Environmental Management Systems: A guide for Welsh SMEs

Environmental Management Systems – A guide for Welsh SMEs

Consuming electricity and water, producing waste, operating machinery and processing natural resources – these are just some of the ways that businesses interact with the environment at operational level and through their supply chains.

Businesses of all sizes are realising the need to understand, manage and improve their environmental impacts to ensure they can operate and grow sustainably. An Environmental Management System (EMS) proportionate to the size and activities of the organisation is a key framework for helping businesses to do this.

However, it can be more challenging for SMEs to measure, manage and report on climate and environmental goals, due to constraints of time, cost and human resources. So, what are the options? Do you need to comply with the internationally recognised ISO 14001 or are there alternatives?

We hope that this guide will help with understanding (i) the key elements of an EMS, (ii) the benefits and opportunities they bring for SMEs and (iii) provide an overview of the different certification standards for EMS implementation and support for SMEs in Wales.

Remember, there are many benefits to gaining an EMS certification but it is the journey towards it that counts in terms of practical actions and outputs. All certifications will require resource. If this is not possible for your organisation right now we hope that this guide will still be valuable to steering you towards meaningful actions.

1. What is an EMS?

An EMS is a structured framework of policies, procedures and practices which help organisations assess, manage and improve their environmental impact.

The primary goals of an EMS are to ensure:

Compliance with environmental requirements (for example, under an environmental permit issued by Natural Resources Wales)
The efficient use of resources
Waste reduction and minimal pollution
The continual improvement of environmental performance

(see: https://www.iso.org/climate-change/environmental-management-system-ems)

A core strength of any EMS should be enabling continual improvement of environmental performance. Continual improvement as defined in ISO 14001, refers to recurring activities to enhance environmental performance. For example, organisations can identify improvement opportunities through audits and monitoring progress against objectives and targets.

For an SME, this could be implementing behaviour change initiatives to support carbon reduction and nature related goals, such as eliminating deforestation. However, from a wider perspective, continuous improvement might look like an increasing number of business areas or processes being covered by the EMS, or an accumulation of knowledge and skills in dealing with environmental issues. Overall, it’s about a move from operational management of the environment to a more strategic approach.

2. The benefits of implementing an EMS for SMEs in Wales

Manage and improve environmental impacts: by integrating environmental considerations into their operations, SMEs can minimise their ecological footprint and reduce negative impacts on the environment.

Risk Management: The tools within an EMS provide a systematic approach to identifying and managing environmental risks and help SMEs to future proof their business and avoid potential liabilities and disruptions.

Cost savings: Implementing efficient resource management practices can lead to cost savings for SMEs. By optimising energy and water usage, reducing waste generation, and implementing recycling initiatives, SMEs may see reductions in utilities bills and other financial benefits from more efficient and innovative processes.

Compliance with regulations: An EMS helps SMEs comply with environmental regulations and legal requirements. By staying up to date with environmental legislation, SMEs can avoid penalties and legal issues.

Enhanced reputation and competitive advantage: Demonstrating a commitment to environmental sustainability is important for many potential employees and customers. Increasingly, it is also a requirement for public sector buyers to take into account the sustainability of their contractors. For example, in Wales, the Social Partnerships and Public Procurement (Wales) Act introduced a Socially Responsible Procurement Duty and at UK level, PPN 06/21 mandates that carbon reduction plans be taken into account in major government procurement contracts.

Improved access to finance: An EMS can help SMEs to identify and manage steps they can take to fulfil requirements under Business Wales’ Green Growth Pledge. It can also act as the catalyst for innovation financing, for example, the Green Business Loan Scheme from Development Bank of Wales.

3. EMS Standards and Certifications

When starting out to create an EMS, there are a number of standards available for SMEs in Wales. The main ones covered in this guide are:

ISO 14001:2015 (Environmental Management Systems – Requirements and Guidance for Use)

The most widely used voluntary EMS standard globally, providing a holistic framework ‘encompassing all aspects of an organisation’s environmental management and offering tools for continuous improvement’. Certification is available for organisations that have implemented the requirements of ISO 14001.

ISO 14005:2019 (Environmental Management Systems – Guidance for a flexible approach to phased implementation)

This standard provides guidance for a phased approach to establish, implement, maintain and improve an EMS. It may be particularly useful for SMEs as it provides flexibility and allows organisations to develop their EMS at their own pace. Full implementation of the guidance will result in an EMS that aligns with ISO14001.

Note that BSI’s earlier guidance standard for SMEs, BS8555, which also provided a phased approach to EMS implementation has now been withdrawn and replaced by ISO 14005.

Groundwork’s Green Dragon Standard

Green Dragon is a UK based environmental accreditation awarded to ‘businesses that take action to understand, monitor and control their impacts on the environment’. It operates on a staged based system over five levels, allowing a business to progress in its own time. At Level 5 the Green Dragon standard is equivalent to ISO 14001. One of the advantages of Green Dragon is its recognition and support from Business Wales and its acknowledgement in Welsh Government procurement processes.

