Sustainability 2022

Can Europe Become Climate Neutral By 2050?

The European Commission plays an important role in promoting European interests that extend beyond the national interests of individual member states. The climate change challenge represents one of the most pressing contemporary global crises. Agenda 2050 on sustainable development is a bold and ambitious vision set forth by the European Commission for a climate neutral Europe that may also serve as a normative model globally

Based on the international debate on climate change dating back to the early 1990s and moving for ward, the European Union and its member states have sought to pursue the role of international leader on sustainable development. The international political process of the 1992 UN Framework Con vention on Climate Change (UNFCCC), the 1997 Kyoto Protocol, the 2015 Paris Climate Agreement (COP21) and the 2015 special United Nations Summit resulted in the EU declaring a climate neutral Europe by 2050. The European Commission Communication A Clean Planet for all—A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy, was endorsed by the European Council in 2019 (Finnish Government, 2019).

The EU’s ambitions on climate change and sustainable development have been contextualised by numerous challenges. The power politics of China and Russia on security and economy, the global rise of emerging economic powers, the economic and financial recession, migration, Brexit and right-wing populism have all led to po larisation within and between EU member states, bringing into question the overall international power of the EU.

The European Commission plays a unique and important formal role within the EU as an embedded driving force to promote Europe an norms and values beyond the interests of individual member states. The Commission’s role is to act as the promoter of the European common good and to transform challenges into a window of opportunity during times of crises. In this context, Agenda 2050 is a bold and ambitious vision of the European Commission for a climate neutral Europe, but it may also serve as a normative model for the rest of the world.

One point that’s often missing in the climate change debate is the role of gov ernance institutions in promoting sustain able development. In Europe, the European Commission pursues the role of promoting the overall interests of the EU in relation to its member states by proposing European laws, safeguarding EU treaties by ensuring that member states follow EU legislation, acting as an executive body to handle policies and the annual budget, and by representing the EU in external relations to third party

states. The European Commission is also in an institutional relation to a large group of EU member states that pursue a high level of capabilities. The role of the European Commission, as an engine driving devel opment within the EU, could therefore be very influential provided member states are convinced to act together to tackle climate change.

The European Commission has the formal role of acting as a policy entrepreneur within EU structures and with the duty to represent European norms and values beyond individual member states’ interests. The European Commissions’ track-record of the 1990s and early 2000s shows how the Commission has also managed to place democratic, market-oriented and social issues on the official agenda, compelling some scholars to argue for an EU normative power. More recently, the European Commission has also begun to push for sustainable development within EU member states. The EU began to push for sustainable development in the

to humankind, but also how such global and European challenge could become a window of opportunity for European transformation and progress (European Commission, 2019). The Commission declared Agenda 2050 as the roadmap to making Europe a climate neutral continent. Again, the Commission called on all European actors in the politi cal, economic and civil society domains to commit to such a European path and come together to transform into a prosperous and cleaner Europe. Agenda 2050 included several crucial strategic areas in energy efficiency, the deployment of renewables, clean and safe mobility to achieve a climate neutral Europe.

Agenda 2050 addressed the nexus be tween the contemporary challenges of climate change and socioeconomic growth by highlighting the strategic importance of innovations and technological solutions to become a dynamic and greener economy. The Commission specifically urged the re-directing of private capital to sustainable investments, setting up one classification system on sustainable economic activities, regulating and legislating on low-carbon benchmarks, establishing a carbon pricing system, taxing environmental impacts and increasing levels of investment in research and innovation to promote zero-carbon solutions for a greener economy.

Treaty of Amsterdam, with the objective of promoting a European socioeconomic model of economic growth, price stability, full employment and social inclusiveness, along with protection of the environment. Since then, sustainable development has been mainstreamed into EU policies, legisla tions, norms and values, while the European Commission has stressed its ambition to become a frontrunner on promoting and protecting sustainable development.

On 11th December 2019, the European Com mission presented the Communication ‘The European Green Deal’ as a guiding roadmap to further promote sustainable development. The Commission highlighted the ambition to become the leading actor in the world and for Europe to become the first climate neutral continent by 2050. The Commission stressed climate change and related climate and envi ronmental challenges as being fundamental

Agenda 2050 also set out how a greener economy will create new jobs and employ ment opportunities, but how such sustain able development in the economic sector will, in the short run, provide challenges and changes in societies that have been dependent on coal- and carbon-intensive growth. Europe’s industrialised regions will see fundamental structural changes, with such a transformation set to impact societies and citizens. It is therefore crucial for the EU to be ready to mitigate possible negative effects on citizens and societies when developing into a green economy. Such mitigation should include increased support to social protection systems, education, training and lifelong learning.

Agenda 2050 sheds light on the impor tance of including and empowering European citizens in the transformation to a greener economy. The European Commission stresses that citizens are consumers and therefore powerful actors in the process of sustaina

A genda 2050 is a bold and ambitious vision of the European Commission for a climate neutral Europe, but it may also serve as a normative model for the rest of the world

ble development to a net-zero greenhouse gas economy. Consumers could, through the purchasing of sustainable products and services, exert strategic pressure on companies and industries to be part of the climate-adjusted changes.

Sustainable development is an important norm within the EU-system of governance and is pushed for by the Commission in all recent strategic Communications, such as Europe 2020 and Agenda 2050. Europe 2020—A Strategy for Smart, Sustainable and Inclusive Growth represented a strategic response to the global recession of 2008 and moving forward, calling for a European partnership between EU institutions, mem ber states, regional and local authorities and the private sector to address the economic and social crisis. It represents the European partnership aimed at promoting smart, sustainable and inclusive growth. Almost every objective set out in the Europe 2020 strategy had been fulfilled by 2020. This required serious transformative reforms within EU member states.

The EU now faces further reforms to meet the objectives set out in Agenda 2050. The role of the European Commission must remain the same as in previous work under taken for Europe 2020. The EU Commission plays a crucial role within the EU if the EU is to become a normative, sustainable power in 2050. There are, however, both economic and political hindrances that are addressed in numerous academic studies. One economic challenge is the long-term economic reces sion that hit Europe in 2008 and beyond. This crisis challenged the EU, together with its individual member states, regions and communities, and the socioeconomic damage is still troublesome across Europe, in the form of high unemployment rates and social marginalisation in many EU countries. The economic crisis required immediate political and financial assistance to EU member states from other EU member states, the European Central Bank (ECB) and the International Monetary Fund (IMF). The crisis also high lighted the challenge of Europe’s economic structural weakness in a low average growth rate, low levels of investments in research and development, limited digitalisation and a weak business environment with serious obstacles in finding risk capital. The economic crisis shed light on the challenge of moving

Sustainable development has been mainstreamed into EU policies, legislations, norms and values, while the European Commission has stressed its ambition to become a frontrunner on promoting and protecting sustainable development

away from the narrow focus on development in terms of growth and jobs by addressing rising public concerns over clean energy, climate change and the sustainable use of resources that allow Europe to transform into a sustainable carbon-free economy. In times of economic dire straits, rising nationalism is also a major concern for the European Commission. A decade of economic recession has led to increased economic nationalism and reduced interest in helping out among member states. This is a concern for the Commission, which seeks solutions

that extend beyond the individual interests of member states.

Another challenge that’s often cited in the literature is political in the complex system of EU governance. The Commission has continued to call for stronger cohesiveness within the Union to act as a unified social and economic actor with improved steering and coordination of member states’ policies and reforms. It has also been argued that the EU member states must implement essential policies to promote sustainable develop ment, but that requires the overcoming of member-states’ differences in political cultures and disparities regarding socioec onomic resources, knowhow, productivity and growth levels. There have also been discussions on the capacity of the EU to implement coherent actions to avoid mem ber states’ safeguarding their own national interest to the detriment of others. These economic and political hindrances are real and must be overcome by the Commission if it is to realise its role as provider of the European common good in a sustainable continent by 2050.

We Have Chosen The Path Of Excellence

In the wave of globalisation and technological development, it is becoming clear that the public sector is not enough to solve the challenges of social sustainability, so in addition to its traditional focus on profitability, the corporate sector is devoting itself to business sustainability. Business sustainability strategies are becoming the gold standard of responsible corporations and investors, and PPF Telco Group is no exception

According to HR direc tor Nada Rajčić, CETIN strives to invest efforts and resources in those fields where it can make the greatest difference: sustainable technology, employee well-being, environmental protection, transparent behaviour and business integrity.

In a new Report on sustainable business at PPF Telco Group, there is a major focus on the CETIN Group, which owns critical communication infrastructure - an optical network, radio base stations and data centres, from the Czechia through Hungary and Serbia to Bulgaria. How have you defined your priorities and what goals did you set for yourself?

