THE CHANGE TO YOUR BREAKFAST

Achievements for 2022

In 2018 Lidl Ireland & Northern Ireland committed to reduce our plastic packaging consumption by 20% by the end of 2022, against a 2017 baseline. We are proud to announce in mid-2022 that we reached our target one year ahead of schedule. To allow continuous and comparable reporting while our business grows, we calculate the plastic reduction on a revenue adjusted basis.

Instant hot chocolate tub reduction: optimised tub shape to reduce plastic weight. Plastic weight has been reduced by over 30%.

Potato and carrot bag reduction: micron reduction on the plastic bags for potatoes and carrots.

Yoghurt bucket reduction: by optimising the shape of the bucket and removing the handle, we have reduced weight of our 1kg Greek yogurt full fat and low fat by 20.9%. We also optimised our flavoured 1kg yogurts and reduced them by 19.6% - we are looking to remove the handle off this product as well soon. Combined this leads to a reduction of almost 30 tonnes of plastic annually.

Lid removal and reusable lids: plastic reduction of 5.75 million lids leading to over 17 tonnes of single use plastic being avoided annually. We now offer a reusable alternative that includes point of sale information which explains the reason for the missing lids to customers.

Reusable beverage crates: moving from single use pallet wrapping and cardboard layer pads to reusable beverage crates that are delivered to stores and collected. We are currently exploring rolling this out to further lines.

Plastic-free wet wipes: We are in the process of moving all of our wet wipes containing plastics to exclusively offering plastic free and biodegradable wet wipes made from viscose.

Reusable bottles for fresh orange juice: In September
2021 we started offering a reusable glass bottle for our fresh orange juice machines in store beside the current PET bottles. Customers pay the same price for 500 ml orange juice in the single use plastic bottle as they do for 650ml in the reusable glass bottle, therefore they get 30% more juice for their money. This incentivises the use and reuse of the new bottles. Fifteen months after its introduction, we have sold over 80,000 refills. Assuming customers would have otherwise bought the same amount of 500ml single use plastic bottles - considering the bottle, label, and cap of the bottles - this avoided the equivalent of almost 250,000 pieces of single use plastic.

Total tonnage of plastic packaging waste avoided over the last 12 months is 50 tonnes.

Plans for 2023

DEFINE NEW TARGET: Our next step will be to develop and publish updated target(s) in 2023 to ensure our focus is kept on reducing and removing packaging where sustainably possible. We are committed to continuously strive to reduce the detrimental impact that unnecessary and unsuitable packaging formats and materials have on our environment.

NEW FOCUS: Over the last 12 months we have utilised our new packaging database to give clear and detailed information on our packaging footprint, track our continuous improvements and are currently using these valuable insights into identifying high- impact products and projects. This information will continue to enable us to focus our efforts on products and projects that have a substantial influence on our plastic footprint. We use this data to inform our short term, mid-term, and long-term packaging strategy.

OPTIMISATIONS: We have aligned several optimisations and trials that will go live in 2023. These will remove and reduce packaging while focussing on high volume items across our range to maximise our impact.

Achievements for 2022

Lidl Ireland Commitment:

By 2025, 100% of our own-brand packaging will be reusable, designed for maximum recyclability or made from renewable resources

Deposit Return Scheme (DRS):

In 2021, Lidl was the first retailer in Ireland to introduce a reverse vending machine trial, piloting the upcoming deposit return system in Ireland. The initial trial was launched in our store in Glenageary, Co. Dublin and we have since expanded the trial

to Claremorris. Co. Mayo. As of December 2022, between the two stores, we have processed approx. 800k PET bottles and aluminium cans. Customers receive 10 cents in store credit for every empty PET beverage bottle and beverage can they place into our machines. As a next step in this project, Lidl was the first retailer in Ireland to introduce the PET bottle material into the packaging for our products in 2022. This allows Lidl customers to buy back the material they inserted into our reverse vending machines and by that to be part of the Irish circular economy.

