Environmental Sustainability Records of Tesco - Statistics Project Example

Environmentally sustainable business Introduction: The Company whose environmental sustainability records are being examined in this paper is Tesco, UK. It is known that Tesco UK, is one of the largest consumer retail super markets in the UK and in terms of turnover, Tesco Plc is the third largest retailer in the world. The group has around 4331stores and employs around 470,000 people worldwide. Thus, it is quite important, being a major global player in the consumer industry, Tesco has a major responsibility in the area of corporate responsibility, not only to the world community, but also in terms of safeguarding the environment and ensure hazard free and environmentally friendly operations. (Corporate responsibility report, 2009). Tesco has, over the years, build its reputation on the trust and confidence, the consuming public have placed on them including the safeguarding of environmental health and ushering in an environmentally friendly policies and procedures. (Climate change, 2008). The major environmental areas in which Tesco Plc. need to consider the following: Impacts of climate changes Traditions to be maintained with regard to vendors and ethics The need for a greener revolution Norms regarding wastes, packaging and Recycling Sustainability and nurturing the land Towards seeking and attaining these goals, the company has drawn up ambitious targets’ which are envisaged as follows: In terms of reducing the carbon footprints of the premises, it is envisaged to reduce carbon footprints by 50% by the next decade. Next ensure that by the end of the next decade, new premises release 50% less carbon dioxide. Finally, to classify the total direct carbon footprint of this company in all the countries wherein Tesco operates. According to the Carbon Trust, consumers make up whether covertly or overtly nearly 60% of the carbon outflows of developed countries Every 7 days nearly over 30m people buy items from our stores on a global basis. It is necessary that these customers seek help to reduce their impact on environment by using recycled packages and reuse the bags in order to conserve and safeguard environmental health and reduce their carbon footmarks.(Carbon labelling, 2009). Another aspect that needs to be kept in mind is the effects of Green Club card points which are used for redeeming environmental aspects. Way back in 2007, Tesco initiated a £100 million Sustainable Technology Fund to render assistance to massive carbon reduction technologies in stores, DCs and global supply chains. In the UK, it is encouraging to note that energy use has cut down by 50% from 2000 levels and through large scale investments of around £60 million, major breakthroughs in energy-saving and low-carbon technologies are supposed to be reached quite soon. This would complement Tesco’s efforts to use environmental management systems through performance measures to introduce and maintain a high level of carbon less environment and also take concrete measures to usher in a greener working environment free of major health and environment hazards caused by wanton and unethical disregard for environmental protection. The efforts taken by Tesco does serve as a pointer that the company does seem to have been taking steps for reducing carbon footprints and ensuring a more safer and healthier environmental friendly approach to business. “We have sought alternative, greener methods of transport, using the Manchester canal to ship wines and spirits and moving significant volumes of goods by train - the Tesco Train - between Daventry and Livingston. We have also increased the use of Double Deck trailers, which carry more goods per trip, to 200 trips per day.” (Tesco- Reducing carbon emissions in distribution, 2008). The principles of resource savings (The 5 R’s) to its supply chain operations and marketing are Reduce Reuse, restore, recycle and recover. It is now proposed to use this in the context of Tesco’s supply chain, operations and marketing. Reduce: The first aspect that is being taken up is that of reducing the impact of carbon footprints, and this has been achieved reasonably well. “We decided to sell biofuels in 2005 as we believed that they could help customers reduce their carbon footprint and decrease our use of fossil fuels. Since then, EU legislation has made 5% biofuel obligatory in regular fuels.” (Biofuels, 2009). Reuse: The management of Tesco has always been reiterating that customers reuse their shopping bags and other shopping carry bags to save and conserve such items over long periods of time. Besides, large scale junk piling of plastic and paper junk could be detrimental to public health. “We offer customers one point for every bag saved; over 9.5 million Clubcard customers have benefited. Our customers are now using 50% fewer carrier bags than they did before we introduced the reward. This is in line with our commitment along with six other retailers to reduce the number of single use carrier bags by 50% between May 2006 and May 