Tesco named top UK climate change business

13 Oct 2011

Tesco has been named the best UK company for its efforts in tackling climate change, by industry-renowned FTSE 350 Carbon Disclosure Project. The news comes just one month after it was awarded top retailer globally for the second year running.

Tesco has been named the best UK company for its efforts in tackling climate change, by industry-renowned FTSE 350 Carbon Disclosure Project. The news comes just one month after it was awarded top retailer globally for the second year running.

Tesco has been making efforts to cut its carbon emissions since 2007, as part of its climate change strategy1 to become a zero carbon business globally by 2050. The CDP’s FTSE 350 report assesses the business strategy as well as action on tackling carbon, alongside the quality and completeness of its carbon management and reporting. This year Tesco has achieved the highest ever disclosure score (97) of a FTSE 350 company and is the only company to be ranked two years running in the CDP’s Performance Leadership Index – rewarding comprehensiveness of climate change strategy.

In addition to opening the world’s first zero-carbon supermarket2, Tesco has carbon footprinted over 1000 products since 2008, currently the largest effort undertaken by any retailer.  This is part of a commitment to reduce supply chain greenhouse gas emissions by 30 per cent by 2020.

David North, UK Corporate Affairs Director said: “I’m delighted that the CDP recognises Tesco  as the best UK business and a global leader on tackling climate change.  We are on track to become a zero-carbon business and our low-carbon investment is already saving us £150 million a year.  But our strategy is about more than that.  We want to help lead the revolution in green consumption that we need if we are to succeed in tackling climate change.”

Activities that helped rank Tesco the best overall business in the UK CDP list include introducing a new low carbon distribution centre in Daventry3, installing giant distribution centre wind turbines4 to reduce emissions, reducing maximum fleet speed, introducing bigger lorries and installing energy monitoring boards in stores.   Since the last report, Tesco’s property portfolio5has increased while emissions continued to fall in the UK.

In addition, more than 350 suppliers in over 10 countries have joined the retailer’s new online ‘Knowledge Hub’ - a place for suppliers to share carbon reduction experiences through a variety of seminars, discussion forums and educational visits.  Tesco’s first set of ‘Greening the Supply Chain Awards’ were presented at the end of September, recognising suppliers making solid progress in carbon reduction. The retailer is also currently running five product trials to identify hotspots for carbon reduction.

ENDS

Notes to Editors:

Tesco has been named the best UK business overall for tackling climate change against other well known brands such as Sainsburys, Marks and Spencer and Morrisons. It was also the only UK business to appear in the top 10 of the CDP global ranking.

  1. Tesco aims to become a zero carbon business by 2050 and has set targets to halve distribution emissions per case of goods delivered (against a 2006 baseline) by 2012 and to halve building emissions per sq ft (against 2006/7), by 2020. Tesco has also set targets to reduce the emissions of the products in its supply chain by 30% by 2020, and to help customers to reduce their own carbon footprints by 50% by 2020.
  2. Tesco opened its third UK zero-carbon store in Welshpool this March, joining current zero stores already in Ramsey and Bourne.  There is also one in the Czech Republic, one opening this autumn in Thailand, and more planned across the Group.
  3. Our new Daventry distribution centre opened in May and includes a number of low-carbon features to reduce its carbon footprint, including being directly connected to the rail network which reduces distribution network emissions through the use of more trains and fewer trucks.
  4. Giant wind turbines power three of Tesco’s grocery distribution centres in Daventry and Newport. Each of the 90 metre high, 800 kw wind turbine produce a significant amount of the centres' energy needs, with each turbine able to produce the equivalent amount of renewable energy required to power 500 domestic homes.  Any surplus power is exported back to the national grid to meet local energy needs.
  5. Despite a 7.3% increase in floor space, Tesco’s UK carbon emissions fell 5% in absolute terms (the second year in a row it’s declined). Internationally, it’s also continued to decouple business growth from carbon emissions: In 2010-11 group net sales grew 8.8%, whilst its carbon footprint increased only 2%.