Sustainability by CorD Magazine

Sustainability

COMMENT

Do Acceptable SDG Goal

TRADE-OFFS EXIST?

Sometimes, when lucrative opportunities for economic growth arise, both governments and businesses look for trade-offs among the SDG targets that can be made at the expense of citizen wellbeing, thus pushing sustainable resource use, along with other commitments stemming from Agenda 2030, to the periphery of their attention

ustainability is most often defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. The concept has three main pillars: economic, environmental and social, which were transcribed into UN Agenda 2030 and its 17 Sustainable Development Goals (SDGs), and adopted in 2015. The SDGs address economic and social goals, as well as ecological sustainability challenges. That is to say, both globally and at the national level, countries that embrace the SDGs subscribe to an approach that places the same priority on efforts like improving living conditions for those in need and preserving the ecological integrity of the planet for future generations. Yet, this task is made tougher by the fact that opportunities for economic growth may sometimes jeopardise sustainable resource use. Thus, both governments and businesses

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Mining is seen as one of the industries that will be pushed by regulators to adhere to “net zero”, as the major guiding principle for business that was reinforced at the recent COP26 Conference in Glasgow. This is certainly important information for Serbia, where mining is increasingly being considered as a vehicle for accelerated growth deliberate over whether to seek trade-offs among the SDG targets that come at the expense of citizen wellbeing. The recent 26th UN climate change conference, officially known as the 26th Conference of the Parties (or COP26), which took place in Glasgow, clearly suggested that Climate Change (SDG 13) might play a pivotal role in fulfilling

all of the SDGs, if not the majority of them. In other words, it seems that achieving the 2030 Agenda will be impossible without achieving serious progress in addressing climate change. As a result, all countries are expected to revise their Nationally Determined Contribution (NDC) to reflect this ambition and come up with a detailed plan of how they will reduce the level of harmful greenhouse gases that they emit. This is certainly relevant for Serbia, which hasn’t exerted sufficient efforts to contribute to the overall goal of restricting global warming to 1.5° Celsius above pre-industrial levels. One of the major steps in that direction is moving towards a green economy and clean renewable energy. These are today key terms that can be heard across domestic state administration, businesses and among ordinary citizens and which demand that commitments made public are turned into an applied reality. It goes without saying that companies play an important role in that endeavour. Some of those that already embraced the SDGs as part of their market strategy, in order to distinguish themselves among others as responsible citizens, are now turning to “net zero” as the major guiding principle of their businesses. In that respect, it is important to know that metals mining is considered one of the world’s dirtiest industries, responsible for at least 10% of anthropogenic greenhouse gas emissions. One of the outcomes of COP26 is expected to be the applying of further pressure on mining companies to become more responsible through increased regulation aimed at reducing emissions. Many see climate change litigation and the rise in climate activism, climate disclosures and sustainable financing as the key factors that will shape public attitudes towards economic opportunities that stem from mining.

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INTERVIEW PETAR ĐUKIĆ, FULL PROFESSOR OF THE FACULTY OF TECHNOLOGY AND METALLURGY, UNIVERSITY OF BELGRADE

FORCING THE LAUNCH OF MINING

COULD PROVE CALAMITOUS We haven’t responded to many of the challenges confronting sustainable development in Serbia. Still, there is one thing that has improved. And that is environmental awareness and the culture of sustainability, especially among the smaller, younger and particularly educated sections of the population. If we work on that even more, new generations will be much more responsible towards their heritage than we’ve been

n the ongoing discussions of the current juncture pertaining to various projects that have a strong environmental impact, we get the impression that the Serbian public is drastically polarised and perceives environmental protection and economic development as diametrically opposed extreme poles without a “middle ground”. Do we need to

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better select projects, or to set different public policies regulating economic development, or to deal with the better provision of information? To find answers to these and other questions, we spoke with Petar Đukić, a professor at the University of Belgrade’s Faculty of Technology and Metallurgy and an expert in the field of sustainable development.

“Polarisation didn’t arise from the ecological perception of reality, but rather from the shaken integrity of the government and trust in it, but also due to the crisis of all social values caused by the destruction of institutions that had collapsed already. It is similar across almost the whole world. Institutions only function if you are certain that people’s will and power will not

SILENCE

LIMITATIONS

SHORTCOMINGS

Every government sometimes gets into a public interest conflict, but scientists and experts should never permit that to happen to them. They have no right to passivity and silence

Here in the Balkans, we’re individually too weak, powerless and small, and the regional effects of climate change are too strong for us to have our own national strategies

Global policies are insufficiently integrated into our institutional frameworks, which ensures they’re not sufficiently operable at a practical level

be above institutions and laws. Thence arises also this polarisation, which leads nowhere,” says our interlocutor. To what extent are the debates that we have on this topic in Serbia indigenous and specific to our circumstances, and to what extent do they represent an echo of the very serious debates on economic progress and sustainability that are currently being held at the world level? Current debates addressing the climate are gaining an increasingly global tone (the impact of UN action, from Rio 1992 to Glasgow 2021), but for us also an essential European one (EU Green Agenda and Green Plan for the Balkans 2020), and finally a national-regional tone, which we still need to establish, if we think positively of everyone in the region. Here in the Balkans, we’re individually too weak, powerless and small, and the regional effects of climate change are too strong for us to have our own national climate change response strategies and mechanisms. We need purposeful joint action, devoid of any kind of national, ideological our great-state prejudice. This are issues that rise above all ideologies, and even “national” politics. As an economist, how do you view the idea that our understanding of economic growth as the continuous production of an ever-increasing volume and number of goods and services must change completely? I’m not a supporter of the “must” category. At the end of the day, we all see that in life nothing is a “must” except death. Precisely in order for the life of the Planet not to be extinguished prematurely, from a cosmic perspective, people should do as much as they can (and together they can do a lot) to prevent its accelerated extinction. Now, how much can people do? They can do a lot more than they’ve shown and done to date. Specifically, if you apply the “polluter-user pays” principle, whether in the form of taxes, charges or penalty costs, you will get better economic behaviour among the people around the society. Today there are current fees for the use of water,

