Tesco - Little Helps Plan Report Final 26520

Little Helps Plan.
2019/20
Serving
shoppers a
little better
every day.
COVID-19
Contents. At the time of publishing this report, we are dealing with the global
pandemic of COVID-19. The outbreak presents an unprecedented
Group Chief Executive statement............................. 2 challenge to everyone. Our business response has focused on
Our approach.......................................................... 4 providing food for all, safety for everyone, supporting colleagues and
People.................................................................... 8 helping communities.
Product.................................................................18 This report covers our 2019/20 financial year, before the impact of
COVID-19 was felt in the markets we operate in. It provides a summary
Planet................................................................... 28
of our activity and updates on the progress we are making with our
Places................................................................... 34 Little Helps Plan up to 29 February 2020.
Performance......................................................... 40 To find out more about our response to COVID-19 please visit
Indices, benchmarks and scorecards...................... 42 www.tescoplc.com/covid-19.
Learn more about our Little Helps Plan online at

www.tescoplc.com/sustainability
1 Tesco PLC Little Helps Plan 2019/20 Tesco PLC Little Helps Plan 2019/20 1
Group Chief Executive statement
Group Chief Executive statement
Little helps make a

big difference.

“The Little Helps Plan captures our approach

to ensuring we are a responsible and
therefore sustainable business. It links
directly to our purpose and our values.
Every part of Tesco is involved.”
Dave Lewis
Group Chief Executive
Five years ago we set out a new purpose for Tesco: to serve Our partnerships are also making a difference. Together with the Our priorities are giving customers access to the food they need; The Little Helps Plan provides a crucial focus for our work. We
shoppers a little better every day. In setting out our purpose we WWF we launched the Sustainable Basket Metric, a key step which working with government to serve the most vulnerable in society; believe that following the Little Helps Plan will not only mean that
had in mind a very broad definition of the word ‘serve’. To us, will allow us to measure progress towards our goal to halve the ensuring the safety of everyone who works or shops with us; we can serve shoppers better and more sustainably into the future,
serving obviously means the service we give in stores to customers environmental impact of the average UK shopping basket. We also supporting our colleagues; and helping local communities. but it will also lead to sustainable long-term returns for investors
but it also means acting as a responsible business for all worked with the WWF on the Cerrado Manifesto to support soy and a better outcome for the planet. In this context every little help
In early April 2020 we announced a £30m package of support for
stakeholders - customers, colleagues, suppliers and shareholders. sourcing without deforestation in Brazil. We continue to work really can make a big difference.
communities dealing with COVID-19. This builds on the programmes
closely with Champions 12.3 to help halve global food waste from
The Little Helps Plan captures our approach to ensuring we are a and partnerships we already had in place including making
farm to fork and we are working with suppliers to remove, reduce,
responsible and therefore sustainable business. It links directly to additional investments in our food donations programme,
reuse and recycle plastic from packaging. We even picked up a
our purpose and our values. Every part of Tesco is involved. supporting the British Red Cross and helping charities working with
Guinness World Record® with our biggest ever fundraising event –
some of the most vulnerable in society through our Bags of Help
In 2019 we made significant progress towards some of our Tesco Dance Beats – which saw us raise £2m for our health charity
scheme. We are also a partner of SalutetheNHS.org, donating all Dave Lewis
long-term goals in the Little Helps Plan. Over the course of the partners, Cancer Research UK, the British Heart Foundation and
the food for one million food parcels for frontline NHS workers. Group Chief Executive
year, we have reached 77% of our target that no food safe for Diabetes UK in our centenary year.
More information on our response to COVID-19 is available at
human consumption will go to waste in the UK. We have removed
This report reflects our progress in the year ending 29 February www.tescoplc.com/covid-19.
over 10,000 tonnes of hard-to-recycle materials from Tesco Own
2020, before the impact of COVID-19 was felt. Since then, we have
Brand products in the UK. We achieved a 37% reduction in Group None of this would have been possible without the hard work and
mobilised all parts of our business to help us respond to the crisis.
greenhouse emissions against a 2015 baseline as well as sourcing dedication of our colleagues and partners. It's a privilege to work
68% of electricity from renewable sources, achieving both our with such passionate and dedicated people who, every day live the
absolute emissions reduction and renewable energy 2020 values of our business.
targets early.
Our approach
Our approach
Little Helps Plan.

Since 2017, the Little Helps Plan has been a core part of our This year we undertook a review of the Little Helps Plan to ensure it
business and helps us to deliver our purpose of serving shoppers a continues to be relevant and reflects our ongoing business
little better every day. priorities. As a result of this review we have updated the framework
to enable us to report on the diverse value we create in a way which
We want to make a big difference and we believe our position in the
is consistent with how we operate:
market gives us a unique ability to pursue transformative change
across the supply chain and lead industry-wide action to tackle –– it all starts with People – Tesco colleagues and in our supply chain;
some of the biggest social and environmental challenges facing us –– it’s about serving customers with affordable, healthy,
today. Our Little Helps Plan sets out how we do this. sustainable Product;
We know that we won’t thrive as a business unless our –– working in a way that protects the Planet; and
communities, stakeholders and partners do, and we are very –– supporting communities in Places where we have a stake.
aware of the dependencies and interactions we have across a
We have introduced a new Planet pillar to better reflect the priority
multitude of issues. We continue to monitor the global forces and
we place on important environmental issues such as climate change
customer trends that are changing the retail landscape, recognising
and deforestation and removed the former ‘foundations’ which is
that the future of our business depends not only on the decisions
built into our Code of Business Conduct. In line with our value of
and actions we take, but also on the world around us and our
treating people how they want to be treated we have expanded the
ability to adapt.
People pillar beyond our own colleagues to the workers within our
supply chain, recognising the importance of creating jobs and
opportunities for people and communities around the world.
Serving shoppers a little better every day.

Our values
No one tries harder We treat people how they Every little help makes
for customers want to be treated a big difference
People. Product. Planet. Places.

Employment and skills Food waste Climate change Supporting
communities Materiality and stakeholder engagement As part of the Little Helps Plan review we have assessed the
Diversity and inclusion Packaging Agriculture appropriateness of our KPIs, our ability to measure and report
Economic change, environmental challenges, new technologies
Human rights Health and diets Marine against them and how they reflect our business priorities. Many of
and social trends present opportunities as well as risks for our
Health, safety Animal welfare Forests business and the communities we serve, and we must ensure our the KPIs remain unchanged for the year ahead, however some have
and wellbeing Little Helps Plan continues to address these issues. been retired and we have introduced new KPIs for some topics. We
acknowledge the importance of disclosure and where KPIs have
In 2017 we completed our first materiality study and since then we been retired, in many cases, we will continue to report data at
have continued to review and evolve the Plan following engagement www.tescoplc.com/LHPperformance.
with colleagues, suppliers, NGOs and industry stakeholders about
their priorities and expectations. A summary of performance against the 2019/20 KPIs is provided on
page 40. Detail of the activity and initiatives responsible for the
We are committed to listening to all stakeholder groups and do so performance is provided in the relevant sections of the report. The
Code of business conduct in a variety of ways. Customers and investors frequently approach updated forward-looking KPIs are introduced at the beginning
us with questions and we maintain an open-door contact of each of the pillar sections, together with 2019/20 performance
mechanism via our cr.enquiries@tesco.com mailbox. Beyond data where it is available.
requests for information, we also proactively engage with
Sustainable Development Goals We participate in numerous external sustainability indices and
stakeholders, hosting supplier days, deploying customer feedback
Launched in 2015, the UN Sustainable Development Goals (SDGs) provide a focus for how businesses, governments and civil society can tackle benchmarks that assess and score our approach on a broad range
surveys, meeting with policymakers and in 2019, for the first time,
global challenges in order to promote a more sustainable future for all. The SDGs provide a useful benchmark to assess the relevance of our of topics. Further information on these can be found on page 42.
we hosted an Environment, Social, Governance (ESG) event for
initiatives and in line with UN Global Compact guidance we have focused on goals which are particularly relevant to us: where expectations,
investors, analysts and banking partners to provide an update on
risks and opportunities for Tesco are greatest, and where we can make the biggest difference.
our approach to embedding sustainability into our business model More detail on the KPI changes and historical
and ways of working. KPI data can be found on our website at
Monitoring progress www.tescoplc.com/LHPperformance
In 2018 we established a set of Key Performance Indicators (KPIs)
to help us embed the Little Helps Plan into our business and
measure our progress.
Our approach
Our approach continued

Interdependencies
Governance. and value creation.
The Little Helps Plan has an established governance framework,
structured around the core operations of our business.
The future of our business depends not only on the decisions and transition to a low-carbon world aligned with the Paris Agreement.
actions we take, but also on the world around us and our ability to These transition risks are a result of market and societal shifts
adapt. We understand that our activity reverberates throughout related to agriculture, diets and energy use. Further information
society and by the same token, we know that decisions and actions about our TCFD work can be found within the Tesco PLC Annual
taken by society have a huge impact on us. Report and Financial Statements 2020.
We are operating in a constantly changing world with social, ethical, Alongside the threat of climate change, society is facing further
political, ecological, and technological developments that produce change with rising global populations, increasing life expectancy
both opportunities and threats. As a business we monitor these and rapid advancements in technological innovation. This has the
external factors and their potential to affect our performance, potential to impact both our customers, through their diets and
future prospects, reputation or our ability to deliver against our how they shop, and our colleagues and their skills and expectations
priorities and build appropriate controls. This forms part of our on us as an employer.
established risk management process.
Our well-established product development and customer insight
We recognise climate change as the biggest environmental threat analysis ensures we understand and leverage trends around
the world faces, and one which poses particular challenges to our customer behaviour, expectations and experience. We use this to
business, including our supply chain and operations. Conversely, improve our propositions and keep the needs of our customer
responding to climate change effectively can enhance our business central to our decision-making.
resilience and enable us to respond to any opportunities it may
Our talent planning and people development processes are
offer, making us a better business in the long-term.
established across the Group and help equip our colleagues with
We have completed Taskforce on Climate-related Financial the skills they need to succeed in the future, building on existing
Disclosures (TCFD) scenario analyses and assessed our exposure skills and creating opportunities for colleagues to reskill in areas
to physical climate risks such as rising temperatures, changes in where demand is expected to increase in the future.
rainfall patterns and extreme weather events. Beyond physical
risks, we also assessed risks and opportunities arising from a
To create value for our stakeholders.

The Corporate Responsibility Committee is chaired at Board level continues to make advancements toward meeting the challenging We are proud of the value we create by adopting sustainable production and consumption practices that ensure our ability to serve
by Lindsey Pownall, an independent Non-executive Director. Other priorities of the external environment, we have recently established tomorrow’s shoppers with affordable choices and provide sustainable long-term returns for investors.
members of the Committee include four Board-level Directors and a new Corporate Responsibility Steering Group. As a member of
two members of the Group’s Executive Committee. the Executive Committee and the Little Helps Plan sponsor,
Christine chairs the Steering Group to oversee progress of our Value for customers. Value for colleagues. Value for suppliers. Value for communities.
The Corporate Responsibility Committee oversees delivery of the
sustainability measures and goals. The Steering Group comprises We strive to provide As an employer of choice, we We collaborate with We operate in thousands of
Little Helps Plan and members are collectively responsible for
experts at director level of the business to ensure areas have an affordable, sustainable, remain committed to treating suppliers to continually raise communities around the world
ensuring the Board devotes sufficient focus to maximising
appropriate strategy and implementation plan. healthy products while ensuring people how they want to be supply chain standards and and are committed to playing an
opportunities for long-term sustainability benefits, while assessing
the potential impact of threats. The Committee meets three times The Steering Group provides updates to the Corporate that we never compromise treated and giving everyone the drive best practice on active role in helping these
per year to consider and review the following areas: Responsibility Committee against the Little Helps Plan and equips on product safety. opportunity to get on. sustainability issues. communities thrive.
Committee members with insights on developments within the
–– overall performance of the Little Helps Plan, ensuring sufficient
business or outlines anticipated issues for members to consider.
progress towards goals and targets is being made;
–– review and approve changes to the Plan, assessing the
suitability in meeting our long-term objectives;
–– monitor changes to the external environment and place due “Through the Little Helps Plan we
consideration of their influence on the Little Helps Plan demonstrate that every little
commitments and business reputation; and
help makes a big difference and
–– oversee the Group’s engagement with external stakeholders
and other interested parties including Little Helps Plan reporting, recognise the global responsibility
investor engagement and campaigning groups. Tesco has to the communities and Customer perception of Colleagues believe we are a Primary food supplier sites Donations made to good
Further information about the Corporate Responsibility customers it serves.” our brand great place to work supplying Tesco causes
Committee, including issues discussed in this year’s meetings, can
be found in the Corporate Responsibility Committee Report within
the Tesco PLC Annual Report and Financial Statements 2020.
Lindsey Pownall +19.3 pts 1
82% 2
2,749 £98m 3
Our Group Communications Director, Christine Heffernan, is the Non-executive Director and Chair
Little Helps Plan Executive sponsor. To ensure the business of the Corporate Responsibility Committee 1. Based on YouGovBrand Index which 2. Reflects percentage of colleagues 3. Donations made through our charity
is a score based upon six component recommending Tesco as a great place partnerships, community grant
questions covering quality, value, to work as part of our Every Voice programmes and colleague and
reputation and satisfaction; 12 week Matters survey. customer fundraising.
rolling data.
People
People.
One of our values is to treat people how they want to be treated.
We want to ensure all colleagues can be themselves and have an
opportunity to get on at Tesco. With more than 400,000 colleagues
around the world and millions of people who work within our supply
chain, we are committed to promoting human rights and seek to
ensure that there is decent, fair, safe work for all.
Our People pillar covers:
• Employment and skills

• Diversity and inclusion
• Health, safety and wellbeing
• Human rights
Our updated key performance indicators.

