tesco cr report 2011 final
TRANSCRIPT
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CorporateResponsibility
Report 2011
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prVidig utMr WitH HltHy Hi
tiVly upprtig ll MMuiti
4.2mcustomersactivewithTescoLotusinThailand
64.3mdonatedto
charitiesand
goodcauses
rtig gd jB d rr 8newRegenerationPartnershipsacrosstheUK
www.tescoplc.com/corporate-responsibility
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Achievements and challenges
Buyig d llig ur prdut rpiBly
rig fr tH VirMt
1bnlocallysourcedproductssoldintheUK
No.1retail
erin2010
CarbonDisclosure
Project
Below is an overview of our keyachievements and challenges over the
past year. More information can be found
online. Our performance against our
Key Performance Indicators is on page 58.
Overview
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Providing customers with healthy choices 32
Healhy oons 35Bee nomaon 35cve lesyle 36
pogess on seleced 2010/11 oes 39
Actively supporting local communities 40
onge, gowng communes 43ommuny naves 44haable gvng 45
pogess on seleced 2010/11 oes 47
Creating good jobs and careers 48
rewads and benes 51tanng and develomen 53ommuncaon 54
incluson 55Healh and saey 56pogess on seleced 2010/11 oes 57
Governance
Key peomance indcaos 58
po es o 2011/12 60Managng cooae esonsbly 61How we lsen o move ou saegy 62
wads 64 vew om foum o he fuue
Overview
chevemens and challengeshe xecuves noducon 2tesco aound he wold 4
u aoach 6eang a susanable gowh busness 8
Buying and selling our products responsibly 10
ules 13
resonsble soucng 15pogess on seleced 2010/11 oes 19
Caring for the environment 20
lmae change 22Buldngs 26
tanso 27uly chan 27usomes 28
Wase, ackagng and ecyclng 30pogess on seleced 2010/11 oes 31
p10Buyingandselling
ourproductsresponsibly
p20Environment,
climatechangeandwaste
p32Healthyc
hoices
andbetter
information
Contents
Overview
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Overview
Responsibletrading
Environment
Health
Community
People
Governance
This report is about how we create value for our customers byrespecting their values and staying true to our own. Its about
doing business in a socially responsible and sustainable way.Unless otherwise stated, the statements and data relate to ourfinancial year 2010/11, the period March 2010 to February 2011.This is the period we are referring to when we describe an activityas taking place this year.
More information can be found on our website about how weapproach corporate responsibility in each of our markets, specificinitiatives and targets, as well as case studies and video contentshowing what it means for Tesco day-to-day.
This report and online content together form the basis of ourreporting on corporate responsibility.
Welcome to Tescos 2011Corporate Responsibility
Report.
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Attimeslikethese,peopletendtovaluetheirlocalcommunitiesmore,butatthesametimetoworrythattheyareundergreaterthreat.WhetheritisexpressedthroughProfessorRobertPutnamsseminalworkonthedeclineofcivicengagementintheUS,or
throughUKPrimeMinisterDavidCameronsideaofaBigSociety,wecanseeadesiretostrengthenthefabricofcommunitiesindiff iculttimes.Businessmustplayapositiveroleinthiswork,andbusinesseslikeTesco,whichliveandbreatheintheveryheartofcommunities,haveaparticularresponsibility.Iamthefirsttobelievethatthereisalwaysmorewecando.ButIampleasedthatwearemakingarealcontribution,whetheritisthroughourSchoolsofExtendedEducationwhicharesuchavitalpartofourstoresinSouthKorea;ourCommunityFairsintheUKwhichhelpedlocalcharitiestorecruitafantastictotalofover10,000newvolunteerslastsummer;ortheworkofourCommunityChampionsinseveralcountriesdedicatedmembersoftheTescoteamwhoeverydaymakeapositivedifferenceforlocalschools,charitiesandvoluntarygroups.
AfterthefailuretosecureaglobalagreementonclimatechangeatCopenhagenattheendof2009,wesawmorepositivesignsinCancunlastDecember.IsharetherealhopethatfurtheradvancescanbemadeinDurbanlaterthisyear.Whilstthepaceofpoliticalprogressmayappearslow,onereallypositivedevelopmenthasemerged.Aswehavecometorealisethatthepoliticianscannotbythemselvesshouldertheburdenoftacklingclimatechange,wehavebeguntounderstandtheextraordinarypotentialcontributionthatbusinesscanmake.
Again,Ibelievethatretailandthebroaderconsumergoodsindustryhasahugelyexcitingopportunity.Undertheoutstandingleadershipofmypredecessor,SirTerryLeahy,Tescosetitself
firmlyonthepathtobealow-carbonbusinessby2020andazero-carbonbusinessby2050.Weareontrackwithourtargets,openinglow-carbonandzero-carbonstoresaroundtheworld,andarereportingforthesecondsuccessiveyearabsoluteemissionsreductionsintheUK,ourlargestmarket.
Welcome to my first Corporate Responsibility
Report as the Group CEO at Tesco.
IhavehadtheprivilegetoserveTescoanditscustomersfor
37years,firstintheUKandmorerecentlyinourgrowinginternationalbusiness.Ihaveseenatfirsthandhow,despitetheenormousdiversityofthe14countriesinwhichweoperate,ourcustomersandourstaffexpressthesamedesires:toleadhealthylives,tobepartofstrongcommunities,tocarefortheenvironment,andtogivetheirloyaltytobusinessesthatprovidegoodjobsandbuyandselltheirproductsresponsibly.
WegiveexpressiontotheseuniversalthemesthroughourCommunityPromises,andtheyformthebackboneofourcorporateresponsibilitywork.
Lookingbackoverthepastyear,manyfamiliesinmanycountrieshavefoundeconomicconditionschallenging.LedbytheAsian
economies,prospectshavesinceimprovedandwecananticipateabrighterfuture,evenincountrieswherethepaceofrecoveryisslow.Tescoismakingapositivecontributiontoeconomicrecoveryinmanymarkets:investingingrowth,buildingrelationswithnewsuppliers,andprovidingrewardingjobsandcareers,notonlyinretailandfinancialservicesbutalsoinemergingareaslikelow-carbonengineering,logisticsandresourcemanagement.
Throughouttheglobaldownturn,byimprovingproductivityandbybearingdownoninflationandothercosts,Tescohasplayedabigpartinhelpingfamiliesbalancetheirbudgets.Wemustneverforgetthatprovidingsafe,nutritiousandaffordablefoodisoneofourmostvaluedcontributionstocorporateresponsibility.
Chief Executives
introduction
Overview
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First,asaretailer,thecustomermustbeattheheartofourstrategy.Anybusinesscanmakeprogressthroughitsownactionsandthroughitscommercialrelationships.AtrustedbrandlikeTescocaninform,enlistandempowermanymillionsofcustomersaroundtheworld.Ourworkinincentivisinggreenchoicesisastart,andthereissomuchmorewecando.IamconfidentthattheSustainableConsumptionInstitutewhichTescoendowedattheUniversityofManchestercanguideusandothersinthiswork.
Secondly,ourworkoncorporateresponsibilitycannotsucceedwithoutthecollaboration,supportandcandidguidanceofthemanyNGOsandothermembersofcivilsocietywhoshareourpassionforcommunityandsustainability.Iwantpartnershipinthisareaalsotobeamarkofmyleadership.
IhopeyouenjoyreadingthislatestCorporateResponsibilityReport.Itisveryimportantwork.Iwelcomeyourfeedbackandyourengagement.
Philip Clarke
Formethough,theprizeisevenbiggerthanthis.Emissionsinoursupplychainingrowing,manufacturing,processingandtransportingthegoodswesellareatleasttentimesthoseofourownbusiness.Recognisingthis,wehavesetourselvesagoaltoreducecarbonemissionsfromtheproductswesellby30%by2020.ItisherethatIseetheextraordinarypotentialoftheconsumergoodsindustry.Oursupplychainsoperateacrossnationalboundaries,encompasseverycontinent,andinvolve
thousandsofdifferentproductsandprocesses.Byengagingourthousandsofsuppliersacrosstheglobe,bysharingknowledge,andbycollaboratingwithotherglobalbusinessesandNGOs,Tescoandourindustrycanhaveatransformativeeffect.
Wehavemadeastart.ThroughourjointleadershipoftheglobalConsumerGoodsForumprogrammeonsustainability,Tescoandmanyotherbusinessesarecommittedtothehugelysignificantgoalofhelpingtoendglobaldeforestationby2020.
Thisworkbringshomeclearlythatthechallengeswefaceonsustainabilityareinterconnected.Climatechangecannotbetackledwithoutasolutiontorainforestdestruction.Thesurvivalofourrainforestswillnotbeachievedunlesswefindaway
toincreaseglobalfoodproductionsustainably.Thisinturndependsonconcertedadvancesintacklingwaterdepletionandinreducingwaste.
Sothereismuchmoretobeachievedonsustainabilityinthecomingyears.Tescohasahugecontributiontomake,andIwantthattobeamajorfocusofmyleadership.
Incorporateresponsibilityasinotherareas,partnershipiskey.Iseetwoareasoffocushere.
TescoPLCCorporate Responsibility Report 20113
Overview
Responsibletrading
Environment
Health
Community
People
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Headquartered in the UK,we employ 492,714 staff in14 markets, and operate5,380 stores worldwide.
4Tesco PLC Corporate Responsibility Report 2011
Tesco around
the world
USRevenue*
495mNumber of stores
164Employees
4,134Selling space (sq ft, % of Group)
1.7m sq ft1.6%
UKRevenue*
40,766mNumber of stores
2,715Employees
293,676Selling space (sq ft, % of Group)
36.7m sq ft35.4%
Tesco BankRevenue*
919mEmployees
1,274
Employee figures represent the average number ofemployees during the year
* Revenues are sales excluding VAT and exclude the
impact of IFRIC 13 (customer loyalty schemes)
GDP growth: Economist Intelligence Unit
Overview
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EuropeRevenue*
9,192mNumber of stores
1,082Employees
89,559Selling space (sq ft, % of Group)
30.2m sq ft29.2%
AsiaRevenue*
10,278mNumber of stores
1,419Employees
104,071Selling space (sq ft, % of Group)
35.0m sq ft
33.8%
IndiaIn India, we have an exclusive
franchise agreement with
Trent, the retail arm of the
Tata Group. We are supporting
the development of their Star
Bazaar format.
Overview
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COMMUN
ITY
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Buying and selling our products
responsibly, p10
Caring for the environment, p20
Actively supporting local
communities, p40
Providing customers withhealthy choices, p32
Creating good jobs and careers, p48
Overview
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Caring for the environment
Atthemostbasiclevel,reducingourenvironmentalimpactsavesusmoney,aswellasensuringthatweremainsustainableandcompetitive.Between2000and2008,wehalvedourenergyusepersquarefoot.Ifwehadnotmadethesesavingsandthosewehavemadesince2008ourenergyusewouldbemorethandoubleitscurrentlevel.Attodaysenergyprices,wearesavingover150millionperyearinenergycosts.
OurfocusontheenvironmenthastakenusintonewbusinessareassuchasourHomeEfficiency
Service,offeringinsulationandsolarenergyproductstoUKhomeowners.HavingareputationasagreenpioneerhelpsourexpansioninnewgrowthmarketssuchasChinaandSouthKorea,whereweareabletoshareourexperience.
