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1、Serving our customers,communities and planet a little better every day.Tescos economic and social impact 20252Contents.Foreword|4Executive summary|5Our impact|8Customers|19Communities and colleagues|27Planet|35Overview of Tescos Impact|44Methodology|453About us.The value our businesses bring to cust

2、omers and communities:Booker is the UKs leading food and drink wholesaler,serving independent retailers,caterers and small businesses from over 200 locations across the country.Booker is committed to delivering the best choice,price and service for its customers and owns the Budgens,Londis and Premi

3、er symbol group brands.www.booker.co.ukOne Stop is a retail convenience business with more than 1,000 shops across the country,including more than 300 franchise stores.One Stop has a mission to provide convenience and accessibility for all its customers,based from quality products and services at gr

4、eat prices.www.onestop.co.ukdunnhumby is a global leader in customer data science.It works with brands,grocery retail,retail pharmacy and retail financial services to provide technology,software and consultancy services.Its insights help retailers and brands to truly put the customer first,through e

5、ngaging experiences which enhance loyalty and Tesco is a leading multinational grocery retailer which aims to serve customers affordable,healthy and sustainable food.We have again focused on delivering great value and quality for our customers across large stores,convenience and Tesco Mobile is a jo

6、int venture between Tesco and Virgin Media O2 established in 2003.With over 5 million customers,were the UKs biggest mobile virtual network operator.Were driven by our purpose to care for human connection.Serving local communities in over 500 phone shops across the UK,we keep our customers at the he

7、art of everything we do to deliver award-winning customer Where we operateStores in the United Kingdom3,786Stores globally4,506Stores in Slovakia169Stores in the Czech Republic184Stores in the Republic of Ireland170Stores in Hungary197Tesco Insurance and Money Services began life in 1997 as Tesco Ba

8、nk and now helps more than two million customers protect what matters to them most across home,travel,pet and car insurance.We are also the second largest provider of travel money and have the third largest cash machine network in the UK with more than 3,400 ATMs in over 3,000 Tesco and One Stop 4Fo

9、reword.At Tesco,we are driven by a core purpose to serve our customers,communities and planet a little better every day.Our belief that every little helps has shaped our response to the extraordinary pressures of recent years,from the pandemic to the cost of living crisis.For our customers,whose inc

10、omes have been squeezed by inflationary pressures across the economy,we have maintained a laser-like focus on value,meaning that we have been the cheapest full-line grocer for over two years-cutting the prices of more than 4,000 products by an average of 12%in 2023/24.For our communities,we donate m

11、ore of our pre-tax profits to charity than any other FTSE100 company,and since 2016 our partnership with Fareshare has seen us redistribute more than 220 million meals to those in need.For our planet,we have continued to lead the industry and procure 100%of our electricity from renewable sources as

12、we progress towards our 2035 target for carbon neutrality in our own operations.As the UKs largest private sector employer,we know that our business is nothing without our hardworking colleagues and we are committed to supporting them at all stages of their career.Each year we actively bring tens of

13、 thousands of people into the world of work,developing the next generation of talent and equipping them with future-fit skills.During these difficult times,we have increased wages for our store staff by more than 25%since April 2022 and introduced a 24/7 Virtual GP service for colleagues and their f

14、amilies.The same is true of our suppliers.We are proud to be UK agricultures biggest customer and thats why we have provided significant support to the sector in recent years and why we continue to invest in its future through our Tesco Sustainable Farming Groups(TSFGs)and our Future Farmer Programm

15、e.We recognise that with this substantial national footprint comes a unique role for Tesco,for the country as a whole and the local communities we call home.This report seeks to set out the sheer scale of the impact we have been able to have by harnessing Tescos vast network of stores and colleagues

16、.In 2023,Tescos total contribution to the UK economy was 55.5bn,measured as Gross Value Added(GVA).Our stores act as an engine for growth,employing around 450 people and contributing an average of 85m GVA per parliamentary constituency(see methodology).Scaling this impact to a national level,we are

17、directly partnered with over 3,400 UK suppliers and we are the UKs third largest corporate taxpayer contributing enough tax to fund over 1,900 schools or 81 million GP appointments.But more than that,this report also shows how we work closely with hundreds of Tesco Community Champions to give a help

18、ing hand where we can and how since 2016 we have awarded over 120 million in grants to more than 70,000 community projects.It is Tesco who has stepped in to provide vital postal and health services after their retreat from the high street.As demand for charitable support has risen,we have introduced

19、 the Tesco Stronger Starts scheme to fund projects aimed at young people and the nations nutrition.Since July 2023,Stronger Starts has supported 6,000 community projects and over 700,000 children.As the impacts of climate change become clearer,Tesco is helping customers rise to the challenge,install

20、ing over 2,700 electric vehicle charging points across the country the largest network of any UK supermarket.We hope this report serves as a guide for how Tesco can work alongside policymakers to improve living standards for all from building skills and career opportunities,to tackling climate chang

21、e and creating an affordable,healthy and sustainable food system.We also hope it underlines the breadth and depth of our impact at the local level,where Tesco stands ready to continue playing its part.Ken Murphy Chief Executive Officer5Executive summary.From day one,Tesco has believed in making high

22、 quality food affordable for everyone.When Tesco founder Jack Cohen opened his first market stall in 1919,he sold surplus groceries and quickly drew in customers with the value he was able to offer.He shaped the Tesco brand around this unparalleled value,with low-cost Tesco Tea sold as his first own

23、-brand product in 1924.To protect Tescos reputation for affordability as the brand grew,Jack knew he would have to innovate.Since he opened our first store in Edgware in 1929,Tesco has been at the cutting-edge of the UK food sector.We opened the first modern food warehouse in Britain in 1934.A decad

24、e later,we changed the face of shopping by introducing self-service to British customers.By the 1960s,wed opened the first Tesco superstore,creating a space for customers to buy non-food items alongside their weekly shop.Over the last century,Tesco has become the UKs largest retailer.We have built a

25、 nationwide network of close to 3,800 stores and around 300,000 people.As Tescos footprint has grown,our stores have become an established feature of high streets and communities across the UK.While our stores are still the place millions of customers visit for their weekly food shop,they have becom

26、e so much more.They are somewhere parents take their kids to get uniforms ahead of their first term at school.Somewhere commuters can stop to refuel.Somewhere our customers can consult a pharmacist or have their eyesight tested.As Tesco has grown,we have adapted to the lives of our customers.Most re

27、cently,we have rolled out our Whoosh rapid delivery service to 1,500 stores-offering store to door groceries in as little as 30 minutes.Throughout this growth and change,we have never forgotten the underlying reason for our success:our commitment to offering affordable and high-quality products ever

28、y day.It was for this reason that to mark the 30th anniversary of the Tesco Express format,we opened the Burnt Oak Tesco Express,a stones throw from the site of Tescos first ever shop returning to serve the community that helped Tesco become what we are today.Tesco aims to be more than the sum of it

29、s parts.We recognise that our nationwide network provides a unique reach into the everyday lives of our customers,our communities and our environment.We work hard to ensure that our impact is positive:this report outlines recent achievements and our ambitions for the future.Tesco Burnt Oak,1929Tesco

30、 Burnt Oak Express,2024200 metresFrom where it all began6This report is structured into four parts:Tesco is embedded within every nation and region of the UK.For an average parliamentary constituency,we employ 450 people across five local stores,support five local suppliers,pay 1m in business rates

31、and generate 85m in value added for the local economy.This means we are a vital supporter of small businesses and farms,plus a major driver of economic growth.Tesco supports over 3,400 suppliers across the UK.On top of this we are investing in every region,from a new,semi-automated distribution cent

32、re in Kent to partnering with a wind farm in Dumfries and Galloway to guarantee we procure 100%of our electricity from renewable sources.We are contributing 55.5bn to the value of the UK economy,roughly equivalent to the whole of the North East of England,and we have one of the fastest-growing techn

33、ology functions in the UK-helping drive further growth and innovation.We are the UKs third largest corporate taxpayer,contributing enough to fund three schools or 125,000 GP appointments in every parliamentary constituency across the country.Our impact across the UK.Our customers.12While global shoc

34、ks have put substantial pressures on household budgets in recent years,Tesco has worked hard to keep our products healthy,sustainable and affordable.During 2023/2024,we reduced the prices of over 4,000 products,mostly everyday essentials,by an average of 12%.On top of this,we have strengthened our C

35、lubcard deals and continued to offer competitive price-matching.This has ensured we have remained the most affordable full-line grocer for over two years.At a time when the UK is facing a health crisis linked to poor diet,we recognise the role Tesco plays in ensuring our customers have access to hea

36、lthy food.We led the way on voluntarily restricting sales(location and volume)of foods that are high in fat,salt and sugar.We have also introduced our Better Baskets campaign to make healthier options easier for customers to find.This includes replacing over 800 lines with healthier or more sustaina

37、ble products,often at a lower cost.We remain focused on our UK target of increasing the sales of healthy products,as a proportion of total sales,to 65%by December 2025.We intend to achieve this through initiatives such as Better Baskets and by ensuring our commercial categories continue to be clear

