Annual Report 2023

Reduction of environmental impacts from logistics processes

To improve the environmental performance of our logistics processes, we continued efforts to optimise distribution routes and increased investment in more efficient goods transport vehicles.

Backhauling operations1

Thousands of KM avoided

Backhauling operations: Thousands of km avoided (bar chart)

Emissions avoided (t CO2e)

Backhauling operations: Emissions avoided  (bar chart)

In 2023, backhauling operations shaved off 31.1 million kilometres, 32% more than in 2022, with the respective reduction in emissions (28,400 tonnes of carbon dioxide equivalent). In Colombia, backhauling is still not relevant due to the distance between our suppliers and our distribution centres on the return routes.

The fronthauling project2 shaved off 145,331 kilometres (4.7% less than in 2022) and avoided the emission of 129 tonnes of carbon dioxide equivalent at Pingo Doce and Recheio.

A truck by night next to a distribution center (photo)

At Ara, the project to transport non-palletised goods to optimise transport loads between our suppliers’ facilities and our distribution centres shaved off 613,000 kilometres (35% less than in 2022) and avoided the emission of 1,003 tonnes of carbon dioxide equivalent. The by-truck project (trailers for the transportation of goods between distribution centres and the farthest stores) shaved off 2 million kilometres, 31% less than in 2022, and avoided the emission of 1,632 tonnes of carbon dioxide equivalent.

Breakdown of goods transport vehicles according to the Euro standards

Breakdown of goods transport vehicles according to the Euro standards (bar chart)

As regards goods transport vehicles, over 90% of trucks are Euro V or VI. In 2023, there were four fewer Euro VI trucks and 27 fewer Euro IV and Euro V trucks than in 2022. Colombia increased its fleet of Euro V and Euro IV trucks.

In 2023, carbon emissions associated with transporting goods to stores per thousand pallets decreased 1.0% compared to 2020. Our goal was to reduce carbon dioxide equivalent emissions by 5% per thousand pallets transported by 2023 compared to 2020, but with the expansion of Ara’s business this indicator fell short of the forecast. Among the companies with more stabilised logistics processes, the reduction in emissions represented 2.3% at Pingo Doce, 6.5% at Biedronka and 7.8% at Hebe.

Decarbonising logistics

Pingo Doce is the first company in Portugal and the fourth in Europe to earn four stars in the Lean & Green initiative, following a 55% reduction in carbon dioxide equivalent emissions (t CO2e/pallet) in its logistics operations in mainland Portugal, compared to 2018.

Biedronka’s performance had already been recognised with the award of one star in 2022, as a result of a 20% reduction in emissions from logistics activities in eight distribution centres between 2018 and 2020.

Lean & Green is a European initiative that aims to achieve carbon neutrality in logistics activities by 2050.

1 After delivering products to our stores, the return route includes stopping by the facilities of the Group’s suppliers to pick up goods and take them to the distribution centre.

2 After delivering products to our distribution centres, our suppliers’ return route to their facilities includes stopping by the Group’s stores to deliver goods. This project is only implemented in Portugal.

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