Responsibility Environment

Environment

The use of energy throughout our business has been re-evaluated over the past few years (whether it be in production transportation or building stock). This has been triggered by increases in energy costs, regulation and a new awareness of opportunities for improving energy efficiency. For Marston’s improvements in energy utilisation through green technology, building design and behavioural change are intended to drive significant savings in emissions. Heightened environmental awareness, costs, regulation and advances in technology are also driving Marston’s to develop new programmes in water use and recycling.

Water management systems have been rolled out to all our managed pubs with a significant annual saving in consumption. Kitchen waste segregation and recycling is increasing year-on-year, minimising landfill tax.

Mandatory reporting of emissions for the year ended 31 March 2016 reported in our Annual Report 2016

Greenhouse gas emissions:
Fuel Type 2014 CO2 tonnes 2015 CO2 tonnes 2016 CO2 tonnes
Electricity & gas 121,533 128,611 117,171
Petrol & diesel 10,644 11,809 11,665
Refrigerants (brewery) 50 62 65
Refrigerants (pubs) 4,161 4,393 4,179
Total 138,647 144,975 135,591
Greenhouse gas emissions intensity ratio
2014 2015 2016
CO2e tonnes per £100k (turnover) 17.76 18.41 15.09

Note that:

  • We have reported on all the measured emissions sources required under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013
  • Data collected is in respect of the year ended 31 March 2015 and 2016, being the period for which our carbon emissions are reported under the Carbon Reduction Commitment Energy Efficiency Scheme
  • Conversion factors for electricity, gas and fuel are those published by Defra for phase 2 of the Carbon Reduction Commitment Efficiency Scheme

Environmental data

The energy use within Marston’s direct control is significant. In the 2016 financial reporting year (the year ended 1 October 2016) our total fossil fuel consumption from electricity, gas and transport fuel (retail and trunking fleets) produced 125,035 tonnes of CO2 (2015: 123,814 tonnes).

Electricity and gas usage are dominant. As we move towards higher food sales, it will become increasingly difficult to decrease our absolute energy use and greenhouse gas emissions year-on-year.

Gas and electricity usage within the breweries and managed pubs is automatically monitored and this data is validated continuously. Energy use is collected by AMR, and also from manually read meters. This data is cross checked against expected consumption. Fuels used by delivery trucks and drays is recorded and validated against expected values. Other emissions are estimated and are relatively insignificant.

In the 2016 reporting year Marston’s used approximately 154 gigawatt hours (GWH) of electricity throughout our operations. This is a slight increase on 2015 figures when 147 GWH was used. Around 16 GWH (10% of the total) was used in our five breweries; the remaining 90% was consumed in our pubs. We also used 212 GWH of gas in our operations (2015: 254 GWH). Of this, 26% was used in our breweries and 74% was consumed in our pubs.

Managed and Franchised pubs

Individual pubs

The table below represents average energy consumption and CO2 emissions per pub within our managed and franchised portfolio for which we consider the data collated to be reliable over the previous three years.

Year Gas
kWh
Electricity
kWh
Total
kWh
CO2
t/y
2015-16 249,826 214,525 464,351 139 Destination pubs only
2014-15 291,258 206,332 497,590 144 Destination pubs only


When comparing 2016 data to that of 2015:

  • Gas use per managed pub has decreased by 15%
  • Total energy used per managed pub is down by 7%
  • Carbon dioxide emissions per managed pub are down by 3%

Reasons:

  • A milder winter in 2016 has helped reduce gas heating costs
  • Increasingly food focussed pubs which is more energy intensive than drink sales has offset some of the savings in consumption due to the milder winter
  • Energy efficiencies – see energy management below have helped mitigate the increase in activity

Total of managed and franchised pubs

Year Gas GWh Electricity GWh
2015-16 155 137
2014-15 196 131
2013-14 189 121
2012-13 210 148
2011-12 145.1 119.6
2010-11 129.9 119.13


The increase in energy use can be attributed to the net effect of our new build programme and the rollout of our franchise agreements adding to costs, and energy efficiencies helping to mitigate the increase (e,g, installation of LED lighting).

