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Regional cooperation and action is needed – Sustainable circular food systems contribute to tackling climate change

The circular economy involves a number of tools and complex systems for making the food supply more sustainable, which is one of the most effective things we can do to tackle climate change and rebuild biodiversity. The third Circular Economy Summit, held on 26 November 2020, focused on food and biodiversity and provided a number of corporate and start-up examples of the circular economy and an overview of international processes.

Today, the Circular Economy Platform, which was established at the initiative of the Hungarian Business Council for Sustainable Development (BCSDH), the Dutch Embassy and the Ministry of Innovation and Technology, consists of 88 members. These institutions have highlighted knowledge-sharing, collaboration, and immediate action as the platform’s most important tasks.

As the world’s population continues to grow, age, and urbanize, climate change is occurring much more strongly and rapidly than many thought it would; biodiversity is also declining at a faster rate than at any previous time in human history, yet the risks associated with changes in nature are still underestimated in business decision-making.

„The extraordinary challenges, the uncertainty, have put significant pressure on leaders to make immediate, short-term decisions that help deal with the pandemic. However, it is critical that such short-term measures and the post-pandemic economic crisis do not overshadow the need to deal with issues such as climate change or sustainability, and that critical long-term decisions on which our future depends are taken as soon as possible.” – highlighted Attila Chikán Jr, president of BCSDH. „The pandemic has shown that we are able to have an impact on climate change, but also that this can only be achieved at the cost of significant sacrifice. Initiatives such as the UN’s Race to Zero program designed to foster climate neutrality, and the European Green New Deal are of vital importance. One very essential component of this activity is the transition to a circular economy. The business sector is playing a key role in these initiatives: it is thus time to take action.” – he added.

New government regulations, including food waste management, are one of the keys to creating circular food systems and sustainable agro-financing, while new innovative corporate solutions that involve the implementation of circular farming can also help in the process.

„Circular economic goals can only be achieved with the active participation of the actors involved. In order to generate interest, we need to create conditions that help economic actors to embark on this new path to become interested in learning and applying the new approach. The Ministry of Innovation and Technology, as a founding member of the Circular Economy Platform, aims to better understand the interests of economic actors when transposing legislation setting circular economic objectives.” – highlighted Ferenc Hizó, deputy state secretary, Ministry for Innovation and Technology in his speech. „The vision of our medium-term National Waste Management Strategy, which is currently being prepared, is to make the Hungarian waste management sector one of the exemplary models of the circular economy in Europe. The measures we are planning aim to develop a waste management infrastructure that ensures the efficient use of state resources and increases the competitiveness of the waste management sector. This can benefit all actors in the sector and is expected to have a positive impact on investment in the sector.” – he added.

The guest speaker at the Circular Economy Summit was Christian van MAAREN, founder of the exemplary Dutch Excess Materials Exchange, which supports the secondary market for wastes and surpluses. In addition to learning about a number of international and domestic examples, including corporate and start-up solutions, the Slovak Circular Platform was introduced to provide an overview of similar processes in the Visegrad countries.

“We need a truly green and fair transition toward zero emission. We must ‘Build back better’ in order: To make sure that the EU and its member states converge to the highest levels of competitiveness. To strengthen the EU’s geopolitical and economic standing in the world, backed up by strong member states. To be global leaders in standing up for our EU values, transparency and free competition based on the rule of law.” – added René van Hell, ambassador of Embassy of the Kingdom of the Netherlands.

„The circular economy offers a systemic answer to the climate crisis and as such is an important solution towards limiting global warming as close as possible to 1.5°C. ING as a bank have to value differently, treat risk differently, and finance differently when it comes to the circular economy.” – said  Bodor Tibor, Country Manager of ING Wholesale Banking Hungary in his speech, as  one of the hosts of the conference.

Transitioning to a circular economy is a great business opportunity today. The core of the concept is not yet deeply understood by most companies, although the use of this model can increase the resilience of the world economy and facilitate the achievement of the Paris Climate Change Agreement and the United Nations Sustainable Development Goals. The circular economy could generate business opportunities worth $ 4.5 billion worldwide by 2030.

Thus, within the Circular Economy Platform’s highly successful webinar series, participants could benefit from insight from renowned experts about the theoretical and practical foundations of the circular economy, as well as details about the legal framework. Furthermore, they were able to learn about the latest circular business models and product design procedures through innovative international and domestic examples. The work continues, while the focus remains on knowledge-sharing, collaboration, and action.

