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Advancing the circular economy

X5 Group

X5 Group is a leading Russian food retailer. The Company operates proximity stores under the Pyaterochka brand, Perekrestok supermarkets and Chizhik hard discounters. X5 provides an omnichannel experience to its customers, integrating retail stores and e-commerce through its businesses Vprok.ru, 5Post and Mnogo Lososya. When it comes to sustainability, the Company is committed to minimising the amount of waste generated from its operations and to developing charitable projects, among other things.

Project description

X5 is developing several programmes to minimise waste generation by recycling, putting waste to beneficial use and optimising sales. A set of measures is making it possible to develop a circular economy.

Project detail

region
Country, region and city of project implementation

Russia

industry
Industry

Retail

esg
Component (E,S,G)

E, S

deadline
Implementation deadlines

From 2019 to the present

budget
Project budget

-

premises
Project background

Every year, the retail sector generates hundreds of thousands of tonnes of waste that could be reused rather than sent to landfills. A number of initiatives are helping to “rescue” a larger portion of recyclables from the landfill.

targets
Project goals and objectives

To recycle up to 95% of the materials generated in retail chain operations (cardboard, plastic, plastic wrap, etc.)

To recycle up to 25% of suitable food products before their expiry date

audience
Target audience of the project

Customers, SMEs, farms, the state

events
Activities within the project

1. X5 stores and distribution centres collect packaging materials that are handed over to contractors for recycling.

2. For over four years, X5 has been giving food products to farmers for processing into animal feed, thus reducing the production of food waste. These products are usually vegetables, fruit and dry goods that are no longer in a saleable condition or damaged; they are suitable for consumption but not for sale to the public.

3. Since October 2021, X5 Import (the division of X5 Group responsible for direct imports) has partnered with a company called Plodorodie, which is developing vermicomposting technology in Russia. The Company sends waste generated from fruit and vegetables that are no longer in a saleable condition, based on X5 quality standards, to Plodorodie for processing.

4. Markdown: items that are near their expiry date are discounted in order to encourage sales.

5. X5 has been developing a food sharing initiative since July 2022, whereby food products that are nearing their expiry date are donated to people in need. The project has the potential to both protect the environment and to help individuals who are struggling.

achievements
Achievements and results

In 2022, X5 sent 663 thousand tonnes of materials, including 351 thousand tonnes of cardboard, for recycling. This was about 93% of all waste produced by the Company.

The Company has given more than 250 thousand tonnes of food products to farmers for processing into animal feed since the start of the project.

Throughout the Company’s collaboration with Plodorodie, about 300 tonnes of fruit and vegetable waste has been sent for composting.

X5’s food sharing initiative has helped more than 60 thousand people, and over 40 tonnes of food products have been saved.

world
Connection of the project with the UN SDGs
Sustainable consumption and production
Goal 12 : Sustainable consumption and production
nation
Connection of the project with national goals

-

nations project
Connection of the project with national projects

-

link
Link to project web page

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