@Risk

UK supermarket giant Tesco wants to become a zero-carbon business by 2050 –without purchasing offsets. And in order to reach that goal, the company announced ambitious plans last week to cut the carbon footprint of its entire supply chain by 30% by 2020.

In addition to focusing on its supplier network, Tesco also says it will:

• Spread green systems and technology pioneered by Tesco businesses in developed countries to its operations in developing countries.

• Work with others to identify and communicate clear ways in which customers can halve their personal and domestic carbon footprints by 202.  (Interesting note here: Tesco is introducing an ingenious new program called “Buy One Get One Free – Later.” With this program, customers will be able to pick up their free product when they need it –which the company says will help keep waste down.)

• Create a Tesco Home Energy and Emissions Service to provide a one-stop solution for customers seeking to cut emissions and bills at home through energy saving and use of renewable energy.

• Extend green Clubcard points to encourage environmentally friendly, carbon-conscious purchasing.

• Support a universal accountancy standard for carbon in products and services which will provide a basis for carbon co-operation between businesses and promote carbon numeracy among consumers.

Remember, Tesco has always been ahead of the curve when it comes to sustainability.  Tesco was the first major retailer to introduce carbon labeling on products, and Tesco shoppers can now find labels on 114 everyday items. The company plans to calculate the carbon footprint of 500 more products by the end of the year.

For Tesco CEO, Sir Terry Leahy, the company’s commitment to sustainability is a fundamental component of its overall risk management strategy.

What’s more, it also helps Tesco take advantage of what he describes as a “fantastic opportunity.”

“Of course, we are taking action because it is the right thing to do, because we don’t want our children and grandchildren to face the chaos of climate change. A low-carbon strategy is also vital if we are to minimize the risk to our business: the physical threat of climate damage to our supply chains, the resulting economic damage; and the serious effects of rushed and inefficient regulation if we fail to act in time and governments are forced to take draconian action,” Leahy explains. “But this is about more than just mitigating risk. For Tesco a revolution in green consumption is a fantastic opportunity: once and for all to break the link between consumption and emissions, and in doing so to satisfy a new consumer need, and grow our business. That is the goal of a sustainable business.”