Supermarket Chains Say They’ll Use Proceeds from Plastic Bags on Social or Environmental Causes

You’re probably already aware that from 3 July 2023, there will be a mandatory charge for plastic bags at major supermarkets in Singapore.

What do supermarket operators have to say?

Here’s what you need to know. 

Proceeds to go to Social and Environment Causes

According to Channel News Asia (CNA), NTUC FairPrice, Prime Supermarket, Sheng Siong and DFI Retail Group (which oversees Cold Storage and Giant) outlets will charge the minimum mandatory amount per plastic bag from 3 July.

Thus, you can expect to pay $0.05 for disposable carriers at these supermarkets.

Under the charge, supermarket operators must be transparent about how the bag charge proceeds are used.

They will be required to publish information on the number of bags issued and the amount of proceeds received from the bag charge as well.

The supermarkets have confirmed that proceeds from the bag charge would go to social and environmental causes.

However, specific details have yet to be confirmed.

In addition, supermarket operators with an annual turnover of over $100 million must charge at least $0.05 for each disposable carrier.

Yes, this includes disposable carriers made of other materials that aren’t plastic.

However, the charge won’t apply to non-carrier bags like flat-top plastic bags used for fresh produce, meat or seafood.

Next Steps to Improve Sustainability

Currently, Sheng Siong’s 68 outlets don’t charge for plastic bags.

With the upcoming charge, the supermarket operator has other ideas on how to improve sustainability.

A Sheng Siong spokesperson told CNA that the supermarket was collaborating with environmental group Zero Waste SG on a campaign to encourage customers to use recyclable bags to shop for groceries instead.

The campaign is set to last for three months.

The group’s most recent roadshow was held at the Sheng Siong outlet in Serangoon North Avenue from 4 March to 6 March.

Though Prime Supermarket’s 24 outlets don’t charge for plastic bags at the moment, it is dedicated to creating a greener Singapore.

A spokesperson said, “We definitely will work on it to educate consumers on the importance of [a] greener environment.”

The supermarket is looking to bring in reusable bags for its customers.

DFI Retail Group noted that Cold Storage and Giant already offer a range of reusable bags for customers’ use.

However, it plans to diversify the range of reusable bags offered to encourage more customers to switch to reusable bags.

NTUC FairPrice, the largest supermarket chain in Singapore with 230 outlets, first implemented a charge on plastic bags in September 2019.

The initiative was implemented across all 178 Cheers and FairPrice Xpress convenience stores and 11 FairPrice supermarkets.

According to CNA, the retailer saved more than 57 million plastic bags last year from its “No Plastic Bag” initiative.

Notably, the current bag charge proceeds go toward supporting green initiatives, including a $180,000 contribution to the OneMillionTrees movement under National Parks Board.

Besides funding nature and conservation outreach programmes, the contribution is set to support planting 600 trees. 

The spokesperson told CNA, “Over the coming months, we hope to work in partnership with the relevant government agencies to continually remind shoppers that there will be a mandated charge for disposable plastic bags in supermarkets.”

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Other Companies that Charge for Disposable Carriers

Since 2019, fashion retailers Cotton On and H&M have been charging $0.10 per plastic or paper bag.

H&M’s decision to charge for disposable carriers came in tandem with World Wide Fund for Nature (WWF)’s Plastic ACTion (PACT) initiative.

PACT aims to eliminate plastic pollution by 2030 and help Singapore gear towards a circular economy.

H&M was also the first fashion retailer to sign the PACT.

Cotton On’s decision to charge for disposable carriers came as a part of a bigger initiative called ‘The Good’.

Besides committing to going carbon neutral, the retailer has also committed to phasing out unnecessary single-use plastic packaging by 2025.

Cotton On wrote on its website, “Making a positive difference? It’s what we’re all about. And when we’re talking sustainability, we’ve made some big impacts so far that we’re really proud of.”

“But we know there’s more to be done. And, we’re taking action. ‘Cos we know our future depends on it.”