To finance significant investments in renewable energy and other environmental projects, the retail business has obtained loans from significant banks totaling R3.5 billion.
The largest retailer in South Africa, Shoprite, announced on Monday that it has finalized R3.5 billion in “sustainability-linked” loans from major banks to finance significant investments in environmental projects and renewable energy.
For investment in environmental projects, the loans include an R2 billion facility from Standard Bank, a R800 million sustainability-linked credit, and a R700 million “green loan” from Rand Merchant Bank.“A further sustainability-linked loan is in the pipeline,” the JSE-listed retailer said in a statement.
The loans will be used to expand Shoprite’s investment in:
- Renewable energy and the increase of energy from renewable sources as a percentage of total electricity consumption;
- Recycling cardboard and plastic
- Sustainable packaging, including reusable, recyclable, and compostable packaging, containing recycled material
- Energy efficiency, including LED lighting, and a monitoring system for refrigeration to reduce energy consumption and waste.
“Shoprite Group increased the installed capacity of its solar PV systems by 82% in the previous financial year,” it said. “These investments will enable the group to expand on the substantial investments it has already made.”
“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,” said Shoprite’s group sustainability manager, Sanjeev Raghubir.
These investments will enable the Group to expand on the substantial investments it has already made in the previous financial year.
- 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 its inception
- Recycled 46 102tons of cardboard from stores and distribution centres, and diverted 10 241 tons of plastic waste from landfills
- Paid R2.2 million in rebates to customers for reusing their Planet bags since inception.
According to Raghubir, the Group’s accomplishments to date have given funders tangible proof of the type and scope of its sustainability projects and objectives, and have also allowed the retailer to access advantageous financing rates.
“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.”
Shoprite says it has increased the installed capacity of its solar photovoltaic systems by 82% in the previous fiscal year and claims to have decreased electricity consumption by 150 million kWh through its LED lamp replacement project since its inception. It also claims to have decreased the intensity of its carbon emission by 3.3% and its water use by 7.5%.
Shoprite also recycled 46 102 tonnes of cardboard from its stores and distribution centers during this time, diverted 10 241 tonnes of plastic trash from landfills, and provided R2.2 million in rebates to consumers for continuing to use their Planet bags.