Better Health for All

Tesco demonstrates a commitment to health through several initiatives. It provides comprehensive mental health programs for its employees, including free access to digital wellness tools like Headspace and SilverCloud for 300,000 employees during the COVID-19 pandemic

. Additionally, 310,000 UK employees and their families, along with 13,500 employees in Ireland, have access to virtual GP appointments, which include services from sleep therapists and nutritionists , . The company also engages in substantial public health education, partnering with Cancer Research UK, the British Heart Foundation, and Diabetes UK. These collaborations have raised over £25 million for health interventions since 2018 , focusing on lifestyle advice and early disease detection. Tesco pharmacies further contribute by promoting early cancer detection , raising awareness about symptoms, and encouraging customers to consult specially trained pharmacists . As a grocery retailer, Tesco does not hold healthcare-related patents or intellectual property.

Fair Money & Economic Opportunity

Tesco Personal Finance Group recognized a provision of £27.5 million as of February 29, 2024.

This provision is for refunding previously recognized interest and fees, along with associated redress program costs, to customers with Consumer Credit Act (CCA)-regulated products where administrative post-contractual documentation requirements were not fully met.

Fair Pay & Worker Respect

Tesco PLC has faced significant issues regarding worker respect and fair pay. In the past three years (2023-2025), the company accumulated 12 substantiated labour standards violation cases resulting in penalties.

Additionally, between December 2022 and November 2023, Tesco was linked to eight cases of migrant worker abuses, including racism and wage theft. In September 2024, the UK Supreme Court ruled against Tesco's use of 'fire and rehire' tactics to remove pay entitlements from warehouse workers. Furthermore, in March 2024, Tesco faced criticism for delaying a pay rise, which resulted in many employees earning below the minimum wage for nearly a month. Regarding executive compensation, in the 2023/24 financial year, the CEO's total compensation of £9.93 million was 430 times the average salary of a Tesco employee.

Fair Trade & Ethical Sourcing

Tesco has been implicated in multiple severe forced and child labor incidents within the last three years. In September 2024, an investigation revealed Tesco's implication in exploiting shrimp farm workers in Vietnam, Indonesia, and India, with instances of child labor and debt bondage.

In December 2022, 130 Burmese migrant workers initiated legal action against Tesco for alleged forced labor conditions at a Thai garment factory, which Tesco had used from 2017-2020. Tesco's supply chains are also linked to widespread forced labor involving migrant women in cotton spinning-mills across Tamil Nadu. In 2022/23, the company identified 15 cases with modern slavery indicators in its operations and supply chains. While some payments were made to workers for shortfalls in 2021/22 and 2022/23, full remediation for the major forced labor cases is not indicated. High-risk tier 1 supplier sites undergo audits on an annual basis. Corrective actions for non-compliances are normally closed within six months. Adherence to ethical sourcing requirements, including signing a code of conduct aligned with the Ethical Trading Initiative Base Code, is a condition of supply for all Tesco suppliers.

Honest & Fair Business

Tesco was fined $10.4 million (£7.5 million) in early February 2026 for selling food past its use-by date

, involving 22 offenses across three stores with 67 items found to be out of date by 1 to 17 days . Historically, in 2014, the company admitted to overstating its profits by £263 million , leading to a £129 million fine and compensation paid in 2017 . An investigation in 2015–2016 also revealed Tesco had delayed payments to suppliers . The company is currently facing a lawsuit alleging exploitative labor practices in its Thai supply chain, including underpayment and excessive working hours . Separately, Burmese migrant workers in a Tesco supply chain factory reported severe labor abuses between 2017 and 2020 , leading to legal proceedings in 2022 . Tesco has an Anti-Bribery Policy with a zero-tolerance approach and utilizes blockchain technology and regular supplier audits to enhance supply chain transparency . Its 2023 Modern Slavery Statement outlines due diligence processes but lacks specific details on policies, training, and monitoring mechanisms .

