Climate protection and adaptation Archives

Circular factory development in Nyírbátor

Alternative energy use and energy efficiency, Circular economy, Climate protection and adaptation, Waste management, Water usage

“Our circular factory development project in Nyírbátor is special because the environmental footprint of our manufacturing activities is undeniable, so in addition to economic growth, we must also pay special attention to introducing a number of environmental innovations to reduce or even neutralise this footprint.”
Tamás Ács, Managing Director

Company name:

Unilever Hungary Ltd.

Implementation Year:

2021 – 2023

Focus Areas:

Circular economy, Climate protection, climate adaptation, Waste management, Alternative energy use and energy efficiency, Water use

Program Objective:

Between 2021 and 2023, the HUF 15 billion expansion of our Nyírbátor household chemical plant was carried out, with a strong focus on environmental innovation and circular industrial solutions, in addition to technological modernisation.
Our Nyírbátor unit is the Group’s most efficient household chemicals factory in Europe, covering 2/3 of the Eastern European region with products manufactured here. Circular solutions are inspired by the Unilever Group’s sustainability ambitions. This helped in the planning, implementation, internal reporting and impact measurement, as the ambition to go green was not unknown even in a small country like ours and thus had the support of the management.

Program Measures and Commitments:

The factory already has a number of green solutions in place, such as the fact that around 70% of the packaging material produced here is made from recycled plastic, that more than 30% of the waste water generated here is recycled in-house and the rest is fully filtered and cleaned in the factory before being released back into the environment, that 100% of the electricity from the grid will be generated from renewable energy sources from 2021 and that 75% of their entire manufacturing operations will be carbon neutral from 2024. However, the latest factory expansion and the construction of an automated high-bay warehouse have taken the practical implementation of the circular economy one step further. No waste was landfilled during demolition or construction, as it was either fully recycled on site or reused through expert partners. Unilever’s so-called “zero waste to landfill” strategy has inspired many innovative waste management solutions in the past, but the example of Nyírbátor is the one we are most proud of at the moment.
How sustainable is our solution? The inefficient treatment of industrial waste and its eventual landfilling is an outdated and polluting method, but there is an alternative. In addition, the increasingly stringent regulatory environment (both at EU and local level), rising transport costs, rising raw material prices are clear indicators of over-consumption of raw materials and the irresponsible and often wasteful use of the earth’s resources. Against this background, we believe that our solution is not only sustainable, but will also be the only viable option in the near future for all industrial players who wish to remain resilient in the face of various economic and environmental anomalies.

Program Impact and Results:

54 obsolete industrial silos and buildings were demolished at the outset due to the factory expansion, the remains of which were recycled in the following way: concrete rubble (13,000m3) was crushed on site and used for the foundations of the new hall building. The brick waste (6,000m3) was used by our partners for the stabilized soil of a solar park near Nyírbátor and for the stabilization of internal roads within the site. Iron waste (3000tonnes) was purchased from us for automotive purposes.

Keywords:

circular factory development

12.12.2024

Hungarocell Green Program

Circular economy, Climate protection and adaptation, Waste management

“Sustainable, environmentally conscious operations are a key element of our strategy and long-term business plans. As a large ESG-conscious company, we are particularly proud to be the first in the Hungarian construction industry to have established a circular economy programme. In addition, our factories use almost zero waste production technologies and conscious energy management to further reduce the company’s environmental footprint.”
Tibor Dávid, CEO

Company name:

Masterplast Plc.

Implementation Year:

2020

Focus Areas:

Circular Economy, Climate change and adaptation, Waste management

Program Objective:

As a manufacturer and distributor of Hungarocell material, our aim is to recycle as much of the waste generated during its use as possible. As part of our Hungarocell Green Program, we recycle to produce a thermal insulation material called Thermobeton. The programme therefore implements the circular economy by not only reducing the amount of waste generated by the use of the building material we sell, but also by creating a new energy-saving material, thus reducing the carbon footprint. Masterplast’s target is to recycle 10,000 m3 of polystyrene cuttings residue per year.

