Energy, Greenhouse Gases and Climate Change Policy

Scope

Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-named food and beverage products. This policy pertains to all activities of Sara Lee Corporation that consume energy and emit greenhouse gases.

Energy use and greenhouse gas emissions occur during each step of the life cycle of our products from raw material to end-use.  Because energy usage and greenhouse gas emissions can affect climate change, we are committed to minimize energy usage and greenhouse gas emissions during the manufacture of our products and to work with partners, suppliers, customers, consumers and stakeholders to help minimize their energy usage and greenhouse gas emissions related to our products.

We will:

• Measure the energy usage and greenhouse gas emissions from our direct operations (GHG Protocol scope 1 and 2);
• Set energy use and greenhouse gas emissions goals for our direct operations and, where possible and relevant,  associated indirect aspects (GHG Protocol scope 3);
• Reduce energy use and emission of greenhouse gases and their precursors by a combination of improved energy efficiency, technology change and the use of biofuels, biomass and other renewable energy;
• Consider energy usage and greenhouse gases in our decision-making processes for deployment of capital and new product planning;
• Engage our employees in a company-wide culture of responsible energy management;
• Work to help minimize energy and greenhouse gas emissions throughout the lifecycle of our products by engaging with partners, suppliers, customers, consumers and stakeholders;
• Consider adoption of carbon offset programs only when we are explicitly required to do so, and only when reliable certification standards and/or strict quality assurance schemes are available; and
• Understand the impact of energy and greenhouse gas trends and the risks they may pose on our business and the wider community.

Energy Use & Greenhouse Gas Emission Performance

Energy
We are committed to reducing the amount of energy we use by increasing efficiency in our facilities. Sara Lee reviews and reports manufacturing facility energy consumption globally, regularly identifying opportunities to reduce energy use. Daily activities where energy conservation is practiced include the use of energy-efficient lighting and equipment, special emphasis on programs to help identify and repair energy waste like compressed air and steam leaks and ongoing training to encourage employees to find ways to conserve energy on the job and at home. One of the challenges we face in reducing our energy consumption is a shift in our product portfolio towards products that are more energy intensive to manufacture (e.g. liquid and instant coffee).

The source of energy consumed by our manufacturing facilities is approximately one-third purchased electricity and two-thirds fossil fuels.

The average energy consumption for our manufacturing operations between 2005 and 2011 was 3.57 gigajoules used per metric ton of production, across all product lines.  Nearly 50% of Sara Lee facilities worldwide reduced total energy consumption per unit of production by at least five percent since 2005. During this same period of time, total production decreased due to divestitures and changing markets, leading to a slight increase in the amount of energy used per metric ton of production. Total annual consumed since 2005 has dropped 14%. 

Greenhouse Gas
In May of 2011, Sara Lee reported fiscal 2010 carbon-equivalent emission data to the Carbon Disclosure Project (CDP). Scope 1 (Direct) and Scope 2 (Indirect) emissions were reported for global operations; Sara Lee began to report Scope 3 emissions, such as those resulting from employee travel, for the first time as well. As seen in the chart below, total carbon equivalent Scope 1 and 2 emissions reported to the CDP for fiscal 2010 were 1.1 million metric tons, down 12% from 2005. In the spring of 2012, we will report our 2011 emissions to the CDP as well.

The chart below shows our greenhouse gas emission intensity, representing 100 percent of Sara Lee-owned production facilities for 2005 through 2011. Our production-related CO2 intensity since 2005 has been relatively unchanged, averaging below 0.32 metric tons of CO2 emitted per metric ton of product produced at our facilities.  However, over 50% of Sara Lee facilities achieved a reduction in CO2-equivalent emissions of five percent or greater since 2005, including the majority of the largest energy-consuming facilities of Sara Lee. 

 

Successful Energy Use & Greenhouse Gas Emission Reductions
In Sara Lee’s liquid coffee factories in Joure, The Netherlands and Suffolk, Va., used coffee grounds and biogas are primary energy sources for the factories’ steam boilers. By using these renewable energy sources, they saved 5.9 million cubic meters of natural gas in fiscal 2011.

Douwe Egberts Netherlands and Belgium are participating in the Be Lean, Be Green initiative with other leading companies focusing on the sustainable transportation of goods, seeking to reduce C02 emissions by at least 20% within five years. Both locations are frontrunners in this program and have earned a “lean and green” award.

After our production comes off the line in Rome, Ga., it must pass through a cooling tunnel to lower the temperature so our employees can safely handle and package it. By revising this process and using chilled water in the tunnel instead of Freon, the facility was able to reduce their Freon use by more than 50%.

State of the art manufacturing processes used at the new Kansas City, Kan. plant decreased energy usage for cooling by 35% when compared to prior processing methods.

In its first full year of operation, the Regenerative Thermal Oxidizer (RTO, or afterburner) installed at the Joure coffee plant in the Netherlands helped achieve a 23% reduction in the use of gas compared to a coffee roasting process using a catalytic afterburner. The RTO also reduces odor and other emissions to the plant’s surrounding area more efficiently than catalytic afterburners. In fiscal 2011, afterburners were also installed at our coffee plants in Greece and Thailand.