Tesco PLC
Climate Impact & Sustainability Data (2001-02, 2003-03 to 2004-02, 2005-03 to 2006-02, 2018-2022, 2020-21, 2021-03-01 to 2022-02-26, 2022-02-26 to 2023-02-25, 2023-24, 2024, March 2008 to February 2009)
Reporting Period: 2001-02
Environmental Metrics
ESG Focus Areas
- Economic
- Social
- Environmental
Environmental Achievements
- Further improvement in energy efficiency, saving over £8 million and offsetting the cost of the climate change levy.
- Reduced water use in store by 10%.
- Continued improvement in recycling of secondary packaging waste – saving the equivalent of 1.2 million trees.
- Continued roll out of improved merchandising systems in store – 4% increase in the use of reusable green trays.
- Launch of customer focused recycling programme – mobile phones, Christmas cards and carrier bags added to existing store recycling facilities.
- Launch of biodegradable packaging trial on organic fruit.
Social Achievements
- Most successful year for Computers for Schools, having donated over £70 million worth of ICT equipment.
- Raised over £2 million for Alzheimer’s Society and Alzheimer Scotland Action on Dementia.
- Maintained membership of the BITC PerCent Club, donating more than 1% of pre-tax profits.
- Opened two regeneration stores, creating 1,050 new jobs.
- Launched the Tesco Teaching Masterclass programme.
- Stocked over 7000 regional food products in local stores.
- Promoted 800 members of staff into managerial positions.
Governance Achievements
- Tesco is committed to high standards of corporate governance.
- Established a cross-functional Corporate Social Responsibility Group.
- Incorporated environmental, social and ethical issues into risk analysis at each level.
Climate Goals & Targets
- Reduce electricity and gas consumption in stores per square foot by 35% by 2006.
- Reduce water consumption in stores by 10%.
Environmental Challenges
- Managing standards across a large and complex own-brand supplier base.
- Addressing customer concerns about GM food.
Mitigation Strategies
- Working with suppliers to maintain, develop and improve standards.
- Providing proper information and clear labelling on GM food.
- Seeking reliable sources of non-GM ingredients.
Supply Chain Management
Responsible Procurement
- DTI Code of Conduct
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Global Reporting Initiative (GRI), DEFRA (UK Department of Environment, Food and Rural Affairs) Environmental Reporting Guidelines, Association of British Insurers (ABI) Guidelines on Disclosure of Social Responsibility
Sustainable Products & Innovation
- Organic products
- Biodegradable packaging
Awards & Recognition
- Business in the Community (BITC) Impact Endorsement Award for Computers for Schools
- Financial Times BITC ‘Programme Impact Award’ for Innovation for Leeds Seacroft Regeneration Partnership
- 5 awards for the St Rollox, Glasgow Regeneration Scheme
- 3 awards at Recruitment Advertising Awards
- Gold Award at the New York Film Festival for Pensions Video
Reporting Period: 2003-03 to 2004-02
Environmental Metrics
ESG Focus Areas
- Economic
- Social
- Environmental
Environmental Achievements
- Recycled 80% of cardboard and 85% of plastic used in operations
- Introduced degradable carrier bags
- Used brownfield sites for 96% of new developments
- Reduced energy consumption per square foot by 2%
- Reduced water consumption per square foot by 4.2%
Social Achievements
- Created 16,000 new jobs in the UK, many in deprived areas
- Gave £7m in computer equipment to schools
- Raised £2.5m for Barnardo’s
- Launched own-brand Fair Trade range
- Introduced a new confidential Protector Line for staff concerns
Governance Achievements
- Established the position of dedicated Corporate Governance Manager
- Carried out the first internal audit of corporate responsibility reporting system
Climate Goals & Targets
- 80% of supply base compliant with Nature’s Choice standards by 2005
- 100% of suppliers in 55 countries worldwide compliant with Nature’s Choice by 2006
- Reduce energy consumption per square foot by 35% by 2006
- Open 3 partnership stores, create 1000 jobs, initiate 6 new partnerships
Environmental Challenges
- High expectations from investors, media, public, NGOs, and government
- Difficulties at plastic recycling contractors
- Concerns over confidentiality, complexity, and duplication of effort in certain surveys
- Accusations of strong-arm tactics in dealings with South African suppliers
- Need for better structured relationships with NGOs
