Tesco Corporate Responsibility Review 2005

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Environment. Working with customers to help the environment

We believe in sustainable growth – it is responsible, it is what our customers want and it makes sound business sense. If we take decisions that are unsustainable, we may harm the world we all live in. Similarly, if we fail to minimise our environmental impacts, we will be inefficient and increase our costs.

Achieving the objective of sustainability is not always straightforward. Some goals are very clear – for example reducing energy consumption and minimising water use. But environmental, social and economic goals are not always aligned, and may need to be carefully balanced. For example, are the environmental costs of importing fresh flowers from Kenya outweighed by the social benefits of trading with under-developed economies?

We do not have all the answers, and like everyone we have to make difficult trade-offs between competing goals. But we listen to an ever wider range of stakeholders; and take practical steps in what we believe is the right direction whenever we can.

Environmental management

Tesco integrates the management of environmental, as well as social and ethical, issues into our Steering Wheel (click here for more information on our Steering Wheel) – the tool we use to manage the company both on a day-to-day and long-term basis. Each quadrant of the Steering Wheel contains KPIs with annual targets, and our Corporate Responsibility KPIs are contained within ‘the way we operate is responsible and safe’ segment of the Operations quadrant (click here to download our KPIs). In this way, environmental, social and ethical targets are integrated into the overall running of the business.

Energy and water

Tesco is committed to reducing our energy consumption and use of greenhouse gases. In 1997, we made a voluntary commitment to reduce our energy consumption per square foot by 35% by 2006. In 2005 we achieved this target one year early.

Transport

The bulk of our emissions come from our transport distribution fleet.

Waste and recycling

Tesco is committed to minimising waste production throughout our operations.

Products

We are constantly working with our suppliers to ensure that we give our customers high quality, competitively priced products that are produced to the high environmental and welfare standards they demand.

For our full environment policy visit www.tesco.com/corporate