Commitment KPI 2019/20 performance
Being a great place to work Percentage of colleagues that recommend Group: 82%
Tesco as a great place to work within the Every
Voice Matters survey
Developing careers, skills and Percentage of colleagues who feel they have Group: 77%
leadership capability the opportunity to learn and develop at Tesco
within the Every Voice Matters survey
Recognising individual contribution Tesco average pay versus market median UK: 1.08
and collective diversity
Supporting colleagues to be at their Percentage of colleagues that believe Tesco Group: 76%
physical and mental best supports their health and wellbeing within the Every
Voice Matters survey
Respecting human rights across Percentage of high-risk tier 1 supplier sites UK: 97%
the supply chain with audits in the last year
Percentage of high-risk tier 1 supplier sites UK: 62%

where critical non-conformances (NCs) have
been identified
Percentage of high-risk tier 1 supplier sites UK: 97%

that have closed out critical NCs on time
KPIs have been updated to reflect our priority areas for the years ahead. We have provided 2019/20 performance against these new KPIs
where we have the data available. A summary of our previously published 2019/20 KPIs and performance can be found on page 40. Further
data disclosures can be found at www.tescoplc.com/LHPperformance.
People
People continued
Employment and skills.
Developing the skills and opportunities to get on As well as focusing on young people we have been looking at
The world of work is moving at pace and we know that we must opportunities to extend our talent pools to ensure we have the
equip our colleagues with the skills they need to succeed in the skills we need for the future. In Asia, in the last year we have
future. As well as building on existing skills, we are creating launched retiree contracts for the first time. This creates the
opportunities for colleagues to reskill in areas where demand is opportunity for retirees to work in our stores providing them
expected to increase and looking to expand our talent pools, so we with the opportunity to have active and engaging lifestyles while
can continue to resource the skills we need for the future. To focus earning additional income post retirement. To date we have
on this, a new strategic workforce planning team has been set up hired over 930 retirees.
to help build a picture of our future workforce supply and demand:
19,000
the critical skills, roles and job families Tesco will need to deliver its
strategy, and how we fulfil these.
We continued to invest in the future of our workforce with a focus
on digital skills across the Group. In the UK, 165 Digital Champions young people have been helped to develop their
across our stores and distribution centres have now had 32,000
conversations to improve colleagues’ digital confidence. In India, 83
employability and life skills through our work with
colleagues have been upskilled to lead work on automation whilst the Prince’s Trust and the Institute of Grocery
200 colleagues are now accredited in Continuous Improvement. Distribution charity
Colleagues in Central Europe have completed almost 60,000 digital
training modules and in Asia we now offer specific courses on
digital transformation and data to our colleagues.
In 2017 in the UK we launched our Light Goods Vehicle (LGV)

apprenticeship programme to encourage colleagues to become
professional drivers for our business. By January 2021 we will
have developed over 200 men and women through this scheme.
We have been working with the Prince’s Trust and specialist
research and training charity Institute of Grocery Distribution (IGD)
and have helped over 19,000 young people develop their
employability and life skills since August 2018. Our partnership
supports the Prince’s Trust Achieve Clubs, which give disadvantaged Every Voice Matters
young people in secondary school the opportunity to develop the In 2019/20 we renewed our colleague listening approach with the
skills they need for the future. Our commitment is focused on launch of our Every Voice Matters programme which will help give
funding the running of 40 Achieve Clubs in secondary schools in more timely and responsive insight to how our colleagues are
areas of greatest need, developing relevant content and lesson feeling across the Group and enable us to drive more focused
plans, and bringing the content to life for young people through action. For the new annual deep dive survey in January we received
volunteering opportunities for our colleagues. a response rate of 66% across the Group and were pleased that
82% of colleagues told us that they think Tesco is a great place
to work.
As well as our well-established colleague forums, we have
introduced four global Colleague Contribution Panels which are
In February 2020 Tesco Technology hosted the semi-finals of the
hosted by an independent Non-executive Director. These panels
National Cyber Security Centre CyberFirst Girls competition, which
meet to understand the views of colleagues across the business
provides a fun yet challenging environment to inspire the next
on areas of specific interest. Further information about these
generation of young women to consider a career in cyber security.
panels can be found in Tesco PLC Annual Report and Financial
While the students tackled the tasks submitted by UK Government
Statements 2020.
and businesses, we held a series of talks for parents and guardians,
including one from our partners GET SAFE ONLINE around online Reward
safety for the students. We also discussed the career opportunities We firmly believe in offering colleagues a competitive total reward
in the sector, the power of diverse and well-balanced teams here package. We were delighted to make a 6.9% increase to the basic
at Tesco and we hosted a panel discussion with women in the area, hourly rate in September 2019, significantly above the national living
discussing their experiences of working within Technology. This year Tesco was the first employer to achieve the Chartered wage, as part of a two-year investment of £300m into reward for
We work with the IGD to help young people learn about the wide Institute of Personnel and Development (CIPD) People 240,000 colleagues in UK stores and customer fulfilment centres.
variety of roles available across the food and drinks industry, and Development Partner status. This recognition is given to We also provide a 10% colleague discount, access to share
the skills needed for a successful career in it. We have exceeded businesses who go above and beyond to grow the next schemes and retirement savings. During 2019, on four occasions,
our original target of helping over 10,000 young people over three generation of People professionals. This achievement we doubled the UK colleague discount to 20% as part of our
years in the first year of the partnership and are committed to demonstrates our commitment to raise the level of expertise of centenary celebrations commemorating 100 years of Tesco.
continuing to create more opportunities in the future. our People team to support the delivery of our business
strategy and to support colleagues in their ongoing professional
82%
development through qualifications, membership and access to
learning resources. In the past 12 months 95 colleagues have
had the opportunity to work towards a CIPD qualification either
through our master’s programme, People apprenticeship or of colleagues told us that they think Tesco
experience assessment. is a great place to work
People
People continued
Diversity and inclusion.