Mitigation Strategies
- Increased seniority of the CR Committee, now reporting to the Board
- Changed the company used for plastic recycling
- Decided not to participate in Race to the Top due to concerns
- Maintained that accusations of strong-arm tactics were wrong; emphasized partnerships with suppliers
- Setting up a more organized contact program with NGOs, commissioning qualitative research
Supply Chain Management
Supplier Audits: 83 high-risk sites audited (2003/04)
Responsible Procurement
- Ethical Trading Initiative (ETI) Base Code
- SEDEX (web-based system for supplier data on labor standards)
- Buying With Your Eyes Open (BWYEO) and Supplying With Your Eyes Open (SWYEO) training courses
- Nature’s Choice scheme for fruit, vegetable, and salad suppliers
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Own-brand Fair Trade range
- Healthy Living products
- Free From range
- MSC-certified seafood products
Awards & Recognition
- AAAAB rating in Business in the Community’s 2004 Corporate Responsibility Index
- Queen’s Award for Enterprise for green trays
Reporting Period: 2005-03 to 2006-02
Environmental Metrics
ESG Focus Areas
- Community
- Corporate Responsibility
- Sustainability
- Ethical Trading
- Environmental Impact
- Healthier Choices
- Supplier Relations
- Climate Change
- Energy Efficiency
- Waste Reduction
- Packaging
- Recycling
- Animal Welfare
- Seafood Sourcing
- Diversity & Inclusion
- Health & Safety
Environmental Achievements
- Reduced energy use by 15% (165 kWh/ft² reduction)
- 97% of new stores developed on brownfield sites
- Increased volume of products delivered per litre of fuel by 8%
- Reduced water consumption by 7.7% (264,289 m³)
- Recycled 71% of waste (384,517 tonnes)
- All year two growers registered for Nature's Choice
- All year two suppliers audited for Nature's Choice
- All pesticide uses of year two growers reviewed for Nature's Choice
- Established a £100 million fund for sustainable environmental technology
- Opened a model energy-efficient store in Diss using 20% less energy
- Introduced a 5% bioethanol mix into standard unleaded petrol
- Converted standard diesel pumps to biodiesel in the South East and North West England
Social Achievements
- Gave 1.9% (£41,768,741) of pre-tax profits to charities and good causes
- Increased cumulative value of computer equipment supplied to schools to £101m
- Over 549,880 women participated in Cancer Research UK's Race for Life
- 21,927 Tesco staff participated in Race for Life
- Nutritional signposting on over 2,500 products
- 83% retention of experienced staff
- 95.1% of retail staff trained to bronze standard
- Launched Sport for Schools and Clubs
- Reduced reportable accident rates among customers by 14.1%, store staff by 5.3%, and distribution staff by 14.4%
- Introduced a range of initiatives to support disabled customers and staff
- Improved paternity pay and set up a joint working party on flexible working with Usdaw
Governance Achievements
- Each country now has a corporate responsibility strategy measured in their Steering Wheel
- All Tesco Commercial teams received training on supply chain labour standards
- 100% of high-risk own-brand suppliers underwent independent ethical assessments
- 100% of high-risk own-brand suppliers received training
Climate Goals & Targets
- Not disclosed
- Reduce CO2 produced per case of goods delivered by 30% over the next three years
- Reduce water consumption by 15% over the next three years
- Divert 80% of waste from landfill over the next three years
- Achieve 100% compliance with Nature's Choice standards by 2007
- Reduce energy use per square foot by 50% by 2010
- Reduce carrier bag usage by 25% by 2008
- Recycle 72% of waste by 2006/07
- Increase the amount of products containing recycled materials
- All eligible own-brand products to have nutritional signposting by Spring 2007
- Reduce reportable accident rate by 10% over the next three years
- Launch six Regeneration Partnership stores in 2006/07
Environmental Challenges
- Office of Fair Trading (OFT) referral of the grocery industry to the Competition Commission
- Railway tunnel collapse at Gerrards Cross development site
- Concerns raised about minimum wage payments and pesticide use on South African apple and pear farms
- Disappointing results in NGO surveys of supermarket seafood sourcing policy
Mitigation Strategies
- Worked to resolve issues with the OFT and Competition Commission
- Funded compensation schemes for those affected by the Gerrards Cross incident
