Tesco

Tesco has conducted TCFD-aligned scenario analysis across five warming pathways, including a 1.5°C scenario, for key commodities including most animal protein categories. The analysis assesses four key risks: policy, consumer market shifts, technological change, and raw material supply. As part of the consumer market risk assessment, Tesco acknowledges the opportunity for growth of plant-based and meat alternative categories by responding to shifting consumer preferences towards more sustainable products.

The company has not reported a full breakdown of its Scope 3 emissions from animal agriculture or by protein type. However, it reports that agriculture is the single biggest contributor to its end-to-end value chain emissions at 39%.

Tesco has a 1.5°C-aligned, SBTi-approved Scope 3 target that includes emissions from animal agriculture, in line with SBTi FLAG guidance. The company aims to reduce FLAG emissions by 39.4% by 2032 and 72% by 2050 from a 2019 base year.

Tesco has quantified the unmitigated financial risk associated with changing consumer preferences towards more sustainable purchasing under both 3°C and 1.5°C pathways. Under the 1.5°C scenario, this risk is estimated at £50–100 million, although the portion attributable to societal shifts away from animal protein and increased demand for more sustainable, diversified protein sources is unclear. In contrast, under the 3°C scenario, the financial impact of shifting consumer preferences towards sustainable options is not considered material to Tesco's business, given the company's ability to adapt its product portfolio according to shifting consumer preferences for plant-based and alternative protein sources.

The company has set a healthy, sustainable diets target to increase sales of plant-based meat alternatives in its UK, Republic Of Ireland and Central European markets by 300% by December 2025. However, this goal is not reflected in the company's climate transition plan.

The company's target to increase sales of plant-based meat alternatives is timebound to 2025.

Tesco’s protein diversification target applies to its entire food retail markets in the UK, Republic of Ireland, and Central Europe.

In the context of its protein diversification target, the company acknowledges that eating more plant-based proteins is recommended by the NHS Eatwell Guide for healthy, nutritious diets, however, there is no evidence that the company's target is aligned with recognised climate guidelines.

Tesco discloses progress towards its protein diversification target, reporting 94% in the UK for 2024/25.

Tesco has reported annual progress towards its protein diversification target since 2020/21, with sales peaking at 130% in 2021/22. While the company is not on track to meet its target in the UK, it reported in 2023/24 that it exceeded its target to increase sales of plant-based meat alternatives by 300% in Central Europe for the second year in a row.

Tesco includes ESG measures in its Performance Share Plan, with 8.5% linked to carbon reduction in line with the company's commitment to be carbon neutral in its own operation by 2035, however, there is no explicit mention of Scope 3 emissions reduction or protein diversification.

The company discloses that 40% of its board members have expertise in sustainability.

There is no evidence that the company's board holds expertise in healthy diets or nutrition.

Tesco provides examples of its policy engagement activities in its largest UK market, such as participation in the Food Data Transparency Partnership to develop reportable health metrics, Forest Risk Commodities Legislation and Future of Net Zero, however, the company does not disclose a list of its policy positions. In its secondary European market, the company reports engaging on policies related to corporate sustainability reporting and the EU Deforestation Regulation.

Tesco provides examples of its policy engagement activities aligned with positive climate outcomes, such as on food waste, the future of net zero in the UK, EU deforestation regulation and circular economy. Tesco also discloses participation in the Food Data Transparency Partnership to improve the environmental sustainability and healthiness of food and drink through better food data.

The company does not disclose a full list of its indirect lobbying activities but has mentioned in different areas of its disclosure membership and partnership organisations, such as the Roundtable on Responsible Soy Association, Open Farm Sunday (LEAF), Sustainable Seafood Coalition, WWF Retailer Commitment for Nature and Consumer Goods Forum.

Tesco discloses that its indirect membership associations are aligned with positive climate outcomes, such as through the Retailer's Palm Oil Group to engage members' supply chains to uptake sustainable palm oil, however, the company does not assess alignment of its membership associations with positive nutrition outcomes.

The company has not committed to Just Transition principles.

Tesco supports a Future Farming Programme in partnership with Harper Adams University's School of Sustainable Food and Farming to upskill British farmers in sustainable agriculture. However, the company has not made a commitment to retain, reskill, redeploy or compensate animal agricultural workers affected by its emissions reduction efforts.

In the transition to more sustainable farming, Tesco requires all global producers supplying its UK business to achieve LEAF Marque Certification by the end of 2025. Tesco supports sustainable agriculture through its Sustainable Farming Groups for milk, cheese, beef, lamb, pig and potato farmers, who benefit from fair and transparent pricing structures, long-term contracts, improved farm-level data gathering and financial incentives to adopt sustainable practices across key supply chains. In 2024/25, Tesco paid £2.64 million in bonuses to its Sustainable Beef Group farmers and over £10 million above market rates to its Sustainable Dairy Group. Climate finance also became accessible to Tesco's Sustainable Farming Group members through NatWest bank. Other recent initiatives include launching the Future Dairy Partnership between 400 of Tesco's Sustainable Dairy Group farmers and UK suppliers Arla and Müller, and two low-carbon research farms to trial solutions.

The company does not have a Just Transition strategy.

