition through our responsible sourcing code of practice and associated compliance programme for own label (Waitrose brand) suppliers we are requesting information on environmental issues (including emissions)."

"We are also running a pilot project for the produce sector which is helping suppliers to make accurate and meaningful reductions in carbon emissions."

Of what carbon cutting measures are you most proud?

"These would include behavioural changes achieved internally to improve energy awareness, and in turn energy efficiency; successful, novel concepts like sourcing power from tomatoes (see above); establishing successful, sustainable partnerships with other parties that deliver long term solutions, such as those that see food waste diverted from landfill and pure plant oil in distribution vehicles (again, see above) and our part in collaborative projects and the visible commitment of our Chairman such as his involvement in the Cenex challenge."

What is your position on the carbon labelling of individual products?

"As a responsible retailer we are committed to minimising our impact on the environment. Indeed, our Constitution states that the Partnership 'must take all reasonable steps to minimise any detrimental effect its operations may have on the environment, and to promote good environmental practice'.

"Our current priority is tackling the CO2 emissions from our UK operations, but we are also aware of the impact associated with the production, distribution and consumption of products. We are a member of the Corporate Leaders Group on Climate Change, committed to supporting the Government in developing new, long-term policies for tackling climate change. We were also involved in the Institute of Grocery Distribution (IGD) working group on carbon footprinting for the food and grocery sector and through the BRC fed into the British Standards Institute (BSI) group, the Carbon Trust and Defra who established the PAS 2050 standard for calculating a product's or service's total carbon footprint.

"Research to date has shown that the cost of carbon footprinting a consumer product to be costly: a serious consideration as Waitrose sells 40,000 different product lines. A pilot project for the produce sector is being coordinated by the Waitrose Supplier Agronomy Group is helping suppliers to make accurate and meaningful reductions in carbon emissions. There is a need to understand the potential trade-offs. For example, a reduction in air-freighted goods may reduce carbon emissions but the removal of trade from developing countries could negatively affect the wellbeing of thousands of agricultural workers and their communities.

"Whilst we've calculated the carbon footprint for our operations since 1999, we do believe further work is needed to establish whether 'carbon labelling' can be economically viable and meaningful to consumers. We are closely monitoring the debate on carbon labelling for consumer products. We need to consider whether this information will really help customers make more informed decisions about the products they buy."

Are the government's latest carbon reduction figures achievable?

"We are committed to meeting legislative requirements. We are aware of the latest government targets (80 per cent by 2050). "We have our own targets which we believe are achievable (60 per cent by 2050).

We will continue to work towards this target. We review our own business targets on a regular basis and adjust as appropriate given operational and technological improvements and legislative changes over this long term timescale."

What advice would you give to someone taking up your position at a retail company?

"Issues are often complex and interlinked - think of the wider context and the big picture.

"Encourage collaborative working through trade associations of other third party organisations as much as possible.

"Don't make rush decisions, you could risk make the wrong choice."

Stepping Up To The Carbon Reduction Commitment

Energy intensive sectors – those companies involved in the production of aluminium, cement, ceramics, chemicals, food and drink, foundries, glass, non-ferrous metals, paper, and steel – have been covered by the Climate Change Levy since 2001.

Until now, this left a significant proportion of British industry – and its carbon footprint – untouched by government policy. Unveiled in the Energy White Paper of 2007, the Carbon Reduction Commitment (CRC) lays the foundations for an emissions trading scheme that is mandatory for all large organisations in both the public and private sectors.

The CRC will apply to roughly 5,000 organisations, aiming to cut a total of 4 million tonnes of CO2 emissions by 2020, according to government estimates. It is divided into two parts – an introductory phase of fixed-price allowances running from 2010 to 2013, and a capped phase in which the price of allowances will be determined by auction.

These dates may seem some way off, but companies likely to be covered by CRC need to take action now. The most obvious reason is that electricity consumption in 2008 is the main criterion for inclusion in the scheme. An organisation will be included if it has at least one meter settled on the half-hourly market and its total consumption is greater than 6,000 megawatt-hours (MWh) between January 2008 and December 2008. This roughly corresponds to annual electricity bills of approximately £500,000 for that period.