40,000 Health, safety and
wellbeing.
colleagues have completed our digital learning
Everyone’s welcome at Tesco programme to date which includes a diversity Helping our colleagues to be at their best
At Tesco, inclusion means that everyone’s welcome. We value At Tesco we are committed to helping our colleagues be at their
and inclusion awareness video
individuality and uniqueness, and everyone is treated fairly and with best, both while at work and at home. Building on insight from the
respect. Across the Group we are continuing to build an inclusive 2019 Colleague Health Survey we have refined our colleague health
culture to unlock the value of our diverse workforce – which in turn strategy and aligned our ambitions to our wider customer health
helps to build the success of our business and reflect the diversity Gender goals with a focus on physical, mental and nutritional wellbeing. We
of the communities we serve. We champion gender diversity and appreciate the importance of have continued to run health events across the Group which focus
female representation across our business. We continue to be on the little steps to wellbeing that colleagues can take to help
Our diversity and inclusion strategy and plans continue to be
committed to increasing the number of women in leadership them lead healthier lives.
informed by our firmly established colleague networks. Across
the UK, we have five colleague networks; Black Asian & Minority positions and are part of the 30% Club, a campaign group of Chairs One of our key health priorities is to reduce the stigma and build a
Ethnic (BAME), Women, Disability, Out and Armed Forces at Tesco. and CEOs acting to increase gender diversity on boards and senior better understanding of mental health. We continue to be proud
The purpose of these networks is to help inspire colleagues to management teams. We are pleased to have been recognised in supporters of Time to Change and, on World Mental Health Day
be themselves at work regardless of ethnicity, religion, gender, the independent Hampton-Alexander Review for our 3.1% 2019, we launched the new Wellbeing in Retail guide, developed
age, disability or sexual orientation. This year, we have improvement in gender balance at Board level. with the Samaritans charity and six other retailers, a first in the UK
introduced a structured governance framework to support In accordance with the UK Gender Pay Gap Regulations, we industry. The guide helps retail workers look after their own mental
our networks including regular touchpoints with their recently published our gender pay gap for the year ending April health, gives advice on how to support others who may be
Executive Committee sponsor. 2019. The full report can be found on our website and showed a struggling and signposts where to go for extra help.
In the last year we launched a diversity and inclusion awareness median gender pay gap of 8.0% and a mean gender pay gap of Another important issue the UK business has focused on during
video to complement the digital learning programme which has 12.6%. 2019 is women’s health. In October, Tesco signed up to the
been completed by over 40,000 colleagues to date and will In the UK this year, we announced two significant changes to our Everywoman Promise, a commitment created by The Eve Appeal
continue to be rolled out across the Group. Family Leave policies as part of our work to promote an inclusive to champion and support women’s health in the workplace. On
culture. This included doubling the paid paternity leave entitlement World Menopause Day, we launched a new guide about women’s
to an industry-leading four week’s paid leave after one year’s health in the UK which has now been accessed by over 1,000
service and increasing enhanced pay during maternity/adoption colleagues. The guide acts as a gateway to starting conversations
leave. Continuous improvement of our family leave position is a key about the menopause and supports colleagues in understanding
part of our work to promote an inclusive culture and ensure the physical and emotional changes whilst signposting to additional
colleagues can be flexible about the way they care for their family support. We also hosted a Making Menopause Matter Panel in July
while also supporting the work we are doing to improve our gender where five special guests joined us to talk openly about their
pay gap position. menopause journey.
In Tesco Ireland, we were delighted to be accredited as one of just
19 Best Workplaces for Women in February 2020. The Best
Workplaces for Women accreditation recognises organisations that
go above and beyond to ensure the women in their workforce are “Tesco is a genuine ally of the
treated fairly when it comes to recognition, training and promotion LGBTQ+ community, and we’ve seen
opportunities, and where they are encouraged, empowered, and
supported to be at their best at work.
with our own eyes that they’re
committed to welcoming everyone
Our Gender Pay Gap Report is available at into their stores and providing a safe
www.tescoplc.com/genderpay and inclusive environment for their
customers, colleagues and all
LGBTQ+ supporters of Pride.”
Our support for the LGBTQ+ community is evident throughout the
business and through the network Out at Tesco, which was
established in 2009. We marked our 10th year as a partner with Dan O’Gorman
Pride in London by becoming their headline sponsor in 2019 and are Director of Strategic Partnerships, Pride in London
proud to also support Pride in Brighton, Glasgow, Manchester and
Dublin. We are working in partnership with Stonewall to make a
submission to their equality index and remain committed to
improving the colleague experience for our LGBTQ+ colleagues. BAME
We are committed to supporting BAME colleagues within our
Disability business and we were proud to be nominated for ‘Network of
We want to do all we can to welcome customers and colleagues the Year’ at the 2019 British Diversity Awards for our BAME at
In partnership with Arrival Education (AE) this year we have with disabilities and make their experiences as seamless as Tesco network.
launched an Exec Mentoring programme with a focus on helping possible. This year we rolled out the Sunflower Lanyard scheme
across our UK business. The lanyard, which can be picked up free in In September 2019, we launched a second development community
Tesco attract, retain and progress diverse talent. Each Exec has
store, indicates that wearers have a hidden disability and may need in the UK focused on enabling colleagues from ethnically diverse
been partnered with a member of the AE Talent community, Over 200 colleagues in Central Europe have now benefited from
a little extra help or time. We have also leveraged our Disability at backgrounds to reach their full potential as part of our career
which is made up of young talent from a socially and ethnically our Tesco Angel programme. This programme focuses on
Tesco network to introduce sign language into colleague events and planning initiative ‘Own Your Career’.
diverse background, to have regular 121s and coaching sessions. providing financial support for colleagues facing hardships such
The mentees have also each been set a project to build a town hall meetings in India. as support with medical treatment and tools to support with
deeper understanding of some of the barriers facing diverse In December 2019 we signed up to The Valuable 500, committing to disabilities when faced with unexpected accidents or health
talent from getting in and getting on at Tesco, the outcome of make Tesco a more accessible place for colleagues and customers problems. Colleagues can make a donation to the programme
which they will share back with the Exec. and ensuring that disability is a key consideration in all relevant which is then topped up by Tesco.
business decisions.
People
People continued
Human rights.
Respecting human rights One issue we monitor closely across our supply chain is that salaries In Latin America, we have worked with all suppliers to ensure
We are committed to continually raising supply chain standards and are paid on time and in full. We know how important this is for trade union affiliation is respected and no member of a trade
ensuring that those working within our supply chain are protected. workers and, by helping workers to avoid debt, we are also helping union is discriminated against. All our suppliers have been guided to
Our human rights strategy reflects the most important issues to make them less vulnerable to any risk of exploitation. In 2019/20 ensure each farm or packhouse, in the absence of trade unions,
affecting workers within our supply chains and we are proud of the we identified 52 cases, affecting 7,060 workers, where payments have at the minimum a democratically elected worker committee
steps we’ve taken to date, both through our core programme to had fallen short of what should have been paid, including premiums with no management interference. Women must be included
ensure decent conditions at production sites, and through our for overtime, that were subsequently addressed as a result of as part of the leadership of these organisations and regular
continued participation in collaborative initiatives to help drive Tesco’s intervention. meetings with management must be held to voice workers
sector-wide progress. concerns or complaints.
As part of the final year of the Malawi Tea 2020 coalition programme
we have partnered with a forward-thinking tea estate in the Shire
Highlands of Malawi where we plan to source all of our 2020 Our Modern Slavery Statement is available at
97%
Malawian raw material. We are paying a higher-than-market value www.tescoplc.com/modernslavery
purchase price for our tea which is verified by Oxfam and the
Sustainable Trade Initiative, IDH, to generate additional value for the
of high-risk tier 1 supplier sites have had estate workers. Forced labour
audits in the last year Beyond our existing commitment to only source from Rainforest We are fully committed to eradicating modern slavery in our
Alliance Certified™ farms in our Own Brand chocolate operations and supply chains.
confectionery and through responsible cocoa programmes for our Tesco works in partnership with Unseen, who run the UK’s
Sustainable livelihoods other Own Brand products, in 2019 we led the creation of the Retail independent and confidential modern slavery helpline. Trained
Cocoa Collaboration with other retailers. The aim of this group is to helpline advisors are able to support potential victims of modern
We believe that everyone deserves a fair wage for the work they do
engage with cocoa traders, recognising the important role they slavery as well as offer a way for businesses and the general
and this year we have continued to work alongside like-minded
play, and assess their progress against sustainable cocoa policies public to raise suspicions or concerns. Real-time translation is
organisations to improve wages in sectors where they are low,
and commitments. available in over 180 languages. We encourage our primary
including the Malawi tea industry and the cocoa industry.
Worker representation supplier sites in the UK, as well as our distribution fulfilment
In consultation with internal and external stakeholders, including centres, to promote the helpline, enabling us to continue to
NGOs, we have launched a new sustainable livelihoods strategy Free and fair worker representation continues to be a significant
raise awareness of modern slavery.
which sets a framework for our work in this area over the next challenge in global supply chains and we continue to work in
three years and is available on our website. conjunction with NGOs, trade unions, the Ethical Trade Initiative Through the Unseen business portal, we also gain visibility of
and certification bodies/audit companies to strengthen workers' potential cases relating to Tesco and our supply chains raised by Photo credit: Ethical Tea Partnership/UNICEF/Avani Rai
ability to associate and respectfully demand continuous both internal and external parties. These are investigated by
improvements in labour conditions. experienced responsible sourcing and Group security colleagues.
Our partnership with the Ethical Tea Partnership and UNICEF is
This year, as members of the Leadership Group for Responsible focused on addressing gender inequality in the Assam region of
Recruitment within the Institute for Human Rights and Business, we India, where girls and young women can be at risk of violence,
have supported the development of metrics to ensure ongoing abuse and exploitation.
progress toward embedding responsible recruitment practices in
Photo credit: World Cocoa Foundation
our supply chains and own operations. We have also launched
responsible recruitment requirements for suppliers in Thailand and
Malaysia, a region where recruitment fees are known to be
excessive. We continue to sponsor and promote the Responsible
Gender equality
Recruitment Toolkit, a capacity-building tool led by the Association Further to becoming a signatory to the UN Women’s
of Labour Providers and allianceHR, supporting businesses to Empowerment Principles, this year we have finalised our gender
embed responsible recruitment practices in their supply chains. equality strategy with four key focus areas; women in leadership
positions, tackling gender discrimination and sexual harassment,
In December 2019, a UK customer found a handwritten message promoting women’s participation in worker representation, and
within a Christmas card we sold reading “please help us and challenging gender stereotypes. Work is underway to engage our
notify human rights organisation”. We immediately launched an suppliers on our strategy and establish action plans.
investigation and removed the cards from sale. While we did
not find evidence of prison labour, we found other issues of We are building on the success of the Assam Improving Lives
concern that had regrettably not been identified by the Programme in partnership with Unicef, the Ethical Tea Partnership
independent auditor who had visited the site the previous month. and other key stakeholders. Historically young people in this area
We ceased working with the factory and supplier and have since have been vulnerable to a range of child protection issues
reviewed our whole supply base for cards and ensured greater including, child trafficking into forced labour. To date the
training with our audit partners. programme is directly and indirectly improving the lives of an
estimated 250,000 women, girls and boys. Women and young
girls have especially been equipped with the skills and knowledge
250,000
to protect themselves from various forms of harm, including
child marriage.
the number of women, girls and boys being helped,

directly and indirectly, through the Assam
Through our responsible cocoa programmes, we led the Improving Lives Programme
creation of the Retail Cocoa Collaboration. The aim of this
group is to engage with cocoa traders, recognising the
important role they play, and assess their progress against
sustainable cocoa policies and commitments.
Spotlight
[Feature]
Sustainable, affordable,
quality clothes.
F&F is our in-house fashion brand. Each year we sell more

than 200 million items of clothing in the UK, Ireland and
Central Europe. Our approach to sustainability - reducing
our environmental impact and making a positive difference
to communities - applies just as much to our clothing
business as to any other part of Tesco.
50,000 tonnes
Responsible sourcing Sustainable fabrics Re-wear, Reuse, Recycle
At F&F we are committed to improving the lives of everyone More than 50% of the clothes we sell are made from cotton or In 2019 we launched our pilot F&F clothing take-back scheme at
involved in creating our clothes. We are a founding member cotton blends. Understanding the impact these products have on 86 Tesco stores across the UK, making it easier for customers to
of the Ethical Trading Initiative and we monitor our supply base the environment and on the communities where we source is of more sustainable cotton sourced recycle their unwanted clothing, shoes and textiles.
to ensure that human rights standards are upheld. We publish helping us make better sourcing decisions. by F&F since we became a member of the We continue to work in partnership with SOEX UK, who collect the
the full list of F&F tier 1 suppliers together with the full list of mills donations and sort them into re-wear, reuse and recycle
that we work with on our website. In December 2019 we conducted
In 2017, we signed the International Sustainability Unit pledge on Better Cotton Initiative
Sustainable Cotton. All F&F suppliers have started the categories meaning nothing goes to waste or landfill.
two day-long workshops in north and south India aimed at garment
transformation from using standard cotton to more sustainably Every year we collect 11,000 tonnes of clothing, footwear and home
vendor, spinning and fabric mills. We shared our Forced Labour
sourced cotton. Our 100% cotton clothes, including kids T-shirts Alongside work to reduce the impact of our cotton on the textiles through our instore customer take-back scheme and our
Principles and best practices to fight modern day slavery
and girls dresses, use more sustainably sourced cotton and we are environment we are introducing more recycled polyester fabrics. carpark textile banks.
and outlined our approach to unannounced audits by our
aiming to have all of the cotton we use in all F&F products sourced We are part of the Sustainable Clothing Action Plan (SCAP), a
responsible sourcing team.
sustainably (Better Cotton Initiative (BCI), organic and/or recycled) collaborative initiative led by WRAP which aims to revolutionise the
by 2025. In the last 12 months, more than 80% of our cotton has clothing industry. SCAP has identified that recycled fibre is the least More information on our F&F
been more sustainably sourced, making good progress towards impactful and as a result we’re prioritising its use. Products sustainability activity can be found at
We have been working in partnership with achieving our 2025 target. including school uniforms and swimwear now include recycled www.tescoplc.com/sustainability/ff-sustainability
the Better Cotton Initiative to train cotton fibres. In 2019 we used the recycled fibres from over 30 million
plastic bottles.
farmers in more sustainable farming
techniques and we encourage farmers to
use fewer pesticides and chemicals.
Product
Product.
Customers want great products at great value and we believe that
healthy, sustainable products should be affordable to all, no matter
what their budget. We are committed to providing our customers
with quality products that meet the highest safety requirements.
Our product pillar covers:

• Food waste • Health and diets
• Packaging • Animal welfare

Food waste
No food that is safe for human consumption Percentage of food surplus safe for human UK: 77%
will be wasted inside our UK retail operations consumption redistributed to humans or animals
Halve food waste in our own operations by 2030 Percentage change in tonnes of food wasted as UK: 9% reduction
percentage of tonnes sold compared to baseline year ROI: 1% increase
CE: 58% reduction
Malaysia: 27% reduction
Thailand: 11% reduction
Work in partnership with our suppliers to halve Percentage change in tonnes of food wasted as a 15 suppliers reported a reduction
food waste in our supply chains by 2030 percentage of tonnes produced by our largest in their food waste intensity -
branded and Own Brand suppliers ranging from 1% to a 64%
reduction compared to 20181
Packaging
Remove plastic packaging where we can Cumulative number of pieces of plastic removed Data will be reported in 2020/21
Reduce all unnecessary packaging Percentage of products where packaging has been Data will be reported in 2020/21
reduced (vs. 2018 baseline)
Introduce a scalable reusable packaging offer KPI and baseline will be established in 2020/21
for customers
Our packaging will be fully recyclable by 2025 Percentage weight of all Own Brand packaging UK: 83%2
that is recyclable
All paper and board used will be 100% sustainable Percentage of paper and board packaging that is Data will be reported in 2020/21
by 2025 certified FSC or PEFC or from a recycled source
Health and diets