Program Measures and Commitments:

At the heart of our programme is always that the products we manufacture and distribute are in line with the values our company stands for, and these include environmental responsibility. Our innovative programme is the first and only one of its kind, and its steps are simple: the consumer buys the polystyrene, then collects the cuttings in the bag previously purchased. He then drops it off at one of our partners in the national network of Eco-Points, which Masterplast then returns. It creates a recycled product, Thermobeton, which the consumer can also buy at the Eco-Points mentioned above. In summary, the product contributes to reducing carbon emissions in buildings throughout its life cycle. We started small and now there are over 100 Eco-Points throughout the country where you can join us. As well as providing an environmentally responsible solution, it is also a clear cost-cutting option, as consumers are exempt from the cost of polystyrene waste treatment. So when you drop off unused polystyrene to our partners, we can use it to produce a new, excellent thermal insulation material. So not only are we recycling a material that would have become waste, but we are also doing good in the long term: thanks to Thermobeton, the buildings we construct will be much more energy efficient.

Program Impact and Results:

Our previous target was to save 10,000 m3 of material from becoming waste each year, as 100% of the material is recycled in the manufacturing process. Now this figure stands at 6,000 m3 . With Masterplast products and insulation techniques, energy efficiency improvements of up to 50% and a corresponding reduction in emissions can be achieved on average per building. We put great emphasis on promoting the Programme, so that, by combining the various communication channels (television, website articles, advertisements, trade events), it has already reached hundreds of thousands of people.

Keywords:

recycling, circular economy, thermal insulation, energy savings, carbon reduction

12.12.2024

Implementation of circular economy in a sustainable way

Circular economy, Climate protection and adaptation

“The Master Good Group’s business philosophy is environmentally sustainable management. For us, sustainability is both the present and the future of management. A commitment to sustainability is a mission for us, and we feel it is our duty to be at the forefront of addressing environmental challenges. We are committed to environmental responsibility, and we were the first in our country to implement full-circle farming.”
László Bárány, Managing Director

Company name:

Master Good Ltd.

Implementation year:

continuously

Focus Areas

Climate change and adaptation, waste management, circular economy

Program Objective:

Master Good Ltd is a Hungarian food company group with the mission to produce high quality food for the people. As a leading player in the poultry industry, we aim to be the greenest poultry company in Europe. We have also created the forward-looking full circular economy model to set an example and raise awareness of the need for operators to address environmental challenges alongside their commitment to sustainability.

Program Measures and Commitments:

We were the first in Hungary to implement full circular economy. In recent years, we have placed great emphasis on developing environmentally friendly solutions for the whole area of closed integration. We have created a livestock housing model that features the latest technology, including windows that provide natural light and computer-controlled ventilation systems. The management, mechanisation and use of technology reduces the environmental impact, but ensures the most efficient animal housing available, guaranteeing maximum animal welfare. We are the only poultry farm in the world (Flagship farm Baktalórántháza) to have been awarded the McDonald’s Flagship Farm certification.
A modern innovative approach and progressive practical farming puts this farm at the forefront. Our professional greenfield investment project for a healthy and sustainable environment is the commissioning of our Organic Material Treatment Centre, which is equipped with the latest state-of-the-art technical and biotechnological machinery. The R&D project will use an environmentally friendly process and mechanisation that will enable the processing and sterilisation of deep litter poultry manure on an industrial scale, and the resulting fermentate (manure pellets) will be sold as organic nutrients and recycled back into the soil. Other steps include the operation of a 15-hectare solar farm, continuous improvement of the technology used and company processes to take account of climate change, the purchase of environmentally friendly packaging materials and the proper management of food waste.

Program Impact and Results:

Achieving sustainable production and ensuring quality to consumers has been a major challenge for us as a Hungarian food company. However, having achieved this goal, we can now say that we are processing everything in our production process in a profitable way, apart from the chicken pecking. With the help of our installed solar panels – an investment at the start, but later on it will reduce our operating costs by saving energy – we will cover more than one third of the Group’s total electricity supply with green energy by the end of 2023.

Keywords:

Circular economy in the food industry

12.12.2024

TORK PaperCircle program

Circular economy, Climate protection and adaptation, Waste management

“For us, sustainability is not just a slogan or a fashion, but a business concept and product strategy that has been in place for years: as the largest forest landowner in Europe, Essity’s former parent company, the Swedish forestry company SCA, has always been committed to sustainable management. For me as a family man, it is also important to preserve the planet for the next generation, and my children hold me accountable for what I do for the environment in my work.”
Zoltán Venter, Managing Director

Company name:

Essity Hungary Kft.

