Business ServicesTESCO CARBON REDUCTION KNOWLEDGE HUB A case study of how 2degrees is helping Tesco engage its suppliers to achieve 30% carbon reduction target by 2020
Business ServicesUK’S LARGEST RETAILER 4,811 STORES by revenue & profit* across 14 countries The world’s 3rd LARGEST RETAILER £62.54 BILLIONby revenue, 2nd by profit revenue (February 2010) 472,000 EMPLOYEES OVER 100,000 SUPPLIERS worldwide *Source: 2010 Tesco Annual Report
Business Services TESCO’S OBJECTIVES “ Reducing emissions is the right thing to do for a responsible business seeking sustainable profits. It also: Conserves energy and saves money Delivers energy security Meets the growing expectations of our customers Delivers better resource efficiency and security ” David North, UK Corporate Affairs Director, Tesco.
Business Services TESCO’S CHALLENGE Tesco’s supply chain carbon footprint 2010* Supply chain total accounts for 36 million 90% tons of the carbon footprint SUPPLY CHAIN FOOTPRINT TO BE REDUCED BY 30% BY 2020 *Excluding their customers’ emissions
Business Services TESCO’S REQUIREMENTS In order to achieve their targets Tesco need to: Collaborate frequently with suppliers Encourage suppliers to share best practice with each other Assist all suppliers regardless of size, product or location Help suppliers find solutions Deal with a wide variety of challenges quickly And do this without raising costs or wasting time
Business Services TESCO’S DILEMMATesco were aware that collaboration of suppliers would be the most efficient route to meet their requirements. The dilemma was “HOW DO WE GET THE SUPPLIERS TALKING TO EACH OTHER?”
An online community where 12,000+ MEMBERS FROM 6,000+ ORGANISATIONS IN 90+ COUNTRIEScollaborate to deliver practical solutions to sustainability challenges.
Business Services WHAT WE DID We launched THE TESCO KNOWLEDGE HUB an area exclusive to Tesco Suppliers to collaborate within the 2degrees community. Then we invited suppliers and interviewed them to identify their needs.
Business Services WHAT WE DID To ensure suppliers participate in the Knowledge Hub 2degrees used the interview results to organize: A highly structured content and engagement plan The sharing of information between suppliers – 45 case studies were uploaded within the first few months Discussions about suppliers’ topics of choice through forums and in webinarsWe also gave the suppliers access to the wider 2degrees community of sustainability professionals
Business Services THE RESULTS as of March 2011 So far 190 members from 127 supplier companies in 10 countries have joined the Tesco Knowledge Hub. This is a highly active community: OVER 85% OF MEMBERS 500+ CASE STUDIES have attended or and documents have downloaded webinars* been downloaded OVER 30% OVER 72%of members have participated in 30+ have found solutions withinspecific problem solving discussions other 2degrees working groups *A wide range of topics have been covered from energy to waste. “The webinars have been fantastic.” Debra Lim, CSR Manager, Park Cakes Ltd
Business Services TESTIMONIAL“ The 2degrees team worked closely with us to get the target suppliers on board quickly and efficiently. We look forward to continuing to work through this platform to help our suppliers reduce their carbon emissions and become more sustainable businesses. ” Helen Fleming, Climate Change Director, Tesco Plc
OTHER ACTIVITY Knowledge Hub members have found solutions in other 2degrees groups including: SUSTAINABLE SUPPLY CHAIN ENERGY MANAGEMENT ZERO WASTE WATER RISK AND STRATEGYThis demonstrates the power of access to the world’s largest community of sustainability professionals
Business Services WHAT NEXT GROWING THE Develop a complimentary series of SUPPLIER MEMBERS QUARTERLY to 1,000+ from 500+ companies OFFLINE EVENTSA PROGRAMME OF BI-WEEKLY WEBINARS BUILD LARGER LIBRARY to cover more suppliers’ requests of information within the Hub ...and so reduce carbon in Tesco’s supply chain by 30% by 2020.
Business ServicesWHAT TESCO REALLY THINK“The 2degrees Knowledge Hub has worked really well and we are looking forward to rolling out the programme to many more of our UK suppliers. Tesco is leading the wayin sustainable best practice, by finding solutions to real-lifeproblems and sharing knowledge and innovation with our suppliers to reduce costs both financially and to the environment. We are very excited about developing the partnership with 2degrees in the future. ” Andrew Hill, Climate Change Manager, Tesco