Ecosystems

Our Holistic Contribution to a Healthy Environment

Our Mission:

We are committed to protecting the climate and environment

Commitment to Change

We have set ourselves a lot of goals and are working towards even more environmental and climate protection every day. Why? Because we want to help shape a responsible economy and a sustainable future that is worth living in. With that in mind, we cover 100 percent** of our electricity needs with renewable energy and even produce some of it ourselves.

But energy is not everything. The companies of Schwarz Group are also committed to using fresh water sustainably, protecting bodies of water and oceans, and preserving biodiversity. Our jointly developed sustainability strategy forms the framework for doing so. It includes extensive measures and ambitious objectives for us to achieve.

 

Combating Climate Change is Anchored in Our Strategy

It is not just humans and businesses that have an impact on the climate – in fact, climate change and its consequences are already having an impact on us. One area where we feel these effects is agriculture, with extreme weather conditions significantly impacting harvests in many places. To counter this, the companies of Schwarz Group are actively committed to climate protection. This approach is anchored in our jointly developed climate strategy. Our jointly adopted climate targets are scientifically based and have been validated by the Science Based Targets Initiative (SBTi).

Climate goals of the companies of Schwarz Group

Ambitious and Scientifically Based

One of our shared climate targets is to reduce our operational greenhouse gas emissions (scope 1 and 2) by a total of 55 percent compared with 2019 by 2030.* Lidl and Kaufland want to reduce these emissions by as much as 80 percent by 2030 and have chosen to make their operational emissions climate neutral** (Lidl from 2022, Kaufland by 2025).

We are also planning to gradually increase the proportion of renewable energy we produce ourselves. The rest of our electricity has been 100 percent sourced from renewable energies since the 2022 fiscal year*** and is currently covered by guarantees of origin.****

The companies of Schwarz Group are also making the commitment to oblige suppliers, who are responsible for 78 percent of product-related emissions, to set themselves climate targets by 2026 according to the criteria of the SBTi. Furthermore, we have set ourselves the shared target of reducing our scope 3 emissions, which relate to the use of solid fuels, by 27.5 percent by 2030 compared with 2019 levels.

* Reduction in operational emissions (scope 1 and 2) compared with 2019. The target for scope 1 and 2 also includes biogenic emissions and the removal of biogenic raw materials. | ** Remaining operational greenhouse gas emissions (scope 1 and 2) are offset by certified climate protection projects. | *** Excluding any purchase agreements that the companies of Schwarz Group cannot influence, such as those for individual leased properties with a binding electricity procurement clause. | **** Renewable energy guarantees of origin verify the production of one megawatt-hour of green electricity from renewable sources. They state how, when and where the energy was generated, and can be traded internationally.

The Science Based Target Initiative is an alliance of the renowned environmental and climate protection organizations CDP (formerly Carbon Disclosure Project), UNGC (United Nations Global Compact), WRI (World Resources Institute) and WWF (World Wide Fund For Nature).


The SBTi has set itself the goal of promoting science-based climate goals in companies in order to achieve a low-emission economy in the long term despite the steadily increasing population growth. The aim is to provide a framework that allows companies to reduce their greenhouse gas emissions on a scientific basis. Currently, over 2,000 companies worldwide have already joined the initiative.

 

The SBTi has become the internationally recognized standard for the goal of reducing emissions for companies. When assessing the climate targets, the SBTi takes into account both the sector and the size of the company. This means that companies can align their emissions reductions with a specific goal in order to counteract climate change more effectively and to achieve the global goals of the Paris Agreement.

 

 

To measure the carbon footprint of companies, the greenhouse gases released into the environment are separated into three scopes and analyzed based on the Greenhouse Gas Protocol (GHG Protocol):

  • Scope 1: direct emissions produced by the companies and within their control – for example, for the lighting at the locations of the companies of Schwarz Group.
  • Scope 2: indirect emissions resulting from the provision of energy outside the companies, i.e., by the energy providers.
  • Scope 3: emissions generated by business activities along the upstream and downstream value chain – for instance, during the production of raw materials for the food products sold by the retail division of Schwarz Group.

100 % Green Energy

The companies of Schwarz Group are pursuing a targeted course towards an environmentally friendly future: Since 2022, 100 percent of the energy we use has been renewable! Right now, just under two percent of that is green electricity that we produce ourselves. For our further needs, we use guarantees of origin that prove the electricity comes from renewable sources. We also conclude long-term electricity supply contracts: Through these Power Purchase Agreements, we support the creation of additional renewable energy capacity and demonstrate just how seriously we take our commitment to the environment. Furthermore, we are reducing our emissions and selecting sustainable, efficient technologies and building materials to illustrate our clear dedication to climate protection.

Our Measures in the Area of Climate Protection and Adaptation

Two people on the roof of a branch with solar panels

Energy Transition: Electricity from Our Roofs

Our electricity is green – since the 2022 fiscal year, all 100 percent of it.* As companies of Schwarz Group, we are particularly proud of our own generation of electricity, which includes bioenergy gas plants and photovoltaic systems on numerous roofs on buildings of the companies of Schwarz Group. In the 2022 fiscal year, together we generated so much solar power on an area of more than 2.4 million square meters – equivalent to around 342 soccer pitches** – that we could have supplied more than 85,000 households***. Thus, we can already cover two percent of our electricity requirements with our own electricity generation. We aim to steadily increase this share in the coming years: With this goal in mind, the companies of Schwarz Group will install additional photovoltaic systems on our buildings by the 2025 fiscal year.