- Conducted a detailed investigation into claims of minimum wage violations and pesticide misuse in South Africa (found no evidence to substantiate them)
- Reviewed seafood procurement policy and published detailed sourcing information on the website
Supply Chain Management
Supplier Audits: 100% of high-risk suppliers audited annually
Responsible Procurement
- Ethical Trading Policy based on ETI Base Code
- Supplier Code of Practice
- Nature's Choice environmental standards
- Sedex for data sharing on labour standards
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products and technologies
Reporting Standards
Frameworks Used: GRI 2002 Sustainability Reporting Guidelines
Certifications: ISO 14001 (printer)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Degradable carrier bags
- Products with recycled materials
- Healthy Living and Kids ranges
- Wholefoods range
- MSC-certified seafood
- Outdoor bred pork
Awards & Recognition
- Sector leader in the Business in the Community (BiTC) CR Index
- Leading food and drug retailer in the Carbon Disclosure Project Climate Leadership Index
- Hermes 2005 award (Poland)
- Ubi Caritas 2005 Award (Poland)
- Best environmental project award (Ireland)
- President’s Award from the Chambers of Commerce (Ireland)
- Business in the Community Membership Charter (Ireland)
- Credit Suisse’s Employer of the Year award (Czech Republic)
- National Deafblind Friendly Corporate Award
- Best Supermarket in the Tommy’s parent-friendly awards
Reporting Period: 2018-2022
Environmental Metrics
ESG Focus Areas
- Sustainable Agriculture
- Animal Welfare
- Climate Change
- Biodiversity
- Water Stewardship
Environmental Achievements
- Roll out of LEAF Marque certification scheme across entire global produce supply chain supplying the UK (ongoing, aiming for completion by 2025)
- Expanded Group net zero target to include full value chain (Scope 1, 2, and 3), aligned to 1.5°C trajectory
- Worked with biggest potato supplier to subsidise cover crops for farmers across 420 hectares of potato fields
- Supporting suppliers to deploy nature-based solutions to prevent water pollution
Social Achievements
- Supporting farmers through Tesco Sustainable Farming Groups (TSFGs) and Agriculture Produce Forums, sharing best practice and supporting innovation
- Providing £10m in extra funding for UK pig farmers
- Setting up a fair and transparent feed cost model for egg and poultry suppliers
- Fostering collaboration and knowledge sharing through TSFGs and sustainability scorecards
- Encouraging innovation through Tesco Agri-T Jam and Innovations Connections
Governance Achievements
- Tesco Welfare Approved (TWA) livestock requirements ensuring transparency and driving improvement
- All farms must comply with a recognised farm assurance scheme (e.g., Red Tractor) in addition to TWA requirements
- Commitment to reducing antibiotic usage as part of the Food Industry Initiative on Antimicrobials (FIIA)
Climate Goals & Targets
- Net zero across our value chain by 2050
- 50% of all fresh food sourced from areas of sustainable water management by 2030
- Entire global grower base supplying the UK to be LEAF Marque certified by 2025
- 100% of eggs sold from cage-free hens by 2025
Environmental Challenges
- Challenges related to increases in on-farm costs (feed, etc.) for UK pig farmers
- Measuring the impact of agriculture at an individual farm level
- Supply chain disruptions and headwinds
- Tackling both the climate and nature crises
Mitigation Strategies
- Providing £10m in extra funding for UK pig farmers
- Setting up a fair and transparent feed cost model for egg and poultry suppliers
- Working with suppliers and universities to understand the market readiness of methane-inhibiting technology
- Developing ambitious strategies for climate and nature
- Collaborating with industry on issues requiring collective action
Supply Chain Management
Responsible Procurement
- LEAF Marque certification
- Tesco Welfare Approved (TWA) standards
- Farm assurance schemes (e.g., Red Tractor)
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: LEAF Marque, TNFD, Science-Based Targets for Nature, Courtauld 2030 Commitment
Certifications: LEAF Marque, Red Tractor
UN Sustainable Development Goals
- SDG 2
- SDG 6
- SDG 12
- SDG 15
- SDG 17
Tesco's sustainable agriculture initiatives align with these SDGs by promoting sustainable food production, water efficiency, responsible resource use, biodiversity protection, and collaborative partnerships.
