X5 and Unilever agree to develop circular economyX5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), and Unilever, a major global supplier of fast moving consumer goods, signed an agreement of intent to implement circular economy principles. The agreement was signed on the margins of the St Petersburg International Economic Forum by Х5 Retail Group CEO Igor Shekhterman and Unilever President in Russia, Ukraine and Belarus JV Raman.
The companies agreed to launch a partnership programme for installation of reverse vending machines (RVM), which are branded kiosks that accept used consumer plastic containers for further recycling. Based on the outcome of a pilot project, the parties will decide on possible further roll-out. The companies intend to partner in order to encourage consumer participation in separate waste collection for further recycling. For example, at the first stage of the pilot, customers who deposit plastic containers to RVMs in Perekrestok and Karusel stores will be rewarded with discounts on new purchases, thus creating a closed economic cycle that enables Unilever to act as a responsible producer that sells goods in eco-friendly package made from recycled polymer materials.
"Recycling is a strategic area of waste reduction. In line with sustainable development principles, X5 recycles 100% of the plastic, cardboard, paper and other non-food waste generated by its stores. In addition, we seek to support and encourage responsible consumption by our customers by increasing the supply of reusable packaging and by installing RVMs in our stores. It is even more pleasing that this a joint initiative with Unilever, one of our largest partners," said X5 Retail Group CEO Igor Shekhterman.
"Our strategic goal is to complete a global transition to 100% recyclable polymer content in our packaging by 2025. We are pleased that, thanks to the pioneering efforts of Domestos and our cooperation with X5 and EcoTechnologies, all leaders in their respective industries, shoppers at Perekrestok and Karusel stores will have the unique opportunity to convert an old plastic bottle into a new one, and even benefit from it," said JV Raman, Unilever President in Russia, Ukraine and Belarus.
X5 Retail Group
X5 Retail Group is the leading multi-format food retailer in Russia. X5 shares are listed on the London Stock Echange (LSE) and Moscow Exchange in the form of Global Depositary Receipts under the ticker "FIVE". The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand.