More Hungarian Firms Focus on Sustainability

Hungarian companies are becoming more future-conscious, but their motivation is different from that of foreign companies, according to a recent survey conducted by Siemens Plc. More than half of the surveyed companies have a sustainability system or policy.

Four out of five industrial companies in Hungary use the help of a sustainability expert to achieve their green goals. The activities that enhance sustainability are mostly focused on waste management (95%), energy efficiency (85%), and water management (78%), as the recent survey conducted by Siemens Plc. reveals. The companies surveyed mostly pay attention to environmentally responsible operations and do their part in social responsibility; however, they point out the lack of resources as the main obstacle: almost half (45%) have applied for external support to achieve sustainability goals. Sustainability is therefore an increasingly important issue for domestic firms, but their underlying motivation is different from that of companies with foreign ownership.

Siemens Zrt. conducted a comprehensive survey (in-depth interviews and questionnaires) among Hungarian industrial companies with more than 20 employees or a turnover of HUF 1 billion. The survey revealed that sustainability plays a key role in the lives of Hungarian companies, and they are trying to keep future awareness in mind in their daily operations. The larger the market share, the more likely a company is to devote significant energy to environmental awareness and social responsibility, and organize its related activities around a central strategy. Overall, 54% of the survey respondents have a sustainability system/policy in place, and 80% work with a full-time/part-time (17%) or external (30%) expert, or have someone in-house (33%).

In terms of sustainability, 59% of responding companies have short-term plans and 42% have long-term plans, with a general focus on waste management (95%), energy efficiency (85%), and reducing water and air pollution (78%), while it is also increasingly important to preserve biodiversity (61%), use verifiable resources (58%), and develop products with sustainability in mind (57%). Companies are satisfied with their own efforts, with two-thirds saying that they are doing similarly to their competitors in this area, and one in five thinking they are doing more than the other market players to ensure a sustainable future. The vast majority of the surveyed firms also claim to be involved in corporate social responsibility, mainly through charities and sports organizations.

“According to their own admission, Hungarian industrial companies have so far achieved the greatest results in the fields of installing solar panel systems, selective waste collection, and reducing water consumption, but sustainable procurement is also playing an increasingly important role: more than two-thirds (70%) of companies take this into account when selecting their supplier partners,” András Simon, energy efficiency expert at Siemens Plc., says.

One in five of the companies surveyed sees the lack of resources as the biggest problem, and 14% expressed that there are no or not enough tenders for sustainability investments, meaning they are looking for external help to improve their own sustainability. At the same time, the more people a company employs, the lower the proportion who say that their sustainability investments are hindered by financial constraints, high investment costs, or lack of tenders.