Green Key / Gorian Gwyrdd

Green Key is an eco-accreditation awarded to businesses operating in the tourism sector. Green Key certified businesses meet a set of high standard environmental requirements across 13 areas including environmental management, staff involvement, energy and water conservation, waste management, and food and beverage. In Wales, Green Key is operated by Keep Wales Tidy on behalf of the Foundation for Environmental Education (FEE).

EU’s Eco-Management and Audit Scheme (EMAS)

EMAS is the EU’s voluntary scheme applicable to all organisations in the public and private sectors who want to evaluate, manage and improve their environmental performance. EMAS is broader and more rigorous than ISO14001 (as explained below) but ISO 14001 satisfies the requirements for the EMS component. Following Brexit, the UK no longer has a ‘competent body’ responsible for EMAS, however, organisations doing business in the EU might find EMAS Global registration useful and we have included information about the main requirements and links to further information in this document for completeness.

It is worth noting that businesses do not need to adhere to a certain standard for their EMS and might decide to design a bespoke system. However, using one of the available standards might well be less resource intensive and can help to ensure a robust EMS that provides reassurance to stakeholders.

The following sections of this guide provide a bit more detail about the above standards to help you identify which might be the right approach for your business.

Please note this is a guide based on a summary of available online information. Please check the web links given for the most accurate and up to date details.

4. International EMS standards

ISO14001:2015 (Environmental Management Systems – Requirements and Guidance for Use)

ISO 14001:2015 is an internationally recognised, holistic framework for an EMS, encompassing all aspects of an organisation’s environmental impact and offering tools for continuous improvement.

What is involved?

The basis of ISO 14001 (as with other EMS standards) is the management system process Plan-Do-Check-Act (PDCA). The PDCA cycle is applied to the overall EMS, as well as individual processes, and enables organisations to achieve continual improvements to their environmental performance through improvements to the EMS.

The Guidance describes the requirements for setting up and implementing an EMS including:

An environmental policy: A statement that outlines an organisation’s commitment to environmental sustainability.
Planning: This involves identifying environmental aspects and objectives of an organisation, setting targets and establishing programmes to achieve them.
Implementation: This stage involves putting plans into action, allocating resources and assigning responsibilities.
Checking: Regular monitoring of performance against objectives and targets is critical to ensure the timely implementation of corrective actions.
Management review: A formal review of the EMS supports its continued effectiveness and suitability.

EMS Plan-Do-Check-Act Model (Source: Westcon,2017, online)

Costs, Certification and Training

The standard can be purchased from the ISO website for approximately £130 and businesses can choose to implement the standard without the costs of certification. There are also various free and IEMA accredited training modules to assist with implementation.

As mentioned above, certification is optional but can provide both organisations and their customers assurance that ISO 14001 has been implemented in a robust manner.

Costs of certification from organisations accredited by The UK Accreditation Service (UKAS) vary but online quotes without commitment can be readily obtained.

Certification is typically awarded for three years, subject to annual surveillance visits. The standard itself undergoes revisions periodically (typically every 5-10 years).

ISO 14005:2019 (Environmental Management Systems – Guidance for a flexible approach to phased implementation)

Whilst ISO 14001 is applicable to all types and sizes of organisation, the full implementation of an EMS at the same time might be prove challenging for some organisations and particularly SMEs where time, cost and human resources can be limited.

At international level, a phased approach to implementing an EMS was therefore developed (previously the BSI standard BS8555:2016 which has been subsumed by ISO 14005) to encourage and guide SMEs to meet the requirements of ISO 14001.

What is involved?

The phased approach in ISO 14005 is designed to provide flexibility for an organisation to develop their EMS over a number of phases to ultimately meet the requirements of ISO 14001.

The number of phases an organisation chooses to implement at any one time is flexible and can be determined depending on resources and priorities. Each phase is broken down into six consecutive stages to be completed over time. SMEs can monitor progress using the maturity matrix in Annex A of ISO 14005 and the free supporting documents provided by ISO 14005.

The Assessment Sheet (on the supporting documents page) provided by ISO is a helpful tool that enables organizations to monitor and record progress through five levels of maturity corresponding to each EMS subclause. An EMS that satisfies the maturity Level 1 (Column 1) through to full maturity at Level 5 (Column 5) meets all the requirements for a particular clause of ISO 14001:2015.

Costs, Certification and Training

The Guidance can be downloaded from the ISO website for approximately £130. As the aim of ISO 14005 is to assist SMEs with reaching 14001, there is no separate certification for this standard. However, it is a good reference to turn to for ideas and practical examples on how to make your implementation of ISO 14001 more effective.

5. Alternative EMS standards recognised in Wales

For SMEs based in Wales, there are alternatives to the above standards that are administered by national organisations and recognised by the public sector in the procurement process.

5.1 Groundwork Green Dragon Environmental Accreditation

The Green Dragon Environmental Accreditation is a comprehensive standard administered by Groundwork, a UKAS accredited inspection organisation. It is awarded to businesses that take action to understand, monitor and control their impacts on the environment.

What is involved?

Similar to ISO 14005, the standard operates on a staged based system (Levels 1-5), allowing organisations to join at any stage and progress their EMS in their own time.

