TESCO KNOWLEDGE HUB - 2DEGREES
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Tesco Knowledge Hub Tesco collaborates with Tier 1 suppliers to cut carbon CHALLENGE SOLUTION RESULTS Tesco have committed to reduce Tesco took action and partnered • The world’s first and largest Tier carbon emissions in the products with 2degrees in 2010. Together, 1 supply base collaboration they sell by 30% by 2020. To help they developed the Tesco program, serving 2,100 members achieve this, Tesco recognised Knowledge Hub – a ground- across 40+ countries that one of the things they needed breaking, actively managed • Carbon and cost reductions to focus on was large scale platform that enables Tesco’s collaboration with their supply top suppliers to work together to • Accelerated adoption of best- chain, whose carbon footprint reduce the energy costs, waste practice solutions is 20 times greater than their and environmental impacts of the direct footprint. Tesco required a products Tesco buys. solution that would allow them to collaborate closely, quickly and effectively with their suppliers in order to support their ambitious carbon targets. Such a solution did not yet exist. “I don’t know of any other resource which is as dynamic, and which has been growing consistently in its capability, functionality, reach and access to people willing to share knowledge and learnings.” Tesco supplier, Jake Backus, Customer Sustainability Director, Coca-Cola CASE STUDY
HOW IT WORKS Suppliers work together, in an atmosphere of trust, to share Where they identify common, high-value challenges, 2degrees knowledge and best practice, managers work with Tesco and 3rd This private online group solve problems and make informed party experts to create practical unites Tesco and its decisions. They are joined by Tesco solutions, such as The Buying Club representatives and independent (see next page). They also create top 1,000 suppliers in experts and partners, including valuable content and facilitate their common quest to WRAP, IDG and the Carbon Trust. offline collaboration, arranging site reduce the energy costs, The group is actively managed by visits and special events. waste and environmental dedicated 2degrees Community The Knowledge Hub is the first and Managers, who facilitate online largest program of its kind, serving impacts of the products collaboration, alerting members 2,100 members across more than Tesco buys. to relevant insights, webinars, 40 countries. discussion forums and case studies. “The Knowledge Hub is probably one of the most relevant and helpful sources of information and connection on the subject of sustainability for corporates.” Michael Alexander, Head of Environment, Diageo “We were really pleased and impressed by the number of great responses to our question around sustainable transport. Understanding what the likes of Foster & Partners, Kelloggs and Coca Cola are doing in this area has helped us spark discussions at Dyson.” Nicola Warner, CSR Manager, Dyson Watch this video to see how a site visit to APS Salads inspires others to adopt sustainable best practice “A valuable source of sustainability hints, tips and ideas from the moment we joined. …I can always pick up the phone, drop an email or post a query and know that we will get an informed, professional and engaging response – every time!” Collette Butterworth, CSR & Funding Officer, Stobart Group
THE BUYING CLUB Managed by 2degrees and developed in collaboration with 2. Savings of up to 25% on the cost of low energy lighting equipment Tesco and the Carbon Trust, The and installation… The Buying Club is the first Buying Club is available to all 3. Resulting in savings of up to 80% of its kind – a collaborative members of the Tesco Knowledge on energy bills. Hub, who can participate purchasing club that On average, lighting installations anonymously. helps Tesco’s suppliers with The Buying Club pay for invest in energy efficient Member benefits include: themselves in under 3 years with ECA, lighting by negotiating 1. Expert advice and guidance from and just over 3.5 years without ECA. Tesco and 2degrees are exploring substantial bulk discounts the Carbon Trust on the how this concept can be extended and offering expert advice. equipment they need and the to other areas and cover a wider energy savings they could make. range of energy saving equipment. “The Buying Club is a wonderful initiative with a win-win-win situation.” Shah Khan, Typhoo’s Group Technical and Ethical Manager, Typhoo Group “We are committed to using our scale for good and this initiative is just one way we can do that, helping our suppliers make energy savings.” Kene Umeasiegbu, Climate Change and Sustainable Sourcing Manager, Tesco
RESULTS… Ground-breaking innovations and positive press Tesco and 2degrees’ Accelerated adoption of best practice: A CLOSER LOOK partnership has resulted in: • The first and largest fully-linked • Knowledge-sharing and expert advice means suppliers can move Carbon and cost reductions: Tier 1 supplier collaboration faster and with greater confidence • From individual projects: Suppliers program in the world • Healthy competition between report carbon and cost reductions • Awards for Tesco, including: suppliers encourages swift from projects directly related to - A Gigaton Award for outstanding adoption the Knowledge Hub carbon reductions and Unprecedented competitor • From collaborative projects: E.g. sustainability performance co-working for the common The Buying Club, with quoted - Grocer Gold Award 2013 for ‘Green good, inviting one another for site savings in under one year of 3,266 Retailer of the Year’ visits, suggesting solutions, sharing tonnes of carbon and £723,152 in - Shortlisted in the 2014 IGD Awards innovations and even collaborating electricity and maintenance for the Buying Club on product development Stronger supplier relationships for Tesco. WHAT MAKES THIS POSSIBLE? “Tesco is leading the way in sustainable 1. Commitment to use their scale for good best practice, by finding solutions to 2. Sensitivity towards supplier concerns, allowing real-life problems and sharing knowledge and the blind collaboration that ensures the Buying Club works so well innovation with our suppliers to reduce costs 3. Willingness to pioneer and adopt innovative both financially and to the environment.” peer-to-peer solutions at scale Andrew Hill, Brand Communications Manager, Tesco 2degrees helps major corporations cut costs, reduce risk and achieve smarter growth by being more sustainable. It does this by helping to transform business practices, making it simple and efficient to work closely and at scale with suppliers, internal operations and customers. Our unique capability results from continued investment in the bespoke technology, innovative processes and expert people that make all this possible. ©2014 2degrees Network. All rights reserved. e: tamarajames-thomas@2degreesnetwork.com | t: +44 (0) 1865 597 647 | w: www.2degreesnetwork.com
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