Project - First report on the overall impact on economic, natural and social capital in Bulgaria

Company

Kaufland Bulgaria

Category

Investor in Community

Project description

Project Aim

Kaufland is a leader in the retail sector in Bulgaria. But leading companies have long been expected not only to create economic added value and to report financial indicators. Societies demand transparency and data on how the business affects the environment as a whole. That is why Kaufland commissioned ©denkstatt Bulgaria to prepare a report on its overall impact on economic, natural and social capital. The report is the first one for the comprehensive impact in the retail sector in our country. Through such an assessment, companies are given the opportunity to manage their activities so as to create the greatest possible added value - one that maximizes economic added value and minimizes the negative consequences for the environment and people.

Project Target Group

The report is intended primarily for partners and suppliers of the company, institutions, industry and employers' organizations, non-governmental organizations, and the results are communicated to the general public through the company's own channels.

Project Duration

The document is based on data on the activities of Kaufland Bulgaria in 2019 and reflects the economic, natural and social impact of the company during this period.

Project Activities

The assessment of the net impact is made through the use of an innovative approach - the so-called sustainability accounting, which allows for the integration of impacts on natural and social capital in the financial statements of companies. This is the latest concept for sustainability assessment ona global scale, which takes into account both positives and negatives of the activity and gives a financial value of the environmental and social impacts. The report shows in concrete terms what is the added value of Kaufland for the Bulgarian economy, while at the same time measures the negative consequences for the natural and social capital. So far, no other Bulgarian company has done so publicly. Every business activity has both a positive and a negative impact on the environment and the social environment, but often these impacts remain outside the financial statements and operational control because they cannot be compared and in this sense are "invisible" to the business. The report turns the costs and benefits for nature and society from abstract concepts into information with a clear monetary value that companies can analyze and manage.

Project Results

Through such a comprehensive impact assessment, Kaufland has been able to manage its activities in such a way as to create the greatest possible added value in society - one that maximizes economic added value and minimizes the negative consequences for the environment and people. In a broader context, the assessment is changing the environment in Bulgaria, as it sets a precedent that we hope will provoke other companies to take the step towards reporting their net impact. On the one hand, this will prepare the Bulgarian business for the increased expectations of investors, financial institutions and clients. On the other hand, it will increase the general feeling of openness and trust between the business and the consumers.