The five levels are:

Level 1: Commitment to Environmental Management
Level 2: Understanding environmental responsibilities
Level 3: Managing environmental impacts
Level 4: Environmental Management Programme
Level 5: Continual environmental improvement

Organisations can choose which level is appropriate to the nature and scale of their activities and upon completion of each level they will receive a certificate. At level 5, the Green Dragon standard is equivalent to ISO 14001.

Groundwork provides several useful documents on its website to accompany the standard, including an Environmental Review Workbook. There is also a list of organisations across Wales who have achieved Green Dragon accreditation.

Certification and costs

To achieve and maintain the Green Dragon Environmental Standard, an annual audit with Groundwork is required. The cost of the audit varies depending on the level, with Level 3 being the most common entry point for organisations and costing.

5.2 Green Key – A sustainability standard for the tourism sector

Green Key is an international environmental certification programme for the tourism and hospitality industry. It has been awarded to more than 3,200 businesses from across the sector in 65 countries and is open to businesses from across the sector.

Globally, Green Key is operated by the Foundation for Environmental Education (FEE) who work with national partners on certification. In Wales, the Green Key certificate is managed by Keep Wales Tidy.

Green Key promotes sustainable practices and recognises businesses that meet specific criteria related to environmental management and sustainability. Criteria are set out over 13 thematic areas including energy and water conservation, waste management, sustainable procurement, and environmental education.

The FEE has developed criteria and explanatory notes for businesses in six different categories (hotels and resorts, small accommodation, campsites, restaurants, attractions and conference centres).

In each category, there are ‘imperative’ and ‘guideline’ criteria. For example, creation of a sustainability policy and interaction with stakeholders are imperative criteria, whilst a target to reduce carbon footprint is a guideline criteria. Each organisation applying for a Green Key certificate must achieve all imperative criteria and then for each subsequent year that they apply they must meet an additional 5% of the guideline criteria. 

In addition to the general benefits of EMS implementation, Keep Wales Tidy highlights that travellers and tourists are increasingly keen to support sustainable businesses and that investment in a Green Key certification is a key market differentiator. Keep Wales Tidy has collated case studies of organisations across Wales who have invested in Green Key.

Certification and costs

The application process for certification consists of three parts:

Sending the application documents
Receiving on-site audits
Decision by an independent entity (third-party verification)

More information about the application process in Wales can be found on the Keep Wales Tidy website.

Keep Wales Tidy aims to keep certification costs affordable and to ensure Green Key is accessible to all tourism providers. Investment levels therefore vary depending on the size of the business:

Costs are paid as part of the application prcess and then annually following updated verification (for more information see https://keepwalestidy.cymru/our-work/awards/green-key/).

5.3 Seren Scheme

The Seren Scheme is based on BS8555 and follows the same phased approach. Organizations can choose to use the Seren Scheme to achieve other EMS standards such as ISO 14001 or EMAS, or register at a phase that aligns with the nature and scale of their business and remain at that phase.

The Seren Scheme is applicable to both large and small organizations and places a strong focus on continuous improvement.

BS8555 is divided into 5 phases:

Stage 1: Leadership, context, and commitment
Stage 2: Ensure compliance
Stage 3: Plan and develop the EMS
Stage 4: Implement the EMS
Stage 5: Check and update the EMS

As long as organizations pass an annual inspection, they can stay at that particular phase indefinitely and use their EMS to demonstrate their commitment to environmental management to stakeholders and customers.

The Seren Scheme is administered by a private company called Tarian Inspection Services, which conducts inspections in a friendly, down-to-earth, and highly practical manner. They ensure that companies have a robust Environmental Management System that enhances their credibility, good management, and cost savings.

Further information can be found at http://www.serenscheme.com/.

6. EU’s Eco-Management and Audit Scheme (EMAS)

EMAS is a voluntary environmental management scheme designed by the European Commission. Its overall aim is to enable continuous improvement in the environmental performance of companies, language similar to that in ISO 14001. However, ISO 14001 aims for continual improvement of the system itself hopefully leading to improved environmental performance of the organisation. EMAS requires improved environmental performance of the organisation to be assessed through indicators relating to six core areas – energy efficiency, material efficiency, emissions, water, waste and land use with regards to biodiversity.

EMAS is more rigorous than ISO 14001, however, ISO 14001 satisfies the EMS component of EMAS requirements.

Registration with the scheme requires the following steps:

Conduct a preliminary environmental review – this will be the baseline for improvement
Adopt an environmental policy and programme in which you involve employees and external stakeholders 
Establish and implement an EMS
Prepare an environmental statement 
The EMS and environmental statement to be verified and validated by an environmental verifier.

Recognising the challenges faced by SMEs, EMAS has amended rules for SMEs to encourage participation in the scheme. These include verification every four years (rather than three) and publication of the environmental statement every two years, rather than annually. There is also financial support available in some Member States and a number of tools and guidance to assist SMEs.

For more information, please see:

In summary...

SMEs increasingly need to demonstrate an understanding of environmental impacts and a strategic approach to minimising climate and environmental impacts to satisfy potential customers and to future proof their business.

In light of the prevalent tick-box culture in environmental matters, many organisations are seeking broader and more engaging systems, examining the impacts on their staff, communities, and supply chains.

