Supply Chain's Role in Tesco's Sustainability Ambitions
As corporate sustainability pressures grow, Tesco is pioneering a comprehensive approach to decarbonisation that extends far beyond traditional retail strategies.
The UK-headquartered retail giant is not just setting ambitious environmental targets but actively reshaping its entire operational ecosystem to achieve carbon neutrality by 2035.
Solar power: redefining corporate energy procurement
Tesco has made a landmark move in renewable energy procurement by signing the UK's largest corporate Power Purchase Agreement (PPA) for solar power.
The agreement with Cleve Hill Solar Park represents a transformative approach to supply chain energy management.
By securing 65% of the solar power generation from a 373MW project on the north Kent coast, Tesco is demonstrating how strategic energy partnerships can drive significant environmental and operational improvements.
"This is being delivered utilising EDF's unrivalled energy market knowledge and expert trading capabilities, to guarantee a reliable source of clean and affordable energy," explains Matthew Nunn, Director of EDF Business Solutions.
“It’s great to see solar power playing such an important role in Tesco’s progress towards carbon neutrality.”
The PPA, spanning 15 years, will generate enough clean energy to power the equivalent of 144 large stores annually, underlining the scale of Tesco's commitment.
Keith Gains, Managing Director and UK Regional Lead at Quinbrook, which is building the Cleve Hill park, highlights the broader implications: "Tesco's commitment to Cleve Hill Solar Park underscores the value of the project which has set new benchmarks for UK solar.
"We believe it is a blueprint for the next generation of energy transition infrastructure in the UK."
A comprehensive sustainability strategy
Tesco's approach extends well beyond renewable energy procurement. The company has developed a multi-faceted strategy targeting comprehensive supply chain sustainability.
With science-based targets validated by the Science Based Targets Initiative (SBTi), Tesco aims to reduce absolute Scope 1 and 2 emissions from its operations by 85% by 2030 and cut absolute Scope 3 emissions from energy and industrial sources by 55% by 2032.
The retailer is also working strategically with suppliers to implement their own net-zero plans by the end of 2023.
Additional targets include achieving 100% deforestation-free status for all primary risk commodities and increasing the proportion of healthy food sales to 65% by 2025.
It's also participating in initiatives like Science-Based Targets for Nature (SBTN) to ensure supply chain traceability.
Supply chain transformation and climate resilience
Ken Murphy, Group CEO at Tesco, articulates the company's holistic vision: "With the effects of climate change now upon us, we're absolutely committed to achieving our target of net zero by 2050. It will require us to transform the way we run our business, from how we produce our products in partnership with our suppliers, how we run our stores and transport network and how we encourage our customers to make healthy and sustainable choices."
Tesco's initiatives span multiple domains, including transitioning to an electric home delivery fleet by 2030 and enhancing energy efficiency through technologies like heat pumps.
"We've led the way on action on climate change, from adopting 100% renewable electricity across the group to scaling innovations in our supply chains," Ken adds. "We now must work even harder, in collaboration with our suppliers and partners, to achieve our goals."
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