To help improve diets through encouraging the Percentage volume of fruit and veg content UK: 0.6%
consumption of fruit and veg for Tesco Own Brand products below/above
Own Brand volume growth
To make Own Brand food and drink recipes healthier, Percentage change in volume of key nutrients for Sugar: 7.1% below
provided there is no impact on taste or quality Tesco Own Brand products below/above Own Brand Salt: 4.3% below
volume growth (vs 2015 baseline) Fibre: 8.7% above
Calorie reduction in eight food categories contributing UK: 24.46bn calories removed
most calories in Tesco family baskets3
To raise awareness of healthier choices Percentage of UK customers who agree UK: 57%
‘Tesco helps customers live healthier lives’
Animal welfare
Treat all animals in our supply chain humanely Percentage of audited sites that meet our UK: 85%
at all life stages animal welfare standards ROI: 88%
Percentage of key suppliers reporting animal UK: 88%

health and welfare outcome measures
Percentage of cage-free eggs UK: 82% (shell eggs)
Percentage of sows free from confinement UK: 100% (stall free)
KPIs have been updated to reflect our priority areas for the years ahead. We have provided 2019/20 performance against these new
KPIs where we have the data available. A summary of our previously published 2019/20 KPIs and performance can be found on page 40.
Further data disclosures can be found at www.tescoplc.com/LHPperformance.
1 27 Own Brand suppliers representing over 50% of fresh food sales in the UK have reported food waste data for their own operation in 2019. We are able to compare year-on-year data
for 21 of the 27 suppliers
2 2018 calendar performance
3 Identified by Clubcard data
Product
Product continued
Food waste.
Reducing food waste We run surplus food donation programmes in all the markets in Tackling food waste from farm to fork
It’s a shocking fact that an estimated one-third of all food which we operate. In 2019/20 Tesco Ireland donated over 2.25 We have a shared responsibility to tackle food waste from farm to
produced in the world is lost or wasted. This huge level of million meals from stores and distribution centres, supporting 375 fork – working in partnership with our suppliers and helping
inefficiency contributes to food insecurity while also having charitable food organisations. All Tesco stores in the Czech customers reduce food waste in their homes.
significant environmental impact. Food loss and waste is Republic and Slovakia and over 95% in Hungary now donate to food
banks and local charities and we are working to introduce the We think its important for every food company, including our
responsible for 8% of global greenhouse gas emissions.
FoodCloud app to help maximise donations across Central Europe. suppliers, to publicly report on the levels of waste within their own
Seven years ago, we made a commitment to help reduce food operations. In line with Champions 12.3 best practice, 27 of our
waste on farms, in-store and at home. Our first step was to publish largest suppliers, responsible for over half of our fresh food sales in
our UK food waste data. Since then we have set a target to halve Food surplus safe for human consumption sent for the UK, have now published their food waste data for the second
food waste from farm to fork in each of our markets and published energy recovery (tonnes) in the UK year, with many showing significant reductions in their levels of
our food waste data for all parts of our food business. waste. In addition, 11 of the world’s largest food brands published
Beyond our business, we are working across industry and with
other organisations to mobilise global action by sharing our
61% their data following a commitment to Target, Measure and Act the
previous year.
expertise and lessons from our food waste programme. Our CEO,
Dave Lewis, chairs Champions 12.3, a global coalition of leaders 27 of our largest suppliers, representing 50% of
from government, businesses, international organisations, research –– 36,843 tonnes of surplus food was fresh food sales in the UK, have published their
19,898
institutions and civil society focused on accelerating progress redistributed through donations to food waste data
toward UN Sustainable Development Goal Target 12.3. charity, colleagues or animal feed,
an increase of 12% compared with We are now rolling out this approach to the Group with 12 of our
last year and 82% since 2017/18 largest Irish Own Brand suppliers, responsible for a third of Tesco
–– This has resulted in a 21% decrease Ireland’s fresh food sales, and 14 global growers across three Using our experience with Community Food Connection, we
in the amount of food safe for continents signing up to Target, Measure and Act and committing to are working in partnership with our global produce supplier
human consumption going to publish data for their own operations in 2020. Flamingo to turn surplus food from packhouses into soup
9,828
energy recovery compared to last which is distributed free of charge to schools in Kenya.
7,738 year and a 61% decrease In September 2019, Champions 12.3 launched the 10x20x30
compared to 2017/18. initiative where 10 of the world’s largest food retailers and food
providers each committed to Target, Measure and Act and publish
their food waste data for their global operations. Each of these We want to make it easier for our customers to reduce food waste
companies will engage and support 20 of their own priority branded in their homes and save money. We have introduced a range of
2017/18 2018/19 2019/20 and own label suppliers to also Target, Measure, Act and publish, product and packaging innovations to help customers keep food
with all these companies committing to halve food waste by 2030. fresher for longer at home. Many customers have told us that they
We work with our suppliers to make as much use of their crops as assess their fruit and vegetables by the look of the product rather
Full disclosure of our food waste data can be found at possible. Our Farm Brands and Perfectly Imperfect ranges make than the ‘Best Before’ date code on the packaging. In response we
www.tescoplc.com/LHPperformance good use of the part of the crop that previously fell outside our removed ‘Best Before’ dates from over 180 fruit and vegetable lines
specifications. In December 2019 we widened our specifications on to help customers reduce food waste in the home. Over the past
potatoes and added customer messaging on pack to take as much year we have worked with WRAP to help incorporate this change
crop as possible from our flood hit growers in eastern England. into industry guidance on fresh produce labelling.
We have no time for waste and have expanded our food
waste reporting to cover all markets across the Group.
Publishing a detailed breakdown of our waste has enabled us
to identify hotspots and act on these, in partnership with
other organisations.
Tackling food waste in our own operations

In our UK retail operations, we are committed to ensuring
that no food that is safe for human consumption is wasted.
Over the course of 2019/20, we reached 77% of our target in
the UK as we have embedded new processes to ensure our
progress is sustainable.
As a retailer we know that perfectly matching supply and
demand is almost impossible, and we will always be left with some
unsold food at the end of each day. Our UK Community Food
Connection initiative, in partnership with food redistribution
charity FareShare and social enterprise FoodCloud, has donated Together with Jamie Oliver and Tesco’s development chefs,
the equivalent of over 48 million meals since launch in 2016. Our at the start of 2019 we launched a new training programme
stores use the FoodCloud app to inform over 7,000 local charities in the UK called the Community Cookery School to help
and community groups about surplus food for donation at the end ensure perfectly edible food can be prepared into meals. We
of the day in each store. Food not taken by charities is offered have now trained over 1,000 community cooks to get the
to colleagues through our ‘colleague shops’ now in all UK stores. most out of surplus food donations using specially developed
We send any suitable remaining bakery, produce and dairy surplus nutritious recipes.
to animal feed. As a result of these initiatives we have delivered In Central Europe, we brought together retailers, suppliers, foodbanks and campaigners in 2019, at our fourth annual Food Waste
a 61% reduction in food safe for human consumption going to Conference to share ideas and foster collaboration to tackle food waste from farm to fork.
waste since 2017/18 in the UK.
Product
Product continued
Packaging.
Packaging plays an important role in protecting products and

reducing food waste, but it shouldn’t come at a cost to the planet.
Packaging waste, particularly plastic, can be a significant problem
when it is not recycled and if it ends up in our environment.
We aim to make packaging work for people, not against the planet.
This is why we are committed to creating a system where packaging
is treated as a valuable resource that can be used, reused,
collected and recycled in a closed loop. A system where waste isn’t
tolerated. A system where plastic stays out of the environment and
inside the economy. We are taking action to:
–– remove unnecessary plastic packaging and hard-to-recycle
materials;
–– where we can’t remove, we are reducing packaging to an
absolute minimum; Reduce Recycle
–– we are exploring new opportunities to reuse packaging; Where we can’t remove packaging completely, for example where In support of creating a closed loop for packaging, we’re using
and if we can’t; it prevents food waste, we’re committed to reducing it to an more recycled content and ensuring the materials we use are easy
–– we ensure it is all recycled as part of a continuous loop. absolute minimum. We have reviewed every piece of packaging we to recycle. 83% of our Own Brand packaging is widely recyclable in
use, from our Own Brand and branded products, and are now the UK. This year also saw us collect previously hard-to-recycle
changing the packaging of thousands of products. plastics, like films and pouches, to be recycled in ten of our stores.
This trial, in partnership with recycling specialists, has not only
We are working closely with our suppliers, branded and
collected 50 tonnes of soft plastic for recycling but is also
Own Brand, reminding them of the importance our customers
working to better understand how we could ensure the recycling
place on packaging. In 2019 we introduced assessments on By retaining all hangers from purchased items to be reused
of all soft plastics in the future, whether brought to store or in
the size and suitability of packaging as part of category reviews, we will prevent 1,000 tonnes of plastic going to landfill
kerbside collections.
making clear that we reserve the right to no longer stock products annually from UK and Central Europe
that use excessive or hard-to-recycle materials. We are pleased
with how our suppliers have reacted and we have already
witnessed savings. For example, by reducing the size of packaging
on multibuy crisps by 23%, a branded crisp manufacturer delivered
83%
a reduction of 5,000 tonnes in packaging weight and 50,000 fewer
of our Own Brand packaging is widely recyclable
road miles as pallets were packed more efficiently, reducing the in the UK
number of lorry journeys.
We welcome the UK government’s commitment to the creation
of a consistent national collection system for packaging in their
Remove Resources and Waste Strategy. We stand ready to help play our
part in making recycling easier and helping customers recycle
Since announcing our goal in 2018 to remove hard-to-recycle
more. In the UK, we continue to trial incentivising customers
materials - what we call the ‘red list’ - we have eliminated over
to recycle their plastic bottles through our in-store reverse
10,000 tonnes from over 1,000 Own Brand products. This includes
vending machines. These machines have collected over
the removal of black plastic from 149 ready meal lines saving 2,523
1 million pieces of packaging.
tonnes of hard-to-recycle plastic and the removal of polystyrene
and black plastic from our herb and spice pots, removing over 250
tonnes of hard-to-recycle plastic. We no longer use ‘red list’
materials to pack products in our UK business and we are on track
to remove all hard-to-recycle materials from Own Brand packaging
in Central Europe in 2020. Reuse
Reuse is about exploring alternative models of consumption, away
10,000 tonnes from single-use packaging and toward refills and reusable
packaging. In 2018 we introduced the ‘bring your own container to
store’ offering at our fresh meat, fish and cheese counters and
of hard-to-recycle materials eliminated reusable cups in our cafes and will launch a ground-breaking
partnership with Loop, specialists in refillable and reusable
In September 2019 we announced the removal of plastic bags from packaging in 2020.
our home deliveries as part of our work to use less plastic. We also
The reuse trial with Loop will invite customers to order products
announced our pledge to remove one billion pieces of plastic from
online in packaging that can be reused. The initiative will deliver
products for sale in UK stores by the end of 2020. Everything from
products in durable reusable packaging that is returned, washed,
secondary lids on products like cream, yoghurt and cereals to
refilled and used again. This trial has the potential to fundamentally
sporks from snack pots are set to go.
change the shopping basket and how customers shop, and we look
Beyond our Own Brand products, we are also working with leading forward to seeing the results of the trial.
branded suppliers to deliver our packaging ambitions. In January In January 2020, we announced the removal of shrink- This year we have collected 50 tonnes of soft plastic through
We’ve identified further opportunities, outside of food, where
2020 we became the first retailer in the UK and Ireland to remove wrapped multipacks in the UK and Ireland our in-store recycling trials
reuse could eliminate packaging waste. Our clothing brand, F&F,
shrink-wrapped multipacks across our Own Brand and branded
uses 193 million hangers annually and they are extremely difficult to
tinned food, working in conjunction with canned food firms.
recycle. By retaining all hangers from purchased items to be reused
Replacing 67 million plastic-wrapped multipacks with multibuy
we will prevent 1,000 tonnes of plastic going to landfill annually
deals, will remove 350 tonnes of plastic waste every year.
from UK and Central Europe.
Product
Product continued
Health and diets. Animal welfare.
100%
We want to make it easier and more enjoyable for customers and Encouraging families to eat more fruit and vegetables The health and welfare of animals within our supply chain is very
colleagues to make healthier choices. Our health programme We continued to support The Food Foundation’s Peas Please important and we are committed to working responsibly in this
addresses many of the barriers customers tell us they face, such as initiative focused on making it easier for more people to eat more area; working with farmers to drive progress and influence best
lack of information, time to find better choices or perceptions that vegetables. We have increased the proportion of our ready meals practice. Our team of in-house experts oversee animal welfare
healthy food is expensive and less tasty. Through regular health management through farm visits, the Tesco Sustainable Farming of farms supplying us in the UK are certified
range that contains 1 of 5 a day from 26% in 2018 to 42% in 2019
events, product reformulation and clearer labelling we are making it and ensured that all our Finest meal deal promotions included two Groups, Tesco Supplier Network and benchmarking and auditing to an approved independent assurance
easier for customers to enjoy their favourite products, knowing vegetable side dishes. This equated to 2,677,584 servings of compliance with our livestock requirements. In addition to our standard
they are now better for them or to try healthier alternatives. vegetables from the Finest meal deal alone. Tesco Welfare Approved Standard, as a pre-requisite 100% of
farms supplying us in the UK must be certified to an approved
Making our products healthier
independent assurance scheme, which is compliant with ISO 17020
Year after year we continually adjust the recipes of our Tesco Own inspection requirements. All of our British farms are assured by
Brand products, removing fat, sugar and salt, or adding more either Red Tractor or RSPCA. In 2019 we retained Tier 2 status in
vegetables or fibre where we can without compromising on taste. the Business Benchmark on Farm Animal Welfare.
We have developed a reformulation strategy, which complements
Public Health England’s (PHE) programmes within the Childhood Tesco Sustainable Farming Groups
Obesity Plan. As part of our commitment to a competitive and productive
agriculture sector, in 2007 we established our Tesco Sustainable
We are committed to increasing positive nutrients e.g. fibre, fruit
Farming Groups. Our first group was the Tesco Sustainable Dairy
and vegetables, along with reducing nutrients of concern wherever
Group and we have now expanded the programme to cover ten
possible. To ensure the holistic reformulation of our products, we
product areas. These groups are led by our suppliers, farmers and
measure nutrient volume changes compared to total food volume
Tesco colleagues and provide a forum to discuss sustainable
growth for Own Brand products. For example, in the UK we have
production and customer needs. They also play an important role
reformulated our garlic baguettes, slices, flatbreads, ciabatta and
in driving improvements in quality and consistency, as well as supply
dough balls to reduce fat and saturated fat. This adjustment has
chain efficiency and farm animal health and welfare.
delivered a 2.4 billion calorie reduction annually and moved five
products from a red to amber in the traffic light labelling for fat and The Tesco Sustainable Dairy Group (TSDG) has 600 dairy farmer
saturated fat and enabled a fibre claim to be made. members, supplying all our Own Brand liquid milk and cream.
Through the Group, we are working to achieve disease free status
In July 2019 we held our fourth UK customer health event, this time
and this year we saw a 3% reduction in BVD disease compared to
24.46 billion calories removed through themed around ‘easy ways to eat more veg’. To help customers
last year, with 225 of our TSDG farms BVD free. We are actively
our reformulation strategy create healthy recipes, we promoted recipes created by our health
working to reduce antibiotic use in our supply chain without
ambassador Jamie Oliver, which featured the vegetables in our
compromising animal welfare and the TSDG farmers have responded
Fresh 5 promotion.
to our antibiotic strategy, reporting a 41% reduction in the number of
PHE has tasked the food industry to reduce the sugar in the foods We continued our successful ‘Helpful Little Swaps’ initiative where cows receiving antibiotics compared to when we started recording in
consumed most by children by 20% from a 2015 baseline. In 2019, we encourage customers to discover and try healthier alternatives 2016, which is a further 4% reduction on 2018/19.
we achieved the second lowest sales weighted average for sugar of their favourite products at the same price or less. Over the
versus other retailers* at 19.8g sugar/100g of product across the The Tesco Sustainable Lamb Group was established in 2014 to
three weeklong events, customers added an extra half a million
products in scope. This represents a 9.3% sugar reduction, and strengthen our relationship with British lamb farmers and
units of vegetables to their shopping baskets.
builds on our reformulation journey. processors. In 2016 we launched a cost of production initiative to
** Based on Kantar data December 2019, vs: Asda, Morrisons, JS, Lidl, Aldi and M&S.
Delivering innovation in plant-based food help address some of the volatility in the lamb market, helping
In 2019/20 we increased our choice of plant-based food with the them to budget, plan and innovate and the number of farmers
launch of Plant Chef, an affordable new range of easy to prepare joining the scheme in 2019 rose to 350, up from 160 in 2018.
plant-based swaps of traditional family favourite dishes. These Eggs
complement our existing exclusive Wicked Kitchen range, which
In July 2016 we made the commitment to stop selling caged eggs by
was the first Own Brand plant-based food range to be launched by
2025 to meet our, and our customers’, expectations for higher
a UK supermarket. We now have over 300 lines of plant-based
welfare standards. In 2019, 82% of the 1.4 billion eggs we sold came
products, of which over 100 are Own Brand.
from non-cage production. To achieve the 100% cage-free goal we
We are keen to help customers identify plant-based products and must address our entry tier eggs which are currently laid by hens in
in October 2019 we released a major advertising campaign, our British Lion welfare standards-approved enriched colony systems.
Food Love Story, about our growing plant-based offer.
We have been evaluating options in the UK, Europe and the USA
and, working with supplier partners to utilise existing infrastructure
and investments, we will transition to alternative production
methods, focusing predominantly on barn egg production for our
lower cost ‘value egg’.
We have been working closely with the British Egg Industry Council
(BEIC) and with Compassion in World Farming (CIWF) to develop a
standard for UK barn egg production capable of delivering higher
Using PHE guidance methodology, we have used customer levels of animal welfare, while providing a sound commercial
data to identify the product categories that put the most opportunity for producers.
calories into shopping baskets and set out a 50 billion calorie The new barn standard, under the British Lion Quality Code of
reduction target. So far, we have removed 24.46 billion Practice, was agreed by BEIC subscribers in autumn 2019, well
calories through our reformulation strategy. We have ahead of our cage-free commitment deadline.
removed over 8.5 billion calories per year from our front of
store sandwich range by reducing the fat content and
More information on our approach to animal
removing added sugar from the mayonnaise.
welfare and the Tesco Sustainable Farming Groups
can be found at www.tescoplc.com/animalwelfare
Spotlight
WWF Partnership
and Sustainable
Shopping Basket.
In 2018, Tesco and WWF-UK embarked upon a four-year

