How Tesco went greener and cut its energy bill

Academics at Loughborough University have helped Tesco reduce its carbon footprint and save on its energy bill by proposing alterations to the working practices of its store staff. Comment from Professor Andrew Dainty of Loughborough’s School of Civil and Building Engineering.

Academics at Loughborough University have helped Tesco reduce its carbon footprint and save on its energy bill by proposing alterations to the working practices of its store staff. Comment from Professor Andrew Dainty of Loughborough’s School of Civil and Building Engineering.

The four-year project explored the UK business’s energy usage and efficiency through data evaluation, as well as one-on-one interviews with workers and managers, focus groups, and observations across hundreds of the company’s UK store metering network. The team, led by Professor Andrew Dainty of Loughborough’s School of Civil and Building Engineering and Dr Sian Christina (now at Imperial College), and including Dr Patrick Waterson from the Loughborough Design School and experts from the University of East Anglia (UEA), are waiting for the key findings to be published in the Human Resource Management Journal in a paper entitled Shut the Fridge Door! HRM Alignment, Job Redesign and Energy Performance, this week.

The research shows how goal-driven incentives for each worker coupled to careful job design can bring about radical reductions in energy use in the retail environment.

“As the UK’s largest retailer, Tesco had already significantly invested in technological innovations in store to save energy,” said Prof Dainty. “They felt that there was an opportunity to augment this with other interventions aimed at bringing about behavioural changes from their staff and approached Loughborough to explore their store operations from a socio-technical perspective.

“We systematically examined the ways in which energy was consumed in the stores and proposed and trialled a series of interventions to support such change.

“These included goal setting, job redesign, improvements to energy visibility via improved smart metering displays, and various incentive structures, all of which were designed to complement and be sympathetic to the design of their retail environment.” Before Prof Dainty and his team were commissioned to conduct the research, each of Tesco’s 769 UK supermarkets had relied on in-store ‘energy champions’.

“The idea of an energy champion, in principal, is fine,” said Prof Dainty. “But placing so much responsibility onto one person has its drawbacks. For example, it removes the accountability for energy saving from everyone else. Our role was to see if we could mainstream energy conscious behaviours for every employee. And if you consider that Tesco employs more than 450,000 worldwide the cumulative impact of each employee making tiny changes to their working practices is huge.”

Prof Olga Tregaskis, of UEA’s Norwich Business School, said: “Aligning training and performance management human resource processes with how jobs are designed can be a powerful lever in delivering significant organisational performance outcomes.

“Human resource practices and jobs design can help organisations deliver not only on performance efficiencies but also wider societal wellbeing outcomes, in this case energy reduction. “Giving employees the authority to use their expertise and rewarding them for this can yield significant positives for firms in terms of their economic and societal impacts.”

Between 2010 and 2014, the Loughborough team worked with Tesco to amend the job descriptions and working practices for every in-store role. A series of changes were gradually implemented across a range of test stores with a control group being used to allow the effects of the measures to be understood. The outcome was a saving of £4 million in the first year that the new responsibilities were put in place.

“The programme of measures have now been adopted in the form of performance targets and energy checks”, said Prof Dainty. “Energy consumption and checks on energy use is now an integral part of the performance expectations of the workers – it’s about foregrounding energy as an important factor in daily performance. Perhaps most importantly, the research has demonstrated how energy consumption can be reduced without detrimentally affecting other performance criteria such as sales and the customer experience.”

Read more

Latest News

Read More

Business ethics v the bottom line

22 December 2024

Newsletter

Receive the latest HR news and strategic content

Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

Latest HR Jobs

Location : Malvern Contractual hours : 35 hours per week Basis : Full Time, Permanent The job requirements are detailed below. Where applicable the skills,

University of Nottingham – HR Business Partnering & Emp Relations Salary: £34,866 to £46,485

HRUCSalary: £36,964 to £39,023 per annum including London Weighting

Swansea University – Human ResourcesSalary: £26,038 to £28,879 per annum

Read the latest digital issue of theHRDIRECTOR for FREE

Read the latest digital issue of theHRDIRECTOR for FREE