This project is a collaboration across the Irish packaging recycling as well as packaging and food manufacturing supply chain. We are proud to have collaborated with Shabra Plastics & Packaging, Waddington Europe, Versatile Packaging, and our direct supplier Silver Hill Foods. The PET bottles have been cleaned, flaked, and manufactured back into food grade packaging, filled with our own brand product, and delivered back to store. This has been completed by stakeholders based in Ireland. Thirty percent of the total tray weight is made from our collected bottles. We hope that in completing this trial and launching this packaging we can demonstrate that truly recyclable packaging is not “waste” but an important and highly sought-after raw material that brands and retailers give value to by demanding recycled content in their products.

Plastic waste segregation & recyling:

Since 2021, 100% of the segregated plastic waste from our operations is recycled. Our waste management provider assured us that even specific hard to recycle flexible and rigid plastics, are now being used for the creation of products such as garden furniture and fencing posts, pallets, and flowerpots. In 2022, we were able to send approximately 772 tonnes of plastic from our stores and warehouses off for recycling.

Customer recyling stations:

We installed customer recycling stations in all our stores. We invite customers to dispose of unwanted excess packaging before leaving the store. It is then returned from stores to our main distribution centres and sent to external providers for further sorting and recycling together with our warehouse waste.

Sustainability focus event for our suppliers:

In October 2022, Lidl hosted our second annual Lidl Sustainability Focus Event for our key suppliers. At the event we awarded suppliers who have championed packaging innovations and packaging reductions. We also presented ways in which suppliers can work with Lidl to improve their packaging footprint as well as other sustainability projects and initiatives.

Packaging optimisation initiative – workshops:

In 2022, Lidl’s in-house packaging technologist ran workshops with buyers and suppliers, presenting the necessity of mono materials and design requirements that packaging must fulfil to be recyclable and sustainable. Through trainings, creating guidelines for recyclable packaging and working directly with our suppliers, we have targeted packaging with unrecyclable plastics and composites. These have been identified and replaced with easier to recycle alternatives.

100 % of the plastic waste occurring at our sites is segregated and sent off for sorting and recycling with our waste provider.

Plans for 2023

New focus:

Our new, improved packaging database will continue to help us communicate the status and progress of our packaging KPIs. We plan to communicate updates on our packaging progress in our customer leaflet and sustainability reports.

New to market:

We will continue to evaluate further removal of packaging components and new to market packaging solutions by running trials to see how the supply chain and the customers react to the changes. This will help educate customers and make them aware of the ecological benefits those solutions have compared to the current standard. The goal is to raise awareness and accelerate the adaptation of packaging that is proven to be more sustainable into the market.

Achievements for 2022

Lidl Ireland Commitment:

By 2025, 100% of our own-brand packaging will be reusable, designed for maximum recyclability or made from renewable resources.

Examples of implemented projects aligned with the outlined Repak goals are:

Mushroom Packaging Optimisation:

Replacement of PVC Stretch-wrap with OPP flowrap on all fresh mushrooms leading to a removal of unrecyclable PVC in the range. There is no impact on shelf-life because the flowrap is perforated, allowing excess water to evaporate while not letting the mushrooms dry out. Previously this was achieved by utilising breathable PVC.

Material Simplifications:

Throughout 2022 there has been ongoing work across Lidl’s product ranges to replace mixed materials (e.g., PET/PE mixes) with easier to recycle mono materials.

Black Plastic Removal:

In line with our international strategy, we have successfully removed all black single use plastic packaging from our listed assortment. In 2022 we continued implementing our “clear first” policy, where we push for the use of clear and lightly coloured plastic to increase the usability as a raw material. We removed over 500 tonnes of black plastic and use as little coloured plastic as possible to allow for a high material worth when recycling.

In 2022, we continued to avoid listing any packaging made from black plastic into our listed own brand assortment.

Plans for 2023 New focus:

Our new and improved packaging database informs us which products contain the highest tonnes of mixed and undesired plastics in our product range and allows us to specifically focus on finding solutions for those ranges. We continue to look out for innovations in the market and work together with our product suppliers as well as the packaging suppliers delivering to them.

Optimisations:

We have already aligned several packaging optimisations and trials focussed on recyclability that are to go live in 2023.

Mono PE, PP and PET:

Are our preferred materials when a plastic inclusion is necessary to fulfil packaging functions because of their existing international recycling streams – we will continue to switch all our packaging to mono PE, PP and PET where feasible – moving away from difficult to recycle plastics and composites.