partnership in support of our commitment to make
affordable, healthy, sustainable food accessible to all.
Our aim is to halve the environmental impact of the average
UK shopping basket.
We are now into the second year of our WWF partnership and 2. Restoring nature in food production 3. Eliminating waste from the retail industry are closely aligned to our Little Helps Plan and have been weighted
together we are working across the entire ‘food value chain’, Restoring nature in food production means taking action to protect The third area of focus within the partnership is eliminating waste. based on a range of criteria including scope, irreversibility and
from food production and delivery, right through to food and sustain important natural environments such as farmlands, At Tesco we have no time for waste which is why, seven years ago, urgency, direct impact and governance. To help us track progress
consumption, to address the sustainability challenges and forests, marine, freshwater and climate over the long-term. we made a global commitment to help reduce food waste on on particular issues, we have chosen 20 popular food products,
environmental impacts in our supply chains and to help protect farms, in-store and at home. Over the course of the last year we from fresh produce to ready meals – our ‘average shopping
the planet's natural resources. We’re working closely with WWF to meet some of the basket’. Work is now underway to establish the first score against
reached 77% towards our target that no food safe for human
commitments we’ve made, including our journey to eliminating the Metric, based on 2018 industry data, that will act as the baseline
Many of these issues require transformative change, not just consumption will go to waste across our UK operations.
deforestation in the sourcing of palm oil, soy and wood/paper for for measuring our future progress.
across Tesco and our supply chain but through industry-wide Tesco Own Brand products and sourcing 100% certified We recognise the important role packaging plays in protecting
action and we are working closely with experts at WWF to do just responsible seafood products. products and reducing food waste, but it shouldn’t come at a cost
this. There are three main areas to our work: to the planet. Our approach to addressing plastic pollution is
1. Helping shoppers eat more sustainably
Our shared focus on deforestation reflects the vital role
summed up in our 4Rs strategy: Remove, Reduce, Reuse, Recycle. “The launch of the Sustainable Basket
supermarkets play in the sourcing of soy, as a key ingredient of
Joint research with WWF tells us that nearly 80% of customers animal feed. Throughout 2019 we worked closely with WWF to
Together with WWF, we are advocating for robust national policies Metric will enable Tesco to fully
on recycling infrastructure and waste management.
want supermarkets to do more to offer food sourced in a identify how to help end deforestation in the Cerrado region of understand the end-to-end sustainability
responsible, sustainable way, and 75% think cost is a barrier. Brazil, the primary source of our soy. In December we announced Sustainable Basket Metric
our support to the Funding for Soy Farmers in the Cerrado initiative
impact of some of the most popular foods,
We are committed to doing what we can to ensure it is easy and To enable us to measure progress towards our aim of halving the
cost-effective to eat more sustainably. In part this means ensuring whereby we have committed £10m in funding over five years. environmental impact of the average basket we have created a and we are proud to have worked with
we can offer our customers a wide choice of affordable plant- pioneering industry measurement called the Sustainable Basket Metric. them to create it.”
based products, in addition to sustainably sourced animal proteins.
80% of customers want supermarkets The Sustainable Basket Metric consists of a range of sub-metrics
covering seven key environmental issues – climate change, WWF-UK CEO Tanya Steele
to do more to offer food sourced in a deforestation, sustainable diets, sustainable agriculture, marine
responsible, sustainable way sustainability, food waste and packaging waste. These sub-metrics
More information about our WWF partnership
can be found at www.tescoplc.com/WWF
Planet
Planet.
Our success depends on the health and stability of our natural
environment. We are committed to leading the industry in
addressing sustainability challenges in our key supply chains,
advocating for sustainable agricultural practices that protect
important ecosystems, soil health and biodiversity.
Our Planet pillar covers:
• Climate change
• Agriculture
• Marine
• Forests

Climate change
Meet science-based climate targets for our operations, Percentage reduction in greenhouse gas emissions Group: 37% reduction
aligned with 1.5 degree trajectory of Paris Agreement (Baseline 2015/16)
Achieve net zero emissions for UK operations by 2035 Absolute UK greenhouse gas emissions (Scope 1 UK: 916,750tCO2e
and 2 market based)
Source 65% of our electricity from renewable sources by Percentage of electricity from renewable sources Group: 68%
2020 and 100% by 2030
Reduce supply chain carbon emissions by 7% by 2020 Percentage reduction in manufacturing emissions UK: 12% reduction
from key suppliers (Baseline 2015/16)
Percentage reduction in agriculture emissions Baseline will be established in

from key suppliers 2020/21
Agriculture
Sustainably source our agricultural products Percentage of key suppliers with robust on-farm Baseline will be established in
biodiversity improvement plans 2020/21
Percentage of key suppliers with robust on-farm Baseline will be established in
water management plans 2020/21

Percentage of key suppliers with robust on-farm Baseline will be established in
soil health improvement plans 2020/21
Marine
Sustainably source all our wild fish Percentage of wild-caught seafood (tonnes) UK: 79%
certified by the Marine Stewardship Council (MSC)
Forests
Achieve zero net deforestation in our sourcing of raw Percentage volume (tonnes) of palm oil Group: 100%
materials by 2020 certified to Roundtable on Sustainable Palm Oil
(RSPO) standard
Percentage of paper/wood products certified by UK: 93%
Forest Stewardship Council (FSC), Programme for
the Endorsement of Forest Certification (PEFC) or
from a recycled source
Percentage of soy (tonnes) for whole animal UK: 100%
protein products meeting our Zero Deforestation
Soy Transition Plan
We are working in partnership with KPIs have been updated to reflect our priority areas for the years ahead. We have provided 2019/20 performance against these new KPIs
Scottish Power to create renewable where we have the data available. A summary of our performance against our previously published 2019/20 KPIs can be found on page 40.
energy, from sources such as wind, via Further data disclosures can be found at www.tescoplc.com/LHPperformance.
our Power Purchase Agreement
Planet
Planet continued
Climate change.
Tackling climate change In order to meet these stretching targets, we prioritised the biggest We achieved our 2020 target early, with 68% of our electricity from
Climate change is the biggest environmental challenge the world emissions hotspots in our operations. In 2015, grid electricity renewable sources across the Group. In the UK, Republic of
faces, impacting our own operations as well as our supply chains. accounted for 65% of our global carbon emissions footprint, Ireland, Slovakia and Hungary we have reached 100% renewable
followed by refrigerant gases at 18% and heating at 10%. electricity through renewable certificates. In these markets, our
In response to this challenge, in 2009 Tesco became the first next step is to ensure that our demand helps increase renewable
business globally to set the ambition to become a zero-carbon Tesco operations 2015 emissions baseline generation. At Group level, our demand is already creating this
business by 2050. In 2017, we committed our business to science- additional renewable energy generation, through power purchase
based climate targets on a 1.50C trajectory, in line with the more Distribution agreements and on-site generation. In the UK, we have installed
stretching aspiration of the Paris Agreement. We also published four wind turbines and equipped 47 stores with solar panels, with
7% Refrigeration
clear milestones in carbon emissions reduction in our own plans to add more in the coming year. In Thailand we have fitted 36
Heating
operations towards our commitment: -35% by 2020, -60% by sites with solar panels.
2025, -85% by 2030 and -100% by 2050. Our commitments and Grid electricity
18%
milestones are against a 2015 baseline. In our UK operations, we Through our switch to renewable energy, we have been able to
expect to reach net zero by 2035. decarbonise much of our gas heating, which is one of our four
emission hotspots. In all Express stores our heating is now
10%
powered by 100% renewable electricity.
65%
Group emissions in tonnes CO2e
18
100%
renewable electricity use in the UK, Republic of
1,129,342
Ireland, Slovakia and Hungary

