Annual Report 2023

Materials used and reduction initiatives

Main materials used

Total consumption (tonnes/million euros in sales)

 

2023

 

2022

 

Δ 2023/2022

Specific value

 

16.99

 

*19.13

 

-11.2%

*

Values corrected due to updated calculations.

Total consumption (tonnes)

 

2023

 

2022

 

Δ 2023/2022

Consumption by business unit

 

520,095

 

*485,490

 

+7.1%

Biedronka

 

395,563

 

*372,455

 

+6.2%

Hebe

 

1,023

 

949

 

+7.8%

Pingo Doce1

 

64,272

 

*62,288

 

+3.2%

Recheio

 

13,292

 

*12,804

 

+3.8%

Ara

 

45,945

 

*36,994

 

+24.2%

Private Brand product packaging (by type)

 

490,953

 

*454,508

 

+8.0%

Paper and cardboard

 

201,520

 

188,976

 

+6.6%

Cardboard packaging for liquid products2

 

15,529

 

16,551

 

-6.2%

Plastic

 

162,837

 

142,872

 

+14.0%

Glass

 

83,685

 

79,083

 

+5.8%

Steel

 

21,470

 

20,711

 

+3.7%

Other materials3

 

5,912

 

6315

 

-6.4%

Service packaging (by type)

 

13,430

 

12,841

 

+4.6%

Plastic

 

8,736

 

8,861

 

-1.4%

Paper and cardboard

 

4,217

 

3,490

 

+20.8%

Other materials3

 

477

 

490

 

-2.7%

Other consumption

 

15,711

 

*18,140

 

-13.4%

Office paper

 

992

 

976

 

+1.6%

Promotional leaflets

 

12,674

 

15,981

 

-20.7%

Publications

 

2,045

 

1,183

 

+72.9%

*

Values corrected due to updated calculations.

1

To measure the environmental indicators reported in this subchapter, the distribution centres, central buildings, and trucks used to distribute goods were accounted for under Pingo Doce.

2

Correspond to composite packaging used to package products such as juices, milks and creams, among others.

3

Includes aluminium, wood and other materials.

Recycled materials (tonnes)

 

2023

 

2022

 

Δ 2023/2022

By business unit1

 

220,310

 

199,366

 

+10.5%

Biedronka

 

180,230

 

163,414

 

+10.3%

Hebe

 

84

 

49

 

+71.4%

Pingo Doce2

 

23,241

 

19,804

 

+17.4%

Recheio

 

4,544

 

4,142

 

+9.7%

Ara

 

12,211

 

11,957

 

+2.1%

By type1

 

 

 

 

 

 

Paper and cardboard

 

178,492

 

164,715

 

+8.4%

Plastic

 

11,545

 

8,678

 

+33.0%

Glass

 

30,273

 

25,973

 

+16.6%

1

Includes private brand product packaging and service packaging.

2

To measure the environmental indicators reported in this subchapter, the distribution centres, central buildings, and trucks used to distribute goods were accounted for under Pingo Doce.

In 2023, total material consumption increased 7.1% in absolute terms, due mainly to the increase in the sale of Private Brand products. However, compared to 2022, material consumption in tonnes per million euros in sales decreased 11.2%.

Also in 2023, service and Private Brand product packaging incorporated 43.7% of recycled materials (1.0 p.p. more than in 2022), particularly paper and cardboard, plastic and glass. Paper and cardboard packaging contains 82% recycled materials. In total, around 220,000 tonnes of recycled materials were used, 10.5% more than in the previous year.

Single-Use Plastics (SUP)

Total consumption (tonnes/million euros in sales)

 

2023

 

2022

 

Δ 2023/2022

Specific value

 

6.47

 

*7.00

 

-7.6%

*

Values corrected due to updated calculations.

Total consumption (tonnes)

 

2023

 

2022

 

Δ 2023/2022

SUP use by business unit

 

198,158

 

*177,636

 

+11.6%

Biedronka

 

136,331

 

*126,572

 

+7.7%

Hebe

 

210

 

*178

 

+18.0%

Pingo Doce

 

26,500

 

*24,918

 

+6.3%

Recheio

 

5,767

 

*5,353

 

+7.7%

Ara

 

29,350

 

*20,615

 

+42.4%

SUP use by category

 

 

 

 

 

 

Private Brand packaging

 

162,837

 

142,872

 

+14.0%

Service packaging

 

8,736

 

8,861

 

-1.4%

Check-out bags

 

10,163

 

9735

 

+4.4%

Pallet wrapping film

 

3,234

 

3,280

 

-1.4%

Rubbish bags

 

13,083

 

12,791

 

+2.3%

Other SUP1

 

105

 

97

 

+8.2%

*

Values corrected due to updated calculations.

1

Includes cutlery and stirrers for drinks, plates and bowls, cups, straws, and cotton buds (SUP includes Private Brand, exclusive brands and own consumption).

Incorporation of recycled plastic in SUP (tonnes)

 

2023

 

2022

 

Δ 2023/2022

By business unit

 

26,940

 

*21,910

 

+23.0%

Biedronka

 

18,612

 

14,704

 

+26.6%

Hebe

 

42

 

*36

 

+16.7%

Pingo Doce

 

5,676

 

5,070

 

+12.0%

Recheio

 

1,626

 

1,444

 

+12.6%

Ara

 

984

 

656

 

+50.0%

By category

 

 

 

 

 

 

Packaging1

 

11,545

 

8,678

 

+33.0%

Check-out bags and wrapping film

 

8,168

 

*7,494

 

+9.0%

Rubbish bags and other SUP2

 

7,227

 

5,739

 

+25.9%

*

Values corrected due to updated calculations.

1

Includes Private Brand packaging and service packaging.

2

Includes cutlery and stirrers for drinks, plates and bowls, cups, straws, and cotton buds (SUP includes Private Brand, exclusive brands and own consumption).

Incorporation of virgin plastic in SUP (tonnes)

 

2023

 

2022

 

Δ 2023/2022

By business unit

 

171,217

 

*155,727

 

+9.9%

Biedronka

 

117,719

 

*111,869

 

+5.2%

Hebe

 

169

 

*141

 

+19.9%

Pingo Doce

 

20,823

 

*19,848

 

+4.9%

Recheio

 

4,140

 

*3,910

 

+5.9%

Ara

 

28,366

 

*19,959

 

+42.1%

By category

 

 

 

 

 

 

Packaging1

 

160,028

 

143,056

 

+11.9%

Check-out bags and wrapping film

 

5,229

 

*5,521

 

-5.3%

Rubbish bags and other SUP2

 

5,961

 

7,150

 

-16.6%

*

Values corrected due to updated calculations.

1

Includes Private Brand packaging and service packaging.

2

Includes cutlery and stirrers for drinks, plates and bowls, cups, straws, and cotton buds (SUP includes Private Brand, exclusive brands and own consumption).

In the specific case of plastic, we have made several voluntary commitments as a result of our pledge to the New Plastics Economy Global Commitment and our participation in the Portuguese Plastics Pact, the Polish Plastics Pact (through Biedronka), the Colombian Plastics Pact (through Ara), and in The Consumer Goods Forum’s Plastic Waste Coalition of Action. These commitments were defined with the aim of reducing the input and output of resources used, ensuring the promotion of circularity, by following a waste management hierarchy: reduction, reuse and recycling.

Accordingly, by 2025 we undertake to:

  • ensure that all Private Brand plastic packaging is reusable or recyclable;
  • incorporate at least 25% of recycled content in Private Brand plastic packaging;
  • reduce specific plastic consumption by 10%, compared to 2018, measured in tonnes of plastic packaging per million euros of turnover;
  • reduce virgin plastic used in Private Brand packaging by 15%, compared to 2018.

Regarding single-use plastics (SUP), consumption increased 11.6% compared to 2022. In 2023, plastic made up 35.7% of the materials used in the four packaging categories (Private Brand, service, check-out bags and pallet wrapping film1). Of the total plastic used, 19,713 tonnes were recycled plastic, representing 10.7% of the SUP in these categories, thus enabled us to achieve another target: by 2023, increase to 10% the recycled plastic content of all the plastic packaging we are responsible for.

Customer's hand holding a packaged Vital Fresh greek salad in a store (photo)

In terms of the use of virgin plastic, consumption increased 9.9% compared to 2022. This figure is now 4.0% higher than in the reference year (2018). In recent years, market conditions for collecting packaging waste and the amount of recycled plastic available for reincorporation into new packaging, especially those used for food, have changed little in the countries where our Companies are located.

For this reason, it will be difficult to achieve the related commitments by 2025, that is, ensuring the incorporation of at least 25% recycled plastic in plastic packaging and reducing the use of virgin plastic by 15%. We achieved a 33% reduction in plastic consumption (measured in tonnes per million euros in sales) compared to 2018, in line with our commitment for 2021-2023 (5% by 2023).

By applying the Ellen MacArthur Foundation’s Recyclability Assessment Tool methodology, we have concluded that 42% of the plastic packaging of our Private Brand products is recyclable (0.2 p.p. more than in 2022). This figure considers the different polymers and plastic packaging formats, and the existence and effectiveness of sorting and recycling systems in the countries where we have operations.

Although our Companies have successfully completed numerous mono-material packaging projects, there are still no sorting solutions for some flows (e.g., multi-layer polypropylene flexible plastics and hard polystyrene packages), even where a recycling industry has been set up. Because of this, some plastic packaging formats are still classified as “non-recyclable” according to the aforementioned methodology, even where sorting and downcycling2 circuits exist locally, as is the case in Poland and in Portugal. To increase the recyclability of the plastic packaging of our Private Brands, we have been eliminating problematic components (e.g., PVC and EPS polymers) that hinder recycling or reduce the quality and value of the recycled material. In line with our commitment, these components were eliminated from 91.8% of our packaging in 2023, 1.2 p.p. more than in 2022.

Fighting plastic pollution – highlights from 2023
  • Biedronka launched a project to recycle plastic film waste from its stores and distribution centres, transforming it into check-out bags. Made from a minimum 80% recycled plastic, the carbon footprint of these check-out bags is 56% smaller than that of an equivalent bag made from virgin plastic. Biedronka was the first retailer in Poland to use its own plastic film waste to produce its check-out bags. An estimated 116 million bags are expected to be produced under this project per year.
  • Pingo Doce and Recheio have eliminated plastic fibres from the composition of the fabric of 8 references of household cleaning wipes and baby wipes and replaced them with biodegradable fibres (e.g., viscose and cellulose), preventing over 54 million wipes containing plastic from being placed on the market each year.
  • At Ara, the PET plastic bottle and cap collection system, launched at the end of 2021 in five distribution centres in Colombia, was extended to all distribution centres and Ara’s head office. Around nine tonnes have been collected since the project began.

See also the feature box “Packaging Ecodesign – highlights from 2023”.

1 Excluding rubbish bags and other SUP that are not packages.

2 Recycling process whereby the resulting materials are of an inferior quality to the original ones, so that the same products with the same quality cannot be manufactured, only those that require lower quality material.

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