Regardless of the framework used for environmental, biodiversity, sustainability, or ESG reporting, businesses still need to adhere to similar concepts: focus on leadership and staff ownership, understand impacts, prioritise, plan, communicate, implement, and review.

If you need further support or advice with any of these activities please reach out to our sustainability advisors.

Environmental Management Systems: A guide for Welsh SMEs Read More »

Castell Howell Foods – Supply Chain

As an indigenous Welsh food company, Castell Howell is very much at the centre of this foundational economy.

Serving both private and public sector hospitality and food service providers in Wales and beyond, the company recognises its responsibility to be agents for change, working towards the goals of the Economic Action Plan.

‘Optimising the Welsh food system necessitates a focus on onshoring production for enhanced social value and nutritional content. This entails aligning menus with seasonal harvests, improving yield and supply chain data, and extending produce shelf life. Collaborative efforts will foster a more resilient system that empowers our farmers, delivers nutritious meals to the public sector, and minimises risk. While cost and efficiency challenges exist, a pragmatic approach focused on long-term objectives can yield significant benefits. Transparent procurement practices that prioritise not just price point, but also social value, environmental impact, and community engagement are essential.’

Edward Morgan – Group Corporate Social Responsibility & Training Manager, Castell Howell Foods.

This case study highlights four independent yet interlinked projects that demonstrate how the supply chain can collaborate to instigate change that leaves a social, environmental and economic legacy within the foundational economy and beyond.

1. Locally Grown Veg to Cardiff Food and Fun – ‘The Courgette Pilot’

In the summer of 2022 Castell Howell (CHF) collaborated with growers Blas Gwent, Food Sense Wales and Cardiff Council to deliver locally-grown vegetables to the Welsh Government funded and WLGA managed Summer Food & Fun programme.

A series of images of children cooking in a school setting with vegetables.

Courgettes grown near Cardiff were delivered to 22 local schools, and CHF’s development chef worked with the Council’s nutritional team to create dishes that were nutritionally balanced, palatable, and attractive to the children. The summer programme included activities such as cooking demonstrations and vegetable art.

Food Sense Wales published a report highlighting the efficacy of the pilot and how the inclusion of locally-grown vegetables in school meals can reduce environmental impacts and benefit both the grower and the children.

Image from Food Sense Wales Report – Courgette Pilot

Follow this link to find out more.

The Courgette Project – Phase 2

Phase 2 extended beyond Cardiff Council to Monmouthshire and Carmarthenshire, and included three small-scale vegetable growers: Blas Gwent (Wentloog), Langtons Farm (Crickhowell), and Bonvilston Edge (Bonvilston). Their vegetables were used for the Summer Food & Fun project by all three local authorities, with a longer-term project in Monmouthshire extending to their autumn and winter menus. To ensure that food safety was maintained, Tyfu Cymru/Farming Connect delivered safety and process training.

Several people stand in a large greenhouse with tall plants around them.

Managing the Supply Chain

Yield forecasts, menus and harvesting all had to be aligned, and allow for flexibility for seasonal variations. Authentic Foods (Hirwaun) were contracted to grow vegetables to be harvested, prepared, and, after a programme of new product development work, included in kitchen-prepared, multi-portion meals to the public sector. Dialogues with local authority catering teams on nutritional compliance, acceptability, palatability, pricing and the practicality of using school kitchens were essential to the project’s success, and in May 2023 the partners met at Langtons Farm, where a commitment was made to plant 1,000 cauliflowers to harvest in early 2024, for use in school-compliant multi-portion meals from March 2024 onwards.

Lab results for the micronutrients for the meals developed at Authentic were of particular interest. Except for the standard Welsh Tom Pizza sauce, the results seem in line with expectations. Particularly good to see the addition of the Welsh grown spinach and chard boosting the iron and zinc values of the Cauli Cheese meal. It’s not clear what portion size a primary school child would eat, however it is hoped that the 20% added would exceed the 3g of these micronutrients that is a general baseline.

The Welsh Beef Bolognaise (with the added spinach/chard base) seems to perform well too.

Provided that the children are ok with 20% added Cauliflower Cheese meal (not too green looking etc), this could be great news for our cohort of growers, helping us to narrow down what can be grown well and profitably  in Wales for a target customer i.e. schools.

