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2024.08.28
Powering sustainability and affordability in food retail
About the client
The Conad Group, a leader in the Italian food retail market, boasts over 3,300 supermarkets across the country. Established in Bologna in 1962, the consortium, comprised of five main cooperatives and over 2,000 associates, operates on a unique model designed to create value chain from farmer to consumer. In 2022, the Group achieved a total turnover of €18.5bn.
Sector
Green technology
Partner / Client
The Conad Group
Country
Italy
The challenge
The Conad Group faced a substantial challenge with the escalating energy costs in Italy, where non-household electricity prices ranked the highest among EU countries in the first half of 2023. The significant surge in energy prices had a ripple effect throughout the sector, compelling retailers to increase product prices. To avoid passing on the full cost to its customers, Conad’s producers had to partially absorb some of the costs, leading to a notable reduction in profitability across the consortium.
The solution
In response to the energy cost challenges, Conad embarked on a visionary strategy: harnessing the power of the sun. Partnering with BNP Paribas Leasing Solutions, a leader in sustainable asset finance, Conad embarked on a large-scale solar energy initiative. The ambitious plan involved installing state-of-the-art photovoltaic systems on the rooftops of its supermarkets across the country. The initial phase involved PAC 2000A, the main cooperative managing 1,500 supermarkets in Central and Southern Italy. To date, 21 supermarkets have successfully integrated photovoltaic systems, with plans to expand across more stores.
BNP Paribas Leasing Solutions collaborated closely with the Conad team, crafting a tailor-made solution to finance the construction of the photovoltaic plant infrastructure. Bespoke agreements were developed to align with the Group’s investment needs and financial requirements.
The benefits
- Sustainable cost reductions: Lower energy bills translated to substantial cost savings, benefitting both Conad and its customers.
- Enhanced operational efficiency: Reduced reliance on traditional energy grids improved overall operational resilience and predictability.
- Strengthened value chain: Cost savings cascaded across the consortium, supporting both suppliers and retailers.
- Environmental leadership: The project solidified Conad’s commitment to sustainability, reducing its carbon footprint and contributing to Italy’s national energy transition goals.
By leveraging BNP Paribas Leasing Solutions’ expertise and tailored financial solutions, Conad is not only securing its own operational resilience but also contributing to a more sustainable and affordable food retail landscape in Italy.