In 2023, Jerónimo Martins Polska (Biedronka) took out a Green Loan with the European Investment Bank (EIB) to finance the energy conversion of the entire Biedronka store network, increasing its energy efficiency and reducing carbon emissions and air pollution. The Company began using this facility, totalling 1.5 billion złoty (around 348 million euros) in 2024. In 2023 and 2024, Biedronka completed the refurbishment of more than 500 stores to improve their energy efficiency by implementing closed-loop cooling systems running on natural gases, thermal insulation of the buildings, and a building management system, in line with the European Performance Buildings Directive (EPBD).
In 2024, Jerónimo Martins Colombia (Ara) took out a Green Loan with the International Finance Corporation (IFC) for 120 million dollars (around 115 million euros) to finance the construction of two distribution centres with EDGE-advanced certification. The two distribution centres, which were still under construction in 2024, will ensure an energy savings of 25% and water savings of 60%. An estimated 40% reduction of GHG emissions is expected, compared to the benchmark. The alignment of the two buildings with the EDGE methodology includes the construction phase and, later, the operational phase of the buildings.
Under the Framework, a facility for issuing guarantees contracted by Jerónimo Martins, SGPS, S.A. was reclassified sustainability-linked. This facility, totalling around 350 million euros, will offer more favourable financing conditions indexed to the achievement of two indicators chosen by the financial institution from among the five provided for in the Framework.
Also in 2024, some of the supply chain financing facility, commonly referred to as “confirming” facilities, were converted and reclassified as “Confirming ESG”. With these facilities, suppliers receive early payment from the bank of invoices issued to Jerónimo Martins Group Companies. The cost borne by suppliers to receive early payment of invoices will depend on their ESG rating, resulting from an assessment carried out by Ecovadis, or on the outcome of the ESG audits carried out by the Group of the supplier concerned. In other words, the cost to the supplier will be lower depending on how well it scores.
We closed 2024 with three categories of instruments in progress: green loans, supply chain finance agreements, and credit facilities for issuing guarantees. The nearly 1,115 million euros raised represent around 25% of the Group’s total financial instruments. Our goal is to progressively increase the financial instruments under our Sustainable Finance Framework.