Tesco to build low-carbon concept farms, urging clearer UK policy on sustainability

The UK’s largest supermarket chain, Tesco, announces its commitment to leading the farm supply chain in reducing carbon emissions.  (Photo: Tesco)

Tesco, the UK’s largest supermarket chain, announced on Jan. 10 its collaboration with local farms to introduce a range of sustainable carbon reduction solutions, aiming to reduce environmental damage across all stages of production, from fertilizers to cold storage.

The company is also calling on the government to provide clearer policies to help farmers tackle the challenges of climate change.

Tesco launches partnership for low-carbon farms

At the Oxford Farming Conference, Tesco’s Chief Commercial Officer, Ashwin Prasad, revealed that the supermarket has partnered with major suppliers, including potato supplier Branston and meat processor ABP, to build two low-carbon concept farms. These farms will experiment with innovative technologies to accelerate sustainability efforts across the supply chain.

The focus of Tesco’s efforts will include eight key areas:

1. Low-carbon fertilizers
2. Alternative fuels
3. State-of-the-art cold storage systems
4. Carbon removal techniques
5. Advanced soil health management
6. New grazing management strategies
7. Biodiversity assessment and enhancement
8. Genetically-based improvements
    

These technologies will be implemented in the two new farms, aiming to set a demonstration effect that will attract more stakeholders to join the initiative.

Prasad emphasized that as the largest consumer of UK agriculture, Tesco recognizes that sustainable food systems rely on farmers. "Many of the solutions we need exist today, but government and the food industry need to make sure we have the right incentives in place so that UK agriculture can reach its potential as a driver of both sustainability and economic growth," he said.

Tesco plans to invest in 2 low-carbon concept farms. (Photo: Tesco)

70% of farmers are concerned about climate change

A report published by Tesco in collaboration with Harper Adams University in January surveyed over 300 UK farmers. The findings revealed that 74% of farmers are concerned about the impact of climate change on their farms, and 67% have already felt its effects.

However, more than 70% of farmers are unable to adopt comprehensive environmental protection measures due to high upfront costs, concerns about returns on investment, and policy uncertainty.

The report urges the UK government to prioritize green agriculture, recommending support for farmers to move towards sustainable carbon reduction through land use, food security strategies, and encouragement of innovation.

Previously, Tesco has been active in promoting sustainable agriculture practices. In April 2024, Tesco partnered with National Westminster Bank (NatWest) to offer farmers favorable interest rates for transitioning to sustainable farming. Additionally, Tesco supports a carbon reduction fund, allowing farmers to receive advances for installing solar power systems.

According to Tesco's official website, the company set a net-zero goal in 2009 and has since reduced its Scope 1 and Scope 2 emissions by 61% as of 2015. Tesco aims to achieve carbon neutrality by 2035 and reach net zero across its entire supply chain by 2050.

Source: Sustainability News, Tesco, AgTechNavigator