Budapest, 23 March 2021: For the first time, research has been conducted on the status quo of the Hungarian business sector in relation to carbon-neutral operations. The picture is not so bright – although 31% of leading companies already have net zero emissions targets, this figure is below the international benchmarks and below the level required for real change, according to the Towards Net Zero research of the Hungarian Business Council for Sustainable Development (BCSDH), with the professional support of Deloitte.
Achieving net zero emissions is a major challenge of our time, and the research presented at the Net Zero Ambitions Forum, co-organized by BCSDH and the British Embassy, can create a basis for the next steps. At this event, seven of Hungary’s leading companies also presented their related commitments.
“This is the first time in Hungary that a survey has been conducted about the carbon neutrality aspirations and challenges of companies. The results of such timely and valuable research serve as an important guide to defining the most urgent tasks, such as the recognition of the opportunities created by financing, and of reducing and measuring greenhouse gases. Provides guidance on how the transition between the current situation and achieving the desired net zero operations can be accelerated with existing tools” said Irén Márta, Director of BCSDH, in her introduction” said Irén Márta, Director of BCSDH, in her introduction.
Sixty percent of the companies that were surveyed have emission reduction policies, and 30% plan to have one in the next five years. Only 10% said they did not even plan such measures. But only 50% of companies have a specific target for reducing greenhouse gas emissions.
“It’s good to see that BCSDH member companies are at the forefront of setting climate-related goals, but our job is to mobilize a wider business community. Every company is affected by climate change, and every company has the opportunity to positively influence it. The goal is no longer just reducing greenhouse gas emissions but achieving net zero emissions. Research has shown that there is a high level of uncertainty, a lack of knowledge, and often an inadequate allocation of resources within companies. By presenting opportunities and good examples in this area, BCSDH can support its member companies and the wider business environment” – said Attila Chikán Jr., President of BCSDH. “Accelerating the transition to net zero operations requires a broader partnership that includes government and legislative support, and the Net Zero Advisory Board we launched in January can help with this,” he added.
Research has also shown that in order for companies to set real net zero targets, they need to take big steps in terms of measuring emissions and introducing an internal price for carbon. For those who are just starting the process, reducing waste, investing in energy efficiency, switching to renewable energy, and increasing resource efficiency can be the first steps. But it is important to emphasize that we need to go much further than this to create a real net zero-emission economy in Hungary by 2050.
Efforts to achieve the Paris climate targets need to be significantly increased in Hungary and around the world. One of the goals of COP 26 in November is to set targets for achieving net zero in a uniform and scientifically sound way.
“As hosts of the COP26, the UK is working with businesses, governments, and civil society to drive action across key sectors of the economy to reduce emissions, adapt to the effects of climate change and strengthen resilience, while also striving to “build back better” as we recover from the Covid19 pandemic”– highlighted Paul Fox British ambassador, member of the Net Zero Advisory Board.
Seven of the leading companies included in the research presented their specific commitments:
Daikin aims to achieve zero net emissions by 2050. To this end, it is using more energy-efficient, less environmentally damaging technology to create products with longer life cycles. As an important player, Daikin wants to implement the reuse and recycling of refrigerants throughout the industry.
By 2030, all of E.On’s buildings will be carbon neutral, and its fleet will be electric. It undertakes to reduce its carbon emissions by 30% by 2030 and achieve a 50% reduction in terms of customers’ emissions.
Grundfos aims to reduce its own CO2 emissions and its water consumption by 50% by 2025, and the company aspires to become “climate positive” by 2030. By 2030, they will have contributed to providing safely managed drinking water to 300 million people in need. In addition, through water efficiency and water treatment, they will have saved 50 billion m3 of fresh water
K&H Group undertakes to operate in a climate-neutral manner from 2021, and to reduce greenhouse gases by 80% and to switch to 100% green electricity by 2030.
LeasePlan will already be implementing its green fleet by 2021 and aims to further reduce its environmental impact through a number of customer and consumer-oriented measures by 2030.
Nestlé aims to achieve net zero emissions by 2050. It will reduce its emissions by 30% by 2025, and by 50% by 2030. It aims to achieve this target, among other ways, through the use of renewable energy, an electric car fleet, and the introduction of new technologies, packaging materials, and recipes.
SIÓ-Eckes (Eckes-Granini Group) undertakes by 2030 to set Science-Based Targets to help achieve the 1.5o target. It is committed to reducing greenhouse gas emissions by 50%, and switching to the use of 100% R-PET by 2030.
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Race to Zero
The Race to Zero is the UN-led campaign for a zero-carbon world. Close to 1,400 businesses, including the likes of Facebook, Tesco, LafargeHolcim and Magyar Telekom, and 74 of the biggest investors have joined the global Race to Zero campaign, along with over 454 cities, 23 regions, and 569 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.
Peter Bakker
“Five years ago, by adopting the Paris Agreement, our countries committed to decreasing their greenhouse gas emissions but it was only the beginning. The urgency remains and it’s up to us, governments, private companies and citizens to turn these commitments into reality. This is our shared responsibility!” – French Ambassador Pascale Andréani said in her closing remarks.
“Fighting climate change, climate protection is teamwork. Our common goal is to achieve climate neutrality by 2050, where all contributions count. Renewables are taking over in the power sector in Europe. Next steps in energy transition: replace fossil fuels in transport, industry and heating. Hydrogen will play a crucial role” – German Ambassador Johannes Haindl said. Germany holds the rotating presidency of the European Union from 1 July 2020 which sets the standard for achieving climate neutrality.
“We are proud to be collaborating with the British Embassy and our other partners on the Race to Zero Business Ambitions Forum and working for a carbon neutral world by 2050. Climate change is a global problem and it will take a coordinated response to find global solutions. Canada continues its work to reduce emissions and build resilient communities and a low carbon economy, knowing the strong connection such efforts have with long-term health and financial well-being.” – Canadian Ambassador Caroline Charette said in her closing remarks.
“The Netherlands deems climate actions very timely and important that is why it will host the Climate Adaptation Summit on 25 January 2021, focusing on how we can adapt globally to the changing climate and what solutions need to be scaled up further. Please, join this on-line event which will mobilise governments, companies, organisations and citizens worldwide in order to set out a roadmap towards a climate-resilient future by 2030!” – Dutch Ambassador René van Hell said.
„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.
„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.
„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.
