Shoprite Closes a $205 Million Sustainability-Linked Loans

Shoprite Closes a $205 Million Sustainability-Linked Loans

To finance renewable energy and related projects, Shoprite Group has secured a sustainability-linked loans totaling $205 million. As part of its broader sustainability plan, the corporation claims the expenditures will help Shoprite develop its important environmental programs.

The loans comprise a $176 million loan from Standard Bank, a $47 million loan with sustainability criteria, a $41.7 million green loan from RMB (reportedly a first in the retail sector), and other loans. This decision was made in response to increasing requests for South Africa to urgently modernize its energy sector and make renewable energy a top national priority.

According to a statement, the company will utilize the loans to enhance its investment in “renewable energy and the increase of energy from renewable sources as a percentage of total energy consumption.”

“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,” says Shoprite group sustainability manager Sanjeev Raghubir.

“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. 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.

What the Sustainability-linked Loans Offer

According to Shoprite, these initiatives will allow the company to build upon the significant investments it has previously made.

Raghubir claims that the group’s accomplishments to date have given backers tangible proof of the nature and scope of its sustainability programs and objectives, allowing the shop to obtain funding at a discounted rate.

According to Shoprite, it raised the installed capacity of its solar photovoltaic systems by 82%, decreased water use intensity by 7.5%, and cut carbon emission intensity by 3.3% and power consumption by 150 million kWh through its LED lamp replacement initiative since its beginning.

Shoprite also recycled 46 102 tonnes of cardboard from its stores and distribution centers during that time, prevented 10 241 tonnes of plastic trash from being up in landfills, and gave customers R2.2 million in rebates for continuing to use its Planet bags after they were first introduced.

The current loan will enable the retail company fund it cardboard and plastic recycling, 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.