Improving energy efficiency in our stores and distribution

Improving energy efficiency in our stores and distribution

Lasted updated 20/05/2021

Tesco continues to invest heavily in energy efficiency, and we are approaching the point where many of the major technology transition projects will be completed across our estate. For example, in 2021 all of our store salesfloor lighting and distribution centre lighting will be LED. We are now introducing intelligent controls that will allow us to manage our large estate energy consumption more effectively. In 2020-21 we achieved an 8% reduction in electricity consumption compared to the previous year through investing in and increasing our energy efficiency. This is a critical step towards achieving our target of becoming a net-zero carbon business in the UK by 2035. Looking ahead, we are driving further energy efficiency in our stores by using data to highlight energy waste through enhanced benchmarking and investing in AI technology. This will optimise our heating and air conditioning through predictive algorithms, helping us to reduce emissions from those sources as we transform our systems to zero carbon alternatives.

Tesco has signed up to RE100, committing to the ambitious target of sourcing 100% of our group electricity from renewable sources by 2030. Going further, we want to help transform the grid by using our demand to increase overall renewable generation, by sourcing additional energy beyond what already exists. One way to do this is by generating as much of our own electricity demand as possible. In the UK, we have installed wind turbines at four of our depots and solar panels at 62 stores and petrol filling stations, with plans to reach more stores over the next two years. We are also working directly with renewable energy providers, signing new offsite Power Purchase Agreements (PPAs) that will guarantee investment in the UK’s renewable energy infrastructure. Alongside renewable certificates, the Tesco Group now runs on 100% renewable electricity, and because of our onsite generation and PPAs, over 20% of Tesco Group electricity demand will be driving additional renewable generation.

Distribution efficiency - The F Plan

Distribution is one of the main areas that Tesco’s own operational carbon footprint comes from. To help us towards our ambition of becoming a zero carbon business by 2050, we have an interim distribution efficiency target:

  • 25% reduction in carbon emissions per case of goods delivered by 2020 (2011/12 baseline).

To help us achieve this, we launched the “F Plan” across the Group, a simple strategy to underpin every operational efficiency activity within Tesco Distribution. The strategy is based on four pillars:

  • Fuller cages and/or pallets – maximising the amount of goods delivered each journey
  • Fuller trailers and/or containers – maximising the amount of goods delivered each journey
  • Fewer miles – reducing the number of miles we have to drive
  • Fuel economy – increasing the distance we can drive for each litre of fuel used

The F Plan was pioneered in the UK but it is now followed throughout the Tesco Group.