How Tesco is adapting its business model to help cut carbon

Case Study: How Tesco is Adapting its Business Model to Help Cut Carbon

David North, Community and Government Director

2 December 2008

Structure

1. Business case

2. Strategy

3. Integration

4. Momentum

Structure

1. Business case

2. Strategy

3. Integration

4. Momentum

Business case

A. Reduces cost

B. Builds consumer trust

C.Risk management

Business case

A.Reduces cost

B. Builds consumer trust

C.Risk management

Business case

A. Reduces cost

B.Builds consumer trust

C.Risk management

1. Price

2. Range

3. Availability

4. Acts in an environmentally friendly way

5. Ease of getting around the store

TOP 5 OF 150 REASONS WHY CUSTOMERS CHOOSE A STORE

Business case

A. Reduces cost

B. Builds consumer trust

C.Risk management

Group emissions by type 07/08:

60%

19%

12%

7% 2%Total – 4.46mT CO2e

ElectricityRefrigerantDieselGasBusiness Travel

Structure

1. Business case

2. Strategy

3. Integration

4. Momentum

Strategy

A. Emissions measurement and reduction

B. Products and services

C.Empowerment

Strategy

A.Emissions measurement and reduction

B. Products and services

C.Empowerment

Area Targets

New stores Cut emissions from new stores by average of 50% by 2020

Existing stores

Cut emissions from existing buildings by 50% by 2020

Distribution Cut emissions per case in our distribution fleet by 50% by 2012

Strategy

A. Emissions measurement and reduction

B.Products and services

C.Empowerment

Strategy

A. Emissions measurement and reduction

B. Products and services

C.Empowerment

Structure

1. Business case

2. Strategy

3. Integration

4. Momentum

Integration into business

A. Leadership and strategy

B. KPIs and measurement

C.Culture and skills

Integration into business

A.Leadership and strategy

B. KPIs and measurement

C.Culture and skills

Integration into business

A. Leadership and strategy

B.KPIs and measurement

C.Culture and skills

Integration into business

A. Leadership and strategy

B. KPIs and measurement

C.Culture and skills

Structure

1. Business case

2. Strategy

3. Integration

4. Momentum

Momentum

A. Zero-carbon store

B. Carbon currency

C.SCI

Momentum

A.Zero-carbon store

B. Carbon currency

C.Sustainable Consumption Institute

Momentum

A. Zero-carbon store

B.Carbon currency

C.Sustainable Consumption Institute

Momentum

A. Zero-carbon store

B. Carbon currency

C.Sustainable Consumption Institute

Structure

1. Business case

2. Strategy

3. Integration

4. Momentum