Summary
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.
Details
- The United Kingdom
- Global
All suppliers of Tesco Own Brand food products and Own Brand formulated non-food products supplying to Tesco stores in the UK and Republic of Ireland.
Deep dive
Background
In October 2021, Tesco formally announced its “Value Chain Net‑Zero by 2050” commitment (covered in a message from the then chief product officer), asking suppliers to begin sharing greenhouse gas (GHG) data and setting reduction targets. The policy took effect immediately, with suppliers asked to report their current emissions by the end of that calendar year and to establish science‑based targets by the end of 2023. These and other supplier sustainability reporting requirements are current set out in a document titled Environment Policy – Food and Non-Food Formulated Sourcing. Prior to this, Tesco had piloted sustainability measures such as carbon labelling of products, having introduced the Carbon Reduction Label on a range of own‑brand items (e.g. detergent, fruit, and bulbs) beginning in 2007, although the scheme was later discontinued in 2012. The emissions reporting requirements aligns with broader UK national climate policies supporting the country's net‑zero emissions by 2050 target and joint initiatives to enhance supply chain sustainability such as Manufacture 2030 (M2030).
Reporting requirements
To measure the overall impact of Tesco’s supply chain, monitor progress, and evaluate supplier performance, all suppliers are required to report their manufacturing carbon emissions. In addition, suppliers of agricultural products must provide data on agricultural carbon emissions from sample farms. Suppliers are also expected to implement emissions reduction policies and practices, and to clearly demonstrate how these efforts contribute to achieving Tesco’s supply chain climate targets. Each supplier should establish a long-term climate strategy that addresses the most significant climate-related risks and impacts within their operations. Reporting is done via Tesco’s Supplier Network online portal, which collects emissions figures, reduction plans and evidence annually. Broader environmental reporting requirements including sourcing credentials (e.g. responsible sourcing certification for palm oil and soy) are also expected.
Consequences of Noncompliance
Being a private entity, Tesco’s supplier emissions reporting policy emphasizes collaboration rather than punitive measures. Non-compliant suppliers are not subject to financial penalties for falling short of reporting standards as is commonly the case with government sustainability policies. Focusing on engagement, suppliers might wish to communicate promptly if they cannot meet reporting requirements, allowing time to work together towards compliance. Though not expressly stated in the policy document, repeated non‑submission or persistence in data quality issues may lead to reduced prioritization in procurement decisions as Tesco reserves the right to escalate persistent non-compliance internally.
Implementation Status
Currently, Tesco’s emissions reporting policy is fully rolled out and embedded within its Supplier Network platform, supported by mandatory submission of manufacturing and, where applicable, agricultural emissions metrics. Tesco has also pioneered a sustainability‑linked supply chain finance initiative, offering preferential financing rates to suppliers that disclose emissions data, set targets, and deliver verified reductions, aligning Tesco’s ESG priorities with those of its supplier base. Currently, hundreds of suppliers are involved in the initiative, with billions of pounds in sustainability-linked invoice financing provided annually through various banking partners. Apart from financing, Tesco's 2025 Sustainability Report lists several other efforts aimed at engaging with suppliers to tackle carbon emission hotspots including the launch in January 2025 of two low-carbon concept farms within Tesco's supply chain to test sustainable farming practices and support suppliers in accelerating innovation.
Resources