Welsh Tom Pizza Topping

With 10% Spinach

With 20% Spinach

With 10% Chard

Knorr Tom Basil Sauce

Maggi (Nestle) Rich & Rustic

Tin Chopp/Plum Toms

Welsh Beef and Welsh Bolognese

Welsh Cauli Cheese

With 10% mixed leaves

With 20% mixed leaves

With 10% spinach

Energy

KJ/100g

168

155

161

150

213

257

354

359

337

329

337

Protein

g/100g

1.8

2.1

1.8

1.2

1.4

1.1

5.5

3.4

3.5

3.4

Fat

g/100g

0.3

0.2

0.3

1.1

2.8

0.1

4.6

5.3

4.9

4.5

4.8

Sugars

g/100g

5.2

4.5

4.4

6.9

5.7

3.8

2.7

2.4

2.3

Fibre

g/100g

2.6

2.5

2.4

2.7

0.7

1.1

0.8

2.8

1.6

2.33

1.7

Sodium

mg/100g

204

202

183

169

n/a

292

220

213

231

198

Zinc

mg/100g

<2.00

2.23

3.37

3.78

n/a

11.6

5.56

8.65

11.3

5.62

Iron

mg/100g

7.17

5.41

6.22

6.13

n/a

7.84

1.81

3.54

5.53

2.74

2. Gower Grown Veg, Field to Fork

In collaboration with Swansea Local Authority, Bishopston Secondary school and 4theregion, Castell Howell developed a pilot local supply chain for vegetables grown in Gower to feature on the menu at Bishopston school. The school held a fortnight of food-based activities in lessons, a school visit to the growers, and helped with the development of meals that featured on a Gower Grown school menu.

This project helped raise awareness of nutrition, environmental impact, financial fairness across the supply chain and local food resilience.

A group of school children stand around a beehive with a beekeeper.

Watch the video: From Gower Fields to Local Forks | Taster Day

3. Sustainable supply chains, and ‘Scope 3’ on menus

Food miles and Scope 3 supply chain emissions are inextricably linked. Working with hospitality providers to decide on menu options, and then with suppliers, can reduce the total environmental impact of the products.

An example of the circular economy in action was demonstrated by the collaboration between Celtic Pride, CHF’s premium Welsh beef supplier run by the Rees family from Bryn Farm, in Pendoylan, Vale of Glamorgan, and NFU Energy. Bryn Farm received biosolids from Dŵr Cymru Welsh Water, a by-product that is a rich source of nutrients and allowed the farm to reduce the need for synthetic fertilisers, which is one of the biggest challenges faced by the agricultural sector.

Communicating the Positive Benefits to Stakeholders

CHF promotes the environmental and social benefits of a sustainable supply chain to stakeholders through positive messaging on menus, supported by further information accessed via QR codes.

A Sustainably Sourced Menu for a Farming Conference

In collaboration with Cardiff Catering, CHF developed a sustainably sourced menu for the 2022 Nuffield Conference banquet. The key suppliers adopted a range of environmental objectives, including a Farm Carbon Audit with the beef farmer, net-zero potatoes, Gower-grown vegetables and cheese from regenerative farms. This film shows how the menu was created with sustainability at its heart and showcases the sustainability journey of the food producers, as well as highlighting how this was communicated to the diners.

4. Digestibility and Nutrient Density Project

There is a growing acceptance of the health risks posed by ultra-processed foods. CHF partnered with Aberystwyth University on a Welsh Government funded project to develop prepared meals for NHS Wales that demonstrate that nutritional, environmental, social and commercial goals need not be mutually exclusive.

The outcomes were achieved with a range of multi-portion meals following a new and innovative product development pipeline, which included measuring the true nutritional quality of the new meals, via amino acid compositional analysis and in-vitro gastrointestinal protein digestibility scores. Protein derived from UK grown pulses was successfully substituted for red meat, ensuring that the meals still met the required nutritional standards.

The project found that a range of flexitarian or “hybrid” meals, based on well-established and recognised meals but substituting plant-based protein sources for meat wherever possible, were the most viable in meeting the requirements. Where meat was used this was predominantly pasture-grazed Welsh beef aligned with Hybu Cig Cymru’s ‘Welsh Way’ vision of lower carbon protein derived from Welsh livestock. However the increasing price of meat since the start of the project underlined the important commercial aspects of “hybrid” foods that contain an element of Welsh meat alongside UK grown pulses.

————————————————————————————————————–

‘I cannot overstate the importance of these projects, in terms of developing the supply chain, generating product development and providing more Welsh products to Welsh schools.’

Edward Morgan – Group Corporate Social Responsibility & Training Manager, Castell Howell Foods

We at Cynnal Cymru are excited to keep you informed about the progress of this work.

Castell Howell Foods – Supply Chain Read More »

New Foundational Economy online learning resource

Welsh Government are delighted to announce the launch of a new eLearning module on Community Wealth Building and the Foundational Economy. This engaging online resource aims to build understanding of what the Foundational Economy is; the benefits it can bring; and how it can be strengthened.

Ken Skates MS, Cabinet Secretary for Economy, Transport and North Wales says:

“This online eLearning module is an excellent tool to better understand Community Wealth Building and place-based approaches, which can support and nourish the Foundational Economy, central to our Economic Mission. We all interact with the Foundational Economy every day, from the food we eat, the buildings we live and work in, and the services that we use. It is inseparable from our communities and our country, representing roughly 40% of the economy.

Building the necessary capability and skills to embed Foundational Economy objectives across the Welsh public sector is crucial. By doing this we can maximise opportunities for our indigenous suppliers and build resilient, highly skilled supply chains – keeping the Welsh pound in our communities.

To do this, we recognise the need to provide the necessary toolsets and support for our public sector partners and practitioners.

I am pleased to announce the launch of this eLearning module and hope it is widely used to strengthen understanding, commitment and know-how to help our foundational sectors thrive.”

FAQs

How long does this eLearning module take?

There are eight sections to this course. We recommend completing the module in one sitting, which will take between 30 – 45 minutes.

