Tesco

Tesco has completed TCFD scenario analysis for five different warming scenarios including a 1.5C pathway. The company considers four primary risks to the company: policy, consumer market, technology, and raw material risk. Under consumer market risk, Tesco's scenario analysis has included changing consumer preferences away from unsustainable products as a risk and has recognised the demand for plant-based products as an opportunity. Tesco plans to grow its plant-based product offering in recognition of this opportunity. Under raw material risk, Tesco has included impacts of temperature rises on key agricultural commodities and is responding by working to decarbonise its FLAG emissions, which includes its animal protein supply chains.

Tesco has not disclosed a breakdown of its emissions from animal agriculture. However, the company does discloses that its FLAG emissions make up 39% of its entire emissions footprint.

In 2023, Tesco's 1.5C aligned Scope 3 emissions reduction target was approved by the SBTi. The target includes reducing industrial Scope 3 emissions by 55% and FLAG emissions by 39% by 2032 from a 2019 baseline year. The company aims to become net zero by 2050.

Tesco has quantified the unmitigated financial risk of changing consumer preferences to sustainable purchasing decisions, including protein diversification, under both a 3C and 1.5C pathway. Under a 1.5C pathway, the unmitigated financial impact of changing consumer preferences to sustainable options is £50-100M, however, it is unclear how much of this financial impact is attributed to decreased demand for animal protein. Under a 3C scenario, the company has found shifting consumer preferences towards sustainable options as not material to its business.

The company discloses its target to increase sales of plant-based meat alternatives by 300% by December 2025 in the UK, Republic of Ireland (ROI), and Central Europe (CE) regions. However, this target has not been included in the company's climate transition plan.

The target is timebound to 2025.

Tesco's protein diversification target covers the UK, ROI and CE, which are the company's food retail geographies.

There is no evidence that this target is aligned with recognised climate and health guidelines for dietary transition.

Tesco's current progress towards its protein diversification target is 109%.

Tesco has disclosed annual sales progress against its protein diversification target since FY 2020/21. Its sales have been 96% in 2020/21, 130% in 2021/22, 119% 2022/23, and 109% in 2023/24.

Tesco's board reviews progress against the company's climate targets twice a year, which include the company's commitment to increase a shift to more sustainable and healthy diets including plant-based foods. Tesco reports annual progress against its protein diversification target in its healthy, sustainable diets factsheet, suggesting that the company's board has regular oversight of the company's progress to this target.

33.33% of Tesco's board disclosed they have sustainability experience.

It is unclear from the company's disclosure if its board has expertise in nutrition and health.

Tesco has disclosed lobbying on the following five policies: decarbonisation of the UK electricity grid, Gasrec, Modern Transport Bill, UK Government Energy Policy, and mandatory food waste reporting policies.

Tesco has disclosed lobbying on actions related to positive climate outcomes for its food business through its work with policymakers on developing mandatory food waste reporting policies. The company has not disclosed lobbying on activities in relation to creating positive nutrition outcomes for the food system.

Tesco has disclosed evidence of membership and partnership to fifteen different organisations: the Consumer Goods Forum (CGF), Aldersgate Group, Open Farm Sunday (LEAF), Retailer's Palm Oil Group, Sustainable Seafood Colalition (SSC), Climate Group RE100, Round Table on Responsible Soy Association (RTRS), the World Cocoa Foundation, Bite Back, IGD: Industry Nutrition Forum, Food Data Transparency Partnership, Helping you to live healthier, British Nutrition Foundation, The Food Foundation, and Natasha's Allergy Research Foundation.

Tesco has disclosed that the lobbying of affiliate organisations focuses on reducing climate impacts and promoting positive nutrition outcomes. The climate lobbying of the company's affiliate organisations includes increasing the sustainability of the company's supply chains such as cocoa, palm oil, seafood and farm-level activities. The nutrition lobbying of the company's affiliate organisations includes tackling obesity, encouraging healthy lifestyles through diet, and food data transparency.

The company has not committed to Just Transition principles.

Tesco has provided a high-level statement that the company is reskilling and upskilling its workforce to meet the demands of its current job and emerging jobs in the future. However, it is unclear if these reskilling and upskilling efforts relate to workers affected by its decarbonisation efforts.

Tesco is supporting its suppliers, including its animal protein suppliers, to decarbonise through its Sustainable Farming Group, Future Farmers Programme, Nature Programme, collaboration with Adams University’s School of Sustainable Food and Farming, and partnerships with NatWest and Santander. The company has disclosed the following examples of supporting its suppliers decarbonise: trialling waste to fertilisers on 1,300 hectares of land; a 9-month training course on sustainable agriculture practices; supporting small-scale farmers with resources to comply with the company’s climate requirements; and financing beef, dairy, and lamb farmers to transition to sustainable energy use on-farm. Through the Future Farmers programme, the company has invested £39m into its British beef and lamb farmers to transition to more sustainable practices.