Working on a report on sustainable business means that we learn about our business and the environment from a new angle, we establish a management and monitoring sys tem based on real data, so that we set ourselves achievable goals and continuously improve ourselves along the way.

An accessible and reliable net work for everyone is our imperative. Over 96% of the population is al ready covered by 4G technology. We are facing modernization of the network, construction of 5G tech nology and regular recertification of standards of information securi ty, data privacy and business resil

Our business sustainability strategy brings new obligations to our daily work, but it motivates us to contribute to the development and preservation of society, to take care of ourselves and others

ience. This year, we have ensured that all our network equipment and infrastructure use only electricity from renewable sources. Next year we will install solar systems on base stations to further reduce our carbon footprint.

The inclusive development and well-being of our 300 employeesis the key to our success. We have 40% female managers, and the representation of women in the company is 36%, which is a satis

factory initial indicator when 35% of girls study STEM subjects in Serbia.

The implementation of such a strategic plan brings changes in daily op erations and corporate culture. What do your employeesthink about the goals and activities of your strategy?

The strategy brings new obligations to our daily work, but it motivates us to contribute to the development and preservation of society, to take care of ourselves and others. We develop

these values through engagement, education and communication. We are a member of several associations and we share our values, experience and knowledge through engage ment to improve the environment in which we live and do business. We cooperate with the best technical faculties in the country. In this way, students have the opportunity to get to know their future job, and our ex perienced experts to keep up with the latest trends. Our employeeswant to contribute to the community and they initiate donations to scientific institutions, schools and sensitive groups in society. Instead of New Year’s gifts for partners, we plant ed 300 white ash trees as a sign of gratitude for cooperation. Through the company’s Wellbeing program, we are more dedicated to our health and team spirit - together we hike, run, practice yoga, learn new skills.

You operate in a very competitive sector, with a struggle for users and the best experts. How does the business sustainability strategy affect CETIN’s position on the market?

We have chosen the path of excel lence and our mission is for respon sible suppliers, clients and experts to be part of the same ecosystem. Sustainable business is a long-dis tance race and the more participants there are, the better the individual result. We run with the best.

DIRECTOR,

Yettel: Committed To The Green Agenda

Asof January 2022, all the electricity that our network uses comes from renewable sources. Our network has always been a synonym for a stable, fast and secure network, winning UMLAUT’s prestigious Best in Test four years in a row. By becoming 100% green, we are once again push ing the market forward ~ says Yettel CEO Mike Michel, speaking in this CorD Magazine interview.

You recently presented a new network position and a proposal for customers. Can you tell us about the idea behind this proposal?

Our brand is focused on bringing balance to customers and society as a whole. Balance is a personal thing, with a different meaning for everyone. Talking with customers, we realised that topics like environmental issues, climate change, air pollution, or simply spending time in nature, are highly important to them. I think that Serbian society is recognising that a healthy, green planet means a sustainable life for future generations.

That is why our strong focus is on the promise of being in balance with nature. We want to min imise any negative impact on the environment and help customers to do the same. We do so by setting an example and striving to inspire others.

As you said, a few weeks ago we presented our two green initiatives. Yettel became the first 100% green mobile network in Serbia. We also presented Eco Bonus, a new digital service that customers can activate and can, easily and simply, take part in the recycling process.

Your recycling programme has achieved significant results, but you mentioned a new proposal for customers. Does this mean that device recycling is finished?

Absolutely not. Quite the opposite, it’s like an upgrade of our existing recycling programme, by introducing an option for paper and plastic waste. The recycling programme has been very

successful, as you said. We have recycled almost 350,000 devices or 27 tons of e-waste, with the goal of increasing this to a million devices by 2025. What we have learnt from this is that customers are very willing to join in when you offer them a concrete solution. ‘Too complicated’ is one of the clichés we hear all the time when it comes to recycling in Serbia. That’s why we are offering Eco Bonus. By simply activating this digital service, customers can choose to have 4.6 kg of plastic and 2.2 kg of paper waste recycled on their behalf

each month, which is the estimated amount that an average Serbian citizen generates per month. I would like to point out that the amount of waste recycled in this way adds up at the national level. This means that Yettel customers lead to recy cling almost seven kilos paper and plastic waste monthly, which will really improve the situation in Serbia. Every rainfall begins with one drop. And once you begin and realise how easy it is to make an impact, the rain starts to fall.

Why are green initiatives so important to you?