If you only apply the “polluter-user pays” principle, whether in the form of taxes, charges or penalty costs, you will get better economic behaviour among the people around the society natural materials and materials from the land, but they are not high enough – not even around the world, let alone in our country. How come companies are showing so much interest in natural resources? This kind of an offensive on resources stems from several relevant factors: first, natural materials, and with them mineral fuels, have not lost their importance as the raw materials required for industrial development, like it seemed they would during the last decades of the 20th century. Large and small companies, as well as states and regional economies like that of the EU, are aware of that fact. Second, demand for natural

resources is currently rising sharply due to the perception of a rapid increase in global economic activity following the recession caused by the pandemic. Third, additional fuel for searching for and redistributing natural resources around the world provides information on the ultra-ecological future of industries and technologies, especially following the information that emerged from the Panel on Climate Change and after the global conferences addressing the climate and environment. Transitioning to new economic-technological structures and carbon-zero technologies is neither a simple nor a short-term thing. Therefore (and this is the reasoning of companies and many “industrialised nations”), it is not bad to continue utilising what we can in the old way, and under the given prices and conditions, before new, increasingly restrictive environmental standards enter into force. Finally, there is the regional-national aspect. If some project cannot make it through the standards, laws and ecological culture of one’s own country, then it still can in some other country where labour, capital, knowledge, and even natural resources, have a much lower price tag. To what extent are global policies related to the introduction of circular economy principles reflected in our institutional framework and operationalised at a practical level? The circular economy is just a complete notion; a model like the previous one on sustainable development (encompassing much more than the economy), and later the “green economy”, and now the latest ones like “bioeconomy” and even “climate economy”. These terms are almost the same in terms of content, differing only in terms of the focus of analyses. If you primarily have in mind closing the cycle of useful energy and fully utilised waste when designing an industrial process, i.e., a procedure that doesn’t contribute to disturbing the ecosystem in any way, without harmful emissions or depleting resources, then that’s a circular economy (an ecologically encircled economic system). And if the priority of your product and process design is to have a favourable impact on the

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INTERVIEW body. The second reason is that professional associations and scientific societies try, to a great extent, not to offend the authorities, so they avoid open and critical discussions of public projects, confining themselves to the theory and not venturing into the domain of development policies. Finally, interests are a wonder, with many scholars or prestigious cultural workers having been bought off or threatened to be deprived of their privileges, directorship positions or the benefits of managing state projects etc.

climate, i.e., to contribute positively to climate action, it is called “climate economy”. Those who would like to copy nature in their processes and reproduction (an economy that has no leftovers, such as the complete exchange of matter and energy between the Sun, Earth, plants, animals, fungi and bacteria) then it is “bioeconomy”. All of these new terms are welcome, though I personally prefer to have one. And that one is sustainable development, because it relates not only to the economy, but rather also to society, politics, social institutions, culture etc. Sustainable development exceeds the goals of any sector-specific strategy and policy, which is why we need a strategy for how to further develop as a whole. We had a sustainable development strategy, which unfortunately “expired” in 2017, without an adequate replacement. The climate strategy, the draft of which is currently being finetuned, is not a sufficient substitute for sustainable development. To what extent is the academic community included in the shaping of these policies, both at the general level and at the level of consulting and seeking expert opinions regarding major projects that are launched and have a fundamental impact on economic and social development processes? The academic community in our country, like any other section of the public and profession, is deeply divided, according to seams of interest. Those who are involved to more in official projects (with some exceptions) mostly try to explain that something being promoted by the government must be done by you, because that is the best solution. The other part has the opposite stance. A pronounced example of that is the expert assessment of the architecture and infrastructure of Belgrade, the Belgrade metro, the opening of mines in Serbia, new settlements and projects beginning with the Belgrade gondola, masts and monuments, all the way to the residential complex on the Makiš field near Belgrade’s source of communal water. There is no discussion over which of these is risky and how much, acceptable or unacceptable, or regarding alternative solutions. It must be recognised, however, that academic independence and the honourable influence of experts are still silent and (rarely) speak up, like the announcements and statements of 90% of lecturers at the Faculty of Civil

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None of the few remaining mines of metallic and non-metallic raw materials operating in our country are environmentally friendly or able to be. But that doesn’t mean we can’t also discuss sustainable (not “green”) mining Engineering regarding the poor and harmful choice of metro rail lines for Belgrade. Based on that and this kind of professional academic courage, I expect us to reach a rebellion and a presenting of the joint stance of experts from the Faculty of Transportation, the Jaroslav Černi Water Institute, the Hydrology Department of the Faculty of Mining, Civil Engineering and other faculties regarding public projects, regardless of any government structure. Do we, as a public, have the opportunity to hear all the arguments that would help us make decisions? We don’t, for multiple reasons. First and foremost, because (every) government tries maximally to block such debates and arguments, through the granting of short deadlines or by reducing public debates to online conferences, for example under the direction of the Chamber of Commerce, as a parastate

To what extent do we have well-established taxation and other instruments at the level of companies that would encourage the business sector to seek solutions for their businesses that take into account issues of sustainability? The state should duly review and adjust the mineral resource rent tax, pollution taxes and other fees in accordance with new scientific discoveries, monitoring the state of resources and the advancement of raising awareness. In Serbia’s contemporary mining sector, you have the greatest environmental and developmental damages, i.e., health damages, and even long-term social damages from the operations of Kolubara and Kostolac within the EPS framework. The second most harmful mining-industrial activity is the existing mining of copper and some gold in Bor (Chinese company Zijin Copper), the Smederevo Steelworks (we won’t mention individual fireboxes and traffic at present). Finally, there are only a few remaining mines of metallic and non-metallic raw materials. None of these mines are environmentally friendly or able to be. But that doesn’t mean we can’t also discuss sustainable (not “green”) mining. Nonetheless, a huge fuss has arisen (only partially justified by research) and the much more important (opening) of the lithium and boron mines. There is no dialogue, with both sides pushing their own agenda. This definitely won’t bring a stop to mining around the world and in Serbia, just as it won’t be possible to launch sustainable mining with the help of party pressures and the instrumentalising of a referendum. The most dangerous thing would be to force the launch of mining against the will of the people, and for people to carry out some obstructions, as is happening around the world.