Tesco does not have a formal Just Transition strategy; however, the company worked with NatWest bank to enable access to climate finance for members of its sustainable beef, dairy, and lamb groups to shift to more sustainable practices, including on-farm renewable energy use. The scheme was designed with farmers' input and was created in response to research by the Tesco Sustainable Farming Group, which showed that 50% of the company’s suppliers wanted to enhance their sustainability practices but required financial assistance to do so.

The company does not have a just transition strategy and so does not disclose progress on associated KPIs.

The company does not have a just transition strategy and so does not disclose progress on associated KPIs.

Tesco launched both external and own brand plant-based products in its largest UK market in the past year. These include 10 festive products under own Tesco Finest and Plant Chef brands, external Veg’chop by Oh So Wholesome in 649 stores, Juicy Marbles Pork-ish in over 500 stores, Potina oat drinks for children aged 3 and above in 400 stores, Ombar Blonde plant-based chocolate in Tesco Extra stores, Fry’s Shape & Sizzle Mince, Planted’s fermented steak, Beyond Meat’s Smash burgers in over 500 locations, and Thanks Plants pots in Tesco Ireland.

There is no evidence that Tesco has allocated resource to improve the performance of alternative protein products in the past year.

Tesco does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. Although the company seeks to increase the proportion of healthy products in consumers' baskets, including nutritious plant-based foods like beans and legumes, and recent product launches have included healthier options, such as Juicy Marbles' Pork-ish which has Nutri-Score A, Tesco has not set a minimum health and nutrition threshold for products. The company has voluntarily reported the proportion of its food sales in the UK and Ireland classified as ''healthy'' under the UK Government’s Nutrient Profiling Model annually since 2021/22, reaching 64% in 2024/25, and advocates for the UK government to mandate healthy sales reporting, although it is unclear if the company has set a target for healthy sales.

Tesco evidences reformulation of alternative protein products to improve nutritional attributes. The company reformulated its Plant Chef Meat-Free Spaghetti Bolognese this year to improve nutrition by adding lentils to boost fibre content and deliver two of the UK's recommended five-a-day, alongside providing a source of protein.

There is no evidence that Tesco is reformulating alternative protein products to improve sustainability attributes. Although the company continues to promote its Meat & Veg blended product range that previously launched as part of the company's commitment to reduce the environmental impact of consumer's baskets, there is no new evidence of alternative protein products reformulated with improved sustainability attributes in the past year. The company's Plant Chef Meat-Free Spaghetti Bolognese reformulated with lentils for nutritiion may have also improved sustainability, however, this is not reported by the company.

Tesco has committed to marketing and merchandising strategies related to alternative proteins in its largest UK market. The company aims to halve the environmental impact of the UK's average consumer basket, and promotes healthier, more sustainable choices, including plant-based options and its Meat & Veg blended product range, through the "Better Baskets" campaign. This campaign features in-store signposting and the Better Buy online hub to highlight applicable products.

Tesco is marketing and merchandising alternative protein products in its largest UK market through loyalty Clubcard offers and promotional discount bundles on dairy alternative and chilled vegetarian and vegan product ranges. The company's "Better Baskets" campaign in-store and online promotes plant-based options and healthier choices. In-store zones signpost plant-based options and the online Better Buy hub encourages customers to consider healthier options through suggestions, including alternative sources of protein and ''flexitarian essentials''. Additionally, partnerships with influencers on social media promote sustainable, healthy plant-based protein options and recipes including beans and lentils. As a result of the campaign, volumes of ''Better Baskets'' product sales increased by 12% in 2023.

Tesco is working to ensure its alternative protein source products are accessible and affordable in its largest UK market. The company pledged to focus on affordability, innovation, visibility, and availability of alternative protein sources when setting its protein diversification target. This includes a strategic focus on affordability across healthy and sustainable foods, including plant-based options, supported by initiatives like Aldi Price Match, Clubcard Prices, and Fresh 5 offers. The company replaced over 50 everyday items in Express stores with alternatives that are around 40% cheaper and expanded discounts and price locks across thousands of products, including plant-based lines. Additionally, the company has trialled ways to increase access to plant-based products, such as placing plant-based options alongside meat and dairy lines in store and launching its Root & Soul plant-based range as an easy to prepare option.

Tesco has conducted consumer research investigating trends within the alternative protein sources sector. The company uses surveys and sales data to align its product offerings with evolving consumer preferences, and has monitored consumer demand for specific ingredients and trends within the plant-based food sector. The company finds rising volume demand for meat-free ingredients and whole cuts, such as fish alternatives, tofu, tempeh, plant-based steaks, chicken breasts and meat-free burgers. The company's research identifies that 47% of consumers are incorporating more vegetables into their diets, with motivations including health (82%), environmental concerns (25%), and cost savings (22%). This finding informed Tesco's strategic shift towards integrating more plant-based whole foods, such as lentils, chickpeas, tofu, and vegetable-led dishes, which now constitute 40% of its plant-based sales.

Tesco has used consumer research relating to healthy diets to inform its marketing and merchandising strategy for alternative protein sources. The company identifies health and wellness as a growing trend in the UK market, with 82% of the company's surveyed consumers incorporating more vegetables into their diets due to health motivations. The company also sees ‘protein diversity’ and 'plant-forward eating' as trends, responding to these by adapting its plant-based product portfolio to include more nutritious plant-based whole foods such as lentils, chickpeas, beans, nuts, seeds and tofu, recognising that 'ultra-processed foods' are a concern to consumers at present.