This is how Hungarian companies fare in the green transition

66% of Hungarian companies committed to a sustainable transition have specific climate change targets, and the number of companies measuring their emissions along the entire value chain has doubled, according to the survey, which was presented by Flóra Borek, Senior Manager of Deloitte's Sustainability and Climate Change Advisory team, who highlighted the following:

"There has been no setback in the green transition of companies, this process has already started, partly with the introduction of EU rules. The responding companies have clearly indicated that they are measuring their emissions." The expert also said that 76 member companies completed the survey, significantly more than in previous years, which also shows that carbon emissions are being addressed by companies. She said: "We often see companies setting targets but not backing them up with measurements. It is also common that, because of pressure from investors or even competitors, they set targets that they may not be able to meet. We therefore also wanted to assess how the targets are being met."

The picture that emerges from the research is that there has been a major improvement in the amount of data collected from companies' own operations and on energy purchased, and that data collection along the supply chain has also started, which can be attributed to the emergence of EU regulation.

According to the survey, 26% of leading domestic companies have a scientific emissions reduction target that meets the 1.5 degree target. While this is higher than the global average, it is still far below what is needed to achieve it.

Companies plan to reduce emissions in the following areas:

84% want to reduce emissions from their own operations by improving energy efficiency and 78% by using renewable energy.

And 66% of them consider the exploration and implementation of circular solutions in the value chain to be a good solution.

Irén Márta, Director of BCSDH, said at the presentation that it is clear that a significant part of specific decarbonisation solutions for companies is linked to renewable energy. At the same time, there are already examples of the circular economy being addressed, which is particularly important because without it the green transition will not work. "It is a competitive advantage to operate sustainably," the director stressed, adding that "it is not the size of the company that matters when it comes to maturity in the green transition. It's the person of the CEO, his or her commitment and the company culture that really matters. Some family businesses have been working on local energy production for 10 years."

According to the experience of Tímea Pesti, CEO of the mobility service provider that was formed by the merger of Ayvens, ALD Automotive and LeasePlan, recognition and action - i.e. when a company or a manager moves towards zero performance - can be highly motivated by leading by example, which can then also lead to a competitive advantage.

"There are solutions that a company can easily, almost automatically, adopt, but there are also factors in its own operations, in the services it provides, that are not self-evident as to how it can become more sustainable. As a fleet manager, a good example is the colour or size of the cars you offer - these have a big impact on your emissions figures. I am confident that fleet greening in companies will soon go beyond buying 3 electric cars - it is far from enough," she said, adding that "It is also important to have motivation and commitment from the management level, but it is also very important that employees are partners in this. In addition, perhaps the most difficult thing is to encourage the supplier base. As a fleet manager, Ayvens has a big impact on the carbon footprint of the whole value chain. Therefore, in addition to making our own operations more sustainable, it is of paramount importance for us to shape the mindset of our customers and partners."

During the presentation and discussion, Barbara Botos, the Ministry of Energy's Travelling Ambassador for Climate Affairs and Climate Diplomacy, drew attention to global change, explaining that the mathematics of global warming are very simple: as emissions increase, the average temperature of the planet is increasing at an accelerating rate. If emissions are stagnant, the average temperature will continue to rise at a non-increasing rate. If, on the other hand, the emissions balance turns negative, with more carbon sequestration, then we can say that global warming has not only stopped, but that the average temperature of the planet may start to fall. As long as emissions are "only" falling - but not negative - this will not happen.

"Globally, China is the largest carbon emitter, followed by the United States and then India. However, if we take these figures on a per capita basis, the United States remains the largest emitter. The big difference between China and the United States is that the former also provides substantial subsidies to the renewable sector at the state level. China's next step will be to ramp up energy efficiency, and a huge passive house boom is on the cards. The next COP, or climate summit, aims to get all countries to step up their ambition, to commit more than before.

What we are now seeing at the international level is that there is a realignment, after decades of free trade, each country is now trying to protect its own economy. Yes, the EU emissions trading scheme - which more and more countries are introducing - is having an impact, it makes sense for the EU to demand a fair green transition. We also need to stress that no one is on the other side of climate action, all countries are acting for the same goal," the expert said, concluding:

Mitigation and adaptation is the key issue, any technology, action, business, agreement that supports this will be future-proof.

Cover photo (for illustration purposes only): Getty Images