Who is it for?

This module has been designed for anyone to take, whether interested citizens or those working in public, private and third sectors. We particularly recommend it to those who are involved in developing economic policies and projects, as well as those working in public sector procurement. The short course is designed to leave learners feeling more informed, confident and energised!

No specialist knowledge is required to take this module and it has been designed for anyone who is interested.

Where can I find out more?

Links to further reading can be found at the end of the module, which is available on the Learning Wales website.

New Foundational Economy online learning resource Read More »

Foundational Economy in Action: Excellence in Public Sector Food

The Foundational Economy is the backbone of everyday life in Wales, providing essential goods and services to everyone. These include health and social care, food, housing, energy and utilities, construction, retailers on the high street, and tourism. The Foundational Economy is supported by a range of businesses, from small and medium-sized enterprises to large companies such as privatised utilities, mobile companies, and major supermarkets. It is estimated that the Foundational Economy provides employment for four out of every ten people in Wales and contributes to £1 out of every £3 spent in the country.

A strong foundational economy ensures that essential human needs are available to everyone, regardless of their location, income or status. Supporting the foundational economy is a top priority in the Welsh government’s mission of economic resilience and reconstruction, which aims to create thriving communities and businesses throughout Wales. The Welsh Government’s Economic Action Plan encourages collaboration to address inequalities, promote inclusivity, and drive economic development, supporting business decisions. Building on the success of the 2021 Welsh Government’s Foundation Economy Challenge Fund, the Backing Local Firms Fund aims to support local businesses in delivering the products and services required by the public sector, creating better job opportunities closer to home.

The Welsh Government’s “Backing Local Firms Fund” has financed various projects in the food sector to increase the amount of Welsh food served on public plates. The grant aims to support local food producers and suppliers in providing local, sustainable, and healthy food to schools, hospitals, and other public sector institutions. By promoting the production and consumption of local food, we can reduce our environmental impact and encourage sustainable practices in Wales.

Cynnal Cymru is showcasing three of the public sector food-focused projects, all aiming to strengthen Wales’s Foundational Economy. To learn more, please see the case studies below:

Castell Howell Foods

Velindre University NHS Trust

Can Cook

Foundational Economy in Action: Excellence in Public Sector Food Read More »

School children stand with a beekeeper around a bee hive.

Foundational Economy Capability Networks: Castell Howell Foods

Castell Howell Foods

How the supply chain can collaborate to instigate change that leaves a social, environmental, and economic legacy.

As an indigenous Welsh food company, Castell Howell is very much at the centre of this foundational economy.

‘Optimising the Welsh food system necessitates a focus on onshoring production for enhanced social value and nutritional content. This entails aligning menus with seasonal harvests, improving yield and supply chain data, and extending produce shelf life. Collaborative efforts will foster a more resilient system that empowers our farmers, delivers nutritious meals to the public sector, and minimises risk. While cost and efficiency challenges exist, a pragmatic approach focused on long-term objectives can yield significant benefits. Transparent procurement practices that prioritise not just price point, but also social value, environmental impact, and community engagement are essential.’
Edward Morgan – Group Corporate Social Responsibility & Training Manager, Castell Howell Foods

1. Locally Grown Veg to Cardiff Food and Fun – ‘The Courgette Pilot’

Image from Food Sense Wales Report – Courgette Pilot

Follow this link to find out more.

The Courgette Project – Phase 2

An online call with several attendees. A shared presentation reads Harvesting: We need to know what has been harvested, when and was it done safely. The Harvest Record checks equipment (knives, field rigs, tractors) to make sure they are intact and clean and will not contaminate the produce. It also records the quantity harvested from which break/field.

Managing the Supply Chain

The Welsh Beef Bolognaise (with the added spinach/chard base) seems to perform well too.

Welsh Tom Pizza Topping

With 10% Spinach

With 20% Spinach

With 10% Chard

Knorr Tom Basil Sauce

Maggi (Nestle) Rich & Rustic

Tin Chopp/Plum Toms

Welsh Beef and Welsh Bolognese

Welsh Cauli Cheese

With 10% mixed leaves

With 20% mixed leaves

With 10% spinach

Energy

KJ/100g

168

155

161

150

213

257

354

359

337

329

337

Protein

g/100g

1.8

2.1

1.8

1.2

1.4

1.1

5.5

3.4

3.5

3.4

Fat

g/100g

0.3

0.2

0.3

1.1

2.8

0.1

4.6

5.3

4.9

4.5

4.8

Sugars

g/100g

5.2

4.5

4.4

6.9

5.7

3.8

2.7

2.4

2.3

Fibre

g/100g

2.6

2.5

2.4

2.7

0.7

1.1

0.8

2.8

1.6

2.33

1.7

Sodium

mg/100g

204

202

183

169

n/a

292

220

213

231

198

Zinc

mg/100g

<2.00

2.23

3.37

3.78

n/a

11.6

5.56

8.65

11.3

5.62

Iron

mg/100g

7.17

5.41

6.22

6.13

n/a

7.84

1.81

3.54

5.53

2.74

 2. Gower Grown Veg, Field to Fork

This project helped raise awareness of nutrition, environmental impact, financial fairness across the supply chain and local food resilience.