8TescoPLCCorporate Responsibility Report 2011
Creating a sustainable
growth business
Buying and selling our products responsibly
Buyingandsellingourproductsresponsiblyhelpsusbuildtrustamongallourstakeholders.TrustintheTescobrandenablesustogrowourexistingbusiness,
aswellasdiversifyintonewbusinessareassuchaspersonalfinanceandtelecoms.
Strongrelationshipswithoursuppliersallowustoinnovatetomeetchangingcustomerneedsandtoattractnewsupplierstoworkwithus.Assupplychainsincreasinglycomeunderstrainfromenvironmentalchangeandpopulationgrowth,weareworkingtomakethemmoresustainable.
Corporate responsibility at Tesco is about creating a sustainable core for a successful
growth business.
As highlighted by Forum for the Future in our 2010 Corporate Responsibility Report, thereare opportunities for Tesco to take the lead in developing new retail business models and
realise our ambition to use our size as a force for good.
150msavedperyearinenergyco
sts
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Actively supporting local communities
Providing customers with healthy choices
Creating good jobs and careers
Businessesthatareintunewiththeneedsoftheircommunities,sensitivetotheirconcernsandthathelpthemmeettheirgoals,arerewardedwithmorecustomersandgreaterloyalty.
Understandinglocalcommunitiesallowsustoserveourcustomersnomatterwhattheirbackgroundandprovidethemwithnewservicesandproducts.
Insomemarkets,customersexpectbasicfoodsafetyasagiven;inothers,itremainsfront
ofmind.Ifwehaveareputationforsellingsafefoodinamarketwherefoodsafetyisanissue,ithelpsusbuildtrust,givingusasignificantcompetitiveadvantageandtheopportunitytoworkwithgovernmentstoimprovestandards.
Helpingcustomerseatmorehealthilyallowsustoopenupnewbusinessopportunities,especiallyinmarketswhereobesityisamajorissue.Ourgetactiveprogrammesaroundtheworldhelpourcustomersgetfit,aswellasincreasingtheirloyalty.
Oursuccessdependsonour492,714staffworldwidedoingagreatjobforcustomers.Thismeans
attractingtherightpeopleandhelpingthemtodevelop.Aswegrow,wecreatenewjobs,andhelpstafffulfiltheirpotentialsothattheycandeliverforcustomersandcommunities.
Ifwefailtoattractandretaingoodpeople,wefindithardertoserveourcustomerswell.Asaresult,theymaychoosetogoelsewhere.Providinggoodjobsandcareersandhelpingstafftofeelgoodaboutthecompanytheyworkformeanstheywillthriveandstaylongerwithus,anddothebestjobforcustomers. 492,714
staffdoingagreatjobworldwide
Strongrelationshipswithour
suppliersallowustoinnovateto
meet changing customer needsand to attractnew suppliersto workwith us.
Overview
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Buying andselling ourproductsresponsibly
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Overview
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Responsible
trading
Throughout the world, our customers want
safe, affordable products. any also want
to know that what they buy is sourced to
robust ethical and environmental standards.We believe it is possible to provide for all
our customers, whatever their needs, whilstupholding strong standards across our
business and in our supply chains.
Buyingandsellingourproductsresponsiblymeansensuringeveryoneinoursupplychainistreatedhonestlyandfairly,andthatcareistakentominimisetheimpactourproductshaveontheenvironment.Thatincludeshowwe:
treatoursuppliersandhowoursuppliersemployeesaretreated;
workwithcommunitieswherewesourceourproducts; establishandmonitoranimalwelfare;and
worktoensureproductscomefromsustainablesourceswhereverpossible.
Weworkinpartnershipwithoursupplierstoensureourproductsaresourcedresponsibly.Ourtechnicalteamsacrosstheworld,workingalongsideourcommercialteams,ensurethatourstandardsaremetineveryareaofourbusiness,andwehaveethicaltrademanagersinkeysourcingcountries.Formoreinformationseewww.tescoplc.com/tradingfairly.
Insomemarkets,productscertifiedasbeingresponsiblysourcedareincreasinglyimportanttoourcustomers.Inothers,itisanew
concept.Trueleadershipmeansmakingresponsiblysourcedproductsmuchmorewidelyavailable,sothatmakingamoreresponsiblechoiceisanaffordable,everydaydecision.
Wehavecommittedtoreducingthecarbonemissionsoftheproductsinoursupplychainby30%by2020.Formoreinformationseepage27.
1,600Independentethicalauditscarriedoutonsuppliersites
100%NewUKtargettocatchown-brandcannedtunabypoleandlineby2012
1 billionLocallysourcedproductssoldintheUK
20%PalmoilinTescoUKown-brandproductsfromanRSPOcertifiedsystem
2010/11 in numbers
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SUPPERS
abour conditions in our supply chain
Millionsofpeoplewhoworkinoursupplychainrelyonusfortheirlivelihoods,andourtrademakesanimportantcontributiontothecommunitiesofmanymore.Inturn,werelyonoursupplierstoprovideuswithproductsourcustomerswant.Ensuringgoodlabourstandardsthroughoutoursupplychainisnotonlytherightthingtodo,butalsomakesgoodbusinesssense.
WewereafoundermemberoftheEthicalTradingInitiative(ETI)andweexpectallsupplierstomeetthestandardssetoutundertheETIBaseCodeandensuretheirworkerstherightswithinit.Formoreinformationseewww.ethicaltrade.org.
WhilesuppliersoperatingindevelopedmarketsmostlycomplywiththeprovisionsoftheBaseCode,complianceinothermarketsremainsmorechallenging.Wesupportoursuppliers,wherevertheyarebased,tomeetthestandardswerequire.In2009,welaunched
TradingFairly,anewapproachtoethicaltrading,basedonfourkeyprinciples:
valuesensuringweworkwithsupplierswhoshareourvalues;
monitoringgettingtothetruthaboutconditionsforworkersinoursupplychains;
improvementsupportingoursupplierstoimprove;and
transparencybeingopenandhonest,workingwithothers.
Thisyear,weextendedourTradingFairlyprogrammetoourowncorporatepurchasing.Thiscoversthegoodswebuyforourownuse,andservicescontractedwiththirdparties:everythingfromcarrierbagstocarwashes.
Relationships with suppliers
TomakeTradingFairlyareality,weinvestsubstantiallyinsupportingsupplierstodeliverit.OurethicaltrademanagersinBangladesh,ChinaandSouthAfricahelpsuppliersand
stakeholdersaddresslocalandnationalchallenges.
Atthesametime,wefundprojectstoaddressspecificlocalneeds.
WearesettingupaSkillsAcademyinBangladeshtoprovidetrainingforoursuppliers,helpingthemimproveeff iciency,makingthemmorecost-effectiveandimprovingconditionsforworkers.
OurLeadershipAcademyinSouthKorea,scheduledtoopeninJuly2011,willalsoprovidetrainingforsuppliers.Initiativeslikethiscanmeanthatgovernmentslookmorefavourablyonoursuppliersasexamplesofbestpractice,andrecognisethevalueofourtradeasaforceforgoodinlocaleconomies.
ValuesSuppliers who share
our values
Communicateourvalues
SetstrongstandardsQualifynewsuppliers
TransparencyBe open and honest
WorkwithothersBuildawarenessBetransparent
MonitoringGet to the truth
AssessriskAudit,reportaccuratelyUnderstandworkersIdentifytrends
ImprovementSupport and improve
CorrectbreachesBuildlong,strongrelationships
DevelopskillsAssistimprovementRewardsuccess
Trading Fairly model
Buyingandsellingourproductsresponsibly
meansensuringeveryoneinoursupply
chain is treated honestly and fairly, andthat care is taken to minimise theimpactour products haveon the environment.
Overview
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Rewarding suppliers
TomanageoursupplychaininUKclothing,wenowclassifysuppliersinthreecategoriesGold,SilverandBronzethroughourpreferredsupplierscheme.Weaimtodevelopathree-yearbusinessplanwithourGoldsuppliers,allowingthemtoplanfortheirlabourneedsandwagesoverthelong-term,andbenefit
fromhighervolumesoftrade.InordertoqualifyforGoldstatus,suppliersmustdemonstratequality,reliabilityandgoodethicalperformance.Thisschemehasbeensuccessfulinmotivatingsupplierstofocusonethicalstandards,andisscheduledforroll-outtootherproductsin2012/13.
OurTradingFairlyAwardsrewardthosesupplierswhoaremakingparticularlystrongeffortstoimproveconditionsforworkers.Formoreinformationseewww.tescoplc.com/tradingfairly.
Growing exports
Westrengthenoursupplychainssustainabilitybyhelpingexportsgrow.
InIndiawehavebeenworkingwiththeJointEconomicTrade
Committee(Jetco)tohelpIndianexportersaccessinternationalmarkets,andheldaTescoMeettheBuyereventinMumbaiin2010.
IntheUK,weholdanannualshowcaseforThaigoodsintheUK.Thisyear,athree-weekeventwasheldinmorethan430stores,promotingfreshThaifruit.
Thisyear,weheldaTurkishWeekeventin110storesinCentralEurope,inwhichwesoldaspecialrangeofproductsfromTurkey.Duringtheweek,wesold1.2millionworthofproducts.
Weaimtobuildlong-termrelationshipswithsuppliers,sogettingregularfeedbackfromthemisahighpriority.Theresultsofourannualsurveyofsuppliers,SupplierViewpoint,formoneofourGroupKeyPerformanceIndicators(seepage58formoreonKPIs).Theanonymoussurveyismanagedbyanindependentthird-partyprovider.
SuppliersareaskedindetailabouttheirrelationshipwithTesco,includingwhetherTescotreatsthemwithrespectandprofessionalism,andhowcommittedwearetomeetingtheircustomersrequirements.In2010/11:
theresponserateof54%wasthehighesttodate,althoughslightlybelowourtargetof60%;and
weexceededourtargetof80%positiveresponses,achievinganaverageof82%positiveresponsesfrom3,887suppliersworldwide.
Robust supplier audits
Ourauditingprocessworkstoidentifykeyissuesandfocus
resources.Ifwediscoverthatworkershumanrightsarenotrespected,weworkcloselywiththesuppliertoaddresstheissueimmediately.Ifthesuppliershowsalackofcommitment,wemovetoterminatetherelationship.Ourindustry-leadingAuditorRecognitionProgrammeensuresthatweonlyacceptauditsconductedbyvetted,independentauditors.
During2010,over1,600suppliersitesweresubjecttoindependentethicalauditsandTescostaffmadeanadditional4,300visits.Formoreinformationseewww.tescoplc.com/tradingfairly.
Weaimtobuildlong-term
relationshipswithsuppliers,so getting regular feedbackfrom themis a high priority.
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CENTRALEUROPEANSUPPLIERPROGRAMME
FeedbackfromsuppliershashighlightedthatsomesmallsuppliersinourCentralEuropeanmarketsworryaboutthepotentialimpactthatTescocouldhaveonthem.Asaresult,inthecomingyearwewillfocusonextendedprogrammes
foroursuppliersintheCzechRepublic,Hungary,Poland,SlovakiaandTurkey.Wewillholdregionalmeet-the-buyerroadshowstoincreasethenumberofproductswesellfromsmall,regionalproducers.
