Manufacturing and production
Primary Packaging Distribution Retail Consumption Production
The UK food processing and manufacturing industry contains many world leading companies. The industry plays a vital role in the UK economy as a whole, employing approximately half a million people and accounting for 15% of the UK's total manufacturing sector by value. Sustainability issues at this stage of the food chain are key, particularly since this sector purchases around two-thirds of UK farm produce. Its ability to influence activities back up the food chain is also crucial.
At this stage relevant sustainability factors include greenhouse gas emissions related to the manufacturing process, which are predominantly as a result of energy use, and water consumption in factories and processing plants. The production and disposal of waste materials also poses a significant sustainability risk.
Manufacturers have significant influence up the supply chain when procuring raw materials and therefore a company's approach to ethical terms of trade and remuneration are key. Processing and manufacture often involves the use of unskilled labour and therefore labour costs and standards are also important.
Key considerations
- What are the key threats to sustainability at this stage of the food chain?
- What is your organisation required to do by law?
- What external help is available?
1. What are the key threats to sustainability at this stage of the food chain?
- Greenhouse Gas Emissions: These occur predominantly as a result of high levels of energy consumption.
- Water Use: Environmental risks occur particularly through water consumption in factories and processing plants. Water use also poses a key risk to sustainability in the drinks manufacturing industry and in areas of high water stress.
- Waste Production and Disposal: Waste food and other primary product inputs, waste packaging and waste machinery and electrical equipment are the key sources of waste at this stage.
- Fairtrade: A company's approach to ethical terms of trade and remuneration are key since manufacturers may have a significant influence back up the supply chain.
- Labour Costs and Standards: These are significant since this stage of the food chain often involves the use of unskilled labour.
2. What is your organisation required to do by law?
The EU Emissions Trading Scheme aims to bring about a reduction in greenhouse gas emissions cost effectively. In conjunction with the IPCC Regulations, which place legal limits on the level of polluting emissions produced, these pieces of legislation act as legislative drivers to limit the greenhouse gas emissions resulting from food manufacture, and ensure more environmentally sustainable methods of processing. Reductions in energy consumption by food manufacturers are encouraged through legislative drivers such as the Enhanced Capital Allowance Scheme and the Climate Change Levy, which encourage a reduction in energy consumption through the provision of financial benefits and incentives to companies (for example on the form of tax breaks for the purchase of more energy efficient equipment).
The Environment Agency Abstraction Licence penalises high levels of water use and offers incentives to reduce consumption, whilst Trade and Effluent Discharge Consents act as a regulatory driver requiring water leaving as surface drainage to meet strict standards of cleanliness. In terms of waste produced in the food manufacturing process, the Producer Responsibility Regulations require a reduction in waste from packaging, whilst the Environmental Protection (duty of care) Regulations require waste to be properly handled and stored to prevent environmental damage. Further regulatory drivers for waste include the WEEE Regulations which govern waste electronic equipment which they require to be recovered, recycled and disposed of in an environmentally sound manner.
3. What external help is available?
Forum for the Future engages with private and public organisations and aims to find practical ways for them to deliver a sustainable future as well as communicating their ideas and findings to them.
The Climate Change Projects Office is a government advisory office set up to assist UK businesses who wish to pursue opportunities arising from the Kyoto Protocol. They provide advice and support regarding greenhouse gas emission reductions and includes a database of UK companies offering such services.
The Carbon Trust helps business and the public sector to cut carbon emissions by providing advice and information on energy saving, carbon management, low carbon technologies, and explains the risks and opportunities surrounding climate change.
The Food and Drink Federation works to promote the interests of the UK food and drinks manufacturing industry through communicating industry issues and concerns to the government, regulators, consumers and the media.
Envirowise provides free, independent, confidential advice to UK businesses on practical ways to increase profits, minimise waste and reduce their environmental impact.
The British Retail Consortium is the leading trade association representing retailers. They provide reports and information to guide companies towards more sustainable practice.
The Advisory Committee on Business and the Environment provides an arena for dialogue between government and business on environmental issues and aims to help mobilise the business community in demonstrating good environmental practice and management.
WRAP works with business and consumers to enable a more efficient use of materials and greater incidences of recycling. They provide general advice as well as food industry case studies and guidance.
Are there useful sources of advice we haven’t included? If so, please let us know.
Are there key considerations we haven’t included? If so, please let us know.