Watch the video: From Gower Fields to Local Forks | Taster Day

3. Sustainable supply chains, and ‘Scope 3’ on menus

An online call with several attendees. A shared presentation reads Navigating Scope 3.

Communicating the Positive Benefits to Stakeholders

CHF promotes the environmental and social benefits of a sustainable supply chain to stakeholders through positive messaging on menus, supported by further information accessed via QR codes.

A Sustainably Sourced Menu for a Farming Conference

4. Digestibility and Nutrient Density Project

————————————————————————————————————–

I cannot overstate the importance of these projects, in terms of developing the supply chain, generating product development and providing more Welsh products to Welsh schools.
Edward Morgan – Group Corporate Social Responsibility & Training Manager, Castell Howell Foods

We at Cynnal Cymru are excited to keep you informed about the progress of this work.

A logo for a castle

Description automatically generated A red sign with white text

Description automatically generated

Foundational Economy Capability Networks: Castell Howell Foods Read More »

A person stands with a bag full of vegetables among crates of carrots and other vegetables.

Foundational Economy Capability Networks: Velindre University NHS Trust

Velindre University NHS Trust

Enabling a FutureGen-ready food system

The link between healthy food and patient recovery may seem an obvious one, but in 2023 staff at Velindre University NHS Trust (Velindre) set out to explore this relationship in more detail – and to find ways to maximise the benefits that a healthy food system can bring to patients, hospital staff and beyond. Chris Moreton, Deputy Director for Finance at Velindre, explains more.

The Challenge:

The current food system in Wales is facing multiple challenges that affect everyone. These include climate change, nature loss, a declining rural economy and food security.

Agriculture in Wales is currently responsible for about 14% of Wales’s greenhouse gas emissions, whilst the move towards more intensive farming processes, to accommodate changing diets and consumer demand, reduces land fertility, contributes to negative impacts on surrounding air and waterways and is a key driver of biodiversity loss.

Years of intensification in agriculture have left rural communities poorer and less stable, negatively impacting the well-being of farming communities. In addition, an over-reliance on an increasingly fragile global food system has contributed to rising food prices, food poverty and inequality.

This in itself has knock-on effects for the NHS, but Wales is also seeing an increase in diet-related disease, exacerbated by a lack of affordable, accessible, fresh produce being eaten in the home and workplace. These diseases include Type II diabetes, cancers, cardiac and vascular diseases, strokes, and joint problems.

The Opportunity:

The Welsh public sector spends £97m on food for schools, hospitals, and social care, with Velindre’s annual food budget alone standing at c.£22 million.

Chris believes that the NHS in Wales has the opportunity to lead the promotion of environmentally and socially responsible public sector food sourcing. By supplying local, good quality and sustainably-produced food, it can improve the health and well-being of patients, staff, and their families, as well as reducing ecological harm and supporting a fairer and more resilient Welsh food sector.

This mission aligns with the goals of the Well-being of Future Generations Act, the Welsh Government’s ‘Buying Food Fit for the Future’ initiative, Velindre’s duty of actioning Socially Responsible Public Procurement, and contributes towards the ambition of reaching Net Zero by 2030.

These mutually-reinforcing ambitions are contained in the project’s objectives:

Increased access to healthy and affordable food will lead to better health outcomes.

The food supply chain will be shorter, more resilient, and will have minimal environmental impact while providing value for money.

The Trust will have more spaces where people can learn about and enjoy food.

There will be a reduction in food waste and the ecological footprint.

Partnerships will lead to the development of vibrant local food economies and communities.

Velindre aims to make food a well-being priority for its patients and staff through increasing access to healthy food options at a reasonable price both inside and outside of work. This includes the introduction of “Well-being Wednesdays” and a veg box scheme – which proved successful during the pandemic – to promote healthy eating habits.

Menu redesign will be evaluated, starting with the restaurant at Velindre Cancer Centre, to explore opportunities to integrate seasonal and organic ingredients, using tools such as meat reduction and use of non-branded projects to help maximise budgets.

By working directly with suppliers, the project aims to ensure that ethical sourcing and fair-trade options will also be explored where Welsh produce is not available. Skills, training and education will be a key pillar in the project both in terms of roles linked to food – from cooks to procurement – to broader staff engagement to help staff make informed decisions about food in work and wider life.

Beyond that, by providing visible leadership through its food mission, Chris hopes that Velindre can lead by example across the public sector in Wales to help drive regional collaboration and alignment around food sourcing, promoting agroecological food production and unlocking opportunities for innovation.

A person stands with a large bag among crates full of carrots and other vegetables. A board on the back reads Greengrocer.

Next steps:

The project has been developed with the support of Welsh Government’s Backing Local Firms Fund that supports the development of key foundational sectors such as food.

Staff buy-in for this project is already high, with staff workshops indicating near-unanimous support for the food mission. This provides a key resource for consistent messaging around the benefits of the proposed changes.

Chris explains that “Clear, consistent messaging and collaboration with suppliers, producers and partners such as Cwm Taf Morgannwg’s Central Processing Unit will be critical to creating the conditions that allow people to commit to change.”