Implementation year:

2018

Focus Areas:

Climate protection and adaptation, Waste management, Circular economy

Program Objective:

We have committed to achieve net zero greenhouse gas emissions by 2050. In the short term, we have committed to a 35% reduction in our emissions from manufacturing and raw material use by 2030. To achieve net-zero emissions, we have developed an eight-point climate plan, including investments in technologies that improve energy and resource efficiency, and focus our innovation competence on waste reduction and sustainable solutions. We offer services and products that fit into the circular system.

Program Measures and Commitments:

As a responsible company producing paper products, it is important that we operate business models that include the efficient recovery of used products and use technologies that are capable of producing recycled products of high quality.
We are constantly innovating to achieve this, and in 2018 we set new and ambitious targets to reduce waste – launching the world’s first handkerchief paper recycling scheme, PaperCircle. Available in 15 countries across Europe, the scheme involves washroom users hand-drying their paper hand towels and then throwing them into a separate collection bin, which is then separated by cleaners when they empty the bin. Our recycling partner then collects and transports the collected hand towels to the nearest Essity factory. Essity then uses the collected hand towels to make new paper products, so the cycle continues and new products are returned to our customers.
Another important milestone is the use of alternative raw materials, such as wheat straw, which is the plant fibre left over after wheat is harvested. At present, almost half of the world’s wheat straw is classified as waste, but value can be created from it. Our manufacturing process produces a pulp that is soft, shiny and strong, similar to the pulp made from fresh wood fibre. This is used by several of our businesses to make hygiene products. Our circular innovation reduces the environmental impact of our products, as this raw material is recyclable and requires less water and energy to produce.

Program Impact and Results:

We calculate that our PaperCircle programme can reduce the amount of waste going to landfill by at least 20% and improve the carbon footprint of the point of use by up to 40%. For example, an office of 50 people could reduce its monthly carbon emissions by almost 12 kg by using the service. We’ve also created a calculator that allows anyone to work out how much the company, office or institution they work in could contribute to reducing their carbon emissions annually by joining Tork PaperCircle.

Related keywords:

recycling of hygiene products

12.12.2024

Loop by Daikin

Circular economy, Climate protection and adaptation

“At Daikin, we are committed to playing an active role in solving social problems related to global warming. To this end, we are investing in innovation and developing local manufacturing capacity in Europe to deliver reliable, smart and energy-efficient heat pumps that can help us make the transition to a carbon-neutral society.”
Balázs Zuggó, Managing Director

Company name:

Daikin Hungary Kft.

Implementation year:

2020

Focus Areas:

Climate protection and climate adaptation, Circular economy

Program Objective:

Daikin has set itself the goal of becoming a carbon neutral company by 2050, supporting the European Union’s efforts to reduce carbon dioxide emissions. The Group is convinced that this can only be achieved by working together, with the cooperation of all stakeholders.
However, the increase in refrigerant use due to the rise in the number of appliances produced by the sector is raising concerns about environmental impacts, particularly climate change.

Program Measures and Commitments:

The Loop by Daikin project initiative is a joint action of Daikin Central Europe, Daikin Europe and Daikin partners to create a circular economy of refrigerants.
The basic principle of the programme is simple: under an agreement with investing customers, the used refrigerant is recovered from existing systems, restored to the same quality as the new refrigerant, with the support of a network of service and refrigerant distribution partners. Then the recovered refrigerant is used in new VRV units manufactured and sold in Europe. The programme is a great example of the circular economy in action, as it spans Daikin’s entire value chain and also gives business partners the opportunity to join. We already have customers in Hungary who have joined the programme.
The use of reclaimed refrigerant also helps to comply with the F-gas regulation, as used refrigerants are not subject to refrigerant quota reductions, thus supporting the growth of the HVAC-R sector in a sustainable way. Audit guarantees that the quality of the reclaimed refrigerant is the same as the new refrigerant. The independent verification process also ensures that the reclaimed refrigerant is only used for factory charging of Loop by Daikin branded VRV units.

Program Impact and Results:

The Loop by Daikin program started with the reuse of one of the most widely used refrigerants, R-410A, tailored to selected Daikin VRV models. Thanks to its success, the company decided to extend it to all VRV units manufactured and sold in Europe from November 2020; and to newer refrigerants (e.g. R32, R134a) and other product groups (e.g. liquid chillers). The programme currently avoids the production of 400,000 kg (3,590 tonnes of CO2 eq emissions) of new refrigerant. More than 20,000 Loop units have been sold so far, including the office building where Daikin has its headquarters, which also has Loop VRV units and is looking to expand the programme further.

