Sustainable to the nth power: We are going green out of care

More and more consumers are aware that reducing pollution on planet Earth is today’s imperative, as scientists have been warning for years that irreparable damage has already been done and that everything must be done to reduce the negative impact of humans on nature, ecosystems, and climate. Therefore, numerous customers, whether in the B2B (business-to-business) or B2C (business-to-consumer) segment, choose companies that ensure their production has as little negative impact on the environment and as low carbon dioxide emissions as possible, and this trend has also spread to investors, investment funds, financiers, and bankers. Sustainable business is not only a must-have but also in, which raises the price of products in the market, shares on the stock exchange, and attracts investors.

Sustainability with profit

The Paris Climate Agreement calls for a reduction in greenhouse gas emissions and encourages the development of low-emission businesses. Recently, the Croatian National Bank (HNB) announced that the involvement of banks in financing sustainable business is essential, and in a statement signed by Maroje Lang, chief advisor in the Research Sector, and Sandra Švaljek, deputy governor of HNB, securing financing is an important part of the European Green Deal, which allocates a significant portion of funds specifically for so-called green investments.

– Given the enormous amount of necessary investments, it is essential to adapt the entire financial system to achieve this goal. Investors need to be enabled to achieve sustainability goals alongside profit, so financial institutions are beginning to be required to disclose information about the structure of their placements from an environmental protection perspective – emphasizes HNB.

Since many end consumers calculate their own carbon footprint through various applications to minimize it, they expect the same behavior from manufacturers of clothing, food, furniture, cars, and everything they use in life.

Green investments

Heineken has globally committed to achieving carbon neutrality and using 70% of energy from renewable sources by 2030.

– The brewery in Karlovac contributes to these ambitious goals. Thanks to numerous projects and ‘green’ investments from 2008 to today, we have reduced carbon dioxide emissions by almost 60% per unit of product and water consumption in the production of a liter of beer by more than 40%. We use biogas generated in the wastewater treatment process as a byproduct of that process. All this is the result of investments in modernization and increasing the efficiency of technological and production processes, which includes using electricity from renewable sources, modernizing the boiler room, and switching from oil to gas used for its operation – emphasizes Ljudmila Bratko Gašpić, corporate affairs manager at Heineken Croatia.

Solar panels have been installed on the roof of the green warehouse, producing about 395,000 kWh of electricity per year, which has reduced carbon dioxide emissions by almost 120 tons annually, and a modern beer filling line was introduced a few years ago, significantly increasing the energy efficiency of the process, note Heineken Croatia.

Less emissions

Podravka also values sustainability. Matija Hlebar, head of sustainable development at Podravka, says they continuously develop and improve their business processes, products, and services to reduce the negative impact of production on the environment.

– The foundation of all activities we undertake is defined by our environmental protection policy, which aims for continuous improvement and reduction of all types of pollution. By implementing it, the company aims to responsibly manage all resources – states Hlebar.

In 2020, the total waste of Podravka was reduced compared to 2019, and through more efficient sorting, the amount of municipal waste decreased by 13% compared to the previous period.

– By investing in a solar power plant at the production hall of the Kalnik factory in Varaždin and in machines with lower gas consumption, greenhouse gas emissions into the atmosphere have been significantly reduced – emphasizes Hlebar, adding that this benefits the reputation of Podravka’s brands as consumers today are increasingly aware and place socially responsible behavior of companies high on their priority list.

Therefore, Podravka’s focus is on strengthening the position of existing brands, and all new product launches are accompanied by sustainable business practices.

Part of the supply chain

Reducing energy consumption has been one of the constant priorities of Vetropack Straža from Hum na Sutli, the largest Croatian producer of glass packaging, for years. They focus on increasing the energy efficiency of the production process and facilities, as well as electrifying internal transport and selecting raw materials. Solar panels have also been installed in this factory for their own needs.

– In the last 15 years, we have reduced relative carbon dioxide emissions per ton of net production by 20%. The development of technology has also enabled us to produce so-called lightweight glass, i.e., glass packaging with thin walls. The significantly lower resource consumption and high proportion of recycled material in the production of lightweight glass bottles have allowed for a significant reduction in carbon dioxide emissions – highlighted Tihomir Premužak, director of Vetropack Straža.

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They hold numerous certificates and are also working on implementing new ones, which helps them attract potential customers, and they emphasize that in the future, certified sustainability of production will be an important component of their marketing approach. However, even existing customers have increasing demands regarding carbon dioxide emissions year after year.

– Our product is part of the supply chain of every customer who uses glass packaging for the placement of the final product and as such must meet their business standards. Without our reduction of carbon footprint and other sustainable efforts, our customers cannot successfully achieve their own goals – emphasizes Premužak.

No more melting

Vetropack Straža is also participating in the initiative of the European glass industry, which launched a new label for glass packaging last year, designed to highlight the health and environmental benefits of using glass as a packaging material at first glance.

– Investments in sustainable development and technologies increase the cost of the production process, but despite this, we want to operate sustainably and not allow ourselves to fall behind potential competition; on the contrary – we strive to be leaders in this trend – emphasizes Premužak.

For the manufacturer of components made of gray and ductile iron, Ferro-Preis from Čakovec, which produces about nine thousand tons of castings annually, reducing carbon dioxide emissions is extremely important, among other things, to better position its brand, so they continuously invest in new, more efficient, and ‘greener’ technologies. They have replaced the iron melting technology, using medium-frequency electric furnaces instead of coke ovens, which provide the most efficient and environmentally friendly melting system.

– Just in that part of the production process, carbon dioxide emissions have been reduced from seven thousand tons per year to 250 tons. We have also implemented a closed recirculation cooling system for electric furnaces, which reduces water consumption, so it has been reduced eightfold per ton of produced melt, and gas consumption is almost halved – emphasizes Marijan Nöthig, director of the Ferro-Preis factory.

In the production process, they use a large proportion of input materials that arise as byproducts from other manufacturers, such as scraps of steel plates, sheets, etc. On the other hand, their products have a lifespan of several decades and can always be fully recycled again.

When asked if they plan any further activities to reduce their carbon footprint in the upcoming period and how they intend to implement them, Ferro-Preis responds that they are currently active on several such projects. They are working on increasing the efficiency of sand regeneration, better utilization of production capacities per unit of product, extending the lifespan of products, and planning to install a solar power plant to obtain part of their energy from renewable sources and thus further reduce their carbon footprint.

– Everything we have invested in environmental preservation has been recognized by our customers. This is especially evident in business with global companies and Western European and Scandinavian firms. They seek certificates and evidence of sustainable business practices, the share of renewable energy sources in production – because our products are part of their final products – and insight into the activities we undertake to reduce our carbon footprint. Therefore, the Ferro-Preis brand, precisely because of its relationship to the environment in many developed countries that care about sustainability, is excellently received – emphasizes Nöthig. 

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