# Artboard 1
Back to Overview

GRI 301

Packaging

Brief Overview:

The REWE Group aims to make sales and service packaging more environmentally friendly. The company

  • aims to achieve a proportion of 100 per cent more eco-friendly private label packaging by the end of 2030;
  • has therefore developed a comprehensive approach to more eco-friendly packaging for REWE and PENNY in Germany, as well as toom Baumarkt DIY stores, which is systematically integrated into purchasing processes across all product ranges;
  • relies on three successive levels to implement this approach: The trade group defines requirements, and supplier discussions also form the basis for further elaboration of potentials for improving the eco-friendliness of packaging. Moreover,innovation projects also lead to the development of new packaging concepts;
  • bases its approach to more eco-friendly packaging on the three principles of “avoid”, “reduce” or “improve”. The ecologically best packaging is the one that can be avoided completely.

The area of packaging plays a special role in the focus topic of Circular Economy, which is anchored for REWE and PENNY in Germany within the Green Products pillar, alongside Climate and Biodiversity in the area of action Environment.

GRI 301: Materials

Management Approach

Effect

Packaging serves many important functions: It keeps food fresh, protects it and enables its transport. However, along the packaging value chain, a multitude of negative ecological impacts can arise – from the depletion of resources in the extraction of raw materials to the energy consumption and emissions in their manufacture to their disposal. The REWE Group is aware that packaging in its product range has a real negative impact in terms of resource consumption and packaging waste. To identify these and other potential environmental and climate impacts of its business model, the company has followed its strategic approach (see section Strategic Approach). In order to reduce these impacts and promote the circular economy, the REWE Group implements numerous measures for the sales and service packaging of its private labels (see Measures and Projects).

In order to reduce the environmental and climate impacts of its business model and to promote the circular economy, the REWE Group implements numerous measures for the sales and service packaging of its private labels.

Principles

In its Guideline on Sustainable Business Practices, the REWE Group commits itself to the efficient use of natural resources, such as soil, air, and water, as well as raw materials and fuels. The REWE Group optimises the relevant use of resources in its business processes and implements product or raw material-related measures in the upstream and downstream stages of the value chain. 

In order to make sales and service packaging more eco-friendly, the REWE Group has created a Guideline on More Eco-Friendly Packaging. It applies to the REWE Group's private labels sold at REWE, PENNY and toom Baumarkt DIY stores in Germany, defines clear goals (see also section Objectives) and provides a binding framework for the REWE Group and its contractual partners. The guideline describes which factors have fundamentally positive ("do’s") and negative ("dont’s") effects on the eco-friendliness of packaging. 

In order to make sales and service packaging more environmentally friendly, the REWE Group has created a Guideline on More Eco-Friendly Packaging.

In addition, the REWE Group published the Guideline on Circular Economy in 2021. It applies to the REWE Group's private labels, which are sold in Germany at REWE, PENNY and toom Baumarkt DIY stores, and provides the basis for gradually anchoring circular economy in the products' value chain. Circular economy is a key approach to conserving resources and protecting the environment and climate (for more information see section Circular Economy). 

Strategic Approach

Since packaging consumes a considerable amount of resources, the trade group has developed a comprehensive approach to more eco-friendly packaging. In the process, the REWE Group worked closely with key stakeholders – from purchasing departments and selected NGOs to experts in packaging design. 

To develop its strategy, the company followed the Approach for More Sustainable Supply Chains and thus a four-step process: At first, a data analysis was conducted. Based on this, major impacts and promising parameters were identified. Subsequently, the action plan was fleshed out by objectives and measures. Finally, the effectiveness of this approach will be examined, evaluated and constantly further developed as part of a stakeholder review process. 

The following six criteria are used as parameters to lower the negative environmental impacts of packaging: 

  • Use of reusable alternatives
  • Reduction of packaging material
  • Promotion of recyclability
  • Use of secondary raw materials
  • Use of alternative materials (if their life cycle assessment results are superior to the previously used material)
  • Use of certified raw materials 

By applying these criteria, packaging is to be improved in terms of its ecological impact. Life cycle assessments are used as a helpful instrument for the evaluation of the eco-friendliness of packaging, for example when changing materials. 

Every optimisation of packaging or a packaging component in accordance with the criteria generally has a positive environmental effect and contributes to the REWE Group's goals for the private labels at REWE and PENNY in Germany as well as toom Baumarkt DIY stores. Packaging should always be optimised or reduced to the greatest possible extent. Packaging is constantly checked and improved on the basis of the current state of research and current developments.  

