31 Jan 2019
EUR 147 million
Infrastructure, transportation and telecom
|Date of loan:||26 Aug 2014|
|Customer:||S-ryhmän logistiikkakeskukset Oy|
|Amount in EUR:||EUR 148 million|
|NACE sector / loan type:||Supporting and auxiliary transport activities|
|Business area:||Industries and services|
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
Share of financing: 100%
Amount disbursed: EUR 117 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
The loan has been provided to finance a new grocery logistics centre in Sipoo, Finland.
Optimizing the automation at the new logistics centre is expected to generate substantial annual cost savings for S Group by lowering transportation costs and decreasing the logistics expenses. In addition, the building is designed to be energy-efficient and sustainable in many aspects, for instance in its heating process the logistics centre utilises both geothermal and condensing heat.
S-ryhmän logistiikkakeskukset Oy was established in 2009 and it is owned by S Group’s 20 regional cooperatives and SOK. S Group is the largest grocery retailer in Finland, with a market share of approximately 46%.
Competitiveness: As a result of the technical progress in S Group’s logistics operations, the productivity of the company improves considerably. The cost savings derived from the development will add value to the consumer goods markets in Finland. Since S Group is a dominant player in concentrated markets, the distribution of these gains in the economy depends on whether the market environment is sufficiently competitive. A reduction in operational costs in competitive markets would place downward pressure on consumer prices and incentivise S Group’s main competitor to increase its productivity as well.
Environment: The logistics centre aims to be certified in accordance with the BREEAM certificate, which is the world's most widely used environmental assessment to evaluate the sustainability performance of the building. The new logistics centre would be the first industrial building in an NIB member country to receive a BREEAM Excellent rating.
The direct environmental impact of the new grocery logistics centre is related to land issues and use of energy. However, no sensitive or residential areas are located in the vicinity of the site.
Despite the new location only being accessible by road, it is estimated that the need for transportation will decrease due to the project. Therefore, from the environmental perspective, the positive outcome of this project is the potential reduction in transportation and the associated emissions of pollutants.