Electricity and heating
To reduce emissions from electricity we have focused on reducing Refrigeration
our electricity demand and switching our supply to renewable
Refrigeration is our biggest emissions hotspot after electricity and
sources. Since 2006, we have invested over £700m in energy and
1,008,992
we are addressing this through our refrigerant gas transformation

refrigeration efficiency improvements such as LED lighting,
2,053,703
plan. To date, we have switched to natural refrigerant gases and

sub-metering, doors on fridges, aerofoil technology, refrigerant
913,802
other low Global Warming Potential gases in 3,000 stores across

leakage reduction and colleague culture change initiatives. These
Emissions in tonnes CO2e
the Group, including 1,000 in the UK. In the UK, we are on track to
819,984
initiatives have contributed to annual savings of about £200m and

complete this switch by 2035.
over 200,000 tonnes of CO2.
1,202,618
In 2017, we announced our commitment to sourcing 100% of our More information on our climate change
1,045,760
Group electricity from renewable sources by 2030. We also set out commitments and activity can be found at
916,616
a clear roadmap, with milestones and principles, toward this goal. www.tescoplc.com/climate
Transport
Transport is another important emissions hotspot for Tesco.
1,411,758
1,388,168
1,328,543
Our approach to addressing transport emissions covers

1,252,038
distribution, home delivery and customer vehicles:

–– Heavy Goods Vehicles (HGVs) emissions reduction: focus on
maximising HGV capacity (fuller cages; fuller trucks), reducing
distance travelled (fewer miles; route optimisation), fuel Our approach to addressing transport emissions covers
efficiency and alternative fuels (e.g. liquid natural gas distribution, home delivery and customer vehicles. We
2015/16 2017/18 2018/19 2019/20 articulated trucks). ensure our HGVs are as full as possible and their routes are
Base year
–– Home delivery vans emissions reduction: In 2018 we signed up to optimised to minimise the distances travelled.
Scope 1 Scope 2 (Market-based)
the Clean Van Commitment, making a public commitment to
switch to low-emission vans. We have run a successful trial of
Scope 3
electric delivery vans and aim to roll out our first fleet over 2020.
–– Helping customers cut transport emissions: we continue to roll We are engaging with our top 100 suppliers to encourage, support
out the largest retail electric vehicle (EV) charging network in the and report on their emission reduction plans. We gather annual
In 2019/20 we reduced our absolute UK, in partnership with Volkswagen and Pod point. To date we carbon data, produce individual reports with analysis and
recommendations, and also run workshops and provide tools to
carbon emissions (market-based) have installed over 600 charging bays in 200 UK stores.
share learnings on how to decarbonise.
across the Group by 37% to 2.16 Supply chain emissions
Beyond our own operations, we know that a large proportion of our Climate-related risks
million tCO2e, achieving our 2020 overall footprint lies within our supply chain. In 2017, we became signatories of the Taskforce on Climate-related
target of 35% absolute carbon We have set science-based targets for manufacturing and
Financial Disclosures (TCFD). By doing so, we have committed to
assess, mitigate and disclose the future risks and opportunities to
reduction from our operations agricultural supply chains, aligned to the Paris Agreement’s 20C
our business associated with climate change and society’s efforts
compared to our 2015/16 baseline. global warming trajectory:
to respond to these. In line with the TCFD recommendations we
Science-based targets (2015 baseline) 2020 2025 2030 2050 have carried out scenario analyses of our biggest market, the UK,
Tesco operations and are prioritising our UK estate, Produce and Animal Protein
In Thailand we have fitted 36 sites with solar panels as we (1.5 degree) -35% -60% -85% -100%
categories. Next year we will expand our assessment to Prepared
look to source 100% of our Group electricity from renewable Supply chain Food manufacturing Foods and Grocery categories as well as soy – a key commodity in
10 sources by 2030. (2 degree) and production sites -7% -20% -35%
animal feed. More information on TCFD can be found in the Tesco
Agriculture -7% -12% -15%
PLC Annual Report and Financial Statements 2020.
Planet
Planet continued
Agriculture. Marine. Forests.
100%
Our sustainable agriculture agenda aims to promote food As a global retailer Tesco has a crucial role in promoting healthy Forests play a critical role in our global ecosystem. Today, forests of the palm oil used in our
production that is compatible with protecting water resources, oceans and fish stocks and preserving its resources for future cover 30% of the Earth’s land surface, are a vital source of oxygen products in the UK, Republic
biodiversity, climate and soil health. generations. We work collaboratively across the industry to and home to 80% of earth’s biodiversity, including many
responsibly source our seafood. endangered species. They also provide livelihoods for 1.6 billion of Ireland and Central
Our focus on soil health recognises that healthy soil is essential for Europe is RSPO certified
people. The world has already lost approximately half of its forests
farming and food production. Loss of top soil (soil erosion) reduces
over the past century and what remains is increasingly under
the fertility of agricultural land, thereby adversely impacting crop
threat. Preventing further deforestation and degradation is critical We are now rolling out our responsible sourcing programme of
production. While some soil erosion occurs naturally, it can be rapidly
to a sustainable future. wood/paper products to our other International markets.
accelerated by unsustainable farming practices. Addressing soil
health is therefore crucial to food security and sustainable farming. We are committed to achieving zero net deforestation in our Soy
sourcing of raw materials in our Own Brand products, including Soy is a high-quality vegetable protein and a key ingredient in animal
One way to protect soil structure and reduce soil erosion is
palm oil, wood/paper products and soy. feed. With demand for soy increasing, the pressure on valuable
through cover cropping, which can form part of crop rotation,
especially in the production of root vegetables. Palm oil forest ecosystems is growing and it is vital the food industry works
together to ensure that increased demand is met through
In 2018, through the Tesco Sustainable Farming Group, we started Palm oil is a common ingredient used in many food and non-food
increasing yields, and using only existing agricultural land, not by
work with Branston, our biggest potato supplier, on a scheme to products. When sourced responsibly, it is one of the most efficient
clearing more forests.
expand the use of cover crops by potato growers incentivised vegetable oils with the least environmental impact. However, as
through subsidised cover crop seed mixes. In 2019, uptake of the global diets change, demand for palm oil is increasing and putting In 2018, we published our UK Zero Deforestation Soy Transition
scheme more than doubled from 417 hectares in 2018 to 907 more pressure on forests and biodiversity. Plan, outlining our phased approach to achieving zero
hectares. That’s a potential addition of around 27,000 tonnes of deforestation soy in our supply chain, while also promoting wider
In 2019, we continued to ensure that 100% of the palm oil used in
biomass incorporated back into our farmers’ fields, helping to industry transformation. Our 2019 target was to ensure all South
our Own Brand products in the UK, Republic of Ireland and Central
protect the soil. American soy used as animal feed for our Tesco UK Own Brand
Europe was certified by the Roundtable on Sustainable Palm Oil
79% of our UK seafood volume is certified (RSPO). We have now also achieved 100% RSPO certification for all
whole animal protein products, such as chicken, pork and eggs, is
certified zero deforestation. We achieved 100% of this target.
as sustainable by the MSC the palm oil used in our Tesco Own Brand products in Asia,
Beyond certification, our 2025 ambition is for our supply chain to
including our palm cooking oil.
source soy used as animal feed from ‘verified zero deforestation
Our goal is to achieve 100% sustainable wild seafood to the Marine Beyond ensuring the palm oil used in our products is certified, we areas’ – where all soy produced in an entire region is produced
Stewardship Council (MSC) standard across our entire range. Their also expect our suppliers to source from palm importers who only without deforestation.
logo reassures customers that our fish is caught in a sustainable trade in palm oil free from deforestation and exploitation. To
The Cerrado is one of Brazil’s most biodiverse regions as well as its
way that prevents over-fishing and protects the marine enable us to do this, we continue to be leading members of the
main soy-producing region. In December 2019, as a signatory of the
environment. In 2019, 79% of our UK seafood volumes were Palm Oil Transparency Coalition (POTC). The POTC’s annual ranking
Statement of Support for the Cerrado Manifesto, we signalled our
certified as sustainable by the MSC. This coincided with us being of importers enables us to see relative company-wide performance
intention to incentivise soy farmers in the Cerrado to limit
named MSC UK Supermarket of the Year 2019. of the importers in our supply chain. As a member of POTC, we
production to existing agricultural land. This would protect native
have committed to take action based on these annual rankings to
Certification is only part of our wider marine agenda. We have a key vegetation and help the Cerrado to become a verified zero
help promote faster industry progress to protect forests, workers
role to play in supporting proactive fisheries in their sustainability deforestation area for soy. To help achieve this, we became one of
and communities.
journey. We are working in partnership with the charity Sustainable the first companies to join a new industry initiative, Funding for Soy
Fisheries Partnership (SFP) to collect data on our source fisheries, Wood/paper products Farmers in the Cerrado, designed to tackle soy-associated
risk assess them, and work with our suppliers on any improvements Timber can be a sustainable material when harvested responsibly. deforestation in the Cerrado. We have committed £10m in funding
that are needed, often through Fishery Improvement Projects We aim to source all of our Own Brand wood and paper products through the initiative over five years and expect more businesses,
(FIPs). All our wild seafood sources are publicly disclosed and can sustainably by ensuring they are either certified to the Forest foundations and governments to join us. The vital next phase is to
be found online at www.oceandisclosureproject.org. Stewardship Council (FSC) or Programme for the Endorsement of work with the Brazilian soy industry and local experts to develop
Forest Certification (PEFC) standards or from a recycled source. the details of how the incentives mechanism should best work to
As part of our cross-industry collaboration, we helped create the achieve the goal of a zero deforestation Cerrado.
Global Tuna Alliance (GTA) in 2019. The GTA is an independent group In 2019, 93% of all our UK Own Brand wood/paper products and
of retailers and tuna supply chain companies, working to ensure 94% of Central Europe Own Brand wood/paper products were
that tuna ultimately meets the highest standards of environmental FSC/ PEFC certified or from a recycled source. Tesco UK’s progress
We have committed £10m in funding
performance and social responsibility. was recognised in the 2019 WWF Timber Scorecard where we to the Funding for Soy Farmers in the
Alongside our ambitions for wild-caught seafood, we are also topped the rankings, achieving full points. Cerrado Initiative
committed to reducing the environmental footprint of aquaculture.
We continue to explore alternative sustainable feed ingredients
such as algal oil and how it can be incorporated into the diet of fish
that we sell. We have been working collaboratively with our key
salmon suppliers, as our most popular and biggest species by “The Funding for Soy Farmers in the Cerrado
volume of farmed fish, to support them in scaling up the use of initiative is the first step in safeguarding a
algal oil. These farmed microalgae can be grown sustainably at an
industrial scale on land and provide the omega-3 oils needed in the
huge, biodiverse and carbon-rich area of
salmon diet which currently come from other fish, therefore Brazil, while also allowing farmers to continue
offering a solution to reducing the pressure on marine ecosystems. to farm soy sustainably. This is an important
Our suppliers are also experimenting with insect-based feed – a
A suitable cover crop grown just prior to potatoes supports natural dietary component for many fish – to further offset the next step in the Cerrado’s sustainability
biodiversity above and below the ground, helps prevent
nutrient leaching during winter rainfall and makes it easier to
pressure on the seas. journey, but it will only be truly transformative
prepare the soil prior to planting in spring. Farmers from the
All our wild seafood sources are publicly disclosed and
if more organisations come forward and
Tesco Sustainable Farming Group have reported a reduction
in the amount of fuel required for spring cultivations and can be found online at www.oceandisclosureproject.org support it.”
lower fertiliser use by at least 10%.
Dave Lewis, Group Chief Executive
Places
Places.
We are proud to be a part of thousands of communities around the
world and are committed to helping each one thrive, socially and
economically. From providing employment to local people and
working with local businesses to helping community groups and
charitable causes, we want to make a big difference. Our priority is
to continue to support the local causes that our colleagues and
customers care about and our national programmes allow us to
respond to these issues at a local level.

