The Shoprite Group’s Centurion distribution centre has achieved Level 2 Zero Waste to Landfill certification, confirming that more than 90% of waste generated at the site is diverted from landfill. This reflects a broader operational model within the business, where waste management is integrated into logistics, procurement, and store-level processes.

According to Sanjeev Raghubir, Chief Sustainability Officer for the Shoprite Group, the certification is linked to how sustainability is positioned within the organisation. Sustainability is not structured as a standalone function.

“It doesn’t sit in marketing or public relations, it sits closer to operations,” Raghubir explains. “Whatever we do is directly related to how the business runs.”

This integration is tied to the group’s broader business model. “We’re focused on affordability, and that drives efficiency,” he says. “When you’re efficient, you’re using less energy, less water, less diesel, and producing less waste.”

Performance tracking and governance structures underpin delivery

The Shoprite Group manages environmental performance through a structured system of measurement and reporting. “We track dashboards weekly, monthly, quarterly,” says Raghubir. “Water, electricity, diesel we monitor all of it so we can identify outliers and act.”

To consolidate this data, the group is investing in a centralised technology-led Environmental, Social, and Governance (ESG) platform that integrates inputs across operations.

Environmental performance is also embedded in governance mechanisms. “20% of executive bonuses are linked to environmental key performance indicators,” Raghubir notes. These include renewable energy targets, recycling volumes (particularly cardboard and plastic), and packaging metrics such as recyclability and recycled content.

This structure links operational performance directly to leadership accountability.

Reverse logistics forms the backbone of material recovery

A principal component of the Shoprite Group’s waste diversion model is reverse logistics, which ensures that transport capacity is utilised in both directions.

“The worst thing a truck can do, is travel empty,” says Raghubir.

In practice, trucks delivering goods from distribution centres to stores return with separated waste streams, primarily cardboard and plastic. At the store level, materials are sorted into dedicated streams and transported back to distribution centres for consolidation.

The scale of this system is significant. “About 70 000 to 75 000 tonnes of cardboard and plastic every year,” Raghubir says, “That’s roughly a herd of 30 elephants a day.”

Once returned, materials are directed into recycling streams. “Plastic is recycled back into carrier bags and cardboard goes to mills and ultimately back into packaging,” he explains.

The process is monitored continuously. “We track this on a monthly basis where we can see which stores have sent back and which haven’t,” Raghubir notes.
Beyond environmental performance, the system contributes financially. “In some cases, it becomes an income generator,” he adds, referring to the resale of recyclables and cost savings from material recovery.

Organic waste requires a multi-tiered intervention model

Raghubir identifies organic waste as a structurally complex issue within retail operations. “Organic waste is the unseen problem,” he says.

The Shoprite Group addresses this through a hierarchy that prioritises prevention, followed by reuse and recovery.

At the prevention stage, the group has invested in data-driven forecasting. “We’ve implemented artificial intelligence that predicts the rate of sale,” Raghubir explains.

These models incorporate variables such as weather, timing, and local demand patterns. “It looks at the weather, time of day, time of month and predicts what the store should order,” he says. This is especially important for the retailer, as availability is key to customer retention across the board.

The outcome is dual: “It has reduced food waste and increased sales,” he notes.

Where surplus still occurs, in-store reprocessing is used. “We’ll rework it; sell it loose or cook it in-store,” Raghubir says, referring to deli operations that convert surplus into prepared foods.

Donation forms the next layer of intervention. “Last year, we donated more than R250 million worth of surplus food and goods to over 500 beneficiary organisations,” he states.

Material unsuitable for human consumption is redirected further. “It goes to animal feed or composting,” he explains.

Only residual waste is disposed of. “Landfill is the last resort,” Raghubir adds.

Supplier engagement is required to resolve problematic materials

Some waste streams cannot be addressed internally and require intervention at the supplier level.

“We had yoghurt trays made of black PET that nobody could recycle,” Raghubir says.

Because recyclers do not accept black PET, the material accumulates within the system. “We had to go back to the supplier and say this is a problem,” he explains.

