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For the good of society

S Group and its cooperatives create well-being across Finland. We have nearly 40,700 employees, and are investing in employing young people in particular. We create economic well-being throughout the country by making investments, through which we also employ people indirectly.

S Group's social influence 11,730 EUR million in 2018

 

 
CASH BENEFITS PAID TO CO-OP MEMBERS, EUR

274

million 

Tax withheld from salaries and the corporate tax paid by the S Group companies are primarily accumulated by municipalities. The tax revenue is used to finance services offered by society in each cooperative's region in Finland.

CASH BENEFITS PAID TO CO-OP MEMBERS, EUR

372

million

We reward our co-op members monthly with cash. In addition to the Bonus, our co-op members receive a payment method-based benefit, interest on the membership fee and return of surplus. Moreover, we support sport, culture and the common good both locally and nationally with millions of euros per year.

 
SUPPORT FOR THE COMMON GOOD, EUR 

6

million 

More than half of this support was allocated to sport. The remaining amount was divided between social activities, culture and various donations.

By purchasing local products and services, we take responsibility for the vitality of the Finnish food supply chain in particular.

USE OF FINNISH MEAT AT OUR RESTAURANTS

OUR ABC RESTAURANTS ONLY SERVE

100%

FINNISH PORK, BEEF AND CHICKEN

THE GOAL FOR OUR OTHER RESTAURANT CHAINS IS

100%

FINNISH FRESH PORK AND CHICKEN BY THE END OF 2020

We promote the following UN Sustainable Development Goals in particular:

Tax footprint

The taxes we pay are distributed across Finland

S Group companies paid a total of nearly EUR 1.8 billion in taxes and payments to the Finnish state and municipalities in 2018. In addition to direct income tax and indirect taxes on consumption, S Group's tax footprint includes tax-like payments related to employees and tax withheld from their salaries.

TAX FOOTPRINT EUR 1,773 MILLION IN 2018

 

In recent years, the focus in taxation has shifted from income taxes towards indirect taxes. Indirect taxes include value added tax and various excise duties, such as alcohol and tobacco taxes, beverage taxes and fuel tax. Value added tax is a common consumption tax ultimately paid by the consumers of goods and services; that is, mainly households. We pay value added tax to the state as a company selling goods and services.

Excise duties are consumption taxes included in the price of the product, and are levied from product manufacturers, producers, importers or wholesalers. Many products sold by S Group include excise duties.

In addition to the taxes included in the tax footprint, we pay transfer tax, lottery tax, tax at source and vehicle tax, which are not included in the table here. We also pay local taxes on the operations of our companies in Estonia and Russia in accordance with the regulations of each country.

Table: S Group´s tax footprintHide the table

The majority of the tax income generated by S Group is distributed regionally around Finland. Tax withheld from salaries and the corporate tax paid by the S Group companies are primarily accumulated by municipalities. The tax revenue is used to finance services offered by society in each cooperative's region in Finland. The figure here shows the accumulation of tax withheld and corporate tax in the cooperatives' regions.

TAX WITHHELD AND CORPORATE TAXES EUR 274 MILLION IN 2018

Responsibility partnerships

The common good locally and nationally

In 2018, we invested nearly EUR 6 million in supporting various parties locally and nationally. More than half of this support was allocated to sports. The remaining amount was divided between social activities, culture and various donations.

Our national partners include the Finnish Red Cross, the Mannerheim League for Child Welfare (MLL), the Children's Day Foundation and the Football Association of Finland. Most of the support we provide each year is allocated to our national partners.

We also have regional sustainability partners, and our cooperatives extensively support local activities. For example, the Supporters concept is a way for the cooperatives to support children's and young people's hobbies transparently. Co-op members can join as supporters and have an impact on the amount and recipients of the support paid by the cooperative.

SUSTAINABILITY COOPERATION 2018, %

100 Ässäkenttä fields inspire Finnish schoolchildren to exercise

S Group's and the Football Association of Finland's cooperation on building free exercise areas and facilities for children achieved its ambitious goal when the 100th Ässäkenttä field was opened in the yard of the Mertala school in Savonlinna in September 2018.  We have invested a total of EUR 1 million in building free-of-charge local exercise areas and facilities for children across Finland.