2009.” (Corporate responsibility report, 2009, p.15). “Since launching green Clubcard points in the UK in August 2006 to reward customers who reuse their bags, they have helped us to save over three billion carrier bags. We offer customers one point for every bag saved; over 9.5 million Clubcard customers have benefited.” (Recycling: Cutting carrier bag use, 2009, p.15). Restore: Perhaps one of the major sustainability in the case of consumer food industry has been the restoration of environmental hazards and levels of population. This is especially so in the case of large, multiproduct companies like Tesco, UK with large affluent and wastages. It is necessary that Tesco acts responsively in terms of a robust and effective waste management program and restores the pristine environmentally friendliness in places where they have outlets and stores, anywhere in the globe. Besides, there is also need to produce yearly sustainability reports in which the company details all the plans, programs and procedures that need to be carried out and which need to be resolved. This could be with regard to training employees on environmental sustainability, water conservation and reuse, disposal of wastes and effluents, energy conservation and restoration of hygiene and cleanliness in its retail outlets throughout the world and so on. Recycle: Most large and medium size companies have begun to understand the value of recycling wastes and effluents for productive and cost benefit uses. Tesco has also assumed leadership status in this business. “The UK we have recycling centres in 600 of our larger stores. Last year we helped customers to recycle approximately 200,000 tonnes, saving the equivalent of over one million bin bags of recyclable material from being thrown away. We have also installed 64 state-of-the-art automated recycling machines across the country. These machines are a one-stop shop for recycling, accepting everything from carrier bags and plastic to glass and metal, making recycling quick, easy and convenient for customers.” (Recycling, 2009). Recover: Through use of more prudent, cost conscious, effective and efficient waste management and environmentally sustainable products it is believed that costs could be recovered and also lesser wastages, damages and transit losses could be sustained. This could lead to better overhead recoveries and better profits for the business. Tesco is fully geared up to meet future challenges and threats in the sustainability of its business from an environmental perspective. Being a large profit-motivated organisation operating for many years in the UK and various other global destinations, it is fully aware of the environmental hazards and the need to have proper safeguards in place that could tackle these issues from time to time. For this reasons the role and responsibility of environmental management has been decentralised and powers and privileges conferred to line managers and officers to undertake various missions regarding protection and safeguarding of environment and its various impacts. Sustainability issues: The Company has taken concrete steps to reduce carbon footsteps and create a more environmentally friendly product llines. Besides, it is also committed to managing the effects of climate change and emissions of CO2 in to the earth’s environment. Besides, the company also feels the need for greater green sustainability and create better opportunities for the future. Group emissions by source for 2008/9 Grid electricity 62% Refrigerant 20% Diesel/oil 11% Natural gas/LPG 6% Business travel 1% (Our direct carbon footprint, 2009). The main aspects that need attention of the top management of Tesco would be in terms of better interaction with customers and clients and create conducive atmosphere for better business. There are elements of the need for larger companies to create situations for sustaining greenery in the environment and Tesco for one, feels the responsibility for better management of business through greater efforts on its part, besides taking part in local, domestic, national and global efforts for reducing threats to environment in the form of global warming, deforestation, waste management and others. 2008/09 emissions Percentage change since 2007/08 Percentage change since 2006/07 Total Direct Carbon footprint over 52 weeks 4.92 mtCO2e +3.7% +12.5% Total Direct Carbon footprint over 53 weeks 5.02 mtCO2e +5.7% +14.7% Carbon intensity / net sales area 55.1 kgCO2e/ft2 -10.9% -16.2% Existing stores and distribution centres: energy consumption for fixed floor area (excluding refrigerant) 32.0 kgCO2e/ft2 -9.1% -12.6% New stores: average emissions 34.8kgCO2e/ft2 -10.5% -20.8% Distribution emissions per case delivered 0.17 kgCO2e/case delivered -3.6% -11.5% mtCO2e = million tonnes of carbon dioxide equivalent kgCO2e/ft2 = kilograms of carbon dioxide equivalent per square foot of floor area (Our direct carbon footprint, 2009). Steps taking by Tesco towards effective waste management: This company believes in 100% recycling of waste and has set up an enviable program for