KSENIJA KARIĆ, GENERAL MANAGER, SCHNEIDER ELECTRIC IN SERBIA AND MONTENEGRO BUSINESS

A SUSTAINABLE

FUTURE IS ATTAINABLE

It was in 2005 that Schneider Electric introduced its first sustainability barometer, as an early adopter of ESG matters. The company has set ambitious targets, such as reaching carbon neutrality in its operations by 2025, while up to 72 per cent of its revenue today is green

ur company celebrates the 20th anniversary of its successful operations in Serbia next year.The core of our strategy is to build a sustainable business and company. Customers, employees, partners and investors have never been more focused on ESG considerations than they are now - says Schneider Electric General Manager for Serbia and Montenegro Ksenija Karić, speaking in this CorD interview. Sustainability has been one of the hot topics in recent years. How does Schneider Electric, as the world’s most sustainable company, view the tackling of this challenge? We strive to help others participate actively in resolving such an important issue by using adequate software and solutions. This means that we don’t only tend to be a role model in the manner we run our operations, but that we are also part of the solution for many of our clients, and that is the model everyone should follow. We plan to enable 1,000 companies – our major suppliers – to cut GHG emissions by 50 per cent by 2025, using our EcoStruxure platform. Over the past 15 years alone, we have saved 120 tons of CO₂ emissions and provided access to energy for about 30 million people worldwide. Energy demand is ever-increasing and will be up to 40 times higher a century from now. Is decarbonisation the way to reach a sustainable supply system? Where can one start? We believe that a more electric and digital world is key to a sustainable and resilient future. It is estimated that energy demand for cooling will increase threefold over the next 30 years, and that overall consumption will rise by up to 62 per cent by 2050. The way to meet these growing needs is to use energy in a better-quality and more rational manner. Innovation today relies heavily on both electric and digital. From gadgets that make our

Over the past 15 years alone, we have saved 120 tons of CO2 emissions and provided access to energy for about 30 million people worldwide lives better, via digital home-working, to e-mobility. And Schneider Electric is helping drive change in the world to make our customers and partners’ operations more sustainable. For businesses and consumers, renewable energy sources represent a fast-track to fulfilling decarbonisation-related pledges. However, it is necessary to point out the need for an integrated approach to improving energy productivity, including the decarbonisation of cities, which account for nearly 70 per cent of global CO₂ emissions today and consume 78 per cent of energy around the planet, as well as the necessity for transport electrification, the decarbonisation of heating and cooling systems and enabling flexible demand, combined with providing specific recommendations and sharing experiences regarding these concepts.

Can digitalisation and investments in Industry 4.0 contribute to further economic development? How does Schneider Electric participate in this process? We strive to be a role model and play an important role in creating a carbon-free world, while helping clients to operate more sustainably with significant cost-cutting. This means that digitalisation and Industry 4.0, coupled with Electricity 4.0, contribute to improving economic competitiveness. The latest addition to our portfolio is SM AirSeT, our green and digital SF6-free medium-voltage switchgear. SM AirSeT is a leap forward for sustainability, using pure air and vacuum switching technology, instead of SF6 gas, and allowing users to take full advantage of digital features to unlock the value of data. By introducing the new SF6-free technology, we have taken a crucial step forward in power grid decarbonisation. Such medium-voltage switchgear has already been installed in the substations of users across Europe, including E.ON, Sweden, and GreenAlp, France.

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INTERVIEW JOVANA CVETKOVIĆ, DIRECTOR OF DEVELOPMENT, TECHNICAL OPERATIONS AND INNOVATION AT MPC PROPERTIES

GREEN BUILDING & SUSTAINABLE

REAL ESTATE PORTFOLIO

The Navigator Business Center 2 is a recipient of the LEED GOLD certificate, which is yet another in the series of these certificates that MPC Properties already possesses in its portfolio. It was this latest certification that prompted us to speak with Jovana Cvetković, director of development, technical operations and innovation at MPC Properties

PC’s strategy is building and development of modern business and retail assets in accordance with the highest world standards. In the development process, we pay special attention to the green building principles and the impact they have on users and the environment.. As a market leader, we at MPC think long-term, and we don’t make any compromises when it comes to the quality and sustainability of our assets, which we are also recognised for on the market. Our job is not only to build and develop an asset, but also to manage it, so it is extremely important that the facilities we build are sustainable and functional, and the ultimate goal is to build sustainable assets

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that achieve Building Resilience for Climate, People and Economies. Over the course of the past 10 years, MPC has contributed to the promotion of green building, and thus we today have three buildings that have been designed and built in accordance with those principles: the Navigator Business Center 1 and 2 have been built according to the LEED Gold standard; UŠĆE Tower Two was constructed according to the BREEAM standard, while UŠĆE Shopping Center is one of the first and the largest certified shopping centers in the region and Europe, thanks to LEED-EBOM certification (LEED Certified Existing Building: Operations and Maintenance) covering the area of existing, operational facilities. MPC Properties also confirms its commitment to green building by being an active member of the Serbian Green Building Council. The crucial green building strategy is that during the development of the project, its entire life cycle is considered, which starts from the idea, planning, design, through the execution of works, all the way to the operations. MPC Properties deals not only with the construction of assets but also with their management and maintenance, so it is very important for us to manage the entire development of the project, bearing in mind that after the investment in green building systems, significant savings will be achieved during operation.