 

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Circular economy

According to the current so-called linear economic model, technical and biological components are extracted from nature, transformed, and are then disposed of without recycling.
In contrast, in the circular economic model metabolic processes are involved in a closed circle, waste is almost 100% recycled, and biological and technological components are returned to the cycle with minimum loss of quality.

Special thanks to our sponsors:

Our 100th member is the Yamazaki Mazak Central Europe s.r.o.

It is our great pleasure to announce our 100th member company, the Yamazaki Mazak Central Europe s.r.o. The company was found in 2004, and its General Manager is László Török, who is responsible for the Central-East European region covered with 144 employees, working from Hungary currently coordinates 41 employees in the Hungarian Branch. In 2018 the regional revenue including the Hungarian sale had a total revenue of close to 24 billion HUF. The company’s core business includes the distribution of machine tools, technology consulting, machine tool service and the supply of spare parts.

As a market leader machine tool manufacturer, the energy requirements of the machines, the use of coolant and the use of environmentally friendly technologies are always a priority for them – representing high focus in all innovations. Sustainable development is achieved through product design, manufacturing processes, and the continuous development of high skilled employees and engineering competencies to meet the optimal needs of customers. At their technology centre, they try to provide customers with the most productive solution during trial testing while minimizing material consumption. In addition, they contribute to the protection of the environment through the careful choice of raw materials, the reduction of energy, water and oil needs and the refurbishment of obsolete machinery.

The company’s core values ​​include proper annual communication of ethical conduct and the audit of all relevant matters. Respect for human rights also applies to suppliers, and products also go through strict Export Control. If the machines are used for purposes not approved by the company, they can be stopped remotely using a special code. They have a high level of transparency, as accountability is a priority in all cases, and they have all the information about the location and use of their machines and equipment.

Sustainable development is a key value for the company, and by joining BCSDH, they want to further strengthen this by learning about the solutions and perspectives of their and other industries using the strength of the partnership.

Coca-Cola HBC Hungary is committed to create a more sustainable world – The company published its Sustainability Report

In 2019, the Coca-Cola HBC AG Group announced a new growth strategy to be completed until 2025. Their corporate strategy is based on five key pillars, each of which is essential for responsible and sustainable growth that creates value for the company and their stakeholders as well. This strategy is closely linked to the Sustainable Development Goals (SDGs) of the United Nations, which identified the path to be taken together to create a sustainable world.

Last year was also outstanding in terms of business efficiency for Hungary’s leading beverage manufacturer. The company operates on a stable foundation, and its successful financial performance allows the further expansion of domestic production activities. The goal remains to become the largest production base in Central Europe by expanding its production capacity and introducing modern technological developments. Coca-Cola HBC Hungary had investments worth approximately HUF 5.9 billion in the country last year.

Consumer health and nutrition

As a total beverage manufacturer, the company aims to provide its consumers beverages that meet consumer occasions around the clock by building a wide portfolio of high quality products. In 2019, the company further expanded its product portfolio and launched new products, including a number of low-sugar and low-calorie beverages. Preserving the health of consumers is a goal that the company constantly keeps in mind when developing its portfolio. Nowadays, beverages with reduced calorie make up an increasing proportion of the product range – in 2019, 48% of the portfolio is low-calorie or calorie-free – and the sugar content of existing products is steadily declining. Together with the members of the Hungarian Mineral Water, Fruit Juice and Soft Drink Association, the company has voluntarily pledged that by the end of 2020, soft drinks’ sugar and calorie content will be reduced by 50% compared to 2010. By the end of 2019, the industry’s companies had reduced the average sugar and calorie content of soft drinks and juices in Hungary by 43%.