TescoPLCCorporate Responsibility Report 201115
UK Bribery Act
TheUKBriberyActbecomeslawin2011,creatinganewcriminaloffenceforUKcompanieswhichfailtopreventbriberybeingcommittedbyemployeesandassociatedpersonsactingfororonthecompanysbehalf.Acompanysonlydefenceisthatithadadequateproceduresinplacetopreventsuchcontraventionsoccurring.
Wealreadyhavewell-establishedpoliciesandprocessesrelating
tobriberyandgifts,andourCodeofBusinessConductprovidesveryclearguidanceforstaffaroundtheworldonthehighstandardsofbehaviourweexpect.ThesewillbeupdatedbeforetheActcomesintoeffectandwillbesupportedwithtrainingandcommunicationacrosstheGroup.
RESPOSBE SOURCG
Wearecommittedtotheresponsiblesourcingofrawmaterialsforourown-brandproductswhereverpossible,andtomanagingtheimpactwehaveonbiodiversity.WehavemademostprogressintheUK,andareworkingtoimprovestandardsinallourmarkets.
TogetherwithUnilever,Tescoco-chairstheSustainabilitySteeringGroupoftheConsumerGoodsForum,andisleadingtheprojectannouncedinDecember2010toachievezeronetdeforestationby2020.Thisworkinvolvesdevelopingandcommittingtosustainablesupplychainsforeachofthecommoditiesbelow.
Palm oil
Palmoilanditsderivativesappearinsmallquantitiesinmanyofourproducts,andweareworkingtoensurethattheycomefromsustainablesources.WearefullmembersoftheRoundtableonSustainablePalmOil(RSPO)andofthecoalitionofover50UK-basedcompaniescallingontheindustrytostopalldeforestationofrainforestandpeatforestsforpalmoilexpansion.
In2010,wesetatargetofusing100%certifiedsustainablepalmoilinallourUKown-brandproductsby2015,andsourcingallouroilfromanRSPO-certif iedsystemsuchasGreenPalmby2012.Thisisachallengingtarget,asthetraceabilityandcertif icationofpalmoilanditsderivativesisstillinitsinfancy.
Wehaveissuedallofourown-brandsupplierswithatimelineandcodeofpractice,settingoutourdetailedexpectations.
From2012,wewillonlyacceptUKproductsusingpalmoilthatisfullytraceablesothatby2015allthepalmoilinourUKown-brandproductswillcomefromcertifiedsustainablesources.
Thisyear,wehavecontinuedtomakeprogressagainstourtarget.Around20%oftheTescoown-brandproductsthatcontainpalmoiloritsderivativesnowcomplywithourcodeofpractice,representingprogresstowardsour2012and2015targets.
9,700InPoland,wesellmorethan9,700regionalproducts.
Overview
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Seafood
AstheUKsbiggestfishmonger,withmorethan480fishcounters,weshareglobalconcernsaboutthesustainablesourcingofseafood,andarecommittedtotakingfishonlyfromresponsiblymanagedsources.WearedevelopingarobustsystemforevaluatingfisheriesinassociationwiththeSustainableFisheriesPartnership,guidedbyprinciplesandpracticalrecommendationsfromleadingindustrybodiessuchastheMarineConservationSocietyandtheMarineStewardshipCouncil.
Weshareconcernsaboutcertainmethodsoftunafishing.In2010,wehitourtargetofsourcing25%ofourown-brandcannedtunabypoleandline,andthisyearwecommittedtosourcing100%inthiswaybytheendof2012,providedthatthiscanbeachievedinasustainableway.Meetingthischallengingtargetwillrequireustoworkwithoursupplierstoeffectrealchangeintheindustry.
Wealsorecogniseourresponsibilitytooffercustomersalternativespeciesoffish.IntheUK,wherecustomerstendtopurchaseonlyafewspeciescod,haddockandsalmonwearehelpingtointroducecustomerstootherspeciessuchasdab,pouting(seebox)andcoley.Wenowhaveupto40speciesavailablethroughourUKfishcounters.
Ineachofourinternationalmarkets,seafoodpreferencesandsourcesofsupplyaredifferent.Wearethereforeworkingwithoursupplierstodevelopaprogrammetoimprovethesustainabilityofourofferinginourinternationalmarkets.Thisyear,wesignedWWFssharedstatementontheEUCommonFisheriesPolicy,callingforthe2012reformofthepolicytodeliversustainablefisheriesthroughoutEurope.
Formoreinformationseewww.tescoplc.com/seafood.
Timber
WearecommittedtopurchasingtimberandtimberproductsfortheUKmarketonlyfromlegal,sustainablesources.
ThefourmilliontillrollsweuseperyearintheUKarecertif iedbytheForestStewardshipCouncil(FSC).
TheTescoMediaPublishingCentre,whichprintstheTescoDirectcatalogue,flyersandleafletsisfullycertifiedbyFSCandtheProgrammefortheEndorsementofForestCertification(PEFC).
In2010,wetookthedifficultdecisiontodelistAsiaPulp&PaperasasuppliertoourUKandChinesebusinesses,aswecouldnotsatisfyourselvesofthesustainabilityoftheirsourcing.
Soy
IntheUK,ourown-brandsoyproductscomeonlyfromsustainable,non-GMsources.WearesignatoriesoftheBrazilianmoratoriumonthesourcingofsoyfromtheAmazon,whichhasbeensuccessfulinreducingdeforestationfromsoyproduction.Ourinternalsystemstrackallsoy-relatedingredientstoensure
theycomefromanon-GMsourceoutsideoftheAmazonbiome.
WealsotrackthesoyusedasanimalfeedbyourmeatsuppliersthroughFEMASanindependentassuranceschemeforfeedandcantracethisbacktoasourceoutsidetheAmazonbiome.Thissystemalsoguaranteesnon-GMpoultryfeedforbothmeatandeggs.
ocal sourcing
Buyinglocalproductshelpstodevelopandsustainthecommunitiesinwhichweoperate,andisoftenwhatourcustomersdemand.Wehaveruninitiativesinseveralmarketstoboostourofferoflocalproducts.Forexample,thisyearwerantworegionalsupplierforumeventsinHungary,sourcingandsigningupnewlocalsuppliers.
Manyofourmarketshavesoldlocalproductsforsometimebecauseimportsaremoreexpensive.InPoland,wesellmorethan9,700regionalproducts.
Inothermarkets,thereisincreasingdemandfromcustomersforlocallyproducedandsourcedfoods.IntheUK,customerstellusthatbuyinglocalfoodsisimportanttothemformanyreasons,includingsupportforthelocaleconomy.LocallinesarethoseproducedandsoldwithinacountyorneighbouringcountyinEngland,orwithinthecountryinIreland,ScotlandandWales.
WehavefivededicatedregionalbuyingofficesacrosstheUK.Thisyearweincreasedsalesoflocalproductsto1billion,from850millionin2009.
TescoisthefirstUKretailertolaunchawebsitededicatedtolocalfoods,atwww.tesco.com/local.
Fairtrade
Fairtradeproductsaremostsuccessfulinourmoreestablishedmarkets.IntheUK,wenowhavethelargestrangeofFairtradecottonschooluniformitemsonthehighstreet,andeveryyearweparticipateinFairtradeFortnight,offeringpromotionsonFairtradeproduce,chocolate,teaandcoffee.ThisyearwelaunchedFairtradeproductsinPoland.Formoreinformationseewww.tescoplc.com/fairtrade.
Buying and selling our products responsibly
DIRECTSOURCINGINCHINA
InChina,weworkwiththeGovernmentonalargenumberofagriculturalprojects.Wehave123directsourcingbasesin40cities,andsell1,400itemsthataresourceddirectlyfromfarmers,helpingthemimprovetheirmargins.Forexample,
inShandongweworkwithleadingagriculturalcompaniestopurchase20,000tonnesofFujiapplesdirectlyeveryyear,benefitingmorethan50,000farmers.
HELPINGCUSTOMERSTOTRNEWSPECIESOFFISH
Earlierthisyear,ourUKbusinessbegantosellpouting,aresponsiblysourced,low-costwhitefish.DespitebeingthemostcommonspeciesoffishinUKwaters,poutingwaslittleknownamongcustomers.SoonafteritslaunchatTesco,weweresellinghalfasmuchpoutingascod,theUKsmostpopularwhitefish.Poutingisnotatargetspecies,sopromotingittocustomershelpstotakepressureoffstocksofotherwhitefishsuchascodandhaddock.
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40speciesa
vailable
throughourUK
fishcounters
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Water
WaterscarcityisanissueinmanyofthecountriesinwhichweoperateincludingChina,India,TurkeyandtheUSandaffectsmanyofoursuppliers.Inthenextyear,wewillconductdetailedsurveysofwateruseinourUKstores,andtrialwater-savinginitiatives,sowecansetawaterreductiontargetforourUKstores
anddepots.
However,waterusedinourdirectoperationsrepresentsaround1%ofthetotalwaterfootprintoftheproductswesell.Weestimatethatover850billionlitresofwaterareusedinoursupplychaineachyear,andanadditional1,000billionlitresareusedwhencustomersuseourproducts.In2011/12,wewillworkwithtwopriorityproductgroupsfreshproduceandclothingtodevelopwaterstewardshipstrategieswithsuppliersinwater-scarceregions.WewillalsosharebestpracticeonwatermanagementwithoursuppliersthroughourKnowledgeHub(seepage27).
Animal welfare
Wehavehighstandardsforanimalwelfarenotonlybecauseourcustomersdemandthem,butbecauseitistherightthingtodo.Aswithmanyofourresponsiblesourcingpolicies,customersandotherstakeholdersaroundtheworldhavedifferingviewsonanimalwelfare.
WearetheonlymajorsupermarkettoinsistonthesamehighstandardsforallfreshmeatsoldintheUK,evenifitisimported.Forexample,wedonotallowtheuseofsowstallsinpigproductionanywhereintheworld.
Wearealsotheonlymajorsupermarkettocarryoutindependentwelfareauditsabovetheminimumindustrystandards.AllfreshmeatandpoultrysupplierstoourUKbusinessareinspectedatleastevery15monthsbyIntegraFoodSecure,anindependent,accreditedauditcompany.
ThisyearwecommittedtoworkingwithoursupplierstoensureallabattoirsthatsupplyourUKmarketwillhaveCCTV,monitoringcompliancewithourhighanimalwelfarestandards.
Formoreinformationseewww.tescofarming.com.
Animal testing
Wedonotsupporttestingonanimalsforcosmeticorhouseholdproducts,anddonotcarryoutorcommissionsuchtestsonourown-brandproductsortheingredientstheycontain.WesupporttheFundfortheReplacementofAnimalsinMedicalExperimentation(FRAME),whichseekstoendanimaltesting.
TescoNaturallyandNaturalrangesdonotuseanyingredientthathasbeentestedorretestedonanimalsforcosmeticpurposessince31December1990.AllotherTescoproductsoperateafixedcut-offdate,foringredients,of31December2007.
100%In2010,wereachedourtargetofcatching25%ofourown-brandcannedtunabypoleandline,andthisyearwecommittedtosourcing100%inthiswaybytheendof2012.
Allfreshmeatandpoultrysuppliers
toourUKbusinessareinspectedatleast
every15monthsbyanindependent,
accreditedauditcompany.
TESCOBANK
AtTescoBank,wehaveadutytoourcustomerstosellourproductsresponsibly.Weassessallcreditapplicationsagainstourcreditscoringandaffordabilitycriteria.