38、on how their plans contribute to this target.Tesco is more than a supermarket.Our stores are a hub for their local communities,providing vital access to services that might otherwise be absent,such as cash machines,opticians,pharmacies,community rooms,post offices,defibrillators and Changing Places

39、toilets for people with severe disabilities.Stores on average in every constituencyProducts reduced in price during 2023/24Suppliers across the UKLines replaced with healthier or more sustainable productsContribution to the UK economyTarget for sales of healthy products by December 202554,0003,40080

40、055.5bn65%7We employ around 1%of working adults across the UK and provide diverse careers at all stages of working life,from those making their first steps into work all the way through to colleagues planning for retirement.Responding to the pressures facing many of our colleagues,we have been deter

41、mined to reward colleagues for their contribution,increasing wages for our store staff by more than 25%since April 2022.We also continue to invest in the health and wellbeing of our colleagues,be it through the launch of our Virtual GP Service,an industry-leading menopause policy or the right to req

42、uest a flexible working pattern from day one.As we aspire to be an employer of choice,tenure at Tesco is longer than the industry average:44%of colleagues have been working in the business for over five years.Alongside the services we provide to our customers,Tesco gives back directly to our communi

43、ties.Since 2016,Tesco has awarded over 120m in grants to more than 70,000 community projects.Our 8m Stronger Starts programme,which supports projects across the country,includes many which promote childrens health and wellbeing through healthy food and related activities.Our aim is to reach over 1 m

44、illion children by December 2025.Our communities and colleagues.Our planet.34Tesco is leading the industry with our green ambitions.We have set a target to be carbon neutral in our group operations by 2035 and are making strong progress towards this goal.We procure 100%of our electricity from renewa

45、ble sources.Our network of 2,700 EV charge points across over 600 stores is the largest network of any UK supermarket.Recently,we signed the largest corporate agreement for solar energy in UK history,securing enough electricity for 144 of our large stores annually.Our work to drive sustainability ha

46、s been guided by our Planet Plan.A key pillar of this is our commitment to end unnecessary waste.Since 2019,we have removed over 2.3 billion pieces of plastic from our own brand products,while our Community Food Connection scheme with FareShare has redistributed over 220 million meals for those in n

47、eed since 2016.Ultimately,to minimise our environmental footprint we need to drive change right to the source.To do this,we are working directly with farmers to support the uptake of low-carbon fertilisers and to trial a methane reducing feed supplement for dairy cows.Pieces of plastic removed from

48、own-brand productsOf colleagues stay with Tesco for five years or moreOf electricity procured from renewable sourcesCommunity projects supported since 2016EV chargepoints across over 600 stores in the UK2.3 billion44%100%70,0002,700Increase in hourly store pay since April 202225%Our impact.Our econo

49、mic impact at a glance:Tesco is the largest UK retailer,with a presence in every region of the UK and around 300,000 employees.1.We are a vital supporter of UK businesses,working with over 3,400 local suppliers.2.We are a major investor in every part of the country,adding 55.5bn to the value of the

50、UK economy.3.We are the UKs third largest corporate taxpayer,contributing 4.56bn over the last year,enough to fund 1,900 schools or 81 million GP appointments.4.9On average,for every parliamentary constituency in the UK:People employedLocal Tesco storesLocal suppliersIn GVA created for the local eco

51、nomyPaid in business rates450 5585m1m02,000Tesco GVA by constituency (m,2023)Our impactCustomersCommunities and colleaguesPlanetMethodology10Our impact across the UK.National presence,local impact Tesco is the largest private sector employer in the UK,with around 300,000 colleagues in a huge variety

52、 of roles.Approximately 1 in every 100 working adults in the UK works for Tesco.Unlike many large UK companies,Tesco is not limited to a single locality or region,and the bulk of our economic impact is outside of London and the South-East.This provides us with a unique role across the UK,both as an

53、employer and investor.While Tesco has a national presence across the UK,any measure of our economic contribution has to be understood as the sum total of activities and impacts that are intensely local.These activities and impacts can be broken down into three types of contribution to local economie

54、s:Direct economic impacts:This is the economic activity driven by customers shopping at Tescos network of around 3,800 stores across the UK.Indirect economic impacts:These are the effects created by the considerable demand that Tesco provides for our UK suppliers,supporting businesses across the UK.

55、Although we source food from around the world,almost 95%of Tescos total spending on products is with UK-based suppliers.Induced economic impacts:This is the economic value that arises from Tesco colleagues,and staff members in our supply chain,spending their wages.This spending creates demand for go

56、ods and services in the local economies where our colleagues live and shop,supporting further businesses beyond Tescos supply chain.The full methodology for this is set out at the end of this report.Unparalleled impactCalculated in this way,Tescos economic impact in the UK is striking.In 2023,Tescos

57、 total contribution to the UK economy was 55.5bn,measured as Gross Value Added(GVA).This can be broken down into:A direct impact of 13bn.An indirect impact of 22.8bn.An induced impact of 19.8bn.For comparison,this is broadly equivalent to the GVA of the North East of England.This impact is spread ac

58、ross the UK.On average,Tesco activities generate around 85m in every Parliamentary constituency in the UK.In FY2023/24,every nation and region of the UK was represented among the 94 new Tesco stores.The tax we pay Tesco is a major taxpayer in the UK,both in terms of the tax it pays directly and the

59、tax it collects on behalf of government.As a major bricks and mortar retailer,over a third of our taxes take the form of business rates.This is often an important contribution to local services,including education,social care,transportation and emergency services.The 4.56bn Tesco paid and collected

60、in UK tax in FY2023/24 is the equivalent to funding three schools or 125,000 GP appointments in every UK constituency.Tesco is the UKs largest retailer.We operate around 3,800 stores across every part of the UK.Millions of Britons use a Tesco store every week for everything from small purchases to t

61、heir weekly shop.Working age adults are employed by TescoUK tax contribution in FY2023/24Contribution to the UK economy 1 in every 1004.56bn55.5bnApproximatelyOur impact at a glanceOur impactCustomersCommunities and colleaguesPlanetMethodology11In-store and distribution employmentDirect economic imp

62、actsIndirect economic impactsInduced economic impactsDemand and employment created from procurement from Tescos UK-based supply chainTesco colleagues and staff in supply chain companies spending wages in the UKEvery Tesco store is an economic engineThe tax we contribute makes an important contributi

63、on to local services,including education,social care,transportation and emergency services.4.56bn3 125,0002340GP appointments in every UK constituencySchools in every UK constituencyBuses in every UK constituencyFire crews in every UK constituencyorororBespoke economic modelling for this report show

64、s that including direct,indirect and induced impacts,Tesco creates 55.5bn of economic value(Gross Value Added)and supports over 1 million jobs right across the UK.Our impactCustomersCommunities and colleaguesPlanetMethodology12An investor in regional growthTesco is investing in every region of the U

65、K,from opening new stores,to developing our own renewable energy capacity and driving forward cutting edge improvements to logistics and distribution.This includes:We are constructing a new,semi-automated fresh food distribution centre in Aylesford,Kent.We added 300GWh of renewable energy capacity i

66、n 2024.To guarantee future green power,we signed a new wind farm deal in Stranoch in 2024,building upon five existing wind and solar farms in Scotland.We introduced our tenth freight train,which will transport 600,000 cases of goods a week from our Daventry Distribution Centre,reducing carbon emissi

67、ons by over 6,000 tonnes a year.We have opened new Express and One Stop stores in Cwmbran,Llandudno and Raglan,helping us serve more communities and provide high quality employment.Our planned Harrogate store will incorporate the latest lighting,heating and refrigeration technology,include customer

68、EV charging points and create new wildlife habitats,to guarantee biodiversity net gain.As part of a multi-million pound programme we are refurbishing more than 20 of our 50+Northern Irish stores,including in Ballymoney,Knocknagoney,Carrickfergus,Derry/Londonderry and Cookstown.Cutting-edge distribut

69、ion centre in the South EastNew wind farm deal in ScotlandExtra freight capacity in the East MidlandsServing new communities in WalesPlanet-first store design in YorkshireStore refurbishments in Northern IrelandOur impactCustomersCommunities and colleaguesPlanetMethodology137,000Tesco GVA(m,2023)Num

70、ber of Tesco employeesUxbridge and South RuislipWelwyn HatfieldChingford and Woodford GreenThurrock2,5005,0006,0002,0004,0001,5003,0001,0002,0005001,000South Holland and the DeepingsDaventryWelwyn HatfieldNewport EastCities of London and WestminsterThornbury and YateEarley and WoodleyLichfieldMelton

71、 and SystonEarley and WoodleySloughLivingstonGreat Grimsby and CleethorpesEnfield NorthHuntingdonDundee CentralTescos top ten constituencies7,1192,1501,5921,4601,3341,1011,0651,0239468788242,4141,9581,9061,8731,7481,7221,7091,7031,687Our impactCustomersCommunities and colleaguesPlanetMethodology14Ou