Reporting Period: 2020-21
Environmental Metrics
ESG Focus Areas
- Sustainable Agriculture
- Climate Change
- Biodiversity
- Water Management
- Soil Health
Environmental Achievements
- 50% of key suppliers have robust on-farm biodiversity improvement plans.
- 40% of key suppliers have robust on-farm water management plans.
- 40% of key suppliers have robust on-farm soil health improvement plans.
- Worked with Branston to subsidise cover crops for farmers across 650 hectares of potato fields.
- Removed invasive tree species along a water course in South Africa, saving approximately 53 million litres of water a year.
- 11% of the way toward halving the environmental impact of the average UK shopping basket.
Social Achievements
- Supporting farmers through Tesco Supplier Network, Future Farmer Foundation, and Tesco Sustainable Farming Groups (TSFGs).
- Co-funding free on-farm advice on water course protection in three UK river catchments with The Rivers Trust.
Governance Achievements
- Set science-based targets for manufacturing and agricultural supply chains, aligned to the Paris Agreement’s 1.5°C global warming trajectory. Aiming for net-zero across the supply chain by 2050.
- Implementation of the LEAF Marque environmental assurance scheme across the global produce supply chain (UK growers certified by end of 2022, global completion by 2025).
Climate Goals & Targets
- Net zero emissions across supply chain by 2050.
- Complete LEAF Marque certification across the global grower base by 2025.
Environmental Challenges
- Measuring the impact of agriculture at an individual farm level is complex.
- Agriculture and food production accounts for around 47% of Tesco’s carbon footprint.
Mitigation Strategies
- Helping agricultural suppliers improve impact measurement through tools such as the Cool Farm Tool and carbon assessment consultancy.
- Setting science-based targets aligned with the Paris Agreement.
- Working with suppliers to develop farm-level improvement and management plans.
Supply Chain Management
Responsible Procurement
- Working with suppliers to implement sustainable agriculture strategies and farm-level improvement plans.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Science-based targets aligned with the Paris Agreement
Certifications: LEAF Marque
Reporting Period: 2021-03-01 to 2022-02-26
Environmental Metrics
ESG Focus Areas
- climate change
- healthy, sustainable diets
- packaging & waste
- diversity & inclusion
Environmental Achievements
- Reduced food waste by 45% since 2016/17
- Removed more than 1.6 billion pieces of plastic since 2019
- Use 100% renewable electricity in the UK and Europe
- Committed to be carbon neutral in our own operations across the Group by 2035.
Social Achievements
- Donated 52.6 million meals to local charities across the Group through our food redistribution programmes.
- Reached an agreement with USDAW in the UK that sees a substantial increase in base pay, an extension of the colleague discount and new training and technology to upskill colleagues
- Committed to jumpstart the careers of more than 45,000 young people in the UK
Governance Achievements
- Refreshed capital allocation framework
- Launched an ongoing share buyback programme
Climate Goals & Targets
- Achieve net zero emissions across our entire value chain by 2050
- Be carbon neutral across our Group operations by 2035
- Reduce Scope 1 and 2 market-based emissions by 60% by 2025
- Increase sales of plant-based products by 300% by 2025 versus a 2018 baseline
- Increase sales of healthy products to 65% by 2025
Environmental Challenges
- Rising inflation impacting customer finances and operational costs
- Supply chain disruptions
- Market competition for talent
- Climate change impacts
Mitigation Strategies
- Investing in value proposition (Aldi Price Match, Low Everyday Prices, Clubcard Prices)
- Securing additional supply-chain capacity
- Talent planning and people development processes
- Developing decarbonisation pathways and aligning with 1.5°C pathway
Supply Chain Management
Responsible Procurement
- Responsible sourcing policies on key commodities including soy, palm oil, seafood etc.
