Tesco

Leading retailer in 2008 global Accountability Rating

Tesco is the highest scoring retail and fast-moving consumer goods company in this year’s Rating.

It recognises a large number of non-financial impacts facing the company and its sector, and is responding effectively to a large number of these challenges. Its achievements in addressing environmental impacts are for example: 

• Reducing its carbon intensity by 4.7% compared with 2006.
• By the end of 2008, its UK energy use per square foot will be half what it was in 2000.
• In 2007, 70% of waste was recycled and carbon emissions from distribution systems were reduced by 4.7%.

Tesco does not only provide evidence of good performance in a number of identified focus areas, but also outlines good approaches to governance and performance management systems for non-financial impacts.  The governance arrangements are particularly noteworthy as non-financial impacts are incorporated at board level through a director and board committee holding responsibility for such issues. This is not often seen throughout the G100.  In addition, Tesco’s Balanced scorecard ’steering wheel’ provides an excellent approach to the management of CR issues as it sets out priorities for the six key elements of the business. 

Other commendable initiatives include:

• An award-winning plan to help the UK dairy industry launched in 2007. The Tesco Sustainable Dairy Group provides farmers with guaranteed price for milk.
• A ‘closed-loop’ recycling system. Cardboard is recycled in the UK and finds its way back into stores as product packaging within 14 days.
• Recognition of the need for more detailed research into the impacts of biofuels.