Places
To support the projects and causes that matter to the Number of local projects or causes supported Group: 22,978
local communities where we operate Corporate giving (£) Group: £79.2m
Colleague and customer fundraising (£) Group: £19.7m
KPIs have been updated to reflect our priority areas for the years ahead. We have provided 2019/20 performance against these new KPIs
where we have the data available. A summary of our performance against our previously published 2019/20 KPIs can be found on page 40.
Further data disclosures can be found at www.tescoplc.com/LHPperformance.
Places
Places continued
Supporting communities. Community grant programmes

We’re committed to supporting projects and causes that bring
benefits to the communities where we operate.
We have set up community grant programmes in the UK,
Republic of Ireland and Central Europe which put the power in
Supporting communities during a crisis
the hands of our customers to choose which local projects Tesco
Our value of ‘every little help makes a big difference’ is never more supports financially. Voluntary and community organisations can
important than when it comes to providing support for people in apply for grants to cover a broad range of projects, from improving
crisis within our communities. We are committed to contributing community buildings to buying new sports kits, through our Bags of
where we can, whether through offering immediate solutions to Help scheme in the UK, Community Fund programme in Ireland and
support those in emergencies or by providing funds to aid You Choose, We Help programme in Central Europe. Customers
communities in solving longer-term challenges. decide which local projects we support, by voting using tokens
In 2019, the UK witnessed unprecedented winter rainfall which left handed out in store. We proudly announced that we will be
many communities flooded and in need of support. Rhondda Cynon introducing Bags of Help in Northern Ireland in 2020. This
Taf in South Wales was one of the areas particularly badly hit, with dedicated grant will see community groups share more than Tesco is celebrating 19
more than 600 households flooded. Responding to an appeal by £125,000 across the year.
years in partnership with
Rhondda Cynon Taf Council we organised an emergency food
collection at short notice for those households affected. We
We have supported more than 27,000 projects with £80m worth Cancer Research UK’s (CRUK)
of grants since we launched Bags of Help in the UK in 2016. In
collected donations at our Pontypridd Extra, Talbot Green Extra Ireland, the Tesco Community Fund has supported over 16,000 Race for Life.
and Aberdare stores with Tesco topping up all customer donations community projects with over €4.6m since its launch in 2014.
As well as donating food, this year we have also supported Over that time, 340,000 of our colleagues have taken part in
to the appeal by 20%. This resulted in 40 cages of long-life food Over the past three years we have supported more than 4,000
129 national and local initiatives in Malaysia through our 5k, 10k and Pretty Muddy Race for Life events, which are held
being donated to the council for distribution to people whose local groups in Central Europe with our You Choose, We Help
School Adoption programme. Colleagues spent a total of 516 across the UK. Since 2002, we have contributed £55m to fund
homes had been flooded. community grants. In total, more than 99 million customer
volunteer hours supporting over 57,000 underprivileged CRUK’s life-saving research into over 200 types of cancer that
students across Peninsula Malaysia. In Thailand, we have run votes have been cast in the programme, with more than 1 in 3 affect men, women and children.
a food donation campaign for two consecutive years customers across the region casting a vote. We also rolled out our
Our nationwide fundraiser event “Tesco Turns Pink” takes
providing nutritious food to underprivileged children in colleague volunteering programme, enabling colleagues to spend
place each year celebrating Race for Life. Thousands of our
schools located in all 77 provinces of Thailand. two half-day shifts a year volunteering to support a local group
colleagues dress up in pink and raise funds to support CRUK.
involved in the You Choose, We Help programme, a local
As part of this, we invite CRUK volunteers to our stores to
foodbank or a local group of their choice.
raise funds and encourage customers to sign up to a local
£80m
Race for Life event.
Giving back to our communities Working together we can make a big difference in the
We are committed to tackling food waste and this year we fight against cancer.
continued to support charities by redistributing surplus food.
worth of grants awarded since we launched
In 2015 we launched our Community Food Connection scheme
£55m
Bags of Help in the UK in 2016
which is now the biggest supermarket food redistribution scheme
in the UK. Using the FoodCloud app, community groups can link
with our stores across the UK and find out if any surplus food will To celebrate our Centenary year, we launched two additional
projects: our Bags of Help Centenary grants in England, Scotland
be available at the end of each day. They are then invited to collect
and Wales and our Tesco Centenary Fund in Northern Ireland.
donated to fund CRUK’s
the food, free of charge.
These Centenary funds provided bigger grants for larger projects life-saving research
Through Community Food Connection we with £50,000 being shared between community groups in England,
Scotland and Wales and £100,000 being awarded to community
have donated 48 million meals to more projects in Northern Ireland.
than 7,000 charities and organisations.
Every year we encourage customers to support our food charity

partners FareShare and the Trussell Trust by donating long-life
food during our pre-Christmas Tesco Food Collection. Tesco tops
up the value of all customer donations by 20%. We also operate
permanent collection points, collecting donations year-round at
€5m raised for Temple Street more than 500 of our large stores. Thanks to the generosity of our
Children’s Hospital customers, we have collected more than 72 million meals-worth of
This year, Tesco Ireland reached an impressive fundraising food for the two charities to support them in their work to date.
milestone, having raised €5m over the course of its five-year We have long-term partnerships with foodbanks in Central Europe
charity partnership with Temple Street Children’s Hospital. and currently redistribute unsold surplus food from all our stores in
Tesco Ireland chose Temple Street as its Charity Partner in Slovakia and the Czech Republic, as well as 95% of our stores in
2014 following a nationwide, colleague-led selection process. Hungary and 78% in Poland. We are the largest supporter in the
Since then the fundraising activity has grown to become one region of annual food collections and provide a financial top up to
of the largest fundraising achievements in the private sector supplement shoppers’ donations. In the run up to Christmas 2019
in Ireland. Throughout the course of this partnership, the we collected a record-breaking 1.4 million meals. In total, combined
funds raised have helped the hospital to buy over 270 pieces with our food collection, we have donated the equivalent of 100
of vital medical equipment for patients, including ultrasound million meals to charities and community groups in Central Europe.
scanners, patient monitors and respiratory equipment. In Malaysia, we encouraged customers to contribute food
In January 2020, we announced a further one-year essentials, such as rice and cooking oil, to support their
extension to our partnership, aiming to raise an additional communities during festive seasons such as Hari Raya and Chinese
€1 million to buy much-needed equipment to aid the New Year. In 2019, we were able to distribute 476 sets of food
treatment of sick children. boxes for Eid and 1,350 sets for Chinese New Year – the equivalent
of 104,000 meals in total.
Spotlight
Putting the FUN into

Fundraising.
In the summer of 2019, we launched our biggest ever

fundraising campaign to support the life-changing work of our
three national health charity partners: Cancer Research UK,
the British Heart Foundation and Diabetes UK.
“The life-saving work of Cancer Research

49.8 million steps
Dance Beats brought the nation, and our entire UK business, We created fundraising packs to help communities create their
together for three days of dance events in all our stores. own Dance Beats events and invited people to show off their
dancing online. More than 10,000 people accepted the challenge, UK, the British Heart Foundation
The Dance Beats Super Group, fronted by professional dancers
Oti Mabuse and Kimberly Wyatt, pop star Aston Merrygold, and
posting their versions of the Dance Beats signature ‘Pump and and Diabetes UK would not be possible
Slide’ dance move with Tesco donating £10 per post. Thousands of dancers generated an
former The Saturdays singer Una Healy, helped kick off the without the support of the public so we average of 1.66 million steps an hour
campaign with a spectacular flash mob performance on 18 July. The event culminated with an epic dance marathon relay at
The group also included Tesco colleagues as well as inspiring Wembley Stadium where almost 5,000 colleagues and customers want to say a huge thank you to the (10,000 steps per dancer) across the
representatives from our health charity partners. shimmied to everything from pop and indie to house and hip-hop thousands of Tesco colleagues and epic 30-hour Wembley challenge
in one-hour shifts, with a baton passing seamlessly between groups
Over the next three days customers and colleagues held
of participants in a continuous Guinness World Records® beating
customers across the UK who took part
fundraising events in-store where they had fun, showed off
their moves and raised money to tackle the UK’s biggest
30-hour dance relay. in Dance Beats.”
health challenges. Through Dance Beats, an incredible £2m was donated to the health
£2m
charity partnership based on the three days of activity. This was
part of a total donation of £10.8m Tesco has contributed to these Michelle Mitchell, Cancer Research UK CEO
charities since the partnership began in 2018. Simon Gillespie, British Heart Foundation CEO
Chris Askew, Diabetes UK CEO
donated to the health
charity partnership from
the Dance Beats event
Performance
2019/20 KPIs.
We’re committed to reporting our performance, data and methodology every year in a transparent way. The below table summarises our
year-on-year performance against previously published KPIs. As outlined on page 5, this year we have completed a review and our updated
KPIs for future reporting are presented at the beginning of each pillar section. Further information and commentary on our KPIs and
methodology can be found at www.tescoplc.com/LHPperformance.
Performance Performance
Action KPI 2017/2018 2018/2019 2019/2020 Action KPI 2017/2018 2018/2019 2019/2020
People. Sourcing continued

