SCIENCE-BASED TARGETS CASE STUDY: TESCO
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SCIENCE-BASED TARGETS CASE STUDY:
TESCO
P A R T N E R O R G A N I Z AT I O N S I N C O L L A B O R AT I O N W I T H
DISCLOSURE INSIGHT ACTION
COMPANY SUMMARY THE TARGETS
Tesco has co mmitted to redu ce
Tes co i s o n e of t h e
direct (sco p e 1 ) and indirect (sco p e 2 )
wo r ld ’s la rg e s t
g reenho u se g as (G HG ) emissio ns by 6 0 %
reta i le r s , w i t h more
by 2 0 2 5, u sing a 2 0 1 5 b ase-year. T e s co
th a n 6 , 0 0 0 o u t let s
al so co mmits to redu ce its sco p e 3 GH G
a c ro s s Eu ro p e a nd
emissio ns by 17% by 2 0 30 , u sing a 2 0 15
As i a s e r vi n g mi l l i on s
b ase-year. The emissio ns categ o rie s
of c u s to m e r s eve ry
covered by the sco p e 3 targ et ar e
week .
p u rchased g o o ds and services (s up p ly
chain), f u el and energ y rel ated act iv it ie s ,
WHY DID YOU SET SCIENCE-BASED u p stream transp o rtatio n and distrib ut ion ,
TARGETS? and waste g enerated in o p eratio n s .
Tesco’s science-b ased targ et wa s
T e sco h a s a lon g-st a n d i n g a m bi t i on to ap p roved by the Science Based Targ et s
b eco m e a n et-ze ro c a r bon compa ny by 2050 . initiative (SBTi) in Ju ne 2 0 17.
It has be e n ov e r t en yea rs s i n c e we s et o u r
first bu s i n e s s-wi d e c a r bon r ed uc t i on t a r gets
in 2 0 0 6. Fo l lowi n g t h e Pa r i s Agr eement ,
w e co n d u c t e d a rev i ew of our s h or t- a n d
m e di u m -t e rm p l a n s to en s ur e t h at our effo rts
As a memb er of R E1 0 0, b ro u g ht to yo u by T h e
w er e a l i g n e d wi t h wh at t h e s c i en c e t ells u s
Cl imate G ro u p in p artnership with CDP, T e s co
is r e q u i re d to h e lp k eep globa l t emperat ure
is co mmitted to so u rcing 1 0 0 % of its el e ct ricity
r ise b e low 2 ° C . T h i s r ev i ew s h owed t h at
f ro m renewab l e so u rces by 2 0 30 – to in clud e
alth ou g h ou r lon g-t er m, z ero- c a r bon
over 50 % f ro m PPAs and o n-site g enerat ion –
amb i t i o n (2 0 5 0) i s a li gn ed wi t h t h i s global
and has an interim mil esto ne to so u rce 6 5%
aim , we n e e d e d to s et st eeper a bs olut e
renewab l e el ectricity by 2 0 2 0 .
t ar g et s ov e r t h e s h or t- a n d med i um-t er ms.
T hes e t a rg et s h av e i n for m ed our r ev i s ed
Tesco is al so co mmitted to remove co mm od ity-
climat e c h a n g e st rat egy, compr i s i n g en erg y
driven defo restatio n f ro m al l su p p ly ch ain s
an d r e f ri ge ra nt e ffi c i en cy, r en ewa bles
by 2 0 2 0 , co mmitted to resp o nsib l e co r p orat e
de ploy m e nt a n d poli cy en ga gem ent .
eng ag ement in cl imate p o l icy and to re p ort
cl imate chang e info rmatio n in mainstre am
rep o rts as a f idu ciary duty.
WHAT WAS THE PROCESS OF SETTING WHAT ARE YOUR ACHIEVEMENTS SO FAR?
THE TARGETS?
• Ef f icie n cy improve me nts: Since 2 0 0 6 w e
In o rd er to s et ou r sc ienc e-based tar gets we have invested over £70 0 mil l io n in ene rg y
n e e d ed to a n sw e r thr ee qu estio ns: and ref rig eratio n ef f iciency imp roveme nt s .
This has redu ced emissio ns f ro m o u r store s
• Wh at a re c re d i ble c li m at e c h a n ge t a r gets fo r and distrib utio n centres by 41 % p er square
T e s co? fo ot and del ivered abso l ute redu ctio n s
ag ainst o u r 2 0 0 6 b asel ine desp ite sig n ificant
• H ow c a n we re a li st i c a lly a c h i ev e t h es e f lo o r area g rowth. We wil l co ntinu e to inv e st
t ar get s ? in ef f iciency imp rovements to meet our
targ ets.
• Wh at wo u ld i t cost to i mplement t h e
so l ut i on s ? • Re n ewable s: We have switched to 1 0 0 %
renewab l e el ectricity in the UK and th e
To an swe r t h e q uest i on s we plott ed t h e
R ep u b l ic of Irel and. In Asia, we investe d £8
1. 5 ° C a n d 2 ° C wa rm i n g t ra j ec tor i es a n d fou nd
mil l io n in o nsite g eneratio n in 2 0 1 6, w it h a
t hat ou r lon g-t e r m , z ero- c a r bon a m bi t i on
p l an to exp and renewab l e o nsite g en e rat ion
alig n s wi t h 1 . 5 ° C . We t h en m od elled wh at
f u rther. We have su ccessf u l ly develop e d a
it wou ld t a k e to r ea li st i c a lly a c h i ev e t h i s
cost-neutral renewab l e el ectricity p l an to
amb i t i on . W h i l e our exi st i n g c li m at e c h a ng e
2 0 30 fo r the who l e co mp any. This includ e s
st rat e gy wa s a l rea dy foc us ed on effi c i en cy
a co mmitment to ensu ring that the majority
improv e m e nt s , 60% of our operat i on a l
of o u r renewab l e el ectricity co mes f rom
fo otp ri nt com e s from our elec t r i c i ty us e so it
renewab l e o nsite g eneratio n and PPAs (i. e .
was c l e a r to u s t hat we would n eed to switch
l ess than 50 % f ro m certif icates).
to r e n ewa b l e e l ec t r i c i ty. We c r eat ed a costed
r en ewa bl e e l e c t r i c i ty roa d m a p wh i c h , a lo ng
w it h ou r e f f i c i e n cy proj ec t s , gav e s en i or WHAT ARE THE BENEFITS OF HAVING THE
le ade rs h i p con f i den c e t h at t h e n ew i nt er im TARGET?
t ar g et s we re a c h i eva ble.
• C limate ch an ge mitigation : The scien ce -
I n t e rm s of s co p e 3 emi s s i on s , we con d ucted b ased targ et il l u strates o u r co mmitme nt to
a full s u p p ly- c h a i n foot pr i nt s ur v ey of ou r the Paris Cl imate A g reement and q u ant ifie s
pro du c t p ortfol i o to i d ent i fy t h e h ot s pot s Tesco’s rig htf u l co ntrib utio n to achieve t h e
t hat s h o u ld be t ar get ed for GHG em i s s i on g o al s set o ut u nder it.
r educ t i o n s . T h rough t h i s proc es s we lea r ned
t hat we n e e d e d to s et d i ffer ent t a r get s • Motivation : Ou r targ et has al so b een
fo r ag ri c u lt u ra l em i s s i on s a n d emi s s i on s a so u rce of motivatio n and p ride fo r
fro m food m a n u fa c t ur i n g. Th i s r eflec t s t he co l l eag u es.
co nt ri b ut i on of t h es e li fe cyc le st a ges to o u r
• Supply ch ain e n gage me nt: Ou r targ et s act
ov e ra l l s u p p ly- c ha i n foot pr i nt a n d prov i d es
as an examp l e and of f er u s the o p p o rt un ity
t he be st rout e to wor k i n g wi t h our s uppli ers to
to co o p erate with o u r su p p l iers to ad d re s s
keep t h e g lo ba l tem perat ur e r i s e below 2 °C.
cl imate chang e imp acts and risks.
