Tesco is joining the RE100 initiative, pledging to use only renewable electricity by 2030 and becoming a low-carbon business.

Tesco is including what it describes as ‘tough targets’ as part of its commitment to the ideals of the Paris Agreement, and between its UK and Ireland stores alone its pledge will account for almost 1 per cent of the UK’s electricity consumption (2.8 Terawatts).

The move, coming after a year of targeted investor engagement has been praised by ShareAction, with Clare Richards, Campaigns Manager, saying: “In setting its own timeline to source 100 per cent renewable electricity by 2030, Tesco is sending an important message that it sees its future business stability and profitability in driving down emissions at pace. ”

In 2016 a coalition of asset managers and investors wrote to Tesco’s CEO regarding joining the RE100 initiative, and ShareAction raised the issue at the retailer’s AGM. This coalition included insurer Aegon, that was also fulsome in its praise: “Aegon welcomes the signal that Tesco is sending to the rest of the market in setting ambitious science-based targets. To adequately address climate risk, reductions must occur across the food and retail sectors,” noted Emanuele Fanelli, Responsible Investment Manager, Aegon Asset Management. “We look forward to seeing other companies throughout the supply chain respond to this lead and commit to their own low-carbon transitions.”

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