The outcome was a shift to clear PET, which is recyclable.

Potato packaging presented a different challenge. “They look like paper, but they’ve got a wet-strength additive, so they’re not recyclable,” Raghubir notes. An in-house team, as part of a leadership development programme at the Shoprite Group, worked with suppliers to redesign the packaging. “They worked with suppliers to develop a bag that still performs but can be recycled,” he says. This was an especially important task for the retailer as Raghubir notes that that they sell the most potatoes of any retailer in South Africa, and getting this right was an operational victory.

The group’s influence varies depending on control. “We can’t impose conditions on suppliers,” he adds. However, private label products provide a direct lever.

“About 20% of our products are private label and that’s where we decide on the packaging,” Raghubir explains. Within this segment, more than 90% of packaging is already recyclable, reusable, or compostable.

The Shoprite Group’s approach to plastic focuses on material recovery rather than elimination. “If plastic used in a circular manner, it becomes very useful.”

Since 2013, the group has produced carrier bags made from 100% recycled plastic sourced through its own recovery systems. These bags are designed for reuse and supported by return incentives, linking consumer behaviour to the broader circular model.

Data intensity and verification define certification

Achieving zero-waste certification required detailed tracking across all waste streams and facilities.

“Good data is the biggest asset. You need to trust it when it goes to auditors,” Raghubir says.

The process requires full traceability. “You’ve got to track and trace everything, what’s generated, what’s recycled, where it goes,” he explains.
Verification is conducted externally, which introduces structural constraints. “There’s only one entity in South Africa that does this,” he notes, referring to certification capacity.

The concept of ‘zero waste’ is also defined by thresholds. “One could get to 100% diversion, but it starts to cost a lot of money,” Raghubir says. For the Shoprite Group, the objective is to maximise diversion without increasing operational costs.

The Centurion facility also serves as a reference point for broader implementation. “Our hyper-supermarkets are close to 90% already, now we can replicate the methodology where applicable.”

The retailer is applying the same systems, measurement, separation, reverse logistics, and supplier engagement, across other distribution centres, stores, and offices.

Replication does not necessarily mean duplication. “We won’t do the exact same thing everywhere,” he notes, indicating that site-specific adaptations are required.

Partnerships enable downstream recovery

The Shoprite Group relies on external partners for waste management and recycling, with Raghubir saying, “While sustainability in embedded within Shoprite Group’s operations, we are not a recycling company, and we cannot do this alone.”

The group works with multiple service providers rather than a single national partner. “We don’t put all our eggs in one basket,” he explains. These partners play a role in identifying new recovery pathways. “The best ones come with solutions new off-takers or new ways of diverting waste,” he says.
An example includes the recycling of polypropylene trolley wipes. “We collected them at stores, sent them back to DCs, and they were recycled into products like jungle gyms,” Raghubir notes.

The Shoprite Group participates in South Africa’s Extended Producer Responsibility framework through multiple Producer Responsibility Organisations, including Polyco, Fibre Circle, and MetPac. Raghubir explains: “We are compliant and actively involved. EPR has enabled a lot of action within this space,” and adds, “We insist that our private label suppliers are signed up to a PRO too.”

Energy and infrastructure considerations

The Centurion facility’s waste performance is supported by broader energy initiatives.

The Shoprite Group has implemented rooftop solar across more than 100 sites, with additional installations on leased properties. “About seven to seven-and-a-half percent of our electricity is now from solar PV,” Raghubir says.

The group has also piloted electric delivery vehicles. “We were the first South African retailer to pilot an electric truck,” he notes.

However, limitations remain. “There’s no genuine environmental benefit if the electricity is still coal-based,” he adds, referencing South Africa’s energy mix.

Additional efficiency measures include large-scale LED rollouts and ongoing improvements in refrigeration, one of the group’s largest energy demands.
The Centurion certification reflects a system rather than a single initiative. Waste diversion is achieved through coordinated interventions across forecasting, logistics, supplier engagement, data systems, and partnerships.

As Raghubir summarises: “It’s about joining the dots, moving material in an efficient way so it can be recycled.”