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We have continued implementing energy-efficiency initiatives. When compared to figures for the previous year, at total stores the energy intensity in 2016 amounted to 227 kWh/m2, representing a reduction of 11%. G4-EN3

Energy-efficiency G4-EN6, EN7

We were able to reduce our energy consumption due to the Energy Efficiency Program, through the implementation of technological initiatives:

  • Secondary measurement. Meters installed for electricity use in refrigeration, lighting, and air conditioning. This initiative obtained 4% savings.
  • LED lighting in stores, with approximate savings of 12%.
  • Doors installed where open refrigeration existed, achieving an estimated 12% savings.
  • Optimization of monitoring levels and control system operation, saving approximately 15%.
  • In Central America, a statistical model that correlates seven parameters to determine the ideal electricity use for each business unit. With this tool we were able to focus energy-reduction efforts in a limited number of stores (about 14% of total units) thereby reducing our footprint by 4% in those stores during the second half of the year.

Emissions

The emissions profile constitutes Scope 1 emissions, including the burning of fossil fuel such as diesel, LP gas, and natural gas; mobile combustion for automobiles pertaining to the Company; and the escape of refrigerating gas emissions. We also have Scope 2 emissions, such as the purchase of electricity; and Scope 3, which refers to mobile combustion from the subcontracted fleet used to distribute merchandise to the stores and back; air travel by associates for work-related reasons; emissions generated by our goods-for-sale suppliers due to the volume of business they have with us; and emissions stemming from waste generation and disposal.

For the third consecutive year, we reduced scope 1 & 2 emissions through the use of renewable energy and energy efficiency projects. GA-EN19

To estimate GHG emissions, the methodology established by WRI/WBCSD for the GHG Protocol is used. The data is obtained from acquired amounts of fuels, coolants, and electricity. Emissions are calculated by using published emission factors. Data on consumption corresponds to comparable units during comparable months. The emission factor stemming from the purchase of electricity corresponds to 2015, as information for 2016 has not been published at the time of producing this report.

This year there were 18,303 kg of chlorofluorocarbon-containing coolant that escaped to the atmosphere R-22. This factor increased by 15%, as compared to 2015. G4-EN20

The risks stemming from climate change include:

  • Increased energy costs.
  • Greater impact and frequency of natural disasters affecting places where we have units, thus affecting operations.
  • Disruptions in distribution routes due to natural disasters.
  • Increased costs for raw materials and products due to limited availability of non-renewable resources, such as water and agricultural products.
  • Changes in climate change legislation, which could impact the cost for raw materials and/ or overall operation.
  • Taxes or regulatory limits for either direct carbon emissions or in the supply chain.

Our opportunities include:

  • Renewable energy supplies which could offer long-term stability in energy costs.
  • Economic incentives for reductions in GhG emissions.
  • Reduced dependency on water supply from the network and increased use of recycled water.
  • Optimized use of raw materials, especially in packaging.
  • Increased logistics network efficiency with less trips needed.
  • Reduced travel by associates through the use of teleconferencing.

G4-EC2