Tesco

TESCO GROUP REPORT

Table of Contents

Page 3 Introduction

Pages 4 - 6 Packaging Policy

Pages 7 - 9 Transportation

Page 10 вЂ" 11 Carbon Labelling

Page 12 Recycling

Pages 13 - 14 Eco-Building

Pages 15 вЂ" 16 Comparison : Asda Vs Tesco

Page 17 Recommendations

Page 18 Concluding Remarks

Pages 19 - 21 References

1. Introduction

There are many consequences of our world becoming more polluted as each day passes. The extinction of a number of species and increases in greenhouse gases has primarily been a concern of recent human activity.

Many of the larger corporations are been pressurised into taking action to make our world a more sustainable place for future generations. Tesco Plc is a well known retailer and under such pressure is beginning to form a number of environmental policies.

Founded by Jack Cohen, Tesco is one of the biggest retailers in the world, enjoying large percentages of market share in the UK, generating huge revenues in the process. Evidently, the main goal of the company is to make profit, and such an objective raises concerns over the extent to which large organisations such as Tesco are damaging the environment.

Part of their success ultimately boils down to the service they are able to provide consumers, ultimately changing the whole experience of supermarket shopping. Whilst primarily specialising in food, other focuses can be seen in the sale of clothes, DVDs, Internet services and health insurance. Inevitably the strategy that Tesco has pursued has enabled for the effective marketing of their products, which undoubtedly has played a huge part in their success.

However, whilst the strategy which they have employed has obviously been of high priority, an increasing effort is being placed in adopting an efficient sustainable policy towards business operations.

This report aims to analyse the initiatives that Tesco has shown to date in the field of sustainable development and is effectively divided into six key areas: packaging, transport, labelling, recycling, �eco-building’ and a comparison of another leading supermarket’s sustainable business policy against Tesco.

1. Packaging Policy

The area of packaging has been an important aspect for critics of supermarkets, who often deem the use of plastic bags and food wrapping as excessive.

In attempts to answer such critics Tesco have adopted an approach known as the “Waste Hierarchy Triangle” created by DEFRA (Department for Environment, Food and Rural Affairs). The Triangle effectively works like a pyramid, where the greater used of one method will effectively result in reductions in another. Ultimately, Tesco adopts every step within their packaging policies, although of course, the method of disposal is sought to be greatly reduced through utilising other practices within the pyramid.

Figure 1

http://www.tesco.com/greenerliving/what_we_are_doing/greener_packaging/default.page

Significantly, Tesco has already changed parts of its packaging through the increased use of recyclable materials, and claim to wish to implement this to as many products as possible, as soon as they can.

Ultimately the �promises’ that Tesco have effectively made may only equate to a statement of false intent however. Such an example may include a the publication of a proposed figure of achievement for a period spanning way into the future, and in this sense, it is important to realise that the deadlines that have been set to achieve greater efficiency may inevitably be subject to change.

Consequently it would appear that further work could be utilised within this area to make Tesco a truly sustainable business. In this sense, the statements of intent that are often employed can often be regarded as nothing more than a market ploy, to gain more trade or to gain a competitive edge over a rival.

Certainly Figure 2 below shows just how effective Tesco’s sustainable policy is in relation to plastic bags.

Figure 2

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=526370&in_page_id=1770&in_a_source=

Whilst at first glance the plastic bags on the trees could be mistaken for birds, the sad irony is that Tesco seem not to be able to maintain a healthy environment directly outside their own stores. Coincidentally these images were taken this year.

However, it would be unfair to state that Tesco have done nothing to fight against the global concerns relating to the over-use of plastic bags. Since 2004 the use of completely degradable plastic bags has been introduced into each store, effectively providing somewhat of a solution to problems that have previously been associated with disposal methods.

Tesco have also implemented many new initiatives into consumer shopping experiences, offering �bag for life’ deals in attempts to limit the usage of plastic bags by its customers. They have also adopted a �Green Club Card’ through which customers are awarded �points’ every time they re-use plastic bags.

However, it could be argued that much more could be done to tackle the problem, with many stores (most recently Marks and Spencer) beginning to implement a charge for their plastic bags. Ultimately, this may be helpful in sending a strong message out to customers, who as a result may be more conscious about how many plastic bags they are using each time they do their food shopping. As of yet, this is something that Tesco have failed to incorporate.

Despite