TESCO KNOWLEDGE HUB - 2DEGREES

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TESCO KNOWLEDGE HUB - 2DEGREES
Tesco
Knowledge
Hub
     Tesco collaborates with Tier 1 suppliers to cut carbon

CHALLENGE                                  SOLUTION                                      RESULTS
Tesco have committed to reduce             Tesco took action and partnered               • The world’s first and largest Tier
carbon emissions in the products           with 2degrees in 2010. Together,                1 supply base collaboration
they sell by 30% by 2020. To help          they developed the Tesco                        program, serving 2,100 members
achieve this, Tesco recognised             Knowledge Hub – a ground-                       across 40+ countries
that one of the things they needed         breaking, actively managed                    • Carbon and cost reductions
to focus on was large scale                platform that enables Tesco’s
collaboration with their supply            top suppliers to work together to             • Accelerated adoption of best-
chain, whose carbon footprint              reduce the energy costs, waste                  practice solutions
is 20 times greater than their             and environmental impacts of the
direct footprint. Tesco required a         products Tesco buys.
solution that would allow them to
collaborate closely, quickly and
effectively with their suppliers in
order to support their ambitious
carbon targets. Such a solution did
not yet exist.

                 “I don’t know of any other resource which is as dynamic, and which
                has been growing consistently in its capability, functionality, reach and
                     access to people willing to share knowledge and learnings.”
                           Tesco supplier, Jake Backus, Customer Sustainability Director, Coca-Cola

                                                     CASE STUDY
TESCO KNOWLEDGE HUB - 2DEGREES
HOW IT WORKS                       Suppliers work together, in an
                                   atmosphere of trust, to share
                                                                                 Where they identify common,
                                                                                 high-value challenges, 2degrees
                                   knowledge and best practice,                  managers work with Tesco and 3rd
This private online group          solve problems and make informed              party experts to create practical
unites Tesco and its               decisions. They are joined by Tesco           solutions, such as The Buying Club
                                   representatives and independent               (see next page). They also create
top 1,000 suppliers in             experts and partners, including               valuable content and facilitate
their common quest to              WRAP, IDG and the Carbon Trust.               offline collaboration, arranging site
reduce the energy costs,           The group is actively managed by
                                                                                 visits and special events.

waste and environmental            dedicated 2degrees Community                  The Knowledge Hub is the first and
                                   Managers, who facilitate online               largest program of its kind, serving
impacts of the products
                                   collaboration, alerting members               2,100 members across more than
Tesco buys.                        to relevant insights, webinars,               40 countries.
                                   discussion forums and case studies.

        “The Knowledge Hub is probably one of the most relevant and helpful sources
        of information and connection on the subject of sustainability for corporates.”
                               Michael Alexander, Head of Environment, Diageo

   “We were really pleased and impressed by the number of great responses to our question
   around sustainable transport. Understanding what the likes of Foster & Partners, Kelloggs
       and Coca Cola are doing in this area has helped us spark discussions at Dyson.”
                                     Nicola Warner, CSR Manager, Dyson

                                                        Watch this video to see how a site visit to APS Salads
                                                        inspires others to adopt sustainable best practice

    “A valuable source of sustainability hints, tips and ideas from the moment we joined.
    …I can always pick up the phone, drop an email or post a query and know that we will
            get an informed, professional and engaging response – every time!”
                          Collette Butterworth, CSR & Funding Officer, Stobart Group
TESCO KNOWLEDGE HUB - 2DEGREES
THE BUYING CLUB                      Managed by 2degrees and
                                     developed in collaboration with
                                                                               2. Savings of up to 25% on the cost
                                                                                  of low energy lighting equipment
                                     Tesco and the Carbon Trust, The              and installation…
The Buying Club is the first         Buying Club is available to all
                                                                               3. Resulting in savings of up to 80%
of its kind – a collaborative        members of the Tesco Knowledge
                                                                                  on energy bills.
                                     Hub, who can participate
purchasing club that                                                           On average, lighting installations
                                     anonymously.
helps Tesco’s suppliers                                                        with The Buying Club pay for
invest in energy efficient           Member benefits include:                  themselves in under 3 years with ECA,
lighting by negotiating              1. Expert advice and guidance from
                                                                               and just over 3.5 years without ECA.
                                                                               Tesco and 2degrees are exploring
substantial bulk discounts              the Carbon Trust on the
                                                                               how this concept can be extended
and offering expert advice.             equipment they need and the
                                                                               to other areas and cover a wider
                                        energy savings they could make.
                                                                               range of energy saving equipment.

                  “The Buying Club is a
                wonderful initiative with a
                 win-win-win situation.”
               Shah Khan, Typhoo’s Group Technical
                and Ethical Manager, Typhoo Group

          “We are committed to using our scale for good and this initiative is just one
              way we can do that, helping our suppliers make energy savings.”
                    Kene Umeasiegbu, Climate Change and Sustainable Sourcing Manager, Tesco
TESCO KNOWLEDGE HUB - 2DEGREES
RESULTS…                                   Ground-breaking innovations and
                                           positive press Tesco and 2degrees’
                                                                                      Accelerated adoption of best
                                                                                      practice:

A CLOSER LOOK                              partnership has resulted in:
                                           • The first and largest fully-linked
                                                                                      • Knowledge-sharing and expert
                                                                                        advice means suppliers can move
Carbon and cost reductions:                  Tier 1 supplier collaboration              faster and with greater confidence
• From individual projects: Suppliers        program in the world                     • Healthy competition between
  report carbon and cost reductions        • Awards for Tesco, including:               suppliers encourages swift
  from projects directly related to        - A Gigaton Award for outstanding            adoption
  the Knowledge Hub                          carbon reductions and
                                                                                      Unprecedented competitor
• From collaborative projects: E.g.          sustainability performance
                                                                                      co-working for the common
  The Buying Club, with quoted             - Grocer Gold Award 2013 for ‘Green        good, inviting one another for site
  savings in under one year of 3,266         Retailer of the Year’                    visits, suggesting solutions, sharing
  tonnes of carbon and £723,152 in
                                           - Shortlisted in the 2014 IGD Awards       innovations and even collaborating
  electricity and maintenance
                                             for the Buying Club                      on product development

                                                                                      Stronger supplier relationships
                                                                                      for Tesco.

WHAT MAKES THIS POSSIBLE?

                                                                     “Tesco is leading the way in sustainable
1. Commitment to use their scale for good
                                                                       best practice, by finding solutions to
2. Sensitivity towards supplier concerns, allowing
                                                                  real-life problems and sharing knowledge and
   the blind collaboration that ensures the Buying Club
   works so well                                                   innovation with our suppliers to reduce costs
3. Willingness to pioneer and adopt innovative                       both financially and to the environment.”
   peer-to-peer solutions at scale                                     Andrew Hill, Brand Communications Manager, Tesco

2degrees helps major corporations cut costs, reduce risk and
achieve smarter growth by being more sustainable. It does this
by helping to transform business practices, making it simple
and efficient to work closely and at scale with suppliers, internal
operations and customers.
Our unique capability results from continued investment in the
bespoke technology, innovative processes and expert people
that make all this possible.
                                                                                                                              ©2014 2degrees Network. All rights reserved.

     e: tamarajames-thomas@2degreesnetwork.com | t: +44 (0) 1865 597 647 | w: www.2degreesnetwork.com
TESCO KNOWLEDGE HUB - 2DEGREES
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