In keeping with its environmental, social and governance (ESG) agenda, food and financial services company GraceKennedy (GK) recently launched a new energy policy which sees the 100-year-old entity transitioning several operations across its business to solar energy.

Group Chief Executive Officer Don Wehby, speaking at a recent investor briefing, said that energy reduction and cost was a big area of focus for the company as it seeks to incorporate more solar going forward.

“We have invested US$3 million to implement solar systems, as the numbers I’m seeing for savings so far at our factories, Hi-Lo and other companies, is significant and we are going to try every way and in a sustainable manner to drive down our energy cost. That is the only way we can remain globally competitive. We have done our [research] and solar seems to be the best option for us at this time,” he said.

In a news release on Thursday, the company said that its new Hi-Lo Food Stores location in Negril, Westmoreland, and the Grace Agro-Processors (GAP) Plant in Denbigh, Clarendon, were the latest facilities in the GK Group to “go solar”.

They join a list of other GK subsidiaries including Dairy Industries Jamaica Limited and NALCAN, GK’s Distribution Centre in Spanish Town, and GFP Meats in Savanna-la-mar, Westmoreland, in implementing on-site solar power generation. GFP Meats also recently commenced an energy project expansion, where liquefied natural gas (LNG) will be added to its current energy mix. The company’s new headquarters in downtown Kingston is also solar powered — currently driving 30 per cent of the building’s daily energy needs.

“Both locations have installed solar power grid-tied systems with a combined generating capacity of 925 kWh per day, and which are projected to meet approximately 50 per cent to 60 per cent of the energy needs at the new Hi-Lo location, and up to 50 per cent of the energy needs at GAP Denbigh,” the release stated.

Solar grid-tied systems use solar panels and inverters for power generation. They do not require batteries to store power for night-time use and are connected to the electrical power grid.

According to Frank James, CEO of GK Foods, the pivot towards solar energy is embedded in the company’s new energy policy that was launched in May this year, which aims to diversify the group’s energy supply through sustainable energy solutions including renewables.

“Full implementation of the policy is projected to recover approximately US$1 million in energy cost reductions annually for GK by 2026. This move also aligns with GK’s ESG agenda which was launched earlier this year, and among other things, charges us with being responsible stewards of our environment,” he explained.

For Cathrine Kennedy, general manager of Hi-Lo Food Stores, the new Negril store, which opened on October 15, represents the Hi-Lo of the future — stores that will ensure the incorporation of solar energy going forward.

Carl Barnett, senior general manager of manufacturing at Grace Foods, who is also leading the implementation of GK’s new energy policy across the group, said that following the solar installation at the Gap Denbigh plant, the company is expecting to generate payback within four years.

“We determined that the grid-tied system would be the most suitable for our needs, as approximately 68 of the plant’s power usage occurs in the day,” he said.

GK said that its new energy policy will also support green building practices, incorporating energy saving approaches in all design and construction phases.

“Energy efficiency assessments are now required for all GK capital expenditure projects going forward. The policy also calls for equipment upgrades, and the installation of energy management systems across GK’s businesses, to closely monitor energy consumption,” the company noted.

“With the introduction of our new energy policy, we are demonstrating our commitment to the development of a sustainable energy strategy with a focus on exploiting indigenous renewable sources, all while reducing the group’s carbon footprint,” James added

Wehby serious about the company’s commitment to ESG principles at the investor briefing also cited it as a “must have for companies” going into the future.

“We have committed that we will be moving this forward at a pretty rapid pace, in fact, if we have any thoughts of listing on an overseas exchange [which is an objective of the group’s 2030 vision], we can’t even think about it without a proper ESG. Some financiers won even talk to you if you don’t have a proper ESG policy, so that is going to be a major focus for us,” he said.