72、r suppliers.As Tesco has grown,so has our support for UK business.Almost 95%of our supplier spend is with the 3,400 UK-based businesses we partner with.Last year,we spent more than 30bn with these suppliers,driving growth across every region of the UK.Tescos indirect economic impact through our supp

73、liers is key to our contribution to the UK.We know that Tesco customers want to support British food producers,and we have a firm commitment to helping them do this.Although we source food from around the world,90%of our suppliers have operations in the UK.Almost 95%of total supplier spend for our U

74、K stores is with these UK-based providers.Tesco passed through more than 30bn of customer spending to these farmers and suppliers in 2023.Valuing our relationshipsThe UK agriculture sector is a huge and vital part of this supplier community.We take our obligations to our farmers and growers very ser

75、iously as we know farming can be an uncertain and challenging business.Over the decades,Tesco has built up fair,long-term relationships with UK farmers-often based on longer contracts and cost of production+models-to provide greater certainty on prices and to allow them to invest in the future of th

76、eir businesses.The Tesco Sustainable Dairy Group(TSDG)was set up in 2007 and now includes more than 400 dairy farms(see p.17)who are paid on a cost of production+model for the fresh milk they supply to Tesco.The Tesco Sustainable Lamb Group,established in 2016,provides another example where over 100

77、 farmers are paid a bonus above the factory price for delivering against key environmental and welfare metrics.Similar sustainable farming groups have been established for beef,poultry,eggs,potatoes,pork and cheese.These groups enable us to convene industry representatives;share knowledge between fa

78、rmers,suppliers and Tesco colleagues;and trial innovations that can help reduce on-farm emissions and protect biodiversity.Most trusted partnerAs part of our ambition to be British agricultures most trusted partner,we have taken action over Of our suppliers have UK operationsOf our spending is with

79、UK-based suppliersSpent with UK suppliers90%95%30bnOverOur suppliers at a glancethe last two years to provide immediate support to farmers to help them overcome inflationary challenges,including providing 75m in additional support for our beef,lamb,pork,poultry and egg farmers.In addition to our Acc

80、elerator Programme,which aims to support some of the most exciting and innovative brands in the UK,we continue to explore ways to provide further support to British farmers and to help our customers to shop the best of British produce.For example,we introduced a Best of British page on our customer

81、food delivery website.The page,which went live in April 2024,lists quality British produce from a number of our ranges,including meat,fish and poultry,dairy and eggs,and fruit and vegetables.We seek to work constructively and fairly with all of our suppliers.We have been voted No.1 in the Advantage

82、supplier survey for the ninth consecutive year.Our impactCustomersCommunities and colleaguesPlanetMethodology15Supporting local suppliers across every regionIn 2023 Tesco spent more than 30bn sourcing supply from more than 3,400 UK farmers and other suppliers.90%of Tesco suppliers are UK-based.30bn

83、Tesco suppliers by region1954627113830723099240374703595213ScotlandScotlandNorth EastNorth EastYorkshire/HumberYorkshire/HumberN.IrelandN.IrelandNorth WestNorth WestWest MidlandsWest MidlandsWalesWalesEast MidlandsEast MidlandsEast of East of EnglandEnglandLondonLondonSouth EastSouth EastSouth WestS

84、outh West08,000Tesco GVA by region(m,2023)Our impactCustomersCommunities and colleaguesPlanetMethodology16Supporting our suppliersIve been supplying Tesco with poultry and eggs for more than 20 years.When I set up Anglia,a free range and organic egg business 12 years ago,Tesco was our first customer

85、,and supported us from day one.An egg producer needs a commitment to be able to invest and have the best welfare standards for the birds.The five-year contract I have with Tesco has allowed us to give long-term contracts to our producers,and has given me the security and confidence to invest in the

86、most modern grading and efficient packing equipment.This has helped me grow my business,and has brought new jobs to the area too.My daughter-in-law is now working in the family business and produces eggs for Tesco.She has just completed Tescos Future Farmer Programme,which provides the next generati

87、on of UK farmers with knowledge and expertise on sustainable agriculture practices.”Fairness for farmersSpotlight on:Future Farmer ProgrammeIn July 2023,we partnered with Harper Adams Universitys School of Sustainable Food and Farming(SSFF)to launch our Future Farmer Programme,a multi-year initiativ

88、e to help up-and-coming British farmers develop their skills in sustainable agriculture.With recent surveys suggesting younger farmers have identified skills gaps in areas including sustainability and the environment,each year the programme is providing up to 75 young farmers with face-to-face and l

89、ive online training on how to implement sustainable agriculture practices and protect biodiversity.The nine-month course,which runs each year,also includes events and mentoring sessions on business operations and personal development.As part of the partnership with SSFF,Tesco will also fund research

90、 projects aimed at addressing some of the key sustainability challenges affecting agriculture.Harry Irwin,Anglia Free Range Eggs“As well helping farmers in the short-term,we want to put in place the building blocks for a sustainable,innovative and world-leading UK food and farming sector.Our impactC

91、ustomersCommunities and colleaguesPlanetMethodology17The Tesco Sustainable Dairy Group(TSDG)The TSDG was established in 2007 and is now the largest group of UK dairy farmers working directly with a retailer.All Tesco dairy farmers must adhere to the nationally-recognised Red Tractor Assurance scheme

92、,as well as the additional standards of the Tesco Sustainable Dairy and Cheese Group Livestock Code of Practice.In return,the 400 farmers in the TSDG are guaranteed a set milk price linked to the fluctuating cost of production,ensuring they can make a sustainable profit.Long-term contracts give farm

93、ers the income certainty to invest in innovation,carbon reduction and animal welfare.Over the 2023 calendar year,members of the TSDG were paid almost 40m above market prices by Tesco,supporting British dairy farmers at a time of huge change for the industry.The farmers of the TSDG are adopting indus

94、try-leading practices to cut emissions.Every year,all TSDG farms receive an independent carbon assessment report and are supported in deploying best practice in key areas such as nitrogen deposition,energy efficiency and improved soil organic matter.Since 2016,the group has reduced its carbon emissi

95、ons by 8.5%-industry-leading in this area.Our impactCustomersCommunities and colleaguesPlanetMethodology1819Customers.Our customer impact at a glance:Tesco is consistently the UKs most affordable full-line grocer with Clubcard holders able to access savings worth over 350 a year.1.We reduced the pri

96、ces of over 4,000 products during 2023/24 by an average of 12%.2.We want to help our customers to eat more healthily,replacing over 800 lines with healthier or more sustainable products,often at a lower cost.3.Tesco stores are more than supermarkets.They are community hubs providing facilities which

97、 would otherwise be absent,including banking and health services.4.20Delivering value for our customers.At Tesco,the customer is at the centre of everything we do.Like any retailer,we owe our business to them and seek to earn their loyalty every day.Central to that commitment are two core responsibi

98、lities that have wider implications for economic and social life in the UK.First,keeping the cost of food affordable for households facing tight spending conditions.Second,helping ensure that customers can access healthy and good-quality food at a reasonable price.Growing pressures Tesco has always

99、recognised the important role it has to play in delivering value for customers and helping with the cost of living.With food and non-alcoholic drinks now the fifth largest component of household spend in the UK,this is truer than ever.A highly competitive retail market means that UK households gener

100、ally spend slightly less on food as a share of their income than equivalents in countries such as France and Germany.Nevertheless,this critical spend has been squeezed by high energy and housing prices and falling real incomes for some households.With these pressures,it has never been more important

101、 to keep the weekly shop affordable.Understanding customer needsOver the last two years we have tracked the impacts of inflation and price uncertainty in the way our customers shop.Many customers have increased their use of Tescos high-quality low-cost own brand and value lines,while others are look

102、ing to save money by not eating out and treating themselves at home with our Finest range.For Tesco,delivering value for customers is central to our wider role in the British economy and British society.As a supermarket we have a responsibility to help ensure that all households can choose high-qual

103、ity healthy food at an affordable price.Tesco has therefore focused on keeping prices as low as possible without compromising on quality or the fair price paid to suppliers.We have done this through a powerful combination of Aldi Price Match,Low Everyday Prices and exclusive Clubcard Prices deals,an

104、d by working closely with our suppliers many of whom we have sought to give greater certainty to through longer-term contracts.We have also provided immediate financial support to some of the most vulnerable agricultural sectors,such as eggs and poultry.Easing the squeezeIn 2023/24,Tesco reduced pri

105、ces by an average of 12%on more than 4,000 lines,helping customers at a time when the UK faced the highest inflation in decades.Tesco Clubcard holders have also been able to access additional value,worth over 350 a year.Through initiatives like these and price-matching,Tesco has been the cheapest fu

106、ll-line grocer for over two years.Recognising the pressures many families face in the school holidays,children can eat free in Tesco Cafs with any adult Clubcard purchase a scheme that served up more than 450,000 free meals in 2023.In addition,to help with the cost of food,Tesco also tries to help m

107、anage the costs of other important things,like family holidays.As part of our commitment to value,Tesco Mobile has also extended its free roaming service for the EU and other popular holiday destinations until 2026.Whats more,customers who take out a Clubcard Price deal will not need to worry about

