Today, the Minister of Environment and Climate Change, Catherine McKenna, announced funding from the Low Carbon Economy Challenge’s Champions stream to Loblaw. The Government is investing up to $12 million, subject to a funding agreement, to help the company convert the refrigeration systems in approximately 370 stores across Canada over the next three years. This project will help reduce Loblaw’s annual emissions by approximately 23 per cent. By leveraging up to $36 million in investments made by Loblaw, the Government is working together with Canadian business to support ingenuity and grow Canada’s clean economy.
The funding comes from the Government of Canada’s Low Carbon Economy Fund—an important part of Canada’s climate plan. The Fund invests in projects that reduce carbon pollution, save money, and create good jobs in a clean economy.
Canada’s climate plan puts Canada on track for the biggest reduction in carbon emissions in our country’s history. The plan includes over 50 measures including investing in clean energy and phasing out coal power, building public transit, and introducing a price on carbon pollution so that it is no longer free to pollute.
In other news, Loblaw Companies released its financial results in February of 2019, reporting on the fourth quarter of 2018. Retail segment sales for the quarter increased by $181 million or 1.7 per cent compared to the fourth quarter of 2017.
Adjusted profit in retail grew 2.6 per cent to $3.25 billion. Same-store food retail sales grew 0.8 per cent while same store drug retail sales grew 1.9 per cent (pharmacy and front of store sales by 0.6 and 2.8 per cent respectively).
Revenue for the quarter was $11.218 billion, an increase of $226 million or 2.1 per cent compared with the fourth quarter of 2017. The company earned $1.07 per share, ahead of analyst expectations.
Quarterly results were negatively impacted by minimum wage increases and health care reform, the company said.
Question to the SPN readership:
Should low carbon initiatives undertaken by financially successful corporations be supported by the government? It could be argued that if not, it will be a cost born by the consumer anyway. Is the incentive worth it? Or, should corporations be stepping up on their own simply “because it’s the right thing to do”?
We welcome your feedback!