Whencustomersfindthemselvesinfinancialdifficulty,wewill
workwiththemtounderstandtheircircumstancesandagreesuitablepaymentplanstohelpthemrepaytheirdebts.
Formoreinformationseewww.tescoplc.com/countries.
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PROGRESS O SEECTE 2010/11 PRORTES
Poland
Czech Republic/Slovakia
alaysia
Runtrainingfor50regionalsuppliers
Createopportunitiesforlocalsuppliersthroughsupplierengagementevents
IncreasesalesofproductsfromsmallbusinessesbyRM630million
(129million)
Achieved we ran training for130 regional suppliers
Achieved as a result of these events,we now sell local breads in our Czechstores
Achieved we increased sales of
products from small businessesby R670 million (137 million)
UK 25%ofourcannedtunatobecaughtbypoleandlineby2010 Achieved our target is now 100%by 2012
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Caring fortheenvironment
ZeroWeaimtobeazero-
carbonbusiness
by2050
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A growing,
green business
As one of the worlds leading retailers, we
have a clear responsibility and a significant
opportunity to protect our environment.
Ouraimistocreatemoresustainablewaysofdoingbusiness.Wearereducingourimpactontheenvironment,includingenergyuseandwaste.Weareworkingwithoursupplierstomanageresourcesmorecarefullyinoursupplychains:forexample,reducingwaterusageortacklingdeforestation.Weareempoweringourcustomerswho,together,canhaveapositiveimpactontheenvironmentthatfaroutweighsourown,tocreateamassmovementingreenconsumption.
CATE CHAGE
Climatechangeisoneofthegreatestthreatsmankindfaces.Ittranscendsnationalboundaries,andthreatenstoaffectusall
inmanydifferentways:fromriskstosupplychains,tothedirectimpactthatchangesintheclimatewillhaveonourcustomerslivesandtheoperationofourstores.
Retailbusinessescanplayapowerfulroleintacklingclimatechange.Wearedeterminednotonlytoplayourpart,buttoplayaleadingrole.
ForTesco,leadershiponclimatechangemeans:
settingaclearexamplethroughourchallenginglong-termtargets,andmakinggenuineprogressagainstthem;
workingwithotherbusinessestotransformtheconsumergoodsindustrybytacklingcarbonhotspotsintheglobalsupplychain;
usingourpositionasatrustedglobalbrandtoinspireourstaff,customersandneighbourstotakeactiontoprotecttheenvironment.With492,714employeesandmillionsofcustomersworldwide,wecanhaveapositiveinfluenceonmillionsofpeopleeverysingleday;and
workingwithgovernmentsacrosstheworldtobuildanunderstandingofclimatechangeandtheactionsneededtotackleit.Forexample,wehaveadvisedtheUKGovernmentonreducingcarbonemissionsacrosstheGovernmentestate,andweorganisedaconferenceinShanghaiinsummer2010,bringingtogethertheChineseGovernment,academics,NGOsandtheprivatesectortodiscusshowtomeetthechallengeofclimatechange.
Caring for the environment
ZeroOurfirstoverseaszero-carbonstoreinJaromer,CzechRepublic
1 billionGreenClubcardpointsawardedtoUKcustomerseachyear
1,100CarbonfootprintscalculatedforeverydayTescoproductsintheUK
24,000ChildreninTurkeyeducatedontheimpactofclimatechange
2010/11 in numbers
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Ourglobaldirectcarbonfootprintismeasuredincarbondioxideequivalent,orCO2e.Differentgreenhousegaseshavedifferent
effectsontheclimate,andCO2eisawayofstandardisingtheglobalwarmingeffectoftheseemissions.
Eachyear,weupdateourcarbonfootprintcalculationstoreflectthelatestUKGovernmentguidance,allowingustoassessourperformanceaccuratelyovertime.Lastyear,wereportedour2009/10globaldirectcarbonfootprintas5.17milliontonnesofCO2e.Wehaverecalculatedthisfigurewiththelatestemissions
factors,andhavealsoincorporatedarevisionduetoanerrorwithsomeemissionsfactorswithinourcarbonreportingtool.
Therevised2009/10globaldirectcarbonfootprintis5.35milliontonnesofCO2e.
Formoreinformationabouthowwecalculateourcarbonfootprint,includingreportingstandards,ourdefinitionofdirectemissions,andthecurrentemissionsfactors,seewww.tescoplc.com/reporting.
How we calculate our carbon footprint
Tobecomeazero-carbonbusinessby2050
By2012,wewillhalvedistributionemissionsofeachcaseofgoodsdelivered,againstabaselineof2006
By2020,wewillhalveemissionsfromour2006/7baselineportfolioofbuildings
Newstoresbuiltbetween2007and2020toemithalftheCO2eofa2006newstore
Toreducetheemissionsoftheproductsinoursupplychainby30%by2020
Tofindwaystohelpourcustomersreducetheirowncarbonfootprintsby50%by2020
Wehavesetambitioustargetstoreduceourownfootprint,reducetheemissionsfromoursupplychain,
andhelpourcustomerstoreducetheirfootprintstoo.
our commitments
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Our performance
Tescoisaglobalbusinessgrowingatasignificantrate.Businessgrowthiscompatiblewithtacklingclimatechangeprovideditislow-carbongrowth.Significantglobalcarbonreductionsareanurgentnecessity,andthefastestwaytoachievethemwillbebyreplacinghigh-carbonactivitieswithlower-carbonones.
Wearemakingprogressinbecomingalow-carbonenterprise.ThisyearTescowasnamedthetopretailerintheCarbonDisclosureProjects2010UKFTSE350andGlobal500reportsforourcarbonreportingandperformance.
Ourglobaldirectcarbonfootprintin2010/11was5.44milliontonnesofCO2e(seeboxonpage23fordetailsofhowwecalculateourcarbonfootprint).Thisyear,wecontinuedtodecoupleourbusinessgrowthfromthegrowthinourcarbonemissions:whileournetsalesareagrewby8.8%,ourcarbonfootprintincreasedbyonly2%.
Wehavemadeparticularprogressthisyearinreducingemissionsfromrefrigeration.IntheUKalone,wehavesavedaround165,000
tonnesofCO2ebyreducingleakageoffridgegas,whichhasaglobalwarmingeffectthousandsoftimesgreaterthanCO2.
In2009/10,ourUKbusinessrecordedanabsolutereductioninCO2eemissionsof1%(revisedfromthe2%statedinour2010reportseeboxonpage23fordetails),despitesignificantbusinessgrowth.Thisyear,thankstoarelentlessfocusonrefrigerantemissionsaswellasfurtherprogressonenergyefficiency,wehavereducedourabsoluteCO 2eemissionsintheUKby5%.
24TescoPLCCorporate Responsibility Report 2011
Getting to zero
Achievingourambitionofbecomingazero-carbonbusinessby2050willrequireustoreduceourabsolutecarbonemissionsacrosstheGroup.Weaimtoachievethisnotbypurchasingcarbonoffsetsbutbygeneratingourelectricityandheat/coolingfromrenewablesources.Ifthereareanyresidualemissionsthatwecannoteliminate,wewillgeneratemorerenewableenergythanweneedandpasstheexcesstoothers.
ASSURANCESUMMARSTATEMENT
EnvironmentalResourcesManagementLimited(ERM)hasprovidedindependentexternalassuranceofour2010/11globaldirectcarbonfootprintforthisreport.Hereistheirresponse:
WereviewedTescosapproachtomeasuringandreportingitsdirectcarbonemissionsatGrouplevelandinarepresentativesampleofmarkets(China,Ireland,theUKandtheUS).
WeconcludethatTescosglobaldirectcarbonfootprint(totaldirectcarbondioxideequivalentemissionsandpercentagebreakdownperemissionstype)isappropriatelystated.Forfurtherdetailsontheworkweundertookandourfindings,pleasereadourfullassurancestatementatwww.tescoplc.com/reporting.
Pleasenotethatthe2008Tescoaccountingyearwas53weekslongratherthantheusual52weeks.AsinCRreportsfor2008/9and2009/10,the2008figureshavebeenadjustedtoa52-weekyeartoallowlike-for-likecomparisonwithotheryears.
TOTALCARBONFOOTPRINTBSOURCE2010/11
1 Grid electricity 63.92%
2 Refrigerants 15.89%
3 iesel/oil 12.05%
4 atural gas/PG(including district heating) 7%
5 Business travel 1.14%12
3
4
5
total carbon footprint by market 2010/11
Country kgCO2e
China 357,835,896
CzechRepublic 206,063,393
Hungary 227,607,623
India 16,769,044
Ireland 224,158,169
Japan 30,079,003
Malaysia 166,494,221
Poland 410,182,360
Slovakia 77,781,743
SouthKorea 492,770,531
Thailand 533,940,207
Turkey 109,890,505
UnitedKingdom 2,486,454,492
UnitedStates 100,339,734
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66%Ourhea
tingandcooling
systematRamse
yuses66%
lessenergythan
atypical
storeofasimilarsize.
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BUGS
ow-carbon stores
Since2005,wehavebeencuttingthecarbonfootprintofTescostoresacrosstheworld.Wehaveanambitiousprogrammeofcarbonreductioninournewandexistingstores,designinginfeaturessuchasincreasednaturaldaylighttoourstandardnewstores.Inourexistingestate,weareworkingtoreplaceoldequipmentwithnewtechnologytohelpourstaffcutcarbon(seebox).
Zero-carbon stores
Weopenedtheworldsfirstzero-carbonsupermarketinRamsey,Cambridgeshire,in2009.Thisyear,weopenedourfirstoverseaszero-carbonstoreinJaromer ,CzechRepublic,andcompletedtwomorezero-carbonstoresintheUK,inWelshpoolandBourne.Thesestoresallowustotestnewtechnologiesthatwecanrollouttofuturenewstores.
Ourzero-carbonstoresaredesignedtouseaslittleenergyaspossible.Forexample,ourheatingandcoolingsystematRamseyuses66%lessenergythanatypicalstoreofasimilarsize.
WegenerateourownenergyonsitefromaCombinedHeatandPower(CHP)system,whichusesasustainablebiofuelmadefromwastefishoiltogenerateheatandpower.
ExcesselectricitythatwegenerateisexportedtotheNationalGrid.
Ramseyissavingtheequivalentof2,000tonnesofCO2eperyear,comparedtoasimilarnewstore.
Wewillshortlyopenourfirstzero-carbonbuildingsinAsia.Ourfirstzero-carbonstoreinthecontinentwillopeninthesecondhalfof
2011inBangPhra,Thailand,andTescosLeadershipAcademyinSouthKorea,tobecompletedinJuly2011,willalsobezerocarbon.
atural refrigeration
Therefrigerantgasesusedinalmostallrefrigerationsystemsknownashydroflurocarbons(HFCs)canmakeaverysignificantcontributiontoclimatechange.Theycomprise16%ofTescosglobalcarbonfootprintandwearecommittedto
findingalternatives.Wehavealreadyinstallednon-HFCnaturalrefrigerationsystemsinHungaryandtheUK,andinourexistingstoresintheUKwehavereducedHFCemissionsby15%comparedto2009/10.WewillpilotanaturalrefrigerationsysteminTurkeyin2011/12.
