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EU Environment Policy A Tesco Lotus Perspective

EU Environment Policy A Tesco Lotus Perspective. Mr. Steve Hammett CEO, Tesco Lotus 29 May 2008. We fully support the EU’s initiative on “an integrated energy and climate change policy”. We are also in full support of the “European Climate Change Programme (ECCP)”.

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EU Environment Policy A Tesco Lotus Perspective

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  1. EU Environment PolicyA Tesco Lotus Perspective Mr. Steve Hammett CEO, Tesco Lotus 29 May 2008

  2. We fully support the EU’s initiative on “an integrated energy and climate change policy”

  3. We are also in full support of the “European Climate Change Programme (ECCP)”

  4. As a business, it is Tesco Group’s policy to take the lead in breaking the link between business growth and greenhouse gas emissions.

  5. Our Commitment “I am determined that Tesco should be a leader in helping to create a low-carbon economy.” That is a monumental challenge. It requires a revolution in technology and a revolution in thinking. The green movement must become a mass movement in green consumption.” (Sir Terry Leahy, Tesco CEO, January 07)

  6. What have we been doing so far?

  7. Aiming to halve energy use by 2008

  8. We give out extra Clubcard points to environmentally conscious customers

  9. We are cutting down on packaging to reduce waste

  10. We are on track to achieve our target to reduce use of carrier bags by 25% within 2008

  11. We focus more on local sourcing

  12. We are committed to recycling, reducing and reusing whenever possible.

  13. We are reducing energy use, while at the same time investing in efforts to switch to renewable energy.

  14. We are making products more sustainable

  15. Global Targets Halve our global carbon footprint by 2020 Reduce emissions from existing operations by at least 50% by 2020 We aim to achieve such targets through the way we do business, how and what goods and services we provide to consumers and how consumers choose what they buy and consume

  16. Why focus on consumption? UK emissions • Manufacturing • Coal mining • Export transport • Heating (13%) • Private vehicles (10%) • Electricity (8%) • Other transport (4%) 35% Directly controlled by consumers 40% Not directly influenced by consumers 25% Influenced by consumers Customers can have indirect influence here by exerting pressure on government and business to reduce emissions • Agriculture (7%) • Public sector (3%) • Wholesale/retail (2%) Source: UK emissions data, CBI, McKinsey

  17. Q Which three or four do you think companies should pay particular attention to over the next few years ? Change01-07 TOP MENTIONS Concern for the environment +11 - 4 Caring for employees +13 Caring for customers Safety of the workforce +2 Providing good quality products/ services - 4 +8 Conserving energy Investing for the future -10 Keeping prices reasonable - 8 Training the workforce -12 Providing more jobs -14 Providing equal opportunities -3 Supporting activities in the community +1 Base: All British Public (933), August 2007 Increasing awareness among European customers

  18. 3 Key Barriers • Going green makes life expensive or complex • Lack of information about what to do; and • Individual actions won’t make a difference

  19. Price and affordability

  20. Information

  21. Carbon labelling trial • 20 products in the following categories: • Laundry Detergent • Orange Juice • Potatoes • Light bulbs • Pilot launched 29 April

  22. Making individual actions count

  23. Knowledge and Skills

  24. Working with the EU • ERRT Energy Declaration • Leading work towards an EU Retail Environmental Action Plan (REP) • Support for policy development including: • Review of energy labelling • Extension of energy using products directive • VAT exemptions for Green products

  25. What are we doing at Tesco Lotus?

  26. We have a clear objective to be thebusiness leader in Thailandon Green Initiatives

  27. Clear objective on the environment: Reduce carbon emissions from existing operations by at least 50% by 2020

  28. Tesco Lotus business footprint: • Over 450 stores in 56 provinces • Carry over 32,000 types of products • Employs over 36,000 full-time staff • Engaged with over 9,100 suppliers • 28 million customers per month

  29. Tesco Lotus – Green InitiativeHighlights • Carbon footprint measurement • Supply chain improvements • Green Stores • The first and biggest biodiesel fleet in Thailand • NGV service bus for the customers • T5 light bulbs • Plant 9 Million Trees

  30. Carbon Footprint Direct Carbon Footprint Offices Supplier Transport Customer Transport Refrigerants Business Travel Consumption & disposal Production Facilities Distribution Centres Delivery Trucks Stores Other Assets Waste Disposal System Staff Commute One of the 1st in Thailand

  31. Improving the supply chain

  32. Green StoresI – Rama I From the 1st Green Store on Rama I Road was built in 2003

  33. The First Green Store at Rama I 2,880 sets of 160 watts Solar Celloccupied 7,000 square metres on roof Solar powered lighting for bus stop

  34. The First Green Store at Rama I Harvested rain water used in cooling Tower; reduced mist and noise from cooling tower Use treated water at decorative pond

  35. From the 1st Green Store to Green Store 2 in Salaya

  36. Eco-friendly store • 57 initiatives including 4 renewable energy : Solar Cooling, Wind Turbine, Biogas and Biodieselplants Biogas and Biodiesel Plants Wind Turbines Solar Cooling

  37. Eco-education Centre • Interactive learning center to educate the youth and the • general public on environmental • initiatives

  38. Community Store • Pleasant environment to shop with recycled water pond and • landscaping • Create environmental awareness through signage and store items

  39. Energy Saving imitative highlights T5 energy saving light bulbs Water Pond

  40. Biodiesel Fleet The 1st and largest delivery biodiesel fleet in Thailand

  41. NGV Service Bus for Customers

  42. Special T5 Light Bulbs Green Partnership: Tesco Lotus –Phillips Thailand– Chulalongkorn University

  43. Plant 9 Million Trees

  44. Conclusion • Tesco Group of companies are determined to be the leader in the business • sector on environmental conservation and energy saving • We believe in breaking the link between business and economic growth and • carbon emission • Many of the projects that we do are high capital and do not have a direct • immediate return to the business; however, we are investing in the future • and we are beginning to see the results • Environmental conservation and energy saving is in our business DNA; and • we are ready to share our learning with all interested parties

  45. THANK YOU

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