108、their bill going up mid-contract-as we promise to freeze the basic monthly usage price for the length of their contract.Our impactCustomersCommunities and colleaguesPlanetMethodology21Keeping prices as low as possible Lines with price saving measures,2024/25Keeping the weekly shop affordable Tesco i

109、nitiatives to ease the cost of livingClubcardPricesThe power tolower pricesPrice reductions and freezesAdditional clubcard discountsPrice matchFood price reductions to reduce wasteAldi Price match700Low Everyday Prices1,000Clubcard Prices8,000Our impactCustomersCommunities and colleaguesPlanetMethod

110、ology22Awareness of the importance of healthy eating is growing.There have been some positive changes in the UK diet over the last decade or so,including the reduction of added sugar.But on the whole,with obesity at record levels,there is more for us all to do to tackle the UKs health crisis.Consume

111、rs are increasingly concerned about health and the barriers they come up against as they seek to shop and eat more healthily.Affordability is one of the three barriers that is most commonly identified,along with the need to make healthy eating easier and more relevant and inspiring.Tesco is committe

112、d to working in all three of these areas.Healthy foods at competitive pricesThe provision of great value on healthy and sustainable options is the number one priority.The key to improving the nations health is ensuring that a healthy diet is available on any budget.Cost should not be an obstacle to

113、eating well.Tesco can help achieve this by making sure our products are healthy as well as great value.In 2021,Tesco set a target to ensure that by the end of 2025,65%of all sales will be from healthy products.More widely,Tesco has:Replaced over 800 lines with healthier or more sustainable products,

114、often at a lower cost over the last 18 months.We have focused on product lines important for shoppers on a budget.Since 2022,we have voluntarily restricted sales(location and volume)of products that are high in fat,salt and sugar.Expanded our range of plant-based products,providing satisfying altern

115、atives to meat for all tastes.Planning and choosing healthy eating To help make it easier to plan and shop for a healthier diet and meal routine,we have focused on signposting and labelling in stores and on products to help customers identify healthy options and understand the nutritional or other h

116、ealth benefits of the food they buy.We have:Introduced the Better Baskets campaign,which makes healthier options easier for customers to find.Better Baskets includes in-store zones that signpost foods high in fibre,plant-based options and snacks under 100 calories.The Better Buy hub on encourages cu

117、stomers to consider healthy options and suggests possible healthier choices.Volumes of Better Baskets products increased 12%in 2023.Continued to improve our labelling of products that are high in fibre,low in sugar or which have other health benefits to help shoppers make more informed health choice

118、s.Promoting healthy eating Marketing and customer communications are key to all of this.Tesco has made the conscious choice to make healthy eating central to the way it engages with customers on their options at Tesco.We actively focus promotional activity on healthy eating.For example:We have incre

119、ased promotions focused on healthy alternatives.This includes discounts on fruits,vegetables and whole grains.We use in-store and online campaigns to signpost healthy options and provide advice on how to shop for and prepare healthy family meals.We collaborate with expert-led organisations,such as t

120、he British Heart Foundation and Diabetes UK,to provide endorsed recipes and related support.Healthy food,great value.As the UKs largest retailer,Tescos approach to healthy eating and drinking is closely linked to its social impact.We have been working hard to make healthy food affordable for all hou

121、seholds,with all types of dietary needs.Our impactCustomersCommunities and colleaguesPlanetMethodology23Introducing children to the skills of healthy cookingAs part of Tescos Stronger Starts scheme,an 8 million grant scheme to support schools and childrens groups with funding for food and healthy ac

122、tivities,Malmesbury Primary School secured 1,000 to provide extra-curricular cooking clubs for pupils of all ages and skill levels.The club is led by an after school leader,who runs three sessions a week due to their popularity.In one club pupils cooked fresh pizza.They chopped their own ingredients

123、,measured them out and followed the amount of time needed in the recipe.This was at the same time as learning about the history of pizza,and where and how peppers are grown.Initially many of the pupils were hesitant to try new foods.However,after a few weeks of joining cooking club,they were tasting

124、 a variety of meals with little encouragement.Parents have commented on how their children want to try new food at home and how they are curious about wanting to explore other cuisines.In addition to learning cooking skills,pupils have learnt other core skills such as measuring(maths skills);followi

125、ng instructions/a recipe(reading skills);and key life skills such as the need to wait for a desired outcome.Knowledge of how to cook fresh,healthy food is key though,with research showing that those who cook tend to eat more healthily,are happier mentally,and in better shape physically.Plus,its a gr

126、eat way for children to bond with family and friends.Tescos funding played an important role in enabling Malmesbury Primary School to offer this activity.Case studyOur impactCustomersCommunities and colleaguesPlanetMethodology24Much more than a supermarket.Tesco stores are more than supermarkets.The

127、y are community hubs providing services for our customers which would otherwise be absent,from over 360 pharmacies to more than 3,400 cash machines.Many Tesco stores play a wider role in their communities by incorporating other functions and services.Our network of Community Champions act as a key l

128、ink for local charities and community groups,helping them access our stores and resources,as well as receiving guidance on how best to benefit from Tesco grants and other initiatives.Across the UK,our stores provide:More than 360 pharmaciesMore than 500 petrol stationsProviding access to prescriptio

129、n and non-prescription medicines,plus a wide range of NHS services.Filling up alongside the weekly shop saves time and adds convenience.More than 3,400 cash machinesMore than 190 opticiansTesco has the third largest cash machine network in the UK,providing 17bn in cash via 285 million transactions e

130、very year.Providing access to essential eye health services.More than 80 post officesMore than 100 Changing Places toiletsOur post office counters provide everyday postal and banking services,including for small business customers.Our large network of Changing Places toilets provide vital equipment

131、and space for people with disabilities.More than 3,000 defibrillators70 community roomsOur defibrillators are a key part of the national network,helping to treat sudden cardiac arrest wherever incidents occur.Providing community groups and charities with free and fully-bookable spaces.Our impactCust

132、omersCommunities and colleaguesPlanetMethodology25Improving access to pharmacy servicesIve been running the Pharmacy at our Yate Extra store since its opening in 2011,alongside seven other dedicated colleagues.Far beyond the over-the-counter medicines,we provide a full consultation service using the

133、 Pharmacy First Platform,helping the general public directly,or via referrals from GP practice,111 and urgent care.This frees up appointments with GPs and improves access to treatment for all.The convenience we offer customers by operating within Tesco allows us to have those everyday conversations

134、which can help early interventions that support healthier lives.We often help people who feel they cannot afford to take time off work to get to the GP.The flexible hours we offer for consultations,including Sundays and late closing on weekdays,are essential to meeting the diverse needs of local peo

135、ple.Our essential and growing role for local healthcare provision means I also work closely with South Gloucestershire Council and the Bristol,North Somerset and South Gloucestershire Integrated Care Board,to help coordinate the delivery of NHS services across the region,alongside hospitals,GPs and

136、a range of specialists.On a personal level,I am proud to be one of the first community prescribers in my area,meaning I can prescribe a range of prescription-only medicines to help with minor ailments,as well as lipid management services after recent training.Working at Tesco aligns so well with my

137、own values.My pharmacy,alongside hundreds in Tesco stores across the country,provide a vital community service and we take the time to really understand our customers.We provide these services where there is a clear local demand and always treat people how they want to be treated.”Community pharmacy

138、Spotlight on:Tesco community pharmacies More than 360 Tesco stores across the UK incorporate a pharmacy service.These pharmacies can dispense NHS and private prescriptions and offer confidential expert advice on minor illnesses,including reviewing medications to ensure a patient is taking the right

139、medication correctly.All our community pharmacies offer the NHS Pharmacy First service,allowing local people to access expert advice without needing to see a GP.They also provide vaccinations,blood pressure and diabetes checks.Tesco pharmacies are also open late and at weekends,making it easier for

140、the entire community to access pharmacy services.Adele Mary Littleton Pharmacist Yate Extra“Our impactCustomersCommunities and colleaguesPlanetMethodology26Meeting the needs of our customers:Dementia FriendsThere are an estimated 982,000 people living with dementia in the UK,projected to rise to 1.4

141、 million by 2040.Every three minutes,another person develops the disease.One Stop has over 1,000 stores across the country and is using its position at the heart of communities to help those living with dementia.One Stop has raised over 600,000 for Alzheimers Society and supported more than 15,000 c

142、olleagues to become Dementia Friends since 2019.This means that each of these colleagues have completed training via the Alzheimers Society,which builds understanding around the effects of dementia and commits colleagues to take a positive action to support people who are living with it.This is help

143、ing One Stop stores to better support a range of customer needs in-store,by helping people to live well with dementia and continue to lead independent lives.One of One Stops Dementia Friends is Jack Taylor,Community and Partnerships Manager,who said:“Introducing the Dementia Friends programme into o

144、ur business is like nothing we have ever done before with a national charity partner.The programme has allowed us to do more to support the amazing work of Alzheimers Society beyond the traditional methods of predominantly fundraising for a cause.We continue to see positive impact stories being shar