Through the certification process, the quality of the facility is improved, and through adequate selection of equipment and proper mode of operation of technical systems, optimal space comfort is achieved, which further contributes to reducing energy consumption (electricity, heat, cooling) and water consumption, reducing waste… reduction of harmful impact on the environment (reduction of harmful gas emissions, increase of efficiency, reduction of waste and protection of watercourses). Accordingly, it contributes to the preservation of collective health, but also gives an example to the professional and general public about the importance and benefits of applied green building.

When it comes to environmental protection, MPC Properties also integrated its vast experience of real estate development and management during the concept design process for the exceptional UŠĆE Tower Two business building. When devising the concept for this business facility, we wanted to shift the boundaries of the domestic market and keep pace with current global trends and properties now being developed in Europe’s major business hubs, primarily London, Vienna and Warsaw, which is why this building is the first in Serbia to apply new natural ventilation technology. Thanks to this system, the excellent air quality of the space is secured with minimal energy consumption. Similarly, the area surrounding this business complex has been enriched with indigenous plant species, which serves to additionally create an environment that stimulates creativity and encourages healthy productivity. We’re additionally improving and shifting the boundaries of the market with each subsequent project, so our next step is to introduce WELL health and safety certification for the entire portfolio of MPC Properties – UŠĆE SC, BEO SC, Mercator, IOC, Ušće Towers 1 and 2 and the Navigator Business Complex. This certificate is particularly important to us, considering the current situation with the COVID-19 pandemic, and is also a way to integrate the best world practices into our system and operations, thus contributing to the betterment of the entire community. We are currently in the development phase of a comprehensive social responsibility strategy that’s harmonised with ESG (environmental, social and governance) factors, at the level of the entire MPC system, which will be applied to our properties.

MPC Properties is one of Southeast Europe’s most experienced real estate development platforms, with deep market knowledge, broad deal experience and assets with the highest standards. MPC has developed over 30 retail and office projects, which have been established since the company’s 2002 foundation. The company is primarily dedicated to investing in and managing real estate, with the key objective of increasing value through active initiatives. When it comes to design and construction technologies, as well as compliance with green building standards, MPC delivers an efficient and sustainable portfolio. MPC possesses or manages different types of properties, including high shopping centers, street retail outlets, prime office space and mixed-use projects. Sustainability

BUSINESS APATIN BREWERY

SUSTAINABILITY AS A CRUCIAL PART OF OUR BUSINESS Corporate social responsibility is a crucial and inseparable part of our company’s operations, both at the global level and individual brewery level. In each segment of our business, and with the participation of all our stakeholders, we create different programmes and projects that have social responsibility as their common denominator far invested around 130,000 euros in the procurement of 135 alcometers and 50,000 alcometer mouthpieces.

ur CSR policy is aimed at both the PEOPLE and the PLANET, and stands firmly on the following pillars: 1. Responsibly refreshing – in which we advocate responsible consumption of alcohol through numerous projects, such as the “DON’T DRINK AND DRIVE” project; 2. Sustainable brewing – which means applying a responsible approach to production processes, within the scope of which we would single out our construction – worth RSD13 million – of the waste water treatment plant that now has the additional purpose of generating power as a by-product of treatment; 3. Collectively crafted

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– our responsibility towards the community, where we initiate or support numerous organisations or projects; 4. Employee wellbeing – we promote the striking of a balance between career and personal life, and introduce numerous employee benefits while at the same time observing all the principles of diversity and inclusion. We thus became the first FMCG sector company in Serbia to be awarded the Family Friendly certificate. 1 5 YEARS OF “DON’T DRINK AND DRIVE” CAMPAIGN This is one of our most enduring CSR projects, which we conduct in partnership with the Ministry of Interior, Traffic

Police Directorate and Road Traffic Safety Agency. Within the scope of this campaign, over the past 15 years, the Brewery has remained committed to educating consumers in order to draw attention to all the negative consequences of consuming alcohol prior to driving. In addition to using interesting methods to instruct consumers about the negative effects alcohol has on their motor skills, it also prompts them not to sit behind the wheel after drinking alcohol, but rather to use alternative transport to return home – to call a taxi or a friend to give them a ride; to walk or use public transport. We this year donated 600 reflective vests to traffic police. We’ve so

LASS PACKAGING G MANAGEMENT IN THE WESTERN BALKANS Apatin Brewery, together with German international development agency GIZ, NALED and company Sekopak, has been implementing the project “Glass Packaging Management in the Western Balkans”. Our €150,000 investment was used to procure infrastructure elements in the form of collection containers, as many as 600 of them for collecting glass packaging waste, all for the purpose of increasing the amount of glass packaging collected by 20%. In this way, a profitable system of glass waste treatment and recycling would be established in Serbia and around the region, thus improving the existing system of extended producer responsibility. In addition to investing in infrastructure and increasing the amounts of recyclable material of collected, this project also aims to educate – not only consumers and other people, but also local communities and public utility companies – and thus contribute to strengthening the overall capacities of local communities in this area of operations.

