Tesco has set out a ten-point plan in an effort to improve local communities, the environment and the nation's health.

Speaking just 24 hours after the Office of Fair Trading confirmed that it would refer the UK grocery sector to the Competition Commission for investigation, Sir Terry Leahy, chief executive of Tesco, said that it was important that the supermarket group was viewed as a “good neighbour”.

As part of the plan, Sir Terry said that Tesco planned to halve the energy use in Tesco buildings by 2010, double the rubbish customers bring to stores for recycling by 2010, make all Tesco carrier bags biodegradable by September and introduce nutritional labelling on all own-label products by 2010.

Sir Terry said: “The battle to win customers in the 21st century will increasingly be fought not just on value, choice and convenience, but on being good neighbours, being active in communities, seizing the environmental challenges and on behaving responsibly, fairly and honestly.”

He added: “Customers reflect UK society as a whole. What customers say reflects what the UK is thinking.”