InNovember2010,alongwithothermembersoftheConsumerGoodsForum,wepledgedtobeginphasingoutHFCrefrigerantsfrom2015,wherethisispermittedbylocalandnationalregulations,andworksintheclimateandwiththestoreformat.Weareactivelylookingatnon-HFCsystemsthatcouldalsoworkintropicalclimateslikeMalaysiaandThailand,andinsmallerformatandexistingstores.
Renewable energy
Eventhemostenergy-efficientbuildingsanddistributionsystemsneedtousesomeenergy.Generatingourownrenewableenergyisthereforeakeypartofourclimatechangestrategy,andwearetriallingseveraltechnologies,includingphotovoltaicroofpanelsandcladding,solarhotwatergeneration,CHPandgroundsourceheatpumps.
Thisyear,weinstalledfourwindturbinestopowerthreeUKdepotsusingrenewableenergy.Eachturbinewillproduceenoughenergytopower500homes,savingaround3,200tonnesofCO 2e.AnysurpluspowergeneratedwillbeexportedbacktotheNationalGrid.
In2007,weinstalledoneofCaliforniaslargestroof-mountedsolarinstallationsonourdistributioncentreinRiverside.Thisyear,the
installationgeneratedenoughenergytopowermorethan400homes.In2011/12,wewillinstallsolarpanelsontenofourstoresinArizona,whichwillgenerateabout20%oftheenergyusedin-store.
6m fewer milesThisyear,ourUKrailnetworksavedsixmillionroadmilesandover8,000tonnesofCO 2e.
53.26
2010/11
56.91
2009/10
59.64
2008/9
64.84
2007/8
65.10
2006/7
CARBONFOOTPRINTPERSQUAREFOOTkgCO2e/retailsellingspace
ENERGBOARDS
WeareinstallinginteractiveenergyboardsinourstoresintheUKandIreland.Theboardshaveaninteractivetouchscreen
toshowwherethestoreisusingenergyinrealtime,allowingstafftotakeaction.Theyareprojectedtosave15,000tonnesofCO2e,equatingtoacostsavingof2million,everyyear.
TheenergyboardswonBestEnergyReductionProjectoftheearattheEnergyEvent2010,andhelpedTescotowinthePlattsGlobalEnergyAwardforBestEnergyReductionProgramme.
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TRASPORT
In2010/11,ourtotalcarbonfootprintfromtransportwas655,669tonnesofCO2e,12%ofourglobaldirectcarbonfootprint.Thisyear,wehavecontinuedtoreducecarbonemissionspercaseofgoodsdelivered.
Saving fuel
Despitesignificantbusinessgrowth,wehavenotincreasedthesizeofourUKdistributionfleetforfouryears.Wetrainourdriverstomakedrivingmoreeff icient,byacceleratingsmoothly,usingthehighestpossiblegear,andmaintainingaconstantspeed.WearenowreducingthemaximumspeedofourUKvehiclesto50mph.Thisisprojectedtoreduceourfuelconsumptionbyupto3%.
Thisyear,ourUKrailnetworksavedsixmillionroadmilesandover8,000tonnesofCO2e.Wealsocontinuedtoincreasethenumberofdouble-deckertrailersweusetodelivertostores,saving12.5millionroadmilesandnearly17,000tonnesofCO 2e.
ThankstoachangeinEUlegislationthisyear,wecannowbuytrailerswitha12%greatercapacity,allowingustodelivermoregoodsinfewerjourneys.WehavestartedtobuytheseintheCzechRepublic,HungaryandPoland.
WearecurrentlyrollingoutourtransportmanagementsysteminThailand,whereitisprojectedtosave8,600tonnesofCO2ein2011/12.Thissystemfindsthemosteff icientroutefordeliveringproductstostores,andhasalreadyhelpedusreducecarbonemissionsfromtransportinSlovakiaandtheUK.
TescoPLCCorporate Responsibility Report 201127
etwork optimisation
Aswellassavingfuel,weareworkingtorelocateourdepotssothattheyareinthebestpossibleplaceforstoresintheirregion.Thisyear,networkoptimisationhassaved12millionroadmilesintheUK,andover16,000tonnesofCO 2e.
Manyofournon-UKbusinessesarestillgrowingtheirdistributionnetworks.Thisgivesustheopportunitytopositionourdepotsinthebestlocations,toachieveefficiencyindistributionandcarbon.
SUPP CHA
In2009,wesetourselvestheambitioustargetofreducingcarbonemissionsinoursupplychainby30%by2020.Thecarbonemittedingrowing,manufacturing,processingandtransportingtheproductsweselladdsuptoaroundtentimesourdirectcarbonfootprint.Andweknowthatreducingemissionsbyconservingresourcesinoursupplychaincanpaybigdividendsonotherpriorities,suchasendingdeforestation,reducingwasteandusingwatermoreeffectively.
Withhundredsofsuppliersinmanycountries,manywithexpertiseindifferentaspectsofsustainability,thebestwaytomakeprogressistoshareknowledgethroughoursupplychains,acrosstheindustry,andacrossnationalboundaries.Thisyear,weaskedthesupplierstoourUKmarkettocompletequestionnairesontheircarbonreduction,water-saving,andwasteandpackagingreductionprojects.
Sharing knowledge
Toshareknowledgeandexpertisemorewidelyacrossoursupplychain,wehavesetupaKnowledgeHub,anelectronicspacetosharebestpracticewithoursuppliersonadailybasistohelpthemgaintheconfidencetheyneedtoinvestincarbonreduction.Wecurrentlyhaveover150membersofourKnowledgeHub,
andaimtoincreasethisto300in2011/12.
Piloting carbon reduction projects
Wearemappingthebiggestopportunitiestocutcarboninthesupplychainourcarbonhotspotsandwillusethisinformationtodrivecollaborativeprojectswithoursupplierstoreduceemissions.Wearedevelopinganimprovedcarbondatamanagementsolution,whichwillhelpustoaccelerateourcarbonfootprinting.
Wearepilotingthisapproachinthreehigh-volumecategoriesintheUKmilk,bakedbeansandwine.Aswelearnmore,wewillextendtheprogrammetomoresectors.
OurmilkpilotusesresearchbytheTescoDairyCentreofExcellenceattheUniversityofLiverpool,whereresearchershavebeen
monitoringwhethergivingcowsdifferentfoodwillimprovetheirdigestionandreducemethaneemissions.In2011/12,wewillgetcarbonfootprintsofmanyofthefarmsthatproducethemilkwesell.FarmerswillthenbeabletocomparetheirperformancewithotherTescodairyfarmers.Wewillalsousethisinformationtogivefarmersabestpracticeguidewithpracticalideasabouthowtoreducecarbonemissions,frommanuremanagementtoinvestinginrenewables.
LOW-CARBONDEPOTS
WehaveopenedourfirstdepottobepoweredentirelybyrenewableenergyinWidnes,UK.Thedepotisnotconnected
totheNationalGrid,butinsteadissuppliedwithheatandelectricitythroughapartnershipwithlogisticscompanyStobartandrecyclerPDM.Eachyear,PDMsCHPplantwillturn230,000tonnesoffoodwastefromfoodretailersincludingTescointorenewableheatandelectricity,saving7,000tonnesofCO 2e.
OurDaventrydepot,duetoopeninMay2011,hasdirectrailfreightaccessforuptoeighttrainsperday,whichisprojectedtosavenearly20,000tonnesofCO 2eperyear.
June2011willseetheofficialopeningofourlow-carbondepotinJiashan,China.Thebuildingwillusearound30%lessenergythanadepotbuiltin2006,throughbetteruseofnaturallightandrenewableenergytechnologiessuchasgroundsourceheatpumps.
0.141
2010/11
0.150
2009/10
0.156
2008/9
0.162
2007/8
0.177
2006/7
CARBONFOOTPRINTPERCASEOFGOODSDELIVEREDkgCO2e/case
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ncentivising green behaviour
IntheUK,wegiveoutoveronebilliongreenClubcardpoints,worthover10million,everyyeartocustomerswhorecyclealuminiumcansatourautomatedrecyclingmachines,recycle
printercartridgesandmobilephones,choosebaglesshomedelivery,buyhomeinsulationorreusecarrierbags.
Thisyear,welaunchedgreenClubcardpointsinPolandtoaddtoexistingschemesinMalaysia,SouthKorea,ThailandandtheUK.In2011/12,weplantolaunchtheschemeinChina,HungaryandTurkey.
Carbon labelling
Carbonfootprintingourproductsgivesusvaluablenewinformationaboutwhereemissionsareconcentratedinthesupplychain,andwheretherearegoodopportunitiestoreducethoseemissions.SinceJanuary2008wehavecarbonfootprinted1,100productsintheUK.
Wewanttoencouragecustomerstoconsidertheenvironmentalimpactoftheproductstheybuy.WehavethereforeworkedwiththeCarbonTrustandotherstakeholderstodevelopauniversalcarbonfootprintlabelthatdescribestheemissionsassociatedwitheachproduct.SinceJanuary2008wehavecarbonlabelled525everydayproductsintheUK.
CUSTOERS
Climatechangewillonlybetackledsuccessfullyifpeoplebecomechampionsofalow-carbonlifestyle.Ourroleistoshowcustomersthatlivinggreenerlivescanbeattractiveandaffordable.IntheUKweknowthatourcustomerscarbonfootprintisaround100timesgreaterthanTescosdirectcarbonfootprint,sowehavearealopportunitytotackleclimatechangebymobilisingourcustomerstomakesmallchangesthatadduptoabigdifference.
In2009wemadeacommitmenttohelpourcustomershalvetheircarbonfootprintsby2020.WehavecarriedoutcustomerresearchineveryTescomarkettoidentifythekeybarriersandactionsneededtohelpcustomersreducetheircarbonfootprints.Price,information,practicalbarriersandasenseofdisempowermentarecommonthemes.Everymarkethasproducedaroadmapoutliningmeasuresplannedtohelpcustomerscutcarbon.
InMalaysia,PolandandSouthKorea,weinvolvechildreningreen
educationalprogrammesandrunenvironmentalcompetitions.OurTomorrowsFootprinteducationalprogrammeinTurkeyhelpschildrenunderstandtheimpactofclimatechange,andhassofarreachedatotalof24,000children.InChina,weareintroducinggreenshuttlebusesandelectriccarchargingpointsatstores.Moreinformationoninitiativesindifferentmarketscanbefoundatwww.tescoplc.com/countries.
1.3bnIntheUK,carbon-labelledproductsaccountfor1.3billionofsaleseachyear.Wehavealsolabelled33productsin
SouthKorea.
SinceJanuary2008,wehavecarbonlabelled525everydayproductsintheUK
Carbon-labelledproductsaccountfor1.3billionofsaleseachyear.InJanuary201159%ofUKcustomersboughtatleastone
carbon-labelledproduct
Carbonlabelsgiveacomparisonwithasimilarproduct,allowingcustomerstomakeagreenerchoice.Manyalsogiveadviceonhowcustomerscanreducethecarbonfootprintoftheproductforexample,bywashingclothesatalowertemperature
WearealsogrowingourcarbonlabellingprogrammeinSouthKorea,andhavenowlabelledatotalof33products
Carbon labelling
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Greener products and advice
Thisyear,welaunchedourGreenThingsrangeofenvironmentallyfriendlyhouseholdproductsintheUS,whichisprovingpopularwithcustomers.
IntheUK,ourGreenerLivingproductshelpourcustomersmake
greenerchoices,andtheGreenerLivingwebsiteprovidesadviceonhowcustomerscancuttheircarbonfootprint.37%ofvisitorstothewebsitesaytheyhavechangedtheirbehaviourasaresult,and28%saytheyhavepurchasedagreenproductaftervisitingthesite.
In2011/12,weplantolaunchorexpandgreenwebsitesinourCentralEuropeanmarketstoraiseawarenessandhelpcustomerssavemoneyatthesametime.
ow-carbon services
In2010,welaunchedatotalHomeEfficiencyServiceintheUK,offeringcustomersinsulationandsolarenergyproducts,aswellasinformationaboutplanningissuesandgovernmentfunding.Thishashelpedcustomerssavealmost400,000tonnesofcarbon.
AspartofaUKGovernmentscheme,wehavealsoinstalledmorethan6,000freeinsulationupgradesforsomeofourmostvulnerablecustomers,helpingthemtostaywarmandreducetheirenergybills.Formoreinformationseewww.tesco.com/homeefficiency.
Engaging our staff
Wehavein-storeEnergyChampionsintheCzechRepublic,Hungary,Ireland,Malaysia,Poland,Slovakia,SouthKorea,Thailand,TurkeyandtheUK.Theirroleistofindwaystosave
energyinourstores,andhelptheircolleaguesunderstandtheneedtosaveenergy.
Inautumn2010,werecruitedover70GreenChampionsfromacrossourUKbusiness.Championscomefromalllevelsandfunctionsofthebusiness.TheirroleistoactascatalystsforgreenactivityacrossTesco,andwesupportthemwithregulartrainingsessionsandanonlinenetworkingtool,allowingthemtosharetheirplansandexperiences.
37%ofvisitorstotheGreeneriving
websitesaytheyhavechangedtheir
behaviourasaresult,
and28%saytheyhavepurchasedagreenproductaftervisitingthesite.
CLIMATEWEEK
InMarch2011TescowastheheadlinepartneroftheUKsfirsteverClimateWeek.Thisnationaleventhighlightedthemanypositivestepsthatarealreadybeingtakeninworkplacesandcommunitiestocombatclimatechange.WesupportedClimate
Weekinourstores,throughourproducts,inourpublicationsandwithstaff.TheeventwassupportedandendorsedbyUKPrimeMinister,DavidCameron,formerUNDirectorGeneral,KofiAnnanandformerUSVicePresident,AlGore.
SUSTAINABLECONSUMPTIONINSTITUTE
In2007,Tescocommitted25milliontocreateanewSustainableConsumptionInstitution(SCI)attheUniversityofManchester.TheSCIisamultidisciplinarycentreofglobalexcellence,researchingmajornationalandinternationalissuesassociatedwithsustainabilityandencouragingconsumerstoadoptmoresustainablelifestyles.Amongitsflagshipprojects,theSCIisfocusingonunderstandingconsumerbehaviour,andidentifyingnewtechnologiesandinnovationsacrossthesupplychain.Formoreinformation,seewww.sci.manchester.ac.uk.
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Packaging
Packagingcanappeartobeoneofthebiggestenvironmentalissues.However,packagingprotectstheproductswesell,helpingtoreducefoodwasteandthereforecarbonemissions.
Independentresearchshowsthat,indevelopingcountries,thelackofpackagingorinadequatepackagingcausesuptohalfofallfoodtodecaybeforeitreachestheconsumer,leadingtomorewaste.IntheUK,withmoreefficientpackaging,thefigureisonly3%.
Nevertheless,wearecommittedtoreducingpackagingwherewecandosowithoutcompromisingitsroleinprotectingandpreservingtheproduct.Ourpolicyisbasedonfivekeyprinciples.Packagingshould:
befitforpurpose;
usethelightestweightmaterials;
usematerialsfromthemostsustainablesources;
maximiseopportunitiesforrecyclingandrecovery;and
bedesignedtohavethelowestcarbonimpactkeepinginmindtheproductandvaluechain.
Wehavealreadyreducedpackagingonourown-brandproductsintheUKbymorethan15%since2007.
IntheUK,TescoisasignatorytoWRAPs(WasteandResourcesActionProgramme)Courtauld2,anindustry-widecommitmenttoreducepackagingandwasteby2012,againstabaselineof2009.Wehavecommittedto:
reducetheweight,increaserecyclingratesandincreasetherecycledcontentofgrocerypackaging,loweringitscarbonimpactby10%;
reduceUKhouseholdfoodanddrinkwasteby4%;and
reduceproductandpackagingwasteinthesupplychainby5%.
WehavealsosignedavoluntaryagreementthroughtheindustrybodyIGDtoplayourpartinanindustrytargettorecycle150,000tonnesandeliminate75,000tonnesofwastebytheendof2012,againstabaselineof2009.
WASTE, RECCG A PACKAGG
Waste
ReducingwasteisapriorityforTesco.Balancingtheneedtoensurestapleproductsarealwaysavailabletocustomersagainsttheneedtominimisewasteisanormalpartofstoremanagement.Eachofourbusinesseshasitsowntargetstoreducewasteandimproverecycling,workingwithinthelimitsoflocalinfrastructure.EveryTescostoreintheUKhaswastetargetsthatarereportedonaweeklybasis.
Since2009wehavesentnowastefromourUKstoresdirectlytolandfilltheonlymajorUKretailertodoso.Ifwastecannotberecycled,wemakesurethat,wherepossible,itisusedtomakealternativesourcesofenergy.
Recycling
InChinaweachievedourtargetforcardboardrecycling,andourperformanceforvegetableoilandfreshwasteimproved.
WehaveplanstooperateaRecyclingServiceUnitintheCzechRepublicandcentralisedwasterecyclingthroughdistributioncentresinSlovakia.
InIrelandweheldWasteElectricalandElectronicEquipmentCollectionDaysat28stores,allowingcustomerstobringbacktheiroldelectricalappliancesforrecycling.Werecycledatotalof286tonnesofelectricalwaste,theequivalentof19,000televisionsor150,000hairdryers.
InTurkeysomenewstoresarebeingservedbyanewwastecontractor,whichhelpedusexceedourrecyclingtarget.Werecyclepaper,nylon,certainplasticsandtin,asregulationrequiresustogiveotherplasticsandcardboardtospecialisedcompaniesforfree.
IntheUKwerecycleallourcardboard,metal,officepaper,plastic,chickenfatandcookingoil.WearethelargestretailrecyclerofcardboardintheUK,processingnearly300,000tonnesayear.Thecardboardwerecycleismadeintonewpackaging,aprocessthattakesjust14days.Werecyclearound22,000tonnesofplasticayear,oftenturningitintobinliners.
In2010werolledoutbatteryrecyclingpointstoallourUKstores.Thesehaveprovedpopularandourcustomershaverecycled228tonnesofbatteriesthisyear.WealsoinstalledinnovativenewinformationscreensonourUKautomatedrecyclingmachines,whichcommunicatehowmuchCO 2isbeingsavedbyrecycling.
300,000WearethelargestretailrecyclerofcardboardintheUK,processingnearly300,000tonnesayear.
HANGERRECCLING
Since2009,wehaveprevented1,600tonnesofplasticgoingtolandfillthroughourUKhangerrecyclingprogramme.Customersleavetheirhangersatthecheckout,andtheyareeitherreused
orrecycled.From2011/12onwards,weaimtoprevent5,000tonnesofplasticgoingtolandfilleachyear.
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PROGRESS O SEECTE 2010/11 PRORTES
TescoPLCCorporate Responsibility Report 201131
South Korea
Japan
76,000placesintheeParanGreenLeadersProgramme
Reducedcarrierbaguseby20%
Achieved we provided over 90,000places this year
ot achieved a Tesco Japan customernow uses around 10% fewer carrier bagsthan in 2009
reland 100%ofwastedivertedfromlandfillby2011 ot achieved at the end of 2010/11,90% of waste was diverted from landfill.We have sent no waste from our UKstores directly to landfill since 2009
UK Increasenumberofproductswithcarbonlabelto500andincreasecustomerawarenessofthelabel
Achieved since January 2008, we havecarbon labelled 525 products. 24% ofTesco customers have seen the label
on a product, rising to 30% among16-24-year-olds
UK Reducecarrierbaguseby70%byendof2010(comparedto2006)
ot achieved a Tesco UK customernow uses around 60% fewer carrier bagsthan in 2006. For more details, see ww w.tescoplc.com/carrierbags
Turkey Runeducationprogrammeonclimatechangefor12,000children Achieved over 13,000 children havebeen educated on the impact of climatechange this year, bringing the totalto 24,000
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Providing
customerswithhealthy
choices
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Helping our customers
eat well and get active
We want to help our staff and customers
to lead healthy lives.
As a global business, we know that healthylives means different things in our different
markets. We aim to work with our industry
partners, academic and technical experts,and governments to understand and help
tackle key public health issues for example,
food safety, obesity and alcohol misuse.
Ourfirstpriorityistoprovidesafe,goodvaluefoodforourcustomers.Thisismorechallenginginsomemarketsthaninothers,andwearecommittedtoupholdinghighstandardsoffoodsafetyacrosstheworld.
Wehaveaclearroletoplayinmakinghigh-qualityfoodsaffordabletoeveryone,andingivingcustomerstheinformationtheyneedtomakehealthyfoodchoices.Wecanalsouseourtrustedbrandtoencourageourstaffandcustomersacrosstheworldtoadopthealthy,activelifestyles.
ForTesco,providingcustomerswithhealthychoicesmeans:
makinghealthyoptionsaccessibletoeveryonethroughpriceandpromotions,healthyranges,andbyreformulatingourproducts;
providingthebestinformationonthenutritionalvalueofourproducts,andonhowourstaffandcustomerscanlivehealthylives;and
makingitmoreattractivetoleadanactivelifestyle.
Providing customers with healthy choices
4.2 millionPeoplegotactiveinThailandthroughaerobics,walkingandfootball
18,000ChildrenwhoparticipatedintheTescoBankFootballchallenge
33mAnnualsalesvalueoftheTescoFreeFromrangeintheUK
1 millionSchoolchildrenwhotookpartintheUKsGreatSchoolRun
3,600Productsreformulatedsince2005intheUKtoreducetheirsalt,sugaror
saturatedfatcontent
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HEATH OPTOS
Food safety
Basicfoodsafetyremainsaprimaryconcernforcustomersinsomeofourmarkets.Here,wecanplayanimportantroleinspreadingbestpracticeandimprovingstandards.
Forexample,thereisanenormouslevelofinterestinfoodsafetyinChina.TescoissupportingtheChineseGovernmentasitcodifiestherulesonfoodsafety.Atthesametime,wearesupportingtheChineseauthoritiesinbuildingcapabilitywithinthesupplychain,sharingourknowledgeonfoodsafetyinstorageanddistribution.
Healthy eating brands
Ourhealthyeatingbrandscontainnutritionallybalancedproductswithcontrolledamountsoffats,sugarandsalt.Weoffertheminsevenmarkets.Forexample,ourEatWellrangeintheUSfeaturesreducedcalories,fat,saturatedfatandsalt.
Thisyear,werebrandedtheUKrangeandintroducedanewwavelogoatthetopofpacks,helpingcustomersfindhealthieroptions
moreeasily.WehaveaLightChoicesrangeofproductsintheUK,allofwhichhavelessthan3%fatoratleast30%lessfat(or30%fewercalories)thantheequivalentTescostandardproduct.
