Tesco sets SBTi-validated 55% Scope 3 emissions cut by 2032

Tesco unveiled SBTi-validated targets to cut absolute Scope 3 energy and industrial emissions 55% by 2032 and Scope 1 and 2 emissions 85% by 2030. The move sets a supply-chain decarbonisation benchmark relevant to Indian food and beverage suppliers in global retail value chains.

UK retailer Tesco unveiled new climate commitments, including interim targets to cut Scope 3 emissions from its supply chain at forest and agricultural levels. It targets an 85% reduction in absolute Scope 1 and 2 emissions by 2030, a 55% reduction in absolute Scope 3 emissions from energy and industrial sources, and a 39% decrease in forest, land, and agriculture (FLAG) emissions by 2032, using a 2019 baseline. These support Tesco's 2021 ambitions for net-zero operations by 2035 and across its value chain by 2050.

Food and beverage suppliers are directly affected, as the sector contributes around a third of global greenhouse gas emissions, predominantly from supply chains rather than direct operations. Over 90% of Tesco's emissions footprint originates in its value chain, with more than half from producing the goods it sells. Tesco's Planet agenda targets 100% deforestation-free primary risk commodities by 2025, sustainable agricultural innovations like low-carbon fertilisers with vegetable suppliers, and compels suppliers to commit to net-zero ambitions by end-2023.

Indian food, beverage, and agricultural suppliers to global retailers should monitor Tesco's supplier net-zero commitment deadline of end-2023 and its 2025 deforestation-free commodity goal. Suppliers can prepare for FLAG-related requirements as Tesco becomes one of the first companies with SBTi-endorsed FLAG targets. Affected entities should track demand for low-carbon fertilisers and deforestation-free sourcing, given that over 90% of Tesco's footprint and the retailer's interim 2032 targets flow through its supply chain.

Key figure — Target: 55% absolute Scope 3 energy and industrial cut by 2032