Related keywords:

recycling of refrigerants

12.12.2024

Indoor community composting in an educational circular system

Circular economy, Climate protection and adaptation, Waste management

“Our development is a composting system that actively helps in environmental education and awareness raising. With our solution, every community can actively contribute to a more livable and greener urban environment in a playful way.”
Emese Pancsa, Managing Director

Company name:

Compocity Kft.

Implementation year:

2022

Focus Areas:

Climate protection and climate adaptation, Waste management, Circular economy, Consumer awareness

Program Objective:

Compocity Ltd. is a sustainability service startup operating since 2020, supporting circular economy challenges in urban environments with a smart composting service. Through their activities, from sustainable practices in smart cities to improving soil health, workers are taking action against the impacts of climate change in a way that is driven and powered by community collaboration itself. A smart composting device and its playfully educational app with its tracking solution keep the value chain from apple pip to happy urban vegetation in one hand. Employees can thus be connected to ESG goals at individual and community level.

Program Measures and Commitments:

According to the UN, by 2050, seventy percent of the population will live in cities, with a significant proportion working in office environments. Thirty percent of office waste is organic green goods, for which Compocity has created an urban ecosystem system: CompoBot, a composting chef, uses a microorganism cocktail to create a nutrient-rich soil food. The cycle is provided by Compocity through its partnerships to care for the urban green issue, but where there is an openness to do so, communities themselves can participate in the process and return nutrients to urban soils and plants in the form of planting. This is complemented by a playful mobile app that allows office communities to monitor their work and environmental impact. All this has a community-building and educational power, in addition to the data collected to support companies’ sustainability efforts. The urban Miyawaki mini-forest method used by Compocity provides both urban compost utilization and a maximized community customer experience in a species-rich ecosystem, closing the urban loop. Not only is the home-grown method using native vegetation, but Compocity’s development includes a range of habitat creation activities from insect hotel making to synodu to increase biodiversity. Their message is that you can enter anywhere in the cycle either by installing Miyawaki mini-forests and creating nutrients for it, but you can and should avoid the creation of food waste in an easy, playful and value-creating way.

CompoBot monitors the material thrown in, sends feedback to the user and illustrates the usefulness at scale through everyday examples. A monthly report summarises for the company the equivalent activities of different CO2 emissions, key information on recovery and community activities, highlighting also the individual involvement of employees.

Program Impact and Results:

Currently reaching more than 15 large companies with nearly 20,000 users per day. Over the next 5 years, their impact will be: 75,000 Compobots in operation, 136,500 tonnes of organic material produced, 819,000 tonnes of CO2 equivalent emissions prevented, 15 million users reached per day, 45.5 million trees planted to channel their nutrient needs into various environmental benefit projects and to measure the benefits, provide feedback and further build the motivation system that makes corporate responsibility locally accessible.

Related keywords:

circular economy, food waste, community composting, sustainability pedagogy

12.12.2024

Digitalisation in food waste processing

Circular economy, Climate protection and adaptation, Waste management

„At Biofilter, we are constantly striving to achieve new milestones in environmental protection and efficiency, and to support the implementation of the circular economy and the growth of renewable energy sources through our developments.”
György Deák, CEO

Company name:

Biofilter Zrt.

Implementation year:

2023

Focus Areas:

Climate protection and adaptation, Waste management, Circular Economy

Program Objective:

By collecting waste, BIOFILTER Zrt. prevents its accumulation and its negative impact on the environment, and by recycling it, it helps to produce bio-energy carriers. The collection and recycling of food waste from restaurants and other catering establishments has been operating in Hungary since 2004. Although a number of campaigns have been launched to reduce food waste, the amount of food waste generated is still significant and modernisation of processing procedures has become essential to ensure proper pre-treatment of waste. In response to these trends, Biofilter has been one of the first to transform its food waste processing plant to make the digital transition.

Program Measures and Commitments:

The new industrial robotic arm represents a huge step forward in the company’s food waste processing process. The company’s Lepsény plant receives around 600-800 blue drums of food waste per day. The robotic arm will complement the manual processing of these. The robot guides the incoming food waste from the barrels to the sorting and grinding system. After pouring, it can determine by weighing whether the barrel has been emptied properly or whether extra help is needed to empty it. If the keg is properly emptied, it is placed on the conveyor of our automatic keg washing system, where a pre-washing process cleans out any debris left in the keg, which is then returned to the grinding hopper to ensure nothing is wasted.