Keep it in circulation

Packaging waste is a strategic environmental topic for Coca-Cola HBC Hungary: it is an issue relating to fundamental business processes, and its solution is becoming increasingly urgent. Proper packaging is also essential for product freshness and food safety considerations. At the same time, the long-term impact of packaging materials – especially plastic – on the environment has made it clear that new, sustainable solutions must be found. The company is committed to being not only a part of change but also an engine for it. The sustainability approach and goals for packaging waste have been integrated into the World Without Waste strategy announced in early 2018. With this strategy, the Coca-Cola HBC AG Group is closely linked to The Coca-Cola Company’s efforts and considers it a priority to work together with various means for this common cause. In 2019, Coca-Cola HBC Hungary has started to optimize its operating processes in a new approach, with the ambition to create a circular economy. They want to build a future where unnecessary or wasteful use of raw materials is avoided, and materials keep their value within the cycle for a long time. The company strives to build up a closed-loop economic model that is based on resource efficiency and innovation, resulting in a smaller environmental footprint. The cycle consisting the collection and recycling of packaging materials is the most effective way to manage packaging waste, so in 2019, several of the

company’s developments and campaigns targeted this topic. PET bottles produced by Coca-Cola HBC Hungary are made of 100% recyclable plastic and the company is constantly increasing the amount of recycled production material. As a result, the proportion of recycled plastic per bottles was almost 24% in 2019. The goal is to increase this ratio to 50% by 2030.

Employee commitment and well-being

The key of Coca-Cola HBC Hungary’s long-term growth and success is their employees. The satisfaction, improvement, and safety of employees with attractive promotion opportunities are the basis of the excellent performance that creates value not only for the company but also for its customers and consumers. The company has taken a number of measures recently to make the work environment friendly and innovative and to make their employees proud of their company. Based on Randstad’s survey, Coca-Cola HBC Hungary became the most attractive and well-known workplace in the Hungarian FMCG sector in 2019. The PwC survey’s Excellence Award confirmed that a suitable work environment, flexible working, a predictable workload, and a fair starting salary are also attractive to young people starting their careers.

Corporate social responsibility

Coca-Cola HBC Hungary believes that its business success largely depends on the well-being and strength of the communities where the company is present, and its responsible operation requires to respond to the needs of these communities. They aspire for an open partnership and mutual respect with communities everywhere. They support the individuals and communities they contact with through their volunteer corporate programs and the #YouthEmpowered program. They also seek to actively involve employees in the company’s community programs. The most successful events of 2019 were the volunteer days organized for the Zero Waste Tisza program. More than 160 colleagues participated in the program and helped to dispose over 3.3 tons of waste in the upper section of Tisza. Preserving our natural resources has created opportunities for both waste recycling and community building.

The company’s full Sustainability Report 2019 is available on this link.

Clean Home, Clean Planet

The Henkel Laundry & Home Care business unit sets new standards by combining innovation and sustainability. With its product developments, it constantly strives to make the daily lives of their consumers easier. An excellent example for this is the “ProNature” product family, which offers the proven high-quality cleaning performance of trusted Henkel brands in an even more sustainable way, winning over a wide range of consumers.

The ProNature assortment already includes eight products of the brands Clin, Bref, Pur and Somat. The ProNature product family is made using several sustainable ingredients*. In addition, the plastic packaging (excluding the cap) is made of recycled plastic and contains Social Plastic®**. The Somat ProNature box and the back of Bref ProNature toilet fresheners are made of 100% recycled paper. These are just a few reasons why ProNature products also carry the “Ecolabel” label (except for Bref ProNature toilet fresheners).

“Sustainability is an essential part of our business and the main sustainability trends are key parts of our innovation strategy. It is very important to us that our innovative solutions are sustainable and achieve positive environmental impacts in the long run. The ProNature concept plays a valuable role in helping Henkel achieve its ambitious sustainability goals. Moreover, ProNature products represent another step towards achieving our packaging strategy and goals for 2025,” emphasizes Lukáš Hájek, General Manager of Laundry & Home Care.

 

Social engagement: HUF 5 million support to the 10 Million Trees Foundation

Sustainable and responsible actions characterize the collaboration between the ProNature product line and the 10 Million Trees Foundation. As part of a campaign involving ProNature products and consumers, 1,000 trees will be planted nationwide in the coming months.

The 10 million Tree community, which was founded more than a year ago, is now present in nearly 150 settlements and 50,000 trees have already been planted with community funding worth about HUF 1.2 billion by dedicated volunteers. “We believe that our sponsorships with companies, our partnership with Henkel, will yield fruitful results that can bring us closer to achieving our ultimate goal of planting 10 billion new trees faster,” the President of the Foundation added.

Learn more about Henkel’s sustainability efforts and ProNature products.

