Climate change
Reaching net zero needs transformational change in how we grow, produce, and consume food. The scale of the challenge is unprecedented.
It's our responsibility to play our part in helping to avoid the most severe consequences of climate change. Urgent, collective action is required to meet global climate goals and move onto a zero-carbon pathway.
The bigger picture
30%
~ 3C
of global greenhouse gas emissions come from the food sector.1
of warming is expected by the end of the century if current trends continue.2
Our approach to meeting global climate goals
Reaching net zero will need action across our business and supply chains to support a shift in food production. It means improving our products, decarbonising our transport, reducing our store emissions, and eliminating waste. We've developed emissions reduction roadmaps for key hotspots and commodities in our supply chain alongside supporting our customers with changes they can make in their households, for example by encouraging more sustainable diets. Our Planet Plan outlines the steps we’re taking to reach net zero across our full value chain.
We aim to be carbon neutral in our Group operations by 2035 and net zero across our full value chain, aligned to a 1.5C trajectory, by 2050. In 2023, we became one of the first companies globally to have our Forests, Land and Agriculture (FLAG) and non-FLAG net zero target validated by the Science Based Targets Initiative (SBTi), a leading, globally renowned body that defines best practice for science-based climate targets.
In 2023/24, we achieved a 61% reduction of absolute emissions from our operations against a 2015 baseline, exceeding our 2025 target of 60%. We’ve done this by using energy and refrigeration more efficiently, and by adopting 100% renewable electricity across the Group.
Our targets, including stretching interim commitments can be found below.
Targets and commitments
| % baseline footprint | 2025 | FY2030 (voluntary) | Near-term FY2032 (SBTi) | FY2035 (voluntary) | Long-term FY2050 (SBTi) | ||
|---|---|---|---|---|---|---|---|
| Scopes 1 and 2 (2015 baseline) | 3% |  |
 |
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| Scope 3 (2019 baseline) | Non-FLAG (all other Scope 3 emissions in scope) | 57% |  |
 |
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| FLAG (Forests, land and Agriculture emissions) | 40% | No deforestation or conversion |  |
 |
Our net zero validated targets are based on the SBTi scope which excludes certain emissions like emissions from cooking the food purchased in our stores or consumers driving to our stores.
Note: FLAG = Emissions from Forests, Land and Agriculture.
% = % reduction.
Reducing emissions in our own operations
Scope 1 emissions are direct emissions created from our activities. These include the running of our delivery vans and larger distribution fleet, the heating, ventilation and air conditioning of our stores and offices and our refrigeration units. To reduce these emissions we have deployed 571 electric home delivery vans, introduced four electric lorries in our fleet, and started a trial of using low-carbon alternatives to gas boilers.
Reducing emissions from the electricity we use
Scope 2 emissions relate to the indirect emissions that come from the production of electricity or heat used from the grid that heat or power the buildings we own or occupy. In 2020, we achieved our goal of 100% renewable electricity across the Group, 10 years earlier than our original 2030 goal. We have achieved this through a combination of renewable energy certificates; investing in our own estate with the installation of solar panels and wind turbines at stores and distribution centres and through Power Purchase Agreements (PPAs) - long-term renewable energy contracts that support the green energy transition.
Reducing emissions across our value chain
Most of our total emissions (more than 98%) are generated in our supply chain and in our customers' homes. These are known as Scope 3 emissions. We are making the biggest impact by working with suppliers to improve production practices, offering sustainable choices to our customers, and working with the wider food industry and governments to change the food system.
Climate and finance
We launched the first of our sustainability-linked finance products in 2020, and our product suite now includes:
- A revolving Credit Facility refinanced in November 2022, with interest linked to the achievement of environmental targets
- Two sustainability-linked bonds, one launched in 2020 (€750 million) and another in 2021 (£400 million), linked to our scope 1 and 2 emissions reduction targets
- A sustainability-linked supply chain finance programme, which supports suppliers to implement climate best practice
We’ve also partnered with NatWest to provide financial support to farmers in our Tesco Sustainable Farming Groups for beef, lamb and dairy who are looking to invest in sustainable agriculture infrastructure, including wind turbines, solar panels, and heat pumps.
Looking ahead
We will continue the implementation of decarbonisation roadmaps and supply chain initiatives for emissions hotspots to support out interim net zero targets, as well as supporting suppliers in setting their own net zero targets.
A full description of our supply chain decarbonisation strategy will be included in our climate transition plan, which we will publish in line with recommendations of the Transition Plan Taskforce.
Our key milestones
We became the first business globally to set the ambition to become net zero across Group operations by 2050.
We were the first FTSE 100 company to set science-based targets for both own operations and supply chain in line with the Paris Agreement's 1.5C pathway.
Announced a project to source renewable electricity directly from wind farms and, solar farms via Power Purchase Agreements, as well as installing solar panels and wind turbines at our own sites.
Signed up to the Clean Van Commitment supporting the switch to low- emission vans.
Began roll-out of electric vehicle charging points for our UK customers in partnership with Volkswagen and Pod Point.
Launched our first sustainability-linked bond linked to the achievement of our Scope 1 & and 2 emission reduction targets.
Announced our updated ambition to reach Net Zero by 2050 target across Scopes 1, 2 and 3, aligned with a 1.5C pathway.
Introduced the UK's first commercial electric HGVs, building on pilot projects in Hungary and the Czech Republic.
One of the first companies globally to have our Forests, Land and Agriculture (FLAG) and non-FLAG net zero target validated by the Science Based Targets Initiative (SBTi).
In February 2024, our latest windfarm, in partnership with EDF Renewables UK, located in the Scottish Highlands, started generating renewable electricity. It will generate 30MW, producing enough clean energy to power 18,000 homes per year.