The first stage of the grinding hopper is a sorting belt, where inappropriate materials are sorted by hand. For example, knives or forks often end up in the barrel, so a metal detector is built into the belt. From the sorting belt, the waste flows into a grinder, which can grind the food waste into a size that can be used more efficiently in biogas plants.
The sorted, shredded food waste is transported to biogas plants in closed, containerised trucks for recovery. Biogas production results in renewable energy, electricity and heat. The industrial robotic arm can process up to 1,000-1,200 barrels per day, increasing the capacity of the plant.

Program Impact and Results:

Over the past years, the amount of food waste collected has gradually increased, and in 2022, Biofilter Zrt. has processed nearly 10,000 tonnes of food waste, of which 100% has been biogas. This is the equivalent of the annual electricity consumption of nearly 6,500 households in renewable energy production. Biofilter Zrt. is constantly striving to achieve new milestones in environmental protection and efficiency and to support the implementation of the circular economy and the development of renewable energy sources.

Keywords:

circular economy, food waste, digitalization

12.12.2024

Unique green strategic objectives in the small parcel business

Alternative energy use and energy efficiency, Climate protection and adaptation, Reduction of air pollution, Sustainable supply chain

Sustainable and environmentally conscious development is a core value of DPD Hungary Kft. The continuous reduction of emissions is in line with social expectations and we are committed to this goal together with our customers, partners and employees. Many improvements are being made to make us an international reference for sustainable parcel transport.
Szabolcs Czifrik, managing director

Company Name:

DPD Hungary Kft.

Implementation Year:

2023

Focus Areas:

Climate protection and adaptation, Alternative energy use and energy efficiency, Reducing air pollution, Sustainable supply chain

Program Objective:

The Geopost Group, of which DPD Hungary is a part, is the first global parcel delivery company to have both short and long-term CO2 emission reduction targets approved by the Science Based Target Initiative (SBTi).

The scientifically validated target of achieving net zero emissions by 2040 puts Geopost on a clear path to becoming the international benchmark for sustainable delivery.

Short-term target: 43% reduction in CO2 emissions by 2030 (compared to 2020 base year)
Long-term target: 90% reduction in CO2 emissions by 2040 (compared to 2020 base year)
Ambition: net zero emissions by 2040, with 10% of remaining emissions offset by 2040

Program Measures and Commitments:

By 2025, 350 European cities will have low-emission vehicle transport and an 83% reduction in greenhouse gas emissions.

To reach this target, we will also convert the energy supply of logistics sites and offices to renewable energy sources and increase energy efficiency.

Our aim:

70% of energy from renewable sources by 2030 (100% by 2035)
Increase the share of electric vehicles in the company car fleet to 90% by 2030 (100% in 2035)

DPD Hungary Kft. also contributes to the Group’s goal to make Geopost an international reference for sustainable transport and a leading supporter of the acceleration of e-commerce.

Geopost aims to provide direction to the industry. The small parcel delivery business in Hungary is highly competitive, so our aim is to stand out from the competition by delivering a high level of customer-oriented service and by implementing a uniquely ambitious sustainability strategy. It is increasingly important for our partners that our emissions reductions also reduce their carbon footprint. To illustrate these results, we have developed a tool that allows you to track the GHG emissions associated with the transport of your parcels in your “myDPD for business” account.

Today, more than 30% of our fleet of nearly 700 vans is already electric, but we will add 15 more by the end of the year until we gradually reach 100% by 2030. 5 new electric trucks will join DPD’s fleet early next year and 5 more in the second half of the year to replace conventional diesel trucks on some of the backbone routes within the country. This move will lead to a very significant reduction in GHG emissions.

We are also gradually converting the energy supply of logistics sites and offices to renewable energy sources and increasing energy efficiency. At present, our depots have a total of 400kW of solar panels.

Program Impact and Results:

The number of electric cars in the national fleet has increased to more than 30% in recent years.
Kecskemét, Pécs, Dombóvár, Komárom, Győr, Szolnok, Miskolc, Szeged, Debrecen – in these cities, only electric cars are used for deliveries.
By the end of 2023, 148 fast chargers and 2 electric chargers will have been deployed to serve our electric fleet in 8 locations.
We have also increased the share of our energy generation from solar panels, in our rented depots and at our parcel sorting facility in Budapest.
We purchase the majority of our electricity from renewable sources.
In the first quarter of 2024, we recorded a 21% increase in the number of parcels compared to 2023, but our GHG emissions did not increase during this period. This shows that our emissions per package have decreased significantly as a result of our measures and investments.