- Supplier code of conduct
- Supplier sustainability requirements
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events, flooding
Transition Risks
- Carbon pricing policies, regulatory changes
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: TCFD
Third-party Assurance: Deloitte LLP (limited assurance on selected data)
Sustainable Products & Innovation
- Plant-based products
- Sustainable packaging alternatives
- Refilable cleaning products
Awards & Recognition
- Voted Britain’s Favourite Supermarket 7 years running
- MSC Supermarket of the Year 2021
- Leading retailer status within the World Benchmarking Alliance Food and Agriculture Benchmark
- Terra Carta seal
Reporting Period: 2022-02-26 to 2023-02-25
Environmental Metrics
ESG Focus Areas
- Climate change
- Diversity & Inclusion
- Responsible sourcing
- Food waste reduction
- Community investment
- Health and sustainable diets
Environmental Achievements
- 55% reduction in Scope 1 and 2 emissions since 2015 baseline
- First UK retailer to ban plastic wet wipes
- Removed two billion pieces of plastic from UK business
- All Tesco tea bags in the UK to be compostable by summer 2023
- Launched large-scale commercial field trial with suppliers to identify planet-friendly fertiliser alternatives
- Nearly 300 electric vans for customer deliveries
- 2,500 customer electric vehicle (EV) charging points across 600 stores
Social Achievements
- Nearly 8% increase in UK hourly colleague pay in 2022
- Substantial investment in colleague base pay across all markets
- Donated more than 52 million meals to food banks and charity partners
- Launched Black Action Plan in the UK
- Named among The Times Top 50 Employers for Women for the second year running
- Launched ‘Reduced in price. Just as nice.’ areas in over 100 stores to reduce food waste
- Kids Eat Free at Tesco Cafés during school holidays
Governance Achievements
- Enhanced climate governance framework encompassing Board, committees, and Executive Committee
- ESG metrics integrated into executive remuneration policy
- Climate change established as a standalone principal business risk
- Group climate committee renamed Group planet committee
- Sustainability-linked bond
Climate Goals & Targets
- Net zero emissions across full value chain by 2050
- Carbon neutral across own operations by 2035
- Achieve 60% of electricity from PPAs and onsite generation by 2030
- 100% electric home delivery fleet by 2030
- 53% healthy sales by 2027 in Central Europe
- Reduce Scope 1 and 2 emissions by 60% by 2025
- Halve food waste in own operations by 2025
- 65% healthy sales by 2025 in UK & ROI
Environmental Challenges
- Cost-of-living crisis impacting customers and suppliers
- Inflationary pressures on operating costs
- Climate change impacts on supply chain and operations
- Geopolitical instability affecting supply chains
- Competition for talent
- Cybersecurity threats
- Data privacy regulations
Mitigation Strategies
- Strengthened value proposition with Aldi Price Match, Low Everyday Prices, and Clubcard Prices
- Invested in colleague pay and benefits
- Worked collaboratively with suppliers to manage inflationary pressures
- Implemented enhanced climate governance and decarbonisation plans
- Developed alternative sourcing strategies
- Invested in cybersecurity and data privacy measures
- Developed business continuity plans for supply chain disruptions
Supply Chain Management
Responsible Procurement
- Code of Business Conduct
- Sustainability policies on key risk commodities
- Supplier sustainability requirements
- Sustainability-linked supply chain finance programme
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Flooding
Transition Risks
- Carbon pricing
- Consumer preference shifts
- Technology changes
Opportunities
- Development of energy-efficient products
- Growth in sustainable product categories
Reporting Standards
Frameworks Used: TCFD
Third-party Assurance: Deloitte LLP (limited assurance on selected data)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through emissions reduction, waste reduction, renewable energy use, and sustainable sourcing
Sustainable Products & Innovation
- Plant-based meat alternatives
- Own brand products with enhanced sustainability credentials