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BUSINESS ANA PEROVIĆ, ORGANISATION DEVELOPMENT MANAGER AT ELEVENES

BILLION-EURO GREEN FACTORY FOR LFP BATTERIES UNDER CONSTRUCTION On the site of Subotica's former '29. novembar' factory, start-up ElevenEs – part of the multinational Al Pack Group that operates in the aluminium packaging and processing industry – is building the first major factory for LFP batteries in Europe

he project is also receiving significant support from EIT InnoEnergy, the most active global investor in the area of sustainable energy in Europe, in the low-carbon development sector, which has engaged in the project as an important facilitator and investor. The adaptation of existing production facilities and the construction of new ones, along with the installing of equipment, will unfold over the course of the next year; pilot production will commence at the start of 2023, while commercial production is expected to be launched in 2024, announces Perović. ElevenEs, an industrial development project of the multinational Al Pack Group, which specialises in aluminium processing and has already spent 25 years operating on the packaging market, has developed its own technology for the production of lithium-iron-phosphate (LFP) batteries. After two years researching and developing LFP batteries, the company recently opened a modern research & development

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centre in Subotica, where a team of international engineers and scientists works. Batteries based on LFP technology, unlike regular batteries, don’t contain cobalt and nickel, which makes production cleaner and more sustainable. These batteries have a lifespan that’s several times longer, are safer, deliver more power faster and are primarily intended for electric cars, buses, trucks, forklifts and other vehicles, as well as for energy storage linked to solar power plants and wind farms. The first battery factory in Europe to use this technology will be built on the site of Subotica’s former giant ’29. novembar’ factory.The complex will extend over an area of 30 hectares, with facilities occupying 160,000 square metres. Envisaged capital investments are estimated at around a billion euros, while the investment should reach 550 million euros by mid-2024, excluding investments in development. The factory itself will be constructed in several phases over the course of the next six years. The initial period will see the creation of a plant for the production of electrodes and the assembly and electro-formation of cells, while production activities will expand over time to encompass the production of other input raw

materials, including cathode material. Within the scope of the complex, there will also be a recycling centre for battery production waste. Following completion of the development of the first product line, a green “mega factory” will be created and will produce 300 MWh annually. After two years, production will be expanded to 8 GWh, while after 2028 and the finalisation of the complete investment, production is expected to reach 16 GWh annual. To clarify these capacities, 16 GWh equates to more than a billion of the

Envisaged capital investments are estimated at around a billion euros, while the investment should reach 550 million euros by mid-2024 batteries that are found in contemporary mobile phones, while translated into vehicles – it would equate to enough batteries for almost 330,000 fullyelectriccars.Althoughthistypeofproduction is highly automated, there will certainly be more than 1,800 people employed in development and production at that juncture.

SANELA VELJKOVSKI , PROJECT MANAGER, BUSINESS OPEN REGIONAL FUNDS FOR SOUTH EAST EUROPE - MODERNISATION OF MUNICIPAL SERVICES, DEUTSCHE GESELLSCHAFT FÜR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH

THE BELL TOLLS FOR

GLASS RECYCLING

In an effort to improve the percentage of glass packaging waste that's collected and recycled, German development cooperation has joined forces with private companies from the Western Balkans to implement the project 'Enabling a Cost-Effective Glass Recycling Value Chain in the Western Balkans’

result of establishing the preconditions for the cost-effective treatment and recycling of glass waste in the Western Balkan region.

orking through its development partnership mechanism, GIZ is combining its efforts with those of private companies, with the aim of responding jointly to the greatest challenges to the realising of the Sustainable Development Goals

What is the current situation in the field of glass packaging waste management in the Western Balkans? Environmental protection concerns are similar in all Western Balkan countries and joint efforts – through cooperation and exchanges of best practices – are not only useful, but rather essential. As a type of packaging waste, which is one the fastest growing forms of waste worldwide, glass packaging represents one of the few materials that are 100% recyclable and can be subjected to an infinite number of recycling circuits. Unfortunately, the low quantities of glass collected and insufficient management of glass waste recycling have resulted in most used glass packaging ending up in landfill sites or illegal dumps, where it takes more than 5,000 years to decompose. As for the waste sector generally, the main shortcomings for glass waste management lie in the infrastructure enabling collection and the development of sustainable solutions. Tell us something about your Project “Enabling a Cost-Effective Glass Recycling Value Chain in the Western Balkans”. Why is this project so important?

The main shortcomings for glass waste management lie in the infrastructure enabling collection and the development of sustainable solutions The project is built on a strong partnership between GIZ and packaging waste management operators SEKOPAK, with the support of Molson Coors’ Apatin Brewery from Serbia, EKOPAK from Bosnia-Herzegovina and PAKOMAK from North Macedonia. Serbia’s NALED (National Alliance for Local Economic Development), North Macedonia’s ZELS (Association of the Units of Local Self-Government) and Bosnia-Herzegovina’s regional development agency REDAH contribute to this partnership - as civil society organisations - with their capacities and experiences. All of the institutions included are aiming to realise the common

What are the results to date of the joint investment, advisory support and awareness-raising measures to improve rates of glass waste collection? During 2021, more than 1,000 glass collection containers have been installed in 14 pilot cities and municipalities throughout North Macedonia, Serbia and Bosnia-Herzegovina. These waste collection containers, named Bells, have been introduced in Bitola, Štip, Gevgelia, Ilinden, Skopje, Tetovo, Niš, Sombor, Varvarin, Kragujevac, Ilidža, Novi Travnik, Bihać and Konjic. The joint investment, advisory support and awareness-raising measures to improve collection of glass waste have met with positive reactions among the citizens of these communities and resulted in glass collection rates having already increased by over 20%. How does the recent inclusion of the City of Belgrade in the project contribute to improving its results? Being aware of the importance of green projects to citizens, and their environment and living conditions, we would like to highlight the fact that the City of Belgrade officially joined our Project recently. As the region’s biggest city, Belgrade has – according to all factors – very specific elements for the organisation of primary separation, which can result in us having both a bigger impact and a new learning experience. Building upon this investment in collection infrastructure and lessons learned, the Project will prepare municipal models to establish adequate glass recycling systems that can be further disseminated to other municipalities in Serbia and around the region.

