Tesco is Leading the Pack for Investment in UK Renewables

UK retail giant Tesco is pushing ahead in its efforts to achieve carbon neutrality targets by 2035.

The company is integrating multiple high-impact strategies into its operations, ranging from developing in-house renewable energy capabilities to reimagining its supply and distribution channels.

The UK's largest ever PPA for solar energy

One of Tesco's most notable strides forward in recent years is its new Power Purchase Agreement (PPA) for solar energy, the largest corporate PPA in the UK to date.

This PPA was established in partnership with EDF, one of Europe's foremost energy providers.

The agreement will draw 65% of solar-generated power from Cleve Hill Solar Park, a huge renewables project located on the north Kent coast.

Matthew Nunn, Director of EDF Business Solutions, says: “This is being delivered utilising EDF’s unrivalled energy market knowledge and expert trading capabilities, to guarantee a reliable source of clean and affordable energy.

“It’s great to see solar power playing such an important role in Tesco’s progress towards carbon neutrality.”

With a monumental capacity of 373MW, Cleve Hill is the UK's largest solar and energy storage project and is poised to commence operations by early next year.

The 15-year deal with Tesco is not just an investment in renewable energy, but a building block and vote of confidence for the country's future green energy infrastructure.

Ken Murphy, Group CEO of Tesco, says: “We’re delighted to be announcing such a significant step in our journey towards carbon neutrality across our own operations by 2035.  

“Cleve Hill solar park, with its ability to generate up to 10% of our UK electricity demand, joins a number of other Power Purchase Agreements we’ve announced over the last five years. 

“With its ability to provide vital energy storage infrastructure, it’s a key part of the renewable energy strategy in the UK and further evidence of our commitment to tackle climate change and source green electricity from innovative projects like this.”

The development team behind Cleve Hill, led by Keith Gains, the Managing Director and UK Regional Lead from Quinbrook, underscores Tesco’s support as a testament to the project’s value.

He says: “Tesco’s commitment to Cleve Hill Solar Park underscores the value of the project which has set new benchmarks for UK solar. Quinbrook is proud of developing Cleve Hill as we believe it is a blueprint for the next generation of energy transition infrastructure in the UK."

“Quinbrook is proud of developing Cleve Hill as we believe it is a blueprint for the next generation of energy transition infrastructure in the UK."

Tesco's wider sustainability commitments

Tesco is not just focusing on renewable energy; the retail giant has a range of comprehensive environmental goals.

For instance, Tesco aims to reduce food waste by 50% by 2025 and achieve a deforestation-free status for key commodities, illustrating the company’s broad approach to trimming its carbon footprint.

Additionally, it plans to raise the proportion of healthy food sales to 65% by the same year while ensuring all primary risk commodities are 100% deforestation-free.

The sustainability targets are aligned with science-based benchmarks validated by the Science Based Targets Initiative (SBTi), aiming for an 85% reduction in absolute Scope 1 and 2 emissions and a 55% cut in absolute Scope 3 emissions from energy and industrial sources by 2030 and 2032 respectively.

SBTi endorsement ensures Tesco meets internationally recognised standards, potentially influencing industry-wide shifts towards more sustainable practices.

Tesco stays committed to reaching these goals by implementing diligent changes across various departments — from supplier collaboration to innovations in product and service delivery methods.

Ken says: “With the effects of climate change now upon us, we’re 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. 

“We’ve led the way on action on climate change, from adopting 100% renewable electricity across the group to scaling innovations in our supply chains. We now must work even harder, in collaboration with our suppliers and partners, to achieve our goals. 

“These ambitious targets, validated by the SBTi, now provide us with a clear roadmap of action over the next ten years and beyond.”

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