TESCO : Eco-buildings case study

Helen Fleming

Climate Change Director

17 November 2010

Why do we have a Climate Change Strategy?

Reducing emissions is the right thing to do for a responsible business seeking sustainable profits

It also:

• Conserves energy and saves money

• Delivers energy security

• Delivers better resource efficiency

• Meets the growing expectations of our customers

Tesco UK customer footprint

Tesco UK supply chain footprint

Tesco UK direct footprint

2.6 Mt 26 Mt 228 Mt

Halve emissions impact by

2020

Reduce emissions by 30% by

2020

Help customers

halve emissions

by 2020

Our climate change strategy

• We have written to over 1000 suppliers to ask them to join us in reducing carbon in the supply chain

• Hosting a series of events to share information and experiences with suppliers

Supplier engagement

• We are piloting a Knowledge Hub with the Sustainable Consumption Institute to share best practice across our supply chain and to create an online community to work together to solve problems

Sharing best practice

Industry wide collaboration

• We will address long-term emissions challenges through our leadership of the Consumer Goods Forum Sustainability Pillar

• Current priorities are:

– Deforestation

– Refrigeration

– Common measurement systems

Greening our supply chain

Helping customers to make greener choices

Nov ’06, Wick – 60% Nov ’06, Wick – 60%

Reducing our direct footprint: Environmental stores

Apr ‘07, Shrewsbury Apr ‘07, Shrewsbury

– – 50%50%

Jan ‘09, Cheetham Hill Jan ‘09, Cheetham Hill – 73%– 73%

Dec ‘05, Diss – 29%Dec ‘05, Diss – 29% Apr ‘06, Swansea Apr ‘06, Swansea – 36%– 36% Jun ’08 Hinckley – 52%Jun ’08 Hinckley – 52%

Dec ’09, Ramsey – 100%Dec ’09, Ramsey – 100%

What do we mean by zero-carbon?1,600 tCO2e

FakenhamRamsey

Direct emissions from Fakenham vs. Ramsey

0 tCO2e

Zero-carbon store - Ramsey

2006/7 baseline store - Fakenham

Energy efficient designRooflights LED lighting in car park

Mixed mode ventilation Lobby

55% CO 55% CO 2 2

remainingremaining

Rethinking refrigeration

30% CO2 30% CO2

remainingremaining

• Natural Refrigeration

• Hydrocarbon chillers

• Specially designed doors on fridges

Renewable energy generation

0% CO 2

remaining

• 250kW electrical power to the store

• Provides hot water for store

• Heats store

Additional measures

Reducing emissions from existing stores

34

36

38

40

42

44

46

2006 2007 2008 2009

Kg

CO

2/ft

2

Group reduction of energy use per square foot to date

Incentives & Barriers

• Planning

• Taxation

• Renewable energy incentives

• Carbon pricing

What next?

• Next generation zero-carbon stores

• Onsite & offsite renewable technology

• Zero-carbon business by 2050