​​​Environment

Х5 Retail Group is implementing cutting-edge sustainability practices, including those focused on reducing its environmental impact and promoting responsible consumption. 

As a leader in the Russian retail market, X5 is conscious of the magnitude of its environmental footprint and takes measures to ensure full compliance with Russian legislative requirements and the highest international environmental protection standards.

Focus areas: 

  • improving business processes and developing new technological solutions; 
  • drawing consumers' attention to eco-friendly goods and promoting responsible consumption; 
  • reducing the use of single-use packaging and promoting the use of reusable packaging;
  • collaborating with R&D centres and manufactures with a view to developing eco-friendly packaging;
  • introducing new technologies and investing in energy saving;
  • applying new techniques and technologies for waste collection and disposal; 
  • minimising volumes of unused and unsorted waste, supporting and promoting recycling (processing) technologies along with circular economy principles; 
  • mitigating the environmental impact of logistics operations;
  • engaging in the improvement of regulations seeking to reduce environmental damage;
  • maintaining a commitment to the Memorandum on Sustainable Development and improvement of environmental practices in retail under the auspices of the WWF.

Energy consumption and efficiency

We are working to implement new energy efficient technologies to reduce energy consumption.

The Company operates automatic monitoring systems to record the volume and quality of electric energy consumed, as well as a monitoring and control centre for these systems.

Electricity consumption accounts for about 56% of our total utility costs, which makes it our priority. In 2018, X5 put in place a number of initiatives to optimise the use of electricity:

  • setting up an automatic data collection system across Pyaterochka stores to reduce electricity consumption, analyse the data flow and calculate optimal tariffs;
  • launching the Improving the Energy Efficiency of Automated Electricity Fiscal Metering project across Perekrestok stores to enable checking of electricity meters at the point of metering and to enter into direct power supply contracts based on multiple tariffs;
  • using remotely controlled refrigeration systems in all Pyaterochka stores, which secured savings of some RUB 70 m in 2018; 
  • Smart store designing and testing at a Pyaterochka-based lab store with a view to introducing remote automatic monitoring and control of all electrical systems and reducing the current power consumption by 7%;
  • installing LED lighting in all Perekrestok and Pyaterochka stores along with 24 Karusel hypermarkets.​

Transport

Transport and logistics operations have a significant impact on the environment. We use a variety of approaches to mitigate this impact by investing in modern trucks, streamlining travel routes and recycling tires, tubes, batteries, ferrous and non-ferrous metals, motor oils and other materials in line with the Russian legislation.

Returnable containers

The Company is committed to lean manufacturing, which enables us to minimise waste associated with the delivery of products from producers and DC-to-store transportation.

Recyclable packaging

  • X5 recycles 100% of the plastic, cardboard, paper and other non-food waste generated by our stores. In 2018, we sent more than 572 million kg of waste for processing, including 307 million kg of cardboard, polyethylene and plastic, as well as over 22 million pallets and plastic boxes used for transporting goods. Used shopping trolleys and waste vegetable oil are also sent for recycling.
  • All reusable Perekrestok containers, pallets and plastic boxes are returned to DCs.
  • Special containers for separate collection of used batteries and paper are available at our retail chains' headquarters.​

Retail packaging

  • We do not give out fr​ee plastic bags at checkout conters in our stores, which brings down the consumption of disposable packaging. In 2018, single-use plastic bags were bought only for every forth purchase. 
  • Reusable bags are offered to customers as an alternative to disposable bags. Last year, Pyaterochka, Perekrestok and Karusel sold around 3 million reusable bags.
  • Pyaterochka encourages customers to buy raw cotton eco-bags by crediting doubled bonus points to the Vyruchai-Karta loyalty cards. 
  • In some regional stores, we offer paper bags as an alternative to plastic ones.
  • We constantly review proposals from innovative vendors who compete for the opportunity to produce and supply environmentally friendly packaging for our stores.

Food waste

All food waste generated by our stores is sent to third parties for landfilling or recycling. The Company is looking for opportunities and piloting technological solutions to transfer food waste for further processing.

  • Our Karusel hypermarkets feature bio compactors for treating and compressing organic waste. Sealed containers are watertight, which helps to minimise food waste decomposition, maintain cleanliness and comply with OHS standards.
  • Karusel hypermarkets and Perekrestok supermarkets are also equipped with special refrigerators for temporary storage of food and biological waste, which enabled us to fine-tune the process of collecting, storing and disposing these types of waste in line with the veterinary standards​ and rules.​
  • Memorandum on sustainable development and improvement of environmental practices in retail

  • Karusel hypermarket chain, together with WWF Russia, launched a campaign for its customers, aimed at funding the implementation of the project "Let’s create and preserve the national forest heritage of Russia together". This project will cover a national forest heritage area of more than 100,000 hectares located in the North-Western part of the Russian Federation, and will help to preserve the most valuable part of the forest. This is the first joint project of WWF Russia with food retail representatives.​ ​​
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