its long term sustenance. Besides it is committed to safe and viable planning and execution of a robust waste management system on a global basis. Tesco has understood the fact that there needs to be a strong and robust management that could address various issues connected with TESCO and its subsidiaries units and is working determinedly towards reaching its targets in terms of sustainability deliverance not only to its clients and shareholders but also to the public community of which it forms a formidable part. There are various factors that determine and impinge upon environmental sustainability, and Tesco is fully aware of these, thus resulting in better environment protection and safeguards. “We aim to set an example by minimising the waste we produce and diverting 95% of the waste we do produce away from landfill. We continue to work with recycling providers to find new ways to recycle waste from our operations.” (Corporate responsibility report, 2009). Safeguarding the environment: Tecso’s concern for environmental protection and safeguard are phenomenal. There are strong reasons to believe that with the resources at the disposal of this giant retail outlet operating in UK and Ireland, much more needs to be done, moreso, in the context of increasing threats on the environment in terms of global warming, waste management and indiscriminate ecological usuage. There are major threats in the form of sea land erosion and not enough landfills that could accommodate wastes, thus resulting in compromising health and safety of humans and other living creatures through wanton disposal of industrial and commercial wastes. Tesco, for one, is committed to the harnessing of waste for productive use and this is reflected in the excellent programs that have been developed for the aid of business. Tesco’s efforts to reduce weight and increase transportation advantages: Coming to another important aspect of packaging it is seen that packaging is important because “In some countries, the lack of packaging or inadequate packaging in distribution causes up to 50% of all food to decay before it reaches the consumer. In the UK, where food is more efficiently packed, only 3% of the food produced fails to reach the consumer, mainly due to better packaging. (Corporate responsibility report, 2009, p.14). Tesco is making all round efforts to reduce the weight of the final product in order to make it safe and convenient for all. To a very large measure it has also been able to attain this end, since logistics and worldwide movement of goods necessitates that the final bulk contains as less weight as possible for economic and logistic considerations. Bulky and weightier goods are also risky from the safety point of view that could increase the chances of transportation accidents and eventualities. Carrying lower weights not only reduces costs but also creates and sustains a better logistics and goods movements, besides using more fuel efficient and pollution free modes of transportation does reduce the impact on the environment. The efficacy of a sound and robust environmental and sustainability policy has, at its roots, the inexonerable need for protecting and preserving the environment that has sustained us for so long. It is also in consideration of not allowing undesirable practices that underscores a callous and perhaps wanton destruction of natural laws that underpin human living on this planet. Civilizations have come and go on this planet but the question of environmental risks and hazards have occurred only during the last century or so. Perhaps it could be because the end point of man’s ravages on earth has reached a breaking point or that nature herself has now turned against mankind and his predatory peregrinations. (Managing corporate responsibility, 2008). Perhaps the main reason for the economic and growth sustainability of TESCO lies in the treatment of all people with whom it comes across. The set of underlying principles that goads the workforce of Tesco in its day-to-day operations sets the positive note for major achievements of this company. And for the right reasons too. The underlining principle would be treating people the way they want to be treated and also taking good care of their shopping needs. High quality products at rock bottom prices are what has endeared Tesco to the global consuming community and shall continue to do so for a long time to come. It is the endearing spirit that has contributed to lot to the success story of Tesco sustainability in the face of strong competition both organic and inorganic. But this cannot be done without paying proper attention to the environment that nourishes and sustains Tesco’s operations not only in the United Kingdom, but also in all other parts of the globe where it conducts retail operations and business. But if Tesco needs to move ahead of its times, it needs to work in peace with its environment in terms of preserving water and other natural resources, community needs and aspirations, waste management, attend to issues arising out of global warming and