Improving energy efficiency in our stores and distribution

Lasted updated 18/04/2019

Tesco has a long-term ambition to become a zero carbon retailer by 2050. We have a number of initiatives across the group to make our stores and operations more energy efficient and reduce our impact on the environment.

Investment in energy efficiency between 2015 and 2018 has delivered over £37m in savings to date. Our broader energy efficiency programme and further investment in 2019 will deliver further significant energy reductions.

Energy engagement 

The way colleagues operate equipment can have a significant impact on store energy consumption. Tesco have developed a number of energy engagement programmes to help share knowledge on how colleagues can work more energy efficiently.

In 2015 Tesco collaborated with the behaviour change charity Global Action Plan to develop an energy engagement programme, which was delivered to 120 stores in Scotland. The programme won the 2015 Edie Sustainability Leaders Award for Employee Engagement and Behaviour Change.

Since then, an energy engagement programme ‘Energy Matters’ was created focusing on reducing energy use in Bakery and Hot Counters areas of stores. Within the first week of the 165 store trial, 86% of bakeries saw an energy reduction. The trial was highly commended at the Energy Management Association awards in 2017 and the rollout to all bakeries was completed in 2018.

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.