Supplementary memorandum submitted by
Tesco
NATURE'S
CHOICE
Auditing Criteria
Farms must have a plan for managing the environment,
detailing action to protect and encourage wildlife diversity,
including planting hedgerows and creating wildlife corridors.
Pollution control and energy use are also important parts of the
scheme, with specific controls on discharges to local watercourses,
and energy use reviews by independent third parties. The Nature's
Choice scheme is governed by a committee made up of suppliers,
an independent academic, an auditor and Tesco managers.
Nature's Choice environmental standards are
as follows:
— rational use of plant protection
products, fertilisers and manures;
— protection of human health;
— use of energy, water and other natural
resources;
— recycling and re-use of material;
and
— wildlife and landscape conservation
and enhancement.
The compliance levels for our audits are as
follows:
NATURE'S
CHOICE GOLD
LEVEL
— 100% Compliance with the Critical
Control Points on the day of assessment.
— 100% Compliance with the Obligatory
Control Points within the 28 calendar days time limit for any
outstanding Corrective Actions.
— 95% to 100% Compliance of the Standard
Control points on the day of the assessment.
NATURE'S
CHOICE SILVER
LEVEL
— 100% compliance with the critical
control points within the seven calendar days corrective action
time limit.
— 90%+ compliance with the obligatory
control points within the 28 calendar days time limit for any
outstanding corrective actions.
— 75% to 94% compliance of the standard
control points on the day of the assessment.
NATURE'S
CHOICE BRONZE
LEVEL
— 100% compliance with the critical
control points within the seven calendar day corrective action
time limit.
— 75%+ compliance with the obligatory
control points within the 28 calendar day time limit for any outstanding
corrective actions.
— 50% to 74% compliance of the standard
control points on the day of the assessment.
CONDUCTING AUDITS
The initial 3,400 audits of suppliers were carried
out over a three year period between April 2004 and April 2007
whilst we rolled the standard out worldwide for supply to the
UK. This number of audits we now repeat on an annual basis, with
the exception of those suppliers who received gold level rating
in the previous year. Being a risk-based approach, those suppliers
achieving a gold level rating are audited only every two years.
Meeting the required standard
All of our suppliers have to meet the minimum
standard during our audit. There is a 5% tolerance in the first
year in order to enable us to take on new suppliers but these
growers must be up to standard within one year of supplying us.
Upon auditing producers receive a standard grading
of gold, silver or bronze, or for those failing to meet the minimal
standard, "audited". Suppliers failing to meet this
minimal standard are referred to our Technical Advisory Committee
and will not be sourced from until they can meet at least bronze
levels of compliance. In the small number of cases where this
happens, we look to work with smaller suppliers to help them reach
minimum standards.
This system is one of the key features that
enable Nature's Choice to be able to focus on achieving continuous
improvement.
January 2007
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