Integrating Sustainability: Tesco’s Approach to a Greener Future

Tesco, one of the UK's largest grocery retailers, has set ambitious targets for reducing its Scope 3 emissions—those indirect emissions associated with its supply chain.

By 2032, Tesco aims to cut these emissions by 55%, particularly focusing on areas related to forests, land use, and agriculture.

This commitment is part of a broader strategy to achieve net-zero emissions across its entire value chain by 2050.

Over 90% of Tesco's greenhouse gas emissions arise from its value chain, predominantly from the production of the products it sells.

Recognizing this, the company has rolled out its 'Planet' sustainability agenda, which includes various initiatives aimed at enhancing energy efficiency and sustainability practices among its suppliers.

For instance, Tesco plans to ensure that all primary risk commodities are deforestation-free by 2025 and is actively promoting the use of low-carbon fertilizers among key vegetable suppliers(ESG Broadcast)(Climate Action).

Tesco's targets are validated by the Science Based Targets Initiative (SBTi), highlighting its commitment to scientific rigor in setting these goals.

The retailer's efforts encompass six strategic areas: improving products, decarbonizing transport, reducing store emissions, supporting sustainable consumption, eliminating waste, and protecting nature.

These initiatives are not only critical for achieving emissions reductions but also for enhancing Tesco's overall sustainability performance(ESG Broadcast)(Climate Action).

Tesco has taken several proactive measures to achieve its sustainability and emissions reduction targets:

1. Supplier Engagement: Tesco is actively working with its suppliers to promote best practices in sustainability. This includes initiatives to encourage suppliers to adopt low-carbon fertilizers, improve energy efficiency in production processes, and minimize waste .
2. Sustainable Sourcing: The company has committed to ensuring that all primary risk commodities are deforestation-free by 2025. This includes commodities such as palm oil, soy, and cocoa, which are often linked to deforestation .
3. Food Waste Reduction: Tesco has introduced measures to combat food waste, including initiatives that aim to halve food waste in its operations by 2030. The company is working with charities to redistribute surplus food and has developed a range of educational campaigns to help customers reduce waste at home .
4. Carbon Neutral Logistics: The retailer is transitioning to a carbon-neutral logistics operation by 2028, utilizing electric vehicles and optimizing delivery routes to reduce emissions .
5. Sustainable Packaging: Tesco is working towards making all of its packaging recyclable or compostable by 2025. The company is also reducing plastic usage in its products and exploring innovative packaging alternatives .
6. Carbon Reporting: Tesco is transparent about its progress and challenges, regularly publishing updates on its sustainability efforts and emissions reductions. This allows stakeholders to track its performance and engage in meaningful discussions about sustainability .

From Tesco's ambitious targets and actions related to sustainability and Scope 3 emissions, we can derive several valuable lessons for effective product management.

Here are the key insights:

• How can we enhance stakeholder collaboration to drive collective impact? Understanding the importance of partnerships and sharing best practices across the supply chain is essential for meaningful change. This question encourages exploration of existing relationships and identifies opportunities for deeper engagement with suppliers, distributors, and other stakeholders.
• What specific and measurable goals should we set to inspire accountability and progress? Setting ambitious targets, like Tesco's commitment to reduce Scope 3 emissions by 55% by 2032, can motivate teams. This question prompts leaders to consider their own organization’s goals and how they can establish similar accountability frameworks.
• In what ways can we integrate sustainability into our core operations? This question addresses the need for sustainability to be embedded in all business practices, from product design to logistics. It encourages a holistic view of operations and the exploration of sustainable practices throughout the organization.
• What innovative solutions can we develop to overcome sustainability challenges? Encouraging a culture of innovation is vital. This question invites brainstorming around creative and cost-effective approaches to reduce environmental impact, ensuring that teams feel empowered to explore new technologies and processes.
• How can we improve transparency and accountability in our sustainability efforts? Regularly reporting on progress builds trust. This question leads to discussions about the systems in place for monitoring, reporting, and communicating sustainability initiatives to stakeholders, and how these can be enhanced.
• What strategies can we implement to educate and engage consumers effectively? Engaging consumers is crucial for driving behavioral changes. This question explores methods for involving customers in sustainability efforts and how education can shape their choices to align with the company’s sustainability goals.