Sweden. Lidl Sverige KB
|Date of agreement:||13 Dec 2021|
|Customer:||Lidl Sverige KB|
|Amount in SEK:||SEK 525 million|
|Amount in EUR:||EUR 51 million|
|NACE sector / loan type:||Retail trade, except of motor vehicles and motorcycles|
The sustainability-linked loan has been agreed to support Lidl Sverige’s efforts in reducing food waste as well as greenhouse gas emissions from cooling equipment and transportation.
Lidl Sverige is a subsidiary of the Germany-based Schwarz Group, which is Europe’s largest food retailer by turnover. The Schwarz Group is committed to limiting global warming to 1.5°C with Science Based Targets (SBTi). Lidl Sverige is a sustainability frontrunner in the Group and has set a wide range of long-term environmental and social targets.
Lidl Sverige currently has 203 stores and over 5 000employees, with a 5.4% share of the Swedish grocery market.
NIB and Lidl Sverige have agreed three key performance indicators (KPIs) with targets to be achieved by the end of February 2026.
1) Reduction of hydrofluorocarbons (HFCs) in cooling equipment: The long-term target is to reduce the global warming potential (in CO2 equivalents) of all cooling agents used by 65% in all Lidl Sverige stores, warehouses and the company headquarters.
2) Fossil-free transport: This measurement includes the share of renewable fuels used in Lidl Sverige’s national goods distribution from warehouses to stores as well as the share of electric cars (fully electric and hybrid) in the company’s fleet. The long-term target is that all goods distribution be carried out with fossil-free fuels and that all company cars be electric.
3) Reduction of food waste in stores and warehouses: This measurement concerns the percent of food waste in relation to sold food by weight. The long-term target is to reduce relative food waste to a level of 0.81%, meaning a decrease of over 40%.
The KPI’s will be followed up annually and the agreed targets will be tested on selected test dates. The loan margin can be decreased if targets are met and increased if targets are not met.
Fulfilment of NIB's mandate
Lidl Sverige’s targets will contribute to the environmental objectives of resource efficiency and climate change mitigation. The focus is on actions that Lidl Sweden can take to improve their sustainability performance further and at the same time contribute to the group-level SBTi commitment.