main content
Climate Change
By delivering more goods for each litre of fuel we use we make sure we minimise the impact of our distribution fleet.
Signs remind staff to save energy in all our buildings.
Wind turbines at our store in Diss, Norfolk, produce enough energy to run all 15 tills.
Energy efficient ovens use 50% less energy than standard ovens.
We aim to save over 10,000 tonnes of CO2 by developing customised heat and power technology for our stores.
We are showing leadership, sharing our knowledge, learning from others and taking practical steps to reduce our energy use and greenhouse gas emissions.
Practical steps to tackle climate change:
- Establishing a £100 million fund for investment in sustainable environmental technology such as wind turbines, solar panels, combined heat and power and gasification
- Reducing our energy use per square foot by 50% by 2010
- Reducing use of greenhouse gases in refrigeration
- Increasing the efficiency of our distribution fleet and moving from air to sea freight for products wherever possible
- Encouraging customers to use biofuels and helping them to save energy in their homes
- Encouraging our staff to use cars less and save energy at work and home
In 2005/06, we were the leading food and drug retailer in the Carbon Disclosure Project Climate Leadership Index. Our Group Director of Corporate & Legal Affairs, Lucy Neville-Rolfe is one of 17 members of the Corporate Leaders Group on Climate Change, a multi-sectoral group working to ensure higher take-up among businesses of low-carbon solutions.
We are a member of the Retail Energy and Environment Club (REEC), which assesses new technologies and enables retailers to share information.
ENERGY USE - KwHft2
Energy Our aim is to be the best UK supermarket for energy use. We are aiming to halve by 2010 the average energy use in all our buildings against the baseline of 2000. In 2005/06, 1.75 million tonnes of carbon dioxide (CO2) equivalent were emitted as a result of our energy use.
We participate in the UK Emissions Trading Scheme (ETS). As part of the ETS, we are committed to an absolute reduction in greenhouse gas emissions over a five-year period at a control group of 118 stores, in return for a payment from the government which is invested in further energy saving initiatives.
Over the past year, we have invested £20 million in an extensive range of energy-saving schemes which will cut energy consumption by 135 million kWh per year, saving £8.1 million in energy costs, and saving 58,000 tonnes of CO2. For example, by investing over £4 million in energy efficient lighting, infra-red lighting sensors and dimming lighting, we have saved over 40 million kWh and over 17,000 tonnes of CO2 a year.
In April 2006, we established a £100 million fund for sustainable environmental technology.
Developing energy efficient stores
We want to achieve a step change in our energy consumption – to reduce energy use by 50% between 2000 and 2010.
We are designing model ‘energy efficient stores’ which use state-of-the-art technologies, renewable energy generation and energy efficient practices. Our first such store in Diss, Norfolk, opened in December 2005. The store uses 20% less energy – saving 720,000 kWh or 310 tonnes CO2 a year.
A 20% energy saving at our Diss store has been achieved through installing:
- Clear perspex sections in the roof to maximise natural light
- Five wind turbines on the roof to generate energy to power all 15 of the store’s tills and belts at maximum output
- Photocell lights in loading areas which are triggered by low external light and light movement sensors to ensure lights in offices and other staff areas are only on when in use
- Energy efficient bakery ovens
- A cold air recycling system which takes cold air from chilled areas to warmer areas of the store reducing the need for air conditioning
- Glass doors on sandwich cabinets, canopies above produce shelves and lips below the shelves in dairy and milk cabinets to reduce cool air loss
Our second model energy efficient store opened in Swansea in April 2006. The store uses many of the features tested at the Diss store and is the most energy efficient supermarket in the UK.
We will apply what we learn in our model energy efficient stores to all new stores. For example, as a result of our work at Diss, light emitting diode (LED) lighting, high efficiency fans, cold air retrieval and new lower energy freezer demisters are now part of our design standard for all new stores.
We aim to consider all environmental aspects of new store builds. We build more than 90% of new stores on brownfield sites and in 2006/07 will be testing timber frames for store builds and hope to build a store from recycled and recyclable materials.
Renewable energy We want to find cost effective ways to reduce emissions by generating our own energy through renewables and low carbon technology. In 2006/07, our £100 million fund will enable us to develop wind turbines, solar panels, gasification, trigeneration and combined heat and power.
We are working with the Carbon Trust and Brunel University to develop trigeneration combined heat and power (CHP) technology for our stores and distribution centres over the coming year with the aim of saving over 10,000 tonnes of CO2. These units enable us to capture and reuse heat created through power generation to reduce our overall carbon footprint.
“Tesco has a massive environmental footprint but also has the potential to move to radically different ways of producing and using energy. The £100 million fund – twice as much as Gordon Brown promised in the budget – could deliver a huge step forward for clean decentralised energy.”
Stephen Tindale
Greenpeace Executive Director
Working with our staff to save energy
In addition to using new equipment and
technology, we are working with our staff to
encourage them to take simple steps to save
energy at work and at home by:
- Having energy champions in each store to raise awareness of the need to save energy
- Giving staff simple checklists to help them monitor store energy consumption
- Producing a staff energy training video with the Carbon Trust
- Making store managers fully accountable for the energy use in their stores
- Running an awareness campaign through staff newsletters, leaflets in canteens and posters in offices and stores to help staff understand how they can help the environment by saving energy at work and at home
“Businesses need to take action now. Tesco is providing a strong example to other organisations, as it has made a firm commitment to cutting its carbon emissions and is implementing energy efficiency measures throughout its business. We urge others to follow its lead.”