Our recycling programmes are not our first green steps: it was ten years ago that we introduced paper instead of plastic bags in our shops; 63% of our customers use e-billing, while our employees participate through primary waste selection in the workplace. Globally, more than 1.2 billion jobs depend on the earth’s ecosystems (according to ILO and WWF). Environmental protection is the right direction to take, it is responsible and smart. Those who value nature show that they have understood its importance to our future.

Yettel has become the first 100% green mobile network in Serbia, which exclusively uses energy produced from renewable sources

MIKE MICHEL, CEO ,YETTEL SRBIJA

B y simply activating the new Eco Bonus digital service, customers can choose to have 4.6 kg of plastic and 2.2 kg of paper waste recycled on their behalf each month, which is the estimated amount that an average Serbian citizen generates per month

Zero Carbon Emissions

2040

The Carlsberg Group has launched its new programme for environmental protection, social responsibility and conscientious corporate governance (ESG - Environmental, Social and Governance) under the name Together Towards Zero and Beyond. This programme represents the advancement of Carlsberg’s existing strategy, the new edition of which contains updated targets and new focus areas

The new strategy defines a roadmap to achieve net zero carbon emis sions by 2040 across the Carlsberg Group’s entire value chain, from bar ley in the fields to beer in the hand. The pre vious Together Towards ZERO programme has already brought significant advances, such as in the reducing of carbon emissions by 40% and reducing water consumption per hectolitre of beer by 21% since 2015.

By launching the new programme, Carls berg has also mapped out other important topics on its road to 2030, or 2040, thus rais ing the level of ambition and strengthening company targets related to water use, the responsible consumption of alcohol, diver sity, inclusion, equality and human rights.

““TTZAB is an integral part of delivering on our purpose of brewing for a better today and tomorrow. Whilst we remain committed to the focus areas that we established in 2017, we have expanded the programme to include a wider array of ESG topics and to address the societal challenges impacting people and communities where we operate.

With our new programme, we are building on our existing progress and reaffirming our commitment to the collective action needed to stop the excessive increases in emissions the world is facing. We want to enable consumers to enjoy a great beer while leaving the smallest carbon footprint possible. To do this, we leave no stone unturned, from the grain and water that we brew with, to the recycling of empty bottles and cans once you’ve enjoyed your beer. This is the right thing to do, for our business and society,” said Carlsberg Group CEO Cees ‘t Hart.

Thanks to this new programme, Carlsberg will retain its focus on areas where the

company operates the most. However, we will also go further as a group, bolstering initiatives linked to responsible sourcing, promoting diversity, equity and inclusion, while at the same time protecting human rights and ensuring compliance through the Living By Our Compass programme. Besides achieving net zero carbon emissions across the entire value chain, the Carlsberg

company also wants to direct its ambitions towards responsible alcohol consumption and responsible use of water. The goal is for the company’s share of alcohol-free and low-alcohol beverages to represent 35% of Carlsberg’s total global portfolio by 2030, as well as the replenishment of 100% of water consumed at breweries located in areas of high water risk.

With this new programme, the Carlsberg Group has also set new targets to achieve a ZERO agricultural footprint and ZERO packaging waste. The carbon footprint currently associated with agriculture and the processing of raw materials, as well as with the production and disposal of packaging, amounts to more than 65% of total emissions in the complete life cycle of beer.

The implementation of regenerative agricultural practises – which have a positive impact on biodiversity, soil health and natural carbon sequestration on farmland – alongside the imple mentation of circular packaging solutions, will enable dramatic carbon reduction, from growing barley to recycling bottles and cans.

The company’s activities in pursuit of its new ambitions are additionally supported by scientific findings that are aligned with the target of preventing the warming of the planet from exceeding 1.5°C, as outlined by the Paris Agreement on climate change, as well as by the company’s inclusion in the RE100, the We Mean Business Coalition, the Race To Zero, the Alliance of CEO Climate Leaders and the WFA’s Planet Pledge

EE Is Treated As A New Source Of Energy

The projects of company Smart Energy Investment, which relate to the reconstruction of public lighting, secure energy savings of approximately 70% and financial savings for local self-governments, while also protecting the environment. Over previous years, this company has invested around 25 million euros of private capital in its 18 projects

Speaking about the importance of energy efficiency, Smart Energy Investment

CEO Obrad Tadić has called on everyone who is able to reduce consumption, particularly the public sector, to do so as soon as possible, regardless of whether they do so via public-private partnerships or in some other way that’s independent of the energy crisis itself.

How do you see the current energy situation?