Keywords:

sustainable transport, SBTi, climate protection, electric fleet, GHG emissions

11.12.2024

Priorities and initiatives to promote sustainable agriculture

Biodiversity, Climate protection and adaptation, Stakeholders, local communities, Sustainable supply chain

“Syngenta is the world’s leading agricultural company, providing effective crop protection products and high-yielding seeds to millions of farmers around the world. This is not only an opportunity but also a responsibility for us to take meaningful steps towards sustainable solutions that support natural diversity. That is why our strategy includes a strong focus on biodiversity and climate protection with concrete commitments, and we are confident that we can set an example for other companies and the industry.”
Éda Pogány, Sustainability Lead, Syngenta Europe

Company Name:

Syngenta Hungary

Implementation Year:

From 2022

Focus Areas:

Climate protection and adaptation, Biodiversity, Stakeholders and local communities, Sustainable supply chain

Program Objective:

We aim to reduce our emissions and energy use from our own operations by 38% by 2030 compared to 2022. As a large part of our carbon footprint comes from our supply chain, we are working with them to make our manufacturing processes more efficient and map the best path to carbon neutrality.

We need to produce enough safe food to feed 8 billion people every day worldwide, while reducing the sector’s environmental impact and countering the negative effects of climate change.

So we must strive to do it all at once:

to reduce the negative environmental and social impacts of the sector,
restore the health of natural resources and soil, and
increase biodiversity, and
meet the increased demand for food.

Program Measures and Commitments:

In partnership with producers and other stakeholders, we have recently identified four sustainability priorities:

1.Higher yield, lower environmental impact

To feed the world’s ever-growing population, we are increasing yields by reducing the environmental impact of agriculture through continuous innovation and sustainable technologies.

We are developing and making widely available sustainable, innovative solutions that are more efficient, can be applied in a targeted way and provide benefits for nature, farmers and consumers alike.

2.Renewing soil and nature

Promoting the adoption of regenerative agricultural practices

The use of regenerative farming techniques and precision use of nutrients and pesticides can be effective in improving soil health and increasing biodiversity. Our research in this area aims to use scientific methods to show how regenerative practices can be effectively applied under changing agroclimatic conditions.

3.Improving the well-being of producers

Improving the profitability of small farmers by providing access to seeds, crop protection, finance, markets and the necessary knowledge

Syngenta’s experts are constantly educating themselves in the most important and rapidly changing areas of agronomy and are up-to-date with digital, internet and AI-based solutions to provide smallholder farmers with personalised advice on a daily basis.

4.Sustainable business operations

Reducing the environmental impact of our own operations and supply chain, fostering a diverse and inclusive corporate culture, and ensuring the health and safety of our employees

As a large part of our carbon footprint comes from our supply chain, we are working with them to make manufacturing processes more efficient and explore the best path to carbon neutrality. Workplace safety is always our top priority and we are constantly working to maintain and improve our diverse and inclusive business culture.

Program Impact and Results:

One of the most important tasks in meeting the targets is to attract and involve farmers. Our staff are in the fields with farmers every day. They know them and help them make the regenerative transition, with biological control, digital solutions, expert advice, measurements, research and development, modelling of environmental, agronomic and economic outcomes, and the development of disease-resistant crops that can cope with extreme weather conditions and good water management.

Keywords:

biodiversity, regenerative agriculture, value chain, climate protection and mitigation

11.12.2024

K&H agricultural CO2 calculator

Biodiversity, Climate protection and adaptation, Reduction of air pollution, Sustainable supply chain

“Sustainability requirements are seen by many as an obligation and a challenge, but we see them as an opportunity for progress. Accordingly, we are supporting the sustainable development of the domestic agriculture and food industry as an expert advisor and innovative guide by launching the K&H agri CO2 calculator. The calculator, which supports the awareness and sustainable management of businesses, can determine the carbon footprint of individual farms in the main crop and livestock sectors on the basis of calculations that meet scientific criteria.”
Libot Guy, CEO

Company name:

K&H Group

Implementation Year:

2023

Focus areas:

Reduction of air pollution, Sustainable supply chain, Climate protection and adaptation, Biodiversity

Program Objective:

Climate change, the demands of the Common Agricultural Policy and tougher consumer expectations are also pushing agriculture towards more environmentally friendly solutions. In the West, the affluent consumer class is now taking sustainability into account and is also looking at the carbon footprint of food.
In Hungary, affordability is still the most important consumer expectation for food, but consumer awareness of environmental sustainability is on the rise. Consumers are starting to pay attention to ethical and environmentally friendly production methods, they are prioritising locally produced food and we are seeing more and more initiatives to reduce food waste.
These trends are affecting the entire food industry, right down to the raw material producer. It is therefore important that all points in the supply chain are alert to these changes and are able to adapt their operations and product offerings accordingly.

One of the foundations for sustainable agriculture is GHG reduction. We are committed to reducing the GHG intensity of our agricultural funding by 21 percent by 2030 and 34 percent by 2050, but to do this we need to know the emissions of the farm. In order to reduce the carbon footprint of an economy, the first step is to know the exact numbers. In our experience, this data-based approach is still lacking in domestic practice, which is why we have created the free K&H agricultural CO2 calculator to provide agricultural companies with a good starting point for quantification and better understanding. The calculator was first launched in October 2023 for use by crop producers, and was extended in December 2023 to allow livestock producers to use it too.

Program Measures and Commitments:

In the coming years, the number of companies that will be required by the EU to report on their sustainability practices will increase significantly, with SMEs with more than 250 employees being covered from 2026, i.e. for the financial year 2025. We see that, for the time being, the lack of sustainability expertise and culture is a major challenge. Many of our clients are not ready to provide sustainability data (e.g. CO2 emissions), so our aim is to help them with this through the calculator. The calculator looks specifically at GHGs of agricultural origin (CO2, CH4, N2O), for direct (Scope1) and indirect (Scope2) emissions.

Beyond sustainability reporting, it is important for us to strengthen the sustainable profitability and crisis resilience of our clients. The calculator can also help them in this respect, as by filling it in they can keep track of how much energy (petrol, diesel, gas, etc.) and input materials (e.g. fertiliser, organic fertiliser, etc.) they have used in their production and whether they can reduce the quantities used by using them more intelligently and precisely.

This not only helps them to reduce their negative impact on the environment, but also to achieve significant cost reductions, which greatly helps to boost their profitability. It can also be of significant economic benefit to our agricultural commodity producer customers if they can demonstrate to their larger customers (retail chains, major food companies) that they are taking conscious steps and actions towards sustainability and are seeking to reduce their carbon footprint. Completing the calculator is also an excellent proof of this, as any further sustainability action can be based on this actual data. And after sustainability investments and actions have been made, you can check again how much your GHG emissions have decreased compared to the baseline, and quantify the reduction in CO2 emissions.

In addition to innovative financial solutions, we are promoting business sustainability with new, modern, easy and quick-to-use tools, such as the calculator. The development will help K&H to strengthen its relationship with agri-food companies and our partners to operate more stably and efficiently, increasing their competitiveness. There is a growing openness to use the calculator on the part of companies. On the one hand, this is because it gives companies the opportunity to present their sustainability results to their customers and partners. On the other hand, they plan to use the calculator’s results as an important element of their own sustainability reporting. Thirdly, there are customers who want to use the calculator to increase their company’s value and reputation.

Program Impact and Results:

So far, more than 40 companies have filled in the calculator. The results already show that the average national gross emissions in the crop sector are close to 2,000 tonnes of CO2, while in the pig sector they are 3,600 tonnes of CO2 and in the cattle sector they are over 9,200 tonnes of CO2 – confirming international estimates that there are significant differences in emissions between sectors at the domestic level. Perhaps even more illustrative of the differences are the gross specific emissions, which are 1.87 tonnes CO2/ha for crop production, 0.76 kg CO2/kg milk for dairy production, 1.66 kg CO2/kg live weight for pig production and 5.15 kg CO2/kg live weight for the cattle sector. These results also provide an opportunity to compare domestic emissions with international data. These show that while the average emissions of the domestic agricultural sector are 547 tonnes of CO2 per million EUR assets, the international figures are 1,528 tonnes of CO2 per million EUR assets, i.e. domestic emissions are only about a third of the Western average.

Keywords:

calculator, CO2 emission, agriculture

11.12.2024

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