145、ed by our colleagues about how it has helped them in both home and work settings.Everyone who has undertaken the training has truly benefitted and gone on to make a positive difference for people living with dementia.It fills me with pride to see our colleagues wearing their badges and we will conti

146、nue to encourage our colleagues to become Dementia Friends.”Case studyOur impactCustomersCommunities and colleaguesPlanetMethodology27Our community and colleague impact at a glance:Since 2016,Tesco has awarded more than 120m in grants to over 70,000 community projects.1.Our Stronger Starts programme

147、 is aiming to reach 1 million children by December 2025,supporting their physical and mental wellbeing.2.Our colleagues are the heart of our communities.We employ around 1%of working adults across the UK.3.Tesco is committed to our colleagues.We have increased pay across our stores by 25%since April

148、 2022 and offer award-winning wellbeing support.4.Communities and colleagues.28awarded since 2016Community projects supportedmeals redistributed through Tescos FareShare partnership since 2016120m 70,000220 millionGuided by our customersOur grants have supported a wide range of initiatives,with cust

149、omers voting for their preferred projects using blue tokens.This is a vital way of ensuring that the funding goes to causes that matter most to the local community.Stronger StartsTescos 8m Stronger Starts programme,launched in 2023,focuses on providing children with nutritious food and healthy activ

150、ities to support their physical and mental well-being.Stronger Starts has set the target of reaching over 1 million children by December 2025.So far,it has supported 6,000 community projects and over 700,000 children.As part of Stronger Starts,Tesco has also launched a 4m Fruit&Veg for Schools campa

151、ign.The project builds on Groundworks finding that 78%of schools are currently having to provide food for children from their own budget.Developed in partnership with the British Nutrition Foundation,the project is providing the funding for 400 schools and up to 140,000 children to receive at least

152、one piece of fruit and veg a day during term time,giving their diets a healthy and nutritious boost.The funding is targeted to support pupils in schools where there is a higher than average free school meal ratio.In total,the campaign will provide around 16 million pieces of fruit and vegetables acr

153、oss the 2024/25 school yearStronger Starts also covers a number of other initiatives,including Golden Grants(where local projects can access up to 5,000 in funding),Footie for All and Activity for All(a partnership with The Sun offering 300,000 in grants to improve childrens access to physical activ

154、ity)and Retail Apprenticeships(a project with Lifetime Training and The Kings Trust to support young people from deprived areas to attain a Level 2 National Standard in Retail).Giving backAlongside Stronger Starts,Tesco organises an annual Winter Food Collection,in partnership with Trussell and Fare

155、Share,which sees millions of meals collected for local food banks and those most in need.Our November 2024 Collection saw 1.9 million meals donated by our generous customers.Our National Lottery sales have also raised 3.5bn for good causes over the past 30 years.Community initiatives at a glanceOver

156、Supporting local community initiatives.Alongside the service Tesco provides to customers,our community grants-powered by the familiar blue tokens available in every large Tesco store-provide valuable funding for local projects across the UK.Since 2016,we have donated over 120 million in grants to mo

157、re than 70,000 community projects.Our impactCustomersCommunities and colleaguesPlanetMethodology29The Fruit&Veg for Schools scheme has been amazing,and we are feeding a lot of hungry children,every day.The staff are noticing real positives in their classrooms in the young people.Its helping pupils s

158、tudy more,go to classes less hungry,making snacks for clubs,breakfast time,break time,lunch times,after school clubs and supported study.We are overwhelmed and very,very thankful.”St Pauls Roman Catholic High School in Glasgow is one of fifteen schools in the city to benefit from Tescos Fruit&Veg fo

159、r Schools campaign.All students can now access free fruit and vegetables throughout the school day,first via breakfast clubs,then during breaktimes,and finally at after school clubs.These regular encounters with fruit and veg are opening up conversations about healthy diets,preparing food and cookin

160、g in the home.Improved nutrition is also improving student concentration.Lisa Bourke,Headteacher at St Pauls Roman Catholic High School in Glasgow,comments:Fruit and veg for schools“Forest school is the highlight of every students week and its always wonderful to see them learning and growing in suc

161、h a positive environment.Were thankful to the thoughtful customers at Tesco for choosing Ewelme to benefit from the Stronger Starts grant.We are a small school,so securing fundraising for new ways the children can learn means a lot.”Tescos Stronger Starts scheme awarded 500 for Ewelme C.E.Primary Sc

162、hool to organise forest school.This initiative provided school children with an exciting new way to learn and covers a range of activities such as insect exploration,nature crafts,and toasting marshmallows.It aims to teach children about nature and the world around them,all while encouraging hands-o

163、n learning in an adventurous,outdoor setting.Stephanie Pereira,a member of Ewelme C.E Primary Schools PTA,said:Funding forest schoolersSpotlight on:“Giving back to our communitiesOur impactCustomersCommunities and colleaguesPlanetMethodology30Tesco offers a wide range of roles and patterns of employ

164、ment.Many colleagues have long,and even life-long,careers at Tesco.Others use a role at Tesco as a first job,a stepping stone back into work or for short-term or seasonal work.Unlike many retailers,we have full collective bargaining arrangements in place with the unions Usdaw,Unite and URTU.90%of ou

165、r employees are covered by voluntary collective bargaining arrangements.These partnerships have helped us to take the lead on progressive employment practices and equip colleagues with the skills which develop future-fit careers.Creating good jobsEnsuring we offer high quality jobs is a priority for

166、 Tesco.Its our policy to offer new colleagues joining us a minimum of 16 guaranteed hours each week.We have increased hourly pay by more than 25%since April 2022,equivalent to an investment in our employees of over 750m.This includes a 9.1%boost since 2023,maintaining spending power for our colleagu

167、es through a period of high inflation.In particular,Tesco is committed to the principle that our jobs should be an opportunity for social and economic mobility.Around a third of our staff are under 30.They are surrounded by examples of what they can achieve at Tesco:many senior employees have worked

168、 their way up from the shop floor to positions of UK-wide responsibility and leadership.Tesco also looks to continue to break down barriers to employment.In November 2024,Tesco offered free Career Clinics to over 1,000 people across the UK,specifically targeted in areas facing higher deprivation and

169、 economic challenges.The Clinics were free to attend and aimed at giving people the valuable life skills and confidence to go forward into work,whether they were looking for a job at Tesco or somewhere else.More generally,we have taken other steps to remove barriers and increase diversity and inclus

170、ion in our workforce,including removing the requirement to submit CVs and complete psychometric testing for all frontline roles.Everyones welcomeTescos Black Action Plan and Diverse Talent Communities are examples of our efforts to be representative of the communities in which we play a part.We are

171、committed to a robust approach to diversity,equity and inclusion,to ensure Tesco is a welcoming place for all colleagues,from all backgrounds.This approach is reflected in our workforce.11%of our colleagues have at least one disability.6%are veterans.28%have caring responsibilities.LGBTQ+at Tesco is

172、 one of the largest employee networks of its kind across Europe.We also voluntarily report our ethnicity pay gap.This data gives us valuable insight into the experience of our ethnic minority colleagues and helps us to boost our recruitment efforts.Long-term development,for all Tesco takes on around

173、 1,000 apprentices each year.In 2024,we also launched Stronger Starts apprenticeships,a groundbreaking scheme available to those without GCSEs but who are passionate about getting on the work ladder.Colleagues on the scheme benefit from expert one-to-one pastoral support from the Kings Trust,a perma

174、nent contract and the chance to achieve a Level 2 National Standard in Retail.We are planning to offer 1,500 Stronger Starts apprenticeships by 2027.Flexibity and support when you need it mostIn addition to the right to flexible working from day one,Tesco has a range of industry leading family polic

175、ies,including 26 weeks paid maternity and adoption leave,6 weeks paid paternity leave and 6 months paid kinship leave.We also seek to support colleagues at every stage Our colleagues are central to our business.Our employer promise is to make every day a little better,not least as we act to make Tes

176、co a great place to work for all.Across the UK,around 300,000 people work for Tesco:approximately 1%of all adults employed in the UK.Tesco works hard to ensure that these jobs are rewarding and support a good standard of living.Our impactCustomersCommunities and colleaguesPlanetMethodology31Apprenti

177、ceships every yearOf colleagues working for Tesco for over five yearsIncrease in hourly store pay since April 20221,00044%25%Working for Tesco at a glanceOverof their lives,whether its:A Colleague Clubcard for you and a family member,unlocking in-store and online colleague discounts.A Lifestyle Brea

178、k of up to 12 months,with your role kept safe until you return.An award-winning pension scheme,with matching contributions up to 7.5%.A menopause policy,which means that time off work due to menopause symptoms is not included in absence calculations,and a new menopause friendly uniform and colleague

179、 portal.Our impactCustomersCommunities and colleaguesPlanetMethodology32A great place to work1 to 5years11 to 20 years6 to 10 years20+years10%0.2%20%0.4%30%0.6%40%0.8%60%1.2%1.4%1.6%50%1.0%TescoRetail*Tesco colleagues stay with us longer than the industry average Tesco tenure vs retail sector averag