in the effect of greenhouse gases, reduce Co2 emissions in its logistics and transportation business and attend effectively to all aspects that directly and indirectly affect s its connectivity with the environment and the surroundings. (Measuring our carbon footprint, n.d.). Conclusions: It could be undoubtedly said that Tesco’s sustainability record, when compared to other food and consumer retailers, may be marginally better and well sustained. This is because it works in a concerted and well planned manner, drawing upon the experience of a well trained and efficient work force who are committed to preserve and promote the Tesco legacy. Perhaps one of the most useful contributions toward environment sustainability at Tesco is in terms of the resolve to reduce carbon footprints in the business of Tesco.”Since their launch in April 2008, we have put carbon footprint labels on 114 Tesco products. Labels can be found on products in the following categories: orange juice, washing detergents, light bulbs, potatoes and milk.“ (Carbon footprints and labelling, 2010). Through the use of carbon footprint labels, it is possible to monitor the quantum of Co2 emissions that have occurred during the manufacture of the said products and ways and means by which these could be reduced in later years. Besides, it is also possible increase the number of products or product groups that would be coming within the list of items whose carbon footprints need to be reduced to obviate environmental hazards. Valedictory note: On a conclusive note, it may be said that much more needs to be done in the environmental front by large players like Tesco, Carrefour and Wal-mart, among others. These high ranking retailers need to show the way to smaller units, set the example and be a role model for smaller organisations. Environment protection and sustainability is on a long term basis and Tesco needs to consider both the short term and long term implications of its environmental and ecological policies. Not only has this to be in sync with accepted norms but it also needs to move effortlessly across environmental issues , present and potential in order to afford a better deal for environmental preservation. While its present plans and actions are indeed commendable, complacency needs to be eschewed, and more sustained efforts provide to enforce and sustain sound and practicable environment laws. These need to be in compatibility with government laws and regulations and seek to work in co-operation and co-ordination with authorities to create and maintain a more environmentally rich and healthy environment on earth. Skip to content APPENDIX 1 – Table of Key Performance Indicators for year 2009 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 Reference Lists Biofuels, 2009. [Online] TESCO plc. Available at: http://www.tescoplc.com/plc/corporate_responsibility_09/environment/sustainable_products/biofuels/ [Accessed 19 April 2010]. Carbon footprints and labelling, 2010. [Online] TESCO: Greener living everyday. Available at: http://www.tesco.com/greenerliving/greener_tesco/faqs/qa_carbon_footprint_and_labelling.page? [Accessed 19 April 2010]. Carbon labelling, 2009. [Online] TESCO plc. Available at: http://www.tescoplc.com/plc/corporate_responsibility_09/environment/climate_change/leading_a_revolution/carbon_labelling/ [Accessed 19 April 2010]. Climate change, 2008. [Online] TESCO. Available at: http://www.tesco.ie/crreview08/climate-env/climate-change.html [Accessed 19 April 2010]. Corporate responsibility report, 2009. [Online] TESCO. Available at: http://www.investis.com/plc/cr09/crr09.pdf [Accessed 19 April 2010]. Cutting carrier bag use, 2009. [Online] TESCO plc. Available at: http://www.tescoplc.com/plc/corporate_responsibility_09/environment/waste_packaging/cutting_carrier_bag_use/ [Accessed 19 April 2010]. Managing corporate responsibility, 2008. [Online] TESCO. Available at: http://www.tesco.ie/crreview08/managecr.html [Accessed 19 April 2010]. Measuring our carbon footprint, n.d. [Online] TESCO. Available at: http://www.tesco.com/climatechange/carbonFootprint.asp [Accessed 19 April 2010]. Our direct carbon footprint, 2009. [Online] TESCO plc. Available at: http://www.google.co.in/imgres?imgurl=http://www.tescoplc.com/plc/images/diagram-boundary-cf.jpg&imgrefurl=http://www.tescoplc.com/plc/corporate_responsibility_09/environment/climate_change/leading_by_example/carbon_footprint/&h=501&w=490&sz=138&tbnid=n4uAVFb916SfhM:&tbnh=228&tbnw=223&prev=/images%3Fq%3Ddiagrams%2Bof%2BTesco%2527s%2Bcarbon%2Bfootprints&hl=en&usg=__8YPawJ5XlvtSj47DhDmQ8D3v0Qc=&ei=drfKS-K1B5C3rAfvmJzNBQ&sa=X&oi=image_result&resnum=1&ct=image&ved=0CA0Q9QEwAA [Accessed 19 April 2010]. Recycling, 2009. [Online] TESCO plc. Available at: http://www.tescoplc.com/plc/corporate_responsibility_09/environment/waste_packaging/recycling/ [Accessed 19 April 2010]. Tesco- Reducing carbon emissions in distribution, 2008. [Online] The food and grocery experts. Available at: http://www.igd.org.uk/index.asp?id=1&fid=1&sid=5&tid=49&folid=0&cid=387 [Accessed 19 April 2010]. Read More