Energy consumption and efficiency
The Company is working to implement new energy efficient technologies that enable it to reduce energy consumption. As part of the energy efficiency program, X5 is gradually reducing electricity consumption per square meter of retail space. The Company operates automatic monitoring systems to record electric energy consumption, as well as a monitoring and control centre for these systems.
Electricity consumption accounts for about 80% of X5's total utility costs, which makes it a priority. In 2018 and the first half of 2019, X5 put in place a number of initiatives to optimise the use of electricity:
- setting up an automatic data collection system across Pyaterochka stores to reduce electricity consumption, analyse the data flow and calculate optimal tariffs. In 2018, we reduced electricity consumption across Pyaterochka stores by 27.9 million kWh, while in the first half of 2019, the reduction amounted to 78.1 million kWh. Effective electricity consumption allowed us to reduce CO2 emissions by 39,000 tons in 2018 and by 109,000 tons in the first half of 2019 ;
- rolling out the extended Smart Store pilot in the Pyaterochka retail chain to cut energy consumption at retail outlets by 5%. At present, the Smart Store solution has been implemented in four Pyaterochka stores in Moscow. The technology is set to be rolled out in 120 branches of the chain in the near future. From 2020, all newly opened and refurbished Pyaterochka stores will be equipped with this technology;
- using remotely controlled refrigeration systems in all Pyaterochka stores, which secured savings of some RUB 70 m in 2018;
- rolling out a comprehensive system in Perekrestok stores that helps to improve the energy efficiency of supermarkets. The automated control and monitoring system will help cut power consumption in stores by an average of 10%. The energy efficiency system regulates equipment and lighting loads based on the operating mode of the retail facility, current temperature indoors and outdoors, and CO2 content in the air. The new technology has already been piloted and is now being integrated into every new store;
- launching the Improving the Energy Efficiency of Automated Electricity Fiscal Metering project across Perekrestok stores to enable checking of electricity meters at the point of metering and to enter into direct power supply contracts based on multiple tariffs;
- installing LED lighting in all Perekrestok and Pyaterochka stores along with 24 Karusel hypermarkets.
Transport and logistics operations have a significant impact on the environment. X5 uses a variety of approaches to mitigate this impact by investing in modern trucks, optimising travel routes and recycling tires, tubes, batteries, ferrous and non-ferrous metals, motor oils and other materials in line with Russian legislation.