The SPAR Group champions true value and sustainability – ‘My SPAR. Our Tomorrow’.
Author: Admin@adcyxagency.co.za
The SPAR Group is leading the thinking in the fight against climate change. Driving true value and sustainability remains our public commitment to the future of our brand, our society and the planet.
Our strategy is guided by our sustainability policy and our sustainability purpose: to build a better future for all.
Recognising that we can only make positive and large-scale change by collaborating with others and developing long-term relationships with partners in our value chain is at the core of our sustainability strategy.
Who We Are
The SPAR Group is a warehousing and distribution business listed on the Johannesburg Stock Exchange (JSE) in the food and drug retail sector. Through its voluntary trading model, it services a variety of store formats that are independently and corporately owned. SPAR develops products and concepts as part of its independent retailer support offering. These in-house developed products and concepts are called house brands, showcasing SPAR’s innovation and quality at competitive prices. SPAR-branded products are included within in-house brands. These are the products that compete with proprietary brands on shelf. Our purpose is to inspire people to do and be more. This is why we exist and why we want to be the first-choice brand in the communities we serve.
Strategic Priorities
1. Sustainable stakeholder value:
• The ecosystem in which we operate is environmentally, socially, economically resilient and sustainable because of a responsible and ethical culture shared by all players in our value chain.
• Decisions taken by SPAR actively seek to create and preserve value for all six capitals in our ecosystem– interests of our stakeholders are considered and well-balanced to ensure that the entire system is sustainable in the long term.
• Our reporting and disclosure are authentic and makes our impact on the ecosystem in which we operate visible to all relevant stakeholders.
2. Loved and respected as a brand:
• Stakeholders including consumers, are aware of and inspired by SPAR’s work in the sustainability area of business – this is a key driver behind the SPAR brand having a strong emotional connection with stakeholders.
• We are acknowledged for the difference we make in the territories and communities we serve.
• We continue to work at growing our culture of responsibility and .
• We strive to have a positive impact on the wellness of our customers, their families and our people, especially in the areas related to healthier eating habits.
3. Nutritious and affordable food:
• We continue to review our operating model to enable consumers to have access to affordable, nutritious and safe food.
• We continue to develop and support local, inclusive and diverse supply chains wherever possible.
Our Environmental Purpose
Our environmental purpose is to inspire and influence stakeholders to make authentic and notable environmental contributions. The purpose defines sustainability’s role as the business’s environmental conscience.
Our focus areas are:
• Energy mix and efficiency
• Water risk assessment
• Food waste assessment across our value system
• Proofs of concept for circularity in our packaging and food waste initiatives
• Research to underpin responsible sourcing and production
• Research to inform “responsible diets”.
• Authentic and relevant environmental messaging
SPAR’s most recent climate, water and forests disclosure is available on the SPAR website:
https://thespargroup.com/sustainability/#CDPdisclosure-insight-action
Our Achievements
The Rural Hub
The SPAR Rural Hub business supports marginal farmers who lack the scale to supply commercial markets. The aim is to create sustainable and inclusive agricultural networks in South Africa, where young and black farmers are underrepresented.
The business currently empowers farmers across 140 hectares in the rural Mopani District in Limpopo Province and provides employment for over 160 people. All participating farmers are GLOBALG.A.P. certified, and our packhouse holds a GFSI (Intermediate) certification. SPAR also guarantees markets for the vegetables grown through the Rural Hub to its more than 2,500 stores across Southern Africa. From the season starting in January 2023, this group achieved a total output of R8.052 million.
This year marked a breakthrough, with all participating farmers making a profit, a key achievement as the programme is designed to help farmers become independent. The success was attributed to a favourable winter season and continuous improvements in the system. Production was optimised by reducing the variety of crops from 12 to three – speciality tomatoes (cocktail and mini plum), baby corn, and green beans. One farmer even diversified into fruit crops, planting two hectares of guava trees.
In recognition of our farmer’s hard work and commitment, the Kagiso Trust, through its Tyala Impact Fund, has awarded R300,000 each to 10 SPAR Rural Hub farmers, to further increase the impact they’re making in their communities.
The SPAR Rural Hub business was recently recognised with the Changemaker Award in the retailer category at the GLOBALG.A.P. Summit held in Warsaw, Poland – a international acknowledgment of the impactful contribution to positive change in the world of farming.
‘Congratulations to SPAR South Africa! A role model for other countries! Sustainability, regional development and neighbourhood development at its best’
(SPAR Austria)
‘Congratulations SPAR South Africa! Brilliant concept and development for a sustainable future’
(SPAR UK)
Green fleet for SPAR2U online deliveries
SPAR2U is The SPAR Group’s rapidly growing on-demand e-commerce shopping solution. To reduce SPAR’s carbon footprint, we introduced 65 electric vehicles to replace our petrol-powered bikes. This fleet was introduced after a successful pilot period which started in March 2023, during which we validated the viability and efficiency of our electric vehicle solution. The fleet consists of:
• 52 two-wheel motorcycles
• 12 three-wheel motorcycles
Tests are being conducted on an electric four-wheeler bakkie in the North Rand region. These are being deployed across Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape and Lowveld in Mpumalanga. We expect to save more than 212 tonnes of tailpipe carbon emissions per year by making this change. This supports our goal of achieving a 50% SPAR2U green fleet by 2025. We power the vehicles with renewable energy including solar to ensure a reduction in environmental harm.
