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Halfpenny could use a local organic wheat farmer and we could measure this by how much of our wheat comes from these farmer(s). Aiming for 100% of our wheat to come from local organic farmers by 2040. This would be appropriate as it keeps local organic wheat farmers in business and it could also be an incentive for customer to want to buy our products.

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Waste Reduction and Recycling:

One of the aims of Halfpenny is waste reduction. we can calculate the waste generated against waste recycled. the percentage shows how much of our wastage is being recycled.

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Distribution miles:

We can measure the miles travelled by our our delivery drivers against the carbon emission if any. The lower the percentage the better we are performing. The whole fleet going on to EV will certainly help this.

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An aim of Halfpenny's could be to maximise use of recyclable materials in production and/or day-to-day operations - this could be measured over a number of years with a view to increasing the percent year on year

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% of materials wastage in the production process

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% of materials wastage in the production process

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Halfpenny can calculate this by implementing a process to weigh the materials wasted during the manufacturing process. Each quarter, a review will be undertaken to analyse the wastage %, with the aim of reducing this % each quarter. The goal is to ultimately reach 0% materials wastage by using materials which cannot be reused in production in other ways such as compost. This KPI aligns with Halfpenny's sustainability goals but could also help us save money in production by reusing materials.

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A cumulative 10% reduction in CO2 Emissions produced by each of our product lines, annually. This would be calculated by assessing the carbon factor of each of our materials used in the production process such as the fertilisers used during the cultivation of our wheat. This is important as we can reduce our carbon footprint over time making an ethical contribution and making our brand more reputable at the same time.

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Material Waste Usage – this would be a useful KPI for a few factors, it can be used to ascertain how much volume of waste is generated in each period this would benefit the company financially as a reduction in waste would cost us less in materials and also in wastage/removal costs but for sustainability the company would do well ethically and morally by trying to have a net zero waste scheme, by accurately measuring our waste usage KPI this should allow us action this. Building on the companies reputation.

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Ensure all suppliers are certified as "sustainable" by 2030. Monitor the percentage of suppliers certified as sustainable. Higher percentage overall reflects commitment to sustainability whilst working towards the overall target

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Distribution

One of the main things with distribution of products to retailers would be the fuel consumption used by delivery trucks. Therefore we can change out fleet of delivery trucks to be powered by Electric and no longer petrol. This would be measured by comparing how many electric vehicles we have as opposed to petrol trucks and aim to be fully changed to electric for our overall company goal of net zero by 2040.

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% Packing materials which are recyclable

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% Packing materials which are recyclable

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Halfpenny has a goal of using sustainable materials. Packaging is one of the most visible elements of the product to the consumer and moving towards fully sustainable options enhances image. It also aligns with customer expectations for eco-friendly retail. It would be caclulated by looking at the total weight of recyclable packaging used divided by the total weight of all packaging used. It could be measured across proportion per batch or per year.

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KPI 1 – Emissions saved from the usage of Electric vehicles compared to regular petrol/diesel engine vehicles. Could set a target of having a full fleet of EV by certain time period. One of the aims of Halfpenny is to reduce emissions and become carbon neutral by 2040, this KPI strongly indicates whether they are on track to meet its emissions targets.

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Halfpenny could look to invest in solar panels on their premises as a source of energy. This could be measured by how much re-usable energy is coming from the solar panels. This is appropriate as it will result in needing to use less if any over time non renewable energy sources, this incorporates with 2040 net 0 mission.

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measure energy usage per mile travelled on deliveries each month. Measures how efficient the EVs are and provides opportunities to improve practices and efficiency, such as installing more charging points. More efficient refrigerated vehicles etc

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1. Materials Wastage in Units

1. We should use this as a metric for sustainability to ensure we are not creating products that we then need to discard.

2. Measure this through amount of products we throw away as a % of total production

2. Percentage of Deliveries with Use of Sustainable Transportation

1. We should employ a strategy that increases our use of evironmentally friendly transportation, using things such as electric vehicles for deliveries to retailers.

2. We can measure this using either number of deliveries using non-polluting anc comparing that directly to our alternative delivery methods (such as traditional gasoline lorries) and then calculating the percentage of sustainable deliveries as a total

3. Energy Usage in Units

1. This is a great measure for us to see exactly how much energy we are using within our factories in the manufacture of bread and then attempting to find solutions to decrease this number. This measure could then be compared to previous years to provide a benchmark for us to try to decrease each year.

