A R3.5 billion ($205 million) sustainability-linked loan has been finalised by Shoprite Group to invest in the expansion of its key environmental programmes as part of its wider sustainability strategy.
The loans, broken down into R2 billion ($176 million), a R800 million ($47 million) sustainability-linked loan and a R700 million ($41.7 million) green loan, were received from Standard Bank and RMB respectively, for investment in environmental projects.
Shoprite will leverage the loan for its expansion by investing in:
- Renewable energy and the increase of energy from renewable resources as a percentage of total electricity consumption
- Recycling cardboard and plastic
- Sustainable packaging, including reusable, recyclable and compostable packaging, containing recycled material and
- Energy efficiency, including LED lighting, and a monitoring system for refrigeration to reduce energy consumption and waste
The Group will also utilize the loan to expand its existing sustainability investment. In the previous financial year, Shoprite affirms to have:
- Reduced carbon emission intensity by 3.3% and water use intensity by 7.5%
- Increased the installed capacity of its solar photovoltaic (PV) systems by 82%
- Reduced electricity consumption by 150 million kWh through its LED lamp replacement project since inception
- Recycled 46 102tons of cardboard from stores and distribution centres and diverted 10,241 tons of plastic waste from landfills and
- Paid R2.2 million in rebates to customers for reusing their plastic bags since inception
Sanjeev Raghubir, Shoprite Group’s Sustainability Manager said: “The loans enable us to continue on the road to reduce our environmental footprint by using more renewable energy and sustainable packaging and recycling more waste. These environmental programmes are key in our fight against climate change, and we are able to increase the pace and intensity of our actions with these loans.”
He further noted that the Group’s record to date has provided funders with demonstrable evidence of the nature and scale of its sustainability projects as well as ambitions, and enabled the retailer to access a preferential cost of funding.
“The loans allow us to continue to make a sustainable, positive environmental impact and improve our operational efficiencies which in turn result in additional ongoing savings that we can pass on to our customers.”
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