How Tesco is adapting its business model to help cut carbon

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David North, community and government director, Tesco - at the CBI Climate Change Summit, Tuesday 2 December 2008

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How Tesco is adapting its business model to help cut carbon

  1. 1. Case Study: How Tesco is Adapting its Business Model to Help Cut Carbon David North, Community and Government Director 2 December 2008
  2. 2. Structure <ul><li>Business case </li></ul><ul><li>Strategy </li></ul><ul><li>Integration </li></ul><ul><li>Momentum </li></ul>
  3. 3. Structure <ul><li>Business case </li></ul><ul><li>Strategy </li></ul><ul><li>Integration </li></ul><ul><li>Momentum </li></ul>
  4. 4. Business case <ul><li>Reduces cost </li></ul><ul><li>Builds consumer trust </li></ul><ul><li>Risk management </li></ul>
  5. 5. Business case <ul><li>Reduces cost </li></ul><ul><li>Builds consumer trust </li></ul><ul><li>Risk management </li></ul>
  6. 6. Business case <ul><li>Reduces cost </li></ul><ul><li>Builds consumer trust </li></ul><ul><li>Risk management </li></ul><ul><li>Price </li></ul><ul><li>Range </li></ul><ul><li>Availability </li></ul><ul><li>Acts in an environmentally friendly way </li></ul><ul><li>Ease of getting around the store </li></ul>TOP 5 OF 150 REASONS WHY CUSTOMERS CHOOSE A STORE
  7. 7. Business case <ul><li>Reduces cost </li></ul><ul><li>Builds consumer trust </li></ul><ul><li>Risk management </li></ul>Group emissions by type 07/08: 60% 19% 12% 7% 2% Total – 4.46mT CO2e Electricity Refrigerant Diesel Gas Business Travel
  8. 8. Structure <ul><li>Business case </li></ul><ul><li>Strategy </li></ul><ul><li>Integration </li></ul><ul><li>Momentum </li></ul>
  9. 9. Strategy <ul><li>Emissions measurement and reduction </li></ul><ul><li>Products and services </li></ul><ul><li>Empowerment </li></ul>
  10. 10. Strategy <ul><li>Emissions measurement and reduction </li></ul><ul><li>Products and services </li></ul><ul><li>Empowerment </li></ul>Distribution Existing stores New stores Area Cut emissions from existing buildings by 50% by 2020 Cut emissions per case in our distribution fleet by 50% by 2012 Cut emissions from new stores by average of 50% by 2020 Targets
  11. 11. Strategy <ul><li>Emissions measurement and reduction </li></ul><ul><li>Products and services </li></ul><ul><li>Empowerment </li></ul>
  12. 12. Strategy <ul><li>Emissions measurement and reduction </li></ul><ul><li>Products and services </li></ul><ul><li>Empowerment </li></ul>
  13. 13. Structure <ul><li>Business case </li></ul><ul><li>Strategy </li></ul><ul><li>Integration </li></ul><ul><li>Momentum </li></ul>
  14. 14. Integration into business <ul><li>Leadership and strategy </li></ul><ul><li>KPIs and measurement </li></ul><ul><li>Culture and skills </li></ul>
  15. 15. Integration into business <ul><li>Leadership and strategy </li></ul><ul><li>KPIs and measurement </li></ul><ul><li>Culture and skills </li></ul>
  16. 16. Integration into business <ul><li>Leadership and strategy </li></ul><ul><li>KPIs and measurement </li></ul><ul><li>Culture and skills </li></ul>
  17. 17. Integration into business <ul><li>Leadership and strategy </li></ul><ul><li>KPIs and measurement </li></ul><ul><li>Culture and skills </li></ul>
  18. 18. Structure <ul><li>Business case </li></ul><ul><li>Strategy </li></ul><ul><li>Integration </li></ul><ul><li>Momentum </li></ul>
  19. 19. Momentum <ul><li>Zero-carbon store </li></ul><ul><li>Carbon currency </li></ul><ul><li>SCI </li></ul>
  20. 20. Momentum <ul><li>Zero-carbon store </li></ul><ul><li>Carbon currency </li></ul><ul><li>Sustainable Consumption Institute </li></ul>
  21. 21. Momentum <ul><li>Zero-carbon store </li></ul><ul><li>Carbon currency </li></ul><ul><li>Sustainable Consumption Institute </li></ul>
  22. 22. Momentum <ul><li>Zero-carbon store </li></ul><ul><li>Carbon currency </li></ul><ul><li>Sustainable Consumption Institute </li></ul>
  23. 23. Structure <ul><li>Business case </li></ul><ul><li>Strategy </li></ul><ul><li>Integration </li></ul><ul><li>Momentum </li></ul>

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