Sustainability

BUSINESS

UNICREDIT BANK SERBIA TH MARKS 20 ANNIVERSARY WITH LAUNCH OF CSR PROJECT 2,000 dinars from each loan granted during November and December 2021 will be used for CSR projects over the next year

or each cash loan and refinancing loan exceeding RSD200,000 that’s granted during November and December 2021, UniCredit will allocate RSD2,000 for CSR projects to be implemented during 2022. As part of its campaign, entitled “20 years of striving together to start good things”, UniCredit will began celebrating the 20th anniversary of its operations in Serbia. The funds raised over the course of these two months will be used by UniCredit for activities to support the society and local communities, with the goal of preserving and protecting the environment and natural resources in Serbia.

Now that we are marking this important milestone, we wished to do something together with our clients, who have always been at the core of our operations - Nikola Vuletić, CEO UniCredit Bank Serbia UniCredit Bank Serbia, which is part of UniCredit Group – a successful pan-European banking group – has been present on the Serbian market since 2001. During the 20 years of its successful operations in our country, UniCredit Bank Serbia has financed numerous green economy projects and conducted a large number of CSR activities. It has also been the local market leader in financing energy from wind farms, having financed five of the nine wind farm projects implemented in Serbia. “During all the years of UniCredit’s presence in Serbia, we have always strived to be more than a bank, to make a difference and leave a mark with our operations, approach and contribution. Now

Sustainability

that we are marking this important milestone, we wished to do something together with our clients, who have always been at the core of our operations; something with which we hope to forever pay back the community in which we live and work. We are aware of the importance of protecting and preserving the environment and natural resources.That’s why we will dedicate our 20th anniversary campaign to activities focused on specific financial assistance, as well as raising awareness of the importance of protecting and investing in our country’s natural resources,

because it is only when we preserve everything that we have that we can be certain that we will be able to celebrate the next 20 years, and that we will do so in a better and nicer environment,” says UniCredit Serbia CEO Nikola Vuletić. As part of its 20th anniversary celebration, UniCredit will publish the amount of funds raised on its website every day until the end of the year. These funds will be invested in projects aimed at protecting and preserving Serbia’s natural resources and wonders that need support the most

Sustainability

SUSTAINABLE ARCHITECTURE

SUSTAINABLE CONSTRUCTION

PROTECTS SERBIA

Sustainable construction reduces the consumption of non-renewable resources, promotes the use of renewable energy sources, minimises waste, creates healthier and more rational spaces for living and working, and protects the environment

he great migration of populations to all the major cities of the world, including ours, primarily Belgrade, Novi Sad, Niš and Kragujevac, has led to their accelerated expansion and development of housing. Unfortunately, this growth has a huge impact on the environment, largely negative, because developing the urban habitat requires a huge consumption of natural resources. New buildings have an impact on the environment through a large number of processes

Sustainability

(production of building materials, transport, construction, installation of materials…) that can cause environmental damage. Also in the course of the building itself, the site produces waste and noise that also have a major impact on the environment. The urban environment restricts freedom of positioning in relation to natural resources, but on the other hand, existing infrastructure facilitates supply construction sites and buildings; outside the city this infrastructure

would have to be planned and built, affecting the environment. Unfortunately, natural resources are not unlimited, nor are they easy to replenish. For that reason, the World Commission on Environment and Development introduced the concept of sustainable development back in 1987. It defines this as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

When this complex concept is applied to construction and architecture, the goal is to minimize the negative impact on the environment, energy consumption, and the use of human resources. Sustainable building is reflected in the materials used to erect the building, the construction methods, the resources expended and the design in general. Although new facilities built in accordance with the principles of sustainable construction are expected to be functional and aesthetically superior, it is also important to achieve long-term energy efficiency. Sustainable construction reduces energy consumption in all phases of the life cycle of a building, from concept and construction to final exploitation, making new and newly renovated buildings cheaper to maintain and live

that use as little energy as possible. To reduce the consumption of electricity for the operation of cooling devices during the summer, you should choose thermostable or triple glass on the windows, devices that provide shade and natural cooling, advanced insulation materials in the walls, surround the building with greenery ... Sustainable buildings often have “living walls”, roof gardens with flowers, lots of plants, trees and shrubs watered with rainwater collected in tanks instead of gutters that empty into the drains. The principle of sustainable building puts the use of ecological materials in a high second place, at the very top of the list of priorities, to draw attention to nature protection.We must use high quality, environmentally friendly materials

The principle of sustainable building puts the use of ecological materials at the very top of the priority list to draw attention to the protection of nature in, and more suitable for the environment. This way of building also helps the building’s users, whether of a residential or business building, to more efficiently use energy sources that are becoming more expensive and less accessible. The concept of sustainable building is based on five eco-principles - smart design, use of environmentally friendly materials, energy efficiency, rational water consumption and environmental protection. In the area of smart design, it is important to choose a good location, a place exposed to the sun and protected from strong winds, because this reduces heating costs, i.e. energy consumption, whether it is electricity, gas or oil ... Simply put, the goal is to design buildings

with specific performance characteristics. This means long-lasting or easily renewable materials, recycled materials or those that can be easily recycled themselves. Ecological materials also include wood from sustainable sources, alternatives to cement whose production creates lower emissions of carbon dioxide and building elements that have been professionally removed from demolished buildings. There are many smart and simple ways to make a building energy efficient, especially with individual housing because it is possible to make a house with zero electricity consumption. Energy efficiency means taking into account the consumption of energy for heating, cooling, lighting, operating machines and small household