Also learn about the work of the 10 Million Tree Foundation

* compared to the standard Henkel product range

** Social Plastic® For three years now, Henkel has partnered with the social enterprise Plastic Bank as the first global company, producing consumer goods. The common goal is to reduce plastic pollution of the oceans and at the same time create new opportunities for people living in poverty, especially in countries that do not have waste management infrastructure. The local population can take back the collected plastic waste to the collection points set up for this purpose and exchange it for money, goods or services. This significantly reduces the amount of plastic reaching the oceans and at the same time new value is created. This plastic waste is recycled and gets back into plastic packaging production as Social Plastic®.

Atenor’s 13 years in Hungary results nearly 230,000 m2 inclusive office space

The Belgian-owned Atenor real estate development company has been operating in Hungary for 13 years and is responsible for such mega-projects as Váci Greens, which was completed this year, and Aréna Business Campus, with the first building finished. The office space completed until now and the developments planned over the next few years will result in nearly 230,000 m2 of certified disability inclusive premises, for which they have partnered up with Access4you.

“There is nothing to consider here, this is something that everyone deserves,” said Zoltán Borbély, Atenor’s Country Director, in relation to accessible buildings at an RICS event held in early 2020, featuring a roundtable discussion on inclusive real estate development. Human-centred design is one of the pillars of Atenor’s vigorous international corporate culture, aiming at the implementation of environmentally-conscious real estate investments that are in harmony with the city and which serve the comfort and well-being of the people using the property. Atenor has a clear approach in this regard – when it comes to people, the company takes everyone into consideration, including people with special needs. People with special needs represent 15% of society: wheelchair users, people with restricted mobility, audio-visual disabilities or cognitive impairment.

Why is it important to establish accessible facilities for people with special needs?

Globally, there are 1.2 billion people with special needs, including 120 million people in Europe and 1.5 million people in Hungary. Their integration is of unquestionable importance from the standpoint of human rights and equal opportunities, yet developing and incentivizing the establishment of a universally inclusive environment also offers economic and business advantages for enterprises. People with special needs have an annual purchasing power of USD 8 billion and an even greater significance on the labour market. The intellectual capital, talent and knowledge that people with special needs possess may serve as one of the pillars of companies’ sustainable development. As a sign of this, the growing international trend of global companies focusing on strengthening their inclusive corporate culture is emerging. The presence of people with special needs in all aspects of life is ensured by inclusive properties.

Authentic accessibility, at the highest level

Atenor aims for the highest level of certified accessibility in all its projects. In the case of the 50,000 m2 Váci Greens E and F Buildings and of the entire 72,000 m2 of Aréna Business Campus project, accessibility has been in focus since the beginning of the design phase. Atenor has involved rehabilitation engineers in the development of the engineering plans and has adopted Access4you’s accessibility criteria for 8 different special needs groups. The requirements examine the usability and accessibility of the built environment, including entrance, orientation and available services. Beyond the basic accessibility features for people with restricted mobility, Atenor aims to fulfil the requirements to all groups concerned. Therefore, after the evaluation of the properties, all completed projects may receive an Access4you Certificate of gold level accessibility.

The method will not change

Despite the fact that many companies are reconsidering their office strategies in the current pandemic period, Zoltán Borbély remains optimistic and, instead of a crisis, he foresees the completion of the developments. The long-term plans include identifying tenants who adopt a responsible, sustainable approach to recovery. The company continues its 15,000 m2 RoseVille project on Bécsi street, as well as the 17,000 m2 BakerStreet project, both of which are designed to comply with Access4you’s highest, gold level accessibility certification.

Tungsram excelled at the 35. Spar Marathon Festival

Despite the bad weather their colleagues reached remarkable results on the 35. Spar Marathon Festival keeping in mind the COVID 19 safety instructions given by the organizers. 7 colleagues have represented Tungsram on 10 km run, at 30 and 42 km two colleagues run as well as their team participated on marathon relay race. Health protection is the most important goal of Tungsram’s Fittungrsam program, which they deservedly represent on Spar Marathon this year.

Tungsram’s Participation on Greentech Conference

Deputy General Manager of Tungsram Gábor Boncz represented their company on the Greentech Conference held in Zalaegerszeg. The President of Hungary János Áder was the chief patron of the event and Minister of Innovation and Technology László Palkovics gave the opening speech. On the conference presenting sustainable, green technologies and the related national regulations Gábor Boncz introduced the human wellbeing concept of Tungsram as well as their UV Sanitizer, Agritech and Smart city solutions.

