Prof. Dimitar Dimitrov: Kaufland is a Huge Business Beyond Economic Activity
Over 1.63 billion is the added value of Kaufland for the Bulgarian economy. The data come from a report on the net impact of Kaufland on the country's natural, social and economic capital. Kaufland directly creates almost 25% more value for society than for the company itself. The analysis shows that one workplace supports more than 5 other ones in the Bulgarian economy. Kaufland Bulgaria's direct emissions have decreased by 45% in 2019.
The second report on the assessment of the net impact of the company's activities on the natural, social and economic capital in Bulgaria was presented at an event attended also by the Rector of UNWE Prof. Dr. Dimitar Dimitrov together with the CEO of Kaufland Bulgaria Ivan Chernev, the Head of the Economic Section of the German Embassy in Bulgaria Moritz Seiler, the economic analyst Kuzman Iliev and Boyan Rashev, Managing Partner of denkstatt Bulgaria - the consulting company prepared the document.
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"This paper reports on a range of indicators and shows the many aspects of this huge company's impact beyond the economic activity. Our joint project Kaufland Business Academy is an example of the added value for the education and especially for the UNWE students who by participating in it have the opportunity to experience a real business environment, do internships in the company and even find their first job", commented in the discussion after the presentation of the report Prof. Dimitar Dimitrov.
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"Kaufland is an example of a company that continuously invests and increases the value of its core business. From expanding and opening new shops and new jobs to introducing green innovations such as the separate collection system for packaging and the use of 100% green electricity", said Moritz Sailer.
"As a market leader, we set the trends in retail and it is our responsibility to be transparent. We do this with the clear thought that you can only make your processes as efficient as possible and look for solutions to reduce negative impacts if you know your impacts in detail. For us, it is an open approach that allows for a true and objective assessment without one-sided commentary on benefits. I believe that by setting a good example, we will encourage other responsible companies in the country to follow us, who, like us, see it as their duty to add value to everything they do", said Ivan Chernev at the public presentation of the report.
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The economist Kuzman Iliev commented on the complex economic and geopolitical situation around the world and against this background, described the efforts of businesses to add value to their economic activities as an extraordinary challenge in the rapidly changing environment. "Turning to Bulgarian agriculture shortens supply chains and having a solution for them and including them in the ecosystem is extremely right and one of the essential elements in this report", added Iliev.
Boyan Rashev highlighted Kaufland's open attitude in publishing such a report. "Kaufland is the only Bulgarian company that is brave enough to speak out about its negative impacts. For a company to address its positive impacts, but also its negative impacts, it needs to measure them. Kaufland is does it once again and its behaviour deserves admirations", said Rashev.
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The report examines the overall (net) impact of Kaufland's activities in Bulgaria, i.e. it tracks both the positive and negative impacts of the activities of the largest retailer. The scope of the study includes both the direct impact of the retailer, the impact of retailers housed under the roofs of Kaufland hypermarkets /the so-called concessionaires/, the indirect impact of suppliers, the additional impact of the company's suppliers' suppliers, and the induced impact of wage expenditures on Kaufland employees and on all suppliers and manufacturers in the supply chain.
The document is developed basing on the sustainability accounting approach and follows two main guidance documents - the Natural Capital Protocol and the Social Capital Protocol which provide a common international framework for designing projects that take a holistic view of the impacts of the companies on the economic, natural and social capital. These impacts are assessed using the EXIOBASE database.
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About Kaufland Bulgaria
Kaufland Bulgaria is a leading company in the retail sector with an annual turnover of almost BGN 1.9 billion and one of the largest employers in the country with a team of almost 7,000 employees. In 2023, the company has 64 hypermarkets in 35 cities. Since its start in Bulgaria in 2006, Kaufland has strived to stimulate the national and regional economy and local infrastructure with a total investment of BGN 1.9 billion. The company continuously develops its sustainability policy and it is committed to various social and ecological areas under the motto Action Brings Change - from the use of energy-efficient technologies and the planning of new buildings with care to the nature to supporting disadvantaged groups and reducing plastic.