The company does not currently have a Just Tansition strategy.

Tesco does not have a Just Transition strategy, however, the company's sustainable finance scheme to support its beef, dairy and lamb farmers in transitioning to sustainable on-farm energy use was developed in response to research conducted by Tesco Sustainable Farming Group. This research highlighted that 50% of the company’s suppliers wanted to improve sustainability practices, but needed financial support to do so.

There is no evidence for this KPI.

There is no evidence for this KPI.

Tesco has provided evidence of allocating resources to expand its offering of alternative protein sources through increasing its own brand offering, launching external brand products, through third-party partnerships, and having dedicated personnel who are focused on plant-based innovation. Under its own-brands, Tesco has launched its new plant-based Root and Soul range in collaboration with Coley Porter Bell. The company has also expanded its Plant Chef range with five new products in the chilled category and five new products in the frozen category, and has also launched its new Bites Better snacking range. Tesco has launched the external brand Juicy Marbles and expanded the availability of Wicked Kitchen to Booker and Booker retail partners. The company has disclosed that its plant-based food development and innovation is now being led by Product Director, Breige Donaghy and has disclosed that it is partnering with suppliers Bakkavor and Samworth to increase its offering in its plant-based product category.

Tesco does not report evidence of resource allocation towards expanding its alternative protein source portfolio on an annual basis. However, the company does report quantitative evidence of resource allocation. For example, the company has disclosed that its Plant-Chef range has been growing since 2019, now having 180+ items.

Tesco is trialing the use of fava beans in a number of product categories as an alternative to pea and soya protein and is measuring the environmental impact across all its own label ranges through its partnership with MONDRA. Tesco also disclosed that it has partnered with the WWF, Agri T-Jam, The Food Foundation and the Food Data Transparency Partnership, to explore how it can make its products more sustainable, however, it is unclear to what extent this covers the company's alternative protein source categories. Tesco has not disclosed evidence of resource allocation to improve the nutritional attributes of alternative protein source products.

Tesco is actively reformulating its products to improve their nutrition by adding positive nutrients such as fortifying foods, increasing vegetable content and removing nutrients of concern, such as salt and sugar. For example, Tesco is working to increase the vegetable content in its ready meals, such as its Plant Chef Meat Free Spaghetti Bolognese, so that they include at least "one of your five a day", and has reduced 69 tonnes of sugar, 6.3 tonnes of salt, and 348 calories in its own-brand baked beans in tomato sauce.

Tesco is increasing the proportion of vegetable content within its ready meals, however, without the explicit mention that this replacement results in a decrease in animal protein content it is unclear if this improves the sustainability attributes.

Tesco has developed the Better Basket campaign to nudge consumers towards eating sustainable and healthy diets, including increased consumption of plant-based foods. This marketing strategy includes celebrity endorsement from Jamie Oliver and price promotions, and will be delivered through various platforms including, TV, print, social media and online.

Tesco's Better Basket campaign, which includes efforts to increase the consumption of plant-based food, covers Tesco's primary market in the UK, with the aim of halving the impact of the average UK shopping basket.

Tesco has demonstrated evidence of promoting the nutritional attributes of alternative protein sources on Facebook, its website, and stores through its Better Basket campaign. Through these platforms, the company is promoting certain plant-based products as low calorie, high in protein, part of your five a day, low in HFSS and approved by nutritionists as healthy eating options. Although the company has introduced a traffic light system to provide clear information on the nutrition of its Booker retail products, it is unclear how many plant-based products are covered by this system.

Tesco promotes the sustainability of its products through its Better Basket campaign, including explicit messaging that the company's plant-based range is better for the planet. Tesco has used this messaging for over 800 hundred products online and in-store. An example of a product covered by this messaging its the company's Meat & Veg range which is marketed as lower carbon compared to its meat product equivalents.

Tesco has been monitoring consumer demand around specific meat-free ingredients, and has also conducted consumer surveys around plant-based food trends. The company has seen that consumers are moving towards cooking from scratch and as a result there has been an increase in demand for the following plant-based alternatives: fish alternatives by 100%, tofu and tempeh by approximately 20%, plant-based steaks and chicken breasts by 20%, and meat-free burgers by 10%. Some findings from Tesco's consumer surveys include 47% of consumers who are looking to eat more plant-based are doing this by introducing more vegetables to their plate, with 22% saying this was because they wanted to save money, and 25% saying this was for environmental reasons.

Tesco, to deliver on its Better Basket campaign which includes an explicit mention of marketing plant-based proteins, is trailing and testing Better Basket Zones in its large stores which the company has found successful. The company has also been testing specific signs and targeted promotions around healthy eating options, and is using Clubcard data to understand opportunities the company can leverage to help consumers make healthy changes.