180、ePercentage of regional jobs Number of Tesco jobs as a percentage of total employment in each regionTescos leading approach to employee pay,health and wellbeing means that 84%of colleagues recommend Tesco as a great place to work.Colleagues stay with us for longer than is usual across the industry:4

181、4%of employees have been in the business for more than five years and almost 80,000 have worked at Tesco for more than a decade.WalesEast of EnglandNorth EastEast MidlandsSouth WestNorthern IrelandSouth EastWest MidlandsScotlandNorth WestYorkshire and the HumberLondonIncluding wholesale and retail t

182、rade and repair of motor vehicles*Our impactCustomersCommunities and colleaguesPlanetMethodology33A place to get onThe placement with Tesco was great as it showed me what I could achieve.Youve got to want to work to get back to work and I really did,I just needed a chance to prove it.Completing the

183、placement with Tesco gave me the opportunity to prove that I could do it.Without the support from both Tesco and Maximus I wouldnt be where I am today its the best thing that has happened to me in 15 years.Its changed my life.Being back in work has given me so much more.Im better off financially,my

184、confidence has grown and I feel Im me again.Im extremely grateful to everyone who has helped me along the way.”Movement to WorkTesco is proud of its continued involvement as a lead employer within Movement to Work,a coalition of cross-sector UK employers,youth organisations and training providers al

185、l aiming to support young people aged 16-30 into work through high quality work placements.Key aspects of our Movement to Work campaign have involved working with The Shaw Trust to support young people with disabilities,and Maximus UK to support those furthest from the labour market and who need hel

186、p to build their confidence and develop skills.These are some of the activities which underline Tescos status as an accredited Disability Confident Leader.Iestyn Grills Duty Manager,CaerphillyLetitia RedfernButchery Development Manager,Booker“Booker has given me the opportunity to earn,while continu

187、ing my studies at college.I started my career as a Level 1 Internal Trainee,learning the basics of butchery.After completing the initial training programme,I went on to gain valuable on the job experience.Since then,I have continued to learn on the job,becoming a Craft Butcher and completing a Level

188、 3 Advanced Butchery Apprenticeship.In my role,I am proud to be able to support the development of colleagues and to help keep the butchery trade alive through the training and apprenticeships Booker offers.”“Booker Butchery AcademyBooker provides more than 100 apprenticeships and enrolled 33 appren

189、tices onto its esteemed Butchery Academy in 2024.This Academy helps support colleagues to develop careers in butchery,guiding them through their first steps in the trade,right through to growing their career and potentially becoming an Institute of Meat Accredited Master Butcher.More than 20%of the

190、UKs Master Butchers are now employed by Booker.Our impactCustomersCommunities and colleaguesPlanetMethodology34Helping colleagues put wellbeing firstWhen Tesco colleagues said they wanted more support with health and wellbeing,one of the things we did was introduce a Virtual GP and enhanced Employee

191、 Assistance Programme(EAP)service.In its first year,colleagues and their families have booked almost 15,000 appointments through our Virtual GP service.Colleagues particularly value the fact that they can get an appointment with a GP really quickly(an average of 98%of colleagues were offered an appo

192、intment within 24 hours),providing them with the support and advice they need.The Virtual GP service has no limits on the number of times colleagues or their immediate families living or family members living in the same household can use the service and there are no fees,apart from the cost of any

193、prescription that may be issued.Statistics show that 7%of virtual GP appointments have been made for children under the age of 18.Our investment in the health and wellbeing of colleagues also extends to our Employee Assistance Programme which offers colleagues access to exercise and movement special

194、ists,sleep therapists,nutritionists and counsellors to support colleagues emotional wellbeing.The service provides up to seven sessions free per presenting condition,which can be used for a mix of services,such as sessions with a counsellor,sleep specialist or nutritionist.Colleagues can access anot

195、her seven free sessions for a different presenting condition.Our 24/7 colleague helpline is also available to offer in-the-moment support from a counsellor.Our investment in the wellbeing of our colleagues allows them to be at their best and to continue to provide a brilliant service to our customer

196、s.These benefits help us to boost colleague engagement and positivity about their jobs,so that we can attract and retain great colleagues.Case studyOur impactCustomersCommunities and colleaguesPlanetMethodology35Planet.Our planet impact at a glance:Tescos green ambition is sector leading our target

197、is to reach carbon neutrality in our own operations by 2035 and and net zero in our full value chain by 2050.1.We procure 100%of our electricity from renewable sources and have signed the largest corporate solar agreement in UK history.2.We have the largest EV charging network of any UK retailer-mor

198、e than 2,700 EV charge points across over 600 stores.3.Through our Community Food Connection scheme we have redistributed over 220 million meals since 2016 for those in need.4.36Leading the industry on sustainability.The effects of climate change are reshaping the world around us in ways that pose h

199、uge risks for both people and nature.Tesco is working in partnership with our customers and suppliers to drive the shift to a low carbon economy.We take our obligation to minimise our environmental footprint very seriously,whether it is by using less energy more efficiently,or generating less carbon

200、 in our operations and those of our suppliers,or producing less waste in our stores and for our customers.Our planet planIn 2023,we brought together our key areas of activity on climate and nature in our Planet Plan.The plan has six pillars focusing on:Improving our products we partner with producer

201、s to help improve their practices,to protect nature and drive the highest standards of sustainability and welfare across our products.Decarbonising transport we are committed to a fully electric home delivery fleet by 2030 and are supporting our customers to switch to electric cars with over 2,700 c

202、harging points across more than 600 stores.Reducing store emissions we have procured 100%of our electricity from renewable sources since 2016 and we are investing in reducing emissions across our stores and distribution centres.Supporting sustainable consumption we are working to make Tesco the easi

203、est place to shop for healthy,affordable and sustainable food.Eliminating waste we are acting to cut food waste across our supply chain and minimise the use of unnecessary packaging,especially plastics.Protecting nature we are striving to increase biodiversity,help protect waterways from pollution,p

204、rotect natural habitats,and improve soil health.This plan shapes the work we are doing across our business from improving how we source and manufacture our products,how we run our stores and transport,through to helping our customers eat more healthy,sustainable food and tackling waste across the wh

205、ole food value chain.Of Express stores using heat pump technologyHectares of crops in our low-carbon fertiliser trialElectric Dot Com home delivery vans in our fleet and on the roadReduction in Scope 1 and 2 emissions from 2015/16 baseline95%3,30060061%AlmostOur environmental progress at a glanceOur

206、 impactCustomersCommunities and colleaguesPlanetMethodology372035 2050 Tesco target:Scope 3Industry-leading climate ambitionsWe procure 100%of our electricity from renewable sources100%All Tesco home delivery vans will be electric by 2030 100%by 2030Tesco has the largest EV charging network of any U

207、K supermarket2,700+Value of sustainability-linked bond-first in the sector linked to Scope 1 and 2 emissions reduction performance launched 750mIn 2023,we were one of the first companies globally to have our Forests,Land and Agriculture(FLAG)and non-FLAG net zero target validated by the Science Base

208、d Targets Initiative(SBTi).We are set to exceed our 2025 reduction target of 60%(Scope 1 and 2 emissions)and continue to work towards an 85%reduction by 2030.This will put us on track for carbon neutrality in our own operations by 2035.We are also committed to net zero across our full value chain,al

209、igned to a 1.5C trajectory,by 2050.Tesco target:Scope 1 and 2Our impactCustomersCommunities and colleaguesPlanetMethodology38Investing in renewablesReaching net zero needs transformational change in how we grow,produce and consume food.Tesco is making significant progress towards decarbonisation,via

210、 investments across the UK,including into renewables.While we met our 2030 ambition to switch to 100%renewable electricity in our own operations ten years early through a mixture of direct sourcing and renewable certificates scaling up our use of clean renewable energy has never been more important.