Never before, energy hadn’t had greater im portance, primarily due to the development of industry and society. The current crisis in Ukraine has heightened that importance. Energy is one of the most important elements with which the parties in conflict and other interested parties condition each other. Unfortunately, the public is more occupied with loss of energy than the loss of human lives. Even if we know that developed European countries are establishing energy sources that are independent of fossil fuels, technological advances have not yet enabled Europe to become energy independent. Although supply autonomy in certain regions of Europe, in the case of blackouts, achieves independence and sustainability for a period of 7 to 10 days, it cannot be said that energy security has been achieved.

Why is energy efficiency so important today?

The best source of energy is energy that we have not consumed. All energy sources, including the cleanest ones, leave some negative traces. That’s why European legislation, including ours, treats energy efficiency (EE) as a new source of energy. Appeals for energy savings cannot be considered as purely financial savings, but rather appeals to achieve energy autonomy and create a better envi ronment. When it comes to discussing the dynamics of the implementation of EE projects, we can say that their effects are realised faster than those that we gain from any form of energy production.

E nergy efficiency is today essential. EE is not enough, but it is a measure that should be given importance that’s equal to energy production

In which ways does your company contribute to energy efficiency?

Our predictions on the rising price of ener gy from six years ago, when we first started developing these projects, have come true, so the public partners who had the vision to realise the projects have handled these changes better. Energy efficiency is today essential. EE is not enough, but it is a measure that should be given importance that’s equal to energy production. That’s why we, have directed our focus to resolve EE issues in the public sector.

Over previous years, approximately 25 million euros of private capital has been invested in our 18 projects. They achieve annual savings in local self-government budgets of around four million

euros, calculated according to electricity prices that are controlled by the national government. If we consider the fact that the energy saved could have been sold on the free market at much higher prices, the indirect financial effect of our projects on the entire budget is at least double. From the perspective of energy independence, these projects realise savings equivalent to the production of the Potpeć and Elektromorava hydroelectric power plants together.

What are the environmental effects of these projects?

Although environmental protection has dropped out of focus due to the crisis, it is important to note that these saved MWh reduce emissions of CO2 and harmful substances by around 19.5 tons annually. Our projects have a significant impact on reducing light pollution, thanks to LED technol ogy that provides light only where it is required, reducing light scattering to an insignificant level. All our projects use light from the most adequate spectrum of around 3000K.

“We act as a conductor of this orchestra in which companies and cities work together.”

- Shelton Mercer, Chief Innovation Officer, 1776

Sustainable Packaging For A Green Future

The Umka Carboard Mill, a Belgrade-based factory producing recycled cardboard, has been using waste paper as a raw material for more than half a century. By using waste paper instead of virgin pulp, it helps preserve forests and makes saving on the energy and water usually required to produce virgin pulp, thus further reducing CO2 emissions

Sincethe KappaStar Group’s take over of the Umka mill almost two decades ago, cardboard production capacity has increased from 40,000 to 200,000 tons annually, through investments worth 100 million euros, while waste paper pro cessing has grown to 250,000 tons per year.

During 2021, the KappaStar Group invested around 40 million euros to improve production processes at the Umka Cardboard Factory, which operates within the framework the group. What did this investment enable you to do?

This investment, which represents just one in a series of investments in cardboard pro duction made by KappaStar Group, enabled the greatest modernisation of production processes at the Umka Cardboard Mill since 1978. The investment was aimed, among other things, at replacing the “core” of cardboard production, which provided an increase in product quality and enabled a significant increase in the capacity for recycling waste paper. Given the fact that 17 trees are required to produce just one ton of paper, with the newly achieved recycling capacity, we save almost 3.5 million trees annually.

The investment also made it possible to further reduce the specific consumption of wastewater, which has been reduced by around 30%. With the use of recycled fibres instead of virgin pulp, energy consumption has been reduced by 75%, water pollution by 35% and air pollution by a whopping 75%.

The Umka cardboard mill has a long and rich history that it is proud of, but a new era

undoubtedly began at the plant in 2003, when it was taken over by the KappaStar Group. What has changed since then?

Since the KappaStar Group acquired the factory in 2003, numerous improvements to production have been achieved through various investments worth 100 million euros.

A significant part of the investments that have been implemented aimed at improving the sustainability of production; that is to say, in addition to increasing the volume of recycling, these investments had a positive impact on improving energy efficiency and generally reducing the consumption of raw materials, through reductions in the specific consumption of resources, heating energy and electricity, as well as the consumption of fresh water. In accordance with capacity

increases, 2022 also saw the obtaining of a new permit for the storage and treatment of waste, i.e., old paper.

