How we calculate the food waste figure - Central Europe

Glossary

Term

Definition

Food surplus

Unsold food. This includes donations, animal feed and waste

Donations

Food donations to charity for human consumption

Animal Feed

Food surplus used for feeding animals. This includes food sold as animal feed and food donated to zoos

Food waste

Unsold food that is disposed of:

“Food waste is any food, and inedible parts of food, removed from the food supply chain to be recovered or disposed (including composed, crops ploughed in/not harvested, anaerobic digestion, bio-energy production, co-generation, incineration, disposal to sewer, landfill or discarded to sea)”.

This includes both food that is safe and not-safe for human consumption. It does not include food donated or sent to animal feed.


Methodology

Scope and Definitions

The methodology outlined below is used to calculate the total tonnes of food wasted in our Central European operations in the full Tesco financial year 2016/17. The information provided is in conformance with the Food Loss and Waste Accounting Standard (FLW Standard).

Timeframe

The published figure represents the food wasted in our full financial year 2016/2017. This year, this includes 52 weeks, from 28th February 2016 to 25th February 2017 inclusive.

Store Location and Type

The scope of this calculation covers food waste arising only from our depots and stores in Central Europe (Czech Republic, Hungary, Poland and Slovakia). Food waste arising in restaurants and staff canteens in our stores and depots are out of scope, as is any food waste arising in operations owned by Tesco upstream in the supply chain, such as haulage wastage and committed crop wastage.

The calculation only covers our operations. Therefore, waste arising at our suppliers’ sites and from third party counters in Tesco stores is not included.

Food Waste Definition

Material types: The scope of the calculation includes food waste and associated inedible parts.

Destinations: The definition of food waste is based on that of EU FUSIONS[1]: “Food waste is any food, and inedible parts of food, removed from the food supply chain to be recovered or disposed (including composed, crops ploughed in/not harvested, anaerobic digestion, bio-energy production, co-generation, incineration, disposal to sewer, landfill or discarded to sea)”.

Therefore, food donated to charities or sent to animal feed is not considered to be food waste.

Packaging waste is excluded.

Food Categories

All food categories sold at Tesco are included in the scope[2].

During the calculations, all non-food items are removed from our waste data. The following products are out of scope and therefore excluded from the calculations:

  • All products in non-food categories, for example health & beauty, pet care or electrical products.
  • Plants and flowers in the Produce Category.
  • Some individual products were excluded in other Categories where they were clearly not food, for example: books, glassware.

Data Sources

In order to calculate the amount of food wasted each year we record the following data in our stores and depots.

Retail waste: This dataset contains the number of retail units wasted and the total value (£) of such waste per item, split by waste type –

  • DAM waste: products that are damaged in store, whether on the shop floor or in storage
  • OOC waste: Products that exceed the ‘Best before’ or ‘Use by’ date and can no longer be sold
  • Product Write Off waste: Products that are not suitable for sale. For example, the supplier has sent a request to withdraw the product as it is not safe for consumption
  • Exceptional Events waste: Products that are damaged during an exceptional event. For example, this waste could be caused by a fridge breakdown or flood
  • Clear-as-you-go: waste arising from clearance events

Depot waste: This dataset contains the number of depot units wasted and the total value (£) of such waste per item.

Product data: This dataset contains the contents weight and the packaged weight per item. Note that where duplicates are found, a conservative estimate is taken and the highest weight is used.

Store Donations data: This dataset contains the number of retail units wasted and the total value (£) of such waste per item, split by waste type –

  • Donations to food banks: donation of food for human consumption
  • Other donations: donations to other entities, for example food donations to zoos for animal consumption

Methodology

The bullet points below explain how we have calculated our total food waste tonnage for the full year 2016/17:

  • Included in the scope of our calculation is any food that has not been sold in our stores and depots. The non-food categories mentioned above are removed at this stage.
  • The number of units wasted per item is converted into a weight measured in tonnes by multiplying the number of units wasted by the per unit weight*.
  • We perform a ‘bottom up’ calculation from the waste tonnages for individual products (e.g. Gala Apples), to the commercial food category (e.g. Produce), to our entire Central European operations.
  • Waste tonnages are summed to obtain totals by category and for our entire Central European operations.
  • We used this calculation method for 96% of the waste products (by weight) from our own operations – in our depots and within our stores.
  • The remaining 4% of waste by weight (equivalent to 5% of total units wasted) occurs in products for which a weight is not available (this could include items such as baguettes in our bakery or food in our deli counters), or where the weight provided is not correct.
  • The following steps are taken to select the best estimate for product contents weights:
    • Product content weights are checked category by category and are marked as requiring adjustment where the content weight is missing or if it is high or low compared to the category average.
    • For all items requiring adjustment, items are checked on a sub-category basis and either the category or sub-category average is used based on expert judgement.
  • To minimise the risk associated with such estimates, categories with the largest number of waste items are prioritised and checked in more detail as these have the greatest impact on the total waste.
  • In addition, within each category, the products with the highest number of wasted units are checked manually one-by-one as these can also have a significant impact on the total waste tonnage.
  • The same method is used to measure the tonnage of donation as well as the total tonnage food sold.

* It is assumed that 1 L is equivalent to 1 Kg where product content weights are listed as volumes.

Food waste intensity figures

1.5% of food was wasted in our Central European operations. This figure represents our food waste per food sales by weight. The sales weight is measured using the same method for food waste: the number of units sold is multiplied by the same per unit weight used in the calculation described above.

Reporting against our target

Our ambition is that one day no food that is safe for human consumption will go to waste at Tesco. The waterfall chart presented in on our website illustrates how we are tracking against this target. This shows the breakdown for our food surplus in FY 16/17, i.e. all food that is present in our stores or depots that is not sold.

Damages: this includes all food waste that occurs due to damages or product write offs. In most cases this surplus is not suitable for donation and is therefore excluded from our target. For example, the packaging may have been compromised or a product may have been recalled from the market as it poses a risk to consumers.

Not Safe to Donate: This section shows the amount of food surplus that is not suitable for human consumption and is therefore wasted. These products cannot be donated by law or because of food safety issues. This includes waste arising due to fridge breakdowns, where the cold chain may have been compromised, making the food no longer safe to consume.

Donated: This includes all food donated to charities for human consumption from stores and depots.

Animal Feed: This includes surplus food that is safe for human consumption and has been sent to animal feed. This includes donations for animal consumption as well as food sent to produce animal feed.

Disposal: This is food that is safe to donate, but which was not donated. This is the number we use to measure our progress against our target.

 

 

[1] For more information see: https://www.eu-fusions.org/

[2] United Nations Central Production Classifications 2.1 Divisions 21 – 24