The Shoprite group has finalised R3.5-billion in sustainability-linked loan agreements, with the aim to expand its key environmental programmes as part of a wider sustainability strategy.
The finance agreements include a R2-billion loan from Standard Bank, as well as an R800-million sustainability-linked loan and a R700-million green loan from Rand Merchant Bank for investment in environmental projects.
A further sustainability-linked loan is in the pipeline, says Shoprite.
The R3.5-billion in secured loans will be used to expand the group’s investment in renewable energy and increase the energy generated from renewable sources as a percentage of total electricity consumption; the recycling of cardboard and plastic; and the development and use of sustainable packaging, including reusable, recyclable and compostable packaging containing recycled material.
The loans will also fund a programme to increase energy efficiency, including expanded light-emitting diode (LED) use, and a refrigeration monitoring system aimed at reducing energy consumption and waste.
Shoprite says these investments will enable it to expand on the investments already made.
In the previous financial year, Shoprite increased the installed capacity of its solar photovoltaic systems by 82%; reduced electricity consumption by 150-million kilowatt-hours through its LED lamp replacement project (since inception); recycled 46 102 t of cardboard from stores and distribution centres; diverted 10 241 t of plastic waste from landfills; and paid R2.2-million in rebates to customers for reusing their planet bags (since inception).
“The loans enable us to continue to reduce our environmental footprint by using more renewable energy and sustainable packaging and recycling more waste,” says Shoprite group sustainability manager Sanjeev Raghubir.
“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 adds.