Energy management

Our managed pubs represent the largest contributor to the carbon footprint under our direct control. There are dedicated energy dashboards for the pubs to highlight usual trends in energy usage, and identify specific pubs with high usage

A programme of installing green technology is ongoing:

  • LED lamps;
  • Voltage optimisation;
  • Heating control – optimised heating controls/or new boilers dependent on the quality of the existing boiler and controls; and
  • Cellar cooling in the ground cellars on the managed estate

ISTA

Over the last year ISTA have captured Marston’s utility data from invoices for the multiple managed pub sites for the purpose of better energy management. Every detail of every bill was entered into the ISTA invoice processing. Clean and current electricity and gas data, per pub, was then made available for reporting and analysis by Marston’s. The energy consumption data captured by ISTA from meter readings and invoices is input to a database that is the used to provide the figures for the Carbon Reduction Commitment (CRC). This provides an integrated approach to the compilation of the CRC footprint and annual reports to ensure a high degree of accuracy in the measurement of carbon.

Energy Profile

Throughout the year research has been conducted into the energy profile of individual managed pubs. The profile of similar pubs has been compared to identify the reasons for higher levels of energy use.

The Take Control programme includes monitoring of performance, reporting usage against targets, the preparation and dissemination of operating procedures and practices to control energy use, awareness raising activities and training. There is a feedback mechanism for our pub managers and others to report issues and opportunities.

Take Control programme

Energy reduction initiatives

Catering
Throughout Marston’s portfolio of pubs food sales have steadily increased. As such the energy demand of our kitchens has also increased. To increase efficiencies and minimise costs, Marston’s have worked on the catering specification to reduce the energy consumption and increase life expectancy of catering equipment. Innovations have included highly efficient fryers that filter oil to increase oil life, and high efficiency chargrills.

Refrigeration
Traditional fluorocarbon refrigerants are ozone depleting, or have a significant global warming impact. As such Marston’s are committed to reducing the use of these HFC’s. All of Marston’s cabinet refrigerators purchased are high-energy efficiency hydrocarbon units, which are manufactured in the UK.

LED Lighting
Lighting makes up a significant proportion of the electrical consumption of a pub. In response to the challenge to minimise this energy use, Marston’s have rolled out LED lighting. Generally LED lighting consumes 80% less energy than tradition incandescent lighting. We install LED lighting in all of our new-builds and refurbishment projects.

Pitcher & Piano LED Retrofit – A Case Study
Pitcher & Piano was identified for installing LED lighting due to long lighting hours, high bulb replacement costs and high power consuming lighting. The following graph shows the saving attained in the LED rollout.

saving attained in the LED rollout

Voltage Optimisation
Voltage optimisation increases the efficiency of electrical equipment, whilst also preventing electrical surges. We have installed voltage optimisation in all of our new-builds and have retrofitted to over 40 sites. The units are more efficient and have a considerably reduced embedded carbon footprint, meaning carbon payback is reduced by 17 per cent.

A BREEAM assessment uses recognised measures of performance, which are set against established benchmarks, to evaluate a building’s specification, design, construction and use. The measures used represent a broad range of categories and criteria. They include aspects related to energy and water use, the internal environment (health and well-being), pollution, transport, materials, waste, ecology and management processes. Buildings are rated and certified on a scale of ‘Pass’, ‘Good’, ‘Very Good’, ‘Excellent’ and ‘Outstanding’.

breeam

Many of our new-builds are now built to Breeam Standards; we have achieved many Breeam Very Good’s and one Breeam Excellent.