Targets and KPI

In order to make progress measurable, the REWE Group has defined the following key performance indicator (KPI) with associated targets for the packaging area, which does not refer to a specific reference year, but to the status quo of each individual private label packaging. The status quo is measured for REWE and PENNY in Germany using criteria that the REWE Group has defined for more eco-friendly packaging (see section Implementation). 

Target Status
100 per cent more eco-friendly packaging for our private label products by the end of 2030
Implementation in progress
Target achieved
Not available
Target not achieved

Scope: This target applies to the REWE GROUP in Germany (REWE, PENNY, toom Baumarkt DIY stores) and since 2019 also to the international sales lines (BILLA, BILLA PLUS, PENNY and ADEG). The Sustainability Merchandise unit is responsible for surveying the degree of target achievement for REWE and PENNY in Germany.

In order to achieve the target of 100 per cent more eco-friendly private label packaging by the end of 2030, the REWE Group has set the following sub-targets in the area of packaging for the private labels of REWE and PENNY in Germany, which are also subject to continuous progress reviews. The first two targets were added in the reporting year. In the reporting year, there was a slight decline in the achievement of the target of switching to 100 per cent recycled material for all private label packaging for detergents and cleaners by 2021. 

Due to the lack of data transparency, it is not yet possible to make a quantitative statement on the achievement of these two targets, nor on the achievement of the targets for paper packaging and recyclable plastic packaging. 

Targets 2020 2021 2022 Status
30 per cent recyclate content on average in private label packaging by the end of 2025 - - -
Doubling the range of products offered in “Mehrweg & Unverpackt” (multiple use and unpacked) by the end of 2025 compared with 2021 - - -
100 per cent of PET private label packaging for detergents and cleaners from 100 per cent recyclate by the end of 20211+3 - 95 % 89 %
50 per cent recyclate content on average in PET single-use bottles for private labels in Germany by the end of 20232+3 - 38 % 47 %
20 per cent less plastic in private label packaging by the end of 2025 compared with 2015 - -22 % -29 %
100 per cent recyclable plastic packaging for our private label products by the end of 2025 - - -
100 per cent certified private label paper packaging by the end of 2020 - - -
Implementation in progress
Target achieved
Not available
Target not achieved

Scope: Private label products at REWE and PENNY in Germany

1Where possible, at least 20 per cent recyclate from recycling bags.

2This is an adjusted target in the 2021 reporting year. It became apparent that the REWE Group would reach its previous target of a 25 per cent recyclate content as early as 2021.

3This target also applies to toom Baumarkt DIY stores in Germany, but is not included in the data collection.

On the way to achieving its goals, the REWE Group in Germany has realised that current market-relevant reusable solutions are often only partially compatible with the systems and processes of retailers and that there is a potential for optimisation here. Therefore, the company is involved in the development of an industry standard as part of the GS1 international standards development network (for more information see also Measures and Projects). 

Another challenge is the optimisation of packaging, especially with regard to full recyclability. The REWE Group has created additional capacity in the area of sustainable goods in order to meet the high level of expertise and technical capabilities required.  

To promote the availability of suitable recyclates for packaging and products, the REWE Group is developing approaches and partnerships for material cycles with the company's own recyclables (for more information see Circular Economy). 

Responsibility and Resources

The implementation of strategies and measures regarding packaging is the responsibility of dedicated teams and departments in the respective sales lines. For more information, please refer to Management Approach Green Products

With regard to the individual product, purchasing and Category Management are responsible for ensuring that packaging targets are implemented as part of the regular business.  

Implementation

The approach to more eco-friendly packaging is systematically integrated into purchasing processes across all private label product ranges sold at REWE, PENNY and toom Baumarkt DIY stores in Germany. To promote the transfer of knowledge within the company, a working group on the topic of packaging has been permanently installed.  

The implementation of this approach relies on three successive levels:  

  • Requirements for more eco-friendly packaging are defined. For the evaluation of packaging and packaging alternatives, the REWE Group has developed tools that allow the eco-friendliness of packaging to be classified on the basis of these requirements (see section Strategic Approach, paragraph Promising Parameters).
  • In addition to this, supplier discussions also form the basis for further elaboration of potentials to improve the eco-friendliness of packaging. Suppliers are also required to implement and adhere to the strategy at different points, depending on product group: For example, suppliers must actively take note of the dos and don’ts of the guideline in the listing process, sub-goals are set down in writing in the framework agreement and guidelines are communicated to suppliers via the Supplier Portal.
  • In addition, innovation projects lead to the development of new packaging concepts, for example by working with supply chain partners and start-ups or through involvement in research projects and industry initiatives. The projects may, e.g., focus on the use of alternative raw materials or on the prevention of packaging by using innovative technologies. 