1. This could be through simple initiatives like motion censored lights, or finding lower power intensive machinery, as long as our product is not impacted.

4. Sustainable Packaging as a Percentage of Total Packaging

1. This KPI would enable us to see how much of the packaging we use is recyclable

1. We could measure this as a % against our current portfolio of packaging that is not recyclable.

2. This metric directly allows us to see what amount of our packaging can be reused in other packaging, versus how much has no alternative use after we have used it.

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1st KPI delivery numbers per km driven, this would be measured on a per-month basis and would be calculated as total orders delivered in the month divided by the number of km our vans drove over the month.

As a part of our commitment to sustainable practices and our commitment to net 0 carbon by 2024, we aim to minimise the number of kilometres travelled. This KPI would help us monitor how our aim is being achieved each month and can be compared on a yearly basis too.

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Halfpenny could achieve 20% of their Energy Consumption to be through renewables energies such as Solar or Wind within 5 years. This could be measured by selecting energy suppliers each year who utilise renewables ad also by making a plan to install solar panels on our factory roofs. This is important as it allows us to enhance our brand reputation and be seen as pioneering in our sector. This would also attract free publicity from forums and TV programmes we have seen before and alleviate some of the pressure from the growing health concerns that are affecting our sales.

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This KPI  would allow us to acknowledge how much energy consumption we use and how we could reduce this to become more eco friendly there are numerous ways to drive energy whether it be through solar power or biomass energy which can be used by using crops and wood to burn which may be a benefit in this company due to the nature of the business and can be a use of obsolete stock. Energy consumption is a big factor of production companies so by using other energy sources this would rate us higher towards our sustainability target

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This metric links with production efficiency and also Halfpenny's environmental footprint. As energy costs and carbon emissions are under increasing scrutiny, tracking useage per batch will help assess whether production changes such as new artisan bread methods are sustainable. It is also helpful in building a case for investment in energy-efficient machinery, especially given the equipment breakdown issues. It would be calculated as Total energy consumed divided by total number of production batches.

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Halfpenny have the opportunity to use offcuts of bread for bi-products like breadcrumbs or animal feed. We could calculate how much offcut bread we have and what % of it is turned into a new bi-product. This is both sustainable and good for offsetting production costs/ new revenue stream

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SMART KPI - Measure input waste/ excess material on a monthly basis. This could be measured by multiplying the amount of product by the standard material required per unit, and comparing with the actual materials purchased - inventory. This would allow the company to increase efficiency by aiming to narrow the gap, reducing unnecessary expenses.

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A second KPI that could be implemented by Halfpenny is related to their energy and oil consumption, metrics which are easy to track and compare to other companies in the industry. This could be done through a transition to electric vehicles over time, for example

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Introduce a fully electric fleet by 2030.

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Introduce a fully electric fleet by 2030.

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This KPI will help us work towards our goal of becoming carbon net zero by 2040. By 2030, Halfpenny will retire any vehicles which are not electric, and introduce a fully electric fleet for goods distribution.

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% Distribution routes using EV or low-emission vehicles. 

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% Distribution routes using EV or low-emission vehicles. 

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Distribution is a major area of concern in terms of emissions. As partnerships with national retailers are expanded this KPI would ensure that Halfpenny is monitoring and aiming to reduce transport-related carbon impact. It supports long-term targets for fleet sustainability and may also help us meet future retailer or regulatory demands for greener logistics. It would be calculated as number of delivery routes using EV / low emissions divided by total number of delivery routes.

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Water Usage:

While water maybe used in bread making process as direct material, it is also used for other purposes like cleaning or cooling down machinery. We should aim to lower the water usage to minimum. We can calculate this KPI against our ouput. How much water used against each unit and aim to bring it down.