–– To have a competitive total reward package Tesco average pay versus market median N/A UK: 1.05 UK: 1.08 –– Ensure international human rights standards Percentage of high-risk tier 1 supplier sites having UK: 94% UK: 98% UK: 97%
that colleagues value are respected at all our suppliers’ sites had audit in the last year
–– Invest in training for our colleagues so they Percentage of colleagues that agree ‘I have the Group: 76% Group: 77% Group: 77% Percentage of high-risk tier 1 supplier sites where UK: 61% UK: 63% UK: 62%
can increase their skills and digital confidence opportunity to learn and develop’ critical non-conformances have been identified
in order to have access to a greater number Percentage of high-risk tier 1 supplier sites where UK: 82% UK: 89% UK: 97%
Number of managers who have received N/A Group: 17,156 Group: 38,174
of roles and develop their careers for the critical non-conformances have been identified
line manager development training
longer term and mitigation or remediation processes
–– Provide opportunities to help young people Number of opportunities provided for young UK: 915 Group: 2,373 Group: 8,594 implemented on time
develop their employability skills and start people UK: 766 UK: 821 –– Focus on the most serious risks to workers Number of collaborative initiatives to address N/A Group: 24 Group: 25
their careers throughout our supply chains, working entrenched risks
–– Introduce an updated suite of contracts Percentage of colleagues that agree ‘I am able to N/A Group: 82% Group: 85% transparently with NGOs, unions and others to
and new technology to give colleagues work flexibly around my life’ identify and address them
certainty, greater flexibility and control over –– Support sourcing communities facing complex We currently support sourcing communities in Southern Africa through the Tesco and Community Fund, in Assam
their own work schedules social and environmental challenges tea-growing communities through the Improving Lives Programme, and through a range of programmes in our
–– Continue to build an inclusive culture where Percentage of colleagues that agree ‘There is an Group: 82% Group: 84% Group: 81% non-food supply chain. To date, 640,259 people have been positively supported through these programmes.
everyone has the opportunity to get on inclusive culture at Tesco where people are
accepted for who they are without judgement’
–– Reduce supply chain carbon emissions Percentage reduction in manufacturing supply UK: -4% UK: -6% UK: -12%
by 7% by 2020 chain emissions (baseline 2015/16)
Percentage female share of total workforce & by Group: Group: Group:
Percentage of key suppliers measuring agricultural N/A UK: 50% UK: 87%
work level Total: 57% Total: 56% Total: 56%
emissions
Board: 23% Board: 31% Board: 31%
Directors: 25% Directors: 23% Directors: 25% –– Achieve zero net deforestation in our sourcing Percentage volume of palm oil certified to UK 100% UK: 100% UK: 100%
Directors & Directors & Directors & of raw materials by 2020 Roundtable on Sustainable Palm Oil standard ROI: 100% ROI: 100%
Managers: 37% Managers: 37% Managers: 37% CE: 100% CE: 100%
Asia: 37% Asia: 100%
Average gender pay gap (mean and median UK: 11.3% mean UK: 11.3% mean UK: 12.6% mean
average percentage) 8.9% median 8.9% median 8.0% median Percentage volume paper/wood products certified UK: 82% UK: 87% UK: 93%
to FSC/PEFC or from a recycled source CE: 94%
–– Help colleagues look after their physical and Percentage of colleagues that agree ‘Tesco helps Group: 63% Group: 69% Group: 76%
mental wellbeing so they can be at their best at me lead a healthy lifestyle’ Percentage volume of soy compliant with Tesco’s N/A UK: 77% UK: 100%
work and home Zero Deforestation Soy Transition Plan
Community. –– Sustainably source all our wild fish Percentage of wild-caught seafood certified by UK: 70% UK: 72% UK: 79%
MSC (tonnes)
–– To facilitate food surplus donation Percentage of stores that are part of our food Group: 29% Group: 64% Group: 67%
programmes in all our stores in order surplus donation programme –– Improve water and biodiversity impacts in key Number of key suppliers with sustainable UK: 11 UK: 25 UK: 25
to provide meals to those in need agricultural regions agriculture projects underway
Equivalent number of meals donated through Group: Group Group:
food surplus redistribution 48 million 62.7 million 59.4 million –– Treat all animals in our supply chain humanely Percentage of audited sites that meet our animal UK: 85% UK: 86% UK: 85%
at all life stages welfare standards
–– Support the projects and causes that matter Number of local projects or causes supported Group: 17,849 Group 29,819 Group: 22,978
to the local communities in every community
Corporate giving (£) Group: £57.6m Group £88.6m Group: £79.2m
Food waste.
where we operate
–– No food that is safe for human consumption Percentage of food surplus safe for human N/A UK: 81%* UK: 77%*
Colleague and customer fundraising (£) Group: £19.6m Group: £19.9m Group: £19.7m will be wasted inside our UK retail operation consumption redistributed to humans or animal
Health. –– Halve food waste in our own Percentage change in tonnes of food wasted as UK: +15% UK: -3% UK: -9%
operations by 2030 percentage of tonnes sold compared to baseline ROI: +12%** ROI: -1% ROI: +1%
–– To partner with leading health charities Together with our health charity partners we conducted colleague insight to help us shape a new colleague
year (UK:2013/14, ROI & CE: 2016/17, Malaysia & CE: -28% CE: -43% CE: -58%
to help colleagues and customers make health programme. Further insight and a trial will follow later in 2020. We have provided health information
Thailand: 2018/19) Malaysia: -27%
healthier choices through our colleague wellbeing weeks and various trial interventions have taken place during 2019 with both
Thailand: -11%
colleagues and customers. Alongside this partnership we continue to work with other health experts to
promote health to colleagues –– Work in partnership with our 27 Own Brand suppliers representing over 50% of our fresh food sales in the UK have reported food waste data
suppliers to halve food waste in our for their own operation in 2019. We are able to compare year-on-year data for 21 of the 27 suppliers. Of these, 15
–– To help improve diets through encouraging As part of our Peas Please commitment, 42% of our ready meal range now contains 1 of 5 a day.
supply chains by 2030 have reported a reduction in their food waste intensity – ranging from a 1% to a 64% reduction compared to 2018.
the consumption of fruit and veg In 2019, we gave away our 100 millionth piece of free fruit for kids in store and our fourth annual health event
for customers and colleagues was themed ‘Easy Ways to Eat More Veg’. Our health ambassador Jamie Oliver –– Help halve global household food We continue to progress a range of actions to help customers waste less and save money including ending ‘buy
developed two veg-based recipes and also a meal planner to help customers boost the veg content of waste in the markets where we have one, get one free’ promotions on fresh produce and removing best before dates from over 180 fruit and
traditional recipes retail operations by 2030 vegetable products
–– To help remove cost barriers to During our health event in July we promoted products lower in sugar, fat and salt through our ‘helpful little Packaging.
healthier eating swaps’ basket, which cost 11.6% less than a regular basket. We’ve also introduced Fresh 5 all year round;
fantastic offers on 5 lines of fresh produce which change every 2 weeks –– Our packaging will be fully recyclable Percentage weight of all Own Brand packaging UK: 83% UK: 83%***
by 2025 meeting ‘widely recycled’ criteria
–– To make Own Brand food and drink recipes Percentage change in volume of key nutrients for UK: UK: UK:
healthier, provided there is no impact Tesco Own Brand products below/above Own Sugar: Sugar: Sugar: –– End the use of hard-to-recycle materials from Tonnes of hard-to-recycle materials (materials N/A UK: 2,914 tonnes UK: 5,338 tonnes
on taste or quality Brand volume growth, from 2015 baseline 0.3% below 3.6% below 7.1% below our UK packaging by the end of 2019 on our ‘red list’) removed from our Own Brand
Salt: Salt: Salt: packaging
0.8% below 2.2% below 4.3% below –– All paper and board used will be 100% We have been working with our supply base to understand the simplest way of measuring this. Our new KPI for
Fibre: Fibre: Fibre: sustainable by 2025 2020/21 onwards will be the percentage of paper and board packaging that is certified FSC or PEFC or from a
7.9% above 10.8% above 8.7% above recycled source
–– To raise awareness of healthier choices Percentage of customers who agree ‘Tesco helps UK: 55% UK: 55% UK: 57% –– Halve packaging weight by 2025 Percentage reduction in average Own Brand UK: 31% UK: 29%***
me lead a healthy lifestyle’ pack weight per unit sold, including loose volumes,
Sourcing.
from 2007 baseline

–– Lead the industry in addressing the sustainability We aim to lead the industry in addressing the sustainability challenges in our supply chains, starting with Climate change.
challenges in our supply chains starting with our our Top 20 products and ingredients. An update on our progress against our top 20 can be found at –– Reduce absolute carbon emissions from our Percentage reduction of GHG emissions Group: 24% Group: 31% Group: 37%
most important products and ingredients www.tescoplc.com/sustainability operations from 2015 levels (-35% by 2020,
–– Build trusted partnerships with our suppliers Percentage of suppliers satisfied with working Group: 75% Group: 78% Group: 78% -60% by 2025 & -100% by 2050)
with Tesco (Supplier viewpoint) –– Source 65% of our electricity from renewable Percentage electricity from renewable sources Group: 55% Group: 58% Group: 68%
sources by 2020 and 100% by 2030

** 81% relates to performance in Feb 2019 whereas the 77% figure is an annual figure for 2019/20
40 Tesco PLC Little Helps Plan 2019/20 ** We have restated the 2016/17 ROI food waste resulting in changes to stated performance compared to last year Tesco PLC Little Helps Plan 2019/20 41
*** We report a year in arrears for packaging KPIs
Performance
Indices, benchmarks and

scorecards.
Indices, benchmarks and scorecards provide us with an external perspective on our
sustainability performance and transparency and helps us track and assess our progress.
They provide us with insight into emerging issues and help us better understand our
stakeholders’ interests and concerns. A non-exhaustive list of some of the benchmarks
we were selected to participate in and/or chose to complete during 2019/20 are set out
below. They are grouped into a broad range of themes.
Indices/benchmark/scorecard Indices/benchmark/scorecard
CDP Over the past 15 years CDP has engaged investor and business audiences on environmental Workforce Disclosure Initiative The Workforce Disclosure Initiative applies focus on company workforce data and
issues, providing analysis and scoring of companies. management policies across business operations, from direct employees to those working
Tesco participates in the annual CDP surveys relating to climate change and forests. This year in the supply chain.
we improved our climate change score to a ‘B’ rating and within the forests survey we We participated for the first time in 2019 achieving an overall disclosure score of 55%,
achieved a ‘B’ rating for timber, palm oil and soy and a ‘C’ rating in cattle products. which is above its average indicators for all participating companies (118) and the sector
and country.
Greenpeace Greenpeace undertakes an annual assessment of the UK’s largest supermarkets and their Oxfam Behind the Barcodes Oxfam undertakes an annual assessment of UK-based supermarkets and their policies and
Checking out on plastics contribution to plastic waste in the ‘Checking out on plastics’ survey. practices with regard to human rights within the supply chain through its Behind the
From the 10 supermarkets analysed, Tesco was ranked in 6th place in 2019 with a Barcodes Supermarket Scorecard.
score of 43%. Tesco scored 38% in the 2019 survey which was the highest score for a UK supermarket.
Business Benchmark on The Business Benchmark on Farm Animal Welfare is the leading global measure of farm MSCI MSCI provides environment, social and governance (ESG) performance ratings of 7,500
Farm Animal Welfare animal welfare management, policy commitment, performance and disclosure in food companies using publicly available information to help investors make broader
companies. Established in 2012, it enables a range of groups including investors to understand responsible investment decisions.
corporate practice and performance on farm and animal welfare.
As of 2019, Tesco PLC received an MSCI ESG Rating of AA.
In 2019 Tesco retained the Tier 2 band, indicating how integral farm animal welfare is to our
business strategy.
Access to Nutrition Initiative Access to Nutrition Initiative (ATNI) focuses on the food and beverage sector and its role in FTSE4Good Applying analysis of a broad range of ESG themes, FTSE4Good provides an indices
making healthy food affordable and accessible to consumers. In a recent report, ATNI performance on the UK’s FTSE 100 companies based on publicly available data points.
assessed 10 of the largest UK supermarkets on diets, health and nutrition using publicly
In 2019 Tesco were included in the FTSE4Good UK50.
available information.
Tesco scored 30%, a joint third position in the survey.
Corporate Human Rights Benchmark Corporate Human Rights Benchmark examines and compares human rights practices and
procedures of 200 of the largest publicly listed companies, globally.
Tesco actively engages with the Corporate Human Rights Benchmark survey and supports
the principles of its ambition. Following completion of the 2019 survey, we achieved a
banding score of 40-50% under the Agricultural Products and Apparel sector
methodologies. This placed us 2nd of the 12 international food retailers benchmarked globally.
Know the Chain Know the Chain assesses 38 companies in the food and beverage sector every two years,
benchmarking them across seven forced labour themes.
The latest analysis in 2018 ranked Tesco 4th out of the 38 companies with a score of 60/100.
The report noted our leading practices on matters such as risk assessment, supplier training
and auditing of lower-tier suppliers.
Tesco PLC
Tesco House
Shire Park
Kestrel Way
Welwyn Garden City
AL7 1GA
www.tescoplc.com

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Little Helps Plan.

Learn more about our Little Helps Plan online at

Group Chief Executive statement

Little helps make a

“The Little Helps Plan captures our approach

Little Helps Plan.

Serving shoppers a little better every day.

People. Product. Planet. Places.

Our approach continued

To create value for our stakeholders.

Our People pillar covers:

• Employment and skills

Our updated key performance indicators.

Percentage of high-risk tier 1 supplier sites UK: 62%

Percentage of high-risk tier 1 supplier sites UK: 97%

Employment and skills.

In 2017 in the UK we launched our Light Goods Vehicle (LGV)

Diversity and inclusion.

the number of women, girls and boys being helped,

F&F is our in-house fashion brand. Each year we sell more

Our product pillar covers:

Our updated key performance indicators.

Health and diets ​ ​

Percentage of key suppliers reporting animal UK: 88%

Percentage of cage-free eggs UK: 82% (shell eggs)

Percentage of sows free from confinement UK: 100% (stall free)

Tackling food waste in our own operations

Packaging plays an important role in protecting products and

Health and diets. Animal welfare.

In 2018, Tesco and WWF-UK embarked upon a four-year

Our Planet pillar covers:

Our updated key performance indicators.

Percentage reduction in agriculture emissions Baseline will be established in

Ireland, Slovakia and Hungary

we are addressing this through our refrigerant gas transformation

plan. To date, we have switched to natural refrigerant gases and

other low Global Warming Potential gases in 3,000 stores across

initiatives have contributed to annual savings of about £200m and

Our approach to addressing transport emissions covers

distribution, home delivery and customer vehicles:

Agriculture. Marine. Forests.

Our updated key performance indicators.

Supporting communities. Community grant programmes

Every year we encourage customers to support our food charity

Putting the FUN into

In the summer of 2019, we launched our biggest ever

“The life-saving work of Cancer Research

People. ​ ​ ​ ​ Sourcing continued ​ ​ ​ ​

Indices, benchmarks and

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Health and diets

People. Sourcing continued