Tesco and WWF have announced they are to collaborate on a long-running sustainable food effort, pledging to establish a measure to halve the environmental impact of the average UK shopping basket within 12 months.

The four-year partnership between the UK’s largest retailer and one of the world’s leading environmental organisations is believed to be the first of its kind. They hope its scale will help drive the industry to eliminate food waste and packaging waste and encourage customers to eat more sustainably.

However, Tesco has ruled out removing palm oil from its own-brand foods, despite the publicity attracted by its rival Iceland for its pledge. Habitat loss in countries such as Malaysia – a major global producer of palm oil – has contributed to the orangutan now being classified as critically endangered.

A cheap and mass-produced ingredient, palm oil is currently found in more than half of all supermarket products, from bread and biscuits to soap and detergent. But the complex supply chain means only a small percentage of the palm oil used to make these products comes from an officially approved sustainable source. Tesco has pledged to ensure that its palm oil comes from approved sources.

Details of the new partnership come as new research by the two organisations reveals that demand for sustainable food is high, with nearly 80% of shoppers wanting supermarkets to offer more food that is sourced in a responsible, sustainable way. However, 59% were confused about which foods counted as sustainable and 75% thought that cost was a barrier.

The link-up has been described as a collaborative venture rather than WWF scrutinising Tesco’s supply chains or allowing its logo to be used on Tesco products.

“Demand for food poses one of the biggest dangers to our planet,” said Tanya Steele, WWF’s UK chief executive. “It’s the leading cause of deforestation, destroying countless habitats and threatening wildlife to the point of extinction. We have the power to not only stop, but to reverse the damage, if we act now. That is why we are delighted to be partnering with Tesco, to help create a food system that doesn’t cost the Earth.”