BREEAM Excellent New Build - Blaina Wharf, Newport

Blaina Wharf, Newport

Blaina Wharf has successfully achieved BREEAM excellent. BREEAM is an environmental standard for sustainable building design, construction and operation. It has become one of the most comprehensive and widely recognised measures of a building's environmental performance. This has been achieved by installing the latest energy saving technology. Photovoltaic panels have been installed to generate renewable electricity from the sun’s energy. Air Heat Source Pumps have been installed, which transfer heat from the atmosphere outside to inside the pub. The lighting is provided by LED that uses approximately 80% less energy than conventional lighting. Fresh air is used to cool beer when temperatures are low enough outside. The building has been constructed adhering to the BREEAM excellent standard, ensuring the environmental impacts of the building are minimised during its life cycle.

Taverns and leased pubs
Our tenants and lessees are responsible for the energy used in the pubs they operate. However, we aim to support their efforts in energy and carbon management by the transfer of our knowledge and experience. Through our online portal – “My Marston’s Online” - we offer information on energy saving strategies.

We are currently investigating innovative finance solutions to assist with the implementation of measures and will be offering training and support.

Energy - Breweries

Brewing is an energy intensive process which uses both natural gas and electricity. Last year our breweries produced 17,576 tonnes of carbon dioxide (down from 17,872 tonnes in 2015).

Our breweries are highly committed to energy efficiency. In the last four years we have invested in energy and carbon management projects: better monitoring and control, improved refrigeration and efficient lighting.

There are also extensive energy monitoring systems at the two largest breweries at Wolverhampton and Burton.

There is a general correlation between relative change in production volume and performance – an increase in volume invariably leads to an increase in efficiencies, and corresponding reductions in tCO2/tonne product.

Brewery 2015 tCO2/t
product
2016 tCO2/t
product
Wolverhampton 0.111 0.098
Burton 0.119 0.117
Cockermouth 0.145 0.207
Ringwood 0.09 0.090
Witney 0.104 0.063

The difference in tCO2/tonne product between the breweries is a consequence of the different processes that operate in each. The Burton Union System at Burton is less energy efficient than the fermentation methods deployed at Wolverhampton. Cockermouth has the lowest production volume which tends to increase the average in tCO2/tonne product because of the fixed element of the total energy cost.

Energy - Transport

We have a large fleet of trunking and retail vehicles. Our fleet vehicles covered 6.4 million miles this year (2015: 7.65 million miles) - the equivalent of travelling around the earth over 300 times. For 2016 they have operated on a fuel efficiency ratio of 8.25 miles per gallon (2015: 9.64 mpg). This mileage equated to a total consumption of 778,000 gallons of diesel last year and CO2 emissions of 9,487 tonnes.

We aim to reduce the fuel efficiency ratio of our fleet, and we monitor our mileage per gallon monthly to identify potential inefficiencies. We also measure miles travelled per delivery and miles travelled per barrel to ensure that our routes are optimally efficient.

In the coming year we are looking to implement a new system to monitor driver efficiencies. This will consider driver safety, but also have a fuel efficiency component.

Improvements in fuel efficiency have so far been down to the use of new vehicles, and the following initiatives:

  • All vehicles that run into the London area are Euro III compliant and meet the standards required by the London Emission Zone (LEZ)
  • We have installed satellite tracking in all our retail delivery vehicles, which has helped with more efficient planning of routes and management of the logistics operation

Water Management

We use water in our breweries both as an ingredient of beer and for cleaning barrels and brewing equipment, and in our pubs for everyday use and washing in our kitchens.

Within our managed pub and franchised portfolio we have rolled out water management systems in 2014 which have driven significant improvements in efficiencies.

Water - Managed pubs

Our pubs use water in a number of ways: cooking, food preparation, drinking, cleaning and flushing. Water usage historically has not been as well metered as other utilities.

Since 2012 Marston's has sourced new technology to better manage water use in the toilets of its managed pubs including urinal management systems to control the amount of flushes depending on customer usages.

Water Management Systems

Our pubs use water in a number of ways: cooking, food preparation, drinking, cleaning and flushing. Water usage historically has not been as well metered as other utilities.