Principles and criteria for more eco-friendly packaging were defined. “More eco-friendly packaging” is packaging that has the lowest possible impact on the environment. The aim is to avoid packaging, reduce it or diminish its impact on the environment or improve it with regard to its environmental impacts, wherever possible. These principles are to be applied in this order of priority – the ecologically best packaging is the one that can be completely avoided.  

Due to these principles, unpacked goods and reusable packaging have highest priority.  

The ecologically best packaging is the one that can be avoided completely.

Products with more eco-friendly packaging at REWE and PENNY in Germany, as well as toom Baumarkt DIY Stores are marked with three corresponding labels for transparency. With the labels on more and more products, consumers can see at a glance which measures have already been implemented to optimise packaging, whether this is reduced use of materials, use of secondary raw materials or use of alternative materials. 

Involvement of Stakeholders

The topic of more eco-friendly packaging was rated as particularly relevant by stakeholders in the Materiality Analysis last updated in 2020.They are currently informed annually via the Sustainability Report about the measures taken and their effectiveness. The dialogue with stakeholders on the subject of packaging is promoted via various dialogue formats, such as the Dialogue Forum 2022 and the German Sustainability Award's Special Prize for Packaging, whose focus during the reporting year was on high recyclability, a low CO2 footprint and a long service life (for more information see also Stakeholder Dialogue and Measures and Projects). This exchange allows stakeholders to provide important input on the issue. Furthermore, the stakeholders are involved in the review process of the strategic approach (see Implementation). 

Consumers, as well as other stakeholders can submit their complaints or comments on this topic. For this purpose, reporting and grievance mechanisms have been established. For more information, please refer to the section Compliance.
Complaints relating to packaging are forwarded to the corresponding specialist departments such as purchasing and category management. 

Measures and Projects

A variety of measures to make packaging more eco-friendly and to optimise use of resources are implemented to prevent or reduce potential negative impacts (see section Effect) and/or to make optimum use of actual and potential positive impacts and to find a remedy and/or help in the case of actual negative impacts. Exemplary measures and activities for the reporting year are listed below, e.g. according to the three principles for more eco-friendly packaging:  

Commitment to Promoting More Eco-Friendly Packaging

Initiatives and partnerships Highlight

The REWE Group is involved in initiatives and foundations to promote more eco-friendly packaging.