211、Thats why we are continuing our work to source green electricity from our own estate,setting out ambitious plans to install solar panels on the roofs of 100 of our stores across the UK-an initiative which could generate as much as 20GWh of electricity,enough to charge the equivalent of 300,000 Tesco

212、 electric home delivery vans.This project is one of multiple energy projects Tesco has announced over the last five years helping us to source green electricity directly from windfarms and solar parks across the UK.The recent signing of its largest UK Power Purchase Agreement(PPA),facilitated by EDF

213、 and securing 65%of the solar power generation from Cleve Hill Solar Park in Kent,means that PPAs will cover 45%of Tesco UKs expected 2030 electricity demand.The clean energy from the new solar park will be enough to power the equivalent of 144 large stores for a year.Alongside solar,Tesco continues

214、 to invest significantly in wind power.Long-term agreements,such as that to take 150 GWh of power from Stranoch Windfarm every year,are central to sourcing renewable electricity,guaranteeing procurement over an average 20-year period,giving energy providers confidence to invest and creating new rene

215、wable energy for the National Grid.With initiatives such as air source heat pumps being used to replace gas boilers,customer EV charge points installed across our estate,and electric home delivery vans replacing diesel ones,renewable electricity is increasingly vital.Case studyOur impactCustomersCom

216、munities and colleaguesPlanetMethodology39Powering the clean energy transitionTesco is not only decarbonising our own fleet,we are supporting our customers to do the same for their own vehicles.Tesco has more than 2,700 EV charge points across over 600 stores in the UK-supporting drivers to travel t

217、he country using our network.Tesco store with at least one EV charge pointOur impactCustomersCommunities and colleaguesPlanetMethodology40Reducing unnecessary packaging.Packaging waste is causing substantial harm to natural habitats,with over 171 trillion pieces of plastic floating across the worlds

218、 oceans.Tesco recognises that to minimise our carbon footprint we must minimise the waste we create.To do this,we have adopted a strict approach:limiting packaging to only where it is needed,using recyclable materials and reusing what we can.Embedding a new approachPackaging plays a vital role in pr

219、otecting products and reducing food waste.However,not enough is being done across the industry to make sure that packaging is only being used when truly necessary.Globally,less than 10%of plastic packaging which is produced is recycled.This needs to change.At Tesco,we are committed to eradicating un

220、necessary packaging at every stage of the production cycle and are rapidly progressing towards completely recyclable packaging across all of our products.The 4Rs strategySince 2019,we have followed the 4Rs strategy:Remove,Reduce,Reuse,Recycle.In short,we aim to minimise the use of packaging,particul

221、arly plastic.We ensure what we do use can be collected,reused or recycled so that none of it is wasted.Specifically,this means:Remove we focus on removing unnecessary packaging and hard-to-recycle materials.Reduce we are constantly striving to reduce the amount of packaging we use to an absolute min

222、imum.Reuse we are exploring new opportunities to reuse packaging in support of a circular economy.Recycle we aim to ensure all the packaging we use is fully recyclable and contains recycled content where possible.Delivering permanent resultsOur 4Rs strategy is already delivering real results.Since 2

223、019,over 2.3 billion pieces of plastic have been removed from our own brand products.This includes:Over 62 million plastic tamper sleeves/reseal tabs removed or replaced with paper on our own-brand wraps,oils,vinegar,honey and sauces.Over 30 million clip lids removed from products such as dips,masca

224、rpone and ricotta.Over 12 million plastic windows removed from desserts,cheese selection packs and pies.Through packaging innovations,such as using recycled delivery boxes and cardboard tubes to create luxury loo rolls and paper towels,we have also saved over 5,900 tonnes of packaging since 2020.In

225、a UK-first,we have also launched tubeless kitchen foil which we estimate will save 12.5 million cardboard rolls from needing to be produced,saving 330 tonnes of cardboard each year.On top of this,we became the first grocer to recycle used plastic food trays back into packaging creating a full circul

226、ar loop for our core chilled ready meals.We are also expanding what can be recycled locally.While most soft plastics arent commonly accepted by local authorities,we have collected over 2,000 tonnes.While we have substantially reduced our packaging,we want to go much further and we will continue to d

227、o so,guided by our 4Rs Strategy.Our impactCustomersCommunities and colleaguesPlanetMethodology41R RREMOVERemove it where we can.2.3billionPieces of plastic permanently removed from our UK business.We removed over 12 million plastic windows from desserts,cheese selection packs and pies.RREDUCEReduce

228、it where we cant.5,900tonnesOf packaging removed or reduced.We cut 147 tonnes of plastic from packaging for mixers and flavoured water.RREUSEReuse more.60millionPieces of plastic could be saved each year.Launched own-brand refills for cleaning spray bottles.Shoppers can create a solution in old spra

229、y bottles by mixing refill capsules with tap water.RRECYCLERecycle whats left.595tonnesOf milk caps that can be recycled into new bottles(as a result of being made clear).In an industry first,weve begun recycling used plastic food trays back into packaging for our range of core chilled ready meals.O

230、ur 4Rs strategyWhat were doingSome examples of how were doing itThe scale of our actionsOur impactCustomersCommunities and colleaguesPlanetMethodology42Meals redistributed since 2016 via our partnership with FareShare.220 million Suppliers so far have answered our call to disclose their food waste d

231、ata.100+Meals saved each year thanks to our Colleague Shop.20 million Food waste-friendly recipes featured on our Tesco Real Food website for customers to enjoy and help reduce waste at home.300OverOur strategy is focused on four key areas:Our own operationsOur communitiesOur suppliersOur customers

232、homesWeve introduced initiatives and measures across our stores to help reduce waste,such as Reduced in Price,Just as Nice areas and removing best before and use-by dates from a range of products.Food we dont sell is redistributed to charities and community groups or offered to colleagues through ou

233、r Colleague Shop.Any remaining surplus is converted into pet or animal feed or turned into energy.Since 2009,no food waste has gone to landfill in UK and Ireland.We work with local charities,community groups and food redistribution volunteers,to ensure any good food left at the end of every day in o

234、ur stores or distribution centres is available to people who need it.Our Community Food Connection scheme,which donates surplus food to local charities and communities,is the biggest of its kind in the UK,providing 4 million meals a month to charities and community groups.We work in partnership with

235、 our suppliers to reduce waste whether thats selling wonky fruit and veg,taking bumper crops from growers or helping suppliers distribute surplus food to charity.We were the first major retailer to publish our food waste data.We have encouraged hundreds of our suppliers to adopt a Target,Measure,Act

236、 framework,as key partners for our ambition to reduce food waste in our supply chain.More than 60%of Tescos fresh sales(by volume in the UK)is now provided by suppliers reporting on food waste.Our customers are central to the food waste fight,so were supporting them with simple changes they can make

237、 at home.This includes hints and tips,recipe inspiration and food storage advice to help them save money and stop good food from being thrown away.1.3.2.4.Acting to end food waste.Food waste is a major contributor to climate change,with the UN estimating it accounts for 8-10%of global greenhouse gas

238、 emissions.It is also unacceptable when around one in seven households have reported going hungry at least once in the last month because they couldnt afford to eat.This is why we are working so hard to tackle it in every part of the supply chain.Our impactCustomersCommunities and colleaguesPlanetMe

239、thodology43Right to the source.At Tesco we recognise the need to drive change all the way through our supply chains.To achieve this,we are working with our farmers and growers to support the uptake of low-carbon fertilisers and to trial methane reducing feed supplement for dairy cows.In 2023,we star

240、ted a programme with five of our largest field veg suppliers to launch the biggest commercial roll-out of low-carbon fertiliser.This will help boost UK food security while reducing greenhouse gas emissions by up to 50%.As part of the partnership,we have so far trialled eight fertiliser alternatives

241、across more than 3,300 hectares of land.Investing in low-carbon fertilisers made in the UK could also help farmers reduce their costs and create green jobs.In 2023,the trial meant 70,000 tonnes of field veg on Tescos shelves,including lettuces,carrots,and potatoes,were grown using low-carbon alterna

242、tives.Tesco also partnered with Grosvenor Farms one of the least carbon intensive UK milk producers to trial a methane reducing supplement on 400 cows this year.Methane from cattle burps is a substantial contributor to emissions and Tesco is committed to supporting our farmers to find innovative way

243、s to reduce these.Building on these partnerships,we are taking our work with our suppliers to the next level by establishing two low-carbon farms.These farms will explore innovations such as alternative fuels,state-of-the-art cold storage and carbon removal techniques.They will be at the heart of ou

244、r efforts to provide farmers with a practical route to net zero.Our impactCustomersCommunities and colleaguesPlanetMethodology44Overview of Tescos impact.Our economic impactOur communities and colleaguesOur customersOur planet Tesco is the largest UK retailer,with a presence in every region of the U

245、K and around 300,000 employees.We are a vital supporter of UK businesses,working with over 3,400 local suppliers.We are a major investor in every part of the country,adding 55.5bn to the value of the UK economy.We are the UKs third largest taxpayer,contributing 4.56bn over the last year,enough to fu

246、nd 1,900 schools or 81 million GP appointments.Since 2016,Tesco has awarded more than 120m in grants to over 70,000 community projects.Our Stronger Starts programme is aiming to reach 1 million children by December 2025,supporting their physical and mental well-being.Our colleagues are the heart of

247、our communities.We employ around 1%of working adults across the UK.Tesco is committed to our colleagues,increasing pay across our stores by more than 25%since April 2022 and introducing a 24/7 Virtual GP service for colleagues and their families in 2023.Tesco is consistently the UKs most affordable

248、full-line grocer.We reduced the prices of over 4,000 products during 2023/24 by an average of 12%.We want to help our customers to eat more healthily,replacing over 800 lines with healthier or more sustainable products,often at a lower cost.Tesco stores are more than supermarkets.They are community

249、hubs providing services which would otherwise be absent,from post offices to cash machines.Tesco is enacting its green ambitions-towards a target to be carbon neutral in our own operations by 2035 and net zero in our full value chain by 2050.We procure 100%of our electricity from renewable sources a

250、nd we have signed the largest corporate solar agreement in UK history.We have the largest EV charging network of any UK retailer-more than 2,700 EV charge points across over 600 stores.We are acting to end food waste.Through our Community Food Connection scheme with FareShare,we have redistributed o