An Action Plan is currently being developed to help operationalise the project’s goals and embed them into Velindre’s operations. Whilst some performance indicators exist and can easily be measured, such as percentages of food coming from local suppliers, food waste reduction, staff accessing veg boxes and average days for patient recovery, others will need development, including a Patient Reported Outcome Measure for food and the Social Return on Investment for the local food economy.

Chris believes that this whole-system approach is necessary both to tackle the challenges within the current food system and to demonstrate the full range of benefits that can be delivered by values-based healthcare. We look forward to reporting more as the project progresses.

Foundational Economy Capability Networks: Velindre University NHS Trust Read More »

Foundational Economy Capability Networks: Can Cook

Can Cook

Well Fed – MealLockers / Plastic-free and Net Zero Programme

“We all want a food system that wants to feed children and people good food. Ultra-processed-free has everything to do with people’s health, we match the price and impove the quality.” – Robbie Davison, Director of Can Cook.

Can Cook, a social enterprise, is tackling food poverty and unhealthy eating habits in Wales by providing fresh, nutritious cooked from scratch meals at affordable prices. Their “Well Fed” programme includes initiatives like Cook-at-Home meal boxes, mobile shops, and Meals on Wheels.

With support from Welsh Government’s Backing Local Firms Fund, a recent focus has been to develop and improve 3 new aspects of delivery: plastic-free vending machines (eatTAINABLE) ‘MealLockers’ and a Net Zero emissions-reduction programme with solar energy integration.

The Challenge

One of Wales’s key public health challenges concerns food poverty and rising childhood obesity rates. 1 in 4 children born in 2022 will be obese by age 5 in Wales and over 50% of the UK population cannot afford a shop based on fresh produce. Ultra-processed foods (UPFs) are prevalent in the average weekly shop and also dominate school meals.

Robbie explains that the project came about after identifying that, despite meeting nutritional standards, the majority of food eaten by children at school is ultra-processed. “If ultra-processed foods help schools meet nutritional standards, then we are in the wrong place.” he concludes. “Our primary concern is feeding children well. We are looking at everything in the supply chain to eliminate UPFs and preliminary the big issue in cooking at scale is the stocks, gravies and sauces”

Having identified the main ingredient to change in their meals – stock – the Can Cook team went about developing a UPF-free alternative. The solution is a stock made from mushrooms, sourced from a local farm, that can be cooked at scale, stays within budget, and with the same taste and properties as commercial alternatives.

This demonstrated to the team that the elimination of UPF ingredients is possible. All the meals provided by Can Cook are now UPF-free and the project helps others avoid these in their wider diet also by teaching people how to cook from scratch.

Another challenge concerning the Can Cook team is that isolated communities often lack access to fresh, nutritious food options. Traditional catering methods can be impractical for these areas.

Can Cook’s solution includes an initiative to dispense fresh, healthy pre-prepared meals to isolated communities through MealLockers located in public spaces. They are also developing a plastic-free vending approach dispensing meals in returnable, microwavable stainless-steel containers – an innovation targeting workspaces and is convenient and accessible to customers, whilst also reducing waste and energy in reheating.

To help reduce thier own carbon footprint, Can Cook is moving their production kitchen towards Net Zero through the installation of solar panels by June 2024 to reduce reliance on non-renewable electricity by 60%.

Looking forward:

For the future, Robbie notes that continued efforts are needed to identify reliable suppliers of UPF-free ingredients for large-scale production. He also believes the MealLockers model has huge potential to expand to efficiently deliver healthy meals to more locations, including schools, hospitals and rural areas, which public sector commissioning could support. He explains:

“To truly benefit public health, it is vital that public sector commissioning moves towards encouraging and protecting quality and social value. We believe that a social food model for public sector contracts is needed now, to make sure everyone can eat well, regardless of income.”

The Can Cook team believe there is huge potential for initiatives like these to make a significant contribution to public health in Wales and further afield. We at Cynnal Cymru are excited to keep you informed about the progress of this work.

Robbie Davison – Director of Can Cook

Foundational Economy Capability Networks: Can Cook Read More »

Foundational Economy Community of Practice Research

Policy

Foundational economy: delivery plan (2021).

Welsh Government’s commitments and delivery plan to the end of the current Senedd term.

Latest policy interventions to strengthen the Welsh foundational economy. Including a Challenge Fund to support novel approaches to tackle issues within the foundational economy, opportunities from procurement reform and actions regarding parts of the Welsh foundational economy; construction, food, social care and afforestation.

Access Welsh Government’s foundational economy delivery plan

Policy Read More »

Community wealth building and The Scottish Government

Cities and regions policy – community wealth building.

Scottish Government.

Read the report from the Scottish Government on community wealth building

Community wealth building and The Scottish Government Read More »

Community wealth building

Community wealth building is an approach to economic development aimed at changing the way that economies function so that more wealth and opportunity is retained for local people. In this way, its approach is similar to practitioners working within the foundational economy, with their focus on grounded, local firms. Community wealth building has been used successfully in Preston – known as the ‘Preston Model’ and is increasingly being used by The Scottish Government.