The Midcounties Co-operative saved £280,000 in landfill costs through recycling waste.
Its food stores have achieved 90% of recycling rate and are diverting 4,000 tonnes of waste a year.
It claims more than 200 stores have also increased recycling.
The company has partnered with waste and recycling firm Biffa to convert all food waste into green energy.
Mike Pickering, Sustainability Manager at The Midcounties Co-operative said: “We’re committed to creating sustainable communities and are constantly looking for more ways to reduce our carbon footprint.”