Tescos leverages AI to cut energy consumption.

Tesco has reduced its energy consumption by an impressive 10% as part of a pioneering trial amending the temperature settings of its refrigeration systems. By increasing the chill temperatures by just 1°C across its refrigerated distribution network, Tesco has not only challenged conventional practices but also achieved considerable cost savings.

The trial, conducted over a 21-month period from January 2022 to September 2023, was facilitated by the introduction of Ethos AI technology from Star Refrigeration. This technology was installed across eight of Tesco’s distribution centres throughout the UK. The AI system analysed data to find the optimal balance between maintaining operational efficiency and minimising energy usage. This included strategic changes and maintenance initiatives, such as purging air from condensers and optimising capital expenditure projects.

The results were significant: Tesco saved a total of 4 GWh of energy and reduced its carbon emissions by 835 tonnes. Rob Redfern, Tesco’s Group Energy Manager, expressed pride in the achievement, noting, “We’re very proud to say that we have reduced energy consumption by an average of 10% across those distribution sites, achieving a return on investment in under three months.”

This initiative is part of Tesco's broader commitment to environmental sustainability, which has seen the retailer make substantial strides in reducing its carbon footprint. In its latest full-year results, Tesco revealed it had more than doubled its profits while also reporting a 61% reduction in its scope 1 and scope 2 emissions, surpassing its 2025 target of a 60% reduction.

Tesco's approach not only highlights its leadership in adopting green technologies but also sets a benchmark for the retail sector in energy management and environmental responsibility.