 

* Excluding any purchase agreements that the companies of Schwarz Group cannot influence, such as those for individual leased properties with a binding electricity procurement clause.** Base of calculation is a soccer pitch measuring 7,150 square meters. *** Calculating with an average consumption of 3,470 kilowatt-hours per household.

 

offizielles Bild des Kaskasi Windparks von RWE

Long-term Contribution to the Energy Transition

Around 250 million kilowatt-hours of green electricity per year – this is the amount of energy the Lidl and Kaufland retail divisions in Germany are set to obtain from the offshore wind farm “Kaskasi” in the German North Sea over ten years starting from 2028. This collaboration with RWE Supply & Trading is an important element of the joint climate strategy of the companies of Schwarz Group. Such Power Purchase Agreements, where we conclude long-term power supply contracts, help us promote the production of renewable energy and actively contribute to climate protection. The companies of Schwarz Group have already concluded similar long-term power supply contracts in other countries including the Netherlands and Belgium.

Kühlbereich einer Kaufland-Filiale

Efficient and Natural Cooling

What does this mean? As companies of Schwarz Group, we rely on natural refrigerants and energy-efficient technology on the one hand, and on our “heat through cold” concept on the other: When products are cooled, waste heat is produced in refrigeration systems and refrigerators, for instance. We use this waste heat to heat buildings and in doing so, we conserve natural resources such as wood, oil and gas. We want to avoid the generation of greenhouse gases wherever possible. Likewise, we focus on energy-efficient construction when planning new buildings, keeping energy requirements in mind from the very start. To us, every kilowatt-hour saved counts!

Nüsse, Samen und Beeren

Plant-Based and Resource-Saving

Plant-based proteins protect the environment: They can be produced with much fewer resources compared to animal proteins, often require less water or space and their production emits fewer emissions. However, we cultivate four times more plant-based animal feed worldwide than we do plant-based food for direct consumption. Lidl and Kaufland want to change this and are continuously expanding the range of vegan products available in their stores in line with the motto: the more plant-based protein, the more benefits for the environment.

Highlights in the Area of Climate Protection and Adaptation

> 2,4 Mill. m² Photovoltaic Systems

Equivalent to an area of around 342 soccer pitches. We have generated around 300,000 megawatt hours of green electricity (as of FY 2022)

More than 1,000 suppliers

are part of our S3 initiative and will set themselves climate targets by 2026 (as of FY 2022)

Our Commitment to Clear Water

Using water sparingly and protecting bodies of water from contamination: As companies of Schwarz Group, we have anchored measures in our joint sustainability strategy with these goals in mind, because (fresh) water is a precious resource that needs to be protected.

Our Measures in the Area of Utilization and Protection of Water Resources

Bewässerungsanlage

Efficient Use of Water

We are committed to the efficient use of water. In order to reduce the “water footprint” of the companies of Schwarz Group, we are focusing on the sustainable use of freshwater resources and the protection of the oceans. Wherever possible, we want to reuse water, cut consumption and implement wastewater management without adding pollutants. With that in mind, water-saving systems are used in production processes and construction projects at some of our locations. In addition, the Kaufland meat processing plants and partly also Schwarz Produktion have set themselves the target of continuously monitoring and cutting specific water consumption in their plants.

Joining Forces to Preserve Biodiversity

Stable and healthy ecosystems are essential to our very survival. With that in mind, the companies of Schwarz Group have committed to protecting the diversity of living creatures and habitats: through numerous projects at locations, ambitious standards throughout the value chain and a wide range of collaborations. Together, we can achieve more for the protection of biodiversity.

Our Measures in the Area of Biodiversity

Wald im Nebel

Protecting Habitats and Forests

Forests are incredible ecosystems. They provide a habitat for many kinds of species, store carbon and cool our planet. The companies of Schwarz Group are therefore actively committed to protecting them through deforestation-free supply chains. Raw materials that are particularly relevant in this context include soy, palm (kernel) oil, cocoa, beef, cellulose and timber.

For instance, Lidl and Kaufland have signed the “Cerrado Manifesto” initiated by the WWF and other organizations to preserve invaluable habitats in Brazil. The Cerrado is the savanna region with the greatest diversity of species in the world, containing five percent of the global biodiversity, which makes protecting this area all the more important.

View of a field, flowers and trees can be seen at the edge of the field

Making Biodiversity the Standard

Together we achieve more: That is why Lidl and Kaufland are working with different organizations and partners to set standards that contribute to the preservation of biological diversity, such as the BioDiversity add-on, which Lidl and GLOBALG.A.P. released together in the 2022 fiscal year. It prescribes a biodiversity management plan and is now being used by over 250 producers. Another such example is the scientific project to promote sustainable agricultural measures that Kaufland launched in 2020 together with the Leibniz Institute of Vegetable and Ornamental Crops (IGZ) e.V. and Gemüsering Stuttgart GmbH. Lidl and Kaufland are also founding members of Food for Biodiversity e.V.

Eine Biene bestäubt eine Blume

Wildflower Meadows for Biodiversity

More than 170,000 square meters of wildflower meadow at over 30 Lidl logistics centers in Germany are alive with the humming and buzzing of bees and other beneficial insects. They can find space and a rich range of food in these meadows. Lidl is taking even more action for biodiversity: Since 2013, the “Lidl Lebensräume” biodiversity conservation program has provided customers with information and supported suppliers and producers in the creation of flowering meadows in harmony with nature. It has helped create 3.6 million square meters of such space already.

The best conditions for honey and wild bees have been established at the Kaufland meat processing plant in Heilbronn, Germany. The trainees there take care of the meadows and learn how to produce honey with the help of a beekeeper. The honey is then processed in production at the Kaufland meat processing plant. A benefit for nature and humans alike.