Today, companies need to prove that their commitments are credible, and this requires an integrated customer and ESG approach. KPMG’s Me, my life, my wallet research focused specifically on sustainability issues, and its segmentation model provides guidance for companies on how to target specific consumer groups.

According to KPMG’s research it is clear that the number of value-centred consumers is on the rise. 87 percent of the survey participants believe that companies have a responsibility to produce sustainable products. 86 percent of the respondents are concerned about the environment, and 64 percent want to know the environmental impact of a product or service that they buy.

59 percent of the people asked are also taking steps towards sustainability. However, the extent to which people internalise these values varies; it depends to a great extent on their emotional orientation, personal convictions, goals and other circumstances, such as financial means.

KPMG categorised consumers into six groups based on how much they care about sustainability values, and how this is reflected in their behaviour. These groups are: the moderates (26%), the pragmatists (21%), the realists (17%), the price-sensitive (9%), the activists (17%) and the collectivists (11%).

The characteristics of each segment are described in detail in the KPMG study, and it also explains how the model helps design marketing programmes targeting the various segments to reach their customers more effectively.

More on the topic in Hungarian: Hogyan szolgáljuk ki a fenntarthatóság iránt elkötelezett fogyasztót? – KPMG Blog (How to serve sustainability-conscious customers? – KPMG Blog)

The research shows that the biggest obstacles to engaging consumers in sustainability programmes are costs and a lack of understanding or knowledge – individuals are not aware of how to achieve change.

“Conclusion: consumers clearly expect businesses not just to participate but to play a leading role in the transformation. Environmental, social and governance (ESG) considerations must be incorporated into operations, but traditional marketing tools can also be used to ensure these are properly reflected in all phases of the customer experience” – explains Erika Halász, director at KPMG. “This requires an assessment of the current status, creating a framework for measuring sustainability, rethinking product lifecycle and customer paths in an ESG-centric way, understanding the needs of the different customer segments, then involving and educating consumers to achieve the goals. The process is unlikely to be a fast one, and may even require redefining the organisation, but in the long run it is destined to generate value.”

How can a digital, data-driven decision support solution contribute to optimizing a city’s operations? Can public transport be greener? How can the emissions of a fleet of vehicles be reduced? How can the energy consumption of public institutions be rationalized?

The latest initiative of the National Mobile Payment Plc., currently in its pilot phase, offers the City of Szolnok County Municipality answers to these questions.

It can be concluded that the city management processes, the development of new services, and the continuous optimization of existing services can only be effectively implemented if the data generated in the relevant areas are collected, processed and transformed into the information needed to support decisions.

The innovation cooperation between the City of Szolnok and the National Mobile Payment Plc. seeks to find answers to how we can ensure the sustainability of our cities. The results of the project so far demonstrate that making data-driven decisions that improve the city’s competitiveness can be an important pillar of creating a liveable future. We need to develop processes and models to support city management and sustainability, based on the data generated in the city.

SPAR saves a significant amount of plastic film each year by using reusable rolling racket plastic blankets in its logistics processes to cover some its deliveries to the stores.

By the end of December 2022, SPAR has started to use more than 35 000 pieces of roll blankets. In the logistics chain, products are transported from the warehouses to the stores, first placed on rolling racks and trolleys and then secured onto these. The latter process used to be done with foil, but from now roll blankets are used wherever possible. From the warehouse, the blanket-covered trolleys are transported to the stores on lorries, and the empty trolleys and collected blankets are returned to the warehouse to be used again for the next delivery.

“One of the cornerstones of our business philosophy is to operate in an environmentally responsible way, which is why we pay particular attention to minimising negative environmental impacts. The use of roll blankets also supports the corporate group’s objectives to significantly reduce waste generation by 2030 through prevention, reduction, recycling and reuse.  In terms of the separation of secondary raw materials – paper, plastics – generated and sold in our stores, the recycling rate has increased from the initial 46 percent to more than 70 percent in our shops. Of course, the best packaging waste is the one never produced in the first place. In the case of the roll blankets that is exactly what we are doing: we are replacing a significant amount of plastic film with an environmentally-friendly solution,” explained Márk Maczelka, head of communications at SPAR Hungary.

SPAR calculates that it will save at least 59 tonnes of plastic packaging material per year, reducing its environmental impact.

SPAR Hungary supports several organisations and causes relating to healthcare, social benefit, education, culture, sport, and animal welfare every year. They also support Hungarian small businesses by putting their products on the shelves of SPAR stores.

The company organises and sponsors charitable initiatives throughout the whole year.  Márk Maczelka, head of communications at SPAR Hungary explained: “Our company spent more than 224 million forints on supporting worthy causes last year. We are proud of all our initiatives and our customers as well who always take these opportunities and support our charity campaigns.” The retail chain has been working together closely with the Hungarian Charity Service of the Order of Malta for 26 years. Their shared mindsets, ideas, and initiatives resulted in several returning charity campaigns, and thanks to new initiatives, the list of beneficiaries continuously grows. The charity organisation received almost 47.4 million forints worth of financial support and donations with the help of SPAR Hungary and their customers in 2022. Donation cards purchased by customers made up 24.7 million forints of this total. As a result of the joint charity collection campaigns, they distributed 143 tonnes of food and more than 58 000 items of school supplies to those in need.

Twelve tonnes of dry pet food for animals in need

SPAR Hungary and the Országos Állatvédőrség Alapítvány (National Animal Rights Foundation) arranged a two-day national pet food donation campaign called “Mancs a bajban!”  (Paw in trouble!) in May 2022 for the second year. The activists of the animal protection organisation collected more than 10 000 kg of dry food for dogs, 3500 cans, more than 1700 kg of dry food for cats, 2700 cans, 4400 pouches and 1400 kg of cat litter at selected INTERSPAR stores. The company involved customers with the “Paw in trouble!” pet food donation campaign to help four-legged friends in trouble, whilst trying to raise awareness for the importance of responsible pet ownership and animal protection, as well as providing people with a deeper insight to the invaluable work of NGOs. On top of this SPAR Hungary has been supporting the work of local animal shelters, zoos, and wildlife parks for more than ten years by donating their surplus and not for sale animal products to them.

SPAR employees’ children enjoyed happy camping adventures

As one of Hungary’s biggest employers, SPAR Hungary gives their employees’ children the opportunity to go summer camping. Every single year over the last decade – except for 2020 because of the pandemic – SPAR has arranged camping for employees’ children, spending more than 200 million forints since 2013 to support the joyful holidays of 4000 kids in different camps, all of which are a minimum 5-days long. As well as being a great adventure for these children, the camping opportunity means a great deal of help in planning the summer holiday period for the employees of the SPAR Group.

School supplies for disadvantaged children

With the ‘Joy to Give!’ (Adni Öröm!) school supply donation campaign during summer, customers get a chance to support disadvantaged children at the start of the school year by purchasing donation cards at INTERSPAR stores as well as buying notebooks, stationary items, pencil cases, school bags, PE bags, and other useful supplies and hand them over to the volunteers of the Hungarian Charity Service of the Order of Malta in the stores. The charity organisation distributes the donated supplies, and the equipment they purchased with the money raised at the beginning of September to the families in need. The initiative was launched by SPAR in 2021 in partnership with the charity organisation and became a tradition returning in 2022. Customers donated more than 58 000 items of school supplies and more than 2 million forints worth of donation cards to support the campaign this year. SPAR Hungary topped up the donations with an additional one million forints. The Hungarian Charity Service of the Order of Malta helped about 1,500 children to have new school supplies, PE accessories, and other necessary school equipment with the support of SPAR’s customers in 2022.

Equal Opportunities Run and donation campaign at the SPAR Budapest Maraton® Festival

Last year in October there were thousands of participants from 800 Hungarian locations and 83 different countries at the 37th Spar Budapest Maraton® Festival.  A special feature of the event was the 10th FODISZ Equal Opportunities Run. This event invited people living with disabilities, reduced mobility and young people who want to express their solidarity with them to run a symbolic 500m race. The aim of the programme is to give children living with disabilities, who don’t necessarily do such activities on a daily basis, the chance to experience the joy and excitement of the competition. During the 2-day program aimed at promoting sports, there are also several charity campaigns organised.