You can watch his presentation in Hungarian here.

Race to Zero Business Ambitions Forum – 3 December 2020

Businesses for Race to Zero:

achieving the net zero 2050 target

CEOs and Sustainability Managers, join us on 3 December

at 2pm CET on MS Teams

for an opportunity to hear from Race to Zero policy and business experts and to exchange on best practices for achieving your business’ 2050 net zero goals.

Participation is free of charge, but registration is required. Please contact: ivett.takacs@bcsdh.hu

The Race to Zero is the UN-led campaign for a zero-carbon world. 1,128 businesses including the likes of Facebook, Tesco, LafargeHolcim and Magyar Telekom, and 45 of the biggest investors have joined the global Race to Zero campaign, along with over 450 cities and 550 universities. Businesses of all sizes and across all sectors have a clear role to play in climate action, in line with the Paris Agreement and in the lead-up to the COP26 in Glasgow in November 2021.  

Over the coming years, every sector in every market will be transformed as the transition to a low-carbon economy is underway. Committing to the Race to Zero goals of net zero carbon emissions by 2050 is also taking the steps necessary to protect and grow your business by reducing costs, by enhancing access to investor capital, by staying ahead of policies and regulations to limit GHG emissions, by increasing your business’ preparedness to external shocks, and by leading on tomorrow’s innovation and transformation.

For more information on the Race to Zero campaign prior to the event, please turn to the campaign’s global website, which provides information on the paths available for joining the campaign, including the Science Based Targets initiative, and the SME Climate Hub.

 

Agenda:

14.00Opening remarks by British Ambassador Paul FOX and Ambassador of Italy Massimo Rustico
14.05Opening remarks by Péter KADERJÁK, Minister of State for Energy and Climate Policy, Ministry for Innovation and Technology
14.10Jennifer AUSTIN, Director of Policy and Strategy, UK COP26 High Level Climate Action’s Office

·        Race to Zero: a global overview in the run up to COP26

14.25Kaya Axelsson, Net Zero Policy Engagement Fellow, Oxford University Smith School of Enterprise and the Environment and the Environmental Change Institute

·        Defining and achieving net zero: the practical resources

14.40

 

Business voices on the Race to Zero: Translating global pledges into local action. Speakers:

·        Audi Hungaria, Péter ÉLIÁS, Head of Environmental Management

·        Budapest Airport, Dr. Rolf SCHNITZLER, CEO

·        Deloitte Hungary, Alastair TEARE, Risk Advisory Business Leader

·        FCA Fiat Chrysler Automobiles, Andrew HIGGINS, Regional Managing Director CEE

·        ING Wholesale Banking Hungary, Tibor BODOR, CEO

·        Legrand Hungary, László KÁROLYI, CEO

·        Magyar Telekom, Zsuzsanna FRIEDL, Chief People Officer

·        Tesco Hungary, Zsolt PÁRTOS, Managing Director

15.05Discussion and exchange of expertise
15:20Ambassadors’ closing message (pre-recorded video)
15.25Closing remarks: Irén MÁRTA, Managing Director, BCSDH

The language of the forum is English, without interpetation.

Jubilee World food day convoy carries 90 tonnes of donated food

World Food Day has once again brought more than 20 trucks full of donated food into the heart of Budapest – Coca-Cola HBC Hungary also joined them with a company car. As has been happening every year since 2006, the convoy, organized by FAO and the Hungarian Food Bank Association, made a short stop at Heroes’ Square before departing for the association’s warehouse to empty 90 tonnes of food. Over the past 15 years, FAO and the Hungarian Food Bank Association have collected more than 670 tonnes of food for needy families.

World Food Day, which marks the founding of FAO in 1945, supports efforts to provide healthy nutrition for everyone – a vision reliant on sustainable agriculture and the protection of our natural resources. The number 90 is also symbolic with FAO turning 75, while the Food Bank Association 15 this year.The food carried by the convoy was donated by several Hungarian and international food producing and distributing companies that are long-standing partners of the Hungarian Food Bank Association. The products (pasta, biscuits and canned vegetables, all with long shelf lives) ultimately will go to some 36 000 needy people in Hungary.