Since 2012 Marston’s has sourced new technology to better manage water use in the toilets of its managed pubs including urinal management systems to control the amount of flushes depending on customer usages

water consumption

Water - Breweries

Water consumption is a key performance indicator for site managers at all five breweries and we continually monitor our usage to identify potential reductions. Last year, our breweries used a total of 840,317m3 of water (872,532 m3 in 2015). This is taken from both the mains supplies and from boreholes.

At Burton we currently use up to 6.97 barrels of water for every one barrel of product brewed and bottled. This ratio is 4.96 at Wolverhampton and between 2.17 to 4.37 at the other three breweries. The difference in ratios is the result of a more modern brewing process at Wolverhampton, whereas Burton uses larger numbers of small oak barrels in our more traditional process, the Burton Union System.

We also look at our water efficiency in terms of water used in proportion to effluent produced. In 2016 at Burton 69% of the water brought on to site was eventually discharged as effluent to the sewer (2015: 63%); at Wolverhampton this ratio was similar at 71% (2015: 68%). The industry average is approximately 44% (BBPA) which our three smaller breweries are closer to. We are trying to minimise our water use at Burton by cleaning plant with recovered water from the clean rinse phase of cleaning tanks and pipes.

We work with water authorities and the Environment Agency to ensure that we meet standards for the disposal of rainwater and effluent. Last year we did not have any breaches of regulations or compliance failures.

Waste Management

Group

We produced around 53,347 tonnes of waste in total in the 12 months to September 16 (2015: 55,577 tonnes), of which, 27,829 tonnes came from our brewing processes and 25,518 tonnes came from our managed pubs. Of this total we recycled 81.2% (2015: 81 %); the remaining waste was sent to landfill.

Managed and Retail Pubs

Waste Management At Marston’s, we understand the importance of managing our waste responsibly. Food waste, empty bottles, plastics, cardboard and cans are all part of our everyday lives, and within our industry we see this waste on a much larger scale. The UK catering industry produces 3.4 million tonnes of waste every year, and we at Marston’s generate around 30,000 tonnes though our pubs and restaurants. As a company, we look to avoid, reduce and reuse our waste, but where that is not possible we aim to recycle as much as we can.

In 2015/16, we recycled 63% (61%: 2014/15) of our waste from managed and retail pubs with the below pie chart showing the material breakdown.

wise up to waste Working with our waste partner, UK Waste Solutions (UKWSL), we are able to offer a tailored, full recycling service for each site. Currently, we recycle:

  • Glass in 954 of our managed and retail pubs (2014/15: 942), amounting to over 7,000 tonnes in 2015/16
  • Plastics, cardboard, paper, tins and cans in 818 of our managed and retail pubs, amounting to 5,500 tonnes in 2015/16 (2014/15: 4,800 tonnes)

We are in the process of rolling out a food recycling service across all our managed and retail pubs. Currently 470 of our pubs separate out food waste for recycling (2014/15: 336). Our food is recycled by anaerobic digestion (AD) producing biogas which is burned on-site to generate electricity. In 2015/16, Marston’s food waste generated enough electricity to power Wychwood Brewery for 1.7 years.

Our Wise Up To Waste campaign is designed to make our staff think before they throw so more of our waste can be recycled and we can reduce our impact on the environment even further.

Used cooking oil recycling

Each year we collect over 20,000 litres per week of cooking oil from tenanted and free trade pubs which was recycled by a specialist contractor into bio-fuel. The oil converted to bio-diesel is sold generating additional revenue.

Breweries

Every year Marston’s recycles close to 98% of the waste produced by its breweries.

The waste from our breweries such as the malt, hops and waste beer is recycled as animal feed after brewing; we also dispose of other waste such as glass (cullet), metals, cardboard, paper and polythene through recycling contractors.

A centrifuge was installed in Wolverhampton brewery to reduce effluent. This concentrates waste yeast rather than disposing of it. It also improves the beer quality and reduces the environmental impact of the waste.