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We could measure this by looking at how often we distribute products and whether there is an alternative way of doing this, this could be by charging vehicles in off peak tariffs and less journeys if possible this would also help Halfpenny to become more sustainable by minimising journeys if possible, we are already improving on our delivery schedules so we should be able to compare prior actuals to this years and see if the impact has been successful

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% of raw materials sourced from sustainable suppliers

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% of raw materials sourced from sustainable suppliers

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This KPI would track and improve the proportion of sustainable suppliers used for raw materials, acting as a good response to the bad press received from the TV documentary. It will ensure Halfpenny is sourcing responsibly especially for ingredients in the plant-based ranges. This could also include using british farms for produce over importing from abroad. This is also a step towards transparency of supply chain which is a growing expectation in a health-concious market.

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A 10% decrease in distance travelled in km for our sourced flour, yeast, grains and seeds in the next year. This could be achieved incorporating location as an attribute on a supplier score card, or increasing the weighting of the attribute amongst others. A lesser distance would result in a more favourable supplier. This would allow for the carbon footprint of the raw materials to be reduced, as well as investing in the local farmers and land. 

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A 10% decrease in distance travelled in km for our sourced flour, yeast, grains and seeds in the next year. This could be achieved incorporating location as an attribute on a supplier score card, or increasing the weighting of the attribute amongst others. A lesser distance would result in a more favourable supplier. This would allow for the carbon footprint of the raw materials to be reduced, as well as investing in the local farmers and land. 

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2nd KPI would be raw material waste as a percentage of total material used in a month. This would be calculated by dividing the total, for example, seeds wasted in the month in kg by dividing it by the total seeds used in kg within the same month, multiplying by 100 to show the percentage.

This would help us monitor the waste of ingredients and eliminate inefficiencies, leading to help with cost control and staying within our sustainable practices and goals.

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Halfpenny could aim to have at least 5 EV Lorries within their fleet by the end of the financial year. This can be measured by replacing depreciated assets in our fleet with newer EV models as they come to the end of their life cycle. This is important as our emissions and carbon footprint would be greatly reduced and as technology progress EV could be seen as a cost effective solution to the rising price of fossil fuels. This also assist us in meeting our net zero by 2040 goals and enhance our brand reputation. Due to our commitment to having a sustainable brand we may also see our products taken on by larger and more expensive retailers allowing us to break into a new market.

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Carbon footprint:

Lowering down carbon footprint is one of the mission of Halfpenny. It can be measured by measuring carbon emissions yearly against our output and aim to reduce the carbon emission per bread.

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To minimise the distances travelled by delivery drivers, Halfpenny could look to set up warehouses in more locations with stock at the ready. This would mean the distances covered by drivers could be reduced, although they would also have to be wary of the energy consumption caused by more storage facilities, which would likely need to be temperature controlled. Potentially, they could look to create partnerships with local suppliers or supermarkets, allowing them storage space

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Order rejection rate - While the previous KPI measured the fuel efficiency of deliveries, it is also important to monitor the effectiveness of these deliveries. By measuring order rejection rate Halfpenny will be able to identify the number of damaged goods delivered to retailers as well as potentially where they are oversupplying certain retailers past what is demanded. This will enable them to improve efficiencies in the delivery processing by providing the correct delivery sizes, whilst also identifying where investment is needed. Perhaps in this case investment may be required to safely store bread in order to prevent rodents or fungus from damaging the orders whilst they are shipped.

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Energy usage

We could look into new, innovative machinery which are more energy efficient and processes the wheat, flour or grains more cost effective and faster. This could be measured by the time it takes to process the ingredients for each loaf and compare it against both the cost and time of a new machine used. This allows Halfpenny to have the most cutting edge machinery on the market but a one which will be saving the planet

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Sustainable packaging using biodegrable/recyclable materials. See what the current packaging used and their emissions, and then compare this with other sustainable packaging, with an aim to switch to more sustainable packaging such as biodegradable/recyclable materials by 2035, to align with company mission to become carbon neutral by 2040.

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Halfpenny could look to use all electronic or hybrid vehicles to deliver their products to retailers. They could measure this by how many electric/hybrid vehicles they have in their fleet and aim to reduce the percentage year on year of non electric/hybrid vehicles. This would be appropriate as they aim to be net 0 by 2040.

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Halfpenny could aim to reduce their water wastage by at least 30% over the course of 2 years. This could be measured by taking the water consumed throughout the rpocess of producing a gatch of eacch product and dividing by the products per batch, and then reassessing annually to monitor progress. This is important firstly as it will reduce our water bill and increase the gross profit margin on each of our products. It also allows us to innovate during our production process which may lead to cost savings elsewhere such as a reduction in logistical costs etc. We would also be seen as a more reputable brand and any money spent towards achieving these goasl would be reflected in an increase in profits.