Awards & Recognition
- Tesco Clubcard ranked best supermarket loyalty scheme in the UK
- Tesco Bank won Credit Builder Card Provider of the Year and Best Card Provider (Introductory Rate) at the Moneyfacts Awards
- Tesco Bank won Credit Card Provider of the year at the 2023 Moneyfacts Consumer Awards
Reporting Period: 2023-24
Environmental Metrics
ESG Focus Areas
- Climate Change
- Nature
- Community
- Colleagues
- Suppliers
- Customers
Environmental Achievements
- 61% reduction in Scope 1 and 2 emissions versus 2015 baseline
- 100% of electricity from renewable sources
- Expanded low-carbon fertiliser trial
- Plans to install solar panels on 100 large stores
- Deployed 571 electric home delivery vans
Social Achievements
- Launched £5.3m Stronger Starts grant scheme
- Donated more than 450,000 free meals to children
- Launched Stronger Starts apprenticeships
- Biggest ever single investment in store colleague pay (£12.02/hour)
- Enhanced parental leave and other colleague benefits
Governance Achievements
- Appointment of new Chair
- Sale of Tesco Bank operations and strategic partnership with Barclays
- Continued compliance with UK Corporate Governance Code
- Strengthened risk management framework
Climate Goals & Targets
- Net zero emissions across all scopes by 2050
- Net zero emissions on Scopes 1 and 2 by 2035
- Reduce Scope 3 emissions by 55% by 2032 (from 2019 baseline)
- Reduce Scope 1 and 2 emissions by 85% by 2030 (from 2015 baseline)
- 100% electric delivery van fleet by 2030
- Source 60% of electricity from onsite and offsite PPAs by 2030
- Source soy and palm oil from verified zero deforestation areas by 2025
Environmental Challenges
- Cost-of-living pressures impacting customers
- Geopolitical uncertainty and supply chain disruptions
- Competition in the grocery sector
- Climate change risks (physical and transition)
- Cyber security threats
Mitigation Strategies
- Relentless focus on value for customers
- Diversified supplier base and contingency plans
- Investment in technology and digital capabilities
- Science-based targets for net-zero emissions
- Investment in cyber security and data privacy
Supply Chain Management
Responsible Procurement
- Policies and guidance to ensure human rights are respected
- Contractual agreements with suppliers articulating expected standards
- Supplier audit programmes to monitor compliance
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events impacting supply chain and store operations
Transition Risks
- Carbon pricing
- Changing consumer preferences
- Technological shifts
Opportunities
- Growth in low-impact product ranges
- Energy savings from efficient solutions
- Electric vehicle charging for customers
Reporting Standards
Frameworks Used: TCFD, SBTi
Certifications: LEAF Marque
Third-party Assurance: Deloitte LLP (limited assurance on selected metrics)
Sustainable Products & Innovation
- Finest range
- Plant Chef ready meals
- Range of plant and dairy alternatives
Awards & Recognition
- Britain’s Favourite Supermarket (The Grocer Gold Awards)
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Diversity of the Group’s global leadership
- Food waste
- Greenhouse gas emissions
Environmental Achievements
- Reduced greenhouse gas emissions
- Reduced food waste
Social Achievements
- Increased diversity in the Group’s global leadership
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Climate change (physical, financial, people and reputational risks)
- Cyber security incidents
- Supply chain disruptions
- Ethical concerns (human rights abuses)
- Competition in the retail market
- Maintaining brand reputation
- Data security and privacy breaches
- Compliance with legal and regulatory requirements
- Workplace health and safety
- Product safety and traceability
- Litigation
Mitigation Strategies
- Efficiency improvements, innovation, renewables, waste minimization, policy advocacy, sustainable management of natural resources and ecosystems
- Dedicated cyber-security program
- Diversification of suppliers, identification of alternative suppliers, technology solution for identifying high-risk raw materials and regions
- Targeted response strategies, innovative due diligence and monitoring methods