When it comes to history, the truth is that we have reason to be proud, because the Umka Cardboard Mill was founded way back in 1939, as a factory for the production of cardboard with a cardboard sheet speed of just 20 metres a minute, compared to today’s 600m/min. Production was located on the territory of today’s factory complex, in a building that is now used for warehousing and administration purposes. New facilities were constructed in 1967, while a major re construction was carried out in 1978, when the product process took on its present form. This factory has been using waste paper as a raw material for more than half a century. And by using waste paper instead of virgin pulp, it helps preserve forests and makes saving on the energy and water usually required to produce virgin pulp, thus further reducing CO 2 emissions.

Our country still lacks adequate sorting/ separating of waste at the point of origin. Does this lead to large amounts of paper being unusable?

The cardboard produced by Umka is mostly used – apart from in the pharmaceuticals and automotive industries, and in other branches of the economy – for food packaging. The old paper we use must therefore be of good quality, which means that it mustn’t contain impurities or additional moisture. It is for this reason that it’s particularly important for waste paper to be properly separated at the point of origin. Old paper mustn’t be

DANIJELA OŠAP, QA, R&D, ECOLOGY AND CI DIRECTOR AT THE UMKA CARDBOARD MILL/KAPPASTAR GROUP

mixed with other types of waste, because mixing can result in it being contaminated with leftover food, beverages or other waste, with which it loses its quality.

If the paper is moist or wet, the decom position process begins also during storage. This prevents the further processing of this raw material through recycling with the objective of obtaining a new product. Instead of being recycled, paper that has been degraded in such a way can only be incinerated or disposed of in landfill sites, and thus additionally contributes to in creasing CO2 emissions as a product of its decomposition.

European standard EN 643:2014 stipu lates the classifying of waste paper within five basic groups - from packaging paper to various forms of paper with special prop erties. The Umka Cardboard Mill mostly uses corrugated cardboard packaging to make the middle layer of cardboard, and since 2005 – instead of virgin pulp– the upper layer for printing has been produced predominantly from office waste. Additional investments in 2017 enabled the extracting of printing ink from white paper, it has thus been possible for the last five years to use waste paper from printing houses, i.e., to use paper containing multiple prints for the production of the white top layer.

The modernisation of production programmes has a marked impact on increasing capacities, but also on improving environmental protection. Is that also the case with your factory?

Over the past 20 years, the Umka Card board Mill has significantly improved its production and reduced the specific consumption of resources. The reuse of water and fibres has been enabled with the installing of additional wastewater treatment devices, and in this way the specific consumption of fresh water has been reduced more than fivefold. Fibres that are separated from process water in the internal circle are reused in the produc tion process, while fibres from the external wastewater circle are also returned to the production process to a significant extent. Part of the fibres that nonetheless cannot be reused in production are submitted to the operator, which uses that raw material to make a new product.

In the case that it is not recycled, paper, i.e., our product, is fully biodegradable and therefore does not remain as waste in nature

Work is currently underway on a project to use this type of waste at brickyards to improve the insulation properties of bricks and tiles. Non-paper waste that is separated from old paper is incinerated at cement plants, and cardboard production waste

is completely disposed of in this way, thus avoiding its dumping at landfill sites.

A trend that’s been increasingly com monplace in recent years is the replacing of plastic packaging with paper packaging, due to its reduced environmental impact. In the case that it is not recycled, paper, i.e., our product, is fully biodegradable and therefore does not remain as waste in nature.

It is for this reason that we strongly believe that paper packaging is the future and that it represents sustainable packaging for a green future.

BUAČA,

FOR

USERS,

Sustainability Through Digitalisation & Decarbonisation

The world has been focused on solutions that will help create a sustainable future for generations to come. This topic is increasingly attracting the attention of scientists, as well as the public and private sectors

SchneiderElectric is a company that has been committed to sustainable business operations for decades. We discussed this topic with Sch neider Electric Sales Director for End Users Dragan Buača.

Climate change and energy efficiency have been the focus of your business for a long time. Can these challenges be overcome?

The sooner we start down the path of energy transition, the sooner we will be on the path to energy security and climate change miti gation. It comes down to three key actions: saving energy, changing the way we use energy and, finally, ensuring the mix of energy sources is much greener and contains more electricity, because that is the only path to decarbonisation.