Changing the formula
Wehavebeencuttinglevelsofsalt,sugarandsaturatedfatacrossourrangessince2005,andsincethenhavereformulatedover3,600UKproductstoimprovetheirnutritionalcontent600thisyearalone.
IntheUKandUS,allourown-brandproductscontainnoartif icialtransfatsandnoartificialcoloursorflavours.
Wecontinuetoleadonreformulation:forexample,in2010,theUKFoodStandardsAgencysetatargetforsaltreductioninready
meals.TheaverageTescoreadymealalreadycontained10%lesssaltthanthetarget.IntheUS,wehaveremovedhigh-fructosecornsyrupfromallFresh&Easyproducts.
Ineverymarketinwhichweoperate,weworkwithgovernmentstohelpthemachievetheirhealthtargets.WearecurrentlyworkingwiththeUKGovernmentonitsPublicHealthResponsibilityDeal(seebox).
BETTER FORATO
utrition labelling
Allofoureligibleown-brandfoodlinesacrosstheglobehavenutritionlabelling.Theonlyexceptionsarefoodcookedin-store
andproductswhereitwouldbeimpracticaltoaddalabel,suchasherbsandspices.OurnutritionlabellingusesGuidelineDailyAmounts(GDA)andtellscustomershowmanycaloriesandhowmuchsugar,fat,saturatesandsalttheywilleatinoneserving,alongwiththepercentageGDAforatypicaladult.
In2005,TescowasthefirstUKretailertoputnutritioninformationonthefrontoffoodpacks.Thisyear,afterasuccessfultrialinourstaffrestaurants,weintroducednutritionlabellingonthefoodweserveinourUKin-storecafes.Formoreinformation,seewww.tescoplc.com/labelling.
TheUKGovernmentrecommendsthatpeopleconsumefiveindividualportionsoffruitorvegetableseveryday.Wecommunicatethistocustomersthrough5-a-daylabelson
appropriateproducts.The5-a-daymessageisnowwellknownintheUK,butnotinothermarkets.In2011,wewillrollout5-a-daylabellinginChina.
IntheUK,weareworkingwiththeindustrybodyIGDtoencouragetheDepartmentofHealthtoincludecompositefoodsinthe5-a-dayscheme,helpingpeopleeatmorefruitandvegetables.Currently,theofficial5-a-daybrandingonlyappliestofruitandvegetableswherenosaltorsugarhasbeenadded.Thismeansthatifacustomerservesaportionofpeasalongsideoneofourreadymeals,forexample,itwouldcounttowardstheir5-a-day.Butifweaddedthepeastothemeal,itwouldntcount,evenwhenthemealitselfisahealthyoption.WeareworkingwiththeDepartmentofHealthandcolleaguesinindustrytofindasolution.
Wehaveaclearroletoplayinmakinghigh-qualityfoodsaffordabletoeveryone,andingiving customers
theinformation they
need tomakehealthy
food choices.
QUANTITNOTQUALIT
Researchshowsthatpeopletendtoeatbyvolumefillingtheirplatesorbowlsratherthanbythecalorificcontentoftheirmeal.Soreducingthecaloriecontentoffoodcan,insomecases,bemoresuccessfulthanencouragingpeoplesimplyto
eatless.TescoisworkingoncaloriereductionaspartoftheUKGovernmentsPublicHealthResponsibilityDeal,wherewearelookingatwaystohelpcustomersreducetheircalorieintakeforexample,byreducingthesugarcontentoffullsugarsoftdrinks.Thisyear,weremoved430tonnesofsugarfromourcarbonateddrinksandsquashes,equivalenttoa4%reductionacrosstherange.
FREEFROM
In2003,TescowasthefirstUKretailertolaunchanown-brandrangeforcustomerssufferingfromallergiesorintolerancestowheat,glutenand/ormilk.TheTescoFreeFromrangeisnowwortharound33millioneachyear,andresearchtellsusthatprovidingtherangehasapositiveimpactoncustomerloyalty.WeworkcloselywithCoeliacUK,theleadingcharityforpeoplewithcoeliacdisease,tounderstandtheneedsofthosewithglutenintolerance.
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7.1mraisedbystafftakingpartinorsupportingourracessince200
2
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China 36,000
Czech Republic 9,400
Hungary 6,100
alaysia 16,600
Poland 5,100
Slovakia 8,300
South Korea 378,000
Thailand 4.2 million
Turkey 29,000
UK 2.55 million
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Canoeing
WeareproudtobehelpingprepareBritishathletesforthe2012OlympicGames,bybecomingtheGoldsponsorofGBCanoeinginpartnershipwiththeBritishCanoeUnion.GBCanoeingis
dedicatedtosupportingthemosttalentedathletesintheOlympicdisciplinesofCanoeSlalomandCanoeSprintRacing,andwereparticularlypleasedtosupporttheirtrainingattheOlympicslalomcoursenearourCheshuntHeadOffice.
Football
Footballcontinuestobeanextraordinarilypopularandeffectivewayofengagingwithchildrenacrossmanyofourmarkets.
WorkingwiththeEnglishFootballAssociation,wefund106coachesthroughouttheUK,whoteachfootballskillstoboysandgirlsaged511.TheFATescoSkillsprogrammeformstheFAscentralstrategyforencouragingchildrentoplayfootballandbuildingthefuturehealthofthegame.Thisyear,weprovidedover740,000placesontheprogramme.
WealsoworkwithEvertonFootballClubandtheShanghaiDisabledPersonsFederationtohelpchildrenwithdisabilitieslearnfootballskills.Inthelastthreeyearsnearly1,500disabledchildrenhavereceivedfootballtraining.Thisyear,weranfootballsummercampsinBeijing,Guangzhou,Shanghai,TaizhouandTianjin.
InApril2011,wewilllaunchtheeParanouthFootballClubinSouthKorea.Theclubwilloperateontwolevels:elite,ateam
of30speciallyselectedchildrengivenprofessionalcoaching,andhobby,aweeklyfootballclassforchildrenatallskilllevels.
TESCOBANKFOOTBALLCHALLENGE
InJanuary2010,TescoBankinvested1millioninanewfootballprogrammeforchildreninScotland,inpartnershipwiththeScottishFootballAssociation.Overfouryears,theTescoBankFootballChallengeaimstoreachover70,000boysandgirlsinatleast1,600primaryschoolsacrossthecountry.Thisyear,18,000childrenhaveparticipatedintheprogramme,andfeedbackhasbeenoverwhelminglypositive,frompupilsandteachersalike.
nJanuary2010,TescoBankinvested1millioninanewfootballprogrammeforchildreninScotland,inpartnershipwiththeScottishFootballAssociation.
GETTINGACTIVEWITHTESCO
Total number of people getting active with Tesco:
over 7 million
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PROGRESS O SEECTE 2010/11 PRORTES
China Rollouttechnicalsupportforsupplierstoimprovefoodsafetyandquality
Achieved we rolled out technicalsupport for suppliers to improvefood safety and quality of own-brandproducts
alaysia Launch50LiteChoiceslines Partially achieved we have launched24 ite Choices lines in-store
UK ExpandFATescoSkillsprogrammeto4.5millionplacesby2014 Achieved for 2010/11 we providedover 740,000 places on the programmethis year
Hungary LaunchaGDAeducationprogrammeincludingatoolkitforstudents ot achieved we have instead focusedon developing healthier products forour customers
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Activelysupportinglocalcommunities
64.3mdonatedtocharitiesandgoodcauses
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aking a positive
contribution in ourneighbourhoods
We want to be a good neighbour in all the
communities in which we operate. This means
being in tune with the needs and values of
local communities, engaging positively onthe issues that matter to them, and making
lasting contributions that improve localareas. By doing this, we ensure we are true
to our values, and help build our customers
lifetime loyalty.
ThereisadebateintheUKandelsewhereaboutthetaxcontributionofinternationalbusinesses.Thisyear,Tescopaid1.5billionintaxesintheUK,includingcorporationtax,businessratesandemployersNationalInsurancecontributions.AccordingtoarecentsurveyconductedbyPricewaterhouseCoopersonthe
totaltaxcontributionofTheHundredGroup(whichrepresentsthefinancedirectorsoftheUKslargestcompanies),TescowasthehighestrankedcompanyintheUKfortotaltaxespaid.
Ourmostvisiblecontributiontocommunitiesisdeliveredthroughourshops.Weregularlyopenstoresinareaswhichotherbusinesses,includingretailers,haveabandonedorneglected.Thesestoresprovideaccesstoqualityfreshfoodataffordablepricesincommunitiesthatareoftenotherwiseisolated.Theyalsobringmuch-neededjobsandresultingincometothelocalarea.WeareparticularlyproudofourRegenerationPartnershipprogrammeintheUK.
Ourstoresareoftenafocalpointofthelocalcommunity,aplacewherepeoplemeetandinteract.Wewanttoensurethatweunderstandandcanservetheneedsofourcommunities.Forexample,morethan20languagesarespokenbystaffatourCheethamHillstoreintheUK,improvingourabilitytoserveourcustomers.
Butbeyondthis,ourstaffandourcustomerslooktoustogetbehindlocalcauses,whetherthatmeansprovidingfundsforalocalcharity,givingvisibilitytoalocalcampaign,orprovidingopportunitiesforourcustomersandstafftohelponlocalissues.
Actively supporting local communities
10mRaisedbycustomersandstaffforcharitiesandgoodcausesinadditiontothe64.3mdonatedbyTesco
50,000PeopletakingclassesatourFamilyClubsinTurkey
700,000OnlinevotesreceivedforenvironmentalfilmsmadebystudentsinPoland
5.7 millionTreesplantedinThailandbyTescocustomerssince2007
10,000+NewvolunteersrecruitedatCommunityFairsin
theUK
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Community Champions
Ourin-storeCommunityChampionshelpuscommunicateeffectivelywithlocalcommunities.Bygivingouremployeesthetimeandtoolstoworkwiththeirneighbourhood,wemake
arealdifference.CommunityChampionsarepaidtospend18hoursaweekworkingwiththeirlocalcommunity.Forexample:
givingstoretourstolocalschoolchildrenorgoingintothelocalprimaryschooltotalkabouthealthyeating;
organisingcollectionsorbagpackingforalocalcharity;
meetingthefireserviceorlocalcharitiestofindouthowwecanhelpthem;or
gettingourstaffandcustomersinvolvedineventssuchasRaceforLife.
Wehave669CommunityChampionsineightmarketsacrosstheGroup(China,theCzechRepublic,Hungary,Ireland,Malaysia,
Slovakia,SouthKoreaandtheUK).WewillberollingoutCommunityChampionsacrossourstoresinTurkeynextyear.
COUT TATES
Wehavemanyotherinitiativestoengagewithlocalcommunitiestohelpcharities,improveeducationorprotecttheenvironment.
IntheCzechRepublic,ourTescoFoundationsupportslocalNGOsworkinginhealthandsocialcare.In2010/11,CZK700,000(23,700)wassharedbetween21charitiesprovidingequipmentfordisabledpeople,computerprogrammesforblindchildren,andtutoringforchildrenoffamiliesonlowincomes.
InIndia,wehavefundedqualityeducationforpeopleonlow
incomeswiththeParikrmaFoundationsince2007.
