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Leading the pack
Integrated management system reaps environmental and economic savings

By Jozsef Szlezak

 
  PAPER VIEW: Chairs made of recycled paper provided the seating at this festival.

Photo: DUNAPACK
Many companies in Central and Eastern Europe must overcome legacies of the Socialist era, including obsolete manufacturing technologies and equipment, and an outdated approach to management. Budapest-based Dunapack Ltd., a manu-facturer of paper packaging products, serves as a good example of a long-established company that has adapted and thrived in the deeply changed economic, social and regulatory environment.

It was not long ago that the company’s pollution far exceeded regulatory limits, and its resource efficiency lagged well behind industry standards. In the early 1990s an Austrian investment group acquired a controlling share in the company, but kept the operational management in place — a decision that has since been vindicated. Over time this management reorganised the company and developed it into a market leader in Hungary, with subsidiaries in Romania, Bulgaria, Ukraine, Poland, and Croatia. Even more, the company is now sharing managerial know-how with peers in the west.

These remarkable results are a credit to Dunapack’s adoption of the integrated management system (IMS), a scheme that addresses issues of quality, environmental performance and occupational safety and health and is certified according to the international standards ISO 9001:2000 and ISO 14001. The company is also registered with the Eco-Management and Audit Scheme (EMAS) and has adopted the OHS 18001 standard. The systems were introduced gradually beginning in the mid-1990s. The motivation was — especially in the case of the environmental management system (EMS) — a recognition that a manufacturer of paper products must make environmental performance a top priority.

Dunapack was among the very first to introduce environmental and quality management systems in Hungary. Today, the different components of the IMS reinforce each other, creating a synergistic effect and producing several economic and environmental benefits on a continuous basis. Dunapack’s improvements in the area of environmental protection can be grouped into three main areas: product development, resource usage, and pollution abatement. For instance, since one of the main aspects of product development is to attain full reusability, containers made solely of paper are favoured over difficult-to-process ones made of multiple materials. In some cases paper-only packages have replaced ones that previously contained no paper at all.

Other types of innovation streams have included the reduction of certain products’ specific weights as well as increasing the amount of recycled materials with which the company makes its packages. Already, 98 percent of the firm’s raw material is recycled. These innovations have improved Dunapack’s competitiveness and have garnered several international awards.

The operating EMS has also reduced the company’s product-specific heat demand by approximately 15 percent and has cut overall fresh water demand in half. Emissions into the air of most pollutants are far below regulatory limits and the chemical oxygen demand (COD) of discharged water has been halved.

The economic benefits attributable to the IMS, including its environmentally driven measures, can be assessed in savings of money and less tangible benefits. Financial benefits come from the savings of energy, water, and raw materials, while intangible benefits comprise better organisational operation, improved organisational culture, and better understanding of technological problems and solutions.

This success story was compiled by the REC Business and Environment Programme in support of the Dutch EU Presidency begun in July.