ZAGREB, 12 Nov (Hina) - Croatian companies have made significant progress in applying ESG (Environmental, Social and Governance) principles compared with last year, the American Chamber of Commerce in Croatia (AmCham) highlighted at its Business Sustainability with ESG Principles conference on Tuesday.

The AmCham Croatia & Kearney ESG Champion 2025 study, now in its third year, showed improvement across all measured areas, with the greatest progress in strategy development and environmental impact. Diversity, equity and inclusion practices still have room for improvement, though advances were also seen there.

Atlantic Grupa was again named the most successful company in implementing ESG standards. Končar and Arena Hospitality Group followed among around 60 participating companies.

The conference also discussed regulatory relief for businesses.

The European Commission's Omnibus package simplifies sustainability reporting, making comprehensive reporting mandatory only for companies with the greatest societal and environmental impact, while about 80% of European SMEs would report voluntarily.

Zrinka Ujević, head of the European Commission Representation in Croatia, stressed that reducing administrative burdens helps companies focus on innovation and employment, without abandoning green goals.

Aiming to reduce regulatory pressure by 25% for all companies (35% for SMEs), director of the Directorate for Economy and Financial System at the Ministry of Finance, Ana Zorić, said support will be provided for implementing sustainable business and financing models, and amendments to accounting and audit laws will ease sustainability reporting obligations.

AmCham executive director Andrea Doko Jelušić noted that ESG is already shaping regulation and business practices and will increasingly affect competitiveness and sustainability, while AmCham board chair Rina Musić emphasised that sustainability, transparency and responsible governance are foundations for long-term business success in Croatia.