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Many organisations face impending legislation in the area of waste disposal. In 1995 Government announced its intention to reduce drastically the amount of waste going to land-fill in the future. This prompted Tesco to re-evaluate their policies on packaging material and disposal. The case outlines in detail Tesco''s development of returnable transit packaging within a closed loop environment and the building of free standing Recycling Service Units close to composite distribution centres. Tesco decided to go beyond European guidelines and UK legislative requirements and provide for the recycling of virtually all outer packaging used on the company''s products. Their radical answer was to build, in partnership with Salvesen, nine recycling centres which became operational in just 24 months. The company had to go back to basics regarding the nesting factors of their returnable plastic crates and overcome many problems in a short timescale. Although bringing major cost benefits, the scheme also gives a positive environmental image to the company, who now undertake to eliminate or recycle all outer case waste material. A video ''Must It Cost The Earth?'' (397-014-3) is available to accompany the case.