Waste sorting facilities:

We will continue and expand our work with waste sorting facilities and recycling companies both in and outside of Ireland to assure maximum recyclability of our packaging range. Multiple visits
and regular meetings are being planned in to make sure that our packaging strategy aligns with the requirements and realities of the Irish waste infrastructure and our buyers are made aware of the scale their buying decisions have on the recycling industry.

Achievements for 2022 Lidl Ireland Commitment:

We have pledged that by 2025, 50% of the materials used in our own-brand packaging will be made using recycled materials.

Examples of implemented projects aligned with the outlined Repak goals are:

Prevented ocean plastic (POP):

We are the first retailer in Ireland to include Prevented Ocean Plastic (POP) into its own brand range. We have moved
over the PET bases of 5 lines of our fresh seafood products to contain 30 % POP. This equates to almost 19 tonnes of plastic being prevented from entering the ocean annually. The equivalent of approximately 750,000 bottles. The collection of those bottles provides a years’ worth of well-paid work for an average bottle collector in predominately poor coastal regions around the globe.

Roses in sleeves made from recycled plastic:

In December 2022, we moved the OPP plastic sleeve on our Dozen Roses to HDPE sleeves containing 50% Recycled content leading to 2.5t of virgin plastic being avoided. We currently evaluate the roll-out of this solution to other lines depending on customer feedback. Average recycled content for project above is 50%.

Customer recyling stations:

We installed customer recycling stations in all our stores. We invite customers to dispose of unwanted excess packaging before leaving the store. It is then returned from stores to our main distribution centres and sent to external providers for further sorting and recycling together with our warehouse waste.

Plans for 2023

New focus:

Our new and improved packaging database helps us to pinpoint which are the highest impact product ranges using materials that allow for the use of recycled content. We continue to look out for innovations in the market and work together with our product suppliers as well as the packaging suppliers delivering to them. Lidl already uses a high percentage of recycled plastic where it is safe to do so (mainly PET packaging for foodstuff and multiple plastics for non-food-contact materials) We are constantly evaluating opportunities to extend the usage of recycled content across our range.

Optimisations:

We already have aligned several packaging optimisations and trials focussed on recyclability that are to go live in 2022.

The new EU regulation for recycled plastic in food contact from September 2022 will impact the way we look at recycled plastic. While it is complicated and needs to be properly reviewed, it will also open the possibility to explore new recycling processes for food contact materials that Lidl will explore with its suppliers.

Achievements for 2022

As a food retailer, we recognise our responsibility to take leadership for minimising food losses and effective food waste measurement systems. Examples of actions we took to reduce food waste are:

→ In 2022 we redistributed over 760,000 meals through our food distribution partner FoodCloud and we surpassed the 4 million total meals redistributed milestone in the lifetime of our partnership. These meals equate to an estimated C02 saving of over 1 million Kgs and over 300,000 Kgs of food.

→ Every time we propose a packaging optimisation for any
of our products, we conduct a full analysis with the supplier to make sure that the quality and shelf life of the product meets the requirements and does not increase food waste.

→ For every new loose fruit and veg product, we assess the performance of that product in terms of sales, write-offs and how much of it is donated to ensure we meet demand with adequate supply and the protection and shelf life of the product meets the demands.

→ We will continue our Waste Not section in the chiller wherein chilled products at best before dates (and perfectly safe to eat) receive a huge price reduction.

Even though all of our colleagues are avoiding food waste wherever possible, and our processes and donations make sure we sell or donate as much of our food as possible, some products can’t be sold or donated. Our waste management provider collects this residue organic waste from our stores to feed their Anaerobic Digestion plant to fuel their fleet of vehicles, which in turn deliver to our stores or collect waste.

Plans for 2023

Logistics Project in 2023: Launch of “Zero Waste” which we hope to receive Gold Standard DIN accreditation. All waste streams will be analysed which will include plastics and food waste. Waste Not 2023: In 2023 we will be launching our Fruit and Vegetable Boxes which will be sold at a reduced price under the Waste Not programme. This will include fruit and vegetables which do not meet quality standards but are still perfectly safe to eat. We aim to reach the 4 million meals donated milestone under FoodCloud.