Taking Action for Future Generations: Renewable Energy for the Companies of Schwarz Group

The companies of Schwarz Group are pursuing a targeted course towards a more environmentally friendly future: That also means that they use nearly 100 percent renewable energy*. With Lidl, Kaufland, Schwarz Produktion and Schwarz Digits the majority of companies are already using electricity that comes from 100 percent* renewable energy sources.

As the fifth largest waste management company in Europe, PreZero currently uses 97.5 percent renewable energy. Some business units have only recently become a part of PreZero due to its rapid growth and are still tied to existing electricity purchase agreements; they are gradually being converted to further increase the proportion of renewable energy they use too. With that in mind, our energy mix for all existing and newly added business units currently amounts to 99.5 percent of electricity from renewable energy sources. The target of 100 percent renewable energy is clearly defined.

Around two percent of the renewable energy we source today is from our own production facilities. 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 demonstrate our clear commitment to climate protection.

We are also planning to gradually increase the proportion of renewable energy we produce ourselves. At present, the rest of the electricity from renewable energy sources* purchased by the companies of Schwarz Group is covered by guarantees of origin**. Through the continuous expansion of our own renewable energy production capabilities, coupled with improvements in energy efficiency, we have used 598,700 megawatt hours of renewable energy produced from our own facilities in the 2023 fiscal year.

Solar power systems span the roofs of our stores, warehouses and administration buildings, covering a total area of four million square meters – the equivalent of roughly 568 soccer pitches. These systems produce enough solar power to theoretically supply 100 average households for a whole year. But we are just getting started.

In a significant step toward establishing a sustainable energy supply for the companies of Schwarz Group, Schwarz Beschaffung has concluded a long-term “power purchase agreement” on behalf of Lidl and Kaufland with RWE Supply & Trading. From 2028 onwards, the two retail divisions will purchase around 250,000 megawatt hours of renewable energy annually from the offshore German wind farm “Kaskasi” in the German North Sea. Located around 35 kilometers off the shore of the German island Helgoland, the wind farm has a total of 38 wind turbines with a capacity of 342 megawatts. The partnership secures renewable energy capacities in the long term and underlines the commitment of the companies of Schwarz Group to combating climate change.

The combination of self-produced renewable energy, a long-term power purchase agreement and innovative technologies shows how the companies of Schwarz Group are not just thinking ahead, but also acting ahead – for people and climate and to actively shape the energy transition.

* 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 environmentally friendly electricity from renewable sources. They state how, when, and where the energy was generated, and can be traded internationally.