  • National German Sustainability Award Foundation (Stiftung Deutscher Nachhaltigkeitspreis e. V.): In December 2022, the company, together with the Foundation, awarded the Special Prize for Packaging of the German Sustainability Award for the fourth time. The competition was centred around concepts and ideas for packaging solutions with high recyclability, a low CO2 footprint and a long service life. The winner was the family-owned company Saier Verpackungstechnik with its product S-Liner Peel – a container for semi-liquid building materials such as paint. It is made of recyclable material and is also covered with a thin, peelable inner film (peel film). This film can be peeled off after use, therefore ensuring full raw material quality without product residue when the container is recycled.
  • GS1: The “GS1 Germany Application Recommendation for Reusable Packaging at the Point of Sale” was published in July 2022: The REWE Group actively participated in this process. The recommendations contain standardised requirements for reusable packaging with regard to essential parameters of reusable containers and their labels. Pursuant to § 33 of the German Packaging Act, the last distributor of disposable packaging must offer consumers a reusable alternative from 1 January 2023. The acceptance of reusable solutions by consumers and the positive environmental impact depend to a large extent on user-friendliness and degree of circulation. Standardisations, as defined in the Application Recommendation, are an important prerequisite for targeted scaling of reusable systems.
  • Recyclat Initiative” (Recyclate-Initiative): The REWE Group is a member of this cooperation of partners from different industries who are strongly committed to effective recycling in line with the principle of the circular economy. Their common goal is the development of sustainable material cycles using recyclable material collected in recycling bags. The use of raw materials from recycling bags is possible thanks to special laser-based optical sorting technology.
  • NABU: The joint project was extended to include, among others, the issue of packaging as part of the partnership with German Nature And Biodiversity Conservation Union (Naturschutzbund Deutschland e. V.) (see also Initiatives and Memberships).
  • Holy Grail 2.0: Effective recycling is key to ensuring that packaging materials can be reused after disposal. And for recycling to work, packaging waste must be separated by type. To support this process, the REWE Group has been a founding member of “Holy Grail 2.0” since 2020. The initiative aims to improve sorting through a digital watermark on packaging. The codes cannot be seen with the naked eye and are applied to the entire packaging. They are visible to a high-resolution camera at the waste sorting facility and the packaging can be automatically sorted according to the respective data. This results in improved sorting streams and therefore higher quality recyclates.
  • Consumer Goods Forum: The global industry network aims to help retailers and consumer goods manufacturers work with other key stakeholders to ensure consumer confidence and drive positive change through “Better Lives through Better Business”. The REWE Group is involved in the Board of Directors and works actively in a working group on the subject of plastics.
  • Consumer Insight Action Panel – “Club for Sustainable Packaging Solutions”: The club was founded in 2019 as part of the EU-wide project “Consumer Insight Action Panel” by the Collaborating Centre for Sustainable Consumption and Production (CSCP) together with other stakeholders. In addition to the REWE Group, stakeholders from retail, industry, system catering, packaging, collection and recycling as well as non-governmental organisations (NGOs) and research institutes were involved. The aim was to accelerate the transition to a circular economy in the field of packaging with focus on consumer behaviour. The club was dissolved in 2022.
  • Initiative “Raus aus Plastik” (Out with plastic): The REWE Group in Austria is working to reduce the amount of plastic on the shelves BILLA, BILLA PLUS, PENNY and ADEG (see also Measures and Projects).
  • Cooperation with suppliers and partners at toom Baumarkt DIY stores: In joint cooperations, the sales line has developed packaging that is almost 100 per cent made from recycled plastic. The sales line implements successful projects, especially in the area of paint containers and packaging for potting soil.

Avoiding Packaging

Unpackaged fruit and vegetables

The sales lines REWE and PENNY in Germany have already been offering various different unpackaged fruit and vegetable products for a long time. For example, since April 2020, REWE in Germany has been selling organic fruit and organic vegetables largely without packaging or with improved packaging across Germany. As a result, 210 tonnes of plastic and 80 tonnes of paper were saved in the organic fruit and organic vegetables area during the year of the rollout compared to 2019. These figures will continue to rise in line with the increasing sales in this range.

Furthermore, in 2018, REWE in Germany became the first major food retailer in Germany to introduce reusable net bags nationwide. PENNY followed in 2019. In Austria too, the REWE Group has been offering reusable net bags since 2018 – at the time, it was also the first retailer to do so.

Since the end of 2019, REWE Group in Austria has continuously converted its entire organic fruit and vegetable range to unpackaged and loose or to more eco-friendly packaging. During the reporting period, at the sales lines BILLA, BILLA PLUS, PENNY and ADEG, almost all “Ja! Natürlich” pasta products were converted to PEFC-certified paper packaging and “Ja! Natürlich” tea was switched to grass paper teabags. Since 2021, “Ja! Natürlich” has also stopped using single-use lids for numerous milk and dairy products, such as yoghurt, therefore saving plastic and CO2.

Reusable systems Highlight

In 2020, the REWE sales line became the first food retailer in Germany to test a free reusable system for the salad bar in five pilot stores in Cologne with the start-up VYTAL. This allowed the company to get a picture of customer acceptance in view of the legal requirement from January 2023. A reusable solution was rolled out nationwide at the beginning of 2023.The introduction of a national open reusable system has replaced the pilot test with VYTAL.

Lekkerland has been a cooperation partner of RECUP since the end of 2020.The sales line therefore offers a reusable alternative with deposit system for to-go coffee cups at participating points of sale. Lekkerland is also taking part in the new reusable system that was implemented in 2023.

Other reusable systems at the REWE Group, such as buckets for cut flowers in PENNY stores in Germany or reusable pallets for transporting plants at toom Baumarkt DIY stores, which are particularly effective at operational level and that lead to a reduction in materials and waste, can be found under Waste.