Joy to Give! returns before the Christmas holidays

The joint charity campaign between the Hungarian Charity Service of the Order of Malta and SPAR, ‘Joy to Give!’ Christmas charity campaign helped disadvantaged people in need to be able to share the joy of Christmas for the 26th consecutive year. The volunteers of the Hungarian Charity Service of the Order of Malta were present in the selected SPAR and INTERSPAR stores before Christmas to collect non-perishable food donations. Continuing the tradition, donation cards were available for purchase from the 1st of December in stores and the SPAR online shop. During the festive season many people want to show their solidarity and empathy; according to a survey conducted at the request of SPAR Hungary, 43% of the respondents said that they can almost see the faces of those they are helping when they donate, and most people prefer to do more personal donations. To help SPAR’s customers to express these feelings, the store chain provided the option to send messages on big greeting cards or online to the people receiving their donations which made the whole experience even more personal. ‘Joy to Give!’, the joint campaign between the Hungarian Charity Service of the Order of Malta and SPAR Hungary, contributed to the creation of gift bags made from 143 tonnes worth of food donations in 2022. This amount helped making the Christmas period brighter and merrier for 19 500 families.  The customers of SPAR’s online shop raised more than 7.3 million forints in donations to contribute to the campaign and help build these gift bags.

The cost of 200 000 aluminium cans donated to children’s holiday camps

SPAR Hungary customers help significantly reduce environmental pressure and simultaneously support the holidays of children in need if they return used aluminium cans to the purpose-built machines. The process is very simple; when customers return their used aluminium cans to the selected collection machines by SPAR and INTERSPAR stores they need to press the donation button at the end to be able to donate the value of the returned cans to charity. Thanks to the initiative there were 200 000 cans collected in 2022, which is equal to more than three tonnes of recyclable aluminium. The amount that was raised is close to one million forints and will be used by the Hungarian Charity Service of the Order of Malta to fund the holidaying of disadvantaged children.

More and more Hungarian products for shoppers

SPAR Hungary is committed to supporting Hungarian farmers, family enterprises, domestic agriculture and processing industry – promoting Hungarian producers, products and innovations is a cornerstone of its business philosophy. They are supported by the Hungaricool product competition, which started in 2019, for exciting high-quality products made in Hungary, which are newly developed or, if they already exist, are not yet widely available in retail chains. For customers this provides the opportunity to have access to more and more good quality, locally sourced products every year. The Hungaricool product competition was organised for the fourth time in 2022, and as well as SPAR, the original creator, K&H Bank played an even more active role last year. They offered personal financial advice and financial support for the winners who were also supported with marketing aid and training courses by the SPAR Supplier Academy. The main goal of this is to equip Hungarian small businesses with the knowledge on how to build a brand which promotes further product developments and customers can benefit from this as well. Following the past three Hungaricool rounds so far, 26 winning suppliers are present on the shelves of the retail chain with a total of more than a hundred products. SPAR also supports local small-scale producers with their Regional Treasures program which provides them with a spot on their shelves. When customers buy products with the red apple logo on them, they support the small-scale producers of the different Hungarian regions.

SPAR Helping Hands Programme

SPAR Hungary is happy to support organisations that promote causes of significant social importance and their action campaigns whenever they can. Therefore, the store chain launched a tender system years ago which provides a transparent way and equal opportunity to support different initiatives. In 2022 there were 80 NGOs who received financial support worth of 8.5 million forints through the SPAR Helping Hands tender.

SPAR Hungary’s sustainability initiatives are updated and available using the following link: www.sparafenntarthatojovoert.hu

Runaway energy prices have created unexpected difficulties for civil society actors. For example, the Szimbiózis Foundation, which helps adults with disabilities and severe disabilities to live as independently as possible, has incurred over HUF 74 million in extra costs due to the surge in overheads and fuel prices.

The unsustainability of the situation is illustrated by the fact that several organisations operating residential homes in Miskolc, among others, have been forced to switch to wood-burning. To do this, they produced part of the firewood they needed from the Baráthegyi Majorság, which they also run, and were able to make up for this with Alteo’s financial support, which enabled them to buy an additional 100 cubic metres of firewood.

“As a responsible, ESG-certified company, ALTEO feels obliged to help alleviate the symptoms where it is difficult to eliminate the problem in the short term, in addition to long-term energy efficiency projects,” said Anita Simon, Deputy CEO for Sustainability and Circular Economy of the company, which is listed in the premium category of the Budapest Stock Exchange.

“The humanity, acceptance and community spirit at the foundation is exemplary,” said Anita Simon. She added that it was particularly gratifying to be able to help in this difficult situation, as energy poverty has serious consequences, from health risks to social isolation and environmental damage.

To find out more about the work of the Szimbiózis Foundation, visit https://szimbiozis.net/, where you can also find information on how to support the organisation.