The Ässäkenttä fields are open to everyone, and can be used for a variety of ball games and sports or just for fun exercise. Building the Ässäkenttä fields is very important to us, as exercise is an integral part of the daily life and well-being of children and young people.

The initiatives to build fields come from municipalities, which make the decisions concerning the construction of local sports facilities. The cooperatives' share of the construction costs is around 40%.

Finnish origin

Finnish products in our selections

Our customers value products of Finnish origin. The demand for Finnish products also promotes employment in Finland. For example, of the food products sold in our grocery stores, 80% are of Finnish origin.

S Group's Kotimaista range includes 400 products of Finnish origin that meet the generally accepted requirements of the Hyvää Suomesta label or the Sirkkalehti label for Finnish origin, meaning that their raw materials come from Finland and the products have been made in Finland.

Finnish meat

Our ABC restaurants only serve Finnish pork, beef and chicken. For our other chains of restaurants, the goal is for the fresh chicken and pork to be 100% of Finnish origin by the end of 2020. For frozen and processed foods, the goal is 90% of Finnish origin. For chicken, this goal was achieved ahead of time in 2018.

We are also committed to compliance with stricter restrictions on antibiotics in meat production than the regulations require. We do not approve routine-like antibiotic medication or antibiotic feed for healthy animals. Antibiotics must only be used when prescribed by a veterinarian, and their use must be limited to treating sick animals. This requirement also applies to suppliers using foreign meat.

Degree of Finnish origin of meat in restaurant chains in 2018, % Of the acquired volume Of product items
Chicken, fresh 100% 100%
Frozen and processed chicken products 87% 66%
Pork, fresh 91% 87%
Frozen and processed pork products 84% 85%

OUR GOAL FOR THE USE OF FINNISH MEAT AT OUR RESTAURANTS

100%

FINNISH FRESH CHICKEN AND PORK BY THE END OF 2020

90%

OF FROZEN AND PROCESSED CHICKEN AND PORK PRODUCTS BY THE END OF 2020

100%

FINNISH MEAT AT ABC RESTAURANTS

The Finnish Recipe for Success competition 

The Finnish Recipe for Success competition highlights innovative new products by small and medium-sized manufacturers. Launched in autumn 2018, the competition has reached its finals. The finalists will be provided with coaching on product development and packaging design, as well as telling the story of their product and marketing their product, during spring and summer 2019. The winning products, and perhaps also products by other finalists, will be introduced in our grocery stores during autumn 2019.

A new global food-technology startup for Finland

S Group and the Founder Institute, a startup accelerator based in San Francisco, will establish a global food-technology startup programme in Finland. The Food Founder Programme will be launched in Helsinki, and will help new companies and business owners engaged in food products, food technology and agricultural technology to develop ideas into international success stories. The first 13-week training programme will begin in early 2019.

A trip to a store and the world of retail

‘Trip to the Store' is a study module designed by S Group and the Finnish Food Information association. Its purpose is to support learning outside the classroom in line with the national curriculum, as well as encouraging schools to discover new learning environments. From the material offered, the teacher chooses material that best suits their class. Some of the study module is implemented at a store, and parts of it are implemented in the classroom before and after the trip to the store. The study module is in the pilot phase.

‘Trip to the Store' is based on our Food Manifesto, which we announced in summer 2017 to build a bright future for Finnish food. One of its themes is a promise to promote healthy eating among children. This inspired the idea of schoolchildren's trips to grocery stores. At the store, the children learn about how food is delivered to the store and about food waste, which helps them understand the stories behind the products and appreciate food.

Anonymous recruitment

Promoting a non-discriminatory work culture

We are participating in the Work Does Not Discriminate (#eisyrji) campaign to reduce discrimination in Finnish working life. We promoted a non-discriminatory work culture in November 2018 by organising a project to test anonymous recruitment.

Started by the Confederation of Finnish Industries, the Work Does Not Discriminate campaign aims to make equality a given in working life. In addition to S Group, 17 companies and communities of different sizes participated in the first stage of the campaign.

Anonymous recruitment is used to ensure that applicants are invited to participate in job interviews based on their relevant work experience, educational background and capabilities, for example. In other words, employees will not be selected based on their age, gender, ethnic background or similar factors, not even subconsciously.