Discontinuation of single-use plastic bottles and plastic bags

At the end of 2017, Go Vacation, the destination agency DER Touristik, was already providing all tour guests with water bottles that can be refilled at any tour hotels of DER Touristik tour operators Dertour, Jahn Reisen, ITS, Meiers Weltreisen, ADAC Reisen, Travelix and Kuoni. They have since completely done away with disposable plastic bottles. Guests on Bali are also provided with cloth bags eliminating the need for plastic carrier bags. The water bottles and cloth bags are produced locally. The campaign was extended to Vietnam and Sri Lanka in 2019 and to Thailand (for all SIC tour guests and DER private tour guests), Vietnam and Indonesia during the reporting period.

Reducing Material

Reducing the use of plastics

Since 2020, the sales line REWE in Germany has been selling minced beef from Wilhelm Brandenburg in “tubular bags”. In the year of its introduction, this controlled atmosphere packaging saved around 60 per cent of plastic in comparison to the previous year, corresponding to around 35 tonnes per year.

Reductions in the use of film for selected private label products from REWE and PENNY in Germany, such as breakfast bags and rubbish bags and in packaging of kitchen towel and toilet paper, have led to a significant reduction in the amount of plastic in the past. The REWE Group is also working on reducing materials in Austria: The sales line BIPA has been offering selected products from the bi good brand in refill bags since 2020 (see also Focus Raw Materials - Non-Food and Services). This measure reduced packaging materials by up to 75 per cent in comparison to 2019.

Discontinuation of packaging components or use of alternatives

Both REWE and PENNY in Germany have gradually discontinued additional plastic lids for yoghurt, soy yoghurt and Skyr private labels in 500 gram pots since summer 2020. Plastic lids were also discontinued for various curd cheese products. As a result of this measure, both sales lines saved around 185,000 kilograms of plastic during the reporting year. They also offer food-safe reusable lids for 500 gram pots of yogurt / soy yoghurt and Skyr private label products, allowing customers to conveniently and hygienically reseal the yoghurt pot once opened. In 2021, these reusable lids were also introduced at PENNY in Austria, BILLA, BILLA PLUS and ADEG. This can save around 50,000 kilograms of plastic per year.

Improving Packaging

Promoting cycles: Switch to recycled materials

The REWE Group uses recyclates in a wide range of packaging. For example, many private label drinks bottles are already produced with a significant recycled PET content (rPET). At the beginning of 2019, REWE and PENNY in Germany were the first food retailers to introduce drinks bottles made entirely from recycled plastic – for example, the 0.75 litre water bottle (still) with sports cap from the private labels PENNY Ready and REWE Beste Wahl. All convenience beverage bottles from the private labels at REWE and PENNY in Germany have been made of 100 per cent rPET since the end of 2021. In the area of the REWE Bio private label at REWE in Germany, the proportion of recyclate in the beverage bottles is at least 50 per cent. New listings in 100 per cent rPET have been directly implemented since 2022.

REWE and PENNY in Germany have gradually been making packaging in the drugstore product group more eco-friendly since 2017 by using recyclates. In the "laundry and home care" product group, many products have since been converted to 100 per cent rPET, of which 20 per cent is recyclate. There were some setbacks in this product group during the reporting year due to a change in supplier. In addition, since 2019, both sales lines have offered shower gel and soap of the private label "today" in packaging made of 100 per cent recyclate. Here too, 20 per cent of the material comes from recycling bags.

At Lekkerland, the bottles for the private label Santa Emilia and those of GoFresh juices, smoothies and shots are each made of 100 and 75 per cent rPET, respectively.

In cooperation with suppliers and partners, toom Baumarkt DIY store has developed packaging that is almost 100 per cent made from recycled plastic. Since 2011, for example, private label paints have been offered in recycled plastic containers (Procyclen®) – in 2022, the range comprised 103 products (2021: 111). In comparison to packaging made of primary material, the CO2 emissions of containers made of recycled materials are reduced by 50 per cent. Since the introduction, the sales line has saved over 1,000 tonnes of CO2. In 2022, the saving was 176 tonnes. Since 2015, the sales line has also included paint trays, as well as containers and storage boxes made of recycled plastic and is continuously expanding its range of products with recyclate content.

In 2021, for example, the first private label products in the potting soil area were switched to optimised packaging: The improved packaging is made of recyclable film containing at least 80 per cent post-consumer-recycling material (PCR). The range of potting soil using this packaging is intended to be gradually expanded; in the reporting year, it was used as packaging for 20 products from areas such as potting soil, bark or bark mould. In addition, since July 2020, toom has required its plant suppliers to only use recyclable culture pots made of at least 50 per cent PCR. Their proportion has therefore increased from 70 to 90 per cent since the beginning of 2021.