251、ver 220 million meals since 2016.1.3.2.4.45Methodology.Tesco is the UKs leading grocery retailer with around 3,800 stores across the UK,employing around 300,000 colleagues and serving millions of customers every week.But Tescos impact goes beyond just the people directly employed and the goods sold

252、in store and online.The analysis for this report comes from a bespoke economic model built specifically for this project by Global Counsel,based on a standard economic impact approach.The model is designed to analyse how the money spent in Tesco stores flows through to wages and income for suppliers

253、 and onward into the wider economy creating jobs and economic value in communities right across the country.Sources of InformationThe data used for this analysis comes primarily from Tescos own internal systems.This includes data on the value of sales made by each individual store,payroll data for e

254、ach store,office and distribution centre,and details of Tescos purchases from its UK and global supply chain.Data was also taken from Tescos most recent Annual Report and Financial Statements.This data was cross referenced with public datasets.For example,Tescos supplier data was matched to Companie

255、s House records,to build a picture of this spending according to the sector of the economy in which each supplier operates.A number of Office for National Statistics(ONS)datasets were also used in this analysis,including the ONS input-output analytical tables,data from the ONS Business Register and

256、Employment Survey,and employment data from the ONS Labour Market Survey.Additional Business Register and Employment Survey data for Northern Ireland was sourced from NISRA.Tesco Supply ChainIn FY2023/24,Tesco spent over 34bn with around 3,800 separate suppliers.This spending,together with how it flo

257、ws through the supply chain and the wider economy is one of the largest contributors to Tescos overall economic impact.To analyse these effects as accurately as possible,some processing of this data was undertaken.First,each supplier was matched up to a parliamentary constituency and a nation/region

258、 based on the postcode data for it supplied from Tescos internal records.Second,each supplier was matched up to a five-digit SIC code from Companies House records.Where no direct match was available from the Companies House dataset,SIC codes were found using desk-based research.This allows for spend

259、ing with each supplier to be allocated to economic and employment multipliers relevant to that its specific industrial classification.Input-output modelThe ONS describes its Input-Output tables as being constructed to present“a balanced and complete picture of the flows of products in the economy an

260、d illustrate the relationships between producers and consumers of goods and services”.That is,they show how money spent in one sector of the economy flows through to components including wages paid,inputs purchased from other sectors and economic value added(GVA).They allow interdependencies between

261、 industries to be observed and are used by the ONS to set the level of annual current price Gross Domestic Product(GDP).For this project,a bespoke model based on ONS input-output tables was created to flow multiple sources of data Tesco store-by-store receipts,Tesco store-by-store payroll,other Tesc

262、o payroll data,and spend by supplier in order to build a picture of the economic and employment impacts.This analysis for Tesco uses the 2019 publication of ONS input output tables.The 2020 publication has specifically not been used as ONS advise that“the 2020 input-output table reflects the economy

263、 during the covid-19 pandemic”and that the 2019 tables present a more typical view of the UK economy.Our impactCustomersCommunities and colleaguesPlanetMethodology46In this annex the word multiplier is used to capture two types of coefficient from the input-output tables that should,more formally,be

264、 referred to as multipliers and effects.A GVA multiplier is used to calculate the change in GVA for the economy resulting from a change in GVA for a given industry.GVA effects is used to calculate the change in GVA for the economy as a whole resulting from a change in output for a given industry.The

265、 same distinction applies to employment multipliers and employment effects.Though in the latter case what is found is the impact on the compensation of employees resulting from a change in GVA or in output meaning this needs to be divided by the compensation of the relevant employees(or the average

266、compensation of employees in that sector(perhaps in that region)for that industrial sector as a suitable estimate)to derive an employment number.Economic impact calculationThe economic impact calculation follows the standard template of assessing direct,indirect and induced effects.Direct economic i

267、mpact is the first-round effect that arises from the demand for goods and services that Tesco offer for sale in stores and online.Indirect economic impact is the effect that arises from Tescos procurement from its UK-based supply chain.This includes both the procurement of goods for resale in Tesco

268、stores and online,as well as goods and services purchased by Tesco for use in its own business operations.Induced economic impact is the increased economic value that arises from Tesco colleagues and staff members in supply chain companies spending(a proportion of)their wages in the UK.This spending

269、 acts as demand for goods and services within the local economies in which transactions take place,supporting further supply chains beyond Tescos already extensive network.The direct GVA created from demand for goods and services supplied by Tesco is calculated using the“income approach”,which in es

270、sence counts wage values plus profits made and capital used(as measured by depreciation and amortisation).This is done nationally from data in Tescos annual report and at a local level for individual Tesco locations using sales and payroll data for each individual store.For the indirect impact,ONS m

271、ultipliers are applied to Tescos own spending in the UK economy.In particular a matrix is created of suppliers to Tesco plotting the location of that spend against the industrial category of the supplier.That allows for the Type I multiplier to be applied for each industrial sector,building up a com

272、plete picture of how such spending flows through the economy and the GVA that is created from it.For the induced impact,the indirect effect calculation described above is repeated but with a Type II multiplier applied to each industrial classification.As the Type II multiplier gives indirect plus in

273、duced effects,the indirect effect is subtracted to isolate the induced GVA value.The induced impact calculation implicitly assumes that wages are spent in the local economy in which they are earned(see limitations section below).The total GVA impact is then the sum of the direct,indirect and induced

274、 GVA impacts.Employment impact calculationThe employment impact calculation follows the same template described above for assessing direct,indirect and induced effects.In these calculations,employment multipliers are used in place of GVA multipliers,with appropriate adjustments to account for the co

275、mpensation of employees in that sector/region.Locational QuotientsTo derive constituency level and regional results from the multipliers contained in the national input-output tables,a regional or constituency specific version of the national input-output model must be created.This adjusts each nati

276、onal multiplier to reflect the specifics of the local or regional economy.Following best practice,this report achieves this by constructing and applying regional and constituency level Flegg Locational Quotients.The economy of a region or a single parliamentary constituency differs from the national

277、 economy in its industrial structure some regions may be stronger than the national average in the production of agricultural products but weaker in the manufacture of soft drinks for example.In considering a regional economy in the UK,inputs purchased from other regions within the UK are counted as

278、 value“leakage”from the regional economy but within the UK-wide multipliers these would all be domestic production.An adjustment to rectify this was proposed by Flegg et al in 1995 and subsequently refined.Our impactCustomersCommunities and colleaguesPlanetMethodology47For this report,a Flegg Locati

279、on Quotient was calculated for each of the new(2024)Parliamentary constituencies and for each nation and region using ONS data on local employment by 2-digit industrial classifications.These were then used to adjust ONS national multipliers to the regional and constituency level.For Northern Ireland

280、 the data available at the time of this study was more limited and Flegg Location Quotients were constructed by broader economic categories and matched,using an analysis of polling districts/wards to match to the 2024 constituency boundaries.Limitations of input-output modelsWhile input-output based

281、 modelling is the accepted standard approach to calculating the economic and employment effects of individual companies,activities or investments,such models necessarily have limitations in what they can analyse.The results in this report should therefore be read with the following caveats.First,the

282、 input-output tables for a given year represent a static view of the economy.As the ONS says,they“provide a picture of the flows of products and services in the economy for a single year”.As explained above,2019 input output tables were used in preference to 2020 given the impacts of covid-19 on the

283、 latter.But some post pandemic impacts and effects following the war in Ukraine(and the impact that had on energy costs)will not be captured by the model.Second,the method used for this report calculates the gross GVA and employment impact of Tescos operations.But it does not construct or compare to

284、 a counterfactual of how spending would differ,and how resources would be deployed were Tesco not to exist.Third,the calculation of induced impacts risks overstatement.This is a systemic effect arising from a number of factors,including a)the assumption that wages are spent in the local economy in w

285、hich they are earned and b)the assumption that supply chains are able to flex(without price effects)to changes in demand.Fourth,steps have been taken in this analysis to avoid over-counting for products that result from international supply chains.This includes removing from indirect and induced imp

286、act calculations any spend with suppliers that are based overseas and additionally using the ONS Type I multiplier(and our calculated Type II multiplier)to remove an element related to imported products consistent with the average for each industrial sector.Nonetheless,there is a risk that Tescos in

287、ternal systems see certain UK headquartered companies as being domestic suppliers where in practice those companies source a large proportion of their sales from overseas.Fifth,data quality issues mean that any analysis of this type cannot be entirely accurate.For example,the industrial sector multi

288、plier used for each of Tescos aroud 3,800 suppliers is taken for that companys registration of its SIC code with Companies House.Companies may operate in multiple sectors.And where companies register multiple SIC codes,only the first is used here.Additionally,there may be uncertainty as to which cat

289、egory a given supplier should register leading to mixed of imperfect registrations.For example,a company selling tobacco products to Tesco may register as SIC code 12000-Manufacture of tobacco products or as SIC code 46350-Wholesale of tobacco products.There is no particular reason to believe that this effect has a particular directional bias and so it is likely to broadly cancel out over a large enough number of suppliers.Our impactCustomersCommunities and colleaguesPlanetMResearch partnerFor more information,please contact: