Focus On - Serbia Goes Green

FOCUS

ON Serbia goes green

DUBRAVKA DJEDOVIĆ Minister of Mining and Energy

THE GOAL IS SUSTAINABLE

Decarbonization

Serbia’s new energy policy, oriented towards the future, to ensure energy supply and energy independence under the most favourable conditions for our citizens and businesses and sustainable, efficient and economical management of the decarbonization process.

The key goals will include increasing the share of RES in electricity production to 45%.

It is up to the Ministry of Mining and Energy to continue to improve the regulatory and investment framework, as it did with the Law on the Use of RES, as well as with the amendments to the Law on Energy. We will work to stimulate the development of RES and continue having a dialogue with the business sector on how to overcome and prevent the challenges related to the Carbon Border Adjustment Mechanism.

On 13th July, Color Media Communications organized the conference in Belgrade titled “Serbia Goes Green.” We are bringing you the opening speech of the Minister of Mining and Energy in the Republic of Serbia Government, Dubravka Djedović.

The question of ensuring energy security and energy independence, and at the same time, preserving and improving the environment, is a question that is crucial for the future of both Europe and our region. Economy and ecology are now more than ever connected and intertwined, so just as nature provides minerals and other resources from which we get electricity, everything that is done related to energy must be evaluated from the standpoint of environmental impact.

Serbia, as a country striving to become an EU member, shares Europe’s vision when it comes to its vision for the future of the energy sector, primarily in terms of striving for its decarbonization. The road to

achieving that vision must be financially sustainable and socially just and must protect the industries and workers most affected by the energy transition.

With the integrated national plan for energy and climate of the Republic of Serbia, covering the period until 2030 with projections until 2050 and the drafting of INEKP (Integrated National Energy and Climate Plan), which is currently being discussed by the national MPs, Serbia put its money where its mouth is when it comes to blazing our trail in the energy transition, i.e. setting are our priorities, defining the steps and sequence of activities, determining required funds, etc.

Together with the Energy Development Strategy, which covers the period until 2030 with projections until 2050, this will be the framework of

To achieve the targeted goals by 2030, we have defined a total of 156 measures that INEKP contains, of which 68 pertain to reforms. We have also defined priority areas for investments in new production capacities, which envisage the construction of around 3.4GW of solar and wind power plants, as well as the construction of a new gas power plant.

Our investment priorities related to the process of decarbonization, but also to all other segments of the energy sector, are stated in the baseline of the plan for the development of energy infrastructure and energy efficiency for the period up to 2028 with projections up to 2030, which was adopted by the Government of Serbia and includes, among other things, construction of the Bistrica reversible hydroelectric powerplant, overhaul and revitalization of the Djerdap 2 hydroelectric power plant, consideration of the financial and technical profitability of the Djerdap 3 reversible hydroelectric power plant project, construction of the Kostolac wind farm and solar power plants of 1GW capacity.

In September, the public call for market premiums for the new 450MW capacity for the production of sun and wind-generated energy will end and our three-year plan foresees 1,300 MW of new capacity generated by RES. Through subsidizing energy efficiency measures in households and stimulating citizens and small businesses to become their own electricity producers, we want to encourage as many citizens as possible to become active participants in the energy transition.

Our will and willingness to work towards accomplishing energy and climate goals is firm and unquestionable. We believe that our goals are both ambitious and realistic when we know what our starting position is regarding the participation of coal in the energy mix and when we know that we do not have available funds that the EU provides to its members in the energy transition process.

In order to have successful decarbonization and green transition, it is very important that, like the EU members, we have strong and continuous support from the European Union, international partners and financial institutions.

IT IS UP TO THE MINISTRY OF MINING AND ENERGY TO CONTINUE TO IMPROVE THE REGULATORY AND INVESTMENT FRAMEWORK

Our will and willingness to work towards accomplishing energy and climate goals is firm and unquestionable

SERBIA MOVED From Words to Actions

On Thursday, July 13, the “SERBIA GOES GREEN” conference organized by Color Media Communications was held in the full hall of the Hyatt Hotel in Belgrade, dedicated to protecting the environment and preserving the nature that surrounds us

The guests were greeted at the beginning by the host, Robert Čoban, president of Color Press Group, saying that for most people in Serbia, this is an important topic and that’s why we deal with it every year and we hope to contribute to raising awareness and new ideas in solving environmental problems that are our everyday life.

The conference was opened by Dubravka Djedović, Minister of Mining and Energy in the Government of the Republic of Serbia, saying that Serbia has moved from words to actions in the field of energy and energy efficiency.

“This week, the Ministry of Mining and Energy presented the National

Plan for Energy and Climate of the Republic of Serbia until 2030, with a vision until 2050. The key goals we

have set are to increase the share of renewable energy sources in electricity production to 45%, which will make renewable energy sources, in addition to coal, an equal domestic source of electricity, a significant increase in energy efficiency without which we cannot achieve the energy transition, as well as a reduction in gas emissions with by the greenhouse effect by 44% by 2030. With the state subsidy, we will stimulate citizens to invest in energy efficiency”, concluded Djedović.

The gathered were addressed by H.E. Emmanuele Giaufret, Ambassador and Head of the European Union Delegation to the Republic of Serbia, who said at the beginning of his presentation that the European Union had set a high goal for the future that Europe will become a climate-neutral continent by 2050 and that 57% of the goals will be reached by 2030.

It is no longer important only what we do but also how we do it and what benefit and impact it has on society

THE IMPACT ON THE COMMUNITY IS SEEN AND HEARD, AND CAUTION IS NECESSARY

“The European Union wants Serbia to become its member, and we are helping it prepare for its membership. This is where the Green Agenda is very important, and we are ready to help with the infrastructural changes that must take place in the green transition”, Giaufret added.

Tatjana Matić, director of the Fund for the Development of the Republic

trepreneurship, we have paid special attention to projects related to the green transition. Thus, in previous years, and mostly in 2022, the fund approved investment loans for the installation of solar panels, equipment for solar power plants, and biogas plants. A total of 202 million dinars in loans and 25.4 million dinars in grants were approved for such jobs”, Matić added.

cijalna Banka, Maja Vukadinović, Special Advisor for Energy Efficiency at the Ministry of Mining and Energy, Radman Šelmić, Ph.D., adviser to the President of the Serbian Academy of Sciences for Green and Circular Economy and Digital Transformation, and Mia Zečević, owner and general director, Novaston. The moderator was Teodora Pasulj, ESG manager, PwC Serbia.

sustainable operation of the bank itself. All the electricity we used in 2022 came from renewable sources, reducing our carbon footprint by more than 6,000 tons. We have implemented a paperless procurement process, by the end of the year, we will put into operation our first solar power plant on the roof of the central building, and we are also planning a gradual replacement of the fleet with hybrid and electric cars”, said Dejan Janjatović, Deputy Chairman of the Executive Board of NLB Komercijalna Banka.

“Those companies whose projects are not aligned with ESG standards will have a different risk assessment, it will be more difficult for them to borrow, get a development loan or a development investment – in general, they will have wor-se financial conditions,” said Mia Zečević from the Novaston company.

“It would not be wrong to say that the application of ESG principles is particularly important in the real estate industry. In our market, this implies a kind of investor education”, added Zečević.

The second panel was “Planet First – Projects and Actions That

of Serbia, also greeted the audience and pointed out that sustainable use of resources and energy, reduction of negative impact on the environment, application of innovations and digital tools and, above all, knowledge, has become the umbrella criteria by which the Fund is guided when awarding of funds to the economy.

“I must point out that up until now, within the line for investment loans and loans for the promotion of en-

After the official opening, panel discussions began where we heard from people from the profession and business what is being done and planned in the field of environmental protection.

The first panel at the conference was “Focus on ESG – Environment, Society and Management at the Center of Business,” in which participated Dejan Janjatović, Deputy Chairman of the Executive Board of NLB Komer-

ESG is a topic in its infancy in Serbia, and we have yet to discuss it and see how companies comply with these standards.

“NLB Komercijalna Banka has placed the principle of sustainability at the center of its business actions and banking decisions. We took a significant number of steps in 2023, which contribute to both society and the environment, and ensure the

Protect the Environment for Future Generations” and was attended by Milica Begenišić, ESG manager, Yettel, Olga Gavrić, Ph.D., teaching associate, Faculty of Agriculture in Belgrade, Majda Adlešić, owner and director, Ekokoncept Pogon, Nevena Djukić, director of CEEFOR and Dragana Korica, executive director, Green Building Council of Serbia. Marina Lučić, sociologist and PR expert, moderated the panel.

THOSE COMPANIES WHOSE PROJECTS ARE NOT ALIGNED WITH ESG STANDARDS WILL HAVE A DIFFERENT RISK ASSESSMENT

Many actions and projects to improve the ecological situation in the country are being developed and implemented. We are becoming more aware that we must start with ourselves to change society. The transition must start with individuals, companies, and interested target groups.

“Yettel company collected and recycled 133 tons of plastic and 64 tons of paper, and for 10 years, we have not used plastic bags in our stores, and we offer users the option of an electronic receipt instead of a paper one. We have set an ambitious goal of having one million recycled mobile devices by 2025.”, stated Milica Begenišić, ESG manager.

The last panel was “Sustainable Development in Serbia – Challenges, Reporting and Business by the Principles of Sustainable Development,” and the speakers were Tijana Koprivica, Director of Sustainable Business, Delta Holding, Svetlana Popović, Senior Media Buyer & QMS Representative, Direct Media United Solutions, Jovan Protić, national coordinator of the International Labor Organization (ILO) for the Republic of Serbia and

Milan Veselinov, founder and director, CirEkon. The moderator was Ana Bovan, president of the Central European Development Forum (CEDEF).

It is no longer important only what we do but also how we do it and what benefit and impact it has on society. The impact on the commu-

nity is seen and heard, and caution is necessary. And greater involvement of all interested parties is also necessary.

“Delta Holding has many socially responsible projects, and we try to make them development-oriented projects that contribute to the community because we link this

with our sustainable development. We want to transfer our knowledge to others and help small entrepreneurs, especially farms, where we teach them how to make their businesses sustainable”, said Tijana Koprivica, director of sustainable business.

“Direct Media is a company that takes great care of its employees and follows all world trends that contribute to the sustainability of the system. The certificates we receive are only a confirmation of our work and values that are a key part of our system. We have just received a silver medal from the international agency for evaluating corporate social responsibility – ‘Ecovadis’, we are the first domestic media agency to have a full ‘Family Friendly certificate’, which indicates that this company creates and nurtures a family-friendly environment, and at the end of the certification for Socially Responsible Employer, which will make us the first company in Serbia with this certificate”, stated Svetlana Popović, Senior Media Buyer & QMS Representative, Direct Media United Solutions.

“SERBIA GOES GREEN” once again gathered the most invited people to talk about environmental awareness, sustainable development, circular economy, and ESG standards and confirmed the leadership position in the organization of environmental and other events in the region.

The event was supported by Coca-Cola HBC Serbia, NLB Komercijalna Banka, Direct Media United Solutions, Yettel, Delta Holding, and Novaston.

YETTEL SET AN AMBITIOUS GOAL OF HAVING ONE MILLION RECYCLED MOBILE DEVICES BY 2025

by Dejan Janjatović

The Evolution OF THE ESG CONCEPT FROM A REPUTATIONAL OPPORTUNITY TO A LEGAL OBLIGATION

Global investors are paying more and more attention to ESG criteria and billions of dollars are being invested in companies that prioritize sustainable and ethical practices. As the British economist John Elkington said: “Profitability does not have to be at the expense of the planet and people.” It is proven that companies that successfully integrate ESG into their strategies often achieve better financial results in the long run.

The reputational element of the ESG concept, which was the basic motive in the 1980s and 1990s, has now been somewhat overcome. An increasing number of individuals and organizations are understanding the essence of the problem - to secure and preserve their business in the long term, but not at the cost of affecting the health and well-being of the community and the planet. As Thomas Fuller once wrote: “We never know the worth of water till the well is dry.” Similarly, the value of ESG in business is becoming increasingly clear as we face growing social and environmental challenges.

On the other hand, regulatory bodies are insisting more and more on the implementation of ESG standards.

As issues such as climate change and social inequality become more pressing, governments around the world are introducing laws that oblige companies to address these issues. As the famous American politician Al Gore said: “Continuing doing business according to the old model is no longer sustainable, neither economically nor environmentally”.

The trend is set in such a way that the demands of investors and regulators are becoming stricter and more exclusive. More and more companies are expected to report in some form the impact of their operations on the environment and society. Carbon taxes will be prescribed for everyone who contributes to increased gas emissions through their business. This will encourage all companies to invest in solutions aimed at reducing them.

The European Central Bank has already identified climate change as one of the biggest risks for the economy and the financial sector and accordingly prescribed that banks must analyze climate and environmental risks, based on the Instructions on Climate Risks and Risks Affecting the Environment. The document set 2024 as the year by which all banks in the Europe-

an Union must adapt to the rules prescribed in the Instructions.

Accordingly, our parent NLB Group, as a leading banking and financial group with its headquarters and exclusive strategic focus on the region, formalized the principle of sustainable development in 2011, and confirmed it in 2020, placing it at the centre of its business.

NLB Group, and thus NLB Komercijalna Banka, are signatories of the Principles for Responsible Banking of the United Nations, as well as the Net-zero banking alliance. These initiatives oblige the bank to become Net-zero by 2050, i.e. that the quantity of greenhouse gases emitted thanks to its own operations be equal to the quantity of gases that, through various initiatives, have been removed from the atmosphere.

The bank has committed itself to defining gas reduction targets until 2030, as well as targets for every five years between 2030 and 2050.

All the electricity we used in 2022 (about 10gwh) came from renewable sources, which reduced our carbon footprint by more than 6,000 tonnes (thanks to purchasing electricity from renewable energy sources), which is 64% less compared to the previous year.

We have implemented a paperless procurement process, which means

that procurement in the bank is done exclusively electronically and with no paper in all steps. Sustainability as a criterion in the procurement process is very important to us, which is why we give preference to suppliers who contribute to the protection of the environment and society or promote these values.

We will soon put into operation our first solar power plant installed on the roof of our office building. The plan is also to gradually replace our vehicles with hybrid and electric cars, plus to get our employees to start using electric bicycles for shorter distances.

We are proud of the projects thanks to which we have been raising public awareness of the importance of sustainability and helping the communities in which we operate, and I am primarily referring to Organik, Support Framework and Housing Loans for Young People. We firmly believe that with projects like this, we encourage thinking and discussion about a sustainable future.

The road to a sustainable future is neither easy nor short, but we must undertake it, not only for our sake but also for our children and generations to come. Let’s work together to create a better future and make our country Serbia and planet Earth a great place to live and for new generations.

The ESG concept is not new, but its importance has grown in recent years, driven by increased awareness and concern about climate change, social inequality and corporate abuses

Deputy Chief Executive Officer of NLB Komercijalna banka

“CONTINUING DOING BUSINESS ACCORDING TO THE OLD MODEL IS NO LONGER SUSTAINABLE, NEITHER ECONOMICALLY NOR ENVIRONMENTALLY.” – AL GORE

by Nikola Gudelj

the Natural Environment WE NEED TO STRIKE A WISE BALANCE WITH

ANA BOVAN CEDEF

What is the current level of awareness of energy consumption in Serbia in the general public and companies?

The current situation is polarized. The world is going through an energy crisis and experiencing high energy prices, and together with

the unpredictability of geopolitical influences, all of this has negatively affected inflation in a huge number of economies. We still do not feel the drastic nature of these global changes. The awareness about energy consumption in Serbia differs in relation to the importance of energy consumption for users. Companies are far more interested

and monitor consumption, prices and even geopolitical events. This is logical because the production and final product price include the

cost of energy sources. An example of an industry that is relevant to us is the production and processing of food and beverages, where en-

THE PURSUIT OF ECONOMIC GROWTH CONFLICTS WITH ENVIRONMENTAL PRESERVATION, JUST AS THE PURSUIT OF SOCIAL JUSTICE MAY HAVE IMPLICATIONS FOR ECONOMIC EFFICIENCY

It is not easy to maintain a balance between human needs, the civilization we are developing and the living environment

ergy products account for about 20% of the production price, while in the construction and chemical industries, the percentages are up to three times higher.

As far as individual users go, the electricity here has a relatively low price, while fuel costs cause somewhat more attention in terms of consumption. In general, we have had a fairly stable supply for about three decades, while our awareness of consumption and savings has not been fully developed. Our awareness level cannot be compared to the awareness in markets where the supply is unstable and depends directly on the upheaval in the global market.

In what ways can the circular economy contribute to the fight against climate change?

My view is that the circular economy plays the main role in preserving natural resources and environmental protection. It is not easy to maintain a balance between the needs of man, the civilization we are developing and the living environment, both the one we inherit and the one we should leave to the next generations. These conflicting goals require balancing social, economic and environmental goals, which always leads to compromises and even conflicts in practice. The pursuit of economic growth conflicts with environmental preservation, just as the pursuit of social justice may have implications for economic efficiency. These are all real problems. However, in Serbia, we must all work much more to actively reduce air, land and water pollution, because it most directly affects the health and quality of life of people today and here, as well as of future generations. The circular economy provides solutions in that direction.

How does CEDEF, as an expert organization, contribute to the promotion of the circular economy and sustainable development in Serbia?

CEDEF focuses on the topic of sustainable development in Serbia and the region and during the last 20 years, we have implemented numerous research projects, and education programmes for students and energy managers, especially through the creation of MEMS, the first network of energy managers in Serbia ever. We have placed special

emphasis on cooperation with local governments because concrete important environment-related projects take place locally. Cities and municipalities are the main places where the strategy is implemented and it was important to open the topics such as sustainable development and replacement of old technologies and fossil fuels. Truth be told, energy efficiency is not a particularly attractive topic for local elections and it does not attract votes. Nevertheless, with brave and prudent local governments, we have done a lot on these strategic programmes.

Have you noticed that public interest in energy efficiency and renewable energy sources is growing?

During the activities we have carried out in the last twenty years, we saw a substantial increase in the interest of the public, especially among experts. The topics of efficient use of energy, sustainable development and circular economy inevitably intertwine and there is a growing interdisciplinarity in the approach. During the implementation of many concrete projects that gather researchers and practitioners, we have worked with energy experts, biologists, physicists and climatologists, but also economists, lawyers,

We certainly need more knowledge and a reliable education and information system, which comes under the domain of the state and the education system. We need an education that highlights the importance of a healthy environment that we should take care of, without shutting down everything that consumes energy and creates waste, i.e. all factories, mines, traffic, construction activities, pharmaceutical companies, petrochemicals, steel plants, cement plants and others. That’s not easy and it takes a lot of effort at various levels and across the entire connected ecosystem to seriously address it. Educating staff who have the ability to balance importance and interests, both in the economy, science, legislative and executive authorities and who can work together for the benefit of long-term interests of people today, but also of new generations, is a huge task, I would add, the patriotic job of the highest rank.

What role does energy efficiency in times of crisis, when cutting costs is a priority, play?

When I participated in a panel discussion on energy issues with Germans, Norwegians and French at the Economic Forum in Poland in 2011, my colleague from Paris,

as shocks and disruptions in the energy market. This is especially relevant if a country is an energy importer like us. Since we have not been exposed to serious energy crises for several decades and we have not developed a significant awareness of savings and alternatives, I see a big untapped potential in encouraging the implementation of energy efficiency measures through education and concrete action plans.

How is the intergenerational justice concept reflected in the circular economy?

communicators and IT specialists. We see this as a positive development.

How much effort did the state and the media invest in informing the public about the importance of the circular economy, that is, the rational consumption of energy?

We need a little more alarmism. The media report on uninteresting topics only when an alarming situation arises. Although we generally blame them for such a modus operandi, I think that we lack a bit of dramatization here. To clarify, I am not referring to alarmism about the supposed doom of the planet in a year or so or neo-pagan extreme movements and the uproar they create. We need an improvement in the quality of life through progress, but also to strike a wise balance with the natural environment.

Marc, mentioned the term „negawat” as a new concept implemented by the Schneider Electric Company. This was the right expression for energy efficiency, which we normally call „the first fuel” and a good representation of how important the concept is and accessible to everyone. It is one of the fastest and most cost-effective options for reducing energy bills and boosting energy security. Together, energy efficiency, electrification, changes in behaviour and digitization shape global energy intensity, i.e. the amount of energy needed to produce a unit of GDP, which is a key measure of an economy’s energy efficiency. We need security as well as efficiency.

Any seriously-minded organization, including the state, has its own strategic plans for continuity and resistance to macro shocks such

Despite technological progress, we still depend on the environment and natural resources. Our philosophical theories of justice, however, falter in trying to address the normative questions raised by environmental problems and resource depletion. Sustainable development and circular economy embrace the concept of intergenerational justice. Priority should be given to policies and practices that will not jeopardize the safety and environment of future generations. The time frame for planning our „ecological footprint” should be at least 300 years. We should also not jeopardize growth and shut down the economy, but we should be careful about external effects, everything we consume from natural resources, everything we pollute or poison by our activities related to land, water and air and be mindful of the environmental debt that we leave to 10 generations after us.

How can investments in new development projects and new technologies support the transition to a circular economy?

We are living in a century when we as, a specie, will decide whether we want sustainable or unsustainable development. I’m an optimist. After awareness and education, finances are crucial. But they will not be activated if the awareness of the importance and urgency of sustainable development is not developed in parallel. We need to invest more in science and research, in new technologies, processes and materials, but also in learning about circular business models. We are only at the beginning of the century when we need to implement this approach to development needs in practice.

THE MEDIA REPORT ON UNINTERESTING TOPICS ONLY WHEN AN ALARMING SITUATION ARISES

Protecting the Environment IS EVERYONE’S RESPONSIBILITY

We talk with Milica Begenišić, ESG manager at Yettel, about the reasons and manner of working, the most significant projects and the public’s reaction to their initiatives.

Which of Yettel’s projects would you highlight as the most significant in terms of environmental protection?

First of all, I would like to say that this topic is not a “project” for us, but represents the way we think and work in all spheres of our business. Large companies have the power to initiate positive changes, and we, as a leading mobile operator, have taken that role seriously.

The most important topic for us is device recycling because it has been going on for over two years. We have over half a million recycled devices and are constantly adding something new.

Last year we also became the first 100% green network because we use only electricity from renewable sources for our base stations. In addition to base stations, green energy also powers 31 Yettel stores.

In the advertisement for the green network, we presented the phenomenon of the flowering of Tisa Mayfly. Tisa mayfly is an insect older than dinosaurs. It lives as a larva for three years in the river mud. One day in June, it comes to the surface to prolong its species. It lives only in clean waters, and when it disappears from the river due to pollution or other factors, it never returns. Tisa is the only river in Europe where this unique natural phenomenon still exists, and it is essential to preserve it and to know more about it. That’s why we also supported the event “When Tisa Blossoms,” which takes place every year in June, and nature lovers could follow the phenomenon of flowering live on the Yettel YouTube channel because we

broadcast the flowering through the Yettel network.

Can you tell me how people have responded to your initiatives, particularly the program for recycling old mobile phones?

The response from users to our mobile phone recycling program has been exceptional. Over a period of two years, we received over half a million old devices for recycling, which amounts to more than

45 tons of electronic waste that we recycled together. This initiative enabled us to dispose of and reuse 12 kg of gold, 7.8 tons of copper, 170 kg of silver, and 7 kg of palladium. The overwhelming response from users demonstrates that people are becoming increasingly environmentally conscious and are eager to participate in preserving the environment when provided with a simple solution. As a result, we decided to reward the users who recycled the most devices and the

one who recycled the half-millionth device.

Recycling of electronic and paper waste is a significant aspect of environmental protection. Can you explain what are the specific measures of Yettel in this area?

Due to the positive feedback from our customers, we have decided to expand our recycling program. And now, any item purchased from Yettel stores can be brought in for recycling and safe disposal. With their help, we are confident that our goal to recycle one million devices by 2025 is easily achievable.

Aside from electronic waste, plastic, and paper waste also pose a significant threat to the environment, and all citizens who want to recycle their municipal waste are aware of this. Waste separation containers may not be readily available in all areas or may be located far away, and people usually do not possess adequate knowledge about recycling processes. We aimed to provide a practical solution to this issue, which led us to introduce the Eco Bonus digital service. By activating this service, our users choose to have 4.6 kg of plastic and 2.2 kg of paper/cardboard waste recycled on their behalf, which is the amount of waste that the average resident of Serbia generates every month.

It’s important to note that this amount of waste isn’t typically included in Serbia’s quotas or those of national recyclers - we insisted that additional amounts be recycled in Serbia, so it really makes a difference. We give customers the option to help us reduce paper use by receiving an e-bill, and more than 64% of individual customers have used this option. We are always looking for new ways to expand our green initiatives and, naturally, involve users, partners, and the community.

Ecology is becoming more and more important for large companies. As relatively new brand, Yettel has already stood out in Serbia for its contribution to the environmental protection and customers’ involvement

LAST YEAR WE ALSO BECAME THE FIRST 100% GREEN NETWORK BECAUSE WE USE ONLY ELECTRICITY FROM RENEWABLE SOURCES FOR OUR BASE STATIONS

ESG manager Yettel

In a world where sustainability is becoming a central theme, Delta Holding stands out as a pioneer in this area. We spoke with Tijana Koprivica, Delta Holding’s Chief Business Sustainability Officer, about how innovation and cooperation with local suppliers are leading this company to a brighter, greener future.

How important is sustainability reporting for companies like Delta Holding?

Sustainability reports are of great importance to all companies. Thanks to this non-financial report, customers, suppliers, banks, insurance companies and employees gain insight into whether the company acts responsibly towards its stakeholders and cares about employees, the environment and the community in which it operates.

How informative the reports will be depends on the methodology used by the particular company. We have been reporting in accordance with the Global Reporting Initiative methodology since 2010. This internationally recognized methodology clearly defines what the business should report on and how the information and data should be presented. It also requires the company to ascertain the so-called double materiality, which determines how certain aspects of sustainability affect the company’s operations on one side, and stakeholders and the environment on the other.

TECHNOLOGY IS CHANGING THE FACE OF AGRICULTURE AND CREATING a Better Future

Innovation, ethical suppliers and education as pillars of sustainable development

How are technology and innovation used in your company to improve sustainable business, especially in agriculture?

Digitization of agricultural production greatly contributes to the optimization of resource consumption - fuel, water, fertilizers and pesticides. It allows us to give plants and soil only what they need. In this way, the land is preserved for future generations. We also implemented an innovative fruit protection method, so in 2020, Delta Agrar was certified for its use of the Zero Residue process in apple production. Thanks to that, we officially became the first company in Serbia to grow apples without pesticide residue for three varieties - Gala, Red Delicious and Granny Smith.

How does your company manage its environmental impact, particularly in terms of greenhouse gas emissions, water use and waste management?

The environmental protection strategy is part of our ESG strategy, which is part of all of our business strategies. For years, we have been monitoring and measuring our impact and planning improvements accordingly. We have devised plans to get 60% of our energy from renewable sources by 2030. We currently use solar energy at 10 locations and in the next few months, we will install solar panels at another 15 locations. By switching to renewable energy sources, we will also reduce emissions of harmful gases. Also, we have plans to reduce

the amount of generated and market waste and packaging and fully utilize waste as a raw material in producing new products. For example, in our Seme Sombor and Dunavka factories, we use corn husks, sunflower husks and soybean straw as energy sources.

In which way do you cooperate with local suppliers and how does this affect your sustainable development strategy?

We primarily choose suppliers according to the quality of the product/ service, as well as the way they do business. This means that all suppliers must respect business ethics and workforce rights, and have a responsible attitude towards the environment. Throughout the year, we send suppliers detailed questionnaires through which we want to learn about their plans for fur-

What are your plans for the future related to the sustainable development of Delta Holding?

In addition to plans related to environmental protection and reducing the impact of climate change, we will continue to invest in employees and the community. In terms of employees, the most important thing for us is to continuously improve and develop the corporate culture, which creates a stimulating environment for the development of people, creativity and innovation. We have also created a unique Tangram Academy at which every employee attends an education programme, some of which are necessary for a specific job, while others are chosen by employees according to their own preferences and desire to develop in a specific area. We will continue to provide support to the community primarily through the Naše Selo (Our Village) and Digitalno Selo

ther improvement of all sustainability aspects. We are also dedicated to educating small producers, our subcontractors and suppliers about sustainable agriculture. Among other things, we teach them how to incorporate the GlobaGap standard into their business and thus make their product acceptable for export.

(Digital Village) projects. These projects aim to create opportunities for easier, more efficient and sustainable production, higher income for agricultural producers and a more attractive life in the countryside, especially for young people, through the modernization and digitization of agricultural production

DIGITIZATION OF AGRICULTURAL PRODUCTION GREATLY CONTRIBUTES TO THE OPTIMIZATION OF RESOURCE CONSUMPTION - FUEL, WATER, FERTILIZERS AND PESTICIDES

Chief Business Sustainability Officer, Delta Holding

COMMENT

by Dragan Nikolić

THE SECOND BATTLE

of Cer

In August, the Pocerina region commemorates the famous Battle of Cer, which took place at the very beginning of the Great War in 1914. It was the first victory for the weak Serbian army, tired of the recently ended Balkan wars, over the powerful Austro-Hungarian army.

mining corporations allied with the Serbian administration.

This article’s author, who himself is from these regions where the Second Battle of Cer is taking place, looks from his childhood home at the route on which the Second Serbian Army led by General Stepa Stepanović arrived at the site of the biggest battle under Cer. On that same road, new and different ‘rifle barrels’ could soon appear, with which the enemy will drill through the blood-soaked soil in order to get to the lithium. Wars always happen for the sake of conquest, and

THE SERBIAN GOVERNMENT DECLARED CER MOUNTAIN AN AREA OF EXCEPTIONAL NATURAL FEATURES

A lot of blood was spilled in fertile and colourful Pocerina. Almost all villages in this area have their own Hungarian cemeteries, which speaks of a large number of fallen enemy soldiers. The losses on the Serbian side were also huge, and the extent of the suffering of this region is also indicated by the fact that Šabac lost half of its population, which is why it was called the Serbian Verdun and was awarded three orders of merit - the French War Cross, the War Cross of Czechoslovakia and the Star of Karadjordje.

The Battle of Cer is still called the Battle of Jadar in historiography because it took place on the southeastern slopes of Cer in the Jadar river basin. Today, these very areas are fighting a new but equally dangerous battle which, like the original one, threatens to cut the local population in half again. It is a battle for a healthy environment, waged by equally heroic local people despite a much superior enemy, this time embodied in global

the goal of every conqueror is not just gaining territory but gaining the riches found there. And that is why today’s fight against lithium mining is also a war against conquerors and enslavers who are ready to sacrifice other people’s lives for their own benefit, just like it was a century ago.

The lives of all of us will be at risk if lithium mining is started, and Šabac could be divided in half again. The water-rich Podrinje and Mačva, which literally float on an underground thermal pool, will be exposed to pollution of such proportions that all large cities on the Drina and Sava rivers, upstream of the Jadar River, could be left without healthy drinking water.

After substantial activities were carried out in the Jadar Valley, where exploratory excavations had already begun, there was interest in a new exploratory area that would include villages in the area of the City of Šabac and the neighboring municipalities. Exploratory wells pose a threat to the 14th-century Kaona monastery, the 15th-century church of Krivaja, as well as the land that produces the sweetest strawberries and raspberries in the world and where top-quality grapes and gorgeous roses thrive. The public found out about these plans only when the local Šabac administration rejects the request from the mining exploration company. Shortly after the panic ensued due to the announced research, the Serbian government declared Cer Mountain an area of exceptional natural features.

After the initial enthusiasm about the government decision, people had a hunch that this was just pulling the wool over the eyes of people who care for a healthy environment and wheth-

er this would actually open the door to lithium research and mining in the areas of Pocerina and Jadar that are not bordered off by the protected area.

The fight for a healthy environment continues, perhaps even harder than before, because it is essential. We cannot know what will happen next and whether our actions will endanger the survival of our children. We won a very important first victory, just like the Serbian army during the Battle of Cer, but later we lost many others before finally winning the war.

If our ancestors, whose bones are buried in the land that covers the lithium deposits, had known that the Battle of Cer would be continued a century later, would they have started the battle with the same motive, or would they have said - why am I doing this when everything will be repeated in a similar way? We have to believe that our battle is final because one of many that will come would be. Only those of us who pick the right side will be perceived as heroes.

Only those of us who pick the right side will be perceived as heroes

© Dragan Nikolić