“Science-based targets have
helped us, for the first time, to
align our efforts to act on climate
change with those of the global
community.”
www.sciencebasedtargets.org
• R e p ut at i on : T h e t a r get s d emon st rat e ou r inco rp o rated these p ro jectio ns into our
se ri ou s n e s s i n t a c k li n g c li mat e c h a n ge, b oth mo del to set a sep arate redu ctio n targ et
to o u r i nv e sto rs a n d our ot h er st a k eh olders. fo r ag ricu ltu ral emissio ns f ro m other s cop e
It is a l s o p a rt of meet i n g our bus i n es s 3 co ntrib uto rs to reco g nise its u niq u e
purp os e to s e rv e our s h oppers a n d our chal l eng e.
co m m u n i t i e s .
• Imple me ntation strate gy: In o rder to s e cure
executive ap p roval fo r o u r science-b a s e d
DID YOU ENCOUNTER ANY CHALLENGES? targ ets we develo p ed a costed strate g y w it h
the Energ y, Pro p erty, and Treasu ry f un ct ion s
We s u cc es sf u l ly addr essed a nu m ber of of o u r b u siness, demo nstrating that th e
pot e nt i a l obst a c l es to ensu re o u r sc ience - targ ets co u ld b e real istical ly del ivere d in t h e
b a s e d t a r get s w e r e approv ed. timescal es p ro p osed.
• Awar en e s s a n d edu c atio n: Out s i d e of t he
su st a i n a bi l i ty a nd c li mat e c h a n ge t ea m, WHAT IS THE WIDER IMPACT
t he i d e a of s c i en c e- ba s ed t a r get s wa s new OF COMPANIES MAKING SUCH
an d we n e e d e d to ra i s e awa r en es s of t he COMMITMENTS?
co n c e p t b e fore s ec ur i n g buy- i n from others
in t h e bu s i n e s s . Science-b ased targ ets have hel p ed u s, for t h e
f irst time, to al ig n o u r ef fo rts to act o n clim at e
• Co ord i n at i on : As a food r et a i ler , our chang e with those of the g lo b al co mmu n ity.
scie n c e - b a s e d t a r get s touc h on va r i ous This al ig nment sig nal s the directio n of t rav e l
fun c t i o n s f rom proper ty to proc ur ement. in the f ig ht ag ainst cl imate chang e to a ll of
T his re q u i re d a c t i v e en ga gement a n d o u r stakeho lders – incl u ding o u r investors ,
co o rd i n at i on a c ros s ma ny i nt er n a l t ea ms to su p p l iers and cu sto mers. With mo re an d m ore
e ns u re t h e i r s u ppor t a n d i n put . b u sinesses setting science-b ased targ et s
we al so have the o p p o rtu nity to enco urag e
• A g r i c u lt u ra l e m issio ns: E mi s s i on s from
p o l icymakers to raise their natio nal amb it ion s ,
ag ri c u lt u re re p res ent s a roun d 7 0% of our
which wil l b e vital ly imp o rtant as they look
su p p ly c h a i n e mi s s i on s , wh i le t h e wor ld
to increase the l evel s of their Natio nal ly
is a l s o ex p e c t e d to prod uc e mor e food to
Determined Co ntrib utio ns (NDCs) every fiv e
fee d ou r growi n g wor ld populat i on . We
years.
info@sciencebasedtargets.org @sciencetargets /science-based-targets
P A R T N E R O R G A N I Z AT I O N S I N C O L L A B O R AT I O N W I T H
DISCLOSURE INSIGHT ACTION
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