Reducing our energy consumption and Scope 1 and Scope 2 emissions on a comparable basis* as defined by the Greenhouse Gas Protocol (GHGP)**
Walgreens Boots Alliance is involved in multiple energy efficiency projects, alternative energy management programs and interaction with utilities toward programmed demand-response curtailment of the energy we use. Each business is committed to reducing its energy intensity. Across our Company, Walgreens Boots Alliance continues to invest on a prioritized basis to reduce our impacts.
In the UK, our businesses work to reduce energy use through three main strands: engaging and educating colleagues around energy consumption; investing in technology to reduce energy consumption; and sourcing electricity from low carbon generation sources. Our investments are particularly focused in the retail stores, which account for the largest portion of carbon emissions.
In the UK, Spain and elsewhere in Europe, our businesses moved forward with programs to reduce energy consumption and our carbon footprint in fiscal 2016, while sharing knowledge with our business in the United States. We will work to implement comprehensive programs in Walgreens stores and buildings in fiscal 2017 that expand on existing energy savings programs in the USA.
LED lighting replacements in Boots stores in the UK in fiscal 2016 accounted for a consumption reduction of around 7.9 million kilowatt hours, enough to power over 1,700 UK households for a year. As of the end of fiscal 2016, approximately 600 stores have been upgraded with the lighting, equating to 24 percent of the Boots UK footprint. The lighting upgrade program is accelerating progress toward the Boots UK Mayday target.
This ambitious CO2 (carbon dioxide) reduction target, agreed to following a 2007 challenge by His Royal Highness The Prince of Wales, is to reduce CO2 emissions by 30 percent between 2005 and 2020, on a comparable basis. As of the end of fiscal 2016, we were on track to reach this emissions reduction target at Boots stores that were open in 2005.
Through a variety of programs over the past few years, including the LED lighting replacement program and an EnergyCare program that encourages an energy conscious culture among colleagues in the UK, we have made significant progress. We are also investing in improved food refrigeration and building management controls to reduce carbon while improving the experience in our stores.
In the USA, through its partnership in the Department of Energy’s Better Buildings Challenge, Walgreens is committed to reducing energy use by 20 percent by 2020 across 100 million square feet of real estate, compared with consumption data from calendar 2010 that was reviewed by an external consultant (ICF) supporting the Better Buildings Challenge. Walgreens is supporting this commitment through improved heating, ventilation, air conditioning and refrigeration efficiency, conversions to LED lighting and using data to pinpoint areas for improvement.
Walgreens Boots Alliance’s retail stores in the USA and UK (Walgreens and Boots UK) made their first-ever joint submission to the Carbon Disclosure Project (CDP) in fiscal 2016, and achieved a rating of B. Submissions to the CDP in the climate category are rated on completeness, assessment of environmental issues and risks and the extent to which the Company has implemented actions, policies and strategies to address these. Compared to the market and to the individual Walgreens submission a year earlier, which received a D rating, this represents substantial progress.
Walgreens Boots Alliance also aims to reduce carbon emissions from product delivery in our Pharmaceutical Wholesale Division. In the UK in fiscal 2016, Alliance Healthcare conducted a substantial trial of new technology to help reduce carbon emissions in its fleet of more than 1,100 vehicles. In the UK, Alliance Healthcare began contract negotiations during fiscal 2016 for installing Lightfoot technology in its vehicles, a system that alerts drivers when they brake excessively, speed, or idle their engines, all of which can help drivers lower fuel consumption and carbon emissions.
*Excludes the impact of acquisitions, disposals and any significant changes in existing operations
**The GHGP, established by the World Resources Institute and the World Business Council on Sustainable Development (WBCSD), sets the global standard for how to measure, manage, and report greenhouse gas emissions; Scope 1 emissions arise directly from sources owned or controlled by the Company while Scope 2 emissions are those generated by purchased electricity, heat and steam consumed by the Company; Scope 3 refers to other indirect emissions