MK Group presented the ESG Report for 2023 entitled “Vision of a Sustainable Future”, which shows the results achieved in the field of sustainable development. During the past year, strong progress has been made in achieving the “goals for the future”, which have been set as part of the company’s long-term ESG strategy.
“Taking account of ESG performance has become an integral part of our daily business operations, which we are very proud of.” Transparency and responsibility are the principles “revived” through our practice, and the foundations on which we build a relationship of trust. We are aware that the company’s success does not depend only on financial results, but also on our ability to positively influence the environment in which we live and work,” said Mihailo Janković, CEO of MK Group.
In the field of environmental protection, the company is continuously working on the implementation of various measures in order to achieve the set goal of reducing CO2 emissions of degree 1 and 2 by 25% by the end of 2026. Circular economy practices continued, as well as significant new investments in RES projects. Thus, at the end of 2023, the construction of the Krivača Wind Park was completed, an investment worth 165 million euros. This first wind park in Eastern Serbia will annually produce 310 GWh of green energy and affect the reduction of CO2 emissions by 120,000 t per year. Last year, wind parks and biogas plants in MK Group’s portfolio produced 23% more energy from RES compared to 2022. 2 million euros were invested in solar panels with a capacity of 3,252 KWp.
Responsible attitude towards natural resources is also reflected in reduced water consumption by 23%, but also in 10% less fertilizer used per hectare of land, as a result of the application of innovative technologies in the process of variable fertilization. Agricultural companies in the MK Group take care of animal welfare on pig farms and cow farms, through investments in the improvement of ambient conditions and mixing capacities.
Member companies of the MK Agri-food division predominantly purchase products and services from local suppliers, in a percentage ranging from 84% in the case of Carnex, and to 100% in the case of Sunoko, and they possess 42 international certificates related to production, and in 2023 did not record any case of non-compliance with regulations on food safety and quality.
When it comes to social impact, in the segment of improving living conditions in local communities where MK Group operates, the company has implemented a large number of philanthropic activities. In 2023, a total of 2.1 million euros was allocated for donations, in accordance with the focus areas of the CSR strategy. The regional project “Support to the family” is specially distinguished, within the framework of which 20 kindergartens in the Adria region received funds in the total amount of 680,000 euros for the renovation and furnishing of spaces where children stay.
MK Group incorporates employee care into all business processes and company policies and procedures. Over 8,600 hours of training were conducted last year, with close to 400,000 euros allocated for educational purposes. In the examination of employee satisfaction in the entire Group, an engagement index of 86 was recorded. Progress in terms of gender equality was achieved in equalizing the number of women and men in the Board of Directors of MK Group, while the goal is to increase the number of women in managerial positions to 50% by 2026 from the current 41%.
At the beginning of 2023, an ESG Board was formed, as well as an ESG team that includes employees from all MK Group member companies. This team is behind the process of implementing defined measures, transparent reporting and monitoring progress in achieving set goals within the key areas of the ESG strategy: achieving carbon neutrality, environmental protection, improving the working environment and living conditions in local communities, but also corporate governance and sustainability along of the entire value chain.
