This year, Deloitte Hungary has awarded the Green Frog Award, a domestic reward for excellence in corporate non-financial reporting, for the 20th time. After the autumn application period, an independent jury of 13 members evaluated the reports received based on a predetermined criteria and scoring system. In the end, the unanimous vote was given to two firms reporting for the first time in Hungary. The Best Sustainability Report Award was received by Lidl Hungary, while the special prize was awarded to Nanushka International Zrt.
“Lidl’s first-time report is especially well constructed, and covers a broad range of all operational areas and locations of the firm (stores, logistical centres, central office). The report was prepared based on the results of their 2019 materiality study and the Lidl Responsibility Model (LRM), in line with the guidelines of the GRI Standards. Its strategy is based on 5 pillars; it is specific and comprehensible. The measurements are straightforward, with base values, continuous evaluations, and specific completion deadlines. The rate of KPIs in compliance with the ISO and GRI standards is high, and its is presented in an easy-to-follow and transparent way. It also presents the company’s environmental and social impact, as well as their contribution to the Sustainable Development Goals (SDGs)” – Irén Márta, managing director of the Business Council for Sustainable Development in Hungary (BCSDH), chair of the Green Frog Award jury said about Lidl’s report.
“Nanushka also offered us an outstanding first report: their excellently worded report can be interpreted as a kind of creed, with clear goals for the future, while being transparent, informative, and straightforward about their commitment, not just on the level of the report, but in terms of making their operation sustainable” – Irén Márta said about the reason for awarding Nanushka with the special prize.
The goal is to make the entire supply chain sustainable
“Lidl Hungary applies sustainability for the whole supply chain, from the production of raw materials to the relationship with customers. We place special emphasis on the sustainable supply of raw materials, the support of Hungarian suppliers, the decrease of plastic use, and, being a responsible employer, continuous pay raises. We aim to expand our healthy, sustainable, and domestic product offering, and help underprivileged families. It is an honour for us that our first Report presenting our sustainability goals and results has received such a prestigious award” – said Judit Tőzsér, head of company communication at Lidl Hungary.
“With Nanushka’s international growth, it has become obvious to us that we must handle sustainability as a strategic priority, including transparency regarding our operation, our use of materials and our processes.” – Ágoston Gubicza, Nanushka board member, majority owner of GB & Partners explained. “Preparing our first sustainability report was a milestone for us; in the future, we are planning to publish it annually, to ensure our external and internal transparency and accountability. We are continuously increasing the proportion of certified sustainable materials in our collection, and our goal for 2025 is the procurement of certified materials from 100% sustainable sources. In addition to this, we continue our strategy of an ethical supply chain, reciprocity, and reduction of our carbon emission. Our goal is to decrease our carbon emission by 50% by 2030, and to achieve carbon neutrality by 2050.” – explained Péter Baldaszti, Nanushka board member, CEO of the Vanguards Group.
Reporting challenges of 2021
“Corporate reporting will undergo significant changes in 2021, as the European Commission’s review of the regulation of non-financial reporting is due to be closed, and a new, stricter regulation is due to be introduced in March 2021. The ESG Guide of the Budapest Stock Exchange may also be published after social discussions, which will have fundamental impact on the sustainability reporting of public companies, and it will later introduce the international standards that may bring quality improvement in domestic sustainability reporting. The COP26 international climate summit in Glasgow is also expected this year, for which, for example, the Science Based Targets Initiative is preparing with a new “Net-Zero” label: a quality standard by which companies all over he world will be able to set their carbon neutrality targets in line with scientific conclusions. Currently, the number of companies aiming for carbon neutrality in Hungary is very low, and also globally, very few choose science-based targets. These trends have already been visible in Hungarian reports this year, as well, but they will be more obvious in reports of this year prepared next year. Reporting standards will undergo a harmonisation process, which will have a positive impact on corporate reporting and, we hope, will simplify but also strengthen navigation among the currently effective countless standards and professional aspects, as well” – said Ákos Lukács, head of Deloitte’s Sustainability and Climate Change business line.
This year’s winning sustainability reports are available at the following website.