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With Halfpenny having a keen eye, from their inception, of sourcing the highest quality materials from local suppliers. Halfpenny can find suppliers which, not only, specialise in the ingredient, such as grains but specialise in the farming of this too. This could be measured by material wastage to materials successfully processed and final products made. Halfpenny would then be able to view the amount of money that could be saved by using the new supplier as the wastage would be reduced

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Distribution of products – we need a KPI to track the success of our distribution of products. We need to monitor the % of products that are despatched within the 2 days of production. This will help us see a clear target of whether were meeting our clearly defined goal.

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3rd KPI: the total energy used in the month to charge our distribution fleet EV as a percentage of total energy consumption within a specific period, like a month or a year, This KPI would be calculated by dividing the total EV charge usage in the period divided by the total electricity usage for the company in the same period (in kilowatts or could be done in monetary terms) multiplied by 100 to show figure as a percentage.

This KPI would again help Halfpenny to achieve its carbon-neutral aim and could lead to a better understanding of the cost of charging EV or other departments if done per department, leading to cost savings and increased profitability. Could be compared with kilometres driven calculated in the 1st  KPI to show better understanding if the cost increased do to more km driven in the period or due to the electricity price increase.

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Employees are at the heart of what we do. There is a high possibility that our employees are also our customers, and it is important to listen to different points of view. A yearly survey will be carried out where employees will be asked to rate their satisfaction with our sustainability initiatives. We will measure the % of employee satisfaction, with the aim to maintain / improve employee satisfaction of our sustainability initiatives year on year.

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Inventory levels of finished product as a % of monthly demand

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Inventory levels of finished product as a % of monthly demand

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By measuring inventory levels as a % of monthly demand Halfpenny could ensure efficiencies in all of the required areas. Firstly Halfpenny could ensure they are not overordering materials and creating unneeded inventory, or producing waste when unused raw materials expire. Secondly Halfpenny could ensure they are not overconsuming energy by producing finished product without demand. Finally this could help distribution efficiencies as there is less pressure to shift overproduced products to retailers, meaning less distribution costs associated with unsold product. This KPI would help halfpenny moved towards a lean management system producing only what is demanded when it is demanded. By using a % of average monthly demand however Halfpenny could ensure they maintain the required capacity for increased demand.

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Wastage in the productions process isn’t currently being monitored, so we could set a maximum wastage rate in production, which could clearly align with our carbon emissions target of being carbon neutral. We could also use targets of reducing wastage in production by a a certain % each year to reduce our carbon footprint.

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With Electric Vehicles being at the forefront of sustainability, Halfpenny can offer Electric Vehicles to their employees at a discounted price. The employee would receive an electric vehicle, hired to them for as long as they are employed with Halfpenny. This could be compared to electric car usage vs petrol or diesel car usage for every employee of the business

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A 30% decrease in litres of fuel purchased (diesel) for the use of transport vehicles in the next year. We could monitor this through the use of fuel card statements and invoice analysis of bulk fuel purchases for the distribution centre. If we can increasingly replace the fleet with EV's, then this will reduce CO2 emissions from fossil fuels burnt into the atmosphere. 

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A 30% decrease in litres of fuel purchased (diesel) for the use of transport vehicles in the next year. We could monitor this through the use of fuel card statements and invoice analysis of bulk fuel purchases for the distribution centre. If we can increasingly replace the fleet with EV's, then this will reduce CO2 emissions from fossil fuels burnt into the atmosphere. 

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We will achieve this KPI by sourcing only recycled materials for packaging (will need to have close relationships with suppliers), and/or implementing initiatives to recycle damaged packaging. Compare this year on year with a goal to achieve 100% recycled packaging by 2040.

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4th KPI number of sustainable suppliers as a percentage of total suppliers who deliver to Halfpenny. This could be calculated by comparing the number of current suppliers who are sustainable with the total number of suppliers not following sustainable practices on a monthly basis. This could potentially lead to looking for ways to reduce the number of suppliers who do not follow sustainable practices over the period of time, like a year, to help us reach our aim of becoming carbon neutral by 2024.