Fortune magazine recently surveyed the 500 largest companies and found that only 8% of them are fulfilling their sustainabil ity plans. How would you comment on this?

Schneider Electric surveyed more than 500 senior executives from companies on the same list, in order to determine what makes these goals so difficult to achieve. The prob lem is the unavailability of data, but also the alignment of sustainability goals with those related to business strategies, appropriate supply chains and technologies. For that, we took two elements: digitali sation is a major disrupter, because when everything is connected you know what is happening, where you spent and where and how you can save. By implementing our EcoStruxure platform in plants or building

B y implementing our EcoStruxure platform in plants or building sites, we are targeting 30% to 50% energy savings thanks to digitalisation. The other element is decarbonisation: energy must be more electric, because electricity is the only passport to decarbonisation

sites, we are targeting 30% to 50% energy savings thanks to digitalisation. The other

element is decarbonisation: energy must be more electric, because electricity is the only passport to decarbonisation.

Considering the significant impact that Schneider Electric has, you are expected to continuously create new green solutions? One of our latest solutions is the revolution ary AirSeT – an innovative and sustainable switchgear that uses purified air as an in sulator, combined with Schneider’s new vacuum-based circuit breaker technology. This is a significant step in the direction of decarbonising electricity and obtaining truly green energy plants.

Pledge Of Sustainability For Years to Come

Improved management of water resources in the brewing industry, the design of a more sustainable business model and development of innovative, circular economy-based solutions are only some of the initiatives launched by Apatin Brewery last year

Allthe results achieved by Apatin Brewery in the segment of sustainability were presented in the 2021 Sustainability Re port, entitled “We Gave Our Sustainable Word”. An event organised to mark the occasion saw guests addressed by Apatin Brewery General Manager Igor Vukašinović.

“I am proud that sustainability has been an integral part of our operations for decades and that we are a company with a very important strategic focus – to initiate, and maintain for many years, initiatives aimed at making the community where we operate better, with our responsible and sustainable business operations. And we will not stop there: we’ve set ambitious goals that we wish to accomplish and we will strive to be the best partner for business sustainability on that road. Our company will continue to give its sustainable word in the years to come as well!” said Vukašinović.

As a responsible company, Apatin Brewery participates in numerous initiatives aimed at en suring the better management of water resources in the brewing industry. Climate change is one of the biggest global challenges of our times, and the company’s priorities include carbon emission reduction in operations and the design of a more

Last year, together with GIZ, NALED and Sekopak, the project “Glass Packaging Management in the Western Balkans” was implemented. Worth 150,000 euros, it enables the procurement of required infrastructure in the form of as many as 600 large waste receptacles for collecting glass packaging

sustainable business model. Aiming to minimise the disposal of packaging waste at landfill sites, innovative, circular economy-based solutions are developed in order to reduce the company’s environmental impact.

Last year, together with GIZ, NALED and Se kopak, the project “Glass Packaging Management in the Western Balkans” was implemented. Worth 150,000 euros, it enables the procurement of required infrastructure in the form of as many as 600 large waste receptacles for collecting glass packaging. This was all executed with the aim of increasing the rate of glass packaging collected by 20 per cent, in order to establish a cost-effective

system of glass waste treatment and reuse, in both Serbia and across the region, all within the scope of improvements of the existing extended producer responsibility system.

Responsible alcohol consumption is an impor tant topic that Apatin Brewery, together with the Interior Ministry, Traffic Police Administration and Traffic Safety Agency, launches publicly and warns of driving under the influence of alcohol. Within the “Don’t Drink and Drive” campaign, the brewery has focused on educating consumers over the last 16 years, in order to raise awareness of all negative consequences of alcohol consumption when driving. By 2021 alone, around 130,000 euros had been invested in procuring 135 latest-generation alcometers and 50,000 alcometer mouthpieces.

Over the course of 2021 as well, Apatin Brewery, Jelen beer and SEKOPAK, the national operator of the packaging waste management system, continued the “Recycle, Enjoy, Protect the River Drina from Waste” campaign, within which they enabled attendees of this water carnival to properly dispose of packaging waste. In collaboration with public utility company “12 septembar”, up to 230 kg of aluminium cans and 600 kg of glass packaging were collected.

