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Marks & Spencer (M&S) has launched a £200 million eco-plan to turn the company green by 2012.

The new strategy, launched today, will be rolled out across all of the high street retailer's business areas and will cover a range of initiatives from the sustainable sourcing of products to encouraging its staff and customers to lead healthier lifestyles.

Entitled Plan A, the eco-plan will aim to reduce carbon emissions and cut waste by reducing the size of packaging and change package labelling to help their customers recycle products. Its plan will aim to make the company carbon neutral.

M&S will look at its supply chain to increase Fairtrade offerings to key clothing ranges and vulnerable food supply chains like sugar and cocoa. It will concentrate on providing locally sourced food and will clearly label food that is imported by air.

The retailer said it will also launch an employment programme to increase its employment of disadvantaged groups in its stores.

"Every business and individual needs to do their bit to tackle the enormous challenges of climate change and waste," said chief executive Stuart Rose.

"While M&S will continue to sell great quality, stylish and innovative products, our customers, employees and shareholders now expect us to take bold steps and do business differently and responsibly. We believe a responsible business can be a profitable business. We are calling this "Plan A" because there is no 'plan B'."

As part of Plan A, M&S will be launching a healthy eating plan to target both customers and staff. Under the plan, healthy eating assistants will be made available to customers in stores and in staff food halls. The company will aim to increase sales of its 'eat well' range from 30 per cent to 50 per cent.

It has also pledged to replace artificial colours in foods targeted at children within the next 12 months.

"M&S will change beyond recognition the way it operates over the next five years," Mr Rose predicted.