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Memory Social Responsibility 2005-2006 EROSKI FOUNDATION

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      • 5.5 Helping to reduce the greenhouse effect. The logistics chain: optimisation and alternative fuels

Society and the environment in the value chain

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5.5 Helping to reduce the greenhouse effect. The logistics chain: optimisation and alternative fuels

We at Eroski are keenly aware that climate change is the most serious environmental problem faced by humanity, with far-reaching consequences for our health and for the economy. According to our risk matrix, transport, one of the core aspects of our business, is that which makes the greatest contribution to climate change.

One of the key elements of the new Grupo Eroski Environmental Plan is the reduction of emissions from transport. To this end, we have, over the last two years, formed a working group made up of Consumer and Logistics staff which has studied the different alternatives for the environmental optimisation of transport, with the support of outside experts.

One of the key elements of the new Grupo Eroski Environmental Plan is the reduction of emissions from transport.

The mission of this Green Transport Forum is to implement measures to help minimise CO2 emissions from Grupo Eroski goods transportation, working on the following pioneering initiatives:

  • Inverse flow logistics and eco-efficient urban distribution. We optimise routes to fill trucks and minimise the distance they travel.
  • The use of means other than trucks.
  • The use of additives. 2005 saw the commencement of a project run by experts to use a vegetable-based additive in our trucks' fuel. Test results have been very positive:
    • We have achieved a significant cut in atmospheric contaminant emissions, such as those of carbon monoxide (average reduction 77%) and nitrogen oxides (with a 34% reduction).
    • We have cut fossil fuel consumption by 2.2%. During the months of the test, we reduced CO2 emissions by 800 kg, the equivalent to planting 80 trees a year.
  • The use of biofuels. We are working on the definition and design of a pilot test to allow us to use biofuels in the Group's fleet of trucks in 2007.
  • Ecological driving. During the course of 2006, around 90 workers from the Eroski HQ received ecological driving courses organised by EVE, the Basque energy body. The 4-hour long courses contained both theoretical and practical classes, and led to an estimated 10% reduction in fuel use. More ecological driving courses are planned in 2007 for around 100 Group drivers: in this latter case, the EVE courses will be 8 hours long.
  • Guaranteeing environmental management in haulage companies. To date, nine such companies have received ISO 14001 certification. For the other six remaining companies, we are working on the progressive implementation of the standard in accordance with the e+5 approach.

The information below on greenhouse gases is not comparable in that it is calculated on different bases (see note at foot of table).

Fuel consumption from logistics activities, according to source
2004 2005* 2006*
Litres of fuel used by transport fleet 36.124.371,90 litros 47.988.410,97 litros +32,8%

*For 2005, data was provided by the distribution centres at Pinto, Getafe, Elorrio, Zubieta, Zorroza, Agurain, Cenco, Azuqueca, Zaragoza and Malaga. A Coruña and Sigüeiro were not included. For 2006, data was provided by the distribution centres at Getafe, Elorrio, Zubieta, Zorroza, Agurain, Cenco, Azuqueca, Zaragoza, Malaga, A Coruña and Sigüeiro; Pinto was not included

Direct emissions of CO2 from logistics activities (t = CO2/euros)
2005* 2006* Variation in 2006
Direct emissions** 0,032 0,039 +21,8%

*For 2005, data was provided by the distribution centres at Pinto, Getafe, Elorrio, Zubieta, Zorroza, Agurain, Cenco, Azuqueca, Zaragoza and Malaga. A Coruña and Sigüeiro were not included. For 2006, data was provided by the distribution centres at Getafe, Elorrio, Zubieta, Zorroza, Agurain, Cenco, Azuqueca, Zaragoza, Malaga, A Coruña and Sigüeiro; Pinto was not included

**Calculation method; litres of fuel x conversion factor/departures in euros

We are working on the definition and design of a pilot test to allow us to use biofuels in the Group's fleet of trucks in 2007.

Furthermore, our commitment on climate change can be seen in our participation in a number of organisations. We have an agreement to work on improving the environmental impact of transport with the Universidad Pública de Navarra, as members of the Board of Management of the Basque Country Logistics and Transport Cluster, of which we are founder members and as part of which we investigate the possibilities of minimising the environmental impact of logistics activities, specifically in the design of a pilot scheme for the use of biofuels, which should allow us to optimise performance.

We have worked in collaboration with the AECOC, the Spanish Commercial Codification Association, in the search for alternatives to road haulage, with very favourable results.

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