„The theme for this year’s World Food Day (‘Grow, Nourish, Sustain. Together’) underpins the need for joint actions, partnerships and solidarity for a better future. This concept was developed before the pandemic broke out, which made the day’s theme even timelier. FAO turned 75 in 2020, an unprecedented year; now it is time to transform our world through food and agriculture” – said Vladimir Rakhmanin FAO Assistant Director-General and Regional Representative

According to FAO estimates, one-third of all the food produced globally will never be eaten. To help demonstrate the extent of the problem, 29 September marked the first-ever International Day of Awareness of Food Loss and Waste.„Hungary is committed to providing sustainable local solutions to the issues of food insecurity. Food aid is important – especially in a time of a global pandemic – however, real help should have long-lasting effects that should be taken into consideration when developing any international programmes” – said Zsolt Belánszky-Demkó Deputy state secretary of the Ministry of Agriculture.

„In the midst of the global COVID-19 crisis, World Food Day sends a strong reminder that we all have a role to play – ranging from making healthy food choices to not letting sustainable habits fall by the wayside. The Hungarian Food Bank Association is celebrating its 15th anniversary this year, as does the food convoy, which has so far helped the needy with a total of 674 tonnes of food. World Food Day and the recently proclaimed Food Loss and Waste Awareness Day are closely linked to our goal of raising awareness around the issues of waste and poverty. While the prolonged impacts of COVID-19 are causing greater hardship, it is even more important that food surplus gets to the right place – delivering help without putting a burden on our environment” – added Balázs Cseh President of the Association.

Companies supporting the convoy: ALDI Magyarország Élelmiszer Bt., Auchan Retail Magyarország, Bio-Fungi ChefGomba, Bonafarm Csoport, Chef Market Food Service Company, Coca-Cola HBC Magyarország, Danone Magyarország Kft., Gyermelyi Zrt., HEINEKEN Hungária, Kifli.hu Online Szupermarket, Kometa ’99 Zrt., Metro Kereskedelmi Kft., Nestlé Hungária Kft., Nissin Foods, NUMIL Hungary Tápszerkereskedelmi Kft., Pek-Snack Kft., Penny Market Magyarország, Rauch Hungária Kft., Tesco-Global Áruházak Zrt., Upfield Hungary Kft.

The Circular Economy Summit will be held on November 26th

The Business Council for Sustainable Development in Hungary, the Embassy of the Kingdom of the Netherlands and ING Wholesale Banking Hungary will organize this year’s Circular Economy Summit online on 26th November. In addition to presentations by renowned Dutch and Hungarian experts, concrete, innovative circular solutions and the Lean and Green project will be presented, moreover the Circular Slovakian Platform will be introduced.

During the event, Ferenc Hizó will present the aspirations of the Ministry of Innovation and Technology for the circular economy, and the aspects of Agro Sustainable Finance will be discussed by ING’s Dutch expert Mayke Geradts. Participants will gain insight into the world of secondary materials in a presentation by Christian van Maaren, founder of the Excess Materials Exchange, learn about Tungsram Agritech in a presentation by Ferenc Pongrácz, and about the potential of fresh food with Deloitte senior manager Ákos Lukács.

In the next part of the event, concrete, innovative corporate solutions will be presented. Among many things, participants will hear about circular solutions for the IT sector from Joost de Kluijver, founder of Closing The Loop, plastic-free seas from Ramon Knoester, founder of Clear Rivers, organized urban composting from Emese Pancsa, head of Compocity, and the use of insect protein from the CEO of ATEV, Lajos Kovács.

During the Summit, the Lean and Green project will be presented. The goal of the project is to establish effective cooperation between the representatives of the logistics sector and give their partners real guidance for a sustainable future. Finally, the Circular Slovakian Platform will be introduced, which contributes to the transition to a circular economy by saving natural resources, minimizing waste, reducing reliance on imports of primary raw materials, and creating new business opportunities in Slovakia.

You can access the detailed program by clicking here.

If you would like to participate in the event as a CEO, please contact us at this email address ivett.takacs@bcsdh.hu .

The language of the event is Hungarian and English, without interpretation.

Business Council for Sustainable Development in Hungary
1118 Budapest, Ménesi street 9/a.

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