Daily Newsletter

11 August 2023

Daily Newsletter

11 August 2023

Tesco receives SBTi’s validation for net-zero science-based targets

The retailer is intending to achieve carbon-neutrality across its entire value chain by 2025.

Soumya Sharma August 11 2023

British groceries and general retailer Tesco has announced that its net-zero science-based commitments have been officially validated by the Science Based Targets initiative (SBTi).

The retailer said this milestone signifies that it has become one of the first global companies to have specific SBTi-validated targets related to greenhouse gas emissions originated from ‘forests, land and agriculture’.

The validated targets will allow Tesco to work towards its commitment to make all of its operations carbon-neutral by 2035 and for its entire value chain by 2050. This target will also support the UN's Paris Agreement to limit global temperature rise to 1.5°C.

Following this achievement, Tesco has outlined an ambitious plan to further minimise emissions across its operations and value chain.

The new commitments include stretching its interim targets to kerb absolute scope 1 and 2 emissions from its operations by 85% by 2030, keeping 2015 as a baseline year.

The retailer is also aiming to reduce absolute scope 3 emissions from its energy and industrial sources by 55% by 2032 and from its forest, land and agrirculture emissions by 39% until 2032, keeping 2019 as the baseline year for both targets.

All emission reduction goals have been set out through Tesco’s 'Planet' agenda, with its associated activities to be categorised into six areas.

These six areas are Decarbonise Transport, Eliminate Waste, Improve Products, Protect Nature, Reduce Store Emissions, and Support Sustainable Consumption.

Tesco aims to transition to fully recyclable packaging for all its own-brand products by 2025.

Tesco CEO Ken Murphy said: “With the effects of climate change now upon us, we are absolutely committed to achieving our target of net zero by 2050.

“It will require us to transform the way we run our business, from how we produce our products in partnership with our suppliers, how we run our stores and transport network, and how we encourage our customers to make healthy and sustainable choices.”

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.

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