appliances,… Energy monitoring systems and solar collectors are introduced and alternative energy sources are used. Sustainable buildings are increasingly turning to the use of energy from solar panels on roofs, and around the world local windmills, geothermal pumps and various other sources are already being used. Although every living thing on the planet depends on clean, unpolluted, healthy water, we take this very limited resource for granted. The tap should not be turned off only while brushing your teeth, water should be stored as much as possible. Although Serbia has over 400 sources of drinking water, climate change and rising global temperatures can lead to a shortage of drinking water. That this is a realistic risk can be seen in the fact that in the past 20 years, the flow of water through Serbia has dropped by 20 percent and that its quality has deteriorated, as shown by an analysis by the Environmental Protection Agency. For this reason, the principles of sustainable construction require that in the design devices should be provided that reduce water consumption, enable its reuse, and in certain cases use atmospheric water. A healthy environment is one of the most important eco-principles and should be protected because the natural resources that make up air, water, land, forests, geological resources, flora and fauna are not inexhaustible and eternal. To have successful and healthy communities, we must have clean air, sufficiently clean and healthy water, natural resources and a non-toxic environment. Setting up a strong waste disposal plan at the beginning of a project will ensure that nothing will be left over that should not be. Following this advice will lead to a more responsible, environmentally friendly project in practically every respect. That is why you should always keep in mind that sustainable building is not only good for the environment, although that is a fantastic reason for adopting sustainable practices. It means saving resources and using recycled and renewable materials, while the use of sustainable materials is also beneficial for people’s overall health. When the works are completed, the focus should be on restoring the site as close as possible to its original condition. Besides dismantling all scaffolding, removing machines and tools, and cleaning up the remains of construction materials, it may be necessary to replace the top layer of soil and sow it with indigenous vegetation.

Sustainability

SUSTAINABLE FINANCING

A CAPITAL-MARKETS UNION IS THE

KEY TO GREENING EUROPE In the absence of a true capital-markets and banking union, the European Union will not be able to mobilise the financing it needs to support its green, digital transformation. Europeans must once again turn a crisis into an impetus for deeper integration

ean Monnet, an architect of the European Union, once said that European unity “will be forged in crises, and will be the sum of the solutions adopted for those crises.” The past decade and a half has provided further confirmation of Monnet’s prediction. Contrary to forecasts by many eminent economists, the EU Economic and Monetary Union survived the euro debt crisis and is still going strong, thanks to

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the European Stability Mechanism. The Juncker Plan helped put the European economy back on track, and Brexit, far from breaking the EU apart, drew it closer together. The EU is again proving its worth in the COVID-19 pandemic. BioNTech’s outstanding researchers developed a leading vaccine in record time, and joint purchases made it possible to distribute vaccines fairly and effectively

(despite some initial difficulties), ensuring relatively high vaccination rates in many EU member states. The recovery plan and the European Guarantee Fund are now helping economically weaker states and regions to cope with the consequences of the pandemic. Since 2000, the EU has repeatedly demonstrated its capacity to deliver solutions and show solidarity. But the never-ending search

The European Commission has done well to draw up an ambitious strategy for a green, digital transformation of the EU economy, sending an important signal to the rest of the world. But the absence of a competitive capital market jeopardizes Europeans’ ambitious climate targets. Massive investments are needed this decade to transform energy, transportation, large swaths of industry, and millions of properties, as well as to protect the people of Europe from the devastating effects of climate change, which were on full display these past two summers.

Europe simply is not realising its potential. The EU already has a single market for goods but not a fully functioning one for services, particularly in the otherwise booming digital economy

for quick fixes to acute crises has a major downside: the completion of the European single market has fallen to the bottom of the political agenda. Such EU-level issues played no role in this year’s German election campaign, even though a strengthening of the single market is crucial for confronting increased economic competition from the United States and China. Europe simply is not realising its potential. The EU already has a single market for goods but not a fully functioning one for services, particularly in the otherwise booming digital economy. If a Silicon Valley start-up develops a good product, it has immediate access to a huge domestic market and can grow to the point where it can hold its own globally. But in Europe, that same start-up would have to spend its early years dealing with so many foreign tax lawyers and national regulators that international expansion would hardly seem worth it.

Europe also lacks a capital-markets union and a true banking union; and because there are significant regulatory differences between EU countries, European shareholders and corporate bond investors shy away from offerings beyond their own borders, potentially forgoing more attractive investment opportunities. This highlights the need to complete the banking union, which includes common banking supervision, a banking settlement mechanism, and a shared deposit guarantee. European governments also must overcome their skepticism about securitisation, which is a key element of the capital-markets union. It is true that bundled loans triggered the 2008 financial crisis; but that is only because nobody was keeping a watchful eye on them. With better regulation and monitoring, securitisation can be a powerful tool for banks to unlock additional capital for new business loans and to finance investments in green technologies.

These objectives will be possible only if governments work together with public- and private-sector banks to bring private investors on board across borders. Europe needs to bridge a climate action funding gap of €350 billion ($401 billion) per year over at least the next ten years. We may have become used to governments and central banks providing vast sums of money to support the economy, but this will not last forever. Interest rates will not stay so low in the long term, sovereign debt will reach its limits, and higher taxes will not be enough to finance this once-in-a-century transformation. But the EU already has the tool it needs to close the gap: it just needs to create a true capital-markets and banking union. We can see what is achievable through common rules if we look to sustainable financing. With the issue of the first green bond, the European Investment Bank (EIB) provided an important impetus to the market for green bonds and sustainability bonds. This has resulted in a uniform market understanding of what constitutes a green or sustainable bond. Moreover, with the EU taxonomy, there are now transparent criteria for determining which economic activities are already green or can develop in that direction. Investors have a clear set of rules at hand to use as a guide for sustainable financing. This transparency at the EU level represents a huge step forward, turning a once-derided idea into a €2 trillion market. By CHRISTIAN SEWING, WERNER HOYER

