In the fast-paced and dynamic landscape of modern retail, success isn’t solely defined by profit margins and market share. It’s increasingly about how a company contributes to environmental sustainability, social responsibility and ethical governance. The SPAR Group, a prominent player in the South African retail sector, understands this shift in paradigm and is leading the charge by making Environmental, Social and Governance (ESG) principles the cornerstone of its business culture.
ESG is more than a buzzword For Kevin O’Brien, Group ESG Executive at The SPAR Group, ESG is not just another corporate buzzword. It’s a vital guiding principle, a compass directing the company’s entire approach to business. O’Brien firmly believes that ESG thinking should permeate every facet of an organisation, from its leadership to its staff and partners.
“ESG is about instilling ethics, authenticity and good governance into the very DNA of a company. It’s not something that can be compartmentalised into specific departments or treated as a mere marketing or financial function. Instead, ESG should drive a fundamental transformation in how a business does business,” says O’Brien.
The urgency of ESG in today’s world For The SPAR Group, its commitment to ESG isn’t just a moral stance; it’s a smart business decision. “Corporates need to have the courage to stand up for what is right, champion what is ethical and continually work towards correcting where things have gone wrong. Any company that does not take these genuine threats seriously is unlikely to survive the next few challenging years,” continues O’Brien.
“The reality is that environmental and social governance directly affects business performance, leading to outperformance, fewer losses and faster recoveries. Companies that successfully integrate ESG into their operations reap a multitude of benefits, including improved risk management, meeting stakeholder expectations, enhanced financial performance, increased competitiveness, regulatory compliance and long-term resilience”.
SPAR’s ESG journey
The SPAR Group isn’t just paying lip service to ESG principles; it’s actively charting a course to become a leader in sustainability within the South African retail sector.
O’Brien makes it clear that this transformation cannot be limited to a single department or happen overnight. It requires the full commitment of the entire organisation, from the top down and incorporating all spheres and people. “And the consequences of neglecting this imperative can be severe. Businesses may lose customers, face resource scarcity, generate excessive waste, incur higher costs, suffer fines and penalties, lose talent and fall behind more environmentally conscious competitors. Balancing profitability with purpose and sustainability is the key to long-term success”, says O’Brien.
The SPAR Group’s commitment to sustainability, however, extends beyond its core business. The company recognises its role in addressing broader societal challenges, including education, nutrition, food security, the advancement of women, unemployment, poverty and crime.
Commitment to South Africa’s future
As part of this commitment, The SPAR Group CEO for Southern Africa, Max Oliva, signed the Business for South Africa pledge, aligning the group with other corporate leaders to find solutions to the country’s energy, logistics and security challenges.
The SPAR Group has also partnered with the Greater Together Foundation to uplift South African communities through collaboration and investment and actively supports women through initiatives like END Gender-Based Violence (GBV) in partnership with Lifeline, TruLife and with the National Prosecuting Authority (NPA) through support of its Thuthuzela Care Centres around the country.
In addition, great strides have been made in programmes and projects relating to good health, wellness, education and sports as an effort to build resilient communities that can bounce back and adapt to the rising economic threats. The 25 year-long sponsorship commitment to South Africa’s national netball team, the SPAR Proteas, is testament to the SPAR Group’s consistency and determination in making a meaningful impact in communities.
Entrepreneurship and supplier development
Max Oliva maintains that entrepreneurship is the key to unlocking SA’s true potential as a significant driver of economic development, job creation and social cohesion. “Entrepreneurship must be the engine room of jobs, growth and happier, healthier communities in the long-term. In my experience there is no better way to ensure excellence, affordability and competition than by giving owners who have a vested interest in succeeding, the opportunity to learn, grow and innovate.”
When it comes to supplier development, SPAR embraces micro and small suppliers and strives to play an integral role within the communities it serves. “While our supplier development programme works to enable job creation and skills transfer in the manufacturing sector, our Rural Hub supports small-scale farmers and creates a market for their products, contributing to income generation and infrastructure development, while creating a food system that provides affordable and nutritious fresh produce through ethical sourcing and private label development”, explains Thuli Tabudi, National HR Executive at The SPAR Group.
A legacy of sustainability
The SPAR Group has six distribution centres, as well as Build It and Pharmacy at SPAR distribution centres, together servicing more than 2,500 stores throughout southern Africa under the SUPERSPAR, SPAR, KWIKSPAR, SPAR EXPRESS, PHARMACY at SPAR, TOPS at SPAR, SaveMore and Build It brands.
This year, the Group celebrates 60 years of trading in South Africa. says Max Oliva, “With this powerful legacy as our foundation, we remain positive and optimistic about our growth potential as we embark on further ESG-focused and entrepreneurship-driven expansion plans”.
