Tesco announces new Group-wide net zero target of 2035 for its own operations

24 September 2021

• Retailer also sets out Group-wide commitment to cut emissions from its supply chain and products to zero by 2050

• New ambition is in line with UN aspiration of keeping global warming below 1.5C

• Tesco will set out plans on how to cut emissions from all key emission sources

• Call to action to suppliers to work with Tesco to achieve this target

Tesco has today strengthened its ambition to tackle climate change by announcing a new Group-wide net zero target of 2035 for its own operations, including Ireland. The retailer has also set out a commitment to cut emissions including those generated by the products it sells and across its supply chains to zero by 2050, in line with the UN’s aspiration of keeping global warming below 1.5C.

Often referred to as Scope 3 emissions, Tesco’s 2050 commitment will cover all emissions generated across its entire value chain. This includes the sourcing of raw materials and food production, where emissions are generated through agriculture and manufacturing; in the use of Tesco products, including food waste; and in peoples’ dietary choices, where an increase to more plant-based food is required to cut emissions.

Emissions from Tesco’s products and supply chain make up more than 90% of the retailer’s total emissions footprint. To date, 100 of Tesco’s largest international suppliers have already reduced manufacturing emissions by 20%. The retailer has today written to all of its suppliers to ask for their support in the transition to a low carbon economy.

To date, Tesco Ireland has made progress on reducing emissions in its own operations by reducing its electricity consumption by 25%, sourcing all its electricity from renewable sources as well as substantial changes to lighting, heating, ventilation, and refrigeration in its store estate.

Over the next 12 months, Tesco will set out a clear plan for achieving its new targets, including detailed decarbonisation roadmaps for some of its key emissions areas, such as product manufacturing.

Activities include:

• Supporting all suppliers to establish a net zero ambition and set science-based targets

• Accelerating operational decarbonisation across key emissions hotspots such as refrigeration, heating and transport

• Trialling innovations with suppliers to reduce emissions, including the use of low-carbon fertiliser and alternative animal feed such as insect meal

• Cutting emissions associated with customers’ diets, including increasing the sales of plant-based products

• Advocating for collaborative industry action and support from Government

 

Welcoming the announcement, Minister for the Environment, Climate and Communications, Eamon Ryan TD, said: “I welcome this commitment by Tesco in advance of the COP26 summit on climate and urge them and their suppliers to follow through. These actions will be beneficial in themselves and show leadership for the wider business community. When the Climate Act was signed into law this summer, we committed ourselves to achieving the transition to a climate resilient, biodiversity rich, environmentally sustainable and climate neutral economy no later than 2050. Consumers want to do the right thing for the planet, and they need businesses to step up to the mark and make that possible. Actions such as this will also support our long-term competitiveness and create new jobs in the green economy.”

Tesco Group CEO, Ken Murphy said: “In this critical year for tackling climate change, it’s right that we set out this ambitious commitment to cut emission across our entire value chain. We don’t yet have all the answers and we’ll need support from our suppliers and wider society to meet our targets, but it’s vital we take action now.

“Building on the good progress we’ve made in cutting emissions in our own operations, we’re also setting out a Group-wide net zero target of 2035. These new commitments will bring an unprecedented level of transparency to our emissions footprint and will allow us to identify and tackle those areas where urgent transformational change is needed.” 

Tesco Ireland CEO, Kari Daniels said: “As the first retailer in Ireland to set the ambition to achieve net zero emissions in our own operations by 2035 and in the value chain by 2050, we are setting unprecedented ambitions for our industry. Net zero is one step further in making real, tangible change when it comes to addressing climate change.

Emissions from our supply chains and the use of our products account for most of our emissions. It’s vital we continue the good work in our own operations but also drive collective action and collaboration with our suppliers, and industry, to succeed in meeting these commitments.”

We’re encouraged that 100 of our largest international suppliers have already reduced manufacturing emissions by 20%, but we know we all have further to go.  We are encouraging our supply base to engage with us to set out a roadmap to work towards these targets and support the transition to a low carbon economy.”

CEO of Business in the Community Ireland, Tomás Sercovich said: “The recent IPCC report is a code red for humanity. Irreversible change is happening and must be stopped. It is exciting to see the Tesco Climate Ambition announced today as a clear roadmap to net zero across operations and most importantly its supply chain.

As a major retailer, this ambition will influence thousands of suppliers, employees and customers. In order to make real change happen, we need targets, transparency and systems change across industries. As we ramp up action and leadership towards COP26, we commend Tesco for this stated commitment.”

 

-ENDS-

Notes to editors:

• In 2009, Tesco became the first business globally to set the ambition to become a zero-carbon business by 2050.

• In 2017, it committed to science-based climate targets for its own operations on a 1.5-degree trajectory, in line with the more stretching aspiration of the Paris Agreement.

• It has published clear milestones for carbon emissions reduction in its own operations: -100% by 2035 in the UK, -35% by 2020, -60% by 2025, -85% by 2030 and -100% by 2050 across the whole Group. Its commitments and milestones are against a 2015 baseline.

Ireland Notes

• In 2020,the Tesco Ireland business changed its waste processes at store level, backhauling food waste for anaerobic digestion at Green Generation creating renewable gas which the business purchases to power six of its stores.

• And, as part of our partnership with Green Generation, we have also become the first Irish retailer to purchase renewable gas made from our own surplus food to power stores.Facilitated by Gas Networks Ireland, this will reduce our carbon emissions by 1,200 tonnes annually, with enough renewable gas created from our food surplus to power six of our stores in Ireland.

• Tesco Ireland has implemented a new scheduling / planning system for Grocery Home Shopping introducing smarter routes for our vans, resulting in less miles travelled and fewer carbon emissions. Recent efficiency improvements made to the fleet of vans is predicted result in annual reductions of 430 tonnes of C02 emissions; in line with the Tesco sustainability strategy, the Little Helps Plan.

• Tesco Ireland supports a network of almost 50 EV charging at stores across the country, in partnership with ESB.