Sustainability

FACTS & FIGURES

RECYCLING SAVES BOTH

THE PLANET AND MONEY In step with the growth of global overheating and increasingly obvious climate change, recycling is becoming increasingly important, because thanks to waste management programmes, many countries are relying less and less on raw materials. It would be good for us to follow best practice Serbia is richer this year by 150,000 new seedlings of indigenous species, more than 40 per cent of which have been planted in Vojvodina, our least forested region,” said Environment Minister Irena Vujović in Sombor. Apart from afforestation, Sombor also received funds for a project to remediate the devastated land around the former Proteinka animal carcass incineration plant, and to remove an illegal dump in the village of Čonoplja. The Minister emphasised that, during September, around 500 illegal rubbish dumps were cleared throughout Serbia, and expressed the hope that no more rubbish would be dumped at those locations.

PLACES FOR RECREATION INSTEAD OF LANDFILL In the village of Rtkovo in the municipality of Kladovo, the Ministry of Environmental Protection supported the removal of a rubbish dump, and a recreation area will be soon be completed on the site. In a public competition, the Ministry awarded Kladovo municipality four million dinars for a land protection project to rehabilitate the site. The green area will soon be completed, with about 80 newly planted trees and shrubs. So far, 26 illegal rubbish dumps have been removed and cleaned up in the municipality of Kladovo.

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150,000 SEEDLINGS OF INDIGENOUS SPECIES PLANTED “Thanks to the funds allocated to towns and municipalities through a public competition,

LESS CHOCOLATE AND JUICE, LESS CO2 If you want to contribute to protecting the environment, reduce your consumption of sweets, pastries, fried foods and processed meats. According to a new study by Australian experts, this will be good for both your health and our planet. Professor Sarah Forbes, a dietician at the University of South Australia who

has conducted 20 studies on the environmental impact of food consumption in Australia and New Zealand, recommends on the one hand a regular daily intake of fruits and vegetables, cereals, lean meat, fish, eggs, nuts, seeds, legumes, milk, cheese and yoghurt, and on the other hand points out that the production of meat, cereals and dairy products greatly contributes to CO2 emissions. But however much pollution is caused by the production of these foods, the production of sweetened beverages, juices, alcoholic beverages, confectionery and processed meat causes even greater pollution.

THESE 10 COUNTRIES ARE CHAMPIONS OF RECYCLING Besides saving money, recycling waste so it does not end up in landfills reduces the emission of greenhouse gases. Introducing efficient recycling schemes means that less garbage ends up in nature, and where this has come the furthest is shown in the following list of countries that have programmes for successful waste management. Brazil: More than 70% of waste produced is recycled, which also benefits poorer citizens. They receive tokens for transport and food in exchange for waste in recycling centres. Austria: As many as 96% of Austria’s population sorts waste by recyclable categories. Canada: In Vancouver, leftover food is not thrown in containers, but in green compost bins. When food is disposed of properly, it releases less carbon dioxide than landfills. Wales: currently recycles about 65% of total waste. By 2025 they plan to recycle 70% of waste, and to process the remaining 30% in waste facilities. USA: In San Francisco, garbage is disposed of by categories: compost, recycling, landfill.

The goal is to reduce the use of landfills to zero by 2030. Switzerland: There are about 12,000 recycling points in Zurich. Recycling is obligatory in Switzerland and enforced with fines. Singapore: has only one landfill that is mostly used for non-recyclable plastic, all other non-recyclable waste is incinerated. South Korea: Until 1995, the food recycling rate was 2%, but today it is 95%. All waste is categorized and must be compressed before recycling. England: Leeds had 12,000 tonnes of glass waste last year, this year it now has 700 bottle banks located across the municipality. Germany: Thanks to education and a consistent waste management policy, Germany recycles 70% of all waste, the most in the world.

PEOPLE NEVER WONDER HOW MUCH WATER THEY ARE WEARING If fashion did not change from season to season, or even more often, 10,000 items of clothing would not end up in UK landfills every five minutes. This costs over 140 million pounds every year, but the problem lies not only in wasting money and clothes that could still be worn, but also in the harmful impact of “fast fashion” on the environment. Research by GAP has shown how “clothing consumption” affects climate change and harms the environment, because it takes: 7,250 litres of water to produce one pair of jeans 3,350 litres of water to produce one sweatshirt or sweater 1,500 litres of water to produce one T-shirt or shirt 850 litres of water to produce one pair of underpants or boxers 550 litres of water to produce one bra 375 litres of water to produce one pair of socks And as the average person in the UK has five pairs of jeans, seven sweatshirts or sweaters, 10 T-shirts, 34 pieces of underwear, 22 bras and

22 pairs of socks, that means that she spent 36,250 litres of water on her jeans collection, 23,450 litres for sweatshirts and sweaters, for T-shirts and shirts 15,000 litres, and for underwear 45,950 litres of water. The average person drinks 691 litres of water a year. This means that our collection of jeans consumes 52.5 years of drinking water for one person.

THE WISE SWEDE THROWS NOTHING AWAY, NOT EVEN A DEAD CHRISTMAS TREE In an attempt to increase sustainability, Stockholm found an unusual ally, used Christmas trees and other garden waste. The Swedish capital uses green waste to power homes and reduce its CO2 footprint. In Stockholm, people all over the city collect garden waste and dead Christmas trees from their neighbours and city parks to turn them into an environmentally friendly type of charcoal called biochar, a valuable soil supplement. The city of Stockholm produces about 300 tons of biochar every year, the equivalent of “removing” 700 cars from the city streets. The huge amount of energy produced in the process of biochar production is used by the city to power its district heating network.

Sustainability