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<TITLE>Tesco Annual Report and Accounts 1996</TITLE>
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<IMG SRC="images/18a.gif" width=585 height=110 ALT="Environmental responsibilities">
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<IMG SRC="images/title.gif" width=104 height=19 align=right ALT="Tesco PLC">
<IMG SRC="images/18b.gif" width=286 height=19 ALT="Environmental responsibilities">
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Tesco takes its environmental responsibilities very seriously and tries to find
practical solutions to environmental issues.
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In September, the Secretary of State for the Environment, the Rt Hon John
Gummer MP, opened the first of nine Recycling and Service Units. Located close to
Tesco composite warehouses, they will reclaim over 160,000 tonnes of used cardboard
every year. The cardboard will be converted into building materials such as plasterboard.
10,000 tonnes of shrink-wrap is also being salvaged, ending up as plastic bin liners.
A further 50,000 tonnes of cardboard will be saved every year through the
introduction of new plastic product trays.The trays are washed at the units before
collection by suppliers for reuse. The £12 million a year saved through the scheme
proves that being environmentally sensitive can make good business sense.
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Tesco is also improving its distribution system to reduce the number
of lorries on Britain's roads. The primary distribution project has been tested in
three parts of the country, and has proved so successful that it is now being
introduced throughout the company. The initiative involves approved contractors
collecting products from several suppliers and consolidating the loads before
delivering full lorries to the Tesco composite warehouses. Pollution and traffic
congestion are cut, as are the costs to suppliers who presently have to use their
own lorries. Plans are now underway to extend the system throughout Europe
and eventually to all our suppliers worldwide.
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<IMG SRC="images/18g.gif" width=435 height=162 ALT="Environmental responsibilities">
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<IMG SRC="images/18f.gif" width=394 height=333 ALT="Environmental responsibilities">
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For additional information on Environmental responsibilities:
<br><A HREF="page2.html#community">Chairman's statement - Community involvement</A>
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