Our business activities are concerned with distribution, and as such we are not an intensive user of energy or generator of large amounts of waste. We are committed to minimising the impact of our activities on the environment, which we measure by calendar year. Our primary environmental impacts are carbon emissions due to the use of energy in our facilities, the generation of waste and water usage which are analysed below. Currently 53% of our staff are employed in ISO14001 Environmental Management Standard certified operations.

During 2006 our environmental performance was influenced by a period of significant business activity with high growth, and major Group projects including EBS rollout, the global technology refresh and the US warehouse build.

Energy intensity at our premises (i.e. indexed to Group turnover) was reduced by some 3%. Freight transport emissions indexed to turnover rose slightly in the year however, reflecting business growth and more shipments from the UK warehouses into Europe and Asia. The completion of the EBS systems integration project in Europe will reduce dependence on the UK warehouses for European order fulfilment.

A number of initiatives are underway to improve performance, with more of our businesses now sourcing electricity generated from renewable sources compared to 2005, although this remains low as a percentage of total electricity purchases. Our investigations into renewable sources of energy for the UK warehouses continue. The programme to replace legacy computer equipment across the Group with flat screen technology has now been completed.

Emissions KPIs Total Emissions
(Tonnes CO2)		 Tonnes CO2
per £m Turnover
  2006 2005 2006 2005
Premises Energy Use *# 19,945 19,290 22.7 23.3
Freight transport ** 10,759 9,594 12.3 11.6

* includes CO2 due to electricity (constant CO2 factor for all countries/ states), natural gas and fuel oil use
** based on supplier estimates, subject to approximations
# 2005 data amended to correct under reporting on emissions for gas and UK trade counter energy use

The total quantity of waste generated by our business activities increased during 2006 reflecting both international growth and also the routine large scale purchase of materials such as pallets as part of periodic replacement programmes.

Our catalogues continue to use optimised grades of paper to reduce paper consumption and where practicable distribution costs. All pulp is obtained from Programme for the Endorsement of Forestry Certification Schemes (PEFC) or Sustainable Forestry Initiative (SFI) approved sources. Catalogues and other promotional literature are printed in facilities accredited to the ISO14001 standard as a minimum, whilst two thirds of catalogues and all CDs are produced in EMAS (Eco-Management and Audit System) and “Nordic Swan” accredited facilities.

Waste KPIs Total Waste
(Tonnes)		 Tonnes Waste
per £m Turnover
2006 2005 2006 2005
Total Waste 2,507 1947 2.9 2.4
Waste reused / recycled 1,812 1401 2.1 1.7

A small reduction in water consumption was recorded for 2006 over 2005, with the main European businesses in particular reporting reductions in overall water usage rates.

Waste KPIs Total Water
Consumption (m3)		 m3 Water Consumption
per employee
  2006 2005 2006 2005
Total Water Use 40,972 41,900 6.9 7.2

Employee involvement has been encouraged with the launch of the “Bright Ideas” initiative sponsored by the Group Chief Executive, where employees contribute their ideas on business improvement. Environmental suggestions featured strongly in the feedback and a number are being investigated for adoption.