Tesco 2026 Report: Developing Supply Chain Resilience

Tesco's 2026 Sustainability Report details the retailer's work with suppliers, farmers and logistics partners to reduce emissions and improve food system resilience.

The company's approach centres on collaboration across its value chain, with almost 99% of its total carbon footprint coming from agriculture, manufacturing and customer product use rather than direct operations.

The report examines how Tesco is addressing climate pressure on food supply chains through partnerships that target sustainable farming, transport decarbonisation and waste reduction.

According to Tesco, food production generates roughly one third of global greenhouse gas emissions, making supplier engagement necessary for long-term sustainability goals.

Value chain emissions reduction

Tesco exceeded its December 2025 operational emissions target, cutting Scope 1 and 2 emissions by 68% compared with its 2015/16 baseline. The original target stood at 60%.

The company states that supplier collaboration is central to reducing its wider carbon footprint. Tesco works with farmers and producers through Sustainable Farming Groups to introduce lower-carbon farming techniques, precision agriculture and nature-based solutions.

These programmes could improve soil health and biodiversity while reducing emissions from agricultural production. The retailer has also launched data programmes with suppliers to improve carbon reporting accuracy and encourage adoption of science-based climate targets throughout the supply chain.

"Sustainability and seeking the protection of workers' rights across the food value chain is central to everything we do," says Ken Murphy, Chief Executive Officer at Tesco, in the company's 2026 Sustainability Report.

"Many of the challenges where we need to make further progress are areas that no company can tackle alone."

Ken adds that shared efforts across supply chains, government and the food industry will be required to overcome complex issues facing food systems.

Sustainable sourcing and agriculture

Tesco's planet plan focuses on six pillars including reducing store emissions, decarbonising transport, protecting nature, eliminating waste, improving products and supporting sustainable consumption. The company works with suppliers and farmers to promote sustainable agriculture, reduce deforestation and protect ecosystems.

Climate-related issues including droughts, flooding and biodiversity loss are placing pressure on food supply chains. Tesco is expanding nature partnerships, launching landscape restoration projects and introducing financial incentives for farmers adopting sustainable practices.

In manufacturing, Tesco is working with suppliers to create joint sustainability plans and share decarbonisation best practices through webinars and site visits. The business aims to achieve net-zero across its entire value chain by 2050 and net-zero in its own operations by 2035.

"As food systems come under increasing pressure, sustainability is key to our long-term resilience," says Christine Heffernan, Group Chief Communications and Sustainability Officer at Tesco, in the company's 2026 Sustainability Report.

"Our actions today help meet customer needs and strengthen supply chain stability for the future."

Transport and logistics operations

Tesco is investing in lower-emission logistics including electric vans, Bio-CNG trucks, rail freight expansion and transport efficiency projects designed to reduce road miles and fuel use. The company operates distribution centres that support its store network across the UK and the Republic of Ireland.

In 2025/26, the new Aylesford distribution centre was fitted with the largest solar panel array across Tesco's estate. The facility could demonstrate how energy generation can be integrated into logistics infrastructure.

Renewable energy plays a role in reducing emissions from operations. Tesco achieved 100% renewable electricity procurement across the group through renewable energy certificates, Power Purchase Agreements and on-site solar generation.

Rooftop solar panels were added to 29 UK stores during the reporting period. The business also invests in energy-efficient technology including fridge doors that use approximately one third less energy than open-fronted fridges, electric heat pumps replacing gas boilers and a group energy control centre that remotely monitors energy performance across buildings.

Food waste across operations

Food waste reduction remains a priority for Tesco, with the company committing to cut food waste in its own operations by 50% before 2030. The retailer acknowledged it did not meet its original 2025 target.

Tesco redistributed 44,554 tonnes of surplus food to people and animals in the UK during the reporting year. More than 5,000 tonnes of food surplus was converted into animal feed.

The company partners with charities and industry groups to address waste throughout the food system. In the UK and the Republic of Ireland, 65% of Tesco's food sales are classified as healthy, according to the retailer's reporting.

Tesco works with organisations including the British Nutrition Foundation to improve access to fruit and vegetables. The Free Fruit & Veg for Schools programme has provided more than 15.7 million portions of produce to children across the UK.

Packaging and circular economy

Tesco continues to improve packaging sustainability across its product range. According to the company, 99% of its own-brand packaging is now recyclable in the UK, including 87% through household kerbside collections.

The retailer's packaging strategy could reduce waste entering landfill and support circular economy principles. Changes to packaging design and materials are implemented through collaboration with suppliers and manufacturers.

"As Chair of the Sustainability Committee, I have seen first-hand the determination across Tesco to embed sustainability into every part of the business," says Stewart Gilliland, Chair of the Sustainability Committee and Non-Executive Director at Tesco, in the company's 2026 Sustainability Report.

"The store demonstrates how practical solutions can help us decarbonise retail and inspire change across the industry."

Stewart notes that the company has supported progress on healthier baskets, nature-based solutions and waste reduction while continuing to champion human rights and community programmes including Fruit & Veg for Schools.

Healthcare services and prevention

Tesco operates 365 in-store pharmacies that serve more than 500,000 customers every week, making it the UK's third largest pharmacy provider. Customers can access healthcare services including flu vaccinations, blood pressure checks and the retailer's Weight Loss Management service.

The company works with charities including the British Heart Foundation, Diabetes UK and Cancer Research UK to run awareness campaigns focused on prevention, early diagnosis and healthier lifestyles. Trusted advice on conditions including cancer, heart disease and diabetes is available through Tesco's Let's Talk programme developed with its Health Charity Partners.

In 2025, Tesco launched its first joint cancer early detection campaign with Cancer Research UK. Pharmacists were trained to guide customers towards cancer support and treatment services.

The retailer continued its diabetes and heart health campaigns, encouraging customers to complete type 2 diabetes risk assessments and free blood pressure checks through in-store pharmacies. Following a trial, the company rolled out menopause-friendly bays in more than 90 stores in partnership with GenM, providing access to products designed to ease menopause symptoms.

Community and accessibility initiatives

Tesco partnered with accessibility app Be My Eyes to help blind and partially sighted customers receive real-time support from store colleagues while shopping. For families and young people, Tesco expanded its Free Fruit & Veg for Schools programme with the British Nutrition Foundation.

The company distributed millions of free apples through its Free Fruit for Kids campaign. These initiatives could make healthier choices more accessible for customers.

Tesco's approach combines healthcare services, health education and community support. The retailer states this could improve long-term public wellbeing while making nutritious options affordable.

The company's sustainability report stresses that supply chain resilience and sustainability are necessary for the future of the food industry. Tesco continues to work with partners across its value chain to meet net-zero and sustainability goals while providing affordable food for customers.