Solar plant installation power purchase agreement
In 2023, SPAR South Africa entered into a power purchase agreement (PPA) with Terra Firma, where we only pay for usage and the capex was expended by Terra Firma. Progress made with he PPA solar plant installations is as follows:
South Rand, KwaZulu-Natal and Western Cape
• Additional 600-kilowatt plant added
• Additional solar plant installation completed and is currently operational
• Handover packs are being completed
KwaZulu-Natal and Western Cape
• Additional 300-kilowatt plant added
• Additional solar plant installation is progressing well and still on track for completion by the end of November 2023
Western Cape
• Additional 2-megawatt plant added
• solar plant is still under construction and part of it will be live before the builders’ holiday break when is that?
Water Resilience
SPAR has water reuse/recycling systems at five Distribution Centres (DCs): Western Cape, Eastern Cape, South Rand, KwaZulu-Natal and Lowveld. Recycled/reused water is measured separately in the South Rand and KwaZulu-Natal DCs. For the Western Cape DC, recycled/reused water is measured with borehole withdrawals.
In other SPAR DCs, reused/recycled water is measured with municipal water withdrawals. In all the remaining DCs, SPAR is installing meters to measure recycled water monthly to improve water data accuracy.
Packaging Waste Reduction
The SPAR branded plastic carrier bag contains 100% recycled content, with a minimum of 70% post-consumer waste, and is sold through the SPAR distribution centres by approved SPAR brand packaging distributors. These bags meet all South African legislative requirements and SPAR’s sustainability commitments. They are the only plastic carrier bags authenticated by SPAR and carry the “My SPAR. Our Tomorrow” logo.
The SPAR environmental team monitors adherence to SPAR specifications through external South African Technical Auditing Services (SATAS) audits and supplier visits. Plastic carrier bags are subject to an environmental levy, earmarked to establish recycling facilities in South Africa.
SPAR received the inaugural South African Plastic Recycling Organisation (SAPRO) Platinum Design Principles Award for our all-white, all-HDPE milk bottle in September 2023. The award was made as part of the SAPRO 9th biennial Best Recycled Plastic Product Awards.
Upcycled Trollies: Shopping trollies made out of recycled plastic milk bottles (240 milk bottles per trolley) were phased in by 2023 and are now the only option for sale to retailers. Over their use thus far we have found them to be sufficiently durable and robust, mitigating the need for alternatives. We sold 5 206 recycled trolleys in 2023 versus zero in 2022, and 3 196 virgin material trolleys.
Carbon Reduction
SPAR is unwavering in our commitment to reduce our absolute carbon emissions from our South African transport operations by 33% by 2030 and 100% by 2050, from 2017 levels. We are making significant strides to reduce absolute carbon emissions from our South African warehousing operations by 51% by 2030, and 100% by 2050, from 2017 levels.
However, the enormity of the challenge shifts the focus from SPAR to strengthening the collective fight across the industry, society, economy, and value chain. We are not under the illusion that we can achieve this alone—even if we meet our targets, real change will only occur if every person and organisation join the battle.
End Gender-Based Violence
Our commitment to our purpose, ‘TO INSPIRE PEOPLE TO DO AND BE MORE, and our family values, we have partnered with Lifeline, TrueLife and the National Prosecuting Authority to drive impactful change in ending the pandemic that is gender-based violence in our society. We support all Thuthuzela Care Centres in the country with food and care packs for the victims of gender-based violence. We have entered a collaboration with Standard Bank, Motus and KPMG to scale up the impact to eradicate gender-based violence in our society.
Fighting for a Sustainable Future Matters
SPAR is going on the offensive to help drive sustainability on multiple fronts. Our solutions include providing branded and private label offerings, collaborating directly with farmers to support their efforts to reduce emissions in the supply chain, supporting the decarbonisation of supplier operations, including packaging and waste, taking advantage of technology, and raising sustainability awareness so consumers can make healthier, better choices. Our continued focus on transformation, gender equality and inclusion are part of our fight for a sustainable future for our brand and society. We are supportive of a just transition to a more sustainable world.
The SPAR Group endorses and supports moves by the Consumer Goods Council of SA to drive a stakeholder approach to reducing carbon emissions. The CGCSA has recently been registered as a Producer Responsibility Organisation (PRO) which will enable it to coordinate efforts by its manufacturing and retailer members to reduce the impact of waste on the environment and comply with applicable Extended Producer Responsibility (EPR) legislation. SPAR remains active in developing and driving an industry-wide stakeholder initiatives set up by the industry.
In our view, sustainability is not about competition, but we seek a collaborative approach to effectively address the issues that need to be addressed for a sustainable society. Tough conversations across the industry are needed to make this a reality.
For our part, The SPAR Group has developed a strategic roadmap that identifies the areas we should focus on , facilitating a greater focus on the broader challenges and supporting the drive for more sustainable retailers in general.
It is time for businesses, society and government to roll up their collective sleeves and work harder together to ensure a sustainable future for us all. If we do not, future generations will be left picking up the pieces.