BY NGOZI OKONJO-IWEALA, DIRECTOR-GENERAL OF THE WORLD TRADE ORGANIZATION, FORMER MANAGING DIRECTOR AT THE WORLD BANK

Fixing The Food Trade

In addition to getting food from where it is abundant to where it is needed, trade supports jobs, livelihoods, and incomes. But too often, international markets for food and agriculture function poorly, owing to tradedistorting subsidies and high levels of protection – two problems that have worsened in recent years

Between rising hunger and the pros pect of still more supply shortages, dark clouds are hovering over the global food system. Not only has the war in Ukraine limited access to, and raised prices for, food and fertiliser, but extreme weather events are disrupting production, and economic downturns have

diminished people’s ability to afford ade quate and nutritious diets. Climate change is fuelling droughts and exacerbating water scarcity, adding to the list of threats facing agricultural production.

Progress in tackling hunger and malnutri tion was already stalling before the COVID-19 pandemic. Now, the World Food Programme

estimates that the number of people facing, or at risk of, acute food insecurity (defined as those who “lack regular access to enough safe and nutritious food for normal growth and development and an active and healthy life”) has increased by more than 200 million since 2019. Key global objectives like the second United Nations Sustainable Devel

opment Goal – which commits countries to end hunger by 2030, and to improve nutrition and promote sustainable agriculture – are significantly off track.

Trade is vital for achieving food securi ty, as the World Trade Organization’s 164 members emphasized at our 12th ministerial conference (MC12) this past June. Apart from its basic role as a conveyor belt for getting food from where it is abundant to where it is needed, trade supports jobs, livelihoods, and incomes. It is a key factor in the sustainable and efficient use of scarce global resources.

But all too often, international markets for food and agriculture function poorly, owing to problems like trade-distorting subsidies and high levels of protection. In many regions, persistent underinvestment in research, extension services, and market-linking in frastructure has led to low and stagnating agricultural productivity. Crop yields across much of Africa are particularly small, and have not matched the increases achieved in other developing regions.

WTO members have taken some impor tant steps to address these problems. In 2015, they agreed to eliminate agricultural export subsidies – payments that cover the difference between domestic costs and international market prices – which are widely seen to distort production and harm farmers in other countries. The use of such subsidies has fallen dramatically, from almost $7 billion in 1999 to under $12 million in 2020. But OECD data show that total public support to the farm sector in 54 advanced economies and 11 major emerging markets reached $817 billion in 2019-21. And only $207 billion of that was for general services such as research, training, or payments to consumers.

Other support programs frequently in centivise unsustainable production and consumption patterns and undermine fair competition in global markets. While average tariffs on agricultural products were around 6% in 2020, many countries maintained prohibitively high tariffs on certain products, with peaks reaching 1,000%.

At the beginning of this year, food prices had already reached high levels compared to recent years, and international agencies had begun to warn of growing hunger. Then the war in Ukraine made the situation much worse. Prices spiked to record highs, and WTO

monitoring found that many governments responded by restricting food exports, potentially easing strains at home but exac erbating shortages elsewhere in the world.

Against this backdrop, the multilateral cooperation that we saw at MC12 in June was most welcome. WTO members collectively committed to exempt World Food Programme humanitarian purchases from export restric tions – saving the agency time and money in providing relief to millions of vulnerable people. They pledged to keep agri-food trade open, and to minimise the trade distortions resulting from emergency measures. And they agreed on a binding accord to curtail $22 billion in annual public spending on harmful fisheries subsidies, which will contribute to food security and livelihoods by improving the health of marine habitats.

At the beginning of this year, food prices had already reached high levels compared to recent years, and international agencies had begun to warn of growing hunger. Then the war in Ukraine made the situation much worse

But over the past month, export restric tions on food, feed, and fertilisers have ticked back up, reversing the earlier downward trend. The total number of such measures introduced since February – and still in force – is now up to 52. The WTO is working hard through monitoring, transparency, and jawboning to bring this number down, but it remains a cause of global concern.

Ensuring that trade contributes to a more sustainable and equitable global food system will require greater efforts to align trade, environmental, and food policies. A holistic approach to managing how food is produced, distributed, and consumed is necessary to maintain sufficient supply, address climate and other environmental risks, ensure sus tainable land use, and manage scarce water resources. A long-overdue update of the WTO rulebook for agricultural trade is needed more urgently than ever, because we need to create a better incentive framework for investment in the sector.

To find solutions to growing food insecuri ty, we must expand the dialogue and explore the systemic drivers of the problem. With a stronger evidence base, WTO members will have a better understanding of how trade can be used to the fullest possible extent to enhance access to food for everyone.