Tesco has terminated its relationship with its contractor after an internal review found that the supermarket giant’s food, which it believed was being processed for animal feed, was actually going to anaerobic digestion.

As a result, after removing animal feed from its reported numbers for 2022/23, Tesco’s Group food waste reduction was 18% against its baseline – a number significantly lower than its previously reported reduction of 45%.

Tesco group quality, technical and sustainability director Claire Lorains said: “While anaerobic digestion can have a role in recovery of energy and avoids food going to landfill, under the Food Waste Hierarchy, we count food going to anaerobic digestion as waste.

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“As we had worked with our former processor over a number of years, we believe it is right to exclude animal feed from our data. We are therefore withdrawing our previously reported food waste data, and we expect our reduction this year will be similarly affected.”

Tesco confirmed that its donation of unsold food to community groups and shared with colleagues through its Colleague Shop are both “unaffected”, alongside its progress to halve food waste elsewhere across the business.

Within the retailer’s progress report, which was published today, it highlighted the ways in which it has reduced food waste, including introducing its reduced-to-clear sections in over 300 stores, and encouraging 106 Tesco suppliers to adopt ‘Target, Measure, Act’ by reporting their food waste.

The grocer has also established Tesco Exchange as an online marketplace, matching surplus food with demand from suppliers across its supply chain.It has supported over 5,500 charities with unsold food from its stores and distribution centres, and saved over 107m meals with its Colleague Shop since its launch in 2018.