- Developing multiple formats (including online channels), market scanning and competitor analysis
- Monitoring stakeholder perceptions
- Clear privacy compliance and protection policies, structured staff training
- Policies and procedures to monitor and guide legal, regulatory and tax compliance
- Safety management framework, policies and procedures
- Policies and procedures to ensure product safety, proper packaging and labeling
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: KPMG LLP, Deloitte LLP
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: March 2008 to February 2009
Environmental Metrics
ESG Focus Areas
- Climate Change
- Communities
- Suppliers & Ethical Trading
- Customer Choice & Health
- Our People
Environmental Achievements
- Halved energy use per square foot in UK stores (against a 2000 baseline)
- Opened first new format environmental store in Cheetham Hill, Manchester, with a 70% smaller carbon footprint than an equivalent 2006 store
- Reduced in-store waste going to landfill by one-third
- First major retailer to carbon label 100 own-brand products in Ireland and the UK
Social Achievements
- Helped over 4.6 million people get active globally
- Removed over 2,500 tonnes of saturated fat and 3,000 tonnes of salt from UK products since 2005
- Over 250 store Community Champions in six countries
- Launched Community Promises to engage staff in community initiatives
- Raised a record £6.2 million for UK Charity of the Year
- 86% of new managers appointed from within Tesco
- Local Employment Partnerships in the UK provided jobs for the long-term unemployed
- Appointed first female director in South Korea
Governance Achievements
- Appointed a Code Compliance Officer to handle supplier issues
- No complaints made to the Code Compliance Officer in 2008
- Revised ethical trading guidelines and issued a new Code of Practice
Climate Goals & Targets
- Reduce CO2 emissions from existing stores and distribution centers by at least 50% by 2020 (compared with 2006)
- Reduce CO2 emissions from new stores by 50% by 2020 (compared with 2006)
- Reduce by 50% the amount of CO2 used in distribution network to deliver a case of goods by 2012 (compared with 2006)
- Recycle 95% of store waste in the UK by 2010
- Cut carrier bag use by 70% by 2010
- Increase sales of local products to £1 billion by 2011 in the UK
Environmental Challenges
- Debate about the longer-term impacts of biofuel
- Inability to report Group water use in 2008
- Weight reduction may not be the best measure of packaging environmental benefit
- Work to do to meet the target of auditing 100% of high-risk supplier sites
- Active dialogue with animal welfare organizations to improve standards
- Work to develop common standards and targets for nutritional labelling
- Need to increase the local impact of community activities
- Need to improve women's representation at senior levels
Mitigation Strategies
- Asked the Sustainable Consumption Institute (SCI) at Manchester University to study biofuel impacts and water use
- Working with suppliers to find a better approach to packaging reduction
- Increased the number of high-risk supplier sites audited to 87%
- Engaged in active dialogue with animal welfare organizations
- Working with governments, health organizations, and industry bodies on nutritional labelling
- Building on the success of initiatives such as South Korean Culture Centres
Supply Chain Management
Supplier Audits: 1,819 independent audits carried out on suppliers to UK business in 2008
Responsible Procurement
- ETI Base Code
- Risk assessment of supplier sites
- Independent audits of high-risk sites
- Supplier training programs
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: WBCSD greenhouse gas protocol
Third-party Assurance: Environmental Resources Management Limited (ERM)
Sustainable Products & Innovation
- Greener Living brand
- Energy-efficient light bulbs
- E-leather shoes
- Concentrated squash
- Reduced packaging on Easter eggs
- Fairtrade products
Awards & Recognition
- Sustainable Pack of the Year award
- Starpack Silver Star award for Environment and Innovation
- Best Practice Recruitment award
- North West Local Employment Partnership Awards
- Employer of the Year (Tesco Czech Republic)