In our Q4 2019 engagement with Tesco plc, we discussed how strong corporate culture is vital to support the company’s ambitious sustainability efforts. Tesco was the first FTSE 100 company to set a target to become a zero-carbon business by 2050. The company has also committed to source 100% of its electricity from renewable sources by 2030, and so far, has achieved 58% of this goal.
In our engagement we found that Tesco’s board places significant focus on the wider culture of the business. Tesco’s sustainability strategy, the “Little Helps Plan,” is inspired by the company’s core values and aims to mobilize all parts of Tesco’s business to focus on the social and environmental challenges that matter most to its customers, employees, suppliers and stakeholders. One way to measure culture is via employee surveys; notably, Tesco’s “Great place to work” measure has remained stable at 83% for the last three years.
Creating a culture of innovation across the business is one of the priorities for the board, as innovation will be essential in helping the company achieve its sustainability-related goals. Tesco also ensures that its corporate culture is reflected throughout its supply chains. Global supplier surveys are conducted twice a year, and the results are reviewed by the board.