KOMETA in Kaposvár is the first pork processor in Europe and the second in the world to receive green certification.
KOMETA 99 Zrt., the leading pork processor in Hungary, has issued a HUF 12 billion green bond under the Hungarian National Bank’s (MNB) Growth Bond Programme (NKP). The company’s first bond issue has attracted significant investor interest, not least because the Kaposvár-based company is the first in Europe and the second in the world to be certified green for its commitment to environmental responsibility. With the funds raised, the meat processing company intends to carry out infrastructure improvements, doubling its capacity and creating hundreds of new jobs. It aims to fully recycle operational waste within 3 years and reduce itsCO2 emissions by 30% within 5 years through energy efficiency improvements.
The 10-year green bond with a fixed interest rate of 5% per annum issued under the NKP attracted strong interest during the auction. For the HUF 12 billion amount offered, HUF 14.5 billion of bids were received from investors, of which KOMETA finally accepted HUF 12 billion at an average yield of 5.02 percent. The newly issued securities will be listed on the BSE Xbond, the secondary market platform of the Budapest Stock Exchange (BSE) linked to the NKP, which was established in July 2019, within 90 days of the issue. The transaction was supported by Erste Bank as investment service provider and KPMG as financial and legal advisor.
The issued corporate paper is qualified as a green bond (Light Green) according to the criteria of the Norwegian company Cicero Shades of Green, which has determined that the company can use the funds raised to support, among other things, environmentally sustainable food production and sustainable water and wastewater management. Giacomo Pedranzini, Managing Director of KOMETA, said that the HUF 12 billion of bond funds will be used to finance energy efficiency projects, mainly in infrastructure.
A way forward for all generations: high quality food with minimal environmental impact
The demand for food has increased, but it matters how food is produced, how much it pollutes the environment and what quality it is. We need food that is nutritionally sound and affordable for all,” says Giacomo Pedranzini, who believes that his HonestFood concept could be the solution to the food industry’s problems. The concept aims to find a middle ground between modern agriculture and organic farming by rethinking the existing food production chain. In addition to environmental issues, HonestFood also promotes good practices in animal welfare and responsible sourcing, among others.
30% CO2-reduction, zero production waste
Last year, KOMETA started a 5-year development programme with a capital increase of HUF 5.1 billion, aiming to double its capacity. At the same time, it will create hundreds of new jobs. It aims to achieve this by meeting two of its key sustainability objectives. The company currently emits 0.18 tonnes ofCO2 per tonne of meat processed. It aims to reduce this by 30% by 2025 by improving energy efficiency. KOMETA also aims to further minimise operational waste, seeking the necessary technological improvements over the next 3 years to become a company with zero production waste. Giacomo Pedranzini is proud to be the first meat processing and meat products company in Hungary to have a by-product plant. The plant, which will be inaugurated in 2020, was built with a self-financing of around 50% with the help of the Economic Development and Innovation Operational Programme, with a budget of around HUF 1.4 billion. The plant will be able to process 15 000 tonnes of waste per year, which is a huge step forward in waste management: in addition to its environmental benefits, it is expected to generate revenues of HUF 6-700 million. The plant currently produces around 2,300 tonnes of bone meal and 1,300 tonnes of animal fat/oil, which is used for animal feed, but can also be used by the chemical and pharmaceutical industries and as fuel for cogeneration engines that generate electricity.
Reduced consumption, water cycle
The company operates ISO 50001:2012 and 50001:2018 energy management systems. To improve energy efficiency, KOMETA has installed a closed-loop energy recovery heating and cooling system, which has reduced its annual gas consumption by 17%.Thanks to the boiler house built in 2020, energy consumption per kilogram of meat produced has been reduced by 25% and in one year, despite the fact that they slaughtered 10% more meat than the year before, their natural gas consumption has decreased by 10%. The company is also planning to install solar panels, which they estimate will cover 18% of their electricity needs by 2026. In 2015, a wastewater treatment plant was built, where more than 350,000m3 of water is treated annually and the clean water is discharged into the Kapos river.
The whole processing process under one roof
The entire processing (slaughtering, processing, maturing, packaging) takes place in Kaposvár, with the aim of ensuring that the pigs purchased are delivered as close as possible to the place of origin and shortening the supply chain, as this is the best way to maximise energy efficiency and minimise emissions from cooling and transport. It gives preference to suppliers within 200 km, and makes a point of transporting its products to the point of sale instead of intermediate warehouses to reduce its ecological footprint. KOMETA plans to purchase a new packaging machine that uses recyclable plastic.
Responsible sourcing, employee incentives
The partnership with employees and suppliers is mutual. Wages are constantly adjusted, even several times a year, and sport incentives have been introduced, unique in Hungary, with 300 forints a day for those who walk, run, cycle or ride a scooter to work. As part of responsible sourcing, a minimum purchase price was set last autumn when the purchase price of pigs fell to a critical low, because it is believed that reducing volatility is in the common interest of all stakeholders.
Product development for modern nutrition and quality
In its product development, special attention is paid to the promotion of modern nutrition: KOMETA’s products are free of added glutamate, soy, gluten, lactose and milk protein, depending on the type of product, and have a high meat content. Thanks to their salt reduction programme, the salt content of a significant proportion of their products has been reduced by 25% and new products are constantly being introduced. KOMETA has the right to use the High Quality Pork (KMS) trademark, a Hungarian standard that guarantees, among other things, that the animal was born in Hungary and raised exclusively on GMO-free cereals.
