Key Performance Indicators for 2009
We set targets for each objective in the Community segment of the Steering Wheel and use Key Performance Indicators (KPIs) to measure our progress.
The Board of Directors reviews performance quarterly and our top 2,000 managers receive a summary report to communicate to their teams. We review our KPIs annually to ensure they are still accurate and robust measurements of our performance. Our KPIs for 2009 are set out in this table.
These highlight specific areas on which we will focus, and against which our performance will be measured throughout the coming year, though there are of course many other areas where we will continue to work to improve our performance, as highlighted throughout this Report.
Developing our KPIs
Since we first developed Community KPIs in the UK in 2007, we have been working to roll them out across the Tesco Group. In 2008 we introduced some Group-wide KPIs in addition to our UK KPIs so we could measure the success of our newly established Community Plans.
Now that we have Community Plans in every country in which we operate, with clear goals set out in our Community Promises, we have set Group KPIs so we can track progress year-on-year.
In 2009 all countries will be working to deliver Group targets that reflect our five Community Promises. Our new KPIs fully reflect our business across the world and demonstrate the importance we attach to being a responsible business wherever we operate.
In addition to these 12 KPIs, each country has country-specific KPIs, which reflect projects that are important to their local communities. These are highlighted in the ‘targets’ sections throughout this Report.
| KPI | Target 2008 |
Actual performance |
Target 2009 |
Comment |
|---|---|---|---|---|
| Reduce CO2 emissions from existing stores and distribution centres by at least 50% by 2020 against a baseline of 2006. Annual target reported as percentage reduction against previous year | 5% | 7% | 5.5% | This target is measured against a baseline of our
stores and distribution floor space in 2006, i.e. emissions from
extensions and new space are excluded to provide an accurate
comparison. It excludes emissions from refrigerant gases because we
are still developing a consistent strategy for reducing
refrigerants across the Group: we are working hard to do this as
quickly as possible. See Climate change |
| Reduce CO2 emissions from new stores by 50% by 2020 against a baseline of 2006 | Develop an environmental format | New store format developed 20.5% reduction versus 2006 | 25% | We have already made strong progress towards our
KPI on reducing the carbon emissions of new stores across the
Group, achieving a 20.5% reduction this year and our stretching
target will help us to continue this progress over the coming
year. See Environmental stores section |
| Reduce by 50% the amount of CO2 used in our distribution network to deliver a case of goods by 2012 against a baseline of 2006. Annual target reported as percentage reduction against previous year | 10% in the UK | 9.2% in the UK | 10% across the Group | Improved double-deck utilisation and revised
delivery frequency to stores helped us to continue to lower CO2
emissions per case delivered. This year we have extended the target
across the Group. See Distribution Section |
| Percentage of store waste recycled | 80% in the UK |
85% in the UK |
95% in the UK |
Due to significantly different recycling systems
across the countries where we operate, it is difficult for us to measure waste recycled across the Group. Our 2009 target reflects our work in the UK. We are working to develop a more meaningful Group-wide target. See Waste, Packaging and Recycling Section |
| Staff and customer fund-raising (£) | £2.73m | £8.2m | £5m | This year’s performance was helped by the UK
raising £6.2m. Next year’s target reflects the fact that customers may donate less in the coming year because of the economic downturn but is almost double this year’s target. See Charity of the year section. |
| Donate at least 1% of pre–tax profits to charities and good causes | 1% | 1.9% | 1% | This year we donated £57m to charities and
good causes, equivalent to 1.9% of pre-tax profits. Please see making a difference section |
| Helping customers live
healthy lives Staff and customers active (millions of people) |
3.5m | 4,659,310 | 5.3m | We exceeded our target to get 3.5m people active
in 2008, with a particularly strong performance in Thailand. See Promoting active lifestyles |
| Helping customers choose healthy food (number of promotions) | N/A | New | 110 | We have introduced a new target for the number of
promotions with key messages about health to raise awareness and
provide customers with information. Please see promotions section. |
| Increase the number of eligible own-brand lines with nutritional or front-of-pack GDA labelling (% of total number of eligible brands) | 78% | 92% | 99% | We have exceeded our Group target with 92% of
eligible lines labelled. We reached 100% in all countries except
the Czech Republic, Hungary and Slovakia where we plan to reach
100% in the first quarter of 2009/10, and South Korea where GDA
labelling is on the 2009/10 Community Plan with an aim to reach 95%
by the end of the year. See our nutritional labelling policy |
| Supplier Viewpoint Average score (% of scores that are favourable) |
N/A | 68% | 70% | We have introduced a KPI to grow the response rate
from suppliers whilst maintaining their average score. See supplier relations |
| Response rate of suppliers (%) | N/A | 37% | 45% | |
| Staff being trained for their next job | N/A | New | 10% | We have introduced a KPI to measure the number of
Tesco staff around the world being trained for their next job, for
example through our Options programme. See people section |
