Tesco TNFD case study: Palm oil traceability and determining priority sourcing locations in Indonesia

Detalles

Multinational food company Tesco participated in Global Canopy's Nature-Related Financial Disclosures (TNFD) Task Force pilot programme ahead of the launch of the TNFD's final recommendations in September 2023.

The TNFD has developed a series of recommendations and guidelines for organizations to identify, assess, manage and, where appropriate, disclose their dependencies, impacts, risks and opportunities in relation to nature. Its recommendations and guidance help organizations integrate nature into decision-making and ultimately support a shift in global financial flows from nature-negative to nature-positive outcomes.

With the support of Nature-Based Insights and Global Canopy, Tesco piloted the TNFD's LEAP approach to identifying and assessing its nature-related issues. The pilot project focused on mapping Tesco's palm oil supply chain and identifying priority locations in Indonesia for further analysis.

In the context of the upcoming entry into force of the EU No Deforestation Regulation (EUDR), it is important for Tesco to be aware of supply chain disruptions and disruptions in order to meet its deforestation-free requirements and put in place measures to prevent the exclusion of smallholders from its supply chain. As part of the pilot programme, Tesco used volumetric analysis to estimate its palm oil purchase volumes and the biodiversity footprint of the Indonesian districts from which it is likely to source. Tesco used the assessment data as the basis for its prioritisation selection.