Sanjeev Raghubir unpacks Shoprite Group’s sustainability journey

South African retail giant Shoprite Group is on a sustainability journey like no other, with a commitment to uplift lives, create economic opportunities, and protect the planet. Sanjeev Raghubir, Sustainability Manager at Shoprite Group, recently joined CNBC Africa to shed light on the company's groundbreaking initiatives. At the core of Shoprite's purpose is a commitment to provide affordable goods and services while maintaining economic opportunities and environmental sustainability. Recognizing the material impact of climate change on their supply chain and communities, Shoprite has developed a comprehensive strategy to address these challenges. The recent climate-related events, such as floods and cyclones, highlighted the urgency for action. Shoprite Group has taken a unique stance on the profit versus planet debate by demonstrating that it is possible to achieve both. By creating economic opportunities for suppliers, small-scale producers, employees, and communities, while simultaneously reducing environmental impact through renewable energy, energy-efficient practices, and waste reduction, Shoprite is setting a new benchmark for sustainability in the retail industry. The company has made a bold commitment to achieving net zero emissions by 2050, with verified targets by the Science-Based Targets initiative. This commitment extends to their financial endeavors, as evidenced by their 3.5 billion rands worth of sustainability-linked loans. Renewable energy plays a vital role in Shoprite's sustainability journey, with a focus on utilizing solar power. Through partnerships with landlords and companies, Shoprite has increased the generation of renewable electricity from rooftops in its stores and distribution centers. With a target to generate 5% of electricity from renewables this financial year, Shoprite is leading the way in sustainable energy practices. The company's commitment to sustainability has not gone unnoticed by financial institutions, as they have structured their loans around achieving sustainability targets, incentivizing progress with better interest rates. One of the challenges Shoprite faces is balancing sustainability with affordability for customers. While maintaining their commitment to offering affordable goods and services, they are dedicated to sourcing products responsibly and supporting the entire value chain, including farmers. By integrating sustainability into their operations and adopting a circular economy approach, Shoprite ensures that waste, particularly plastics and cardboard, is recycled within a closed-loop system. This approach not only reduces environmental impact but also presents cost-saving opportunities that can be passed on to customers. Shoprite's innovative initiatives extend to repurposing trolley wipes into useful products like playground equipment, showcasing their commitment to sustainable practices at every level. As Shoprite Group continues on its sustainability journey, the company remains focused on embedding sustainability into its operations efficiently and cost-effectively. By integrating sustainable practices into their daily operations, Shoprite not only protects the planet but also creates economic opportunities and affordable products for its customers. The revolutionary approach taken by Shoprite sets a new standard for the retail industry, demonstrating that profitability and sustainability can go hand in hand.