Tom Delay
Chief Executive, Carbon Trust
Refrigeration We want to minimise the impact of our refrigeration on the environment. We assess the efficiency of all new refrigeration systems across their predicted working life, using Total Equivalent Warming Impact as a major deciding factor, as well as capital cost, maintenance and energy consumption.
We no longer use chlorofluorocarbons (CFCs) and replaced hydrochlorofluorocarbons (HCFCs) with hydrofluorocarbons (HFCs) in advance of European Union requirements. We are constantly testing alternatives to HFC and when we find suitable alternatives which have a lower overall impact, we change our specifications. From September 2005 the specification for new small fridges is HFC-free. We are testing alternatives such as CO2 for our larger fridges and freezers and air conditioning. The standard specification for the main refrigerant plants at our distribution centres is ammonia.
REFRIDGERENTS - % by type
Distribution To reduce emissions from our distribution fleet we aim to deliver more goods for each litre of fuel we use each year. This year we exceeded our target of a 2.5% increase in the products delivered per litre of fuel by delivering 8% more products per litre of fuel used.
To measure the environmental impact of our distribution fleet more accurately, our 2007 vehicle efficiency KPI will be calculated according to CO2 produced per case delivered instead of per litre of fuel consumed. Over the next three years we will reduce the amount of CO2 we produce per case of goods delivered by 30%.
Initiatives to reduce emissions from our distribution:
- We are working with our suppliers to ensure that their vehicles do not travel empty after making a delivery. Suppliers’ vehicles are used to make deliveries to stores on their return trip which reduces the overall number of vehicles making unnecessary return trips. This partnership has resulted in over eight million fewer miles travelled
- We have invested £2.8 million in double deck trailers which carry 67% more products per load and we have encouraged suppliers to use these vehicles when they make deliveries
- By reducing the number of times we deliver to our Express stores each week and improving the way we fill our vehicles, we have saved over 54,000 deliveries each year, travelled 2.5 million fewer miles and delivered 25% more with each journey
- In 2005/06 we invested £5.2 million in buying equipment which reduces emissions of nitrous oxide by 30% and particulates by 50%
- Considering freight methods when we are sourcing produce and wherever possible, transporting by sea instead of air. For example, in 2005/06 we moved the transportation of 40% of our salad onions from air to sea
Rail To reduce our CO2 footprint, and to reduce the pressure of vehicles on the road, we remain committed to exploring all possible alternatives to road haulage. Our trial in 2005 using rail between Edinburgh and Inverness did not prove commercially viable. However, we are keen to remove congestion and are evaluating other options to switch lorry loads onto rail.
We have run a trial using rail between our distribution hub and Coatbridge near Glasgow. This was successful and we plan to invest £3.2 million in a dedicated daily return train service which will run from summer 2006. The Scottish Executive has awarded a Freight Facilities Grant of £200,000 to our supplier to assist with the capital investment. The train will divert 4.5 million road miles onto rail, saving over 6,000 tonnes of CO2 emissions a year.
Biofuels We are the UK’s first major retailer to incorporate fuel made from plants – biofuel – into our standard petrol and diesel, with no price premium.
In May 2005 we introduced a 5% bioethanol mix into our standard unleaded petrol at 185 petrol stations at the same price as standard unleaded. A car driven with our bioethanol mix petrol fuel emits 4.5% less CO2.
After two years of selling GlobalDiesel, a branded biofuel with 5% added biodiesel from rapeseed, we are converting our standard diesel pumps to biodiesel. In January 2006 all 181 of our filling stations in the South East and North West England were converted to biodiesel.
We have a 25% stake in biofuel supplier Greenergy. Greenergy is investing in the UK’s largest single-line biodiesel plant, on the Humber estuary. It is scheduled to open in late 2006 with an annual production capacity of 100,000 tonnes. Greenergy plans to buy rapeseed for conversion to biodiesel from around 1,500 farmers contracted through Grainfarmers, a large agricultural cooperative in the UK.
Employee travel Since the beginning of 2003, green travel plans for staff have become an integral part of our new store and store extension development proposals. We are committed to reducing the number of employees coming to work by car, through initiatives like walking buddies and car sharing. Where employees take part in these schemes, we guarantee them a ride home in the event of emergencies. In June 2005 we worked with Liftshare to offer two green travel schemes for our office-based staff. Staff can share lifts by registering at our dedicated website and can take a bus between our main offices to help cut emissions and congestion. 269 staff joined this scheme in 2005/06 and we will encourage more to save mileage, money and CO2 emissions in 2006/07.
Water Our largest single use of water throughout our operations is in staff toilets. In 2005/06 we invested £500,000 in installing urinal controls and taps which automatically switch off, and over £800,000 in installing rainwater recovery systems. This helped us to reduce our water use from 3,426,100m3 to 3,161,811m3, a saving of 7.7% or 264,289m3.
