From low carbon farms and nature restoration schemes to its Pod EV partnership, Tesco tackles sustainability strategy in multiple ways

‘Greenprint’ for UK farming: Tesco announces plans for low carbon farms

The UK’s largest retailer, Tesco, has announced plans for low carbon farms – and, today, is urging the government to provide a comprehensive plan for farmers as the country ramps up efforts towards net zero carbon emissions.

The supermarket chain plans to set up two low carbon farms in its supply chain, where new methods will be trialled and its suppliers will be supported with their respective innovation strategies.

Tesco said the low carbon farms represented a multi-year commitment to using new technologies and sharing learnings that intend to scale the adoption of sustainable approaches in UK farming.

The farms – one in partnership with potato supplier, Branston, and one in partnership with livestock processor, ABP – will use low carbon fertilisers, alternative fuels, and new cold storage techniques. Innovative thinking is promised in other areas, including soil health, grazing management, biodiversity assessment and management, and genetic improvements.

All in all, the low carbon farms are expected to provide farmers in Tesco’s supply network with a practical demonstration of a route to net zero, which could pave the way to the development of more low carbon farms in the future.

Tesco has announced several farm-focused initiatives in the last few years, including in November 2024 launching a farmer-led sustainability collaboration for the dairy industry called the Future Dairy Partnership.

Speaking in a session today at the Oxford Farming Conference, Tesco’s chief commercial officer Ashwin Prasad will call on the UK government to set a clear vision for sustainable agriculture. Tesco wants to see greater investment and policy certainty, to enable the industry to drive sustainable economic growth.

Prasad’s recommendations are based on a new Greenprint for UK Farming report, produced by Tesco in collaboration with Harper Adams University, which consulted more than 300 UK farmers on the future sustainability of the industry.

The research found 74% of farmers surveyed are concerned about the impact of climate change on their farms and two-thirds (67%) are already seeing the effects. Three-quarters of respondents haven’t been able to implement all the environmental measures they want to due to high upfront costs, the risk of poor financial returns, and a lack of policy certainty from government.

According to Tesco, UK farming would benefit from a long-term land use and food security strategy, as well as improved funding for all stages of innovation that aids sustainability. It is also calling for common environmental standards which farmers can regularly measure against to help prioritise investment in the most effective and sustainable farming techniques.

“As the biggest customer of UK agriculture, we know providing our customers with healthy, affordable and sustainable food wouldn’t be possible without the expertise and dedication of our farmers across the country,” explained Prasad.

“But to continue to thrive in the future, the industry needs more certainty and support. 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.”

Representatives from the farming community reacted negatively to the government’s Budget announcement in October 2024, which included changes to Agricultural Property Relief and an above-inflation hike in the National Living Wage for over-21s. It led to a farmers’ march on Parliament and warnings from the sector that many farms will close and food security will be put at risk.

[image credit: Green Retail World]

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