The impacts, risks and opportunities identified – especially those related to the most material topics for the Group, such as packaging and food waste – are associated with the type of resources used (renewable or non‑renewable), the waste generated, and the possibilities for recovering and valorising that waste. The assessment of these risks and opportunities was based on the application of the LEAP methodology (Locate, Evaluate, Assess and Prepare) across our own operations and throughout the value chain (both upstream and downstream of our operations).
Impacts associated with circular economy
The impacts identified as material relate mainly to negative environmental effects resulting from our own operations and from upstream and downstream activities, as presented in the table below.
Impacts |
|
Stages of the Value Chain |
|---|---|---|
Depletion of natural resources (particularly non‑renewable), resulting from the production of products and packaging |
|
Upstream of own operations |
Food waste |
|
Own operations and value chain |
Pollution caused by improper waste disposal |
|
Downstream of own operations |
Risks and opportunities associated with circular economy
We consider risks and opportunities to be significant when their potential impact exceeds 5% of sales. In such cases, identification, analysis and management are carried out at corporate level. Situations below this threshold are also identified and assessed at corporate level, with their management ensured by our Banners1. The identification of risks and opportunities includes:
monitoring country‑specific regulation (e.g., extended producer responsibility);
assessing the recyclability of Private Brand packaging in line with ecodesign methodologies and guidelines (e.g., Golden Design Rules), and evaluating the quantity of food products wasted according to the practices defined by the Food Loss and Waste Protocol;
analysing market trends, particularly customer preferences (e.g., convenience in purchasing decisions or choosing between single‑use and reusable packaging).
The risks associated with the circular economy were assessed and selected according to their relevance to our activities and may be either transition risks (political and regulatory, market, technological and reputational) or physical risks (such as the risk of raw material scarcity).
These topics are explored in greater depth in “Ecodesign of packaging” and “Fighting food waste”. In the case of plant‑based materials such as paper and wood, the measures we adopt are detailed in “Fighting deforestation.”
Risks |
|
Stages of the value chain |
|---|---|---|
Losses associated with food waste, due to the value lost along the value chain |
|
Own operations and value chain |
Increase in costs associated with waste management, scarcity of material resources (virgin and recycled), and monitoring and reporting requirements |
|
Upstream and own operations |
Greater investment in processes, products and services – particularly those related to packaging recyclability – whose implementation may depend on new components (e.g., alternatives to flexible plastics), adjustments to packaging technologies, and advances in the waste sector (e.g., sorting and recycling systems) |
|
Own operations and value chain |
Impacts on product competitiveness due to the cost disparity between recycled and virgin materials |
|
Upstream and own operations |
Reputational damage resulting from failure to meet legally imposed targets and voluntary commitments |
|
Own operations and value chain |
Opportunities |
|
Stages of the value chain |
|---|---|---|
Increased revenue through the valorisation of material streams and the reduction of food waste |
|
Own operations |
Cost reductions through resource‑use efficiency (such as packaging optimisation and waste management) and through early compliance with legislated recyclability targets |
|
Own operations and value chain |
Improved circular economy practices in supply chains (e.g., sharing systems for transport packaging) |
|
Own operations and value chain |
Access to more favourable financing conditions by meeting circular economy targets |
|
Own operations |
Reputational gains resulting from clear and transparent communication of our circular economy initiatives and from meeting voluntary targets and commitments |
|
Own operations |
Circular economy Initiatives
We have developed several initiatives that promote the circular economy across our value chains, taking into account the key impacts, risks and opportunities.
Initiatives |
|
Description |
|---|---|---|
Ecodesign |
|
We implement ecodesign best practices in packaging for perishables and in Private Brand products and packaging, with the aim of improving their environmental profile as well as operational efficiency. These improvements are communicated on packaging, in stores and through other channels. |
Promotion of reusable solutions |
|
We provide reusable solutions to our customers (such as options for refilling packaging at home or water bottles that can be refilled in store) and transport packaging that our suppliers can reuse. |
Tackling food waste |
|
We give new life to food by using ungraded agricultural products, industry by‑products and surpluses from our operations. We also sell products nearing their expiry date at a discount and donate food to charitable organisations. |
Recovery of waste from our own operations |
|
We invest in increasing the amount of waste that can be sent for recovery. |
Customer waste collection and recovery |
|
We develop solutions (such as recycling points and other collection systems) that enable the recovery of waste brought back by customers. |
Voluntary business initiatives |
|
We take part in various organisations that promote the circular economy, such as the New Plastics Economy Global Commitment, the Plastics Pact (Poland, Portugal and Colombia) and the Consumer Goods Forum’s Plastic Waste Coalition of Action. |
We regularly monitor the material consumption used to produce our packaging, the waste we generate, and the volume of food waste, with the aim of continuously improving our circular economy practices. All information regarding our performance and the initiatives implemented across our own operations and our value chain is presented in detail under ‘Materials used and resource outflows’ and ‘Actions to promote a circular economy.’ We have also established a set of circular economy commitments for the 2024-2026 period, which can be consulted in ‘Environment’.
1 These mechanisms are detailed in points 52, 53., and 54. of Chapter ‘Corporate Governance.’