An increasing number of Lithuanian companies are realizing that sustainability is no longer just a matter of reputation. It has become a tangible economic indicator that determines whether a business remains competitive in both domestic and export markets.
At this week’s “Sustainability Plan” conference, business leaders discussed how sustainability standards are shaping a new economic reality in which responsible operations have become a key condition for growth.
During the panel discussion “Why Is Sustainability Important When Entering New Markets?”, Remigijus Veikalas, Executive Director of AB Kauno Grūdai, emphasized that the company’s experience in export markets clearly reflects this trend:
“Sustainability remains the only path forward — and when you stay on that path, you discover economic, competitive, and efficient solutions. It’s no longer a trend or a one-off project – it’s the essence of our operations,” said R. Veikalas.
A Prerequisite in Export Markets
According to R. Veikalas, three years ago Kauno Grūdai clearly felt the shift — sustainability had evolved from a choice to an absolute necessity. This became particularly evident when working with global partners who have long operated under strict sustainability standards.
“Today, sustainability is part of every contract. We are required to submit sustainability reports, comply with EU directives, complete questionnaires, and demonstrate progress in reducing CO₂ emissions. Without these processes, working with international clients would be impossible. Sustainability requirements are no longer an addition – they are the starting point,” notes Veikalas.
He adds that the pressure from the Science Based Targets initiative (SBTi) to reduce emissions is increasingly strong, as achieving net-zero by 2050 becomes a shared EU business goal.
Scandinavian countries lead the way, where sustainability has already become part of corporate identity. Suppliers are required to hold certifications such as EcoVadis, Sedex, or GHG, and social responsibility and gender equality are evaluated as seriously as product quality. In the United Kingdom, the focus is on transparent procurement and energy efficiency, while in the United States, sustainability is more often associated with environmental labeling and product traceability.
Kauno Grūdai’s experience shows that compliance with sustainability standards has opened new collaboration opportunities with major European partners.
“Large retail chains and global brands are looking for suppliers who can prove their sustainability progress. Some of our competitors from Asia failed to meet these requirements — which gave us the opportunity to take over their contracts. Sustainability has truly become a driver of business growth,” says Veikalas.
He stresses that this is a process requiring consistent investment — not only in certifications and audits but also in data management systems.
“If you don’t have certifications – you don’t have clients,” he states, emphasizing that the benefits are undeniable: greater transparency, reliability, and access to large-scale contracts.
From Analysis to Tangible Results
Kauno Grūdai’s progress in sustainability is based on a systematic, measurable approach. The company has implemented the ISO 14001 environmental management standard and uses 100% electricity from renewable energy sources.
In new production facilities, heat recovery systems, heat pumps, solar panels, and electric vehicle charging stations have been installed. Solar power plants alone help avoid over 320 tons of CO₂ emissions per year, while 76% of all production waste is recycled or reused.
Moreover, over 70% of the company’s product packaging is made from renewable materials, reducing plastic use and contributing to the circular economy.
“Once you start measuring sustainability, it becomes manageable. Only by knowing how much energy you consume, how much waste you recycle, and what impact you make on the environment can you consciously move forward. We have already defined where we are — and we know exactly where we want to be,” says Veikalas.
The company also actively works on sustainability projects within the supply chain. This year, Kauno Grūdai launched a comprehensive digital supplier questionnaire covering four sustainability dimensions: governance, economy, environment, and social responsibility. This tool helps assess partner maturity and encourages smaller suppliers to follow the same path.
Sustainability also drives technological innovation. Kauno Grūdai has built new instant food production plants in Alytus and a breadcrumbs factory in Kėdainiai, both featuring energy-efficient solutions.
One of the most pressing challenges is packaging innovation. The company continues to explore solutions that can withstand high temperatures, preserve product quality, and remain recyclable.
“Our instant food packaging is already made from ultra-thin plastic with separate aluminum and cardboard layers — everything is sorted and recyclable. However, we are seeking even more advanced solutions to ensure the packaging remains recyclable after heating,” explains Veikalas.
Sustainability – Long-Term Value for Business and Society
At Kauno Grūdai, sustainability is understood as a continuous process of value creation – from sourcing local raw materials to promoting social responsibility and creating new jobs.
The opening of new production facilities alone has generated 250–300 new jobs, while modern technologies have reduced energy consumption and emissions.
“Sustainability is the new efficiency. The sooner we realize this, the more successfully we’ll operate — not just today, but for the next decade. For us, it’s a path we follow consistently — with respect for the environment, our partners, and consumers,” summarizes Veikalas.