InPoland,ourTescoforSchoolsinitiativeranagreeneducationcompetitionforstudentstomakeanenvironmentalfilm.Over600filmsweresubmitted,andalmost700,000onlinevoteswerecastforthebestfilm.The30winningfilm-makersreceivedhigh-techequipmentfortheirschool,and300studentswonanindividualaward.
AlsoinPoland,weheld804store-basedcommunityeventsinsupportoffloodvictims,aswellasrunningablooddonationprogramme.
PROFILE:SHIRLEHAES,COMMUNITCHAMPION,RICHMOND,NORTHORKSHIRE
Withalonghistoryofvolunteeringandapreviousjobasatutor
incitizenship,itsnowonderthatShirley,a43-year-oldmumoftwinboys,jumpedatthechancetobecomeaTescoCommunityChampion.
Ilovemixingwithpeopleandgettingoutintothecommunity,soIknewthisrolewasmadeforme!saysShirley.Ialsothinkcommunityworkisgreatforteam-buildingandboostingmorale,andIknowhowimportantthatisforpeopleworkinginthesedifficulteconomictimes.
Shirleyisagiftedartist,andoftendrawsonhercreativeskillstoreachouttoschoolchildren,staffandcustomers.Shehashelpedchildreninseverallocalschoolstocreatecollagesoutofrecycledmaterials,gettingthemexcitedaboutrecycling.Shirleyalsogivesgreenstoretours,showingcustomershowTescois
reducingenergythroughnewtechnologies,andgivingtipsonhowtheycancuttheirowncarbonfootprints.
Shirleyisanavidfundraiser,andhascollectedforanumberofdifferentcharities,includingHelpforHeroesandTheCancerTrust.Shesays,IlikemakingadifferenceandsupportinglocalcharitiesthatreallybenefitfrommyhelpandtimeIcangivethem.IfeellikeImthefriendlyfaceofabigorganisation.
600+Farmersandfoodproducerswehaveassistedinimprovingtheirbusinessplanningandmarketingthrough
dunnhumbyspartnershipwithKentBusinessSchool.
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BUONE,GIVEONE
In2009,welaunchedBuyOne,GiveOne,inwhichtheUKbusinessdonatedaschooluniformtoachildinKenyaforeveryuniformboughtbyourcustomers.12,000childrenreceivednewschooluniformsthroughthescheme.ThisyearweworkedwithSavetheChildrentoexpandtheschemetoBangladeshandSriLanka.Todate,wehavedonated96,000schooluniforms,allowingmorechildrenaccesstoeducation.
InSouthKorea,werun107SchoolsofExtendedEducation,wherechildrencancomeforextracoursesafterschool.Thisyearweprovidedover940,000placesandranover500environment-relatedprogrammes,includingcoursesinrenewableenergy,climatechangeandecosystems.In2011,wewillstartcoursesinmusic,artandEnglishforchildrenoffamiliesonlowincomes.
AlsoinSouthKorea,nearly40,000childrentookpartinourenvironmentalpaintingcompetition,andthewinnersrepresentedtheircountryintheglobalUNEnvironmentPaintingCompetition.
InThailand,aspartofourPlantninemilliontreescampaign,weplanted950,000treesthisyear,bringingthetotalto5.7millionsince2007.
AlsoinThailand,weachievedourOnemillionhoursvolunteeringtarget,whichhasreinforcedourreputationastheretailermostsupportiveoflocalcommunities.
InTurkey,wearetheonlyretailertorunFamilyClubs,where50,000peopletakeclassesintopicsincludingEnglish,Pilates,
chessandsalsa. IntheUKweextendedourCommunityFairsinitiativeto100stores,helpingthousandsoflocalcharitiesandsupplierstoshowcasetheirwork,andrecruitingover10,000volunteers.
Formoreinformation,seewww.tescoplc.com/countries.
Supporting communities in our supply chain
Wearealsoactiveinthecommunitiesthatsupplytheproductswesell.
InSriLanka,wehavebeenworkingtobringtogethercommunitiestornapartbywar.Wearenowthelargestcustomerofthelocalclothingfactory,accountingfor80%oforders.
InpartnershipwithKentBusinessSchool,dunnhumby(ourconsumerresearchbusiness)providescustomerinsightfreeofchargetofarmersandsmallfoodproducersallovertheUK.Overthepastfiveyears,wehavehelpedover600farmersandfoodproducerstoimprovetheirbusinessplanningandmarketing.
CHARTABE GG
Acrosstheglobe,ourstaffandcustomershelpedusraise10millionforcharitythisyear,exceedingourtargetof7million.Thesefundsprovidevaluablesupporttolocal,nationalandinternationalcharities,helpingthemtodevelopnewprogrammesandsupportthoseinneed.
Formoreinformationseewww.tescoplc.com/giving.
Corporate giving
Eachyear,wesetourselvesatargettodonateatleast1%ofourpre-taxprofitstocharitiesandgoodcauses.Thisyearwedonated64.3milliontocharitiesandgoodcausesthroughdirectdonations,cause-relatedmarketing,giftsinkind,stafftimeandmanagementcosts.Thisrepresents1.8%ofourpre-taxprofitsalmostdoubleourtarget.
Emergency relief and humanitarian aid
Weworkhardtorespondquicklytonaturaldisasterswherevertheyhappen.OurpartnershipwiththeRedCrosshashelpedustogetfundstothoseinacuteneed.Thisyear,ouremergencygivingincludeddonationstohelpthevictimsoffloodsinCentralEuropeandtheQinghaiearthquakeinChina,aswellasfloodsinIndonesia,Malaysia,ThailandandVietnam.
WewereoneofthefirstbusinessestorespondtothedevastatingearthquakeandtsunamiinJapaninMarch2011.Wemadeacorporatedonationof50,000asaGroup,andallowedourUKcustomerstodonatetheirClubcardvoucherstotheappeal.OurJapanesebusinessworkedwiththeRedCrosstoenablecustomersinTokyotodonatein-store,andmatchedstaffandcustomerdonationsuntiltheendofApril2011.
Charity of the ear
WerunCharityoftheearcampaignsinfivemarkets.Ineach
market,weselectacharitythatrepresentsacauseourstaffandcustomerscareabout,andthatcanmakeadifferenceontheground.Thisyear,wesupportedthefollowingCharitiesoftheear:
IrelandTheIrishCancerSociety(www.cancer.ie).Weraised950,000(805,000)in2010/11,whichhelpedtofundCaretoDrive,thecharitysnationalvolunteerdrivingserviceforcancerpatients.
JapanTheMake-A-WishFoundation(www.mawj.org).Thefundsweraisedhelpedtograntthewishesofchildrenwithlife-threateningmedicalconditions.
MalaysiaRumahNurSalam(http://nursalamchowkit.blogspot.com).ThemoneyraisedbyTescostaffandcustomersfundsthe
runningcostsofa24-hourshelterandactivitycentrethatprovidesasafeenvironmentforhomelesschildreninKualaLumpur.
PolandTheHappyKidsFoundation(http://www.tesco.pl/spolecznosci-lokalne/tesco-dzieciom.php).ThemoneyweraisedthisyearhashelpedthecharitytoopenanewfosterhomeforsevenchildreninWieruszw,andalsosupportstherunningoffiveotherfosterhomes.
UKCLICSargent(www.clicsargent.org.uk).Weraised7.2millionin2010/11.ThemoneywasusedtofundCLICnurses,whohelpchildrenwithcancerspendmoretimeathomeandlesstimeinhospital.
Overview
Responsibletrading
Environment
Health
Community
People
Governance
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ThroughTescoforSchools&Clubs,UKcustomerscancollectandredeemvouchersforequipmentforschools.Thisyear,wedonated9.3millionofequipmentto41,000schoolsandclubs,bringingthetotaltomorethan170millioninthelast20years.
Formoreinformation,seewww.tescoforschoolsandclubs.com.
Customerstoldustheywouldliketoparticipateinthescheme,butcurrentlydonotbecausetheyhavenodirectlinkwithaschoolorclub.In2011/12,wewillintroduceboxesin-storeforcustomerstodeposittheirvouchers,allowingthemtochoosefromseverallocalschoolsandclubs.
IntheUS,weranourShopforSchoolsschemeforathirdyear,inwhichparticipatingschoolsreceiveUS$1foreveryUS$20spentatFresh&Easystores.WealsorunShoppingNightforSchools,where5%oftheprofitsmadeonthatnightgotoaspecificschool.
IntheUK,weexceededourlargestevertargetof5million,raisingamassive7.2millionintotal.WealsodramaticallyincreasedUKcustomerdonationsthroughcoordinatedmarketingwithP&Garoundtheirhouseholdproducts.Ouremployeesurveystellusthat
two-thirdsofstafffeelproudtoworkforTescoasaresultofthiscampaign.nn
ational collections
Wehelpcharitiestoraisemoneybyallowingthemtocollectoutsideourstores.In2010/11,theRoyalBritishLegionraised3.3millionthroughTescocollections,andtheSlovakHumanitarian
Councilraised73,000throughitsChristmascollectionwithTesco.
ThisyearatRamadan,inpartnershipwiththeTurkishRedCrescent,weraisedenoughmoneytoprovideover17,000foodpackagesforpeopleinneed.Wealsodonated1,300unitsofblood,avaluableresourceinTurkey,collectedfrombothourstaffandcustomersinstorecarparks.
Equipment for schools
MARSMEALS
WebegansupportingMarysMeals,aninternationalcharityprovidingmealsforschoolchildren,throughtheTescoCharityTrustin2009.Tescossupportprovidesmealsforover4,000schoolchildreninIndia,Kenya,MalawiandThailandeveryyear.
Inspiredbythisinitialsupport,ourInternationalSourcingOfficeinBangaloredecidedtotakeitsownprojectforward,andhasbeenworkingwithMarysMealstoprovidefoodandprimaryeducationtochildrenwithoutaccesstogovernmentschools.ElevenofourBangaloreofficestafftookpartinamarathontoraisefunds.
WenowprovideallthefundingforacentrerunbyMarysMealsinDelhi,whichcatersforaround40childreneachday.Ourinvolvementhasledtoimprovedsanitationanddrainagefacilitiesatthecentre,aswellascleandrinkingwater,stationery,clothingandutensils.
9.3mThisyearwedonated9.3millionofequipmentto41,000schoolsandclubsintheUK.
Actively supporting local communities
TESCOFOUNDATIONINTHECZECHREPUBLIC
WewerenamedthebiggestdonorinhistoryintheCzechRepublicbyNROS,aCzechcharitablefoundation,whentheTescoFoundationraisedCZK3.6million(122,000)forHelptheChildrenthroughacause-relatedmarketingcampaignwithP&G.
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PROGRESS O SEECTE 2010/11 PRORTES
Hungary LaunchCommunityChampionsintenstores Achieved we launched CommunityChampions in 21 stores
Poland Organise550eventsforlocalcommunities Achieved we organised a total of 804events for local communities
South Korea ProvideonemillionplacesatourExtendedEducationAcademies(nowcalledSchoolsofExtendedEducation)
ot achieved this year, we providedover 940,000 places
UK DoublenumberofCommunityChampionsto250andrun100successfulCommunityFairs
Achieved we now have over 300Community Champions in the UK
UK OpensixRegenerationPartnershipstoresintheUKandcreateatleast600jobsforlong-termunemplo