A three year timeframe

Importantly, this defines the criteria for entry into the scheme. Once an organisation falls within its scope all energy use must be accounted for, unless it is already subject to the Climate Change Levy, or is attributed to transport or household consumption. According to EEF, an industry body with 6,000 members in manufacturing, engineering and technology, this will include electricity use through half hourly and profile class 5-8 meters, gas through daily-read meters and all non-daily metered gas consuming more than 73,200 kWh per annum.

Many organisations covered by CRC will have complex structures, either because they operate from numerous sites, or have ownership of subsidiary companies. They may themselves be partly or fully owned by organisations based outside the UK. The CRC criteria stipulate that groups of companies will be treated as a single entity for the purposes of CRC, with the highest UK parent organisation responsible for reporting energy use.

Energy suppliers are now obliged to provide customers with half hourly metered electricity with an information pack which includes their annual consumption for 2008, and pass on the names, addresses and annual consumption figures to government.

Although the three-year introductory phase of the scheme formally begins in 2010, the first sale of allowances will take place in April 2011. Available initially at a fixed price of £12 per tonne of CO2, sufficient allowances will need to be purchased to cover actual energy use in 2010-11 and the forecast use in 2011-12. All revenues derived from CRC are to be recycled back to scheme participants, although the amount in each case will depend on the achievements in reducing emissions.

The first recycling payment is expected to take place at the end of October 2011, six months after the first round of allowance purchases in April 2011, and repeat every October for the duration of the scheme.

Each year a Performance League Table will be published, based on carbon reductions achieved since the start of the scheme. Participants achieving greater energy reductions will be placed higher up the league table than those that have done little. There will also be a system of bonuses and penalties, rising successively from 10% to 50% of the total value of allowances for each participant in any particular year.

A learning process

So overall, there is a significant amount at stake for companies, both financially and in terms of reputation. But the government’s intention is that CRC requirements will allow companies to learn as they go along. Industry bodies such as EEF are an obvious source of learning, but so to are companies that have already made significant headway with reducing their emissions.

Abbey Corrugated is one the UK’s major manufacturers of corrugated board of the kind used in cardboard boxes, producing 160 million square metres of the material a year at its site in Blunham, Bedfordshire. Around five years ago, the company decided to tackle its rising fuel bills by appointing an energy reduction team with a brief to look across the business. The team were helped by an initial Carbon Trust survey and a process improvement manager was appointed to act as a leader on good practice across the company.

Measuring energy consumption accurately was a key factor in early progress, says operations manager Adrian Swindells. “It’s very important to have the right measurement tools, and in the right place. We put meters in specific areas and that led us to focus on the shut-down and start-up of our machines. For example, we found that keeping our boilers and pumps on tickover over the weekend used a lot of energy,” he said. The new meters are also smarter, automatically populating its central databases. This means that complying with CRC will be simpler, says Swindells.

Other energy-saving opportunities included recycling the steam needed to heat plates and rollers back into the boilers, and reducing the energy consumed by lighting and leaks in compressors, for example.

Maintaining momentum

The company has made a significant effort to involve staff, including an energy competition with a first prize of £300 that yielded 36 responses. “They included some really good ideas,” says Swindells. The company has maintained contact with the Carbon Trust to ensure it is on the right track. “We had an audit that was quite intensive; it wasn’t just about sitting around the office for a couple of days talking. We had to prove that we had made reductions,” he said.

Other companies can learn from Abbey’s experience, says Swindells. Forming a team that can reach across the business, putting measurement devices in place, and drawing on external advice where appropriate are all part of a sound approach. Budgeting properly is essential, he says. “Budget for specific projects and concentrate on payback periods of up to two years. A project with a payback period of about 20 years is probably not worth thinking about.”

To date Abbey Corrugated has saved several hundred thousand pounds, but there is no mystery about achieving cost savings and reduced carbon emissions, says Swindells. “We just got smarter about our housekeeping,” he says.

Key questions:

• What benefits could we gain from an energy audit?

• How can we improve measurement of our energy consumption?

• What changes could give us payback in at least two years?