Kind to Animals

Tesco offers various RSPCA Assured products, including 'Room to Roam' chickens, Scottish salmon and trout, pork, and free-range eggs

. However, in 2024, the RSPCA Assured scheme faced allegations of animal welfare breaches, such as overcrowding and poor hygiene, leading to a comprehensive review and investigation . This raises concerns about the integrity of the certification for products Tesco promotes as higher welfare. Separately, Tesco has announced plans to improve welfare standards for all fresh chicken by mid-2025, aiming to provide 20% more space than the industry standard, reducing density to 30kg/m² . The company also relaunched its Sustainable Pig Group, which includes measures to reduce stocking densities and enhance farrowing .

No War, No Weapons

Tesco's core business is grocery retail, with no revenue from arms or defense contracts. The company adheres to high humanitarian procurement standards, strictly prohibiting product sourcing from regions such as Golan Heights, North Korea, Russian-occupied territories, Syria, and the West Bank.

This commitment results in zero procurement from active conflict zones. Tesco fully supports the UN Guiding Principles on Business and Human Rights and has implemented a five-stage human rights supply chain program across its own-brand products. For human rights due diligence, Goods Not For Resale suppliers with manufacturing sites in high-risk countries must undertake annual SMETA audits, while Fulfilment and Retail Labour Services suppliers must undertake biennial SMETA audits.

Planet-Friendly Business

Tesco's emission reduction targets were validated by the Science Based Targets initiative (SBTi) in August 2023.

These targets include an 85% reduction in absolute Scope 1 and 2 emissions by 2030 from a 2015 baseline and a 55% reduction in Scope 3 emissions from energy and industrial sources by 2032 from a 2019 baseline, aligning its climate action with the latest standards. The company has committed to achieving carbon neutrality across its own operations by 2035 and its entire value chain by 2050, with these net-zero targets also validated by SBTi. As of April 2024, Tesco reported a 61% reduction in Scope 1 and 2 emissions against its baseline, surpassing its 2025 target of 60%. Additionally, Tesco achieved a 34% reduction in refrigerant emissions since 2015, saving 194,000 tCO2e. The company is rolling out electric delivery vans, introducing four electric HGVs and solar-powered refrigeration units by 2025 to reduce diesel road miles by 30,000 annually, and plans for a 100% electric home-delivery fleet by 2030. In January 2023, Tesco launched the UK's largest commercial roll-out of low-carbon fertilizers, aiming to lower greenhouse gas emissions by 20% in the first year across 1,300 hectares. Tesco also plans to install solar panels on 100 large UK stores within three years, with 14 stores already having solar panels installed by October 2021.

Respect for Cultures & Communities

Tesco faced criticism in 2022 for security-tagging makeup for dark-skinned shoppers and for a manager offering a Black woman and her children bananas after she was followed by security guards.

In 2016, a child of dual heritage received a race discrimination payout from Tesco. Following the May 11 incident, Tesco launched an internal investigation and refreshed training for the colleagues involved. The company states it makes efforts to protect cultural sites and has partnered with the World Wide Fund for Nature to reduce environmental impact, which includes protecting biodiversity and cultural sites. No incidents disrupting cultural or heritage sites were reported.

Safe & Smart Tech

Tesco's AI-driven Clubcard personalization, launched in September 2024, has raised privacy concerns over intrusive surveillance

, with critics arguing it crosses ethical boundaries. This suggests privacy is consistently deprioritized in product development and indicates significant gaps in AI ethics governance. Additionally, the company's AI use in supply chain management, implemented in May 2024, faces challenges in addressing social and governance metrics . In November 2021, a data protection breach involving the loss of an employee's personal data highlighted issues under GDPR, indicating gaps in regulatory compliance . While a hacking attempt in October 2024 disrupted online services , no customer data was compromised . There are no documented data breaches for Tesco within the past three years, and no incidents of unauthorized data use by the company. The company's actions regarding AI personalization also suggest practices that undermine user privacy, reflecting its stance on digital rights.

Zero Waste & Sustainable Products

Tesco has implemented over ten waste reduction initiatives, including removing over 2.3 billion pieces of plastic from its UK products, redistributing surplus food, and launching refill programs.

The company aims to halve food waste by 2025. Tesco integrates circular design principles through initiatives such as a zero-waste shopping platform with refillable packaging, tray-to-tray recycling for ready meals, and converting customer-returned soft plastics into new food-grade packaging. , , Ready meal packaging contains 30% recycled content.